Chapter-8

Consumer Behavior
 Meaning

 An orderly process whereby

◦ An individual interact with his environment
◦ For the purpose of making market decisions
◦ Relating to products & services
 Expressed in the form of buying patterns
◦ Who influences the buying decision
◦ Who makes the buying decision
◦ Who makes the actual purchase
◦ Who ultimately uses the product
Definition  Consumer Behavior is
all psychological,
social and physical
behavior of potential
customers as they
become aware of,
evaluate, purchase,
consume and tell
other people about
products & services.
 Types of Consumers

 Habit Determined Group

 Cognitive Group (conscious)
 Emotional Sector Group
 New Group
 Impulsive Group
Determinants of Consumer Behavior

Economic

Socio-Cultural

Personal

Psychological

Buyer
1. Economic Determinants
 Personal Income
 Disposable Income
 Discretionary Income
 Family Income
 Income Expectations
 Consumer’s Liquid Assets
 Consumer Credit
 Standard of Living
 Govt. Policy (tax) & Economic Conditions
2. Sociological Factors
 Family
 Reference Groups (social, economic,
professional groups with whom the
customer interacts)
 Opinion Leaders
(Buzz Marketing/online
social marketing)
 Roles & Status
 Social Class
 Culture
Family

User Initiator

Key
Family
Decision
Buyer Roles Influencer

Decider
3. Psychological Determinants

Motivation

Beliefs &
Attitudes
Perception Learning
I. Motivation
 Has close relationship with the behavior
of human being
 Motivation is something that drives or
encourages a person into action and
continues him in the course of action.
Maslow’s Hierarchy of Needs

Self
Actualization

Self-Esteem

Social

Safety

Physiological
II. Perception & Image
 A process by which people select,
organize and interpret information to
form a meaningful picture of something
 For same stimulus, people form different
perceptions because of:
◦ Selective attention
◦ Selective distortion
◦ Selective retention
III. Learning
 Any change in behavior which
comes as a result of experience.
 Eg.: Buying a digital camera
IV. Beliefs & Attitudes
 Beliefs are descriptive thought that a
person has about something.
◦ If beliefs are wrong and prevent purchase, the
marketer will want to launch a campaign to
correct them.
 Attitude is a person’s relatively consistent
evaluations, feelings and tendencies
toward an object or idea.
◦ Hard to change.
4. Personal Determinants
Personal Factors

Age and Life Cycle Stage Occupation

Education

Lifestyle Personality
Buying Motives

 Buying motives are defined as ‘all the

impulses, desires and considerations’
which persuade or motivate a buyer to
purchase a specific product.
 Buying
Motives

Product Patronage
Motives Motives

Emotional Rational Emotional Rational

Motives Motives Motives Motives
 Buying Motives…

Product Motives
Product buying motives refer to those influences and
reasons, which prompt a buyer to choose a particular
product in preference to other products. They include
the physical attraction of the product (i.e. the design,
shape, dimension, size, colour, package, performance,
price etc. of the product) or the psychological attraction
of the product (i.e. the enhancement of the social
prestige or status of the purchaser through its
possession), desire to remove or reduce the danger or
damage to life or body of the possessor, etc. In short,
they refer to all those characteristics of a product, which
induce a buyer to buy it in preference to other products.
 Buying Motives… (Product Motives)

Rational Emotional Motives

o Safety or o Pride or Prestige
Security o Emulation or
Imitation
o Economy
o Affection
o Relatively low
o Comfort or desire
price for comfort
Emotional
o Suitability o Ambition
o Utility or o Desire for
versatility distinctiveness or
o Durability of individuality
the product o Desire for
recreation or
o Convenience of pleasure
the product o Hunger and thirst
o Habit
Rational
Buying Motives…
Patronage Motives
Patronage buying motives refer to those
considerations or reasons, which prompt a buyer
to buy the product wanted by him from a
particular shop or company in preference to
other shops. In other words, they are those
considerations or reasons, which make a buyer,
patronize a particular shop in preference to other
shops while buying a product.
 Buying Motives… (Patronage Motives)

Rational Emotional
o Convenience Motives
o Low price o Appearance of the
charged by the
shop
shop
o Credit facilities o Display of goods in
offered Emotional the shop
o Credit facilities o Recommendation
offered of others
o Efficiency of o Imitation
salesmen
o Prestige
o Wide choice
o Treatment o Habit
o Reputation of the
shop5
Rational
 The Buyer Decision Process

Need Evaluation Post

Information Purchase
Recognition of purchase
Search decision
alternatives behavior
 The Buyer Decision Process
Need Recognition

 Occurs when the buyer recognizes a

problem or need triggered by:
◦ Internal stimuli
◦ External stimuli
 The Buyer Decision Process…
Information Search
Sources of Information

 Personal sources—family and friends

 Commercial sources—advertising,
Internet
 Public sources—mass media, consumer
organizations
 Experiential sources—handling,
examining, using the product
 The Buyer Decision
Process…
Evaluation of Alternatives
 How the consumer processes
information to arrive at brand choices
The Buyer Decision Process
Purchase Decision

 The act by the consumer to buy the

most preferred brand
 The purchase decision can be affected
by:
◦ Attitudes of others
◦ Unexpected situational factors
The Buyer Decision Process…
Post-Purchase Decision
 The satisfaction or dissatisfaction that the
consumer feels about the purchase
 Relationship between:
◦ Consumer’s expectations
◦ Product’s perceived performance
 The larger the gap between expectation and
performance, the greater the consumer’s
dissatisfaction
 Cognitive dissonance is the discomfort caused
by a post purchase conflict
The Buyer Decision Process…
Post-Purchase Decision

Customer satisfaction is a key to

building profitable relationships with
consumers—to keeping and growing
consumers and reaping their customer
lifetime value
Behaviour of Indian Consumer
Bargaining
Price Conscious
Role of Women
Changing Consumption Pattern
Credit
Thank You