Consumer Behaviour

What is Consumer Behavior?

It is the process involved when individuals or
groups select, purchase, use, and dispose of
goods, services, ideas, or experiences, to satisfy
needs and desires.
Definitions

• Consumer = ? \

• Customer = ?

• Buyer = ?

• User = ?
Buyer

A purchaser of a GOOD or SERVICE. A broad distinction can be

made between purchasers of goods and services such as raw
materials, components, plant and equipment which are used to
produce other products ('industrial or organisational buyers')
and purchasers of products for personal consumption
('customers').
Adopter categorisation on the basis of relative
time of adoption of innovations
 Who Buys? – Consumer
Products
• Initiator - the person who begins the process of considering a purchase.
Information may be gathered by this person to help the decision.
• Influencer - the person who attempts to persuade others in the group
concerning the outcome of the decision. Influencers typically gather
information and attempt to impose their choice criteria on decision.
• Decider - the individual with the power and/or financial authority to
make the ultimate choice regarding which product to buy.
• Buyer - the person who conducts the transaction: who calls the supplier,
visits the store, makes the payment and affects delivery.
• User - the actual consumer/user of the product.
Who Buys? - Organisational Buying Behaviour

• Initiators - those who begin the purchase process

• Users - those who actually use the product.
• Deciders - those who have the authority to select the
supplier/model.
• Influencers - those who provide information and add decision
criteria throughout the process.
• Buyer - those who have authority to execute the contractual
arrangements.
• Gatekeepers - those who control the flow of information, e.g.
secretaries.
What is Consumer
Behavior?

 It is the process involved when individuals or

groups select, purchase, use, and dispose of
goods, services, ideas, or experiences, to
satisfy needs and desires.
The Decision Making
Process
Problem Recognition / Need Identification

Information Search/Gathering

Evaluation of Alternatives

Selection of Appropriate Solution (Product Choice)

Postpurchase Evaluation
 Need
Recognition
Environmental Influences

Search Culture
Exposure
Social Class
Personal Influences
Family
Attention
Stimuli Situation
Pre-Purchase
Marketer Dominated Evaluation of
(External stimuli) Comprehension Memory
Alternatives
Nonmarketer Dominated Individual Differences
(Internal stimuli)
Acceptance
Purchase
Consumer Resources
Motivation and
Retention
Involvement
Consumption
Knowledge
Attitudes
Personality, Values,
Post-Consumption
Evaluation and Lifestyle

Dissatisfaction Satisfaction
The Buyer Decision Process
Step 1. Problem/Need Recognition
Need Recognition
Buyer Recognizes a Problem or Need

Internal
Internal Stimuli External
Stimuli External Stimuli
Stimuli
Hunger
Hunger TV
TV advertising
advertising
Thirst
Thirst Magazine
Magazine ad
ad
AA person’s
person’s normal
normal needs
needs Radio
Radio slogan
slogan
(see
(see hierarchy
hierarchy of
of needs
needs Stimuli
Stimuli in
in the
the environment
environment
of
ofAbraham
Abraham Maslow)
Maslow) (eg
(egculture
cultureand
andsocial
socialfactors)
factors)
--
Maslow’s Hierarchy of Needs
Upper-Level Needs
Self Actualization
Self-fulfillment
Ego Needs Prestige,
status

Belongingness
Love, friendship, acceptance by others

Safety
Security, shelter, protection

Physiological
water, sleep, food

Lower-Level Needs
The Buyer Decision
Process
Step 2. seeks
Consumer Information
out information fromSearch
several sources to fulfill the need.

Family, friends, neighbors

Personal Sources Most effective source of
information

Advertising, salespeople
Commercial Sources
Receives most information from
these sources

Public Sources Mass Media

Consumer-rating groups

Handling the product

Experiential Sources Examining the product
Using the product
Influences on the Consumer
Social
Geography class
Age
Globalization

Economy
Occupation

Culture Organization

Peer Values &

pressure lifestyle

© 2021 Springer 14
The Decision Making Process
Step 3. Evaluation of Alternatives
Consumer evaluates the options that may fulfill his needs.

Possible Cars Evaluative Criteria

Price
Toyota Corolla
Gas mileage
Mazda 323
Roominess
Honda Civic
Colour & Design
Choice Criteria

Rational (Functional) Emotional (psychological)

- Price - Prestige
- Delivery - Personal risk reduction
- Productivity - Office politics
- Reliability - Pleasure
- Upgradability - Confidence
- Technical assistance - Convenience
- Safety
The Buyer Decision Process
Step 4. Product Choice
Consumer decides which product or brand to purchase.

Purchase Intention
Desire to buy the most preferred brand

Country-of-
Brand
Origin
Loyalty &
& Other
Attitude to
Personal
others
Factors

Purchase Decision
The Decision Making Process
Step 5. Post-purchase Evaluation
Consumer will use the product and evaluate his or her decision.

Consumer’s Expectations of
Product Quality and Performance

Product’s Perceived Performance Standard

Satisfied Customer! Dissatisfied Customer

Thank you