CONSUMER

BEHAVIOR
 Consumer Buying Behavior

• Consumer Buying Behavior refers to the

buying behavior of final consumers
(individuals & households) who buy goods
and services for personal consumption.
• Study consumer behavior to answer:
“How do consumers respond to marketing
efforts the company might use?”
 Model of Consumer Behavior
Product Marketing
Marketing and
and Economic
Other
Other Stimuli
Stimuli
Price Technological
Place Political
Promotion Cultural

Buyer’s Characteristics
Decision Affecting
Buyer’s
Buyer’s Black
Black Box
Box Consumer
Process
Behavior

Product Choice Purchase

Buyer’s
Buyer’s Response
Response Timing
Brand Choice
Purchase
Dealer Choice Amount
 Factors influencing consumer
behavior

• Culture
• Social
• Personal Factor
 Culture

• Culture-fundamental determinant of persons wants and

behaviors. Child-set value ,perceptions ,preferences
,behavior.
• Subculture-Nationalities,religion,ratial groups
geographic region.
• Social Class-dress, speech pattern, recreational
preferences.positions.occupations,income,wealth
Upper Class-Magazine and books.
Lower class-TV.
 Social factor
• Reference Groups-direct or indirect influence.
• Membership Groups-Direct Influence.
• Primary Group-family, friends,neighbours,coworkers.
• Secondary Group-Religious, professional and trade
union.
• Aspiration Groups.
• Dissociate Groups.
• Opinion Leader.
• Roles and Statuses.
 Personal Factor
• Age –people buy different goods and services over lifetime.
stages in lifecycle.
• Occupation and economic circumstances.
• Personality and self concepts.
*Sincerity-down to earth,honest,cheerful.
*Excitement.-daring,spirited,up to date.e.g.MTV
*Competence –reliable ,intilligent,successful.
*Sophistication-upper class and charming.
*Ruggedness.e.g.Levis.
• Lifestyle and Values:-
*Money constrained-Wal-Mart and Subhiksha.
*Time constrained-doing two things at a time.
 Four psychological process affect
consumer behavior.
1.Motivation
Biogenic-Hunger ,thirst, discomforts.
Psychogenic-recognition,esteem,belonging.
• Sigmund Freud, Maslow's Theory.Herzberg’Theory.
• Maslow’ Theory-1.physiological need,2.safty need,3.social
needs,4.Esteem needs.5.self actualization need.
2.Perception-is the process by which an individual
selects,organizes,and interprets information inputs to create a
meaningful picture of the world. selective attention, selective
distortion, selective retention.
3.Learning.-when people act, they learn.drives,cues,responces
and reinforcement.
4.Beliefs and attitude
 The buying decision process.
1. Problem Recognition.

2. Information Search.

3. Evaluation of alternatives.

4. Purchase Decision.

5. Post Purchase behavior.

 Involvement and Types Of decision Making

Low –Purchase Involvement High –

Purchase Involvement

Nominal Decis ion Making Limited Extended decision Making

Problem Recognition Problem Recognition Problem Recognition

Infomration Search Infomration Search Information search

(Internal) (Internal and limited external) (Internal and external)

Alternative Evaluation Alternative evaluation

(few attributes) (many attributes)
(few alternatives) (many alternatives)

Purchase Purchase Purchase

Post purchase Post Purchase Post Purchase

No dissonance No Dissonance Dissonance

Limited evaluation Complex Evaluation

 Problem Recognition
• Buying Process starts when buyer recognize
problem or need.
Internal Stimuli-Hunger ,Thirsts,sex.
• External Stimuli- e.g.neighbour’s car, TV
advertising, Magazine ad, Radio slogan, Stimuli in
the environment
 Process of Problem Recognition
Desired Consumer Lifestyle Current Situation

Desired State Actual State

NATURE OF DISCREPANCY

No difference Desired state exceeds Actual state

Actual state exceeds desired state
Satisfaction

No action problem recognized

(Information search initiated)
 Information search
• What is nature of information search.
• What types of information are sought
• What sources of information are used
• What marketing strategies can be developed based on patterns of
search behavior.
A) Nature of Information Search
1) Internal Search : “ If Trishun had given relief
against cold last time , he would go to nearest store and buy Trishun
without further information search or evaluation”
2)External Search :
a)Opinion of friends , neighbors , relatives
b) Professional information that is provided in internet ,
newspapers ,magazines etc.
C) Ads, In store displays
 Information search
• B) Types of Information Search:
1) Appropriate evaluation criteria for
the solution of a problem
2) Existence of various alternative solution.
3) performance level or characteristics of
each alternative solution on each alternative
criterion
 Information Search
1. Personal-
family,friends,neighbours,aquaintances.
2. Commercial-advertising,websites,sales
person, packaging ,displays.
3. Public-mass media, consumer rating
organization.
4. Experiential-handing,examining,using
products.
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
Product Attributes
Attributes
Evaluation of Quality, Price, & Features
Evaluation of Quality, Price, & Features

Degree
Degree of
of Importance
Importance
Which attributes matter most to me?
Which attributes matter most to me?

Brand
Brand Beliefs
Beliefs
What do I believe about each available brand?
What do I believe about each available brand?
Total
Total Product
Product Satisfaction
Satisfaction
Based
Basedon
onwhat
whatI’m
I’mlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?
Evaluation
Evaluation Procedures
Procedures
Choosing a product (and brand) based on one
Choosing a product (and brand) based on one
or
ormore
moreattributes.
attributes.
 Evaluation of Alternatives
1.Try to satisfy need.2.looking for certain benefits.3.See as
bundle of attributes.
• Cameras-picture sharpness,speed,size,price.
• Hotels-location,cleanliness,atmosphere,price.
• Mouthwash-color,effectiveness,germ killing capacity price,
taste ,flavor,
• Tires-safety, tread life, ride quality, price.
• Belief-a descriptive thought that person holds
about something.
• Attitude-enduring faverable or unfaverable evaluation,
emotional feeling and action tendencies towards some object or
idea.
 Expectancy Value Model
computer Attribute

Memory Graphic Size and Price

capacity capability weight
A 10 8 6 4
B 8 9 8 3
C 6 8 10 5
D 4 3 7 8
 Purchase Decision
• 1.brand 2 dealer 3 quality 4 timing 5 payment method.
• Noncompensatory models of consumer choice.-
*conjunctive heuristic-eg.1bhk flat.
*lexicographic heuristic-e.g. Hero Honda bikes.
*elimination by aspects heuristics.e.g.Hundai cars.
Intervening Factors-
1.Negative thought of other
2.Positive thought
3unanticipated situational factor-sales person may turn her
off.
• Consumer decision to modify, postpone , or avoid depends on
perceived risk. E.g. functional risk,physical risk,financial risk,social
risk,psychological risk,time risk.
The Buyer Decision Process
Step 4. Purchase Decision

Purchase
Purchase Intention
Intention
Desire
Desire to
to buy
buy the
the most
most preferred
preferred brand
brand

Attitudes Unexpected
of others situational
factors

Purchase
Purchase Decision
Decision
 Post purchase Behavior
• Post purchase satisfaction-dissonance ,satisfied,
delighted.
Post purchase actions-75% Toyota buyers are
highly satisfied.
dissatisfied customer may abandon or return the
product.
Post purchase use and disposal-product
consumption rate.
Post purchase behaviour