1.

consumer buying behavior

1.1 what is consumer buying behavior
★ Consumer behaviour in marketing refers to the actions and

decisions that people make when they are purchasing or using

products. Consumer behaviour towards a product includes

everything from the initial decision to buy it, to how they use it

and whether or not they continue to purchase it in the future.

★ The study of how individuals select, get, use, and dispose of

things, experiences, ideas, and services to suit their needs, as well

as the repercussions these actions have on the consumer and

society, is known as consumer behaviour. Behavior of buying

products by individuals and families for their personal

consumption. Consumer behaviour, in the words of Anderson &

Golden (1984), entails the psychological procedures that

consumers go through when they identify their wants, seek for

solutions to those needs, decide what to buy, evaluate

information, develop plans, and carry out those plans.

Consumer buying behaviour is a culmination of the user's

preferences, views, goals, and decisions on the consumers

response

It can be defined as the study of all factors that influence consumers'

choices, actions, and attitudes toward the marketplace. The field of

consumer behavior in marketing is essential because it can help

companies understand their customers better, leading to more

significant sales and profits.

4 Types of Consumer Behavior

Complex buying behavior.

Dissonance-reducing buying behavior.

Habitual buying behavior.

Variety seeking behavior.

consumer buying theory
1.2 What Is Consumer buying Theory?
Consumer theory is the study of how people decide to spend their money
based on their individual preferences and budget constraints. A branch of
microeconomics, consumer theory shows how individuals make choices
subject to how much income they have available to spend and the prices
of goods and services.
1,Understanding how consumers operate makes it easier for vendors to
predict which of their products will sell more and enables economists to
get a better grasp of the invisible hand, the unseen forces that shape the
economy.
★ According to this consumer behavior theory, a buyer's preferred
choice of brand is informed by motives; alternative choices, or
courses of action; and any decision mediators that match the motives
with those alternatives, such as whether the buyer thinks coffee is
better in the morning or the evening.
★ Consumer theory is the study of how people decide to spend their
money based on their individual preferences and budget constraints.
Building a better understanding of individuals’ tastes and incomes is
important, because these factors impact the shape of the overall economy.
Though useful, consumer theory is not flawless, as it is based on a
number of assumptions about human behavior
★ Understanding Consumer Theory
Individuals have the freedom to choose between different bundles of
goods and services. Consumer theory seeks to predict their purchasing
patterns by making the following three basic assumptions about human
behavior:

★ Utility Maximization – Individuals are said to make calculated

decisions when shopping, purchasing products that bring them the
greatest benefit, otherwise known in economic terms as “maximum
utility.”
★ Nonsatiation – People are seldom satisfied with one trip to the shops
and always want to consume more.
★ Decreasing Marginal Utility – Consumers lose satisfaction in a
product the more they consume it.
★ Working through examples and/or cases, consumer theory usually
requires the following inputs:
★ A full set of consumption options
★ How much utility a consumer derives from each bundle in the set of
options
★ A set of prices assigned to each bundle
★ Any initial bundle the consumer currently holds
Advantages of Consumer Theory
★ Building a better understanding of individuals’ tastes and incomes is
important, because it has a big bearing on the demand curve, which is
the relationship between the price of a good or service and the
quantity demanded for a given period of time, and on the shape of the
overall economy.
★ Consumer spending drives a significantly large chunk of gross
domestic product (GDP) in the U.S.
★ If people cut down on purchases, demand for goods and services will
fall, squeezing company profits, the labor market, investment, and
many other things that make the economy tick.
★ Consumer choice theory is taken very seriously, influencing
everything from government policy to corporate advertising.
★ Example of Consumer Theory
★ Let’s look at an example. Kyle is a consumer with a budget of $200
who must choose how to allocate his funds between pizza and video
games (the bundle of goods). If a pizza costs $10 and a video game
cost $50, Kyle could buy 20 pizzas, or four video games, or five
pizzas and three video games. Alternatively, he could keep all $200 in
his pocket.
★ How can an outsider predict how Kyle is most likely to spend his
money? Consumer theory can help give an answer to this question.
★ Limitations of Consumer Theory
★ Challenges to developing a practical formula for this situation are
numerous. For instance, as behavioral economics points out, people
 are not always rational and are occasionally indifferent to the choices
available.
★ Some decisions are particularly difficult to make because consumers
are not familiar with the products. There could also be an emotional
component involved in the decision-making process that cannot be
captured in an economic function.
★ The many assumptions that consumer theory makes have caused it to
come under criticism. While its observations may be valid in a perfect
world, in reality there are numerous variables that can expose as
flawed the process of simplifying spending habits.

★ Going back to the example of Kyle, figuring out how he will spend
his $200 is not as clear-cut as it might at first seem. Economics assumes
that he understands his preferences for pizza and video games and can
decide how much of each he wants to purchase. It also presumes that
there are enough video games and pizzas available to satisfy Kyle’s
choices. Of course, none of these assumptions may be correct, even if
generally they are.

★ What Does Consumer Theory Tell Us?

★ Consumer theory attempts to predict how people will spend their
money by looking at their budget constraints and individual
preferences. Its weakness is that it assumes that people will always
make rational choices.
★ Why Is Consumer Theory Important?
Because consumer spending is the engine of the U.S. economy,
understanding how consumers may spend their hard-earned money helps
businesses decide where to allocate their resources.
★ What Is the Demand Curve?
★ The demand curve looks at the relationship between the cost of a
good or service and the amount needed to satisfy consumer
consumption over a stated period of time. It helps determine the shape
of the economy.
★ What Does Consumer Theory Tell Us?
★ Consumer theory attempts to predict how people will spend their
money by looking at their budget constraints and individual
preferences. Its weakness is that it assumes that people will always
make rational choices.
★ Why Is Consumer Theory Important?
★ Because consumer spending is the engine of the U.S. economy,
understanding how consumers may spend their hard-earned money
helps businesses decide where to allocate their resources.
★ What Is the Demand Curve?
★ The demand curve looks at the relationship between the cost of a
 good or service and the amount needed to satisfy consumer
consumption over a stated period of time. It helps determine the shape
of the economy.
★ Indifference Curves in Economics:
★ What Do They Explain?
★ An indifference curve is a graph used in economics that represents
when two goods or commodities would give a consumer equal
satisfaction and utility. more
★ Macroeconomics Definition, History, and Schools of Thought
★ Macroeconomics studies an overall economy or market system, its
behaviors, the factors that drive it, and how to improve its
performance. more
★ Microeconomics Definition, Uses, and Concepts
★ Microeconomics is a branch of economics that analyzes market
behavior of individuals and firms in order to understand their
decision-making processes. more
★ Keynesian Economics Theory: Definition and How It's Used
★ Keynesian economics comprise a theory of total spending in the
economy and its effects on output and inflation, as developed by John
Maynard Keynes. more
★ Welfare Economics Explained: Theory, Assumptions, and Criticism
★ Welfare economics focuses on finding the optimal allocation of
economic resources, goods, and income to best improve the overall
good of society. more
★ Game Theory
★ Game theory is a framework for modeling scenarios in which
conflicts of interest exist among the players. more

1.3 FACTORS INFLUENCING CONSUMER

Personal factors:-
The judgments and purchasing habits of each consumer
are influenced by their unique traits. Consumer
behaviour is influenced by a variety of individual
characteristics, including age, income, and personality. A
person's lifestyle, morals, surroundings, interests, and
consumer habits change during his or her life. Age has a
direct impact on his living circumstances, the kind of city
in which he lives, and the area of the nation in which he
lives. How a person chooses to live will have a
significant impact on the products they buy. As a result
of a person's communicative qualities and their impacts
in continual operation, a person's unique set of traits and
characteristics is referred to as their "personality." An
individual notion refers to a person's view of his or her
own self. These ideas have a significant impact on how
a person thinks and behaves. His ability to buy and
acquire positive attitudes as a consumer is influenced by
his personality.

Social factors
Consumers' reactions are greatly influenced by the social
context in which they operate. It may be subdivided into
several categories, such as recommendation clubs,
family, and so on. A character might be impacted by a
community to which he has no connection but want to be
affiliated. Buying decisions are influenced by inspiration
from others and members of the incentive group will
work to put this into action. When it comes to making
decisions, the home is the most prevalent and most
controlling influence. In the context of a family, a
person is able to grow, shape his personality, and take
advantage of opportunities. Further, it supports concepts
and techniques on consumer attitudes, the knowledge of
trademarks and things that men buy. Cultural factor
Cultural considerations fall under the broad category of
the social environment in which a buying is being
considered. This has a significant impact on how a
consumer interprets, behaves and expects products. It
may be broken down into sub-cultures, social classes,
and more. In general, subcultures are made up of a wide
range of people who share a same way of life and
participate in the same cultural practises. When it comes
to culture, each person has their own sub-cultures.
Depending on the type of civil rule, social ties are
characterized as discrete affiliations and listed toward
one another. People that belong to the same group tend to
have comparable feelings, concerns, and emotions.
Few scientists believe that attitudes may be used as a
categorization system and that they can be linked to the
civic divisions of a population. Parishodh
JournalVolume XI, Issue VIII, August/2022
Emotional constituents
Emotional elements such as Perception, Impulse,
Faiths and beliefs, Knowledge and trust have a
significant effect in consumer behaviour. To put it
simply, perception is the process through which a person
makes meaning of what he or she is presented with.
Personality changes occur as a result of how and when a
circumstance is perceived at each given point in time.. To
put it another way, impulse is a desire that is so strong
that it compels the buyer to make a purchase. Impulse
has a direct correlation to demand, and is transmitted in
the same manner as shown in purchase decision
processes. A person's vow to a certain person, a brand, or
an activity is what they mean by "faith." With his
background, he gains the information and concepts that
he uses to make a purchase. For many individuals,
having a strong belief system is a significant personality
feature. A brand's image is re-enforced using this method.
How people respond to new information depends on how
much they have learned in the past. It is via the things
one does that one is able to broaden their knowledge
base. It's all about what you do, and what you learn from
it. Ultimately, consumer confidence in a store is built on
their view of that merchant's goods. ― They also shop
more often if they have faith in a certain product. It is
important to remember that people are unique in their
personalities and their trust is based on a variety of
factors, including the quality, quantity, weight, and
security of a product's features. IX.

1.4 THE BUYER'S DECISION PROCESS

The consumer decision process also called the buyer
decision process, helps markets identify how consumers
complete the journey from knowing about a product to
making the purchase decision. Understanding the buyer
buying process is essential for marketing and sales. The
consumer or buyer decision process will enable them to
set a marketing plan that convinces them to purchase the
product or service for fulfilling the buyer’s or consumer’s
problem.
The consumer decision process is composed of problem
recognition, search, evaluation, and purchase decision.
Post-purchase behavior is the result of satisfaction or
dissatisfaction that the consumption provides. The
buying process starts when the customer identifies a need
or problem or when a need arises. It can be activated
through internal or external stimuli.
5 Stages of the consumer decision process (buyer
decision process) are;
★ Problem Recognition or Need Recognition.
★ Information Search.
★ Evaluation of Alternatives.
★ Purchase Decision.
★ Post-Purchase Evaluation.
1.5 consumer buying role
Definition
Buying roles refer to the activities that one or more
person(s) might perform in a buying decision. Six buying
roles can be distinguished:

Initiator: the person who first suggests or thinks of the

idea of buying the particular product or service
Influencer: a person whose views influence other
members of the buying center in making the final
decision
Decider: the person who ultimately determines any
part of or the entire buying decision-whether to buy, what
to buy, how to buy, or where to buy;
Buyer: the person who handles the paper work of the
actual purchase
User: the person(s) who consumes or uses the product
or service
Gatekeeper: the person(s) who controls information or
access, or both, to decision makers and influencers.[1]
★ Buyer: the person who handles the paper work of the
actual purchase. User:
The person(s) who consumes or Th
uses the product or
service. Gatekeeper:
the person(s) who controls information or
access, or both, to decision makers
and influencers.
Buying Roles | Universal
1.6 support your paper by your personal,campany
or work life experience
The work-life balance has grown into much more
than just an appealing concept. An increasing
number of companies are relying on their
employees to lead a more balanced lifestyle, as
balanced, happy employees are ultimately more
productive and motivated. If a company – either
consciously or unconsciously – destroys an
employee’s private life with too much overtime or
an unnatural amount of pressure, it will inevitably
result in dissatisfaction and stress that can then lead
to health problems, decreased productivity, and
alienation from the company.
Today’s working world poses many challenges to
employees. While some careers allow a relaxed
relationship between work and private life, many
others demand significant reductions in the area of
leisure and family. According to Statista, the United
States ranks 30th amongst countries with the best
work-life balance. This is mostly because a large
portion of Americans works overtime on a regular
basis.

With this in mind, employers are becoming more

aware of the growing expectations of their
workforce in terms of the work-life balance.
Companies are now considering how to achieve a
work-life balance and implementing targeted
measures to promote this. The goal is not only to
make employees more productive, but also happier
and more balanced.

What is the work-life balance all about?

The work-life balance has grown into much more
than just an appealing concept. An increasing
number of companies are relying on their
employees to lead a more balanced lifestyle, as
balanced, happy employees are ultimately more
productive and motivated. If a company – either
consciously or unconsciously – destroys an
employee’s private life with too much overtime
or an unnatural amount of pressure, it will
inevitably result in dissatisfaction and stress that
can then lead to health problems, decreased
productivity, and alienation from the company.

: work-life balance
The work-life balance definition sets out to achieve
an ideal balance between a person’s working life
and private life. It is a concept in which the
maximum happiness of an employee acts as the
fuel for productive and fulfilling work, for which
both employer and employee are responsible.

The general dissatisfaction of employees

worldwide signifies how far from achieving a
work-life balance we really are. However, the
working world is slowly changing as more and
more companies are beginning to welcome the idea
and are also specifically promoting it.
1.7 what do you recommend to minimize impact of
the factor on the consumer buying?
★ By identifying and understanding the factors that
influence their customers, brands have the opportunity
 to develop a strategy, a marketing message (Unique
Value Proposition) and advertising campaigns more
efficient and more in line with the needs and ways of
thinking of their target consumers, a real asset to
better meet the needs of its customers and increase
sales. Introduction Consumer buying behavior refers
to the selection, purchase and consumption of goods
and services for the satisfaction of their wants
★ For a successful consumer oriented market
service provider should work aspsychologist to procure
consumers. Bykeeping in mind affecting factors things
canbe made favorable and goal of consumersatisfaction
can be achieved. Study ofconsumer buying behaviour is
gate way to success in market.
★ creating awarness about amarket,to reduce factor that
influence consumer buying behavior.
★ study what the consumer need and what taboo for
cultural people and society for hite to buying
★ reducing gap of buying knowlege by creating sutiable
respones from seller to buyer exchanging information.
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