This document discusses consumer behavior and the factors that influence it. It defines consumer behavior as how individuals and groups select, purchase, use, and dispose of goods and services. It then outlines the main factors that affect consumer behavior: cultural factors like culture and subculture; social factors like family, roles and reference groups; psychological factors like motivation, perception, learning and attitudes; and personal factors like age, occupation and lifestyle. Finally, it describes the consumer decision making process, from problem recognition to post-purchase evaluation, and the successive sets involved in choosing between brands.

1. Dr. RAJENDRA PRASAD CENTRAL AGRICULTURAL UNIVERSITY
MBA (AGRIBUSINESS) PROGRAMME
Pusa, Bihar
MARKETING MANAGEMENT

2. CONSUMER
BEHAVIOUR
PRESENTED BY
VISHAL KUMAR

3. CONTENTS
 INTRODUCTION
 FACTORS AFFECTING THE CONSUMERS BEHAVIOUR
 BUYING DECISION PROCESS
 SUCCESSIVE SETS INVOLVED IN CONSUMER DECISION MAKING
 CONCLUSION
 REFERENCES

4. INTRODUCTION
What is consumer behavior?
 Consumer behavior is the study of how individuals, groups
and organizations select, buy, use, and dispose of goods,
services and ideas to satisfy their needs and wants.
OR
 It refers to the actions of the consumers in the marketplace
and the underlying motives for those actions.

5. Factors affecting the consumer behavior
Consumer
behavior
CULTURE
SOCIAL
PSYCHOLOGICAL
PERSONAL

7. CULTURAL
FACTORS• Buyer’s culture
• Buyer’s subculture
• Buyer’s social class
 Culture is the learned values, perceptions, wants, and behavior from
family and other important institutions
 Subcultures are groups of people within a culture with shared value
systems based on common life experiences and situations.
• Chinese
• Indians
• Malays
• Eurasians

8.  Social classes and status are society’s relatively permanent and
ordered divisions whose members share similar values,
interests, and behaviors.
• Measured by a combination of occupation, income,
education, wealth, and other variables
The major social classes:
• Upper class
• Middle class
• Working class
• Lower class

9. SOCIAL
FACTORSGroups
 Membership groups have a direct influence and to which a person belongs.
 Aspirational groups are groups to which an individual wishes to belong.
 Reference groups are groups that form a comparison or reference in forming
attitudes or behavior.
• Opinion leaders are people within a reference group with special skills,
knowledge, personality, or other characteristics that can exert social
influence on others.
• Buzz marketing enlists opinion leaders to spread the word.
• Social networking is a new form of buzz marketing
• MySpace.com
• Facebook.com

10. CONT……
• Family is the most important consumer-buying organization in society.
• Social roles and status are the groups, family, clubs, and organizations
to which a person belongs that can define role and social status.

11. PERSONAL
FACTORS
 Personal characteristics
 Age and life-cycle stage
 Occupation
 Economic situation
 Lifestyle
 Personality and self-concept

12. PSYCHOLOGICAL
FACTORS
PSYCHOLOGICAL
FACTORS
BELIEFS,
ANDATTITUDEY
MOTIVATION
PERCEPTION
LEARNING

13. Motivation
• A motive is a need that is sufficiently pressing to direct the person to seek
satisfaction.
• Motivation research refers to qualitative research designed to probe
consumers’ hidden, subconscious motivations.
Perception
• Perception is the process by which people select, organize, and interpret
information to form a meaningful picture of the world from three perceptual
processes:
• Selective attention
• Selective distortion
• Selective retention

14. • Selective attention is the tendency for people to screen out most of the
information to which they are exposed.
• Selective distortion is the tendency for people to interpret information in a way
that will support what they already believe.
• Selective retention is the tendency to remember good points made about a
brand they favor and to forget good points about competing brands.
Learning
Learning is the changes in an individual’s behavior arising from experience and
occurs through interplay of:
• Drives
• Stimuli
• Cues
• Responses
• Reinforcement

15. Beliefs and Attitudes
Attitudes describe a person’s relatively consistent evaluations,
feelings, and tendencies toward an object or idea.

16. BUYING DECISION
PROCESS

17. PROBLEM RECOGNISATION
Problem recognition results when a consumer recognizes a substantial
difference between what is perceived as the actual product and the
product he/she wants to purchase, which directly impacts the decision
making of the customer in the buying process.
INFORMATON SEARCH
Information search is the amount of information needed in the buying
process.
 Personal sources
 Commercial sources
 Public sources
 Experimental sources

18. EVALUATION OF ALTERNATIVES
 Evaluation of alternatives is how the consumer processes
information to arrive at brand choices.

19. Purchase Decision
• The purchase decision is the act by the consumer to buy the most preferred
brand.
• The purchase decision can be affected by:
• Attitudes of others
• Unexpected situational factors
Post-Purchase Decision
• The post-purchase decision is the satisfaction or dissatisfaction the consumer
feels about the purchase.
• Relationship between:
• Consumer’s expectations
• Product’s perceived performance

20. Total set→ awareness set→ consideration set→ choice set→ decision
Apple
Dell
Hewlett
Toshiba
Compaq
Acer
Apple
Dell
Hewlett
Toshiba
Compaq
Apple
DellApple
Dell
Toshiba
?
Successive sets involved in consumer decision making

21. CONCLUSION
 By studying the process consumer go through to make a purchase
decision, marketers can identify and reach their target market, giving
them an edge on where to advertise, how to advertise, and most
importantly to whom to advertise. They meticulously collect, analyse,
store and utilize consumers behavior patterns and idiosyncrasies to
make decision, using past behavior to predict future behavior.

22. REFEREN
CES
 A TEXT BOOK OF MARKETING MANAGEMENT
by Philip Kotler
 www.google .com