Consumer/ Buyer

Behaviour

Decision Making Process

Basic Questions in Understanding Consumers

 Who is the consumer? What are his

demographics? Where does he stay? SEC? Who
can influence his decision?
 Why does she/he buy the product? What are the
beliefs? Attitude towards the product? What need
does the prod. fulfill?
 When does she/he buy the prod.? Daily/Monthly?
When does she use the prod./brand?
 Where does she/he buy the brand from? Where
else she may want to buy it from? Where does she
use the prod./brand? Outside home/ Inside?
MASLOW’S HIERARCHY OF NEEDS

SELF ACTUALISATION NEEDS

need to reach one’s full potential

ESTEEM NEEDS
prestige, status, self respect

SOCIAL NEEDS
affection, friendship, belonging

SAFETY NEEDS
security, protection

PHYSIOLOGICAL NEEDS
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food, water, shelter, air, sex
MASLOWS HIERARCHY OF NEEDS

NEED PRODUCT APPEAL

Self Actualisation GOLF LESSONS Realise your full potential

Esteem LUXURY CAR Be in control of the road

Social RING Show her you care

Safety TYRES Bounces of hazards

Physiological FRUIT JUICE Natural energy source

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Factors Effecting Consumer Behaviour

 Economics – demand, supply, income, purchasing

power
 Psychology – needs and motivation, personality,
perception, learning attitudes
 Sociology – society, social class, power, esteem,
status
 Socio psychology – group behaviour, conformity to
groups norms, group influences, role leader
 Cultural anthropology – values, beliefs, caste
system, attitude towards wealth, joint family system
Consumer Behaviour

 The purchase decision can be long and

detailed that includes extensive search,
brand comparison, evaluation and other
activities
 Some could be incidental or impulse
purchases

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Buyer Behaviour Models

NEED RECOGNITION

INFORMATION SEARCH

EVALUATION OF
ALTERNATIVES

SELECTION OF
BRAND OUTLETS

POST-PURCHASE
REACTIONS
Consumer’s Decision Making Process

 A set of fundamental steps that the consumer

experiences during and after the purchase
process. Advertising can affect the
consumer’s attitude at any stage of this
process

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conti…

Personal Interpersonal Non Personal Purchase Post purchase

processes processes influences decision evaluation

PERCEPTION POSITIVE
FAMILY TIME EVALUATION
LEARNING & OR
SOCIETY PLACE OF
PERSUASION NEGATIVE
CULTURE ENVIRONMENT ALTERNATIVES
MOTIVATION EXPERIENCE

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Consumer decision making process

 Personal processes govern the way we

discern data and translate them into feelings,
thoughts beliefs and actions
 Personal processes – perception, learning
and persuasion and the motivation process

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conti..

Mental processes and behaviour are affected

by two sets of influences
 Interpersonal – family, society, culture
 Non personal - environment, time and
place (out of the consumer’s control)

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conti..

Evaluation of alternatives - choosing brand,

size, shape, styles, colours. After the
purchase, the post purchase evaluation will
affect all the subsequent purchase

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 Indian Consumer Behaviour – SEC
 SOCIO ECONOMIC CLASSES
 These are defined using Education & Occupation of Chief
Wage Earner of the household (CWE)
 Ex. A graduate with an Executive position in a large
organisation would be called SEC A
 Ex. An illiterate manual labourer’s household would fall into
SEC E
 The higher SECs look at products & services from an angle
different than the lower SECs.
 Given that Indians by their very nature are high savings-
oriented
 All most all SECs look in value for money in whatever they buy
 A brand name for different SECs will hold different value and
quality.
 Indian Consumer Market

10%

10%
Upper Class
40%
20%
Upper Middle Class
40%
20% Lower Middle Class

50% Lower Class 10%

Fig.1 India- Developing Country Fig.2 Developed Countries

Personal process in consumer behaviour

1. Create awareness that the product exists

(perception)
2. Provide compelling information about the
product for prospective consumers to find
interest and make an informed decision
(persuasion and learning)
3. Stimulate the consumer’s desire to satisfy
their needs and wants by trying the product
(motivate)

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The Consumer perception process

Perception - the personalized way in which

a consumer senses, interprets and
comprehends the various stimuli

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The Consumer perception process

Physiological Psychological
Physical Cognition Mental files
screens
data (stimuli) screens awareness memory
(sensory) (emotional)
Ad/ commercial
Sight Personality Awareness
Promotion
Hearing Self concept Information
New item
Touch Attitudes Needs
Product / store
Taste Beliefs Npn Awareness Wants
Price tag
Smell Habits
Conversation

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The Consumer perception process

stimulus – a physical information we receive

through the senses

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Perceptual screens

Before any data can be perceived it has to

penetrate a set of perceptual screens
subconscious filters that shield from
unwanted messages
Physiological screens – five senses – data
detected and measured - intensity and
dimension of the physical stimuli

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Perceptual screens

Psychological screens – evaluate, filter and

personalise information according to
subjective emotional standards. Evaluate
data based on innate factors such as
attitudes, beliefs, self concept, interests,
past experiences and lifestyles

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Perceptual screens

Selective perception – consumers

unconsciously screen out or modify many of
the sensations that bombard, rejecting
those that conflict with our experiences,
needs, wants desires, attitudes and beliefs.

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Perceptual screens

Cognition – comprehending the stimulus

Mental files – memory that organises itself on
the basis of price, quality, features. The file
cannot hold more than 7 brand names
because of limited memory

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The purchasing process

 Problem recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Post evaluation

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Problem recognition

 A problem is present when the consumers

desired state is different than the actual state.
 It is the recognition of a need or want

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Needs

 A problem is present when the consumers

desired state is different than the actual state.
 It is the recognition of a need or want

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Problem recognition

 It could be to replenish supplies, simple or routine

eg toothpaste
 Dissatisfaction with the current product or service
being used
 New needs and wants, triggering problem
recognition eg first job in professional career that
requires a new wardrobe
 Related product purchase – camera –
accessories like a camera bag or additional
lenses

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