2. CONSUMER BEHAVIOR
Consumer behavior is the study of how
people buy, what they buy, when they buy
and why they buy. It attempts to understand
the buyer decision making process, both
individually and in groups. It studies
characteristics of individual consumers such
as demographics, psychographics, and
behavioural variables in an attempt to
understand people's wants.
3. STAGES OF THE CONSUMER
BUYING PROCESS
Consumer buying decision process includes
six stages. They are:
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Purchase
Post-Purchase Evaluation
4. 1. PROBLEM RECOGNITION
Difference between the desired state and the
actual condition.
Example:
By seeing a commercial for a new pair of shoes,
stimulates your recognition that you need a new
pair of shoes.
Hunger stimulates your need to eat.
5. 2. INFORMATION SEARCH
Internal Search:
--- Memory
External Search:
--- Friends and Relatives
A successful information search leaves a buyer with
possible alternatives, the evoked set.
Example:
Hungry, want to go out and eat, evoked set is
Chinese food
Indian food
Burger king
6. 3. EVALUATION OF ALTERNATIVES
Need to establish criteria for evaluation,
features the buyer wants or does not want.
Rank/weight alternatives.
Example:
If you want to eat something spicy, then
Indian food gets the highest rank etc…
7. 4. PURCHASE DECISION :
Choose buying alternative, includes
product, package, store, method of
purchase etc.
5. PURCHASE :
May differ from decision, time lapse
between purchase decision and the actual
purchase, product availability.
8. 6. POST-PURCHASE EVALUATION :
It is the outcome Satisfaction or
Dissatisfaction. This can be reduced by
warranties, after sales communication etc.
Example:
After eating an Indian meal, you may
think that really you wanted a Chinese
meal instead.
9. TYPES OF CONSUMER BUYING
BEHAVIOR :
There are four types of consumer buying
behavior, they are :
Routine Response/Programmed Behavior
Limited Decision Making
Extensive Decision Making
Impulse buying
11. 2. LIMITED DECISION
MAKING
Buying product occasionally.
That is when you need to obtain
information about unfamiliar brand in a
familiar product category.
Example:
Clothes--know product class but not the
brand.
12. 3.EXTENSIVE DECISION
MAKING :
Complex high involvement,
unfamiliar, expensive and infrequently
bought products.
Spend a lot of time seeking
information and deciding. High degree of
risk.
Example:
Cars, homes, computers, education.
13. 4. IMPULSE BUYING :
No conscious planning.
The purchase of the same product does not
always elicit the same Buying Behavior. Product
can shift from one category to the next.
For example:
Going out for dinner for one person may be
extensive decision making (for someone that does
not go out often at all), but limited decision
making for someone else. The reason for the
dinner, whether it is an anniversary celebration, or
a meal with a couple of friends will also determine
the extent of the decision making.
