3.FM Consumer Behavior

Fashion merchandise
CONSUMER BEHAVIOR
Fashion Merchandising 1
consumer
A consumer refers to individuals who buy for
themselves or their family .
whereas a customer can also mean the retailer or

person who buys from the manufacturer, etc.
CONSUMER BUYING BEHAVIOR
► Refers to the buying behaviour of final
consumers -individuals & households

who buy goods and services for personal
consumption.
CONSUMER BUYING BEHAVIOR
► Factors Influencing Consumer
Behavior:
■ Cultural
■ Social
■ Personal
■ Psychological
Cultural Factors
► Culture
► Sub – culture
► International Culture
► Social Class
Cultural Factors
► Culture is the most basic determinant
of a person’s wants and behavior.

► Culture is expressed through tangible
items, such as food, architecture, clothing

and art.
Cultural Factors
► Subculture is smaller groups’ culture of
a major culture
► Subcultures include, nationalities,
religions, racial groups, geographic
regions (Spanish America , African Americans,
Asian Americans)
Cultural Factors
► International cultures: the values,

attitudes, and behaviors can vary
dramatically by country.
■ Germany, United Kingdom, Japan
► International restaurant chains modify
their products
Cultural Factors
► Social class: relatively permanent and
ordered divisions in a society whose

members share similar values, interests,
and behaviors.
■ Seven American Social Classes
Social Factors
► Reference Groups
► Family
► Roles and Status
Social Factors
► People are group creatures and always
will be.
► As a result, they are continually
occupied with reducing the risk of not
belonging to any group.
► For the majority of the population, this
is the most important drive.

Social Factors
► Strongly affect consumer responses,
companies must take them into account

when designing marketing strategies
Social Factors
► Reference Groups
■ Membership groups
■ Aspirational groups
■ Opinion leaders
► Family
► Roles and status
Personal Factors
► Family Life Cycle
► Occupation & Economic circumstances
► Lifestyle
► Personality and self - concept
Personal Factors
► Personality
■ Determines consumer ’s response to

the environment
■ Reflects individual differences
■ Is consistent & enduring, but can
change with time
Personal Factors
► Personality
■ Psychological characteristics of
consumers that determine response to
the environment
Personal Factors
► Personality
■ Mood can affect buying, a short

lived emotion
● affected by environment,
salespeople, communications
Personal Factors
► Demographics
■ Age and life-cycle stage

■ Occupation
■ Economic circumstances
■ Lifestyle
Personal Factors
► Perception
■ How individuals see and make sense

of their environment
■ We are exposed to numerous
advertisements every day
■ We need to ‘filter’
Perception
Personal Factors
► Our ‘attention’ is caught by -
■ Intensity & size

■ Position
■ Contrast
■ Novelty
■ Repetition
■ Movement
Psychological Factors
► Motivation
► Perception
► Learning
► Beliefs and Attitudes
Motivation
► A motive is a need that has a sufficient
level of intensity. Creating a tension state

that drives the person to act.
► Satisfying the need reduces the felt
tension.
Motivation
► Two of the Most Popular Motivation
Theories
■ Maslow’s Theory of Motivation
● Human needs are arranged in a
hierarchy, from the most pressing to
the least pressing.
Maslow’s Theory of Motivation
Motivation
■ Herzberg’s Theory-Two Factor

Theory
● Dissatisfiers: Factors that cause
dissatisfaction
● Satisfiers: Factors that cause
satisfaction
Perception
► How a person acts is influenced by
his/her perception of the situation.

► Why do people have different
perceptions on the same situation??
Interpretation is individual!!
Perception
► Selective Attention
■ Current need, anticipation, size of deviation

► Selective Distortion
■ Tendency to twist information

► Selective Retention
■ Retain info that support attitudes & beliefs
Learning
► Learning describes changing behaviors
arising from experience.

► Site selection committee members
visit hotels, examine the hotel’s features.
Learning
► Hotels should help guests to learn
about the quality of their facilities and

services
► Tours to first-time guests
Beliefs
► A descriptive thought that a person
holds about something

■ X hotels have the best facilities.
■A particular airline has poor
maintenance
Attitudes
► Relatively consistent evaluations,

feelings, and tendencies toward an object
or idea.
► Liking or disliking things
Attitudes
► Customers develop negative or

positive attitude towards some products
or places.
► Difficult to change
Consumer Buying
Decision Process
Cultural Social Personal Psychological
•Demographic •Perception
•Culture •Reference •Occupation •Motives
•Sub-culture groups •Situational •Ability
•Social classes •Family •Life style •Attitudes
•Roles & status •Personality •Personality
Information Evaluate
Problem search Post-purchase
Purchase
recognition alternatives evaluation
PESTEL
. PESTEL, Political, Economic, Social, Technological,
Environmental and Legal Factors
It is a strategic planning technique that provides a

useful framework for analysing the environmental
pressures on a team or an organisation.
Political factors
Political factors, are how and to what degree a
government intervenes in the economy. Specifically,
political factors include areas such as tax policy,
labour law, environmental law, trade restrictions,
tariffs, and political stability.
Political factors may also include goods and services
which the government wants to provide or be
provided (merit goods) and those that the
government does not want to be provided (demerit
goods or merit bads). Furthermore, governments have
great influence on the health, education, and
infrastructure of a nation.
Economic
Economic factors include economic growth, interest
rates, exchange rates and the inflation rate. These
factors have major impacts on how businesses operate
and make decisions.
For example, interest rates affect a firm's cost of
capital and therefore to what extent a business grows
and expands. Exchange rates affect the costs of
exporting goods and the supply and price of imported
goods in an economy
Social
Social factors include the cultural aspects and include
health consciousness, population growth rate, age
distribution, career attitudes and emphasis on safety.
Trends in social factors affect the demand for a
company's products and how that company operates.
For example, an aging population may imply a smaller
and less-willing workforce (thus increasing the cost of
labor). Furthermore, companies may change various
management strategies to adapt to these social trends
(such as recruiting older workers).
Technological
Technological factors include technological aspects
such as R&D activity, automation, technology
incentives and the rate of technological change.
They can determine barriers to entry, minimum
efficient production level and influence outsourcing
decisions. Furthermore, technological shifts can
affect costs, quality, and lead to innovation.
Environmental
Environmental factors include ecological and
environmental aspects such as weather, climate, and
climate change, which may especially affect industries
such as apparel ,tourism, farming, and insurance.
Furthermore, growing awareness of the potential
impacts of climate change is affecting how companies
operate and the products they offer, both creating
new markets and diminishing or destroying existing
ones.
Legal
Legal factors include discrimination law, consumer
law, antitrust law, employment law, and health and
safety law.
These factors can affect how a company operates, its
costs, and the demand for its products.

3.FM Consumer Behavior

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3.FM Consumer Behavior

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Fashion merchandise

whereas a customer can also mean the retailer or

► Refers to the buying behaviour of final

consumers -individuals & households

► Culture is the most basic determinant

of a person’s wants and behavior.

items, such as food, architecture, clothing

► Subculture is smaller groups’ culture of

► International cultures: the values,

► Social class: relatively permanent and

ordered divisions in a society whose

► Roles and Status

is the most important drive.

► Strongly affect consumer responses,

companies must take them into account

► Roles and status

► Family Life Cycle

► Occupation & Economic circumstances

► Personality and self - concept

■ Determines consumer ’s response to

■ Mood can affect buying, a short

■ Age and life-cycle stage

■ How individuals see and make sense

■ Intensity & size

► Beliefs and Attitudes

► A motive is a need that has a sufficient

level of intensity. Creating a tension state

► Two of the Most Popular Motivation

■ Herzberg’s Theory-Two Factor

► How a person acts is influenced by

his/her perception of the situation.

■ Current need, anticipation, size of deviation

■ Tendency to twist information

■ Retain info that support attitudes & beliefs

► Learning describes changing behaviors

arising from experience.

visit hotels, examine the hotel’s features.

► Hotels should help guests to learn

about the quality of their facilities and

► A descriptive thought that a person

holds about something

► Relatively consistent evaluations,

► Customers develop negative or

It is a strategic planning technique that provides a

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