This document discusses consumer behavior and the factors that influence consumers' purchasing decisions. It defines a consumer, explores why and when consumers buy products and why they may not buy products. It also examines psychological theories that help explain consumer behavior, including needs, selective exposure, attention and retention. Economic factors like income, as well as social and cultural influences, shape consumer choices. Understanding consumer behavior can help marketers target the right customers with effective messaging.

2. • Any individual who purchases goods and
services from the market for his/her end-use
• One who consumes goods and services
available in the market
• Example - Tom might purchase a tricycle for
his son or Mike might buy a shirt for himself
• In the above examples, both Tom and Mike
are consumers

3. • Every customer shows inclination towards particular
products and services
• Consumer interest is nothing but willingness of consumers
to purchase products and services as per their taste, need
and of course pocket
• Let us go through the following example:
• Both Maria and Sandra went to the nearby shopping mall
to buy dresses for themselves. The store manager showed
them the best dresses available with him. Maria
immediately purchased two dresses but Sandra returned
home empty handed. The dresses were little too expensive
for Sandra and she preferred simple and subtle designs as
compared to designer wears available at the store.

4. Consumer Behavior
• THE DECISION PROCESS AND PHYSICAL ACTIVITY ENGAGED IN
EVALUATING, ACQUIRING, USING OR DISPOSING OF GOODS
AND SERVICES
• DEALS WITH THE VARIOUS STAGES A CONSUMER GOES
THROUGH BEFORE PURCHASING PRODUCTS OR SERVICES FOR
HIS END USE

5. ……………..
• Why do you think an individual buys a product?
• Need
• Social Status
• Gifting Purpose
• Why do you think an individual does not buy a product?
• No requirement
• Income/Budget/Financial constraints
• Taste
• When do you think consumers purchase products?
• Festive season
• Birthday
• Anniversary
• Marriage or other special occasions

6. Factors
• There are in fact several factors which influence buying decision of a consumer
ranging from psychological, social, and economic and so on
• The study of consumer behavior explains as to:
 Why and why not a consumer buys a product?
 When a consumer buys a product?
 How a consumer buys a product?
• During Christmas, the buying tendencies of consumers increase as compared to
other months. In the same way during Valentines week, individuals are often seen
purchasing gifts for their partners
• Fluctuations in the financial markets and recession decrease the buying capacity of
individuals
• The main catalyst which triggers the buying decision of an individual is need for a
particular product/service
• Consumers purchase products and services as and when need arises

7. Need and Information
• According to Belch and Belch, whenever need arises; a
consumer searches for several information which
would help him in his purchase
• Following are the sources :
 Personal Sources
 Commercial Sources
 Public Sources
 Personal Experience
• Perception also plays an important role in influencing
the buying decision of consumers

8. • Buying decisions of consumers also depend on these factors:
 Messages, advertisements, promotional materials, a consumer goes
through are called selective exposure
• Not all promotional materials and advertisements excite a consumer
• A consumer does not pay attention to everything he sees
• He is interested in only what he wants to see
 Such behaviour is called selective attention
• Consumer interpretation refers to how an individual perceives a particular
message
• A consumer would certainly buy something which appeals him the most
 He would remember the most relevant and meaningful message also
called as selective retention
• He would obviously not remember something which has nothing to do
with his need

9. Economic, symbolic and consumer
culture viewpoints
• We live in a consumer society where the
ownership of goods and consumption of services
pervades every aspect of our existence
• Ever since the global economy began to be
integrated and tightly interconnected,
consumption of goods and services has been
taken to new heights with an accent on owning
goods from economic, symbolic and consumer
culture viewpoints

11. • Theories of consumer behavior are a natural
extension of human behavior theories
• No single theory is unifying
• Each one provides a unique piece of the puzzle in
understanding the psychological processes of people
and their patterns of consumption
• Four theories stand out

12. Marshallian Economics
• Alfred Marshall was an economist who believed that
consumers buy their goods and services based on what
offers the most personal satisfaction
• Some have criticized this theory for being
uninformative
• (It is assumed that people buy what they like, if they
can afford it.) However, the theory has given marketers
several useful hypotheses. Some include:
• If a product’s price is lower, the sales of that product
will be higher

13. …………….
• When there is a product and substitute of that
product, sales of the substitute will be greater if
its price is lower than the price of the original
product
• When the income of consumers is higher, sales of
a product will therefore be higher, provided the
product is not an inferior one
• Ultimately, the Marshallian model offers a way
for marketers to understand the behavior of
consumers when they are making purchases that
require rational consideration

15. Psychoanalytic Theory
• Psychoanalytic theory traces back to Sigmund Freud,
the Austrian founder of psychoanalysis. Although he
himself was not concerned with consumer behavior,
his theories of human behavior were revolutionary. He
believed that humans are not able to fully understand
their own motivations because the psychological
factors that shape them are largely unconscious. A
major part of the unconscious mind is comprised of
strong urges and desires. Since these desires can cause
significant guilt and shame when they surface, people
will repress them.

16. ………………
• According to psychoanalytic theory, consumers
respond to symbolic concerns as much as they
respond to those of economics and function
• Freud’s work implies that external factors such as
age and income cannot fully account for
consumer behavior because motivations lay deep
in the psyche
• Instead, marketing messages that contain an
emotional appeal to consumers’ feelings, hopes,
aspirations and fears are often more effective
than rational appeals

18. Pavlovian Theory
• This theory comes from the work of Russian
psychologist Ivan Pavlov
• In a famous experiment, Pavlov discovered
that if he rang a bell immediately prior to
feeding a dog, he could eventually get the dog
to salivate just by ringing it
• He concluded that much of human behavior
results from conditioned responses.

20. Veblenian Social-Psychological Model
• Economist Thorstein Veblen suggested that
humans are social creatures
• Who conform to the standards of the culture
and subgroups in which they live
• He believed that people’s individual needs and
desires are created and influenced by group
membership

21. ……………..
• Veblen focused his theory on members of
society’s “leisure class,” whom he hypothesized
were influenced by the desire for prestige rather
than utilitarian need fulfillment
• Although critics of Veblen’s theory argue that it
may be overstated in scope, the theory still
proves useful
• It suggests that marketers should understand the
social influences that impact consumers in order
to better comprehend product demand

22. • As noted at several places, the rise of the consumer society
has had both positive and negative effects
• The recent global economic crisis has shown that unfettered
consumption can have serious consequences for the
economic health of nations
• Which when combined with the ecological costs that such
consumption fosters on the world make for a deadly
combination
• Which should serve to alert us to the dangers inherent in the
consumer society

23. ……………………
• Consumer behaviour covers a broad variety of
consumers based on diversity in age, sex, culture,
taste, preference, educational level, income level,
etc.
• Understanding consumer behaviour helps in
identifying
• whom to target, how to target, when to reach
them, and what message is to be given to them
to reach the target audience to buy the product