Chapter-8

Consumer Behavior
 Meaning
• An orderly process whereby
• An individual interact with his environment
• For the purpose of making market decisions
• Relating to products & services
• Expressed in the form of buying patterns
• Who influences the buying decision
• Who makes the buying decision
• Who makes the actual purchase
• Who ultimately uses the product
Definition • Consumer Behavior is
all psychological, social
and physical behavior
of potential customers
as they become aware
of, evaluate, purchase,
consume and tell other
people about products
& services.
 Types of Consumers
• Habit Determined Group
• Cognitive Group (conscious)
• Emotional Sector Group
• New Group
• Impulsive Group
 Buyer
Buyer
Psychological
Psychological
Personal
Personal
Socio-Cultural
Socio-Cultural
Economic
Economic
Determinants of Consumer Behavior
1.Determinants of consumer behavior

Cultural Social Personal Psychological

• Culture • Reference • Age & Life • Motivation
• Sub-Culture Groups cycle stage • Perception
• Social Class • Family • Occupation • Learning
• Roles & • Economic • Beliefs &
Statuses circumstances attitudes Consumer or
• Lifestyle Buyer behavior
• Personality &
Self concept

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Determinants of consumer behavior

• Culture-Set of values ,perceptions, preferences & behavior acquired through

family & other key institutions
• Sub-Culture-Nationality, Religion, Racial groups, Geographical regions
• Social Class-Relatively homogeneous &enduring divisions in a society which are
hierarchly ordered &whose member share similar values, Interest & behavior
• Reference groups-Groups that have direct(face-to-face) or indirect influence on
person’s attitude & behavior. e.g. Direct & indirect influencing groups & direct
reference has Primary as well as secondary references.
• Family-Most imp. Consumer buying organization in society. It Constitutes most
influential primary reference group.
• Family of orientation-Parents & siblings & Family of procreation-Spouse & Children
e.g. Husband dominant: Life insurance, Automobile, TV/Media entertainment etc.
Wife dominant: Furniture, Kitchen ware, Home care, Washing machines, other
durables etc.
Equal: Vacations, Housing, Outside home entertainment etc.
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Determinants of consumer behavior….continued

• Role & Statuses-Role consists of activities that a person is expected to perform &
each role carries a status
• Personal factors-Age & Stage in life cycle, Occupation, Economic circumstances
• Life style-Person’s pattern of living in the world as expressed in person’s activities
,interest & opinions
• Personality-Person’s distinguishing psychological characteristics that lead to
relatively consistent & enduring responses to his/her environment. Traits such as self
confidence,dominance,autonomy,sociability,defensiveness,adaptability etc.
• Motivation-Needs arise from Biogenic(Physiological) & Psychogenic(Psychological)
states. Need aroused to a sufficient level of intensity then it becomes motivation
• Perception- process by which individual selects, organizes & interprets info. Inputs
to create meaningful pictures of the world
• Learning-Involves changes in individual’s behavior arising from experience
• Beliefs & attitudes- Beliefs are descriptive thoughts that a person holds about
something & attitude is person’s favorable or unfavorable evaluations, emotional
feelings & action tendencies towards some object or area.
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1. Economic Determinants
• Personal Income
• Disposable Income
• Discretionary Income
• Family Income
• Income Expectations
• Consumer’s Liquid Assets
• Consumer Credit
• Standard of Living
• Govt. Policy (tax) & Economic Conditions
2. Sociological Factors
• Family
• Reference Groups (social, economic, professional
groups with whom the customer interacts)
• Opinion Leaders
(Buzz Marketing/online
social marketing)
• Roles & Status
• Social Class
• Culture
Family

User
User Initiator
Initiator

Key
Family
Decision
Buyer
Buyer Roles Influencer
Influencer

Decider
Decider
3. Psychological Determinants

Motivation
Motivation

Beliefs &
Beliefs &
Perception
Perception Learning
Learning
Attitudes
Attitudes
(a) Motivation
• Has close relationship with the behavior of human
being
• Motivation is something that drives or encourages
a person into action and continues him in the
course of action.
Maslow’s Hierarchy of Needs
Self
Actualization

Self-Esteem

Social

Safety

Physiological
(b). Perception & Image
• A process by which people select, organize and
interpret information to form a meaningful
picture of something
• For same stimulus, people form different
perceptions because of:
• Selective attention
• Selective distortion
• Selective retention
 Drives
(c). Learning
• Any change in behavior which
comes as a result of Stimuli
experience.
• Eg.: Buying a digital camera
Cues

Responses

Re-
Inforcemen
t
(d). Beliefs & Attitudes
• Beliefs are descriptive thought that a person has
about something.
• If beliefs are wrong and prevent purchase, the marketer
will want to launch a campaign to correct them.
• Attitude is a person’s relatively consistent
evaluations, feelings and tendencies toward an
object or idea.
• Hard to change.
Personality Lifestyle
Education
Occupation Age and Life Cycle Stage
Personal Factors
4. Personal Determinants
 Buying Motives
• Buying motives are defined as ‘all the impulses, desires and
considerations’ which persuade or motivate a buyer to
purchase a specific product.

Buying
Motives

Product Patronage
Motives Motives

Emotional Rational Emotional Rational

Motives Motives Motives Motives
 Buying Motives…

Product Motives
Product buying motives refer to those influences and
reasons, which prompt a buyer to choose a particular
product in preference to other products. They include
the physical attraction of the product (i.e. the design,
shape, dimension, size, colour, package, performance,
price etc. of the product) or the psychological attraction
of the product (i.e. the enhancement of the social
prestige or status of the purchaser through its
possession), desire to remove or reduce the danger or
damage to life or body of the possessor, etc. In short,
they refer to all those characteristics of a product, which
induce a buyer to buy it in preference to other products.
 Buying Motives… (Product Motives)

Rational Emotional Motives

o Safety or o Pride or Prestige
Security o Emulation or Imitation
o Economy
o Affection
o Relatively low
o Comfort or desire for
price
Emotional comfort
o Suitability
o Ambition
o Utility or
versatility o Desire for
distinctiveness or
o Durability of the
individuality
product
o Desire for recreation
o Convenience of
or pleasure
the product
o Hunger and thirst

Rational o Habit
Buying Motives…
Patronage Motives
Patronage buying motives refer to those
considerations or reasons, which prompt a buyer
to buy the product wanted by him from a
particular shop or company in preference to other
shops. In other words, they are those
considerations or reasons, which make a buyer,
patronize a particular shop in preference to other
shops while buying a product.
 Buying Motives… (Patronage Motives)

Rational Emotional Motives

o Convenience o Appearance of the
o Low price charged shop
by the shop o Display of goods in the
o Credit facilities shop
offered Emotional o Recommendation of
o Credit facilities others
offered o Imitation
o Efficiency of o Prestige
salesmen
o Habit
o Wide choice
o Treatment
o Reputation of the
shop5
Rational
The Buyer Decision Process

Evaluation
Need Post
Informatio of Purchase
Recognitio purchase
n Search alternative decision
n behavior
s
Consumer's purchase decision process
(exclude industrial purchase decision
process)
• Problem Recognition-Recognition of Problem Recognition
Problem or Need. Biogenic or Psychogenic
• Information search-from Personal,
commercial, public or experiential sources Information search
• Evaluation of Alternatives- On the basis of
Need, Benefits, Bundle of attributes
• Purchase Decision-Purchase intention & Evaluation of Alternatives
purchase decision based upon attitude of
others &unanticipated situational factors
• Post Purchase Behavior-Level of
Satisfaction or Dissatisfaction, post Purchase Decision
purchase actions, product use & disposal

Post purchase Behavior

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 The Buyer Decision Process
Need Recognition

• Occurs when the buyer recognizes a problem

or need triggered by:
• Internal stimuli
• External stimuli
 The Buyer Decision 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
 The Buyer Decision Process…
Evaluation of Alternatives

• How the consumer processes information to arrive

at brand choices
 The Buyer Decision Process
Purchase Decision

• The act by the consumer to buy the most

preferred brand
• The purchase decision can be affected by:
• Attitudes of others
• Unexpected situational factors
 The Buyer Decision Process…
Post-Purchase Decision

• The satisfaction or dissatisfaction that the

consumer feels about the purchase
• Relationship between:
• Consumer’s expectations
• Product’s perceived performance
• The larger the gap between expectation and
performance, the greater the consumer’s
dissatisfaction
• Cognitive dissonance is the discomfort caused by
a post purchase conflict
The Buyer Decision 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
Behaviour of Indian Consumer
Bargaining
Price Conscious
Role of Women
Changing Consumption Pattern
Credit
Thank You