An Introduction Consumer Behavior

Dr. S K Singh

Buyer Behavior
Buyer behavior focuses primarily on buyers and
buying.
But, often you buy for others (significant others,
spouses, friends, children)
To buy, you have to engage in activities other than
buying e.g., searching, learning to search, using,
knowing how to use, and disposing.
so buyer behavior cannot be the whole story

Consumption and Consumer Behavior

Consumption
Activities, thoughts and feelings (of individuals and
groups) directed toward achieving satisfaction (often
using market offerings).

Consumers
Those who engage in consumption activities

Consumer Behavior (Brief definition)

How consumers go about achieving satisfaction.

What Does it Mean to Study Consumer

Behavior?
It is a study of the feelings, thoughts, and behaviors of
consumers.
Specifically, from a managerial point of view, it is a study
of how people respond to marketing entities such as
products, advertisements, promotion, price etc.
This study is aimed at increasing the likelihood and
frequency of the marketing exchange.

What is Marketing Exchange?

Marketing is an exchange process between the consumer
and the producer benefits are exchanged for profits; more
concretely, goods and services exchanged for money.
Goods & Services

Marketer

Consumer

Money

Marketing strategies are activities geared toward

increasing the probability and frequency of the exchanges
so that the exchange is profitable and satisfying.

Why should Consumer Behavior be

Studied
Suppose, your product is not selling well. Should you
decrease the price, increase advertising, offer consumer
promotions?
If you dont know how consumers respond to these
marketing actions, how can you make the decision?
Hence, for marketing strategies to be successful,
understanding consumer behavior is absolutely
important.

Returning to Consumer Behavior

What do we study?
Primarily, three aspects
Affect/Cognition:
Feelings (I love the restaurant)
Thoughts (Rs 150/- for a bowl of soup? Why is it so
expensive?)

Behavior:
Action (Going to the restaurant)

Environment:
Context (The lighting / ambiance in the restaurant)

In other words, we will be examining consumers

affective/cognitive and behavioral responses in the
environmental context.

Groups Interested in
Consumer Behavior
Marketing
organizations

Marketing
strategies

Public
Policy

Consumer
activities
Consumers

Government
and political
organizations

Approaches to the Study of Consumer

Behavior
Approach

Interpretive

Core
Disciplines

Cultural anthropology

Primary
Objectives

Understand consumption and its

meaning

Primary
Methods

Long interviews & focus groups

Approaches to the Study of Consumer

Behavior (contd)
Approach

Traditional

Core
Disciplines

Psychology & Sociology

Primary
Objectives

Explain consumer decision

making and behavior

Primary
Methods

Experiments & Surveys

Approaches to the Study of Consumer

Behavior (contd)
Approach

Marketing Science

Core
Disciplines

Economics & Statistics

Primary
Objectives

Predict consumer choice and

behavior

Primary
Methods

Math-modeling & Simulation