This document discusses consumer behavior and the factors that influence consumer decision making. It outlines several models of consumer behavior, including economic, psychological, learning, input-output, and sociological models. It also covers organizational buying behavior, the characteristics of business markets, types of buying situations, and the organizational buying process. The key stages in consumer decision making are identified as need recognition, information search, evaluating alternatives, purchase decision, and post-purchase behavior. Cultural, social, personal, and psychological factors all shape consumer choices.

1. CONSUMER BEHAVIOUR
UNIT - V

2. CONSUMER BEHAVIOUR
Consumer behavior is the reaction of individuals in
obtaining, using goods & services of a particular type.


“It is the process where by individuals decide
whether, when, where, how, from & whom to purchase
goods & services”
- C.G. WALTER & G.W. PAUL
“Buyer behavior is all psychological, social & physical
behavior of potential customers as they become aware of
evaluate, purchase, consume & tell other people about the
products & services”.
- WEBSTER

3. FACTORS INFLUENCING CONSUMER DECISION /
BEHAVIOUR:
 CULTURAL FACTORS:
Sub – cultures, social class – caste, religion, languages
etc….
 SOCIAL FACTORS:
Reference groups, family, role and status {Buying roles –
initiators, decider, influencer, purchaser, consumer.}
 PERSONAL FACTORS:
The personal factors are age, life cycle stages,
occupation, economic situation [ income], life style, personality,
self – concept.
 PSYCHOLOGICAL FACTORS:
Motivation, perception, learning, beliefs & attitudes.

4. STAGES/ PROCESS/ DECISION MAKING OF CONSUMER
BEHAVIOUR:
NEED RECOGNITION
INFORMATION SEARCH
EVALUATING OF
ALTERNATIVES
[SCREENING]
PURCHASE DECISION
POST PURCHASE
BEHAVIOUR

5. MODELS OF CONSUMER BEHAVIOUR
I.
ECONOMIC MODEL { MARSHILLIAN MODEL }:
a. Price effect
b. Income effect
c. Substitution effect [ Cross demand ]
d. Variable proportions – Marginal utility

6. II. PSYCHOLOGICAL MODEL: [ MOTIVATION ]
{ABHRAHAM HEROLD} – MASLOWIAN/ NEED
HIERARCHY / MOTIVATION MODEL OF MASLOWIAN.
Higher level
needs
SelfActualization
Self- esteem
needs
Social needs
Lower / basic
needs
Safety / security needs
Physiological / physical needs

7. III. LEARNING / PAVLOVIAN MODEL :
•
•
Drive, drivers, triggering cues.
Non – triggering cues.
IV. INPUT – PROCESS – OUTPUT MODEL :
•
•
•
•
•
Need recognition.
Product awareness.
Evaluation.
Intention.
Post purchase behavior.

8. V. BUYER’S BLACK BOX MODEL :
MARKETING
STIMULI
Product
Price
Promotion
Place
OTHER STIMULI
Economic
Cultural
Technological
Political
BUYER’S BLACK BOX
Characteristics
Decision
• Cultural
Problem
recognition
• Social
-
BUYER’S
RESPONSE
•Product choice
•Brand choice
•Dealer choice
Information
•Purchase timing
research
•Personal
Evaluation
• Psychological
purchase
behavior
•Purchase
amount
Decision
post -

9. VI. SOCIOLOGICAL MODEL OF CONSUMER BEHAVIOUR:
This model is concerned with the society. A consumer is
a part of the society & he may be a member of many groups
in a society. His buying behavior is influenced by these
groups. By primary groups of family, friends & close
associates influence a lot on his buying behavior.
A consumer may be a member of political party.
Where his dress norms are different. Thus, he has to buy
things that confirmed to his life styles in different groups.

10. FRUEDIAN MODEL OF CONSUMER BEHAVIOUR –
SIGMUND FRUED
Psycho – analytical model:
ID – Which generates desire.
EGO – Ego gives the ways to fulfill your desire.
SUPER EGO – It will tell you what is good & what is bad for a
human being.

11. ORGANISATIONAL BUYING BEHAVIOUR:
TYPES OF ORGANISATIONAL BUYER:
a. Industrial markets – To
manufacture, production, assemble.
b. Resellers markets – They buy to sell to somebody.
c. Government markets.
 ENTRYPORT TRADE – Trade between one country to
another
country.

12. CHARACTERISTICS OF BUSINESS MARKETS:







Very few buyers
Larger buyers
Geographically concentrated buyers
Derived demand
Inelastic demand
Fluctuating demand
Professional purchasing

13. TYPES OF BUYING SITUATIONS:
• Straight re - buy
• Modified re – buy
• New task
FACTORS INFLUENCING ORGANISATIONAL BUYER:
 Environmental factors
 Organizational factors
 Interpersonal factors
 Personal / Individual factors

14. ORGANIZATIONAL BUYING PROCESS:
Problem recognition / Need recognition
 General need recognition
 Product specification
 Suppliers search
 Proposal solicitation
 Order routine – specification
 Performance review
