CONSUMER

BEHAVIOR
 Marketers have long asked
the following questions:
● How do you decide on what to buy, and which
size and variant, if any?
● Why do you need this product and why buy
this particular brand
● When do you decide to shope? Why on this
particular day and time?
● How often do you shop?
● Who do you shop with?
Understanding buyer consumption behavior gives insights
into what motivates a consumer to buy, what makes a
consumer loyal to brand, and how a consumer uses a
product.

In doing so, marketers are able to modify their products

and marketing activities to appeal to their target market.

CONSUMER MARKETS
● Include individuals
and/or household that
purchase products and
services for personal
consumption.
Companies develop a new product
and/or services based on how
potential consumers decide to buy,
use, or dispose goods which is called
the study of consumer behavior.
CONSUMER
BEHAVIOR
● Study of how
consumers - individuals,
households, groups, or
organizations - decide
to buy, use and dispose
of goods, services, and
ideas to satisfy their
needs and wants.
● These buyers make up
the consumer market.
“Consumer Behaviour is defined as Behaviour that
consumers display in searching for purchasing, using
evaluating and disposing of products and services that
expect will satisfy their needs”.
 Importance/Need of Study
of Consumer Behavior
● To make better strategies for increasing profits
● To take into considerations customer’s health.
hygiene and fitness
● To know the buying decisions and how consumer
make consumption
● Consistent change in consumer’s tastes or
preferences
● Consumer behavior study is necessary to make
pricing policies
● To decide the price at which the consumers would be
ready to buy that product or service.
● To avoid future market failures
● To find out best method of promotion that will prove
to be effective to attract customers to buy a product
 NATURE OF CONSUMER
BEHAVIOR
1. Influenced by Various Factors:

a. Marketing factors such as product design, price,

promotion, packaging, positioning and distribution.
b. Personal factors such as age, gender, education and
income level.
c. Psychological factors such as buying motives, perception
of the product and attitudes towards the product.
d. Situational factors such as physical surroundings at the
time of purchase, social surroundings and time factor
e. Social factors such as social status, reference groups and
family
f. Cultural factors, such as religion, social class—caste and
sub-castes
 CONT.
2. Undergoes a constant change.
Consumer Behaviour is not static. It undergoes a
change over a period of time depending on the nature
of products.

3. Varies from consumer to consumer:

All consumers do not behave in the same manner.
Different consumers behave differently. The differences in
consumer Behaviour are due to individual factors such as
the nature of the consumers, lifestyle and culture.
4. Varies from region to region and country to county:
The consumer Behaviour varies across states, regions and
countries. It may differ depending on the upbringing, lifestyles and
level of development.

5. Information on consumer Behaviour is important to the marketers.

Marketers need to have a good knowledge of the consumer
Behaviour. They need to study the various factors that influence the
consumer Behaviour of their target customers. i.e. Product
design/model, pricing, packaging, positioning, promotion of
product etc

6.Leads to purchase decision.

A positive consumer Behaviour leads to a purchase decision. A
consumer may take the decision of buying a product on the basis
of different buying motives. The purchase decision leads to higher
demand, and the sales of the marketers increase
7. Varies from product to product: Consumer Behaviour is
different for different products. There are some
consumers who may buy more quantity of certain items
and very low or no quantity of other items.

8. Improves standard of living: The buying Behaviour of

the consumers may lead to higher standard of living. The
more a person buys the goods and services, the higher is
the standard of living. But if a person spends less on
goods and services, despite having a good income, they
deprives themselves of higher standard of living
 CONSUMER

A Consumer is an individual who buys products or

services for personal use and not for manufacture or
resale .
A Consumer may be a person or group of people such
as a household and similar needs, not directly related to
entrepreneurial or business activities who are the final
users of products or services.
Consumers are the basic economic entities of an
economy. All the consumers consume goods and
services directly and indirectly to maximise satisfaction
and utility.
 TYPES OF CONSUMERS

(i) Personal Consumer/ Individual consumer: Buy the

Product and services for his family and own or family.

(ii) Organizational Consumers/Commercial consumers:

Buy the product or services for manufacturing or reselling
 FACTORS INFLUENCING
CONSUMER BE
The behaviour of consumer is dependent on a number of
factors which may be economic or non-economic
factors and are dependent upon economic factors such
as income, price, psychology, sociology, anthropology,
culture and climate. The study of consumer behaviour
has proved that following are the main factors which
influence the behaviour:
 FACTORS INFLUENCING
CONSUMER BE

1. Economic Factors: Price, Income, Distribution of Income,

Competition with substitute , utility and Consumer
preferences are the factors categorised as Economic factors
.
2. Social Factors: Culture, Attitude of society, social values,
Life-style, personality, Size of family, Education, health
standards are the factors catagorised as Social factors.
3. Psychology : It decides the personality, taste, attitudes of
individuals or groups, life style, preferences especially on
occasions like marriage. The demonstration influence is also
dependent upon psychology of an individual
 FACTORS
INFLUENCING
CONSUMER BE
4. Anthropology & Geography: Climate, region, history all effect,
consumer behaviour. In hot countries like India certain products
which keep us cool like squashes, sarbatas, are demanded but
they have no demand in cold regions. Culture is also influenced
by climate.
5. Technology: In case of equipment’s whether for consumer use
or industrial use is affected by technological innovations and
features. Even in case of perishable goods the shelf life etc are
determined by technological developments. Innovations and
introduction of new product also depends upon technological
development.
6. Others: Knowledge-technical or otherwise and information.
Government decisions, laws, distribution policies, production
policies have also big affect on consumer behaviour.
 CONSUMER
BUYING PROCESS

Consumers’ purchases are initiated by marketing stimuli.

Marketing Stimuli refer to the elements of the marketing

mix, referred to as the 4Ps.

STIMULUS-RESPONSE MODEL OF BUYER BEHAVIOR

● Black Box
○ Central to the consumers’ decision making.
● As a response to stimuli in the environment, consumers
from their own attitudes and preferences toward
certain brands and products.
STIMULUS-RESPONSE MODEL OF BUYER
BEHAVIOR
 CONSUMER
BUYING PROCESS
 In Buying New Products

ADOPTION PROCESS
● is the mental process an
individual goes through
from awareness of a
new product to the
decision to become a
regular user of that
product.
ADOPTER GROUPS
 Characteristics of Adopter Categories
1. Innovators:
Innovators are risk takers and they seek changes. They are the first one to buy a new
product. They try the product in its initial introduction phase.
2. Early adopters:
Early adopters are prestige oriented opinion leaders. They have higher social status,
financial liquidity, education. They use the product during its late introduction phase of its life cycle.
3. Early majority:
They are the leading segment of the market, about one third of the target market. Early
Majority have above average social status and are not opinion leaders. They come into picture
during the growth phase of the product.
4. Late majority:
Followers of the early majority, typically sceptical about an innovation, have below average
social status and little financial liquidity. They are about 36 percent of the target market. They try
the product in its late growth and maturity phase.
5. Laggards:
Conservative, price conscious segment, aversion to change-agents. They are oldest and
most traditional. They show their willingness to use the product in its late maturity phase and
diminishing phase.
 TYPES OF BUYING
DECISION BEHAVIOR