The document discusses consumer behavior and the factors that influence purchasing decisions. It describes the five stages of the consumer decision process: problem recognition, information search, alternative evaluation, purchase decision, and post-purchase evaluation. Personal factors like age, personality, and psychological factors like motivation, perception, and attitudes shape consumer behavior. Social factors such as family, reference groups, and culture also impact purchasing. Marketers must understand these influences to develop effective strategies that satisfy consumer needs and wants.

1. 1. It might sound strange, but some of the best business folks who I have met know very little about
marketing and advertising. They simply have a knack for making the products that people need.
Some of them are actually pretty un-savvy as consumers themselves, yet somehow get by on
instinct and intellect. The one exception, however, is consumer behaviour. On some level
everyone needs to understand if he want to be able to make and sell the products that consumers
want. You really do not need to know how to launch a marketing campaign, how to create an
image, how to spread word-of-mouth information about your product, or how to spin doctor. You
can hire people to do all of those things for you. But if you do not know how people make basic
buying and selling decisions in their lives, you simply won't ever understand what will sell.
Such fundamentals as brand loyalty, brand identity, and niche marketing are firmly grounded in consumer
behaviour. You can learn a lot of it just by taking some sociology classes, or even by watching your own
family shopping. My first introduction to consumer behaviour was not through any organized business
program, but through going to the grocery store with my mom while growing up. It was interesting to see
what brands she bought. There were a lot of companies that she trusted just because she had always
used, but occasionally things would change. My mom was very easily swayed by things claiming to have
increased health benefits. A new product which was supposedly super fortified would always sway her
away from an old, trusted brand – even one she had been with forever.
Like most consumers, my mom assumed that she was motivated purely by rational concerns. In her case,
she wanted to give her family the healthiest food possible on her budget. Like most people, however,
once companies profiled her consumer behaviour, they could sell their products to her. There are certain
keywords that triggered consumer buying decisions, certain qualities she was looking for in the food, and
even certain fonts, graphics, and colors that she associated with good, wholesome food. The consumer
behavior researchers had more of an understanding of what people like my mom liked than I could
possibly have guessed at the time. Still, even at such a young age, I already understood the basics of
consumer market research.
2. The Consumer Market comprises all individuals and households who buy or acquire goods
and services for personal consumption - for themselves, family, guests, relatives, friends.
Consumer Buying Behaviour refers to the buying behaviour of final consumers (individuals &
households) who buy goods and services for personal consumption. We need to understand
consumer behaviour to answer the question: "How do consumers respond to marketing
efforts the company might use?"
The buying Decision Process consists of five steps: Recognition of Need, Information Search,
Evaluation of Alternatives, Purchase Decision and Post-Purchase Behaviour / Evaluation.
Factors Influencing Consumer Behaviour
Personal Factors
Age
Life cycle stage
Occupation
Economic situation
Personality & Self Concept
Life style identification

2. Psychological Factors
Motivation: a need becomes a motive when it is strong enough to propel us to act, to seek
satisfaction
Perception: process by which we select, organize and interpret information to form a picture
of the world
Learning: changes in behaviour arising from experience
Beliefs: a descriptive thought about something
Attitudes: consistent / enduring favourable / unfavourable evaluations, feelings, and
tendencies towards something
Freud's Theory: A motive (or drive) is a need that is sufficiently pressing to direct the
person to seek satisfaction. Sigmund Freud assumed people are largely unconscious about
the real psychological forces shaping their behaviour... He saw the person as growing up
and repressing many urges - these are never eliminated or under perfect control - they
emerge in dreams, in slips of the tongue, in neurotic and obsessive behaviour or ultimat ely
in psychoses. Freud suggested that a person does not fully understand his or her
motivation.
Frederick Herzberg's two factor theory of satisfiers and dissatisfiers states that the absence
of dissatisfiers is not enough - satisfiers must also be present for products to be purchased.
In other words, marketers should do their best to avoid dissatisfiers, while identifying major
satisfiers or motivators and providing them.
Social Factors
Family is the most important consumer buying unit in any society or market... family
members being the most important / influential primary reference group.
Family of orientation: parents, siblings - strong influence on consumption habits that last a
lifetime.
Family of procreation: spouse, children - where there are issues of dominance and influence
in decision including purchase and consumption.
Reference Groups are groups with whom a person associates and who influence the person's
attitudes, values, behaviour, consumption habits... Membership group are those that have a
direct influence.
Primary group: continuous, informal interaction - family, friends, neighbours, colleagues
Secondary group: religious, professional, trade union...
Aspirational group: those a person hopes to join
Dissociative group: those whose values or behaviour a person rejects
Social Roles & Status: A role consists of activities a person is expected to perform in society.
Each role carries a status. People select products & brands that reflect their role and actual /
desired status in society. Marketers need to be aware of the status symbol potential of
products & brands.
Article Source: http://EzineArticles.com/?expert=Vinay_Menon
3. Introduction
Consumer behaviour
Consumer behaviour is concerned about studying how people purchase, what they
purchase, when they purchase and why they purchase. It blends aspects from psychology,

3. sociology, economics, anthropology and socio-psychology. It tries to comprehend the
purchaser decision making process, equally as an individual and also as a group. Consumer
behaviour studies features of individual consumers for example demographics, behavioural
variables and psychographics in an attempt to comprehend people's needs. It also attempts
to analyse influences on the buyer from groups for instance family, friends, relatives,
reference groups, and the society in general. Schiffman (1993) clearly defines consumer
behaviour as the process and activities people engage in when searching for, selecting,
purchasing, using, evaluating, and disposing of products and services so as to satisfy their
needs and desires.
stageBrief descriptionRelevant inner psychological process
Problem recognitionThe consumer perceives a requirement and becomes motivated to solve
a problemMotivation
Information searchThe consumer look for information required for making a purchase
decisionPerception
Alternative evaluationThe consumer compares a range of brands and productsAttitude
formation
Purchase decisionThe consumer decides the brand to buyIntegration
Post-purchase evaluationThe consumer evaluates their buying decision
Learning
This research paper examines why consumers buy product for consumption, the paper will
examine the main process both internal and external that a consumers undergoes before
making the final decision of buying a product. In addition the paper will also outline the
basic reasons that lead to consumer making their purchase, and also look at factors and
groups that influence consumer decisions when purchasing finally it will review possible
marketing strategy for a marketing to employ and make a conclusion on the basis of the
whole study.
Problem recognition
Problem recognition comes as a result of when there is a disparity between an individual's
desired status and an individual's actual status. Consumers are then motivated to deal with
this difference and consequently they start the buying procedure. Starting places of problem
recognition consist of:
An item is exhausted
Dissatisfaction with an existing product or service
Consumer wants and needs
Associated products/purchases
Marketer-induced
New products
Motivation is the related inner psychological process which is connected with consumer
problem recognition. A motive is a reason that induces action. Schiffman (1993) give a
clarification of motivation on the basis of Maslow's hierarchy of needs. (Loudon, 1988)
Information Search
The moment a consumer has recognised the problem, a consumer may look for information
regarding products and services which can solve the problem. Schiffman (1993) elucidate
that consumers embark on both inner (memory) and also an external exploration.
Information sources include:
1.Personal sources
2.Commercial sources
3.Public sources
4.Personal experience
Perception is the relevant inner psychological process which is linked with information

4. search. Perception can be described as 'the process in which a person receives, selects, put
in order, and interprets the information to generate a meaningful image of an aspect.
(Loudon, 1988)
In the process of selective perception during the stage of description selective disclosure
consumers choose the promotional messages that they will have to expose themselves to.
Selective interest consumers choose which kind of promotional messages they will pay
notice to. While, selective comprehension buyers interpret messages in according to their
beliefs, attitudes, experiences and motives. Lastly, selective retention buyers remember
messages which are more significant or meaningful to them. (Loudon, 1988)
A company will have to think about the implications of this progression to develop an
effective promotional approach. First and foremost, know the sources of information which
are more efficient for the brand or a product and secondly, what sort of communication and
media strategy that will increase the probability that consumers get exposed to our
company message, that the consumer will pay attention to the message, that consumer will
comprehend the message, and recall our message. (Loudon, 1988)
Alternative evaluation
At this moment the consumer contrasts the brands and also products which are in
consumers evoked set. The significant point is how the marketing organisation can increase
the possibility of their brand to ensure is component of the consumer's evoked
(deliberation) set? Consumers assess alternatives in accordance to the functional and also
psychological advantages that they provide. The marketing organisation should understand
what advantages consumers are looking and thus which aspects are most vital in terms of
decision making. (Grunert, 1988)
The relevant inner psychological process which is related with the alternative assessment
phase is formation of attitude Schiffman (1993) observers that attitudes are learned
predispositions towards an item. Attitudes encompass both cognitive and also affective
elements; that is what you think and how you feel about an object.
The multi-attribute attitude concept elucidates how consumers assess alternatives on a
variety of attributes. Schiffman (1993) identify several strategies which can be applied to
influence the procedure (attitude modify strategies). Lastly, there is a number of ways in
which consumers apply criterion in making decisions. Chisnall (1992) also explains that
customers integrate information in different ways and make decisions including the use of
heuristics. Thus marketing organisation ought to know how consumers assess alternatives
on salient or vital attributes in making their buying decision.
Purchase decision
After the alternatives have been assessed, the consumer is now ready to make a buying
decision. At times purchase intent does not lead in an actual purchasing. Marketing
organizations have to facilitate a consumer to take action on their purchase intent. Providing
credit or better payment terms might encourage the customer to make a purchase, or a
sales promotion for instance the opportunity to be given a premium or entering a
competition can provide an enticement to buy at that moment. Integration is the relevant
inner psychological process which is linked with purchase decision.
(Peter, Olson and Grunert, 1999)
Post purchase evaluation
After a consumer has made a purchase and has used the purchased product, he/she will
evaluate his/her purchasing decision. The consumer compares the product's performance
with his/her expectations. When the product purchased does not perform to the expectation

5. of the consumer he/she will experience post purchase discontent. When consumers buy high
involvement products, which are more costly products for which consumers exert high
purchasing efforts in terms of search and time, they generally experience a level of
discomfort following the purchase. This is to say, they undergo some uncertainty that they
undertook the right selection. This condition is termed as cognitive dissonance (thinking
disharmony). Marketing organisations should think about the outcomes of post purchase
behaviour. How they can minimise the possibility of post purchase discontent and/or
cognitive dissonance. According to Peter, Olson and Grunert, (1999) Learning is the relevant
inner psychological process which is related with post purchase assessment.
Characteristics of consumer shopping behaviour
Today, the market is being driven by consumers are more informed and have more money
spend than previous. Customers currently are shopping for quality and luxuries so that they
can enhance their quality of life. With improved purchasing power consumers are turning
way from purchasing material things to experimental consumerism. Thus, customers will
purchase a product because of one or more reasons underlined below. (Loudon, 1988)
Experimenting marketing behaviour
Currently the society has become more affluent, many consumers have got all the material
products and goods they really need. Due to this many consumers who go to shop in the
store are hardly ever motivated by the need to buy anything in the shop. On the contra, the
consumers are purchasing products based on desire to have an experienc e with the product
or a feeling of the product. (Loudon, 1988)
Satisfy need and desire
Consumers have different needs and desires that they wish to satisfy when buying a
product. Many people have different anticipations and dreams when they buy a product.
Thus, a person will buy a product so that the product can satisfy his/her needs and wants.
However, the market offers a lot of different but similar products to the consumer who ends
up not knowing exactly what is perfect for his/her specific needs, it is this availability of
varieties that as seen many consumers buying products that at fail to satisfy their needs
and desires. (Stern, & El-Ansary, 1992)
Purchasing to acquire
Basically, a person may want to acquire or own a product, thus some consumers buys
products because their want to acquire and own a product. Many studies reveal that many
people purchase products so that their can own them, this gives them a sense of power and
achievement. Even though the product may not be that important or useful to the consumer
but having it becomes a priority. (Stern, & El-Ansary, 1992)
Factor that influence consumer buying
Culture:
Cultural aspect is the most basic determinant of an individuals needs and behaviour. While
lower creatures are ruled by instinct, human behaviour is mostly learned. The kid growing
up in a community leans a fundamental set of norms, values, perceptions, inclinations and
behaviours through the process of socialization which involves the family and also other key
institutions. Consequently a kid growing up for example in America is thus exposed to the
values of Achievement and success, efficiency, activity and practicality, material comfort,
progress, , individualism, freedom, humanitarianism, external comfort, and youthfulness.
(Solomon M, et al, 2002)
Social Class:
Practically all human societies display social stratification; this sometimes takes the

6. structure of a caste system as in some Asian countries, where the member of diverse caste
is nurtured for particular roles. More often, stratification takes the appearance of a social
class. Social classes do have a number of characteristics. For example, individuals in each
specific social class seem to behave more similar than individuals from two dissimilar social
classes. Secondly, individuals are recognized as occupying superior or inferior positions in
accordance with their social class. Thirdly, an individuals social class is specified by several
variables, such as job occupation, income, affluence, level of education, value orientation,
etc. Fourthly, persons are able to shift from one social group to another down or up during
their life span. The degree of this mobility differs according to the inflexibility the social
stratification any given society. (Schwartz, 2004)
Social Factors:
Consumers behaviours are also influenced through social factors, for instance consumers
family, reference group and social functions and statuses.
Reference Group: An individuals behaviour is powerfully influenced by numerous group .An
individuals reference group are groups which have a direct or indirect influence on the
individuals attitudes or behaviour
Family Group: Members of the purchasers family can have a powerful influence on the
purchasers behaviour. We can differentiate two families in the purchasers life. The
orientation family consists of individuals parents. From parents individuals acquires
orientation towards religious, economics and politics, and a sense of self worth.
For the case of costly products and/ or services, husbands and wives get into a more mutual
decision making. The underlined products and services are examples of mutual choices:
Husband dominant: automobiles, life insurance, television
Wife dominant: washing machines, kitchenware, carpeting,
Equal: Housing, Living room furniture, vacation, outside entertainment. (Schwartz, 2004)
Conclusion
Consumer behaviour is basically concerned about studying how people purchase, what they
purchase, when they purchase and why they purchase. People undergo five main stages
before and after making a purchase these stages are important aspects for any organization
to analyse and be able to successful attract consumers to their products and also satisfy
their expectations. As Grunert (1988) points out it is clear that people will buy a product for
various reasons such as to experiment, acquire or satisfy their needs or wants. When
making such purchases a customer is highly influenced by his cultural aspects, class, and
family and reference group. Thus it is important and vital that companies studies different
aspects of consumer behaviour to formulate successful marketing strategies
Read more: http://www.articlesnatch.com/Article/Consumer-
Behaviour/997433#ixzz12RtIjWsX
Under Creative Commons License: Attribution No Derivatives