CONSUMER

BEHAVIOR
DEFINITION
“Consumer Behavior includes all the acts of
individuals directly involved in obtaining
and using economic goods and services
including the decision process that
precedes and determine these acts.”

“Buying behavior is the decision processes

and acts of people involved in buying and
using products”
Need to Understand about
buyer

 Who buys our product or service?

 Who makes the decision to buy the
product?
 Who influences the decision to buy the
product?
 How is the purchase decision made? What
needs must be satisfied?
 What motivates the Buyer?
Need to Understand about
buyer
 What/ Why does he buy a specific Brand?
 Why does he buy from a particular shop?
 Why does he shift from one shop to
another or from one brand to another?
 How does he react to a new product
introduced in the market or a piece of
information addressed to him?
 What are the stages he travels through,
before he makes the decision to buy?
The
The Buyer
Buyer Decision
Decision Process
Process
Need
Need Recognition
Recognition

Information
Information Search
Search

Evaluation
Evaluation of
of Alternatives
Alternatives

Purchase
Purchase Decision
Decision

Postpurchase
Postpurchase Behavior
Behavior
 The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition

Internal
Internal Stimuli
Stimuli External
External Stimuli
Stimuli
•• Hunger ••TV
TV advertising
advertising
Hunger
•• Thirst
Thirst •• Magazine
Magazine ad
ad
•• AA person’s
person’s normal
normal •• Radio
Radio slogan
slogan
needs
needs
••Stimuli
Stimuli in
in the
the
environment
environment
 The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 2.
2. Information
Information Search
Search

Personal •Family, friends, neighbors

Personal Sources
Sources •Most influential source of
information

Commercial •Advertising, salespeople

Commercial Sources
Sources •Receives most information
from these sources

Public •Mass Media

Public Sources
Sources •Consumer-rating groups

•Handling the product

Experiential
Experiential Sources
Sources •Examining the product
•Using the product
 The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives

Product
ProductAttributes
Attributes
Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features

Degree
Degreeof
ofImportance
Importance
Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?
Brand
BrandBeliefs
Beliefs
What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?
Total
TotalProduct
Product Satisfaction
Satisfaction
Based
Basedon
onwhat
whatI’m
I’mlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?
Evaluation
EvaluationProcedures
Procedures
Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.
 The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 4.
4. Purchase
Purchase Decision
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
The
The Buyer
Buyer Decision
Decision Process
Process
5-17
5-17

Step
Step 5.
5. Postpurchase
Postpurchase Behavior
Behavior
Consumer’s
Consumer’s Expectations
Expectations of
of
Product’s
Product’s Performance
Performance
Product’s Perceived
Performance

Satisfied
Satisfied Dissatisfied
Dissatisfied
Customer!
Customer! Customer
Customer
Cognitive Dissonance
Cognitive Dissonance
Characteristics
Characteristics Affecting
Affecting
Consumer
Consumer Behavior
Behavior
Culture
Social

Personal
Psychological

Buyer
Buyer
 Factors Affecting Consumer Behavior:
Culture
 Most basic cause of a person's wants and
behavior.
 Values
 Perceptions

Subculture Social Class

• Groups of people with shared • People within a social class
value systems based on common tend to exhibit similar
life experiences. buying behavior.
• Nepalese Indian consumers • Occupation

• European Indian Consumers • Income

• Education
• Tibetian Indian Consumers
• Wealth
• Mature Consumers
 Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Social
Social

Groups
Groups
••Membership
Membership
••Reference
Reference

Family
Family
••Husband,
Husband, wife,
wife, kids
kids Social
Social Factors
Factors
••Influencer,
Influencer, buyer,
buyer, user
user

Roles
Roles and
and Status
Status
 Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Personal
Personal
PERSONAL
PERSONAL INFLUENCES
INFLUENCES
Age
Age and
and Family
Family Life
Life Cycle
Cycle Occupation
Occupation
Stage
Stage

Economic
Economic Situation
Situation Personality
Personality && Self-Concept
Self-Concept

LIFESTYLE
LIFESTYLE IDENTIFICATION
IDENTIFICATION
Activities
Activities Opinions
Opinions

Interests
Interests
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological

Motivation
Motivation

Beliefs
Beliefs and
and Psychological
Attitudes
Attitudes Factors PPerception
erception

Learning
Learning
The Consumer Stimuli Model
Marketing Inputs Purchase Decisions/
Product Consumer’s Response
Price Black Box Product Choice
Promotion (Thinking Location Choice
Place Process) Brand Choice
Other Inputs Other Choices
Psychological Inputs
Culture
Attitude
Learning
Perception