Consumer behaviour

Chapter 6
An Introduction to
Consumer Behaviour
Made by Bhupinder Kaur
S.D.College, Ambala cantt

“Remember
Me?”
I'm the fellow who goes into a restaurant, sits down and patiently
waits while the waitresses do everything but take my order. I'm
the fellow who goes into a department store and stands quietly
while the sales clerks finish their little chitchat. I'm the man who
drives into a gasoline station and never blows his horn, but waits
patiently while the attendant finishes reading his comic book.
"Yes, you might say, I'm a good guy. But do you know who else I
am? I am the fellow who never comes back, and it assumes me to
see you spending thousands of dollars every year to get me back
into your store, when I was there in the first place, and all you had
to do to keep me was to give me a little service; show me a little
courtesy.“

Defining Consumer Behavior
Consumer Behavior is the Process
Involved When Individuals or Groups
Select, Use, or Dispose of Products,
Services, Ideas or Experiences
(Exchange) to Satisfy Needs and
Desires.

Implications of our Definition
• Totality of Decisions (all decisions)
– Whether?
– What?
– Why?
– How?
– When?
– Where?
– How much?
– How often?

The Buyer Decision Process
Need RecognitionNeed Recognition
Information SearchInformation Search
Evaluation of AlternativesEvaluation of Alternatives
Purchase DecisionPurchase Decision
Postpurchase BehaviorPostpurchase Behavior

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

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 SourcesPersonal Sources
Commercial SourcesCommercial Sources
Public SourcesPublic Sources
Experiential SourcesExperiential Sources

Step 3. Evaluation of Alternatives
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
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?
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.
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.

Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Purchase Intention
Desire to buy the most preferred brand
Purchase DecisionPurchase Decision
Attitudes
of others
Unexpected
situational
factors

Step 5. Postpurchase Behavior
Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Consumer’s Expectations of
Product’s Performance
Dissatisfied
Customer
Dissatisfied
Customer
Satisfied
Customer!
Satisfied
Customer!
Product’s Perceived
Performance
Product’s Perceived
Performance
Cognitive Dissonance

1. Family
• Role of the family members
Initiator
Influencer
Decider
User

2. ReFeRence gRoups
• Primary group – interact with on regular
basis
Friends
Family members
Relatives
Co workers
Example: Avneet wanted to purchase a laptop. She
went to the nearby store and purchased a dell
laptop. The reason why she purchased because
all her friends were using the same model.

sTages sHoW DiFFeRnT Buying
neeDs
• Bachelorhood : bike ,smart phones ( spend
lavishly).
• Newly married : purchase a new house, car,
household furnishing (spends sensibly).
• Family with children : purchase products to
secure his as well as family future.
• Empty nest : medicines, health , necessary
items.

seconDaRy gRoups
• Religious groups
• Associations
• Political parties
• Clubs

Example
• McDonald’s is a brilliant example of adaptation to the
specificities of each culture and each market. Well
aware of the importance to have an offer with specific
products to meet the needs and tastes of consumers
from different cultures, the fast-food giant has for
example: a McBaguette in France (with french baguette
and Dijon mustard), a Chicken Maharaja Mac and a
Masala Grill Chicken in India (with Indian spices) as
well as a Mega Teriyaki Burger (with teriyaki sauce) or
Gurakoro (with macaroni gratin and croquettes) in
Japan

psycHological FacToRs
Perception
perception and communication
Product and brand perception
Price perception
Store perception
Perceived risk

Contd.
• Attitude
• Personality
• Learning : For example, if you are sick after
drinking milk, you had a negative experience,
you associate the milk with this state of
discomfort and you “learn” that you should
not drink milk. Therefore, you don’t buy milk
anymore

Learning Model of Buyer
Behavior

economic modeL
• In this model, consumers follow the principle of maximum
utility based on the law of diminishing marginal utility.
Economic man model is based on the following effects −
• Price Effect Lower the price of the product more will be−
the quantity purchase.
• Substitution Effect Lower the price of the substitute−
product, lower will be the utility of the original product
purchase.
• Income Effect When more income is earned, or more−
money is available, quantity purchased will be more. The
economic theory of buyer’s decision-making was based on the
following assumptions:

Chapter 21 - Consumer Choice 29
Utility Theory
• Utility
– The want-satisfying power of a good or service
• Utility Analysis
– The analysis of consumer decision making based on utility
maximization
• Util
– A representative unit by which utility is measured

Chapter 21 - Consumer Choice 30
Utility Theory
• Marginal Utility
– The change in total utility due to a one-unit
change in the quantity of a good or service
consumed
Marginal utility =
Change in total utility
Change in number of units consumed

TOTAL AND MARGINAL UTILITY
Tacos
consumed
per meal
Total
Utility,
Utils
Marginal
Utility,
Utils
0
1
0
10
Units consumed per meal
30
20
10
TotalUtility(utils)MarginalUtility(utils)
10
8
6
4
2
0
-2
0 1 2 3 4 5 6 7
1 2 3 4 5 6 7

Tacos
consumed
per meal
Total
Utility,
Utils
Marginal
Utility,
Utils
0
1
0
10
10
30
20
10
10
8
6
4
2
0
-2
0 1 2 3 4 5 6 7
1 2 3 4 5 6 7

Tacos
consumed
per meal
Total
Utility,
Utils
Marginal
Utility,
Utils
0
1
2
0
10
18
10
8
30
20
10
10
8
6
4
2
0
-2
0 1 2 3 4 5 6 7
1 2 3 4 5 6 7

Tacos
consumed
per meal
Total
Utility,
Utils
Marginal
Utility,
Utils
0
1
2
3
0
10
18
24
10
8
6 0 1 2 3 4 5 6 7
30
20
10
10
8
6
4
2
0
-2
1 2 3 4 5 6 7

Tacos
consumed
per meal
Total
Utility,
Utils
Marginal
Utility,
Utils
0
1
2
3
4
0
10
18
24
28
10
8
6
4 Units consumed per meal
30
20
10
10
8
6
4
2
0
-2
0 1 2 3 4 5 6 7
1 2 3 4 5 6 7

Tacos
consumed
per meal
Total
Utility,
Utils
Marginal
Utility,
Utils
0
1
2
3
4
5
0
10
18
24
28
30
10
8
6
4
2
30
20
10
10
8
6
4
2
0
-2
0 1 2 3 4 5 6 7
1 2 3 4 5 6 7

Tacos
consumed
per meal
Total
Utility,
Utils
Marginal
Utility,
Utils
0
1
2
3
4
5
6
0
10
18
24
28
30
30
10
8
6
4
2
0
30
20
10
10
8
6
4
2
0
-2
0 1 2 3 4 5 6 7
1 2 3 4 5 6 7

Tacos
consumed
per meal
Total
Utility,
Utils
Marginal
Utility,
Utils
0
1
2
3
4
5
6
7
0
10
18
24
28
30
30
28
10
8
6
4
2
0
-2
30
20
10
10
8
6
4
2
0
-2
TU
MU
0 1 2 3 4 5 6 7
1 2 3 4 5 6 7

Tacos
consumed
per meal
Total
Utility,
Utils
Marginal
Utility,
Utils
0
1
2
3
4
5
6
7
0
10
18
24
28
30
30
28
10
8
6
4
2
0
-2
30
20
10
10
8
6
4
2
0
-2
TU
MU
0 1 2 3 4 5 6 7
1 2 3 4 5 6 7
Observe
Diminishing
Marginal
Utility

• As consumer resources are limited, he would allocate the
available money which will maximize the satisfaction of his
needs & wants.
• Consumers have complete knowledge about the utility of
each product and service, i.e., they are capable of completing
the accurate satisfaction that each item is likely to produce.
• As more units of the same item are purchase the marginal
utility or satisfaction provided by the next unit of the item will
keep on decreasing, according to the law of diminishing
marginal utility.
• Price is used as a measure of sacrifice in obtaining the goods
or services. The overall objective of the buyer is to maximize
his satisfaction out of the act of purchase

The psychoanalyTical
model
ID :
PERSUADER
S
SUPER EGO :
DISSUADERS
EGO
MODERATED ACTION

Consumer behaviour

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (18)

Similar to Consumer behaviour

Similar to Consumer behaviour (20)

More from bhupinder kaur

More from bhupinder kaur (20)

Recently uploaded

Recently uploaded (20)

Consumer behaviour