Consumer behavior is studied based on concepts from psychology, sociology, anthropology, marketing, and economics. It is important to study consumer behavior because customers can no longer be taken for granted. Failure rates of new products are high, with only 56% of new products remaining on the market after 5 years and only 8% of new concepts making it to market, with 83% of those failing to meet objectives. All managers must become skilled at analyzing consumer motivation and behavior in order to succeed.

1. Consumer Behaviour

2. Based on concepts from
s Psychology
s Sociology
s Anthropology
s Marketing
s Economics

3. Why do we need to study
Consumer Behaviour?
Because no longer can we take
the customer/consumer for
granted.

4. Failure rates of new products
introduced
s Out of 11000 new products introduced
by 77 companies, only 56% are
present 5 years later.
s Only 8% of new product concepts
offered by 112 leading companies
reached the market. Out of that 83%
failed to meet marketing objectives.

5. All managers must become astute
analysts of consumer motivation
and behaviour

6. Can Marketing be
standardised?
No.
Because cross - cultural styles,
habits, tastes, prevents such
standardisation.

7. Unless Managements act
The more successful a firm has
been in the past, the more likely is
it to fail in the future.

8. Why?
Because people tend to repeat
behaviour for which they have
been rewarded.

9. Language Problems
s “Please leave your values at the desk” - Paris
hotel
s “Drop your trousers here for best results” -
Bangkok laundry
s “The manager has personally passed all water
served here” - Acapulco restaurant
s “Because of the impropriety of entertaining
guests of the opposite sex in the bedroom, it is
suggested that the lobby be used for the
purpose.” - Zurich hotel
s Ladies are requested not to have children in
the bar.”- Norway bar

10. “Come alive with Pepsi”
s “Come alive out of the grave” -
Germany
s “Pepsi brings your ancestors back from
the grave” - China

11. Buyer Behaviour
Consumer
Marketing Buyer Buyer Buyer
4Ps
Environment Characteristics Decision Process Decision

12. Marketing Stimuli
4 Ps
Product Price Place Promotion

13. Other Stimuli
Marketing
Environment
Economic Technological Political Cultural

14. Buyer characteristics
s Cultural
s Social
s Personal
s Psychological

15. Buyer’s Decision Process
s Problem Recognition
s Information Search
s Evaluation of Alternatives
s Purchase Decision
s Consumption
s Postpurchase behaviour

16. Buyer’s Decision
s Product Choice
s Brand Choice
s Dealer Choice
s Purchase Timing
s Purchase Amount

17. Cultural factors
s Culture
s Sub - culture
s Social Class

18. Social factors
s Reference Groups
s Family
s Roles and Status

19. Personal Factors
s Family Life Cycle
s Occupation and Economic
circumstances
s Lifestyle
s Personality and self - concept

20. Psychological Factors
s Motivation
s Perception
s Learning
s Beliefs and Attitudes

21. Buying Roles
s Initiator
s Influencer
s Decider
s Buyer
s User

22. Buying Behaviour
s Complex
s Dissonance - Reducing
s Habitual
s Variety seeking

23. Buying Process
s Problem Recognition
s Information Search
s Evaluation Alternatives
s Purchase Decision

24. Post - Purchase Behaviour
s Satisfaction
s Actions
s Use and Disposal