Karthigai Prakasam.

C
Lecturer In management,
New Horizon College,
Outer Ring Road,
Near Marathahalii,
Bangalore-560087
CONSUMER BEHAVIOR

DIMENSIONS OF CONSUMER
BEHAVIOR
 CONSUMER BEHAVIOUR
Definition

“The process whereby individuals decide whether, what ,

when, where, how and from whom to purchase goods and
services”
Prof. Walter C.G and Prof Paul G.W

“The behaviour that consumers display in searching for,

purchasing, using, evaluating and disposing of, it products and
services that they will satisfy their needs.”
Leon G.Schiffman and Lesile lazar kanuk
 CONSUMER BUYING PROCESS

Steps in buying process :

1. Need recognition

2. Information Search

3. Evaluation and Intention

4. Purchase Decision

5. Post –Purchase reaction

 DETERMINANTS OF CONSUMER
BEHAVIOUR
1. Economic Determinants :

a. Personal income

b. Family income

c. Consumer Income expectations

d. Consumer liquid assets

e. Consumer credit

f. The level of standard of living

2. Psychological Determinants :

a. Motivation

b. Perception

c. Learning

d. Attitude

e. Personality
3. Sociological Determinants:

a. Family

b. Reference Groups

c. Opinion Leaders

d. Social class and caste

e. Culture
 BUYING MOTIVES

A Buying motive is the reason why a person buys a

particular product.

“ A motive is a drive or an urge for which an individual

seeks satisfaction ; it becomes a buying motive when the individual
seeks satisfaction through the purchase of something .”
Prof. William Stanton .

“ Buying motives are those influences or considerations

which help the in getting on to satisfaction.”
Mr. D. J. Durian
CLASSIFICATION OF BUYING MOTIVES
1. Innate and Acquired Motive

2. Primary and Secondary Motive

3. Conscious and Dormant motive

4. Physical and Psychological Motive

5. Positive and Negative Motive

6. Product and patronage Motive

7. Rational and Emotional Motive

 BUYING MOTIVES
BUYING
MOTIVES

PRODUCT PATRONAGE
MOTIVES MOTIVES

EMOTION RATION EMOTION RATIONA

AL AL AL L
 PRODUCT MOTIVES
1. Product Emotional Buying Motives:

1. Pride
2. Vanity
3. Jealousy
4. Fashion or Imitation
5. Sex
6. Habits
7. Love and Affection
8. Comfort
9. Aesthetic Pleasure
10. Praise
2. Product Rational Motives :

1. Safety or Fear
2. Suitability
3. Durability
4. Economy
5. Convenience
6. Versatility
7. Profit or Cupidity
8. Curiosity
9. Recreation
10. Hobbies
 PATRONAGE MOTIVES
1. Patronage Emotional Motives :

1. Appearance of the store

2. Recommendation of friends and relatives
3. Imitation
4. Prestige
5. Habit

2. Patronage Rational Motives

1. Proximity
2. Widest Assortment
3. Credit Facilities
4. Treatment
5. Services Offered
 CONSUMER BEHAVIOR
 Consumer behavior is the study of how
people buy, what they buy, when they buy
and why they buy. It attempts to understand
the buyer decision making process, both
individually and in groups. It studies
characteristics of individual consumers such
as demographics, psychographics, and
behavioural variables in an attempt to
understand people's wants.
 STAGES OF THE CONSUMER
BUYING PROCESS

Consumer buying decision process includes

six stages. They are:
 Problem Recognition
 Information Search
 Evaluation of alternatives
 Purchase Decision
 Purchase
 Post-Purchase Evaluation
 1. PROBLEM RECOGNITION

 Difference between the desired state and the

actual condition.

Example:
 By seeing a commercial for a new pair of shoes,
stimulates your recognition that you need a new
pair of shoes.
 Hunger stimulates your need to eat.
 2. INFORMATION SEARCH
 Internal Search:
--- Memory
 External Search:
--- Friends and Relatives
A successful information search leaves a buyer with
possible alternatives, the evoked set.

Example:
Hungry, want to go out and eat, evoked set is
 Chinese food
 Indian food
 Burger king
 3. EVALUATION OF ALTERNATIVES

 Need to establish criteria for evaluation,

features the buyer wants or does not want.
 Rank/weight alternatives.

Example:
If you want to eat something spicy, then
Indian food gets the highest rank etc…
 4. PURCHASE DECISION :

Choose buying alternative, includes

product, package, store, method of
purchase etc.

5. PURCHASE :
May differ from decision, time lapse
between purchase decision and the actual
purchase, product availability.
 6. POST-PURCHASE EVALUATION :

It is the outcome Satisfaction or

Dissatisfaction. This can be reduced by
warranties, after sales communication etc.

Example:
After eating an Indian meal, you may
think that really you wanted a Chinese
meal instead.
 TYPES OF CONSUMER BUYING
BEHAVIOR :

There are four types of consumer buying

behavior, they are :
 Routine Response/Programmed Behavior
 Limited Decision Making
 Extensive Decision Making
 Impulse buying
 1. ROUTINE RESPONSE /
PROGRAMMED BEHAVIOR

Buying low involvement, frequently

purchased, low cost items.

Examples :
Soft drinks, snack foods, milk etc.
 2. LIMITED DECISION
MAKING
 Buying product occasionally.
 That is when you need to obtain
information about unfamiliar brand in a
familiar product category.

Example:
Clothes--know product class but not the
brand.
 3.EXTENSIVE DECISION
MAKING :
Complex high involvement,
unfamiliar, expensive and infrequently
bought products.
Spend a lot of time seeking
information and deciding. High degree of
risk.

Example:
Cars, homes, computers, education.
 4. IMPULSE BUYING :

No conscious planning.
The purchase of the same product does not
always elicit the same Buying Behavior. Product
can shift from one category to the next.
For example:
Going out for dinner for one person may be
extensive decision making (for someone that does
not go out often at all), but limited decision
making for someone else. The reason for the
dinner, whether it is an anniversary celebration, or
a meal with a couple of friends will also determine
the extent of the decision making.
 Consumer Behaviour Models
The Economic Model
The Learning Model
The Psycho-analytical Model
The sociological Model
The Howard-Sheth Model
The buyer is analysed here as a system
with stimuli as the input into the system, and
behaviour as the output of the system. In
between the inputs and outputs there are
variables affecting perception and learning
Howard-Sheth Model of Consumer Behavior
Product Marketing
Marketing and
and Economic
Price Other
Other Stimuli
Stimuli Technological
Place Political
Promotion Cultural

Buyer’s Characteristics
Decision Process
Buyer’s
Buyer’s Black
Black Box
Box Affecting
Consumer
Behavior

Product Choice Purchase

Buyer’s
Buyer’s Response
Response Timing
Brand Choice
Purchase
Dealer Choice Amount
Let’s study the Buyer’s Black
Box
Characteristics Affecting Consumer Behavior

Culture
Social
Personal
Psychological

Buyer
Buyer
Factors Affecting Consumer Behavior:
Culture

Most
 Most basic
basic cause
cause of
of aa person's
person's wants
wants and
and behavior.
behavior.
Values
 Values
Perceptions
 Perceptions

Subculture
Subculture Social
SocialClass
Class
••Groups
Groupsofofpeople
peoplewith
withshared
shared ••People
Peoplewithin
withinaasocial
socialclass
class
value
valuesystems
systemsbased
basedon
on tend
tendto
toexhibit
exhibitsimilar
similarbuying
buying
common
commonlife
lifeexperiences.
experiences. behavior.
behavior.
••Hispanic
HispanicConsumers
Consumers •• Occupation
Occupation
••African
AfricanAmerican
AmericanConsumers
Consumers ••Income
Income
••Asian
AsianAmerican
AmericanConsumers
Consumers ••Education
Education
••Mature
MatureConsumers
Consumers ••Wealth
Wealth
Factors Affecting Consumer Behavior:
Social

Groups
Groups Membership
Membership
••Reference
Reference

Family
Family
••Husband,
Husband, wife,
wife, kids
kids Social
Social Factors
Factors
••Influencer,
Influencer, buyer,
buyer, user
user

Roles
Roles and
and Status
Status
Factors Affecting Consumer Behavior :
Personal
Personal
Personal Influences
Influences
Age
Ageand
andFamily
FamilyLife
LifeCycle
Cycle Occupation
Occupation
Stage
Stage

Economic
EconomicSituation
Situation Personality
Personality&& Self-Concept
Self-Concept

Lifestyle
Lifestyle Identification
Identification

Activities
Activities Opinions
Opinions

Interests
Interests
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological

Motivation
Motivation

Beliefs
Beliefs and
and Psychological
Factors PPerception
erception
Attitudes
Attitudes

Learning
Learning
Maslow’s Hierarchy of Needs
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)