Consumer Behaviour Data
Consumer Behaviour Data
behaviour and consumer buying behaviour all stands for the same.
Consumer behaviour is the study of how individuals, groups and
Organisation select buy, use and dispose of goods and services, ideas or
experiences to satisfy their needs and wants.
Need Recognition
The first step in the consumer decision-making process is identifying the need. The
need is the most important element which leads towards the actual buying of the
product or service. Need is the trigger point of all the buying decisions.
Finding out what the customer needs is the first milestone towards evaluating the
Consumer Decision Making Process. Determining the needs and wants of the target
market provide support to many marketing decisions.
The potential consumer after identifying his needs moves on to the second stage i.e.
searching & gathering information. When it comes to choosing between alternatives
humans tend to be skeptical, therefore they need all the information before
spending their money.
During this phase of the Consumer Decision Making Process, the consumer evaluates
the entire positive and negatives aspects of the purchase. Due to the changing
trends and online shopping sites, consumers are far more informed and are able to
make better purchase decisions.
Information can be collected from many different sources like prints or electronic
media or from people’s reviews about certain products. Making a purchase decision
is important so the consumer does not tend to be hasty while gathering information
about the products and brand available in the market. The consumers receive
information from many different directions.
Personal Contacts: This is a very strong source of information and has the
greatest influence over the mind of the consumer. Consumers tend to discuss
the needs and their interests in different products with friends, family,
colleagues and acquaintances and make purchase decisions based upon their
recommendations.
Commercial Information Sources: Electronic media, TV Ads, Newsletters, Sale
Persons and Public displays are some important types.
Printed Sources – Newspapers and Magazines
Previous Purchase Experiences: Consumer’s own personal experiences about
the prior use of a product.
Consumers begin to search out for the best deals or options available once he has
identified the Need and the source to satisfy that need. The Consumer at this stage
evaluates different options based upon product price, product quality, product
quantity, and value-added features of a product or other important factors.
Customer reviews and compare prices for the substitute products before choosing
the product that will satisfy the need in the best possible manner. Careful evaluation
of all the alternatives/ substitute products available in the market comprises the
3rd stage of the Consumer Decision Making Process.
The consumer after Need recognition and collecting useful information choose the
best product available in the market based upon his taste, style, income, or
preference.
In this stage, the customer decides what to buy, where to buy after going through
all the above stages. After proper assessment of all the facts, the consumer makes a
logical decision to buy a product based upon his needs and wants.
The Needs and want are often triggered by the advertising and marketing
campaigns, recommendations from personal connections, or maybe from both.
In the final stage of the consumer decision-making process the consumer evaluates
or analysis the purchased product, the usefulness of the product, satisfaction
delivered from the product, Value of the product with respect to the need fulfillment
of the consumer.
If the consumer feels that the product bought delivered the value and has met the
expectation they will become the loyal customers of the product.
We can say that following factors can influence the Buying decision of the
buyer:
a. Cultural
b. Social
c. Personal
d. Psychological
1.Cultural Factors
a. Culture
Culture is the most basic cause of a person’s wants and behavior. Human
behavior is largely learned. Growing up in a society, a child learns basic
values, perceptions, wants, and behaviors from the family and other important
institutions. A person normally learns or is exposed to the following values:
achievement and success, activity and involvement, efficiency and practicality,
progress, material comfort, individualism, freedom, humanitarianism,
youthfulness, and fitness and health.
Every group or society has a culture, and cultural influences on buying
behavior may vary greatly from country to country. Failure to adjust to these
differences can result in ineffective marketing or embarrassing mistakes. For
example, business representatives of a U.S. community trying to market itself
in Taiwan found this out the hard way. Seeking more foreign trade, they
arrived in Taiwan bearing gifts of green baseball caps. It turned out that the
trip was scheduled a month before Taiwan elections, and that green was the
color of the political opposition party. Worse yet, the visitors learned after the
fact that according to Taiwan culture, a man wears green to signify that his
wife has been unfaithful. The head of the community delegation later noted, “I
don’t know whatever happened to those green hats, but the trip gave us an
understanding of the extreme differences in our cultures.” International
marketers must understand the culture in each international market and adapt
their marketing strategies accordingly.
b. Subculture
c. Social Class
Almost every society has some form of social class structure. Social Classes
are society’s relatively permanent and ordered divisions whose members
share similar values, interests, and behaviors. Social class is not determined
by a single factor, such as income, but is measured as a combination of
occupation, income, education, wealth, and other variables. In some social
systems, members of different classes are reared for certain roles and cannot
change their social positions. Marketers are interested in social class because
people within a given social class tend to exhibit similar buying behavior.
Social classes show distinct product and brand preferences in areas such as
clothing, home furnishings, leisure activity, and automobiles.
2. Social Factors
a. Groups
Many small groups influence a person’s behavior. Groups that have a direct
influence and to which a person belongs are called membership groups. In
contrast, reference groups serve as direct (faceto- face) or indirect points of
comparison or reference in forming a person’s attitudes or behavior.
Reference groups to which they do not belong often influence people.
Marketers try to identify the reference groups of their target markets.
Reference groups expose a person to new behaviors and lifestyles, influence
the person’s attitudes and self-concept, and create pressures to conform that
may affect the person’s product and brand choices.
The importance of group influence varies across products and brands. It tends
to be strongest when the product is visible to others whom the buyer respects.
Manufacturers of products and brands subjected to strong group influence
must figure out how to reach opinion leaders—people within a reference group
who, because of special skills, knowledge, personality, or other
characteristics, exert influence on others.
Many marketers try to identify opinion leaders for their products and direct
marketing efforts toward them. In other cases, advertisements can simulate
opinion leadership, thereby reducing the need for consumers to seek advice
from others.
The importance of group influence varies across products and brands. It tends
to be strongest when the product is visible to others whom the buyer respects.
Purchases of products that are bought and used privately are not much
affected by group influences because neither the product nor the brand will be
noticed by others.
b. Family
Family members can strongly influence buyer behavior. The family is the most
important consumer buying organization in society, and it has been
researched extensively. Marketers are interested in the roles and influence of
the husband, wife, and children on the purchase of different products and
services.
Such changes suggest that marketers who’ve typically sold their products to
only women or only men are now courting the opposite sex. For example, with
research revealing that women now account for nearly half of all hardware
store purchases, home improvement retailers such as Home
Depot and Builders Square have turned what once were intimidating
warehouses into female friendly retail outlets. The new Builders Square II
outlets feature decorator design centers at the front of the store. To attract
more women, Builders Square runs ads targeting women in Home, House
Beautiful, Woman’s Day, and Better Homes and Gardens. Home Depot even
offers bridal registries.
Similarly, after research indicated that women now make up 34 percent of the
luxury car market, Cadillac has started paying more attention to this important
segment. Male car designers at Cadillac are going about their work with paper
clips on their fingers to simulate what it feels like to operate buttons, knobs,
and other interior features with longer fingernails. The Cadillac Catera features
an air-conditioned glove box to preserve such items as lipstick and film. Under
the hood, yellow markings highlight where fluid fills go.
Children may also have a strong influence on family buying decisions. For
example, it ran ads to woo these “back-seat consumers” in Sports Illustrated
for Kids, which attracts mostly 8- to 14- year-old boys. “We’re kidding
ourselves when we think kids aren’t aware of brands,” says Venture’s brand
manager, adding that even she was surprised at how often parents told her
that kids played a tie-breaking role in deciding which car to buy. In the case of
expensive products and services, husbands and wives often make joint
decisions.
3. Personal Factors
People change the goods and services they buy over their lifetimes. Tastes in
food, clothes, furniture, and recreation are often age related. Buying is also
shaped by the stage of the family life cycle—the stages through which families
might pass as they mature over time. Marketers often define their target
markets in terms of life-cycle stage and develop appropriate products and
marketing plans for each stage. Traditional family life-cycle stages include
young singles and married couples with children.
b. Occupation
A person’s occupation affects the goods and services bought. Blue-collar
workers tend to buy more rugged work clothes, whereas white-collar workers
buy more business suits. Marketers try to identify the occupational groups that
have an above-average interest in their products and services.
c. Economic Situation
d. Lifestyle
People coming from the same subculture, social class, and occupation may
have quite different lifestyles. Life style is a person’s pattern of living as
expressed in his or her psychographics. It involves measuring consumers’
major AIO dimensions—activities (work, hobbies, shopping, sports, social
events), interests (food, fashion, family, recreation), and opinions (about
themselves, social issues, business, products). Lifestyle captures something
more than the person’s social class or personality. It profiles a person’s whole
pattern of acting and interacting in the world.
4. Psychological Factors
a. Motivation
A person has many needs at any given time. Some are biological, arising from
states of tension such as hunger, thirst, or discomfort. Others are
psychological, arising from the need for recognition, esteem, or belonging.
Most of these needs will not be strong enough to motivate the person to act at
a given point in time. A need becomes a motive when it is aroused to a
sufficient level of intensity. A motive (or drive) is a need that is sufficiently
pressing to direct the person to seek satisfaction. Psychologists have
developed theories of human motivation. Two of the most popular—the
theories of Sigmund Freud and Abraham Maslow—have quite different
meanings for consumer analysis and marketing.
Abraham Maslow sought to explain why people are driven by particular needs
at particular times. Why does one person spend much time and energy on
personal safety and another on gaining the esteem of others? Maslow’s
answer is that human needs are arranged in a hierarchy, from the most
pressing to the least pressing. Maslow’s hierarchy of needs is shown in
Figure. In order of importance, they are physiological needs, safety needs,
social needs, esteem needs, and self-actualization needs. A person tries to
satisfy the most important need first. When that need is satisfied, it will stop
being a motivator and the person will then try to satisfy the next most
important need. For example, starving people (physiological need) will not
take an interest in the latest happenings in the art world (self-actualization
needs), nor in how they are seen or esteemed by others (social or esteem
needs), nor even in whether they are breathing clean air (safety needs). But
as each important need is satisfied, the next most important need will come
into play.
c. Perception
A motivated person is ready to act. How the person acts is influenced by his or
her own perception of the situation. All of us learn by the flow of information
through our five senses: sight, hearing, smell, touch, and taste. However,
each of us receives, organizes, and interprets this sensory information in an
individual way. Perception is the process by which people select, organize,
and interpret information to form a meaningful picture of the world.
People can form different perceptions of the same stimulus because of three
perceptual processes: selective attention, selective distortion, and selective
retention. People are exposed to a great amount of stimuli every day. For
example, the average person may be exposed to more than 1,500 ads in a
single day. It is impossible for a person to pay attention to all these stimuli.
Selective attention—the tendency for people to screen out most of the
information to which they are exposed—means that marketers have to work
especially hard to attract the consumer’s attention.
Even noted stimuli do not always come across in the intended way. Each
person fits incoming information into an existing mind-set. Selective distortion
describes the tendency of people to interpret information in a way that will
support what they already believe. Selective distortion means that marketers
must try to understand the mind-sets of consumers and how these will affect
interpretations of advertising and sales information.
d. Learning
Through doing and learning, people acquire beliefs and attitudes. These, in
turn, influence their buying behavior. A belief is a descriptive thought that a
person has about something. Buying behavior differs greatly for a tube of
toothpaste, a tennis racket, an expensive camera, and a new car. More
complex decisions usually involve more buying participants and more buyer
deliberation. Figure shows types of consumer buying behavior based on the
degree of buyer involvement and the degree of differences among brands.
On the other hand, consumers are responding negatively and rejecting brands that push
a specific “traditional” definition of beauty. Beauty is now seen as a way to express one’s
self, rather than a way to fit into a mold. Brands that respond to this trend by embracing
diversity in both their products and their advertising choices will see greater success as
2019 progresses.
What makes influencers so valuable in changing consumer actions is the many different
platforms where they can get across their messages. From online platforms to Instagram
and other social media channels, to radio and television advertising, influential people
are able to leverage multiple channels to drive purchase decisions. Brands that
incorporate this knowledge into their business plans will find greater success in the
coming years.
As a result, many consumers are willing to spend more for products that were packaged
in an eco-friendly way. Recyclable and recycled packaging is something people will pay
more to have. Many brands, like IKEA, are phasing out single-use plastic products and
oil-based plastic materials in favor of more eco-friendly options. Brands that follow this
trend may find greater success in the coming years.
For example, many major retailers, including Walmart and Target, are offering pickup
services. Shoppers shop on their phones or computers, then arrive at the store at a
scheduled time with their groceries ready to get loaded into their car. Amazon Go stores,
launched in Seattle and Chicago, have ditched the checkout line. Customers simply
scan their app when they enter the store, pick up what they need and leave. Their
Amazon account is automatically charged for what they buy.
This trend also translates into the online shopping world. Fast, even next day, delivery
remains in high demand. Consumers are used to the lighting speed of Amazon Prime
and are willing to pay well for similar services from other retailers.