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In a widely populous country like India, the power of consumers may transform them from receivers of products and services to choosers of these things and services, realizing the goals of our founding fathers for India. Mahatma Gandhi, for example. Swami Vivekananda also thought that the "Customer is the king." Since they are economically self-sufficient, industrialized countries have successfully constructed institutions and political systems that make the consumer king.
Nevertheless, this is not being implemented in developing nations due to various causes, the most prominent of which is unhealthy rivalry among producers and sellers. On the other hand, consumers in industrialized nations have highly developed decision-making abilities well supported by market circumstances, excellent ads, and higher consumer educational levels.
Meaning of Consumer Dynamics
Dynamics derives from a Greek word meaning power. Hence, consumer dynamics studies dynamics influencing customer reactions or responses to their economic, social, and cultural environments. The social process through which individuals interact face-to-face in small groups is known as group dynamics, and it is concerned with the study of the forces at work inside a group.
Individual behavior is deeply embedded in the groups to which one belongs, even when the features of groups differ significantly from those of those who comprise that group. Changes in social factors, therefore, induce changes in people's behavior.
Nevertheless, a group's ability to influence change in its members is determined by the intensity of their commitment to the group. However, their influence grows when high-status or well-known people join or become associated with the group. Changes within a group are tolerated if they do not jeopardize the group's cohesiveness; otherwise, the change is opposed. Consumer dynamics is the incentive that drives customers to work together to create an effective and achieve their goals.
Role of Advertisement
Advertising is derived from the Latin "ad vertere," which means to direct one's thoughts. Advertising is commonly considered a process that pushes customers to take a sequence of acts that may eventually result in a sale. Advertising's role is to −
The contemporary period is regarded as an 'age of ads.' We are exposed to commercials in some form or another in every aspect of our lives. Advertisements have a significant influence on our purchasing decisions. It has affected the purchasing habits of both urban and rural people. Without question, commercials have played an essential part in teaching customers and influencing their behavior. Marketing that accurately depicts the goods and their features benefits the consumers.
Throughout the 1980s, the advertising sector has been significantly expanding. It fosters reciprocal advantages since it is a mutually beneficial interaction between the producers/manufacturers/sellers of goods who launch ads and the customers. Manufacturers and dealers of goods begin advertisements to increase the sales of their items. These commercials are frequently printed and transmitted in the media.
The goal is that via frequent reminders, a consumer will remember the product and purchase it. Another critical point to notice here is that advertisers understand that a human being consumes far more data than he is aware of and that this data also plays a vital role in his decision-making process.
Every advertising is designed to have a profound psychological impact. Advertisers want to generate a demand impression for their products and increase sales. This is achieved by developing intriguing and appealing advertising that anyone readily comprehends. This gives the product a positive image. Advertisements can also help customers in some ways. Consumers, for example, are exposed to the many brands of items offered. They may then evaluate the possibilities and choose the best suits their needs.
Changes in Perspectives
Customers' viewpoints shift depending on the type and quality of stimuli to which they are exposed regularly. Sensory inputs alone do not determine how we perceive our surroundings. Our sensations form a complex that puts everything into the correct perspective. People tend to overlook what they see or hear when they are overstimulated.
Hence, perception is a mix of physical stimuli from the environment and an individual's mental predispositions, such as expectations, desires, and knowledge, based on prior experiences. People react to stimuli differently based on the nature of the product, its physical qualities, packaging design, brand name, advertisements, the timing of the commercial, and how it is edited.
Individuals generally see what they want to see, which is usually something familiar or relevant to them. For example, hungry people are more likely to see restaurant signboards. Marketers, as a result, tailor their goods to consumers' perceived demands. Changes in consumer perceptions occur when a customer's self-image changes, resulting in a repositioning of a product or service image that is adjusted to reflect their image in society.
As a result of such changes, customers purchase items from establishments frequented by people who resemble their self-image. Customer views of items are influenced by both intrinsic and external aspects such as price, quality, brand, and the sort of store where it is sold.
Changes in Expectations
A consumer's expectations are formed on information obtained through word of mouth from friends, neighbors, coworkers, shopping, and others. Furthermore, the numerous mediums through which items are marketed, such as newspapers, magazines, hoardings, banners, neon signs, posters, radio, and TV ads, impact customers differently, changing their expectations. "Brand Preference" is a prevalent purchasing behavior among customers. Customers prefer to stick with the same brand for many years if their experiences with the items satisfy their expectations.
A consumer's expectations are formed on information obtained through word of mouth from friends, neighbors, coworkers, shopping, and others. Furthermore, the numerous mediums through which items are marketed, such as newspapers, magazines, hoardings, banners, neon signs, posters, radio, and TV ads, impact customers differently, changing their expectations. "Brand Preference" is a prevalent purchasing behavior among customers.
Customers prefer to stick with the same brand for many years if their experiences with the items satisfy their expectations. When new items are offered under the same brand name, people anticipate the same quality standards that they are accustomed to and are frequently eager to test the product. According to studies, brand image is constructed on the customer's thoughts and impressions about a brand. He typically purchases brands that reflect his self-image.
During the last few decades, Indian consumers' purchasing habits have shifted dramatically. For example, people are now more likely to purchase packaged goods. Environmental changes caused by industrialization, urbanization, migration, career transformations, and lifestyle modernization have modified consumers' expectations of market products and services.
According to a 1995 poll performed in Bangalore, women have outgrown their traditional food preparation routines. They are rapidly transitioning to ready-to-use meals like sambhar powders, idli, dosa mixes, and so on to relieve the hardship of long working hours in kitchens.
Interaction between the Consumer, State, Business Community, and the Market
The customer increasingly interacts with the state in a structured manner through consumer organizations established in each state. Not only that, but consumers are also seeking volunteer assistance from experienced individuals or opinion leaders to help them sort out their complaints about product disappointments and seller exploitation. The government is also doing its part by enacting rules that are modified regularly, allowing consumers to reclaim their market rights. The significant law adopted in India was the Consumer Protection Act 1986, which established Consumer Protection Councils and Redressal Forums in all states.
In addition, enforcing other regulations controlling food quality has been reinforced. The Bureau of Indian Standards (BIS) issues certification marks to manufacturers who satisfy its standards' criteria. Not only is the product standardized, but so are the procedures. BIS certification covers over 100 products, including food, electrical and electronic goods, detergents, handlooms, home devices, stationery, carpets, and shoe polish.
The government has created legal and administrative methods to consumers' advantage, but customers should educate themselves on standard product markings and only purchase items of verified quality.
Consumer dynamics are the forces that influence consumers' reactions or responses to their economic, social, and cultural environments. Marketers utilize advertising extensively to catch consumers' attention, build desire, and induce purchase. Because humans are "hardwired" to perceive things, a customer will typically see in the surroundings what he or she wants to see.
Consumers' perceptual changes with the type and nature of stimuli they are periodically exposed to. When a consumer's self-image and social position alter, their perception of the world changes.
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