CONSUMER
BEHAVIOUR
Module 4
Consumer Behavior
Consumer buyer behavior refers to the buying behavior
of final consumers—individuals and households who buy
goods and services for personal consumption.
Consumer market refers to all the personal consumption
of final consumers.
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Model of Buyer Behavior
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Factors Influencing Consumer Behavior
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CULTURE
Culture
Culture is the learned
values, perceptions,
wants, and behavior from
family and other
important institutions.
CULTURE
Subcultures
Subcultures are groups of people
within a culture with shared
value systems based on common
life experiences and situations.
CULTURE
Social classes
Social classes are society’s relatively permanent and ordered
divisions whose members share similar values, interests, and
behaviors.
Measured by a combination of occupation, income, education,
wealth, and other variables
Social Factors
Reference Groups
Reference group is a group of people with
whom a person associates himself. i.e. want
to be called as a member of that group.
These include clubs, schools, professional or
playgroups, churches, a group of friends, etc.
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Social Factors
Family
A child develops his buying behaviour and preferences
by watching his parents and tend to buy the same
products or services even when he grows old.
The family can influence the buying behaviour of an
individual in either of the two ways:
Influences the personality, attitude, beliefs, and characteristics of the
individual.
Influences the decision making of an individual with respect to the
purchase of certain goods and services.
Social Factors
Roles and Status
Each person has different roles and status
in society in terms of groups, clubs, family,
etc. organization to which it belongs.
If a person is in a high position, his buying
behaviour will be influenced largely by his
status.
Personal Factors
Age
Consumers change the purchase of goods and services
over time.
The purchasing choices of a teenager would obviously
differ from what an elderly person purchase.
Family life cycle consists of different stages as young
singles, married couples, etc. that help marketers to
develop suitable products for each stage.
Personal Factors
Occupation
The occupation of a person
has a significant impact on
their buying behaviour.
A person tends to buy things
that are appropriate to
his/her profession
Personal Factors
Income
Income of the consumer has a great
influence on their buying behaviour.
Higher disposable income compels us to
spend more on luxurious items
A lower or mediocre income makes us
spend more on our basic needs like
education, groceries, and clothing
Personal Factors
Lifestyle
Lifestyle is an attitude, and a way in which
an individual stay in the society.
The consumer buying behaviour is
influenced by his lifestyle.
Our way of life is one of the most powerful
influencers that controls our choices.
PSYCHOLOGICAL FACTORS
Motivation
Motivation becomes a considerable
defining factor influencing a
person’s buying behaviour.
The level of motivation influences
the buying behaviour of the
consumers.
PSYCHOLOGICAL FACTORS
Perception
Perception is a process whereby stimuli are
received by an individual, interpreted by him
and translated into a response. In simple
words, it is how an individual sees the world
around him.
Customer perception is a process where a
customer collects information about a product
and interprets the information to make a
meaningful image about a particular product.
PSYCHOLOGICAL FACTORS
Beliefs and Attitudes
Consumers have certain attitude
and beliefs which influence the
buying decisions of a consumer.
Client has specific beliefs and
attitudes towards different
products.
PSYCHOLOGICAL FACTORS
Learning
Every time we purchase a product, we get a
deeper knowledge about it through experience.
The individual’s learning depends on the skills,
knowledge and intention.
The skills are developed through practice while
the knowledge and intention are acquired with
the experience.
CONSUMER
DECISION
MAKING
PROCESS
Consumers have their own needs in their daily lives
and these needs make them make different decisions.
Buying decisions can be complex depending on the
consumer’s opinion about a particular product,
evaluating and comparing, selecting and purchasing
among the different types of product.
Becomes a common practice among companies
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CONSUMER DECISION MAKING PROCESS
Problem/Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-Purchase Evaluation
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CONSUMER DECISION MAKING PROCESS
Need Recognition
Need recognition occurs when the buyer recognizes a
problem or need triggered by:
• Internal stimuli
• External stimuli
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CONSUMER DECISION MAKING PROCESS
Information Search
Information search is the amount of information needed in the buying
process and depends on:
The strength of the drive,
The amount of information you start with,
The ease of obtaining the information,
The value placed on the additional information, and
The satisfaction from searching.
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CONSUMER DECISION MAKING PROCESS
Information Search
Sources of information:
Personal sources—family and friends
Commercial sources—advertising, Internet
Public sources—mass media, consumer organizations
Experiential sources—handling, examining, using the product
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CONSUMER DECISION MAKING PROCESS
Evaluation of Alternatives
Evaluation of alternatives is how the consumer processes
information to arrive at brand choices.
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CONSUMER DECISION MAKING PROCESS
Purchase Decision
The purchase decision is the act by the consumer to buy the
most preferred brand.
The purchase decision can be affected by:
Attitudes of others
Unexpected situational factors
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CONSUMER DECISION MAKING PROCESS
Post-Purchase Decision
The post-purchase decision is the satisfaction or dissatisfaction
the consumer feels about the purchase.
Relationship between:
Consumer’s expectations
Product’s perceived performance
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CONSUMER DECISION MAKING PROCESS
Post-Purchase Decision
Customer satisfaction is a key to building profitable relationships
with consumers—to keeping and growing consumers and reaping
their customer lifetime value.
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THANK YOU
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