UNDERSTANDING

CONSUMER BEHAVIOR
Consumer Behavior

—is the study of consumers and how people make

decisions which includes the factors that influence
how people purchase and use products and services.
Consumer

—anyone involved in the process of consuming, using or buying

products for personal use.
—Purchases made by consumers not only benefit them individually
but their households as well, which are referred to as household
customers.
—There are two types of consumers of interest to marketers—final
consumers and business consumer.
Final Consumers— refers to individuals or households that
purchase goods and services for their own personal use or
consumption.

—Final consumers make buying decisions based on their personal

needs, preferences, and budget constraints. They are the ultimate
destination for products and services in the market.
Business Consumers—refers to organizations or entities that purchase goods and
services for the purpose of conducting their business operations rather than for
personal use
—These consumers are also known as industrial or B2B (business-to-business)
customers. Business consumers can include a wide range of entities, such as
corporations, government agencies, non-profit organizations, and other
institutions.
—The purchasing decisions made by business consumers are often influenced by
factors such as efficiency, cost-effectiveness, and the ability of the products or
services to contribute to the overall success of the business.
Consumer’s Wants and Needs

 Consumers' wants and needs are fundamental concepts in marketing

representing the motivations that drive individuals to make purchasing
decisions.
 Needs: are the basic requirements essential for survival and well-being. They
encompass fundamental necessities like food, shelter, clothing, healthcare,
and safety.
 Wants: are the desires or preferences that go beyond basic necessities. They
are shaped by cultural, social, and personal factors, and they reflect an
individual's aspirations or cravings for specific products or services.
Hierarchy of Needs

 is a psychological theory proposed by Abraham Maslow in 1943, which

suggests that human motivations can be arranged in a hierarchical structure.
 According to Maslow, individuals are motivated to fulfill basic needs before
moving on to higher-level, more complex needs. The hierarchy is often
depicted as a pyramid with five levels, arranged from the most fundamental to
the more advanced needs.
Motivation

—refers to the internal or external factors that drive and

influence an individual's behavior, actions, and level of
effort towards achieving a particular goal or outcome.

It is the force that initiates, directs, and sustains goal-

oriented behavior
Motivation can be categorized into two main types:

Intrinsic Motivation: This type of motivation comes from within an

individual. It involves engaging in an activity for the inherent satisfaction or
enjoyment derived from the activity itself.

Extrinsic Motivation: arises from external factors or rewards.

It involves engaging in an activity to attain a separate outcome or reward, such
as money, recognition, or praise. Workplace incentives and grades in an
educational setting are examples of extrinsic motivation.
Buying Motives

—refer to the underlying reasons or factors that drive a consumer to

make a purchasing decision.
—Buying motives can be complex and may involve a combination
of rational and emotional factors.
—Different individuals may have different buying motives based on
their personal preferences, values, and circumstances.
 There are three categories of buying motives that drives consumers to purchase products or
services.
 Emotional Motives—are tied to the emotional satisfaction or pleasure that a product or service
provides. This can include feelings of happiness, excitement, or comfort associated with the
purchase.
 Rational Motives —based on logical and objective criteria. Consumers may be motivated by
factors such as price, quality, features, or performance. Rational motives often involve a careful
evaluation of the product's attributes.
 Patronage Motives—refer to the factors that influence consumers to repeatedly choose and remain
loyal to a particular brand, store, or service provider. These motives are associated with the ongoing
and repetitive nature of a consumer's purchasing behavior.
Conditioning Behavior

 Conditioning is a term used in psychology to describe the

process by which behaviors become associated with
particular stimuli or situations through learning.
 Thereare two primary types of conditioning: classical
conditioning and operant conditioning.
Classical conditioning

 isa type of learning in which a neutral stimulus comes to evoke a

response after being repeatedly paired with a stimulus that naturally
evokes that response.

 This process was first systematically studied by the Russian

physiologist Ivan Pavlov in the late 19th and early 20th centuries.
Classical conditioning involves the association of stimuli and can
influence involuntary, reflexive responses.
Operant Conditioning

 sometimes referred to as instrumental conditioning, is a method of

learning that uses rewards and punishment to modify behaviour.
 Through operant conditioning, behaviour that is rewarded is likely
to be repeated, and behavior that is punished will rarely occur, was
developed by psychologist B.F. Skinner.
Classical and operant conditioning principles have implications for
understanding and influencing consumer buying behavior.

While these theories were initially developed in the context of

psychology, they have been applied to marketing and consumer
behavior research to explain how individuals learn to associate
products, brands, and shopping experiences with specific responses.
Here are some implications of classical and operant conditioning in buying behaviour

CLASSICAL CONDITIONING
1. Brand Recognition and Loyalty
Companies can use classical conditioning to create positive associations between their
brand (conditioned stimulus) and positive experiences or emotions (unconditioned
stimulus). Over time, this can lead to brand recognition and loyalty.
2. Creating Positive Shopping Experiences:
Implication: Retailers can use classical conditioning by associating their stores with
positive stimuli, such as pleasant music, appealing scents, or enjoyable visual displays.
This can enhance the overall shopping experience and create positive associations with
the store.

3. Product Placement and Association:

Implication: Placing products in positive contexts or associating them with positive
imagery in advertising can create positive associations. For example, showing a product
being used in a beautiful and desirable setting can evoke positive emotions.
Operant Conditioning:
1. Rewards and Incentives:
Implication: Offering rewards and incentives (positive reinforcement) for certain buying
behaviors can increase the likelihood of repeat purchases. Loyalty programs, discounts,
and exclusive offers are examples of strategies that use operant conditioning principles.

2. Customer Feedback and Reviews:

Implication: Customer feedback and reviews can act as consequences for buying
behavior. Positive reviews can reinforce the decision to purchase a particular product or
from a specific brand, while negative reviews may act as punishment, influencing future
buying decisions.
3. Customer Service and Satisfaction:
Implication: Positive customer service experiences can reinforce positive buying behavior. Conversely, poor
customer service or negative experiences may act as punishment, potentially leading to a decrease in future
purchases.

4. Sales and Promotions:

Implication: Limited-time sales, discounts, and promotions can be used as reinforcement to encourage immediate
buying behavior. The sense of urgency created by time-limited offers serves as a positive consequence.

5. Product Availability and Scarcity:

Implication: Creating a sense of scarcity or limited availability for a product can act as a reinforcement,
encouraging consumers to make a purchase before the product runs out.
 Purchasing Behavior

 Purchasing behavior, also known as buying behavior refers to the

process and activities individuals go through when making decisions
to acquire goods or services.

 Thereare 4 types of Purchasing Behavior namely: Complex Buying

Behavior, Dissonance Reducing Buying Behavior, Habitual Buying
Behavior and Variety Seeking Behavior.
1. Complex Buying Behavior
—customers are carefully analysing their decision n buying product
where cost is not the major issue, but understanding of the different
use, features and benefit of the product.

2. Dissonance Reducing Buying Behavior

—this behaviour is where a customer is having a hard time to decide on
a product and focused on factors such as cost, convenience and
features.
3. Habitual Buying Behavior—where customer are repeatedly
buying a specific brand or product.

4. Variety Seeking Behavior—where customers are always finding

new brand or product to use or buy.