Consumer buying decision process

The marketer must understand how consumers make their buying decisions. In some cases it is very difficult to find out who the buyer is and who the user is. There are different roles played by the consumer. So to understand properly consumer buying decision process it is necessary to understand the different roles played by them. They are:

i) INITIATOR:  initiator is the person who brings the idea to buy a product for eg. Son brings the idea to buy a computer.

ii)INFLUENCER: influencer is the person with whom influence person wish tobuy anyproduct. For eg, Son’s friend influences him to buy a computer.

iii)GATEKEEPER: it is the person inside the house who informs that there is no budget to buy it. For example, in this case father says there is no budget to buy the cycle.

iv) DECIDER: it is the person who decides to buy the product like mother decides to buy the computer for her son.

v) BUYER:  now the family member go to the market and buy the product. Like in this case mother and father go to the shop to buy a computer.

vi) USER:  at the end the family uses the computer.

Therefore all these are the different roles played by the consumer in buying decision process.

 

Theories of capital structure

I have already discussed the meaning of capital structure. Today I will discuss the different theories of capital structure.

1.)    Net income approach: this theory is given by Durand. As per the theory the value of firm can be increased and its cost of capital can be reduced by increasing proportion of debt in its capital structure. The approach is based upon following assumptions:- Continue reading “Theories of capital structure”

Consumer behavior in marketing

Consumer is now a day treated as “KING” and it is very difficult to understand consumer behavior as consumer behavior is complex. Consumers are rational they think before buying. Therefore the marketer must understand the consumer behavior before starting the marketing strategy. He must study the likes and dislikes of the consumer. All consumers are different in their cultural background, income, life style, personality, beliefs and attitudes etc. But one thing is common as all of them are “consumer”. So the marketing manager must know the answer of following questions. Like:

 What customers like to buy?

When they buy?

How they buy?

Why they buy?

From where they buy?

What is Financial management

I will discuss the various concepts related to financial management. But first thing we need to understand the definition of financial management. Finance is like the blood for the business as blood is essential for the human body; similarly finance is essential for the business. No business can run without adequate finance. That’s why it is very essential to manage the finances of the business. Financial management means to plan and control the financial resources of the firm. Continue reading “What is Financial management”