Consumer behavior

Consumer behavior refers to the study of how individuals and groups make
decisions about the selection, purchase, use, or disposal of goods, services,
ideas, or experiences to satisfy their needs and desires. It involves
understanding the psychological, social, and economic factors that
influence consumers in their decision-making process. Here are some key
factors and examples of consumer behavior:

1. Cultural Factors:
 Example: In some cultures, the color red is associated with luck and
prosperity. As a result, consumers in those cultures may be more
inclined to purchase products that are packaged or branded in red.
2. Social Factors:
 Example: Social media influencers have a significant impact on
consumer behavior. When a popular influencer recommends or
endorses a product, their followers may be more likely to purchase it,
driven by the desire to emulate the influencer's lifestyle.
3. Personal Factors:
 Example: Personal income and individual lifestyles can influence
consumer behavior. For instance, a person with a high income may be
more willing to purchase luxury goods or premium services.
4. Psychological Factors:
 Example: Perception plays a role in consumer behavior. If a
consumer perceives a product to be of high quality, they may be
more willing to pay a higher price for it. Marketing strategies often
focus on shaping consumers' perceptions.
5. Motivation:
 Example: Discounts and promotions are designed to tap into
consumers' motivation to save money. Limited-time offers create a
sense of urgency, motivating consumers to make a purchase sooner
rather than later.
6. Learning and Experience:
 Example: Consumers may develop brand loyalty based on positive
experiences with a particular product. For instance, someone who has
always had good experiences with a certain brand of smartphone
may continue to choose that brand when upgrading.
7. Perception:
 Example: The way a product is presented can influence how it is
perceived. If a product is marketed as "all-natural" or "organic,"
consumers may perceive it as healthier, even if the actual nutritional
differences are minimal.
8. Attitudes and Beliefs:
 Example: A consumer's attitude toward a brand or product can be
influenced by their beliefs and values. If a company is known for
environmentally friendly practices, consumers who prioritize
sustainability may develop a positive attitude toward that brand.
9. Reference Groups:
 Example: A teenager's clothing choices may be influenced by their
peer group. If a particular style is popular among their friends, they
may be more likely to adopt that style to fit in with the group.
10.Online Shopping Behavior:
 Example: The rise of e-commerce has changed consumer behavior,
with many people now researching products online, reading reviews,
and comparing prices before making a purchase decision. Online
recommendations and ratings can heavily influence choices.

Understanding these factors helps businesses tailor their marketing

strategies to better connect with their target audience and meet consumer
needs effectively.
In the context of consumer behavior, self-concept refers to the way individuals
perceive and evaluate themselves in relation to various products, brands, and
consumption activities. It involves the beliefs and attitudes that consumers hold
about their own identity and how they express it through their purchasing decisions.
Self-concept plays a significant role in shaping consumer behavior and influencing
choices in the marketplace.

There are two primary components of self-concept in the context of consumer

behavior:

1. Real Self:
 This represents how an individual currently perceives themselves. It includes
aspects such as personality, values, lifestyle, and other characteristics that
define who they are. The real self influences the types of products and brands
a person may choose to align with their existing self-image.
2. Ideal Self:
  This represents the individual's vision of their desired or ideal self. It reflects
the aspirations and goals someone has regarding their identity. Consumers
may choose products or brands that they believe will help them move closer
to their ideal self, allowing them to express who they want to become.
Consumer decision-making is a complex process influenced by various factors, and
different views or models have been proposed to understand and explain this
process. Here are four perspectives or views of consumer decision-making:

1. The Economic View:

 This view is rooted in traditional economic theory and assumes that
consumers make rational decisions to maximize their utility. It suggests that
consumers weigh the costs and benefits of different alternatives and make
choices that provide the greatest satisfaction. The economic view often
simplifies decision-making as a straightforward and logical process.
2. The Psychological View:
 The psychological view emphasizes the cognitive and emotional factors that
influence consumer decisions. It recognizes that consumers are not always
entirely rational and may be influenced by psychological processes such as
perception, learning, motivation, and attitudes. This perspective acknowledges
the role of emotions, perceptions, and individual differences in shaping
consumer choices.
3. The Sociocultural View:
 This view emphasizes the impact of social and cultural factors on consumer
decision-making. It recognizes that individuals are members of various social
groups and are influenced by family, friends, reference groups, and cultural
norms. Social and cultural influences play a crucial role in shaping preferences,
attitudes, and behaviors. The sociocultural view considers the broader social
context in which consumer decisions occur.
4. The Postmodern View:
 The postmodern view challenges the idea of a single, rational decision-making
process. It acknowledges the diversity of consumer experiences and the
influence of postmodern cultural trends. This perspective suggests that
consumers construct their identities through consumption and that their
choices are influenced by subjective interpretations and personal narratives. It
emphasizes the importance of lifestyle, self-expression, and individuality in
consumer decisions.
The Tri-Component Model of Attitude, also known as the ABC Model, was developed
by psychologist Richard E. Petty and John T. Cacioppo. It suggests that attitudes
consist of three components: Affective, Behavioral, and Cognitive. Here's an
explanation of each component with an example:

1. Affective Component:
  This component refers to the emotional or feeling segment of an attitude. It
represents an individual's emotional reaction or response to a particular
object, person, idea, or situation.
Example: Consider a person who has a positive affective component toward a new
smartphone. This individual may experience feelings of excitement, joy, and
satisfaction when thinking about or using the smartphone. The positive emotions
associated with the phone contribute to the affective component of their attitude.
2. Behavioral Component:
 This component involves the actions or observable behaviors that result from
an attitude. It reflects the way an individual expresses their attitude through
their actions or intentions.
Example: Continuing with the smartphone example, the behavioral component
might involve the person actively recommending the smartphone to friends, posting
positive reviews online, or purchasing accessories for the device. These observable
behaviors demonstrate the individual's actions aligned with their positive attitude
toward the smartphone.
3. Cognitive Component:
 The cognitive component is related to the beliefs, thoughts, and knowledge
an individual holds about the attitude object. It encompasses the person's
understanding and evaluation of the object based on information and
experiences.
Example: In the case of the smartphone, the cognitive component could involve the
person's beliefs about the phone's features, brand reputation, and overall quality.
They may have researched the phone, compared it to other models, and formed
opinions based on factual information. These cognitive evaluations contribute to the
cognitive component of their attitude.

In summary, the Tri-Component Model suggests that attitudes are multi-faceted,

consisting of emotional reactions (affective), observable actions (behavioral), and
cognitive evaluations (cognitive). Understanding these components helps researchers
and marketers analyze and predict how individuals will respond to and interact with
various objects, ideas, or situations based on their attitudes.
1. Routine Decision-Making:
 Definition: Routine decision-making occurs when consumers make frequent,
low-cost, and low-risk purchases without investing much time or effort in the
decision process. These are habitual, everyday purchases where consumers
may not extensively evaluate alternatives.
 Example: Buying everyday items like toothpaste, shampoo, or laundry
detergent often involves routine decision-making. Consumers may have a
preferred brand or simply choose a familiar option without much
consideration.
2. Limited Decision-Making:
  Definition: Limited decision-making falls between routine and complex
decision-making. It involves moderate effort and consideration, usually for
products that are moderately priced or purchased occasionally.
 Example: Consider purchasing a laptop. While it's not an everyday item, it's
not a high-involvement product like a house or a car either. Consumers may
compare features, prices, and reviews before making a decision, but the
process is not as extensive as with complex decision-making.
3. Complex Decision-Making:
 Definition: Complex decision-making is associated with high-involvement
purchases that are infrequent, expensive, and carry a high level of risk.
Consumers invest considerable time and effort in information gathering,
evaluation, and decision-making for these purchases.
 Example: Buying a house is a complex decision that involves extensive
research, visits to multiple properties, considerations of financing options, and
legal processes. Similarly, choosing a university for higher education involves a
complex decision-making process due to the significant investment of time
and money.
4. Impulse Buying:
 Definition: Impulse buying refers to unplanned and spontaneous purchases
made without much thought or consideration. These decisions are often
driven by emotions, promotions, or situational factors.
 Example: Purchasing a candy bar at the checkout counter or buying a
fashionable accessory on a whim are examples of impulse buying. These
decisions are usually made quickly and may not involve a deliberate
evaluation of options.
5. Brand Loyalty:
 Definition: Brand loyalty occurs when consumers consistently choose a
particular brand over others due to a strong attachment, positive experiences,
or a sense of trust.
 Example: A consumer who always buys a specific brand of athletic shoes or a
particular brand of smartphone demonstrates brand loyalty. These decisions
are often influenced by a positive history with the brand and a belief in its
reliability.

Understanding these types of consumer purchase decisions is essential for

businesses to tailor their marketing strategies and messages to match the level of
involvement and decision complexity associated with their products or services.