Consumer behaviour

1. AMERICAN UNIVERSITY OF LIBYA
CONSUMER BEHAVIOUR
Prepared
By
Kawther ALthani
2016
Dr
Atiya Abuharris

2.  INTRODUCTION
 Definition of Consumer Behavior
Characteristics of consumer behavior
Importance/Need of study of consumer behaviour
Types Of Consumer Behavior
Customer
 Consumer
Ultimate Consumer
Institutional buyer
Factors Affecting Consumer Behavior
Application of CB with marketing prospect
Dark side of consumer behavior
CONCLUSION
REFERENCES

3. INTRODUCTION
"Consumer behaviour may be defined as the behaviour that
consumers display in searching for, purchasing suing,
evaluating and disposing of produces, services and ideas which
they expect will satisfy their needs."

4. Definition of Consumer Behavior
“Consumer behavior is the process whereby individuals decide what,
when, where, how and from whom to purchase goods and services.”
Walters and Paul
In another words, consumer behaviour can be define as the behaviour
of individuals or groups in regards to acquiring, using and disposing of
products, services, ideas or experiences.
“Consumer Behavior is the study of the process involved when
individualsor groups select, purchase, dispose of products or
services to satisfy needs and
desires”
It’s a combination of five disciplines
▫ Psychology
▫ Sociology
▫ Anthropology
▫ Economics
▫ Marketing Management

5. Importance/Need of study of consumer behaviour
• The Consumer is King.
• Only the Customer Can Fire Us All
• People are different
• Consumer behavior educates and protects consumers
• To make better strategies for increasing profits
• To take into consideration customer’s health, hygiene
& fitness
• To know the buying decisions and how consumer
make consumption
• Consistent change in Consumer’s tastes or preferences
• Consumer behavior study is necessary to make pricing
policies
• To avoid future market failures

6. Characteristics of consumer behaviour
• It is a process where consumer decide what to buy,
when to buy, how to buy, where to buy & how much
to buy.
• It comprises of both mental and physical activities of
consumer.
• Consumer behaviour is very complex and dynamic
which keeps on changing constantly.
• Individual buying behaviour is affected by various
internal factors like his needs, wants, attitudes &
motives and also by external factors like social
groups, culture , status, environmental factors etc.
• Consumer behaviour starts before buying and even
after buying.

7. Types Of Consumer Behaviour
Buyer
Consumer
Customer
Institutional
Buyer
Ultimate
Consumer

8.  Customer: means who purchases the product from the
marketer or from the retailer or from the wholesaler. Here
we don’t bother about who uses the product.
 Consumer: means who uses the product of course
purchased by the customer. Here we consider finally who is
going to use the product we call them as consumer.
Buyer: The person who purchase goods either for resale or
for use in production or for use of somebody else.
 The Ultimate Consumer: Those individuals who
purchase for the purpose of individual or household
consumption.
Institutional buyer: These are either govt. institutions or
private organizations

9. Factors Affecting Consumer Behavior

10. CULTURAL FACTORS
• Culture - It is a mix of customs, beliefs
and values of consumers of a particular
country.
• Social Class - These are permanent
groups in the society whose members have
common likings

11. SUB CULTURE
Sub Culture - Subcultures are part
of culture consisting of geographic
regions, religions, nationalities and
racial groups. The values of these groups
are different from each other.
•Religion
•Geographical location
•Gender (male/female)

12. SOCIAL CLASS
• Relatively permanent and ordered
divisions in a society whose
members share similar values,
interests and behavior.

13. SOCIAL FACTORS
• Reference Groups - “Reference
groups are groups that people refer to
when evaluating their own qualities,
attitudes, values and behaviors.”
• Family Members
• Relatives
• Role in the Society
• Status in the society

14. PERSONAL FACTORS
• Occupation
• Age
• Economic Condition
• Lifestyle
• Personality

15. PSYCHOLOGICAL FACTORS
• Perception
• Learning
• Beliefs and Attitude
• Motivation

16. Who influence a consumer?

17. Obtaining
• The activity that leading up to and including
purchase or receipt of a product.
▫ How they get information?
▫ How they decide what to buy?
▫ Where you buy?
▫ How you pay for it?
▫ How you take it to their home?

18. Meaning of Consumption
“People don’t buy products for what they do but
for what they mean”
Different types of relationship:-
Self concept – user’s self image.
Interdependence – part of users daily routine.
Love – emotional bonds with the user.

19. Disposing
• How they get rid of remaining product?
• How much they throw away after use?
• How they recycle the product?

20. Application of CB with marketing prospect
From the marketing point of view, understanding consumer
behaviour is crucial to successful delivery of firms’ offering
in the market place.
• Market-Opportunity Analysis: this involves examining trends
and conditions in the marketplace to identify consumers’ needs and
wants that are not being fully satisfied.
• Target Market Selection: this has to do with identifying distinct
groupings of consumers who have unique wants and needs and the
selection of segment that matches the firm’s strength and offer
better opportunities.
• Marketing- Mix Determination: this involves developing and
implementing a strategy for delivering an effective combination of
want-satisfying features to consumers within target market.
• Marketing strategy: understanding of consumer behaviour is
needed in strategic marketing activities. This is because marketing
strategies and tactics are based on explicit or implicit beliefs about
consumer behaviour.

21. Dark side of consumer behavior
• Addictive consumption – Gambling, Alcohol, Drugs.
• Consumed consumption – Consumers who are
exploited. Ex) Adopting a baby, organ donors, blood
donors.
• Illegal activities – Theft.
• Anti-consumption – People who create aversion
towards a product ex) Burned lungs image, V-care
shampoo ads

22. CONCLUSION
As customer is the king, it is very important for
every organisation to understand the needs and
wants of their consumer and try to satisfy them.
For this the study of consumer behaviour is very
essential.
 Consumer Delight:
When the actual product performance exceeds the
buyer’s expectations, consumer will be highly satisfied .
So excess of actual product performance over the
expectation is called “consumer delight”.
Today consumer delight has therefore become a buzz
word.