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Nishan Navaratne
Consumer/Buyer Behavior Summary
The discipline finds its roots in the marketing concept and has
been essentially interdisciplinary in nature. As a subject it emerged
as a separate field of study in the 1960s.
Initially the focus lay in the marketers attempts to study the causes
of consumer behavior; the assumption was that if they could
identify the reasons behind consumption behavior, they would be
able to predict it; and if they could predict consumer behavior, they
could influence it. So the emphasis was to predict consumer
behavior; the approach came to be known as positivism.
Gradually, the focus of the study changed; the marketers wanted to
understand the customer better, and this approach came to be known
as interpretivism.
i The subject deals with issues related to cognition, affect and behavior in
consumption behaviors, against the backdrop of individual and environmental
determinants. The individual determinants pertain to an individuals internal self
and include psychological components like personal motivation and involvement,
perception, learning and memory, attitudes, self-concept and personality, and,
decision making. The environmental determinants pertain to external influences
surrounding an individual and include sociological, anthropological and economic
components like the family, social groups, reference groups, social class, culture,
sub-culture, cross-culture, and national and regional influences.
NATURE
AND SCOPE ii. The subject can be studied at micro or macro levels depending upon whether it is
OF analyzed at the individual level or at the group level.
CONSUMER
iii. The subject is interdisciplinary. It has borrowed heavily from psychology (the
BEHAVIOR : study of the individual: individual determinants in buying behavior), sociology
(the study of groups: group dynamics in buying behavior), social psychology (the
study of how an individual operates in group/groups and its effects on buying
behavior), anthropology (the influence of society on the individual: cultural and
cross-cultural issues in buying behavior), and economics (income and purchasing
power).
iv. Consumer behavior is dynamic and interacting in nature. The three components of
cognition, affect and behavior of individuals alone or in groups keeps on changing; so does
the environment. There is a continuous interplay or interaction between the three
components themselves and with the environment. This impacts consumption pattern and
behavior and it keeps on evolving and it is highly dynamic.
v. Consumer behavior involves the process of exchange between the buyer and the seller,
mutually beneficial for both.
vii. It is a science as well as an art. It uses both, theories borrowed from social sciences to
understand consumption behavior, and quantitative and qualitative tools and techniques
to predict consumer behavior.
Consumer Behaviors
Interdisciplinary Roots
Psychology: This includes the study of the individual as well as the individual
determinants in buying behavior, viz., consumer perception, learning and memory,
attitude, self-concept and personality, motivation and involvement, attitudes and
attitudinal change and, decision making.
Sociology: This includes the study of groups as well as the group dynamics in buying
behavior, viz., family influences, lifestyles and values, and social group influences.
Social psychology: This includes the study of how an individual operates in
group/groups and its effects on buying behavior viz, reference groups and social
class influences.
Anthropology: This is the influence of society on the individual viz., cultural and
cross-cultural issues in buying behavior, national and regional cultures etc.
Economics: This is the study of income and purchasing power, and its impact on
consumer behavior. The underlying premise is that consumers make rational choices
while making purchase decisions. While resourcse are limited and needs and wants
many, consumers collect information, and evaluate the various alternatives to finally
make a rational decision.
The study of consumer behavior deals with
Scope of
Consumer understanding consumption patterns and behavior. It
Behavior: includes within its ambit the answers to the
following: -
What the consumers buy: goods and services
- Why they buy it: need and want
- When do they buy it: time: day, week, month,
year, occasions etc.
- Where they buy it: place
- How often they buy it: time interval
- How often they use it: frequency of use
Assignment questions:
1. As a marketer, how do you think that you can apply what you study in Consumer Behavior?
2. How has the study of Consumer Behavior evolved?
3. Is the subject of Consumer Behavior interdisciplinary? Discuss.
4. List out how the knowledge of Consumer Behavior helps a marketer in Designing the 4 Ps?
True/false:
1. The study of consumer behavior is viewed as the edifice of the selling concept.
2. The knowledge of consumer behavior does not find relevance in Governmental and Non-profit
Organizations and Social Marketing
Fill up the blanks:
1. The _____________________ concept believes in make what you can sell approach rather than sell
what you make approach.
2. Environmental uncertainty is a function of ________________ and dynamism.
3. There exists interrelatedness between the Consumer, the _________________ and the Marketing strategy.
4. During the evolution of the discipline, marketers realized that there was a need to understand the customer
better. This approach came to be known as ______________.
5. The marketer needs to identify distinct customer groups with needs and wants, classify them on basis of
descriptive characteristics and behavioral dimensions this process is known as.
Keys: 1.Marketing 2. complexity 3.environmental 4. interpretivism 5. Segmentation of market:
CONSUMER BUYING PROCESS OR CONSUMER DECISION MAKING PROCESS
Decision : A decision is defined as choosing an option of the few/many available. Decision
making is the process of choosing between two or more alternatives; It is the selection of
an alternative out of the few/many choices that are available. Decision making is: a) a
goal oriented process. b) it is a problem solving process: helps take advantage of
opportunities and fight threats.
Decisions Making can be of two types,
a) Programmed decision making: This is applied for problems that are routine and
regular. Such problems are simple to deal with and guidelines to sort out such problems
exist. Such decisions are made without much thought. With respect to marketing, these
are decisions related to day to day purchases or convenience and shopping goods; these
are generally low involvement purchases. They may also be habitual in nature, and
brand loyalty could easily develop. Examples: Purchases made for staples, toiletaries etc.
b) Non-programmed decision making: This is applied for problems that arise suddenly
and are unique or novel. As the problem is sudden and novel, it is complex and requires
a lot of information gathering, deliberation and thought. With respect to marketing, these
are decisions related to infrequent purchases or specialty goods and emergency goods;
these are high involvement purchases. Examples: Purchases made for laptops, real
estate etc.
.
CONSUMER DECISION MAKING:
A consumer purchase is actually a response to a problem. Consumer Decision Making
pertains to making decisions regarding product and service offerings. It may be defined
as a process of gathering and processing information, evaluating it and selecting the best
possible option so as to solve a problem or make a buying choice.
Consumer Decision Making pertains to the following decisions:
a) What to buy: Products and Services (and the Brands?)
b) How much to buy: Quantity
c) Where to buy: Place
d) When to buy: Time
e) How to buy: Payment terms.
All purchase decisions are not similar. The effort put into each decision making is
different.
A Simplified Model of Consumer Decision
Making
The decision-making process can be viewed as
three interlocking stages:
The input stage:
marketing efforts
sociological influences
The process stage:
psychological factors
The output stage:
purchase behavior
postpurchase evaluation
External Influence
Firms Marketing Efforts Sociocultural Environment
1. Product 1. Family
2. Informal sources
Input 2. Promotion
3. Other noncommercial sources
3. Price 4. Social class
4. Channels of distribution 5. Subculture and culture
Consumer Decision Making
Psychological Field
Need 1. Motivation
Recognition 2. Perception
3. Learning
Prepurchase 4. Personality
Process
Search 5. Attitudes
Evaluation of
Alternatives Experience
Purchase
1. Trial
Postdecision
Postpurchase Evaluation
LEVELS OF DECISION MAKING:
While decision making is defined as the selection of an alternative to solve a problem, the time
and effort required to complete the process varies across buying situations. We may define
three kinds problem solving spread over a continuum; these are referred to as the levels of
consumer decision making;
(i) Extensive problem solving (EPS):In EPS, the consumer is unfamiliar with the
product/service category; he is not informed of the product or service offering, and thus, the
situation requires extensive information search and evaluation.
1.These goods are ones of high involvement; they are expensive; they are infrequently bought;
there is considerable amount of risk involved.
2.These are generally first time purchases
Examples: Jewellery, electronic goods, Real estate and property etc.
(ii) Limited problem solving (LPS) :The consumer is familiar of the product or service
offering; but he is unaware of the various brands. The case is one where the buyer is familiar
with the product category but unfamiliar with the brands. The types of products and /
situations where we generally have LPS:
3.These goods are ones of low involvement; they are generally moderately priced; they are
frequently bought; there is lesser amount of risk involved.
4.These are generally recurring purchases.
Exceptions: They may also be cases where an expensive product is being repurchased.
Examples: A laptop replacing a desktop, a second TV for the home.
(iii)Routinized problem solving (RPS) or Routinized response behavior:
The consumer is well informed and experienced with the product or service offering. The
consumer is aware of both the decision criteria as well as the various brands available.
Here, the goods are ones of low involvement; they are inexpensive; they are frequently
bought; there is no risk involved. These are routine purchases and are a direct repetition, where
the consumer may be brand loyal.
Examples: Staples, Cold drinks, Stationery etc.