Consumer behavior studies how individuals make decisions regarding their needs and purchases, which is crucial for targeting, product development, marketing strategies, customer retention, and gaining competitive advantages. Factors influencing consumer behavior include psychological, social, personal, economic, and situational elements. The buyer's decision-making process involves recognizing a need, searching for information, evaluating alternatives, making a purchase decision, and assessing post-purchase satisfaction.

1. Consumer Behaviour
MEANING
NEED OR STUDYING OF CONSUMER BEHAVIOUR
FACTOR INFLUENCING CONSUMER BEHAVIOUR
BUYERS DECISION MAKING PROCESS

2. MEANING
Consumer behavior refers to the study which analyzes
how consumers make decisions about their wants,
needs, buying or act with respect to a product,
service or organization. It is very critical to
understand the behavior of consumers to analyze the
behavior of potential consumers towards a new
product or service.

3. Needs for Studying Consumer Behavior
Understanding consumer behavior is important for several reasons:
Targeting and Segmentation: It helps businesses segment the market and identify specific
groups of consumers based on their needs, preferences, and behaviors.
Product Development: By understanding what consumers value, businesses can design
products that meet their needs and preferences.
Marketing Strategy: It helps in creating effective marketing campaigns, pricing strategies,
and promotional efforts that resonate with consumers.
Customer Retention: Knowing consumer behavior allows companies to create strategies that
improve customer satisfaction and loyalty, leading to repeat business.
Competitive Advantage: Firms that understand consumer behavior can anticipate shifts in
demand and stay ahead of competitors.

4. Factors Influencing Consumer
Behaviour
Psychological Factors:
Motivation: The internal drive to fulfill needs or desires (e.g., hunger,
status).
Perception: How a consumer views a product or brand (e.g., positive
or negative experiences).
Learning: Past experiences that shape future purchasing decisions.
Beliefs and Attitudes: Consumer opinions and mental assessments
about products or brands.

5. Factors Influencing Consumer
Behaviour
Social Factors:
Family: Family members often influence purchasing decisions, especially
for products like groceries, electronics, and clothing.
Reference Groups: Groups of people who influence an individual’s buying
behavior (e.g., friends, celebrities, social media influencers).
Social Class: A person’s social class can affect their preferences and
buying behavior.
Culture and Subculture: Cultural values, traditions, and norms heavily
influence consumer choices.

6. Factors Influencing Consumer
Behaviour
Personal Factors:
Age: As consumers age, their needs and purchasing power change.
Occupation and Income: The type of job and income level
determine purchasing decisions (luxury vs. basic goods).
Lifestyle: A person’s interests, activities, and opinions influence
their buying habits.
Personality: Consumers with different personalities may prefer
certain brands or products.

7. Factors Influencing Consumer
Behaviour
Economic Factors:
Income and Savings: The disposable income available
affects how consumers prioritize their spending.
Economic Conditions: Broader economic conditions like
inflation, recession, or growth can influence consumer
spending patterns.

8. Factors Influencing Consumer
Behaviour
Situational Factors:
Physical Environment: The setting where a product is
bought (e.g., store ambiance or online store design).
Time: Time constraints can impact decisions, such as last-
minute purchases.
Purchase Occasion: Certain purchases are influenced by
special occasions or events (e.g., birthdays, holidays).

9. Buyer’s Decision-Making Process
The buyer's decision-making process typically follows
several stages:
Problem Recognition: The consumer recognizes a need or
problem. This could be due to a physical need (e.g.,
hunger) or a desire (e.g., wanting a new phone)

10. Buyer’s Decision-Making Process
Information Search: Once the need is recognized, the
consumer searches for information to solve the problem.
This could involve:
Internal Search: Recalling previous experiences.
External Search: Looking for information from friends,
advertisements, or online reviews.
Evaluation of Alternatives: After gathering information, the
consumer compares different options based on attributes
like price, features, quality, and brand reputation.

11. Buyer’s Decision-Making Process
•Purchase Decision: Based on the evaluation, the
consumer decides on a product or service.
However, this decision can still be influenced by
factors such as promotions, salespeople, or peer
pressure.
•Post-Purchase Behavior: After the purchase, the
consumer assesses whether the product met their
expectations. If satisfied, they may become loyal
customers; if dissatisfied, they may return the
product or share negative feedback.