CONSUMER BEHAVIOR

DIMENSIONS OF CONSUMER
BEHAVIOR
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 behavioral variables
in an attempt to understand people's
wants.
Objectives of Consumer Behavior

◼ Be able to define the consumer market and

construct a simple model of consumer buying
behaviour.
◼ Know the major factors that affect the
consumer buying behaviour.
◼ Understand the major type of buying decision
behaviour and the stages in the buying
process.
◼ Be able to understand the adoption and
diffusion process for new product
IMPORTANCE OF CONSUMER
BEHAVIOUR
◼ Modern Philosophy
◼ Achievement of Goals
◼ Useful for dealers and salesmen
◼ Predicting Market Trend
◼ Adjusting Marketing Programe over time
◼ Consumer Differentiation
◼ Creation and Retention of consumers
◼ Developing New products
Factors Influencing Consumer Behavior
◼ CULTURAL FACTORS
◼ SOCIAL FACTORS
◼ PERSONAL &PHYSICAL FACTORS
◼ PSYCOLOGICAL FACTORS
Cultural Factors
◼ Culture is the basis set of values,
perceptions, wants, beliefs which are learned
by the family or member of society and other
important institutions.
◼ Sub culture .Each culture contain smaller
subculture. Subculture is a group of people
with shared value system based on common
life, experiences and situations.
Subculture might be nationality group, religion
group or geographical group
Social Factors

◼Reference group-Reference group that is

able to influence others.
People are often influence by reference groups
which they do not belong.
Reference group expose a person to new
behaviors and lifestyle.
Opinion Leaders

◼ Opinion leader or word of mouth are those

who have in-depth knowledge and
experience in their field and who can
influence other.
Family

◼ A consumer’s purchases are also influenced

by family members. The influenced is very
strong because the family is the most
important consumer buying organization in
the society.
◼ Marketer try to identify the influencer in the
family.
Role and Status
◼ A person belongs to many groups and the person’s position
within each group can be defined in terms of both role and
status.

◼ A role is the activities a person is expected to perform according

to the people around him or her.

◼ Status is the general esteem given to a role by society. People

often choose products that show their status in society.
Personal& Physical Factors
◼ Age
◼ Status
◼ Occupation
◼ Personality
◼ Economic position
◼ Education
◼ Life style
◼ Health
◼ Height &Weight
Psychological Factors
◼ Attitude & Beliefs
◼ Motivation
◼ Perception
◼ Learning
Reasons for Studying Consumer Behavior

◼ To stay in business by attracting and

retaining customers
◼ To benefit from understanding consumer
problems
◼ To establish competitive advantage
◼ …because it is interesting!
 The Buyer Decision Process
◼ Five Stages Model:
❑ Need recognition
❑ Information search
❑ Evaluation of alternatives
❑ Purchase decision
❑ Post purchase behavior
The Buyer Decision Process

Process Stages
◼ Needs can be triggered by:
❑ Internal stimuli
◼ Normal needs become
◼ Need recognition strong enough to drive
◼ Information search behavior

◼ Evaluation of ❑ External stimuli

◼ Advertisements
alternatives
◼ Friends of friends
◼ Purchase decision
◼ Post purchase
behavior
 Sources of Problem Recognition

New Needs
Out of Stock Dissatisfaction
or Wants

Related Product Market-Induced New

Purchase Recognition Products
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Buyer Decision Process

Process Stages ◼ Information is done by two

ways
1. External Search
◼ Need recognition 2. Internal Search
◼ Information search
◼ Evaluation of
alternatives
◼ Purchase decision
◼ Post purchase
behavior
Information Search

Personal
Sources

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Buyer Decision Process

Process Stages ◼ Evaluation procedure

depends on the
consumer and the buying
◼ Need recognition situation.
◼ Information search ◼ Most buyers evaluate
◼ Evaluation of multiple attributes, each
alternatives of which is weighted
◼ Purchase decision differently.
◼ Postpurchase behavior ◼ At the end of the
evaluation stage,
purchase intentions are
formed.
The Buyer Decision Process

Process Stages ◼ Two factors intercede

between purchase
intentions and the actual
◼ Need recognition decision:
◼ Information search ❑ Attitudes
◼ Evaluation of ❑ Unexpected situational
alternatives factors
◼ Purchase decision
◼ Post purchase behavior
The Buyer Decision Process

Process Stages ◼ Satisfaction is important:

❑ Delighted consumers engage
in positive word-of-mouth.
◼ Need recognition ❑ Unhappy customers tell on
average 11 other people.
◼ Information search ❑ It costs more to attract a new
customer than it does to retain
◼ Evaluation of an existing customer.
alternatives
◼ Purchase decision
◼ Post purchase behavior
 Consumer Decision Making

Decision Stage Psychological Process

Problem Recognition Motivation

Information Search Perception

Alternative Evaluation Attitude Formation

Purchase Decision Integration

Post purchase Evaluation Learning

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Types of Buying-Decision Behavior

Difference Involvement Level

between brands High Low

Significant Complex Variety-seeking

Differences buying buying behavior
behavior
Few
Dissonance- Habitual buying
Differences reducing behavior
buying
behavior
◼Types of Buying-Decision Behavior
Buying behavior differs greatly depending on
what is being bought. More complex
decisions usually involve more buying
participants and more buyer deliberation.
Complex Buying Behavior

◼ Complex buying behavior occurs when

consumers are highly involved in a
purchase and perceive significant
differences among brands.
Consumers may be highly involved when
the product is expensive, risky, purchased
infrequently, and highly self-expressive.
Dissonance-Reducing Buying
Behavior
◼Dissonance-reducing buying behavior occurs when
consumers are highly involved with expensive,
infrequent, or risky purchase, but see little difference
among brands.

After these purchases, it is common to experience post

purchase dissonance (after-sale discomfort) when
they notice certain disadvantages of the purchase or
hear favorable things about brands not purchased.
Counter dissonance occurs with after-sale
communications to support claims and make
consumers feel better about purchases.
Habitual Buying Behavior

◼ Habitual buying behavior occurs under

conditions of low consumer involvement
and little significant brand difference.
In these cases, consumer behavior does
not pass through the usual belief-attitude-
behavior sequence. Ad repetition creates
brand familiarity rather than brand
conviction.
Variety-Seeking Buying Behavior

◼ Consumers undertake variety-seeking buying

behavior in situations characterized by low
consumer involvement, but significant
perceived brand differences.