Consumer behavior involves the mental and physical activities individuals engage in when buying and using products and services. It is influenced by psychological, social, and economic factors. Understanding consumer behavior is important for businesses to develop effective marketing strategies. It helps businesses identify target markets, determine the marketing mix of product, price, place, and promotion, and create integrated strategies to satisfy consumer needs and achieve business objectives. Studying consumer behavior is also important for non-profit organizations, governments, and consumer education programs.

1. Introduction to
Consumer Behavior

2. Consumer Behavior
Definition
“The decision process and physical activity
individuals engage in when
evaluating, acquiring, using or disposing of goods and
services”.

3. Customer
 A person or organization that buys goods or services
from a store or other business.
 A customer can also be someone purchasing from a
particular store or shop.
e.g. Tesco, Metro, Refreshment Center etc

4. Consumer
 A consumer is a person or group of people who are
the final users of products and or services.
 An individual who buys products or services for
personal use and not for manufacture or resale.
e.g. A Household.

5. Ultimate Consumer
 Individuals purchasing for the purpose of individual or
household consumption.
 e.g. for personal use or in a house.
 Not for commercial or industrial use.
e.g. not for mess or canteen.

6. Theindividual making a purchase with little or no
An
Individual Buyer
influence from others.
A number of people can also be jointly involved in a
purchase decision.
For example. Planning a vacation or deciding on a new
car can involve an entire family.

7. Some Consumer Behavior Roles
 Initiator: The individual who determines that
some need or want is not being met and
authorizes a purchase to rectify the situation.
 Influencer: A person who by some intentional or
unintentional word or action influences the
purchase decision, the actual purchase, and / or
the use of the product or service.
 Buyer: The individual who actually makes the
purchase transaction.
 User: The person most directly involved in the
consumption or use of the purchase.

8. Examples
 A wife may ask her husband to pick up a box of
Chocolates on his shopping trip because their child
said she wanted it.
 At another time the husband is purchasing a health
spa membership for himself.

9. Roles Played!
Example 1
Wife (initiator and influencer)
Husband (buyer)
Child (user)
Example 2
Husband (initiator, buyer and user)

10. The Decision Process
 Consumer behavior involves a mental decision process
along with physical activity.
 Decision process dictates what is to be bought and
why????
•Quality •Recommendations
•Price •Advertisement Effects
•Quantity •Dissatisfaction
•After sales service

11. Consumer Behavior As a Subset of
Human Behavior
Factors affecting individuals in their daily lives
also influences their purchase activities.
Following disciplines also help to understand.
Psychology (Study of behavior and mental processes)
Sociology (Behavior of people in Groups)
Economics (Study of people’s Production, exchange
and consumption)
Anthropology (Study of people in relation to culture)

12. WHY STUDY CB?
Significance in Daily Lives.
 How consumers spend time?
 Looking at things and buying them?
 Who advices them?
 How much ads affect?
 How are bought things used?

13. Application to Decision Making
Micro Perspective
 Helping an individual firm achieve its objectives.
 E.g. increase sales or profits etc.
Societal Perspective
 Macro or Aggregate.
 Determines what is to happen in the society.
 Constructing flats.
 Moving to Suburbs.
 How we run our daily lives (what we eat, where we shop
and how we are entertained)
 Owning private cars etc.
 Helps in solving Problems of the Society.

14. Consumer Behavior and
Marketing Management
Understanding of CB is essential to run marketing
programs.
1. Consumers Wants and Needs
2. Company objectives
3. Integrated Strategies

15. Market-Opportunity Analysis
Understanding consumers lifestyle and income levels.
Then satisfying unmet needs and wants.
e.g. Fitness trend in the market.
Result : Exercise machines and fitness products.

16. Target Market Selection
Identifying distinct group of consumers.
Offer a unique product or service.
e.g. Soft drinks markets.
 Diet vs. Regular
 Bottle vs. Tinned
 Packed vs. Fountain fresh
 Vending machines vs. Retail outlets
Niche Marketing????

17. Marketing Mix Determination
The 4P’s
 Product
 Price
 Place
 Promotion

18. Select Any Product????

19. 1. Product
 What Shape, Size and Features?
 Packaging?
 Any service required?
 Warranties?
 Accessories offered?

20. 2. Price
 Price awareness?
 Price sensitivity?
 Price reduction needed during sales promotion?
 Cash payment discounts?

21. 3. Place
 Type of Retail outlet?
 Location and no. of outlets?
 Arrangements needed to distribute products?
 Tight Control in channel of distribution?

22. 4. Promotion
 Method of promotion?
 Gaining consumer attention?
 Repetition of advertisement?
 Best method to convey intended message?

23. CB and Nonprofit and Social
Marketing
Includes:
 Governmental Agencies.
 Religious Organizations.
 Charity Organizations
Uses to:
 To create awareness.
 To Donate.
 To Help people.

24. Examples:
 Combating Aids.
 Anti Polio.
 Anti Cancer.

25. CB and Governmental Decision
Making
 To create a softer image for the decisions made by
Govt.
 Chipped NADRA ID Card.
 Ads of Metro bus service (Working Phase).
 Using Seatbelts.
 Avoiding Over speeding.

26. CB and Demarketing
 Anti Smoking Campaigns.
 Drug Abuse.

27. CB and Consumer Education
 To educate the Consumer for his rights.
 To reduce impulse buying.
 How to compare things with money.
 Better return for Dollar.
 Courses are even offered.

28. THE END