CONSUMER

BEHAVIOUR
By :

Ankit Mishra , Dev Sharma , Pulkit , Kamal , Dev Singh , Pankaj Negi
Who is a consumer ?

A person who buys and consume

goods and services is known as
consumer
What
Whois Consumer Behaviour ?
is a consumer ?

Consumer behaviour is the study of

how individual customers, groups or
organizations select, buy, use, and
dispose ideas, goods, and services to
satisfy their needs and wants.
Importance of Study of Consumer Behaviour
• To make better strategies for increasing profits.
• To take into consideration customer's health, hygiene &
fitness.
• To know the buying decisions of consumer
• Consistent change in Consumers tastes or preferences.
• Consumer behavior study is necessary to make pricing
policies.
• To avoid future market failures.
Consumer Decision Behaviour

1. Routine Response Behaviour

2. Limited Decision Making
3. Extensive Decision Making
1. Routine Response Behaviour

Routine decision behaviour is usually found in the cases of

frequently purchased and low cost items. Lengthy search for
products is not attempted and hence the decision effort
needed is only minimum.
EXAMPLE : SALT , BUTTER , BREAD
2. Limited Decision Making

Limited decision-making is the purchases made by the

consumers that is less frequent. The investment needed also
will be comparably high.
Hence, the consumers may acquire information about all
possible brands and some amount of mental exercises
would follow to arrive at a decision.
EXAMPLE : TELEVISION , SMART PHONE
3. Extensive Decision Making

Extensive decision-making is required when a consumer

wants to purchase unfamiliar products which is totally new,
having high unit value and bought preferably once in his
lifetime.
EXAMPLE : CAR , CONSTRUCTION OF A BUILDING
 FACTORS
INFLUENCING
CONSUMER BUYING
BEHAVIOUR
1. PERSONAL FACTORS :

A. Demographics
B. Life Styles
C. Situation
A. Demographics :

Individual characteristics such as age, sex, race, ethnicity,

income, occupation and family life cycle are called
demographics. affects consumer behaviour.
B. Lifestyles :

Life style means an individual's pattern of living expressed

through activities, interests and opinions.
Life styles have a strong impact on many aspects of buying
behaviour. Life styles influence consumers' product needs,
brand preferences, types of media used and how and where
they shop.
C. Situation :

Situational factors are influences resulting from

circumstances, time and location that affect the consumer
buying behaviour.
For example, buying a car tyre after noticing a badly worn-
out tyre is a different experience than buying a tyre after a
blowout on the highway spoils your vacation.
2. Social Factors :

A. Roles and Family

B. Reference Group
C. Opinion Leader
D. Social Classes
E. Culture and
Subculture
A. Roles and Family :

Role means the actions and activities that a person is

supposed to perform. A person occupies several positions
and, therefore, he/she has many roles. For example, a man
may perform the role of son, husband, father employer or
employee. An individual's roles influence both general
behaviour and buying behaviour.
B. Reference Group :

A reference group is any group that exercises a positive or negative influence on a person's attitudes, values and behavior , this impacts the consumer behaviour drastically.
C. Opinion Leader :

The reference group members who provides information

about a specific sphere that interests members of the group
is called an opinion leader. An opinion leader is likely to be
most influential when consumers have high product
involvement but low product knowledge.
D. Social Classes :

A social class means an open group of individuals with

similar social rank. Quite often people in a society are
classified into upper, middle and lower Classes on the basis
of their income and occupation,
Social class has an impact on spending and saving habits
E. Culture and Subcultures :

Culture is the aggregate of customs, beliefs, values. and

objects that a society uses to cope with its environment and
passes onto future generations . Culture permeates our daily
life and therefore influences buying behaviour of consumer.
3. Psychological Factors :

A. Perception
B. Motives
C. Learning
D. Attitudes
E. Personality
F. Self-Concept
A. Perception :

Perception is the process of selecting, organising and

interpreting information to derive meaning. Different people
perceive the same thing at the same time in different ways.
B. Motives :

A motive means an internal force that orients a person's

activities towards need satisfaction. A set of motives affects
a buyer's actions. Motives that influence where a person
buys products on a regular basis are known as patronage
motives. These include location, price, variety, service and
behaviour of sales people.
Marketers use depth interviews, projection and other
methods to know and understand the motives of buyers.
C. Learning :

Changes in an individual's behaviour due to information and

experience are called learning. A consumer tends to repeat
purchase actions which create satisfaction. Inexperienced
buyers use price as an indicator of quality more frequently
than experienced buyers.
D. Attitudes :

Attitude refers to an individual's enduring evaluation,

feelings and behavioural tendencies toward an object or
idea. For example, everyone has attitudes towards religion,
politics, food, sex and music.
E. Personality :

Personality refers to a set of internal traits and distinct

behavioural tendencies that result in consistent patterns of
behaviour. An individual's personality is the outcome of
heredity and personal experiences.
F. Self Concept :

Self-concept or self-image means a person's perception or

view of himself. Individuals develop and alter their self-
concept through interaction of social and psychological
dimensions. Research shows that a buyer purchases
products that reflect and enhance the self-concept. A
person's self-concept may also influence selection of
product category and brand.
Consumer Buying Decision
Process
The process through which consumer proceeds while making their
buying decision is known as the consumer buying decision process.
This process consist of five stages as shown-
1. Need recognition

A buyer recognises the problem

when he becomes aware of the
desired stage and an actual condition
.
2.Information search

After recognising the problem or need ,a

buyer searches for product information
that can resolve the problem or safety
they need
3.Evaluation of alternatives.

Evaluation of alternatives is the third stage in

the Consumer Buying Decision process.
During this stage, consumers evaluate all of their
product and brand options on a scale of attributes
which have the ability to deliver the benefit that
the customer is seeking .
4.Purchase

Purchase decision is the thought process

that leads a consumer from identifying a
need, generating options, and choosing a
specific product and brand.
5.Post-Purchase Evaluation

Post-purchase behaviour describes the

way a customer thinks, feels, and acts
after they have bought something
Buying Motives Of
Consumers
Buying motives of consumers means what induces a customer to buy
a product. There is a buying motive behind every purchase.

Buying motives may be classified as follow-

(1.)Internal and External motives

(2.)Rational and Emotional motives
(3.)Product and Patronage motive
1. Internal and External motives

Internal motives - Internal buying motive are

inherent in the mind of consumers. They arises
from the basic need like hunger,safety ,shelter etc.

External motives - External buying motives are

those which are based on logical reasoning and
consideration of economic consequences
2.Rational and Emotional motives

Rational motives - Rational buying motives

are about obtaining high quality goods.
Rational buying motives affect many
purchases, but this motive becomes very
important when faced with the purchase of
expensive items.

Emotional motives - Emotional Buying

Motives are the reasons for buying based on
feelings, beliefs, or convictions.
 3.Product and Patronage motives
Product motives - Product buying motives refer to
those influences and reasons, which prompt (i.e.
induce) a buyer to choose a particular product in
preference to other products.

Patronage motives- Patronage buying motives refer

to those considerations or reasons, which prompt a
buyer to buy the product wanted by him from a
particular shop in preference to other shops.
Maslow’s Hierarchy Of Needs

Final type of need

Luxuries need (self

request)

Social need (love needs)

Social security

Basic need(food
shelter etc)
Customer Adoption Process

Customer adoption process refers to

the process when a business
introduces a new product to the
marketplace and acquires new and
repeating customers.
Stages of Customer
Adoption Process
AWARENESS

INTEREST

EVALUATION

TRIAL

ADOPTION
1. Awareness :
In the first stage, customers become aware that a
new product exists .

2. Interest :
In this stage, customers become willing to obtain
information about the location, price, features, etc.
of new product .
3. Evaluation :
At this stage, the customers consider whether to
try the new product .

4. Trial :
New customers examine and test the product to
judge its usefulness for their needs .

5. Adoption :
Finally, the customer decide to make full and
regular use of the new product .
Categories of Adopters of New
Products
Factors Influencing the Adoption
Process
Nature of organisational Buyer
Numbers of decision-makers
Social Approval
Compatibility
Cost
Buying Roles

Buying roles refer to the activities that one or

more persons might perform in a buying decision.
Activities Perform in
Buying
1. Initiator :
The person who first suggests the idea of buying
product .

2. Influencer :
The person whose view or advise influences your
buying decision .
3. Decider :
The person who decides what ,when ,where and
how to buy .

4. Buyer :
The person who makes the actual purchase .

5. User :
The person who uses the product or service .
THANK YOU