This document discusses consumer behavior and the factors that influence consumer purchasing decisions. It describes: 1. The five stages of the consumer buying process - problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. 2. The key factors that influence consumer behavior, including cultural factors, social factors, personal factors, and psychological factors. 3. Different consumer buying situations such as complex buying behavior, dissonance reducing behavior, variety seeking behavior, and habitual buying behavior.

1. CONSUMER BEHAVIOUR
.

2. The most importantthingis to,
forecast where customers are
moving,and be in front of
them.
-Philip
Kotler.-

3.  Consumers are individuals who buy products or services for personal consumption or
else we can say that a customer is anyone who receives a product – either a good or a
service from an organisation.
Identifying a Consumer.
• Who is a consumer ?
 To Philip Kotler, Consumer buying behaviour refers to,
The buying behaviour of final consumer individuals
and households who buy goods and services for
personal consumption.

4.  A consumer’s mind is called as a Black Box. WHY ?
Stimulus.
• Company controlled
product, price,
advertising, sales
promotion, display,
distribution.
• Social word of mouth,
reference group.
Consumer
mind
[ BLACK BOX ]
Response
Buy
Not to buy
Identifying a Consumer.

5.  Conceptualizing a
particular consumer’s
behavior is really
HARD.
In conclusion,

6. Types of Buyer Behaviour.
• Consumer market.
This can be divided in to 4 groups.
 Convenience Products
 Shopping Products
 Specialty Products
 Unsought Products

7.  For any type of buyers, an understanding of customers can be gained only by
answering these questions as these are the most intractable aspects of buyer
behavior.
1. Who is important in the buying behavior?
2. How do they buy?
3. What are their choice criteria?
4. Where do they buy?
5. When do they buy?
 Answers to these questions can be provided by personal contact with
customers and yes, most importantly by marketing research.
Dimensions of Buyer Behaviour.

8.  If these dimensions are not touched which means that ultimately that the
particular organization has not understand the buyer.
 So how can that organization create value and capture value?
 Let’s see what usually happens when organizations failed in their attempt of
understanding the customer.
 The first thing that would happen would be the flopping of the product or
sometimes even the brand can flop as well.
 In these cases, the grand success of the parent company wasn’t enough to
save the products.
Dimensions of Buyer Behaviour.

9. Examples for flopped products due to
customer rejection.
Colgate Kitchen
Entrees.
McDonald’s The Hula
Burger.

10. Examples for flopped products due to
customer rejection.
McDonald’s Arch Deluxe
Burger.
New Coke.

11.  These five stages are a good framework to evaluate customers' buying decision process.
 However, it is not necessary that customers get through every stage, nor is it necessary
that they proceed in any particular order.
 For example, if a customer feels the urge to buy chocolate, he or she might go straight to
the purchase decision stage, skipping information search and evaluation.
 This describes the process your customer goes through before they buy your product.
 Understanding your customer’s buying process is not only very important for your
Salespeople, it will also enable you to align your sales strategy accordingly.
Consumer Buying Process.

12. Purchase
Decision.
Information
Search.
Problem
Recognition.
Post-Purchase
Behaviour.
Evaluation of
Alternatives.
Consumer Buying Process.

13. 1. Problem recognition.
EXAMPLE
 First and the most important step in buying
behavior process.
 Buying process is initiated when,
• The consumer identifies a problem or a need that
has to be fulfilled. / Dissatisfaction with the
current product or service.
• Changing life styles. / Outdating of the products.
As an undergraduate who just enrolled for a
degree, so he needs portability in the
computer to work at home as well as at the
college.
This is where he / she recognized he / she
has a problem which can be solved with a
lap top.

14. 2. Information search.
 This is where the consumer starts searching information
about the products that can satisfy his satisfied needs.
 The types of sources that can be used are,
• Personal sources - family members / friends.
• Commercial sources – advertising / sales person /
displays.
• Public sources - mass media / customer rating
organization.
• Experiential sources - from own or others
experiences of using the product.
EXAMPLE
Undergraduate, who wanted to
buy a laptop would gather
information about laptop
brands such as,
HP / Acer / Dell /Apple.

15. 3. Evaluation of alternatives.
 This is where the customer evaluate products based on chosen
criteria such as performance, durability, warranty, price, after
sales services on competitive basis.
 Factors-
 Customer’s attitudes.
 Customer’s involvement.
 Benefit of the product.
 Cost.
 Satisfaction.
Undergraduate who
gathered information
about laptop brands will
now evaluate the
product in terms of price,
features, warranty,
durability etc.
EXAMPLE

16. 4. Purchase decision.
 Now that the consumer has evaluated the
different solutions and products available for
respond to his need, he will be able to choose
the product or brand that seems most
appropriate to his needs.
EXAMPLE
After evaluation of many
brands of laptops the
undergraduate decides to
purchase a HP laptop due
to the high battery life.

17. 5. Post purchase behavior.
 This is an opinion that will influence his future
decisions and buying behavior.
EXAMPLE
Negative post purchase behavior.
• If the undergraduate who purchased HP
is not happy, he will persuade his friends
not to buy HP because his experience
about HP is negative.
EXAMPLE
Positive post purchase behavior.
• If the undergraduate is happy with
the performance of HP laptop he
will recommend his fellow students
to purchase a HP and will be brand
loyal by purchasing more HP
products.

18.  Customers often go through the feelings of post-purchase psychological tension or
anxiety. Questions include: "Have I made the right decision?", "Is it a good choice?"
etc. This is called as cognitive dissonance.
 Dissonance is likely to increase in 4 ways.
With the expense of purchase.
When the decision is difficult. [ Eg: many alternatives / many choice criteria and
each alternative offering benefits not available with the others ]
When the decision is irrevocable.
When the purchaser has a tendency to experience anxiety.
Cognitive Dissonance.

19.  These are the various attributes and benefits a consumer uses when evaluating
products and services.
 They provide the grounds for deciding to purchase one brand or another. Different
members of the buying center may use different choice criteria.
Eg: When choosing dresses a child may use the criteria of self-image
whereas the parent may use the price.
Choice Criteria.

20.  Technical criteria –
Eg: reliability / durability / performance/ style / comfort / taste.
 Economic criteria –
Eg: price / value for money / running costs/ life cycle costs.
 Personal criteria –
Eg: self-image / risk reduction / emotions / ethics.
 Social criteria -
Eg: status / social belongings / convention / fashion.
Types of Choice Criteria.

21. Consumer Buying Situations.

22. • Complex buying behavior –
 Consumer buying behavior in situations characterized by high consumer involvement in
a purchase where great time and effort is made and there are significant perceived
differences among brands.
 These products are typically expensive and considerable amount of time is spent to
look for information.
Eg- Houses / Car
• Dissonance reducing buying behavior –
 Consumer buying behavior in situations characterized by high consumer involvement in
a purchase where great time and effort is made but few perceived differences among
brands.
 Consumers categorize the difference in accordance to price range.
Eg- Furniture
Consumer Buying Situations.

23. • Variety seeking buying behavior –
 Consumer buying behavior in situations characterized by low consumer
involvement where it is more of a reaction with no learning process and significant
perceived brand differences.
Eg- A consumers changes preference from DOVE shower gel to NIVEA
shower gel for although satisfied with the current brand. [ DOVE ]
• Habitual buying behavior –
 Consumer buying behavior in situations characterized by low consumer
involvement where it is more of a reaction with no learning process but few
significant perceived brand differences.
Eg- Food and Drinks.
Consumer Buying Situations.

24.  Basically the factors which influence the customers to buy a product or a
service can be divided into 4 categories.
The Influences on Consumer
Buying Behaviour.
 Cultural factors.
 Social factors.
 Personal factors.
 Psychological factors.

25.  Culture refers to the shared beliefs, customs, behaviors, and attitudes that
characterize a society.
 Culture is a handed down way of life and is often considered the broadest
influence on a consumer’s behavior.
 Your culture prescribes the way in which you should live and has a huge effect
on the things you purchase.
• Cultural factors.
• Eg: In Afghanistan ladies generally
wear burqas, which cover them
completely from head to toe.
• Similarly, in Saudi Arabia, ladies must
wear what’s called an abaya, a long
black garment.

26.  This social class is measured and related to occupation, income, education
and wealth.
 Seven classes of US consumers along with the types of car brands they might
buy.
• Social Class.
Upper-Upper Class
People with inherited wealth and aristocratic
names.
Lower-Upper Class
Professionals such as CEOs, doctors, and
lawyers.
Upper-Middle Class
College graduates and managers.
Middle Class
White collar workers.
Working Class
Blue collar workers.
Lowest Class
People on welfare.
Lower Class
People who are working but not on welfare.

27.  Members of a particular society have an influence on consumer’s decisions.
 Eg: Specially when buying automobiles, televisions and other electronic items
these parties act as a pint of reference for consumers in making their decisions.
They can influence the particular person in his/her buying patterns, ways and
methods.
• Social factors.

28. Age –
 People’s buying behaviour completely changes when their age changes. Because different
products are needed at different ages these purchasing decisions are converted as well.
Eg: If we take the “need of food”, this is basically what people find for
satisfy their hunger in different ages.
Baby -----------> baby food
Teenagers -----------> burgers, pizzas
Adults -----------> more healthy food
Gender-
 This is another factor which influences consumer behaviour process. basically female and
male needs differ most of the times.
Eg: Males spend a less time when shopping, while females spend a lot of time for
shopping. So their shopping practices highly differ.
• Personal factors.

29. Occupation -
 Occupation may also affect customers purchasing behaviours.
• Eg: Shoe manufacturer will design different types of shoes for office workers and
construction sites workers.
Economic situation -
 Recession is one of the economic indicator that will affect c.b.b.
• Eg: These are some ways consumers have reacted to a harsher economic reality.
 Downsizing
 Discounting
 Inexpensive treating
 Delaying

30. Life style –
 This refers to pattern of living as expressed in a person’s activities, interests and
opinions.
Eg: On-the-go drinks, such as bottled water and take away coffee, and on-the-go food,
such as cereal based breakfast snack bars, have found favour among time pressured
consumers.

31. Motivation -
 These are the factors which motivates the consumer to purchase the product.
Motives are driving forces that cause a person to take action to satisfy needs. Motives
can be grouped into 5 categories a proposed by Maslow.
 Physiological – food and drinks
 Safety – health
 Social – associating with friends
 Esteem – high reputation
 Self actualization
• Eg: A consumer who is driven by the esteem and status motive may use self image
as a key choice criteria when considering the purchase of a car.
• Psychological factors.

32.  Decision making can also be made by a group such as a household. In such
situations a number of individuals may interact to influence the purchase
decision.
 Eg 1: In a toy purchase, a girl may be the initiator and attempt to influence her
parents who are the deciders. The girl may be influenced by her sister to
buy a different brand. The buyer may be one of the parents, who visits
the store to purchase. Finally the both children may be users of the toy.
 We can identify 5 main roles,
Consumer Buying Roles.
 Initiator.
 Influencer.
 Decider.
 Buyer.
 User.

33.  INITIATOR.
The initiator is the player who recognizes a problem and tries to find a solution to
it. This is the most important person in the decision making process.
 INFLUENCER.
They can exert influence on the purchasing process by setting pre-conditions. They
can be found at all levels of the organization.
 DECIDER.
The decider is the player who is ultimately responsible for choosing the supplier
and as a result takes up an important position within the decision making process.
 BUYER.
The buyer is the actual negotiator with the supplier. The buyer negotiates about
contract terms and eventually places the order. The buyer takes up one of the
most important roles within the decision making process.
 USER.
These are the people who are actually going to work with the purchased goods or
services and they exert influence on the specifications. Both customers and
employees may take on this role.

34.  Ladies Dress –
It is likely that four
roles are played by the
same lady, she
initiates, decides, buys
and use the product,
perhaps with some
influence from a
friend.
Examples for Consumer
Buying Roles.

35.  Emotion is a necessary ingredient to almost all decisions. When we are confronted with a
decision, emotions from previous, related experiences affix values to the options we are
considering.
 These emotions create preferences which lead to our decision. The influential role of
emotion in consumer behaviour is well documented:
 When evaluating brands, consumers primarily use emotions rather than information.
 Emotional response to an ad has far greater influence on a consumer’s reported
intent to buy a product than does the ad’s content.
 Studies show that positive emotions toward a brand have far greater influence on
consumer loyalty than trust and other judgments which are based on a brand’s
attributes.
How do emotions affect purchases?

36.  Emotions are the primary reason why consumers prefer brand name products. Why do
we decide to pay more for brand name products?
 A brand is nothing more than a mental representation of a product in the consumer’s
mind. The richer the emotional content of a brand’s mental representation, the more
likely the consumer will be a loyal user.

37.  For retailers, shopping is the art
of persuasion. Though there are
many factors that influence how
and what consumers buy.
However, a great deal is decided
by visual cues, the strongest and
most persuasive being color.
How do
colours
affect
purchases ?