Consumer Behavior

Consumer
• Consumer – A consumer is a person who evaluates, uses
and disposes a good or service to satisfy a need.

• Customer – Customer is the person, who actually

purchases the product.

• Consumers can be divided into two types –

 Household consumers – Who buy products for their own
consumption.
 Industrial consumers – Who buy products for further
value addition, as inputs for manufacturing or for
retailing.
 Consumer Behavior
• Consumer behaviour can be defined as the
decision making process and physical activity
involved acquiring, evaluating, using and
disposing of goods and services.

• Consumer behavior refers to the behavior that

consumer display in searching, purchasing,
using, evaluating and disposing of products and
services that they expect will satisfy their needs.
 What Influences
Consumer Behavior?

1.Cultural factors
2.Social factors
3.Personal factors
4. Psychological Factor
1. Cultural Factor

A. Cultural
• “The set of basic
values, perception,
wants and behaviors
learned by a
member of society
from family and
other institutions.”
 Cont’d…
B. Subcultures
• Each culture further comprises of various
subcultures such as religion, age, geographical
location, gender (male/female), status etc.
C. Social Classes
 “The society’s relatively permanent and ordered divisions
whose members share similar values, interests and
behaviors.”

• Upper uppers
• Lower uppers
• Upper middles
• Middle
• Working
• Upper lowers
• Lower lowers
 2.Social Factors

(a)Reference groups
(b)Family
(c) Varied Roles and Status
 Cont’d…
(a)Reference Groups
• “Group of individuals who directly or indirectly influence person’s
buying behavior and forms person’s attitudes.”

Primary Group - consists of individuals one interacts with on a regular

basis.

Primary groups include:

Friends
Family Members
Relatives
Co Workers
 Secondary Groups - Secondary groups share indirect
relationship with the consumer. These groups are
more formal and individuals do not interact with
them on a regular basis,
 Example - Religious Associations, Political Parties,
Clubs etc.
(b)Family
Family is a universal and multi-functional
institution that shapes one’s basic beliefs,
behavior and attitudes. Family members can
strongly influence buyer’s behavior.
 (c) Varied Roles and Status

 A role consist of the  The general esteem given to

activities people are the role by the society is
expected to perform termed as status
according to the persons
around them.
3.Personal
factors
Demographic Factors

Lifestyle

Occasional Factors
 (A) Demographic Factors
 Demographic Factors includes – Customer’s
 Age
 Gender
 Education
 Occupation
 Income
 Marital Status
 Family Size
 Above mentioned Characteristic the Purchase and
Consumption Behavior.
 (B) Lifestyle
• “A person’s pattern of living as expressed in his/her
activities, interests and opinions.”

• It reflects the person’s whole pattern of acting and

interacting with the world.
 (C) Occasional Factors
• Purchase Occasion Can also be related
to certain situations such as…
 Birth
 Marriage
 Buying New House
 Marriage Anniversary
 Diwali
 Christmas
 Mother’s Day
 Father’s Day
 Friendship Day
 4. Psychological Factors

a. Motivation

b. Perception

c. Learning

d. Beliefs and Attitudes

 Motivation
“Motivation refers to a process by which a
person’s efforts are energized, directed
and sustained toward attaining a goal.”
 Psychologists have proposed different theories of
human motivation. Two of the most important
of them are:
1. The theory by Sigmund Freud
2. Hierarchy of needs theory by Abraham Maslow.
 Perception
“The process by which people select, organize
and interpret information to form a
meaningful picture of the world.”
 Learning
• “Change in an individual’s behavior arising
from observation and experiences.”

• The marketer can associate their Products

with cues and drives in their advertisement
that can motivate to respond( By
purchasing products)
 Beliefs & Attitudes
o A descriptive thought o A person’s consistently
that a person holds favorable or
about something. unfavorable
evaluations, feelings
and tendencies toward
an object or ides.

If Mr. Stephen hold attitude such as “buy the best”,

and Dell laptops are just according to the Stephen’s
attitudes, he will buy that one without any strong
recommendation.
Consumer Buying
Process