Organizational Behavior

1. Introduction to
Consumer Behavior
CHAPTER
one

2. Rumana Perveen
Assistant Professor
Northern University Of Business & Technology
Khulna

3. CONTENT
Definition of Consumer Behavior.
 Scope of consumer behavior.
The stages of consumer buying process.
Contributing Disciplines of consumer
behavior.
Cognitive Dissonance

4. Consumer behavior is the process whereby individuals decide what,
when, where, how and from whom to purchase goods and services.
Consumer Behavior

5. Consumer Behavior
Consumer behavior is defined as the behavior that consumers display
in searching for, purchasing, using, evaluating and disposing of
products and services that they expect will satisfy their needs.

6. CONSUMER BEHAVIOR
Set of behaviors.
Display in searching for, purchasing, using,
evaluating and disposing of product and services.
Looking for satisfying their needs
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7. SCOPE
What are the products
people buy?
Why they buy them?
How they buy them?
When they buy them?
Where from they buy
them?
How often they buy them?
How is the decision process of
the consumer?
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8. PRE
PURCHASE
STAGE
PURCHASE
STAGE
POST
PURCHASE
STAGE
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9. PRE-PURCHASE STAGE
1. Awareness
2. Information search
3. Analysis
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10. AWARENESS
 Aware of both a need to be satisfied and
availability of the product or service.
 Awareness of the need must come first.
 Awareness of the need and availability can
occur simultaneously.
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11. INFORMATION
The consumer tries to obtain information about how
the particular need can be satisfied.
 Canbe collectedfromfriends,relatives,acquaintancesor from
various promotionalefforts ofthefirmanditscompetitors.
 Depends on consumer’slevelof familiarityandexperience with
the goods andservices,availability of information.
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12. ANALYSIS
 Finally, consumer analyze the information
collected.
 Consideration of the
advantage and disadvantage
of holding money.
 Weighting attributes of the
competing products.
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13. Factors of Pre-Purchasestage
Urgency
Criticality
Buying Situation
Monetary Involvement
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14. • Purchase Stage
After analyzing the information available, the consumer’s
purchase behavior comes into focus.
Decision Making
 Decision of whether the need should be satisfied.
 Very low cost purchase will not be specially
agonizing.
 Analyzing about which one will best satisfy the need.
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15. Factors considering purchasing
decision
Social factors.
Individual factors.
Environmental factors.
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16. Physical Exchange
• The physical exchange is a very vital part
in purchase stage.
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17. Post purchase stage
Post purchase stage is
very much critical
and very effective
force in consumer
buying process.
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18. Primary concern is customer
satisfaction
Need to make sure customer
satisfaction
Failing to performing up the
expectation first time may make
customer reluctant to buy the
product again.
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19. Reducing cognitive dissonance
Generally after most high cost purchase, a buyer
may experience cognitive dissonance.
Questioningthewisdomof thedecision.
Negativefactorsseemsgreater.
Customerseekoutinformationreinforcing
thewisdomof theirchoices.
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20. Ensuring long term customer
relationship
After sale service,
ensuring good
quality, warranty,
guaranty can build
strong relationship
with consumer.
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21. Contributing Disciplines
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 Anthropology: study of behavior in cultural and sub-cultural
settings
 Sociology: study of influence of social groups on individuals
 Psychology: study of forces within the individual that shapes
behavior
 Social Psychology: discuss how individual operate in groups
 Economics: deals with creation and utilization of wealth
 Marketing research: provides insights on consumer responses
towards marketing stimuli.

22. Why study Consumer Behavior
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 Significance in daily lives
 Application in decision making
Micro perspective(making organizational decision)
Societal perspective(improving efficiency in market
economy, ensuring social wellbeing)

23. Emergence of Consumer Behavior
Field
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 CB has emerged as legitimate field of study during 1960s
 Reason for rapid development
Marketing orientation of the business
Sharing the knowledge of different fields
of social science
Increased no. of research on consumer
behavior
Development of technology
Consumer movement

24. Cognitive Dissonance
•psychological discomfort caused by
inconsistencies among a person’s
beliefs, attitudes, and actions
•varies in intensity based on importance
of issue and degree of inconsistency
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25. •induces a “drive state” to avoid or reduce dissonance
by changing beliefs, attitudes, or behaviors and
thereby restore consistency.
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26. Cognitive Dissonance
? Did I make a good decision?
Did I buy the right product?
Did I get a good value?
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27. Sour Grapes–
a story of
cognitive dissonance
…after being unable to reach the grapes the fox said, “these grapes are probably
sour, and if I had them I would not eat them.”
--Aesop
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