PROJECT # 1008

Customers today are more informed and more demanding than ever. They know quality service when they get it and they aren’t afraid of taking their business elsewhere if they don’t get it. Most manufacturers have taken this fact to heart because a refusal to acknowledge this reality can spell – failure – rejection by the one who holds the purse strings and the key to profits. Satisfaction of customer needs, in fact, provides a rationale for the firm’s existence. Therefore consumer behavior lies at the heart of modern marketing and its knowledge is vital for a firm’s existence, growth and success. An understanding of the motives underlying the consumer behavior helps a firm to seek better and more effective ways to satisfy consumers. Consumer behavior, however, is a complex system where there is an interaction of various social, economic and psychological factors. All these factors affect the purchase decision of the buyer and his perception about different products. Buying decision process incorporates all the activities that individuals go through in their role as consumers. It starts right from the time when there is a state of deprivation (need arousal) and goes through a point when a means of need satisfaction has been obtained. It ends at a juncture when the product has been used for a sufficiently long period of time to judge the level of satisfaction (post – purchase evaluation). Satisfaction is the key to generate repeat business. It ensures customer loyalty and determines whether a customer would come to the company again.