Consumer behavior is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption-related items. It looks at numerous factors that influence purchasing decisions including demographic, economic, social, cultural, psychological, and personal factors. The consumer decision process involves need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Studying consumer behavior is important for consumers, scientists, and producers to adapt to market changes and better understand purchasing motivations.

1. CONSUMER BEHAVIOR
Presented By:
Manoj Patel
Asst. Professor
JHUNJHUNWALA BUSINESS SCHOOL

2. CONTENTS
 Introduction
 Definition
 Applications of consumer behavior
-marketing strategy
-public policy
-social marketing
-better consumer

3. o Sales promotion techniques influencing consumer
behavior
o Factors influencing consumer behavior
-Demographic factors
-economic factors
-Social factors
-Cultural factors
-psychological factors
o Consumer purchase decision process

4.  Models of consumer decision process:
-need/problem recognition
-information search
-evaluation of information
-purchase decision
-post purchase behavior
 Consumer’s response towards malpractices in the market
 Importance of studying consumer behavior
 Some case studies
 Conclusion

5. INTRODUCTION
 Consumers- The ultimate users of goods &
services.
 Consumer behavior- Buying behavior of
ultimate users.

6. DEFINITION
“The study of individuals, groups, or orgs. & the process they
use to select, secure, use & dispose of products, services,
experiences or ideas to satisfy needs & impacts that these
processes have on the consumer & society”.

7. APPLICATION OF
CONSUMER BEHAVIOR
1. Marketing strategy
sales promotion, advertisements,etc
For eg; afternoon snacks advertisement.
2. Social marketing
To get consumers’ attention on product- for e.g. by
graphic pictures

8. 3. Public policy
Involves getting ideas across to
consumers rather than selling something.
4. Better consumers
Studying consumer behavior sensitize
consumers to be vigilant consumer.

9. 1. Free samples
2. Point of
purchase
display
3.Sales
4.Coupons
SALES PROMOTION TECHNIQUES
INFLUENCING CONSUMER BEHAVIOR

10. 5.Loyal reward offer
6.Scratch & win
offer
7.Money back offer
8.Contest & sweepstakes

11. 9.Price pack deals:
i. Bonus pack, ii. Band pack
10.Promotional periods

12. FACTORS INFLUENCING CONSUMER
BEHAVIOR
1. Demographic factors
 Population size
(resource depletion,increase demand)
 Birth & death rates
 Working class

13. 2.ECONOMIC FACTORS
o Income
o Family life cycle:
i.
Contd.

14. o Liquid assets
o Credit facilities
o Expenditure pattern & savings

15. 3. Social factors
 Reference groups
-Diffusion process
Contd.

16.  Family- Roles of members
 Social status
4. Cultural factors
 Main culture
 Sub-culture

17. 5. PSYCHOLOGICAL FACTORS
Motivation

18. Perception
Learning
Belief & Attitude
Cognitive dissonance
Fig- Attitude

19. 6. PERSONAL FACTORS
 Age
 Occupation
 Lifestyle
 Personality
 Economic situation
---

20. In broad term factors can be classified in 2 categories:
-Internal factors:
-External factors:

21. GENERAL FACTORS INFLUENCING:
FOOD ITEMS
 Price
 Taste / choice
 Availability
 Sales promotion
 Peer group
 Food habit
 Time taken for preparation
 Attractiveness of packages
 Advertisements
 Buying habits
 Health status
 Label
 Brand name

22. CLOTHING ITEMS
 Comfort
 Choice
 Colour
 Style
 Fashion
 Price
 Availability
 Texture
Contd.

23.  Clothing budget
 Climate
 Occassion
 Ease of care
 Quality
 Reputation of the brand
 Advertisement
 Profession
 Habit

24. CONSUMER DURABLE GOODS
Colour
Price
Comfort
Quality
Need
Budget
Fashion
Sales promotion
Advertisement
Peer group
Social recognition

25. Price
Suitability
Availability
Colour
Advertisement
Packaging
Brand
Peer group
Fashion
Place of
manufacture
Ingrdients of the
product
Social recognition
Sales promotion
COSMETIC PRODUCTS

26. 1. Need recognition/ problem recognition/
recognition of an unsatisfied need
2. Information searching
3. Evaluation of alternatives
4. Purchase decision
5. Post- purchase behavior
Consumer purchase decision process

27. 5 STAGE MODEL OF BUYING PROCESS

28. 1.Need recognition
Need
Recognition
Memory
EXTERNALTAL
INFLUENCES
•Culture
•Social class
•Personal influences
•Family
•situation
INTERNAL
INFLUENCES
•Consumer resources
•Motivation & involvement
•Knowledge
•Attitudes
•Personality, values
& lifestyles

29. MODEL OF SEARCHING
INFORMATION
Need
recognition
search
External
search
Internal
search
Memory
ENVIRONMENTAL
INFLUENCES
•Culture
•Social class personal
influences
•Family
•situation
INDIVIDUAL
DIFFERENCES
•Consumer resources
•Motivation & involvement
•Knowledge
•Attitudes
•Personality, values,&
lifestyle
Need
recognition
search
External
search
Internal
search
Memory
EXTERNAL
INFLUENCES
•Culture
•Social class
•personal influences
•Family
•situation
INTERNAL
INFLUENCES
•Consumer resources
•Motivation & involvement
•Knowledge
•Attitudes
•Personality, values,&
lifestyle

30. 3. Evaluation of information
Need
recognition
search
Memory
I2
I3
I4
I5
I1
EXTERNAL
INFLUENCES
•Culture
•Social class personal
influences
•Family
•situation
INTERNAL
INFLUENCES
•Consumer resources
•Motivation & involveme
•Knowledge
•Attitudes
•Personality, values,&
lifestyle
Alternative
evaluation
I

31. 4. Purchase decision
5. Post purchase behavior
Purchase
Outcome
Dissatisfaction satisfaction
Alternative
evaluation

32. CONSUMER RESPONSE TOWARDS
MALPRACTICES IN THE MARKET
Some common response towards malpractice
in the market are:
Purchasing without showing any reaction
Giving less price
Doesnot buy the product
Warning the shopkeeper
contd

33. Returning product to the
shopkeeper
Asking money back
Reporting at consumer
forum/appropriate authority

34. CONSUMER BEHAVIOR IS IMPORTANT
FOR THE THREE PERSONS:
1. CONSUMER
2. SCIENTISTS
3. PRODUCER
CONSUMER BEHAVIOR IS IMPORTANT
TO CONSUMER BECAUSE OF THE
FOLLOWING REASONS:
1.EVER INCREASING INTENSIFYING COMPETITION.
2.PACE OF INNOVATION IS RAPID.
IMPORTANCE OF STUDYING
CONSUMER BEHAVIOR

35. THE STUDY OF CONSUMER
BEHAVIOR HELPS
PRODUCERS:
•To determine method of promotion.
• To design optimal services.
• To determine availability for the customers.
• To determine price
• To achieve the organizational objectives.

36. CONCLUSION