CONSUMER BEHAVIOR

DIMENSIONS OF CONSUMER
       BEHAVIOR
CONSUMER BEHAVIOR
 Consumer behavior is the study of how
 people buy, what they buy, when they buy
 and why they buy. It attempts to understand
 the buyer decision making process, both
 individually and in groups. It studies
 characteristics of individual consumers such
 as demographics, psychographics, and
 behavioural variables in an attempt to
 understand people's wants.
STAGES OF THE CONSUMER
        BUYING PROCESS

Consumer buying decision process includes
six stages. They are:
 Problem Recognition
 Information Search
 Evaluation of alternatives
 Purchase Decision
 Purchase
 Post-Purchase Evaluation
1. PROBLEM RECOGNITION

      Difference between the desired state and the
    actual condition.

Example:
   By seeing a commercial for a new pair of shoes,
   stimulates your recognition that you need a new
   pair of shoes.
 Hunger stimulates your need to eat.
2. INFORMATION SEARCH
 Internal Search:
        --- Memory
 External Search:
         --- Friends and Relatives
    A successful information search leaves a buyer with
  possible alternatives, the evoked set.

Example:
    Hungry, want to go out and eat, evoked set is
       Chinese food
       Indian food
       Burger king
3. EVALUATION OF ALTERNATIVES

 Need to establish criteria for evaluation,
 features the buyer wants or does not want.
 Rank/weight alternatives.


Example:
   If you want to eat something spicy, then
 Indian food gets the highest rank etc…
4. PURCHASE DECISION        :

    Choose buying alternative, includes
product, package, store, method of
purchase etc.

   5. PURCHASE :
    May differ from decision, time lapse
between purchase decision and the actual
purchase, product availability.
6. POST-PURCHASE EVALUATION               :

 It is the outcome Satisfaction or
Dissatisfaction. This can be reduced by
warranties, after sales communication etc.

Example:
 After eating an Indian meal, you may
think that really you wanted a Chinese
meal instead.
TYPES OF CONSUMER BUYING
      BEHAVIOR :

There are four types of consumer buying
 behavior, they are :
 Routine Response/Programmed Behavior
 Limited Decision Making
 Extensive Decision Making
 Impulse buying
1. ROUTINE
          RESPONSE/PROGRAMME
          D BEHAVIOR

   Buying low involvement, frequently
  purchased, low cost items.

Examples :
    Soft drinks, snack foods, milk etc.
2. LIMITED DECISION
           MAKING
 Buying product occasionally.
 That is when you need to obtain
  information about unfamiliar brand in a
  familiar product category.

Example:
 Clothes--know product class but not the
 brand.
3.EXTENSIVE DECISION
       MAKING :
       Complex high involvement,
 unfamiliar, expensive and infrequently
 bought products.
       Spend a lot of time seeking
 information and deciding. High degree of
 risk.

Example:
  Cars, homes, computers, education.
4. IMPULSE BUYING :

No conscious planning.
      The purchase of the same product does not
 always elicit the same Buying Behavior. Product
 can shift from one category to the next.
 For example:
 Going out for dinner for one person may be
 extensive decision making (for someone that does
 not go out often at all), but limited decision
 making for someone else. The reason for the
 dinner, whether it is an anniversary celebration, or
 a meal with a couple of friends will also determine
 the extent of the decision making.

Consumer behaviour

  • 1.
  • 2.
    CONSUMER BEHAVIOR  Consumerbehavior is the study of how people buy, what they buy, when they buy and why they buy. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants.
  • 3.
    STAGES OF THECONSUMER BUYING PROCESS Consumer buying decision process includes six stages. They are:  Problem Recognition  Information Search  Evaluation of alternatives  Purchase Decision  Purchase  Post-Purchase Evaluation
  • 4.
    1. PROBLEM RECOGNITION  Difference between the desired state and the actual condition. Example:  By seeing a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes.  Hunger stimulates your need to eat.
  • 5.
    2. INFORMATION SEARCH Internal Search: --- Memory  External Search: --- Friends and Relatives A successful information search leaves a buyer with possible alternatives, the evoked set. Example: Hungry, want to go out and eat, evoked set is  Chinese food  Indian food  Burger king
  • 6.
    3. EVALUATION OFALTERNATIVES  Need to establish criteria for evaluation, features the buyer wants or does not want.  Rank/weight alternatives. Example: If you want to eat something spicy, then Indian food gets the highest rank etc…
  • 7.
    4. PURCHASE DECISION : Choose buying alternative, includes product, package, store, method of purchase etc. 5. PURCHASE : May differ from decision, time lapse between purchase decision and the actual purchase, product availability.
  • 8.
    6. POST-PURCHASE EVALUATION : It is the outcome Satisfaction or Dissatisfaction. This can be reduced by warranties, after sales communication etc. Example: After eating an Indian meal, you may think that really you wanted a Chinese meal instead.
  • 9.
    TYPES OF CONSUMERBUYING BEHAVIOR : There are four types of consumer buying behavior, they are :  Routine Response/Programmed Behavior  Limited Decision Making  Extensive Decision Making  Impulse buying
  • 10.
    1. ROUTINE RESPONSE/PROGRAMME D BEHAVIOR Buying low involvement, frequently purchased, low cost items. Examples : Soft drinks, snack foods, milk etc.
  • 11.
    2. LIMITED DECISION MAKING  Buying product occasionally.  That is when you need to obtain information about unfamiliar brand in a familiar product category. Example: Clothes--know product class but not the brand.
  • 12.
    3.EXTENSIVE DECISION MAKING : Complex high involvement, unfamiliar, expensive and infrequently bought products. Spend a lot of time seeking information and deciding. High degree of risk. Example: Cars, homes, computers, education.
  • 13.
    4. IMPULSE BUYING: No conscious planning. The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.