The Consumer

One that consumes, especially one that acquires goods

or services for direct use or ownership rather than for

resale or use in production and manufacturing

Definition of Consumer Behavior
 Consumer Behavior is the behavior of individuals or
groups acquiring, using, and disposing of products,
services, ideas, or experiences

 Consumer behavior also includes the acquisition and use

of information

 Acts of individuals directly involved in obtaining and using

economic goods and services, including the decision
processes that precede and determine, and follow these
acts.
Types of Consumers
Personal Consumer
Is the individual who buys goods for his or her own
use
Household Consumer
Is the individual or group of individuals that buy goods
for the household or family unit
Organisational Consumer
Includes private businesses, government departments
and agencies, and institutions
 Seven Keys to Consumer/Customer
Behavior
KEY I Consumer/Customer behavior is motivated
KEY II Consumer/customer behavior includes many activities
KEY III Consumer/customer behavior is a process
KEY IV Consumer/customer behavior varies in timing and
complexity
KEY V Consumer/customer behavior involves different roles
KEY VI Consumer/customer behavior is influenced by external
factors
KEY VII Consumer/customer behavior differs for different people
Factors influencing Behavior
The Decision making process
Types of Buying Behaviour
HIGH LOW
INVOLVEMENT INVOLVEMENT
SIGNIFICANT Variety-
Complex
DIFFERENCES Seeking
Buying
AMONG Buying
Behavior
BRANDS Behavior
FEW Dissonance- Habitual
DIFFERENCES Reducing Buying
AMONG Buying
BRANDS Behavior
Behavior
CONSUMER/Customer BUYING ROLES
 Initiator: The person who first suggests or thinks of
the idea of buying a particular product.

 Influencer: A person whose views or advice

influences the buying decision.

 Decider: The person who ultimately makes a buying

decision or any part of it - to buy, how to buy, or
where to buy.

 Buyer: The person who makes an actual purchase.

 User: The person who consumes or uses a product.

Loyalty Status
A: Hard-core Loyal:
 Consumers who buy one brand all the time. Thus a
buying patterns of A, A, A, A, A, A might represent a
consumer with undivided loyalty to brand A.

B: Split Loyal:
 Consumers who are loyal to two or three brands. The
buying pattern A, A, B, A, B, A, B represents a
consumer with a divided loyalty between A and B.

 This group of people is rapidly increasing. More people

now buy from a small set of acceptable brands that are
equivalent in their minds.
 Loyalty Status
C: Shifting Loyal / Other Brand Loyal (OBL):
 Consumers who shift from favoring one brand to
another. The buying pattern A, A, A, B, B, B would
suggest a consumer who has shifted brand loyalty from
A to B.

D: Switchers:
 Consumers who show no loyalty to any brand. The
buying pattern A, C, E, B, D, B would suggest a non-
loyal consumer who is either deal prone (buys the
brand on sale) or variety prone (wants something
different each time).
Perceived Risk

Is the level of uncertainty a consumer believes exists

with regard to the outcome of a purchase decision;
this belief may, or not, be correct.
Types of Perceived Risk
Functional: risk that a product will not perform
adequately.
Physical: risk that a product will be harmful.
Economic: risk that a product will not be worth
its cost.
Social: risk that a product will cause embarrassment.

Psychological: risk that one’s ego will be bruised.

Time: risk that the time spent purchasing will be wasted if

the product does not perform as expected before others.
Marketing Mix
4 Ps
Conclusion