Consumer Behavior

Consumer Behavior is the study of how individuals, groups and organizations select, buy
and dispose of goods, services, ideas or experiences to satisfy their needs and wants

Consumer Buying Behavior refers to the buying behavior of final consumers (individuals
& households) who buy goods and services for personal consumption.

CB has two basic parts

Cognition (Thinking)

Action (Purchase)

Factors Affecting Consumer Behavior

Psychographic
Activities
Interests
Opinions
Attitude and life styles

the patterns in which people live and spend time and money.

Beliefs and feelings

Nature of Consumer Behavior

1. Influenced by various factors
2. Undergoes a constant change
3. Varies from consumer to consumer
4. Varies from region to region and country to country
5. Information on consumer behavior is important to the marketers
6. Leads to purchase decision
7. Varies from product to product
8. Improves standard of living

DIFFERENT MODELS OF CONSUMER BEHAVIOUR

1. Economic Model

The economic model of consumer behavior focuses on the idea that a consumers buying
pattern is based on the idea of getting the most benefits while minimizing costs. Thus, one can
predict consumer behavior based on economic indicators such as the consumers purchasing
power and the price of competitive products. For instance, a consumer will buy a similar product
that is being offered at a lower price to maximize the benefits; an increase in a consumers
purchasing power will allow him to increase the quantity of the products he is purchasing.

Learning Model

This model is based on the idea that consumer behavior is governed by the need to satisfy
basic and learned needs. Basic needs include food, clothing and shelter, while learned needs
include fear and guilt. Thus, a consumer will have a tendency to buy things that will satisfy their
needs and provide satisfaction. A hungry customer may pass up on buying a nice piece of jewelry
to buy some food, but will later go back to purchase the jewelry once her hunger is satisfied.

Psychoanalytical Model

The psychoanalytical model takes into consideration the fact that consumer behavior is
influenced by both the conscious and the subconscious mind. The three levels of consciousness
discussed by Sigmund Freud (id, ego and superego) all work to influence ones buying decisions
and behaviors. A hidden symbol in a companys name or logo may have an effect on a persons

subconscious mind and may influence him to buy that product instead of a similar product from
another company.

Sociological Model

The sociological model primarily considers the idea that a consumers buying pattern is
based on his role and influence in the society. A consumer's behavior may also be influenced by
the people she associates with and the culture that her society exhibits. For instance, a manager
and an employee may have different buying behaviors given their respective roles in the
company they work for, but if they live in the same community or attend the same church, they
may buy products from the same company or brand.

Howard sheth model

NICOSIA MODEL

ENGEL, BLACKWELL AND MINARD MODEL

 Information input
Information processing
Decision process stage
Variables influencing decision making process

Webster and wind

 partitiones the buying process into several processes

processes of decision-making are determined by environmental and
organizational factors.
Final buying process rendered as the mixture of individual and group
decision

COGNITIVE DESONANCE
Cognitive dissonance refers to a situation involving conflicting attitudes, beliefs or
behaviors.
This produces a feeling of discomfort leading to an alteration in one of the attitudes,
beliefs or behaviors to reduce the discomfort and restore balance etc.
For example, when people smoke (behavior) and they know that smoking causes cancer
(cognition).
Example 1: Knowing that smoking is harmful (First cognition) while liking to smoke
(second cognition). The Cognitive dissonance theory's conditions were met because those
cognitions are dissonant
Example 2: Believing that lying is bad (First cognition) and being forced to lie (second
cognition)

 Example 3: Liking a friend (first cognition) while knowing that he hates your brother
(second cognition)
How to Reduce Cognitive Dissonance
There are three key strategies to reduce or minimize cognitive dissonance:
Focus on more supportive beliefs that outweigh the dissonant belief or behavior
Reduce the importance of the conflicting belief
Change the conflicting belief so that it is consistent with other beliefs or behaviors
Why is Cognitive Dissonance Important?
Cognitive dissonance plays a role in many value judgments, decisions and evaluations.
Becoming aware of how conflicting beliefs impact the decision-making process is a great
way to improve your ability to make faster and more accurate choices.
RELATION BETWEEN ATTITUDE AND BEHAVIOR
People hold complex relationships between attitudes and behavior that are further
complicated by the social factors influencing both. Behaviors usually, but not always, reflect
established beliefs and attitudes. For example, a man who believes strongly in abstinence
before marriage may choose to remain a virgin until his wedding night. Under other
circumstances, that same man may engage in premarital sex despite his convictions after
being influenced by social messages that his masculinity is dependent on sexual activity.
a. Changing attitudes to change behavior
b. Changing behavior to influence attitudes

Attitude formation
Three different paths to attitude formation:
a. Attitudes are created by first creating beliefs.
i. Consumer beliefs are the knowledge that a consumer has about objects,
their attributes, and the benefits provided by the objects.
ii. Consumer beliefs are created by processing information--cognitive
learning.

b. Attitudes are created directly.

i. Behavioral learning
ii. Mere exposure
c. Attitudes are created by first creating behaviors.
i. Consumers respond to strong situational or environmental forces, and after
engaging in the behavior, form attitudes about the experience.
ADVANTAGES OF STUDYING CONSUMER BEHAVIOUR
a. Modern Philosophy
It concerns with modern marketing philosophy - identify consumers'
needs and satisfy them j more effectively than competitors. It makes
marketing consumer-oriented. It is the key to succeed.
b.
c.
d.
e.
f.
g.
h.
i.

Useful for Dealers and Salesmen

More Relevant Marketing Programme
Adjusting Marketing Programme Over Time
Predicting Market Trend
Consumer Differentiation
Creation and Retention of Consumers
Competition
Developing New Products