m Consumer Behavior

m Consumer buying process

m ÷he buying behavior of the final consumers-
individual and households who buy goods and
services for final consumption.
m 6

 
m ÷he term consumer behavior is defined as the
behavior that consumers display in searching for,
purchasing, using, evaluating, and disposing of
products and services that they expect will satisfy
their needs.
m Consumer behavior focuses on how individuals
make decisions to spend their available
resources( time, money, effort) on consumption
related items. ÷hat includes what-when-why-
where-how often they buy, how often they use it,
how they evaluate it after they purchase, the
impact of such evaluation on future purchases,
and how they dispose of it.
iarketing and other Stimuli Buyer Black Box Buyer Responses

Product Choice
iarketing Other
Buyer Characteristics Brand Choice
Product Economic
Buyer decision process Dealers Choice
Price ÷echnological
Purchase ÷iming
Place Political
Purchase amount
Promotion Cultural

FAC÷ORS INFLUENCING CONSUiER BEHAVIOR

 Cultural Social Personal
Psychological

Reference Age and life cycle

Culture iotivational
Group stage occupation
Perception Buyer
Family Economic
SubCulture Learning
Situation Lifestyle
Roles and Personality and
Social Class Beliefs and
Status Self concept
attitudes
m ÷he set of basic values, perceptions, wants and
behavior learned by a member of society from
family and other important institutions
m A group of people with shared value systems
based on common life experience and situation.
m Relatively permanent and ordered divisions in a
society whose members share similar values,
interests and behaviors.
m Group that individual want to belong.
m Opinion leader : Person within a reference group
who, because of special skill , knowledge ,
personality , or other characteristics , exerts social
influence on others.
m Family members strongly influence buyer
behavior.
m A person belongs to many groups- family , clubs
and organizations. ÷he person¶s position in each
group can be defined in terms of both role and
status.
m ÷astes in food, clothes , furniture , and recreational
are often age related.
m A person¶s occupation affects the goods and
services bought.
m A person economic situation will affect product
choice eg in recession or at time of bonus buying
patterns changes drastically.
m A person¶s pattern of living as expressed in his or
her activities , interests and opinions.
m ÷he unique psychological characteristics that lead
to relatively consistent and lasting responses to
one¶s own environment.
m 
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m ÷he process by which people select, organize ,
and interpret to form a meaningful picture of the
world.
Organizational Behavior / Perception 21
m Changes in an individual¶s behavior arising from
experience.
m Attitude are evaluative statements ± either
favorable or unfavorable ± about objects, people ,
or events
1 . Complex Buying Behavior
Consumer buying behavior in situations
characterized by high consumer involvement in a
purchase and significant perceived differences
among brands.

Eg iobile , camera with lot of specification about

the product.
2. Dissonance-reducing Buying behavior
Consumer buying behavior in situations
characterized by high involvement but few
perceived differences among brands.

Eg. Carpets
After the purchase, consumers might experience
post purchase dissonance ( after-sale discomfort)
and marketer¶s need to take effective steps to
counter such dissonance.
^. Habitual Buying Behavior
Consumer buying behavior in situations
characterized by low consumer involvement and few
significant perceived brand differences.

Ad repetitions creates brand familiarity rather than

brand conviction ± classical conditioning theory- in
which buyers learn to identify certain product by a
symbol repeatedly attached to it.

Visual symbols and images are important because

they can be remembered easily and associated with
brand.
£. Variety-seeking Buying Behavior
Consumer buying behavior in situations
characterized by low consumer involvement but
significant perceived brand differences.

Because of boredom consumer changes the brand

and in this case buyer need to encourage the
habitual buying behavior.
 Need
Recognition

Information
research

Evaluation and
Alternatives

Purchase
decisions

Post purchase
Behavior
m ÷he first stage of the buyer decision process in
which the consumer recognizes a problem or
need.
m ÷his can be either because of internal stimuli or
external stimuli
m ÷he stage of the buyer decision process in which
the consumer is aroused to search for more
information; the consumer may simply have
heightened attention or may go into active
information search.
m ÷he stage of the buyer decision process in which
the consumer uses information to evaluate
alternative brands in the choice set.
m ÷he buyer¶s decision about which brand to
purchase.
m ÷he stage of the buyer decision process in which
the consumer takes further action after purchase ,
based on their satisfaction or dissatisfaction.w
m  

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Customer value
m Customer value is defined as the ratio between the
customer¶s perceived benefits ( economic, functional,
psychological) and the resources(monetary, time, effort,
psychological) used to obtain those benefits.For ex««..
Customer satisfaction
m Customer satisfaction is the individual¶s perc eption of the
performance of the product or service in relation to his or
her expectation.For ex«.
Customer retention
m ÷he overall objective of providing value to customers
continuously and more effectively than the competition is
to have and to retain highly satisfied customers.For
ex««
m ROLE OF CONSUMER RESEARCH
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APPLICATION OF CONSUMER BEHAVIOUR IN

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person informally influence the action or attitude of
others.
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m 2 step flow:mass media-opinion leaders-
opinion receivers
m iultistep flow: mass media, opinion leaders,
opinion receiver/seekers.
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