Consumer behavior

Definition
Actions of consumers in the market place & the
underlying motives for those actions -
-Ostrow & Smith
The study of how individuals make decisions to
spend their available resources on consumption-
related items. It includes the study of what they
buy, why they buy, when they buy, where they
buy, how often they buy, how often they use it
-Schiffman & Kanuk

Decoding consumer behaviour, a
complex ballgame
Consumer , a riddle
Consumer behaviour, atheorem without
proof
Consumer does not go by set of rules in
buying decision
The task becomes particularly difficult in
present times
Why study consumer behavior
Consumers do not always act or react as
the theory would suggest
Consumer preferences are changing &
becoming highly diversified
Consumer research has vividly pointed out
that consumers dislike using identical
products & prefer differentiated products
Meeting of special needs of customers
requires market segmentation

Rapid introduction of new products
Implementation of marketing concepts
Consumer behavior can be used to sell
products that might not sell easily
Buying roles
Initiator
Influencer
Decider
Buyer
user
Buying behavior of consumers
Complex buying behavior
Dissonance buying behavior
Variety seeking buying behavior
Habitual buying behavior
Cultural factors
Culture
Sub-culture
Social class
Social factors
Reference groups
Membership groups
Primary groups
Secondary groups
Aspirational groups
Dissociative groups
Family
Roles &status


Personal factors
Age & stage in the life cycle
Occupation & economic circumstances
Life style
Personality & self-concept
Psychological factors
Motivation
Perception
Learning
Beliefs & attitudes

Stages of buying decision process
1. Problem recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decisions
5. Post purchase behavior
Information search

Personal sources
Commercial sources
Public sources
Experiential sources
Evaluation of alternatives
Total set
Awareness set
Consideration set
Choice set
Decision
Brand belief
Brand image
Brand attitude
Strategies for a marketer
Redesign
Alter beliefs about the brand
Alter beliefs about competitors brands
Alter important weights
Call attention to neglected attributes
Shift the buyers ideas
Purchase decision
Two factors that interfere are attitude of
others & unanticipated situational factors
Brand decisions
Vendor decisions
Quantity decisions
Timing decisions
Payment method decisions
Post purchase behavior
Post purchase satisfaction
Post purchase actions
Post purchase use & disposal

How consumers use or dispose of
products
Get rid of it temporarily
Get rid of it permanently
Keep it
Features of business market
Fewer buyers
Large buyers
Close supplier customer relationship
Geographically concentrated buyers
Derived demand
Inelastic demand

Multiple sales calls
Direct purchasing
Reciprocity
Leasing
Fluctuating demand
Professional purchasing
Participants in the buying process
Initiator
User
Influencer
Decider
Approvers
Buyers
Gatekeepers

Stages in the buying process
Problem recognition
General need description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order routine specification
Performance review
Buying situations
Straight rebuy
Modified rebuy
New task buying
Factors influencing buying behavior
Environmental factors
Organizational factors
Interpersonal factors
Individual factors

Environmental factors
Level of demand
Economic outlook
Interest rate
Rate of technological change
Political & regulatory developments
Competitive developments
Social responsibility concerns
Organizational factors
Objectives
Policies
Procedures
Organizational structures
systems
Interpersonal factors
Interests
Authority
Status
Empathy
Persuasiveness

Individual factors
Age
Income
Education
Job position
Personality
Risk attitudes
culture
Consumer behavior models
Economic model
Learning model
Psychoanalytical model
Sociological model
The Nicosia model
The Howard-Sheth model

Buying motives
1.Product motives
Rational product buying motives
Emotional product motives
Alternate classification of product motives
Operational product motives
Socio-psychological product motives
2.Patronage motives
Rational
Emotional