Determinants of Consumer Behaviour With DiagramThe determinants of consumer behaviour can be grouped into three major captions namely, economic, psychological and sociological. An attempt is made to elucidate these with least complications. I. Economic Determinants Economic scientists were the first among social scientists to study consumers and their behaviour and provided the details about the solutions to the consumer and consumption problems. Economists, as we are aware, took man as a social and rational animal. The basic economic determinants among others are 1. Personal income Ones income is the reward for ones economic efforts. Income means purchasing power. When we talk of income in marketing sense, we are more concerned with disposable income and discretionary income. Disposable income is the amount of money that a consumer has at his disposal for spending or saving or both. In other words, of the total gross income, whatever balance remains after meeting preemptive demands like taxes, debt repayment and debt servicing charges and the like. How Buyer Behaviour Affects Marketing Activities' title='How Buyer Behaviour Affects Marketing Activities' />Any change in disposable income will have change in consumer buying decisions. Decline in disposable income reduces the consumer spending however, when disposable income rises, consumer spending not only rises but makes them to go in for more of luxuries. Job interviews tips and techniques, sample interview questions and answers, sample interviews letters and templates. Job interviews are easier for interviewers and. In other words, disposable income causes change in the relative demand for different categories of products and services. On the other hand, discretionary income is the income which is available after meeting the basic needs of living. It is the residual disposable income left after meeting all the expenses essential to provide a minimum subsistence needs to a family. Discretionary income changes have their own implications. A rise in discretionary income results in usually an increased spending by consumers on those items that raise their living standards. Therefore, a continuous rise in the discretionary income is likely to change the very life style of the consumers. Family income Where a consumer is the member of a joint family, the buyer behaviour is influenced by the family income rather than the individual income. It does not mean that one can ignore the individual income, for family income is the aggregate of individual income of all the members of the family. In a joint family, it may so happen that a rise in an individual members income may be neutralised by a fall in another members income. That is why it is the relationship between the family size or the requirements and the income that finally determines the buying behaviour or the family members. Consumer income expectations Many a times, it is the future income expectations of the consumer that influences such consumer behaviour. It is the optimism or the pessimism about consumer income that determines the level of current spending. Marketing is a buzz word which describes both a management strategy focusing on customer satisfaction, and a series. If there are bleak prospects of future expected income, he spends less now and saves more and vice versa. It is worth the noting here that the force and vitality of a tendency to spend or save depends on the nature of consumer needs. In case of basic needs of living, such tendency will be too weak for no consumer denies the minimum subsistence level merely because to bleak future income expectations. However, in case of non essential goods, such tendency may be very strong to save than to spend if he is expecting weak future income generation and vice versa. Consumer liquid assets It is the consumer liquid asset position that influences the consumer behaviour. Liquid assets of consumers are the assets held in the money or near money forms of investments. The best examples of this kind are hard cash, bank balance, bank deposits, shares and bonds and saving certificates. These assets are built up to buy some consumer durables or to meet unexpected future needs or contingencies. If a person has more such liquid assets, more carefree he comes in spending the current or the regular income. Consumer credit Availability or paucity of consumer credit has its impact on consumer buying behaviour. Consumer credit is a facility extended by a market to postpone the payment of products bought to some future date. Consumer credit takes number of shapes like deferred payment, instalment purchasing, hire purchase arrangements and the like. In this report we are trying to investigate and analyse the Marketing activities of NESTLE. Title Length Color Rating The Process of Negotiation Introduction First of all Negotiation is in a simple way is the process by which we obtain what we want from. ADVERTISEMENTS The determinants of consumer behaviour can be grouped into three major captions namely, economic, psychological and sociological. An attempt is made. Easy availability of consumer credit makes the consumer to go in for those consumer durables which he would have postponed otherwise. Further, it makes him to spend more freely the current income. How Buyer Behaviour Affects Marketing Activities In EmergingThe level of standard of living The consumer behaviour has the impact of the established standard of living to which he is accustomed. Even if consumer income goes down, the consumer spending will not come down proportionately because, it is very difficult to come down from an established standard of living. On the other hand, rise in income tends to improve upon the established standard of living. 2006 Civic Si Header Installed. In case the income falls, the short fall is made good by borrowings to a certain extend over a short period of time. II. Psychological Determinants Psychologists have also provided certain clues as to why a consumer behaves this way or that way. The major psychological determinants internal to the individual are motivation perception learning, attitude and personality. Here is an attempt to explain and to know their implications in so far as consumer behaviour is concerned. Motivation Motivation is the why of behaviour. It is an intervening variable between stimulus and response and a governing force of consumer behaviour. Motivation refers to the drives, urges, wishes or desires which initiate the sequence of events known as behaviour. Professor M. C. Burk. Motivation is an active, strong driving force that exists to reduce a state of tension and to protect, satisfy and enhance the individual and his self concept. It is one that leads the individual to act in a particular way. It is the complex net work of psychological and physiological mechanisms. Therefore, motives can be conscious or unconscious, rational or emotional, positive or negative. These motives range from a mere biological desires like hunger and thirst to the most advanced scientific pursuits like landing on the Moon or Mars. It was Abraham Maslow who developed five steps human need hierarchy those of survival Safety Belongingness and Love Easteem and Self Actualisation. According to him, fulfillment of one will lead to the fulfillment of higher motives. The implications are that as we move up in the ladder, the input of marketing becomes more and more deep and subtle. Perception Marketing management is concerned with the understanding of the process of perception because, perception leads to thought and thought leads to action. Perception is the process whereby stimuli are received and interpreted by the individual and translated into a response. In other words, perception is the process by which the mind receives, organises and interprets physical stimuli. To perceive is to see, hear, touch, taste, smell and sense internally something or some event or some relation. Perception is selective because, and individual cannot possibly perceive all stimulus objects within his perceptional field hence, he perceives selectively. Perception is organized because, perceptions have meaning for the individual and they do not represent a buzzing confusion. Perception depends upon stimulus factors. That is, the nature of physical stimulus itself is a determinant of perception.