Consumer behaviour

1. CONSUMER
BEHAVIOUR
Prepared & Presented by: Dr.
Gurpreet Kaur Chhabra,
Associate . Prof. MERI College

2. Overview of Consumer Behavior
Definition 1: Consumer behavior:
The study of how individuals make decisions:
On how to spend their:
• Available resources( time, money effort) On
various consumption- related items.
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3. Overview of Consumer Behavior
Definition 2: Consumer behavior
• The behavior that consumers display in
:
• Searching for,
• Purchasing,
• Using,
• Evaluating,
• And disposing of products and services
• That they expect will satisfy their
needs.
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4. Type of Consumers
Personal Consumer :
The individual who buys goods and services for his or her own use, for
household use, for the use of a family member, or for a friend.
Organizational Consumer :
A business, government agency, or other institution (profit or
nonprofit) that buys the goods, services, and/or equipment necessary
for the organization to function.
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5. Why do we need to study
Consumer Behavior?
•Because no longer can we take the
customer/consumer for granted.
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6. Relevance of Consumer Behavior
The study of consumer behavior is very relevant for
marketers because:
• Information and knowledge of buyer motives and
habits will enable them to draft suitable marketing
programmes accordingly.
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7. Consumer Behavior & Decision Making
interdisciplinary
Consumer behavior as a new discipline borrowed concepts from other
scientific disciplines such as:
•Anthropology
•Psychology
•Economics
•History and geography
•Socio-psychology
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8. Anthropology
•The influence of the culture
(within and across) & society
on the individuals.
•Emphasis on cross-cultural
differences
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9. Psychology
•Study of human thinking and
behavior
•Some issues
• Personality
• Personal development
• Cognition (thinking), perception
• Attention and its limitations
• “Learning”—e.g., acquired tastes
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10. Economics
•Basic economic issues
• Supply and demand
• Rational decision making
• Perfect information
•Emphasis on predicting behavior
•Complications in real life
•Behavioral economics—e.g.,
“mental accounting”
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11. History and Geography
• Origins of behavior,
perspectives, and traditions
• Impact of geography on
individuals
• Isolation
• Language development
• Climate
• Geographic determinism
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12. Socio- Psychology
•Is the study of how persons are
influenced by groups.
•Cultural and interpersonal
influences on
consumption—e.g.,
• Fads, fashions
• Diffusion of innovation
• Popular culture
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13. Dynamic Consumer Behavior
•Thinking, feelings, and actions of individual consumers, targeted
consumer groups, and society at large are constantly changing.
•Requires ongoing consumer research and analysis of important
trends.
•Makes development of marketing strategies difficult and exciting
• Shorter product life-cycle increases importance of constant innovation
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14. Production concept
Product concept
Selling concept
Marketing concept
Societal concept
Marketing concepts

15. Shift of focus to better serve consumers for major
reasons
• Increased consumer interest in world markets.
• Dramatic increase in the quality of consumer and marketing research.
• Use of technology to identify and know customers personally
• Ability to track consumer reactions
• Development of the Internet as a marketing tool.
• E-marketing potential
• Increased importance of consumer behavior research
• Ability to conduct marketing research studies
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16. Successful Relationships
Custo
mer
Satisf
action
Custo
mer
Retent
ion
Custo
mer
Value
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17. Impact of Digital Technologies
•Consumers have more power and access to
information.
• Marketers can gather more information about
consumers .
•The exchange between marketer and customers is
interactive and instantaneous and goes beyond the
PC.
• Marketers must offer more products and services.
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18. Consumer Research
•Consumer research has developed as an extension to
the field of marketing research with emphasis on
consumer behavioral aspects.
•The initial thrust on studying CB by marketers was
done for two reasons:
• To determine as to why consumers made the purchase
decisions.
• To understand how consumers would react to promotional
messages.
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19. Model of Consumer
Behavior Marketing and
Other Stimuli
Buyer’s Black Box
Buyer’s Response
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
Characteristics
Affecting
Consumer
Behavior
Buyer’s
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Purchase
Timing
Purchase
Amount

20. The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior

21. The Buyer Decision Process
Step 1. Need Recognition
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the
environment
Internal Stimuli
• Hunger
• Thirst
• A person’s normal
needs
Need Recognition
Difference between an actual state and a desired state

22. The Buyer Decision
Process
Step 2. Information Search
•Family, friends, neighbors
•Most influential source of
information
•Advertising, salespeople
•Receives most information
from these sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources

23. The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.

24. The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpected
situational
factors

25. The Buyer Decision Process
Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Dissatisfied
Customer
Satisfied
Customer!
Product’s Perceived
Performance
Cognitive Dissonance