CONSUMER BEHAVIOR

AN
INTRODUCTION
The purpose of a business is to
create a customer.
Peter Drucker

The purpose of business is to

create and keep a customer.
Peter Drucker
 In the factory we make cosmetics; in the
drugstore we sell hope.
- Charles Revson

 No theater could sanely flourish until there

was an umbilical connection between what
was happening on the stage and what was
happening in the world.
- Kenneth Tynan
Consumer Behavior
 What products do consumers buy?

 What Brand do they buy?

 Why do they buy it?

 Where do they buy?

 How often do they buy it?

Consumer Behavior - Definitions
 Process a person goes thru when purchasing
and using products and services, including the
mental and social processes that precede and
follow these actions.
 It not only involves specific actions taken by
individuals when buying and using products
and services, ----
 but also all the social and psychological factors
that affect the same.
 Consumer Behavior -
Definitions
 American Marketing Associations (AMA)

 Consumer behavior is the dynamic interactions

between affect and cognition, behavior and the
environment by which human beings conduct
the exchange aspects of their lives.

 CB is Dynamic
 Involves interactions
 Its about Exchanges.
 Response Hierarchy Model
Different AIDA Hierarchy of Innovation – Communications
Stages Model Effects Model Adoption model Model
Awareness Exposure
Cognitive Attention Reception
Knowledge Awareness
Stage
Cognitive response
Interest Liking Interest
Affective Attitude
Stage
Intention
Desire Preference Evaluation

Trial
Behavior Behavior
Action Purchase
Stage
Adoption
 Consumer Behavior Is
Dynamic
 Because the thinking, feelings and actions of

individual consumers, targeted consumer groups

and society at large are constantly changing.
 Consumers and their environments are
constantly changing.
 Internet has changed the way people search for
information, products and services.
 PLC’s have shortened.
 Companies will have to constantly innovate.
C B Involves Interactions
 Interactions among people’s thinking, feelings
and actions and the environment.
 Thus marketers need to understand what
products and services mean to customers,
 what consumers do to purchase them & use
them and what influences, shopping, purchase
and consumption.
 Knowledge about how these interactions
individuals / target markets will help marketers
to better satisfy them.
 CB involves Exchanges
 People give up something of value to others and
receive something in return.
 Mostly involves people giving up something of
value to obtain products and services.
 This is the exchange between buyers and
sellers.
 Role of marketing in society is to help create
exchanges between buyers (consumers) and
sellers (marketers).
 Approaches To Study Of Consumer
Behavior

APPROACHES DOMAINS OBJECTIVES PRIMARY METHODS

Understanding Depth Interviews

Interpretative Anthropology consumption and
its meaning Focus Groups

Psychology Explain consumer Experiments

Traditional decision making
Sociology
behavior Surveys

Economics Math modeling

Marketing Predict Consumer
(as a) Science Simulation
Statistics choice & behavior
Factors Influencing C.B.
Cultural Social
Culture Reference Groups
Sub Culture Family
Social Class Role & Status

Psychological Personal
Motivation Age & Life Cycle Stage
Learning Occupation
Buyer Life Style
Perception Personality & self concept
Attitudes Economic Circumstances
 TYPES OF BUYING BEHAVIOR

Low Buyer Involvement High

Few
Habitual Buying Dissonance
Behavior Reducing Buying
Behavior
Significant
Differences
Between Brands
Variety seeking Complex Buying
Buying Behavior Behavior

Many
Five Buying Roles

 Initiator
 Influencer
 Decider / Payer
 Buyer
 User
 Stimulus-Response Model of Buyer
Behavior
External Stimuli The Buyer’s Black Box
Environmental Marketing Buyer Buyer Decision
factors factors Characteristics Process
Input Problem
Economic Product
Price recognition
Social Cultural
Political Advertising Information
Technological Distribution Social search
Personal Evaluation
Buy Decision Psychological Decision
Product Post Purchase
Brand Behavior
Output
Dealer
Quantity
Purchase Timing
OVERALL MODEL OF CONSUMER BEHAVIOUR

Experiences and Acquisitions

External Influences
Culture Decision process
Subculture
Demographics
Problem
Social Status
Recognition
Reference Groups
Family
Information
Marketing Activities Self-Concept Search
And
Needs
Lifestyle Desires Alternative Evaluation
Internal Influences
And Selection
Perception
Learning
Outlet Selection
Memory
And Purchase
Motives
Personality
Postpurchase
Emotions
Processes
Attitudes
Experiences and Acquisitions
 CONSUMER BEHAVIOR – FRAME WORK
Sub - culture

Culture Information
processing
Learning &
memory
Problem recognition Social
Motivation &
Information Search Class
Involvement
Evaluation

Buying Process
Personal
Influences
Post Buy Behavior.
Reference
Attitudes Personality & Groups
Self concept

Family
Consumer move from Total
Set

Total Set

Awareness Set

Consideration
set

Choice
Set

Buying Decision