Prof.P.

Kameswar a Rao
A customer is
 The term customer refers to the purchaser of a product or service
whereas the term consumer refers to the end user of a product or
service.
Factors influencing consumer
behavior
Cultural

Social

Personal

Psychological
personality
Contd..
 Schiffman (2008) as that the unique
dynamic organization of characteristics
of a particular person, physical and
psychological, which influence
behaviour and responses to the social
and physical environment.

 related to the heredity and the

experience of early childhood.
psychographic

Activities

•Interests

•Opinions
 Family
 helps shape an individual's
attitudes and behaviours

 develop political and

religious beliefs, lifestyle
choices, and consumer
preferences
society

outside influences of others

Attitude and life styles
 “the patterns in which people live
and spend time and money.”

 Beliefs and feelings

Values of perception

•Organization,

•Identification,

•Interpretation
 The organization, identification and
interpretation of sensory information in
order to represent and understand the
environment.
 can be shaped by learning, memory and
expectations.
Models of consumer
behavior

Traditional models:
Economic Model

Learning Model

Psychoanalytic Model

Sociological Model
Economic model
 Law of principal of maximum utility
 Law of equimarginal utility enables a
consumer to secure the maximum utility
from limited purchasing power
 Price effect
 Substitution effect
 Income effect
Learning model
 The response of satisfaction reinforces
the relationship

 Learns to associate connection between

stimulus and response which becomes
habit

 Understanding the response of

consumer at the market place
Psychoanalytical model
 Personality of consumers and their
responses

 Consumer behavior is directed by a

complete set of deep seated motives
Sociological model
 As his role, status, interaction, influence,
group relation, lifestyle, income, occup-
ation, place of residence, social class
etc.
Contemporary models
 Harward seth model
 Nicosia
 Webster and wind
 Engel, balckwell and minard model
 Howard sheth model
 Customer lacks well defined evaluative
criteria to judge the product
 Searches for information
 After passing his own personality, his
intake is modified
 Evaluates the brands available
 Seeks greatest potential of satisfying his
motives
example
 Online shopping
Nicosia model
 Proposed by Francesco Nicosia in
1970s
 Incomplete in a number of aspects,
very reductionist

 Variables in the model have not been

clearly defined
 A number of assumptions have been made
that question the validity of this model, for
instance:

 What type of consumer are we talking about?

 The company and the consumer have an
existing relationship? What type?
 Is this for a new product? Is this the first
exchange the consumer has had with the
producer?
example
 Four-wheelers
Engel, Blackwell and minard
model
 Information input

 Information processing

 Decision process stage

 Variables influencing decision making

process
example
 Garment sector
 Social class
 Family
 Lifestyle
 Personality
 Beliefs
 attitudes
 Webster and wind
 partitiones the buying process into
several processes

 processes of decision-making are

determined by environmental and
organizational factors.

 Final buying process rendered as the

mixture of individual and group decision
example

 Automobile manufacturing
• B2B business

• Purchasing tires
conclusion
 Understanding consumer contributes the
best to any organization and for this,
models would work great