CONSUMER BEHAVIOR

What is consumer behavior?

Consumer behavior refers to the study of how individuals, groups, or
organizations select, buy, use, and dispose of goods, services, ideas, or
experiences to satisfy their needs and wants. It encompasses a wide
range of activities, including the decision-making process consumers go
through when considering a purchase, their attitudes and preferences
towards different products or brands, and the factors that influence their
buying behavior.

Defination
According to Michael R. Solomon
"Consumer behavior is the study of the processes involved when
individuals or groups select, purchase, use, or dispose of products,
services, ideas, or experiences to satisfy needs and desires."

The American Marketing Association (AMA) defines consumer behavior

as:
"The dynamic interaction of affect and cognition, behavior, and the
environment by which human beings conduct the exchange aspects of
their lives."
Why is consumer behavior so important?
Businesses invest a lot of time and resources in their product or service. Hence, it is
absolutely essential that their offerings cater to the needs of their customers. Or they will
incur huge amounts of losses.
So, in order to make sure that the products, as well as the brand, are well-accepted by the
consumers, it is important to first know what consumers want and are likely to buy.

BETTER MARKETING AND COMMUNICATIONS

IMPROVE CUSTOMER RETENTION
INCREASE CUSTOMER LOYALTY
BETTER PLAN INVENTORY
INCREASE SALES
RESEARCH COMPETITION
Types of Consumer Behavior

Complex buying behavior

Dissonance-reducing buying behavior
Habitual buying behavior
Variety-seeking buying behavior
FACTORS INFLUENCE CONSUMER BEHAVIOR
Situational factors
Personal factors
Social factors
Psychological factor
 BEHVIOUR PATTERN OFCONSUMER
Consumer behavior patterns refer to the recurring behaviors, actions, and trends exhibited by individuals or
groups when making purchasing decisions. These patterns can be influenced by various factors such as
cultural norms, social influences, personal preferences, economic conditions, and marketing strategies. Some
common consumer behavior patterns include:
Brand Loyalty: Some consumers consistently purchase products from the same brand or company over time,
often due to trust, satisfaction, or emotional attachment.
Impulse Buying: Occurs when consumers make unplanned purchases based on sudden urges or emotions
rather than rational decision-making.
Seasonal Buying: Certain products experience fluctuations in demand based on seasonal factors, holidays, or
specific times of the year.
Online Shopping: With the rise of e-commerce, many consumers exhibit behavior patterns such as
comparison shopping, reading online reviews, and seeking discounts or promotions before making purchases.
Sustainable Consumption: Increasingly, consumers are considering environmental and ethical factors when
making purchasing decisions, leading to the preference for eco-friendly products and socially responsible
brands.
Social Influences: Consumers often rely on recommendations from friends, family, celebrities, or influencers
when making purchasing decisions, demonstrating the impact of social networks on consumer behavior.
Price Sensitivity: Some consumers are highly price-sensitive and actively seek out discounts, coupons, or sales
promotions, while others prioritize quality or convenience over price.
Product Usage Patterns: Different consumers may use products or services in varying ways based on their
needs, lifestyles, or demographic characteristics.
Understanding these patterns is crucial for businesses to tailor their marketing strategies, product offerings,
and customer experiences to better meet the needs and preferences of their target audience.