The 21st Century Consumers

A Behavioural Perspective

Edited by
M. Ganesh Babu, G. Vani
and Dr. N. Panchanatham

Publish by Global Vision Publishing House

Consumer Buying Behaviour

*S. Prakash
Abstract
Consumer behaviour has been always of great interest to marketers. The knowledge of consumer
behaviour helps the marketer to understand how consumers think, feel and select from alternatives
like products, brands and the like and how the consumers are influenced by their environment, the
reference groups, family, and salespersons and so on. A consumers buying behaviour is influenced by
cultural, social, personal and psychological factors. Most of these factors are uncontrollable and
beyond the hands of marketers but they have to be considered while trying to understand the complex
behaviour of the consumers. This study discuss about various uncontrollable and controllable factors.

INTRODUCTION
The 1990s have borne witness to dramatic shifts in the marketplace triggered by sharp changes
in the lifestyle patterns of the past and present and the radical revolution in the
telecommunication technology. Time tested concepts on Brand loyalty and Mass Marketing,
are being turned on their heads as they fail to gauge the Behaviour of new generation
customers. The behaviour is characterized by the uniqueness of individual expectations, the
preference for multiple options, propensity to abandon Brand loyalty and switch to
competition Brands that give higher (perceived) value. The new breed is even willing to
import to satisfy specific requirement.
It is difficult to classify this generation by conventional Demographic factors and unless
their thought process and buying behaviour are fully understood, decisions on product
designs and packaging, Branding and Distribution channels are likely to be misplaced. With
the inevitability of change looming large over the horizon, Indian companies must learn
from their western counterparts; not only to identify the sources, timing and direction of the
changes likely to affect India, but also the new competencies and perspective that will enable
them to respond to these changes, comprehensively and effectively.
Why Consumers Buy?
As we discussed in the what is Marketing? Tutorial, customers make purchases in order
to satisfy needs. Some of these needs are basic and must be filled by everyone on the planet
* Ramanathapuram, Coimbatore, [email protected]

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(e.g., food, shelter) while others are not required for basic survival and vary depending on
the person. It probably makes more sense to classify needs that are not a necessity as wants
or desires. In fact, in many countries where the standard of living is very high, a large
portion of the populations income is spent on wants and desires rather than on basic needs.
In this tutorial when we mention the consumer we are referring to the actual buyer, the
person spending the money. But is should also be pointed out that the one who does the
buying is not necessarily the user of what is bought and that others may be involved in the
buying decision in addition to the actual buyer. While the purchasing process in the consumer
market is not as complex as the business market, having multiple people involved in a purchase
decision is not unusual. For example, in planning for a family vacation the mother may make
the hotel reservations but others in the family may have input on the hotel choice. Similarly,
a father may purchase snacks at the grocery store but his young child may be the one who
selected it from the store shelf. So understanding consumer purchase behaviour involves not
only understanding how decisions are made but also understanding the dynamics that
influence purchases.
How Consumers Buy?
So now that we have discussed the factors influencing a consumers decision to purchase,
lets examine the process itself. This process is presented in a sequence of 5 steps as shown
below:

Fig.1
However, whether a consumer will actually carryout each step depends on the type of
purchase decision that is faced. For instance, for minor re-purchases the consumer may be
quite loyal to the same brand, thus the decision is a routine one (i.e., buy the same product)
and little effort is involved in making a purchase decision. In cases of routine, brand loyal
purchases consumers may skip several steps in the purchasing process since they know exactly
what they want allowing the consumer to move quickly through the steps. But for more complex
decisions, such as Major New Purchases, the purchasing process can extend for days, weeks,
months or longer. So in presenting these steps marketers should realize that, depending on the
circumstances surrounding the purchase, the importance of each step may vary.
What Influences Purchasing?
As we discussed the decision-making process for consumers is anything but straight
forward. There are many factors that can affect this process as a person works through the

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purchase decision. The number of potential influences on consumer behaviour is limitless.

However, marketers are well served to understand the KEY influences. By doing so they
may be in a position to tailor their marketing efforts to take advantage of these influences in
a way that will satisfy the consumer and the marketer .
For the purposes of this tutorial we will break these influences down into three main
categories: Internal, External and Marketing. However, those interested in learning more
about customer buying activity may want to consult one or more consumer behaviour books
where they will find additional methods for explaining consumer buying behaviour.
For the most part the influences are not mutually exclusive. Instead, they are all
interconnected and, as we will see, work together to form who we are and how we behave.
For each of the influences that are discussed we will provide a basic description and also
suggest its implication to marketers. Bear in mind we only provide a few marketing
implications for each influence; clearly there are many more.
Internal Influences
We start our examination of the influences on consumer purchase decisions by first looking
inside ourselves to see which are the most important internal factors that affect how we
make choices.
1. Perceptual Filter: Perception is how we see ourselves and the world we live in.
However, what ends up being stored inside us doesnt always get there in a direct
manner. Often our mental makeup results from information that has been consciously
or subconsciously filtered as we experience it, a process we refer to as a perceptual
filter. To us this is our reality, though it does not mean it is an accurate reflection on
what is real. Thus, perception is the way we filter stimuli (e.g., someone talking to
us, reading a newspaper story) and then make sense out of it. Perception has several
steps:

Exposure sensing a stimuli (e.g. seeing an ad)

Attention an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad)

Awareness assigning meaning to a stimuli (e.g., humorous ad for particular product)

Retention adding the meaning to ones internal makeup (i.e., product has fun ads)

How these steps are eventually carried out depends on a persons approach to learning.
By learning we mean how someone changes what they know, which in turn may
affect how they act. There are many theories of learning, a discussion of which is
beyond the scope of this tutorial, however, suffice to say that people are likely to
learn in different ways. For instance, one person may be able to focus very strongly
on a certain advertisement and be able to retain the information after being exposed
only one time while another person may need to be exposed to the same advertisement
many times before he/she even recognizes what it is. Consumers are also more likely
to retain information if a person has a strong interest in the stimuli. If a person is in
need of new car they are more likely to pay attention to a new advertisement for a
car while someone who does not need a car may need to see the advertisement many
times before they recognize the brand of automobile.

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2. Knowledge: Knowledge is the sum of all information known by a person. It is the

facts of the world as he/she knows it and the depth of knowledge is a function of the
breadth of worldly experiences and the strength of an individuals long-term memory.
Obviously what exists as knowledge to an individual depends on how an individuals
perceptual filter makes sense of the information it is exposed to.
3. Attitude: In simple terms attitude refers to what a person feels or believes about
something. Additionally, attitude may be reflected in how an individual acts based
on his or her beliefs. Once formed, attitudes can be very difficult to change. Thus, if
a consumer has a negative attitude toward a particular issue it will take considerable
effort to change what they believe to be true.
4. Personality: An individuals personality relates to perceived personal characteristics
that are consistently exhibited, especially when one acts in the presence of others. In
most, but not all, cases the behaviours one projects in a situation is similar to the
behaviours a person exhibits in another situation. In this way personality is the sum
of sensory experiences others get from experiencing a person (i.e., how one talks,
reacts). While ones personality is often interpreted by those we interact with, the
person has their own vision of their personality, called Self Concept, which may or
may not be the same has how others view us.
5. Lifestyle: This influencing factor relates to the way we live through the activities we
engage in and interests we express. In simple terms it is what we value out of life.
Lifestyle is often determined by how we spend our time and money.
6. Roles: Roles represent the position we feel we hold or others feel we should hold
when dealing in a group environment. These positions carry certain responsibilities
yet it is important to understand that some of these responsibilities may, in fact, be
perceived and not spelled out or even accepted by others. In support of their roles,
consumers will make product choices that may vary depending on which role they
are assuming.
As illustration, a person who is responsible for selecting snack food for an office
party his boss will attend may choose higher quality products than he would choose
when selecting snacks for his family.
7. Motivation: Motivation relates to our desire to achieve a certain outcome. Many
internal factors we have already discussed can affect a customers desire to achieve a
certain outcome but there are others. For instance, when it comes to making purchase
decisions customers motivation could be affected by such issues as financial position
(e.g., Can I afford the purchase?), time constraints (e.g., Do I need to make the purchase
quickly?), overall value (e.g., Am I getting my moneys worth?), and perceived risk
(e.g., What happens if I make a bad decision?).
EXTERNAL INFLUENCES
1. Culture: Consumer purchasing decisions are often affected by factors that are outside
of their control but have direct or indirect impact on how we live and what we
consume. One example of this are cultural factors.

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Culture represents the behaviour, beliefs and, in many cases, the way we act learned
by interacting or observing other members of society. In this way much of what we
do is shared behaviour, passed along from one member of society to another. Yet
culture is a broad concept that, while of interest to marketers, is not nearly as important
as understanding what occurs within smaller groups or Sub-Cultures to which we
may also belong. Sub-cultures also have shared values but this occurs within smaller
groups. For instance, sub-cultures exist where groups share similar values in terms
of ethnicity, religious beliefs, geographic location, special interests and many others.
2. Group Membership: In addition to cultural influences, consumers belong to many
other groups with which they share certain characteristics and which may influence
purchase decisions. Often these groups contain Opinion Leaders or others who have
major influence on what the customer purchases. Some of the basic groups we may
belong to include:

Social Class represents the social standing one has within a society based on
such factors as income level, education, occupation
Family ones family situation can have a strong effect on how purchase decisions
are made
Reference groups most consumers simultaneously belong to many other groups
with which they associate or, in some cases, feel the need to disassociate

3. Purchase Situation: A purchase decision can be strongly affected by the situation in

which people find themselves. In general, a situation is the circumstances a person
faces when making a purchase decision, such as the nature of their physical
environment, their emotional state, or time constraints. Not all situations are
controllable, in which case a consumer may not follow their normal process for making
a purchase decision. For instance, if a person needs a product quickly and a store
does not carry the brand they normally purchase, the customer may choose a
competitors product.
Types of Consumer Purchase Decisions
Consumers are faced with purchase decisions nearly every day. But not all decisions are
treated the same. Some decisions are more complex than others and thus require more effort
by the consumer. Other decisions are fairly routine and require little effort. In general,
consumers face four types of purchase decisions:

Minor New Purchase these purchases represent something new to a consumer but
in the customers mind is not a very important purchase in terms of need, money or
other reason (e.g., status within a group).

Minor Re-Purchase these are the most routine of all purchases and often the consumer
returns to purchase the same product without giving much thought to other product
options (i.e., consumer is brand loyalty).

Major New Purchase these purchases are the most difficult of all purchases because
the product being purchased is important to the consumer but the consumer has little
or no previous experience making these decisions. The consumers lack of confidence

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in making this type of decision often (but not always) requires the consumer to
engage in an extensive decision-making process..

Major Re-Purchase - these purchase decisions are also important to the consumer but
the consumer feels confident in making these decisions since they have previous
experience purchasing the product.

For marketers it is important to understand how consumers treat the purchase decisions
they face. If a company is targeting customers who feel a purchase decision is difficult (i.e.,
Major New Purchase), their marketing strategy may vary greatly from a company targeting
customers who view the purchase decision as routine. In fact, the same company may face
both situations at the same time; for some the product is new, while other customers see the
purchase as routine.
CONCLUSION
From the above subject we come to know in detail about Why Consumers buy? What
Consumers buy? What influences purchasing? Etc., It also gives a clear picture about Internal
influences & External Influences and Types of Consumer Purchase Decisions. We also
come to the conclusion that the implication of buying behaviour for marketers in different
buying situations require different marketing efforts.
REFERENCES
Carlyn, Marcia. (1977 ). An Assessment of the Myers-Briggs Type Indicator. Journal of Personality Assessment,
41(5), 461-73.
Cheng, Many M., Peter F. Luckett, and Axel K. Schulz. (2003). The Effects of Cognitive Style Diversity on
Decision-Making Dyads: An Empirical Analysis in the Context of a Complex Task. Behavioural Research
in Accounting, 15, 39-62.
Gardner, William L., and Mark J. Martinko (1996). Using the Myers-Briggs Type Indicator to Study Managers:
A Literature Review and Research Agenda. Journal of Management, 22(1), 45-83.
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