Consumer Behaviour

Consumer Behavior
It is the study of how individuals make decisions
to spend their available resources (time, money,
effort) on consumption related items. It includes
the study of-what they buy
-why they buy it
-when they buy it
-where they buy it from
-how often they buy it
-how often they use it

What type of toothpaste customers buy

- gel, regular, striped, in a tube, with a pump
What brand
- national, private
Why they buy itto prevent cavities, to remove stains, to
whiten teeth, to use as a mouth wash

Where they buy it from

- supermarket, drug store, convenience
store
How often they buy it
- weekly, biweekly, monthly
How often they use it
- when they wake, after each meal, when
they go to bed

7 Os of Consumer Behavior
1) Who is the consumer (Occupants)
2) What does he buy (Object)
3) Why is the consumer buying (Objective)
4) When do they buy, how often do they buy,
when do they use and how often do they use
(Occasion)
5) Where do they buy (Outlet)
6) How do they buy (Operations)
7) Who is involved (Organization)

Factors Influencing Buying Behavior

1.

Cultural Factors
i. Culture
ii. Sub culture
iii. Social class
2. Social Factors
i. Family
ii. Reference groups
iii. Roles and statuses
3. Personal Factors
i. Age and life cycle stage
ii. Occupation
iii. Economic circumstances
4. Psychological Factors
i. Motivation.
ii. Personality
iii. Perception
iv. Learning.
v. Beliefs and attitudes

Model of Consumer Behaviour

Mktg Stimuli

Product

Other Stimuli

Economic

Consumer
Psycholog

y&
Characteri

Cultural
stics

Price

Place

Promotion

Technological

Political

Cultural

Social

Buying Decision

Problem

Evaluation

Decision

Decision

Product Choice

Brand Choice

Dealer Choice

Purchase Timing

Purchase Amount

Recognition
Information Search

Psychological

Purchase

Process

Personal

Post-purchase
Behaviour

Freuds Theory
The well-known psychoanalyst, Sigmund
Freud, provided the earliest explanation of
human motivation. According to him man
learns from his environment. Taking a cue from
a child, Freud said that a child is uninhibited in
his behaviour until the time he or she is taught
the worldly ways by his or her parents.
Gradually, as the child grows he starts
behaving in a manner, which is socially
acceptable.

Maslows Hierarchy of Needs

Self
Actualization (self
development
&
realisation)

Esteem Needs (self esteem, recognition, status)

Social Needs (sense of belonging, love)

Safety Needs (security, protection)

Psychological Needs (food, water,

shelter)

Herzbergs Theory
Two factor theory that distinguishes
dissatisfiers (factors that cause
dissatisfaction) from satisfiers (factors that
cause satisfaction).
- sellers should do their best to avoid
dissatisfiers.
- the seller should identify the major satisfiers
or motivators of purchase in the market and
then supply them.

How Customers Use or Dispose of

Products
PRODUCT

Get rid of it
permanently

Use it to
serve original

purpose

Keep it

Convert it
to serve new

purpose

Store it

Throw it
away

Give it
away

Rent it

Get rid of
temporarily

To be
(re) sold

Trade it

Loan it

Sell it

To be
used

Direct to
Consumer

Through
middleman

To
Middleman

BUYING ROLES
Initiator- is the individual who determines that
some need or want is not being fulfilled and
authorizes a purchase to rectify the situation
Gatekeeper- influences the familys processing of
information. The gatekeeper has the greatest
expertise in acquiring and evaluating the
information

Influencer- a person who, by some intentional or

unintentional word or action, influences the
buying decision, actual purchase and the use of
product
Decider- the person who actually determine
which product or service will be chosen
Buyer- is an individual who actually makes the
purchase transaction
User - is a person most directly involved in the
use or consumption of the purchased product

Decision Making Process

1) Problem recognition- when a customer has
an unfulfilled need
2) Information search- customer will collect the
information from different sources
Personal sources- family, friends, neighbors,
acquaintes
Commercial sources- advertising, salesperson,
dealers, displays, packaging

Public sources- mass media, consumer rating

organizations
Experiential sources- handling, examining, using
the product
3) Evaluation of alternatives- customers trying
to satisfy a need, customers looking for certain
benefits from the product solution, customer sees
each product as a bundle of attributes
Total Awareness Consideration Choice Decision
set
set
set
set
set

4) Purchase Decision
Attitudes of
others

Evaluation of
Alternative

Post
Decision

Purchase
Intention
Unanticipated
Situational factors

Post
Purchase
Behavior

5) Post Purchase Behavior

Information and Experience

Pre Purchase Expectation
use

Performance
Satisfied +ve WOM
Repurchase Intention

Dissatisfied
Complainer
Dealer
Court
Manufacturer
Satisfaction is
found

Increase in Sale
And Market share

Non-Complainer
-ve WOM
Brand
Switching

Dissatisfied
-ve WOM
Brand Switch
Decrease of sale
and reduction in
market share

Buying Behavior Types

Significant
differences
among
brands

Higher Involvement

Lower Involvement

Complex buying behavior

e.g. Car, PC, Electronic
products

Variety Seeking
buying behavior
e.g. Biscuits,
Soaps

Dissonance reducing
buying behavior
e.g. Carpets, Jewellery,
Furniture

Habitual buying
behavior
e.g. salt

Organisational Buyer Decision Process

1)
2)
3)
4)
5)
6)

Problem Recognition
Product Specification
Product and Vendor Search
Product and Vendor Evaluation
Product and Vendor Selection
Performance Evaluation