Consumer is a person who identifies a need or desire, makes a purchases

and /or disposes off the product.

There are two different kinds of consuming entities.

1. Personal consumers-who buy goods and services for their own use
2. Organizational consumers –who buy goods and services for business
purpose.

Consumer Behaviour is the Process Involved When Individuals or Groups

Select, Use, or Dispose of Products, Services, Ideas or Experiences (Exchange)
to Satisfy Needs and Desires.

Consumer behaviour is defined, as a behaviour that consumers display in

searching for, purchasing, using, evaluating and disposing of products and
services that they expect will satisfy their needs.

Customer behaviour study is based on consumer buying behavior

Basic elements of consumer behavior

1. Psychological factors
2. Consumer decision making
3. Group concept
4. Marketing Mix elements

1. Psychological factors deal with consumer’s system of determining any

product or developing a behavior about it.

2. Consumer decision making is a process followed by the consumer to

purchase any product. It involves different stages , the marketers should
concentrate on that stage.

3. Group concept is the effect of reference groups to which the consumer

belongs or attaches himself.

4. Marketing Mix elements encourages the marketer to plan the marketing mix
for the product. Many companies introduced product of same brand.
Consumer Research process

The consumer research process consists of the following steps.

1. Identifying the objectives of the research

2. Collecting and evaluating the secondary data
3. Designing a primary research study.
4. Collecting the primary data
5. Analyzing the data and
6. Preparing a report based on the above analysis.

Importance of consumer behaviour

1. It helps the marketer to take vital decisions with respect to designing of future marketing
strategies
2. It help the marketers to find out what kind of promotional offers need to be undertaken.
3.Whether the marketer should stick to the same product, extend the product portfolio, or
probably launch a new product.
4.The consumer behaviour also has effects on the entire social network which again helps an
organization to target a specific audience or set of customers.
5.The behaviour of consumers gives the nation a different face, either good or bad.
6.lt helps in scheduling of events, for example, any product launch
Consumer Perception -The process by which an individual selects, organizes,
and interprets stimuli into a meaningful and coherent picture of the world. [How
we see the world around us]
Personality is defined as the inner psychological characteristics that both determine and
reflect how a person responds to his or her environment.

5 Stages of Personality development

1.Oral Stage 2.Anal Stage 3.Phallic Stage.4.Latency Stage 5.Genital Stage

1.Oral Stage- the infant first experience with the outside world through the
mouth for example, eating, drinking ,sucking

2.Anal Stage-During this stage when parent train for toilet

3.Phallic stage-the child experienced self –oriented sexual pleasure.

4.latency stage-No important personality changes occurs during this time.

5.Genital stage –Child love the parents.

Consumer Motivation is the powerful and active source of influencing and
directing the behavior of consumer. It is the reason for behavior.

Motivation is a driving force within an individual that impels them to action.

There are number of motivation theories that offer useful marketing strategies
and ideas to understand the motivation of consumer behaviour

Maslow’s Hierarchy of Needs

Maslow’
The hierarchy of needs are:
1. Physiological needs.
2. Safety and security needs.
3. Social needs.
4. Ego needs.
5. Self-actualization needs.
1. Physiological needs:

 Basic level of human needs.

 This need is required to sustain biological life.
 Eg: need for food, water, shelter, clothing, etc.
2. Safety and security needs:

 Once the first level is satisfied this need become the driving force
for human behavior.
 Focus on tomorrow’s life.
 Eg: savings account, insurance policies, education, etc.
3. Social needs:

 This level satisfies the need for human relationship.

 Ads of personal care products appeal to this need.
 Eg: Need for love, affection, belonging and acceptance.
4.Esteem needs:

 This needs are categorized as desire for status, self respect , and Prestige.
 Eg: Clothing ,Funiture,liquors,cars and many more.

5. Self-actualization needs:

 This need refers to individual desire to fulfill his or her potential or

fully exploiting ones potential.
 Only few satisfy this need.
 Eg: Player working single-mindedly for many years to excel in his
sports.