CONSUMER BEHAVIOR-
Intro
BY: Priti Mishra
1
Objectives
• Determine how cultural, social, personal,
and psychological factors influence
consumer buying behavior.
• Describe how the consumer makes a
purchasing decision.
2
Consumer Behavior
• The field of Consumer Behavior:
“studies how individuals, groups, and organizations
select, buy, use, and dispose of goods, services,
ideas, or experiences to satisfy their needs and
desires.”
The behavior that consumers display in searching for,
purchasing, using, evaluating, and disposing of
products and services that they expect will satisfy
their needs.
3
CONSUMER BEHAVIOR ROLE
• Roles people play in the decision making
process
– Initiator (who determines need are not met &
initiate the purchase to rectify)
– Influencer (who intentionally or unintentionally
effect the purchase decision)
– Decider (who decides or suggest what should be
purchased)
– Buyer (who actually purchase)
– User ( who use the purchase)
4
Frame work for studying consumer
behavior
1. External Environment (culture, personal,
social, family etc.)
2. Individual Environment (motivation,
attitudes, information, learning, and
personality)
3. Decision process (problem recognition,
information search, purchase decision,
and post-purchase behavior)
5
Simple Response Model
Stimulus
Stimulus Organism
Organism Response
Response
6
Model of Consumer Behavior
Marketing
Marketing and
andOther
OtherStimuli
Stimuli
Buyer’s
Buyer’sBlack
BlackBox
Box
? ?
Buyer’s
Buyer’s Response
Response
7
Model of Buying Behavior
Marketing Other Buyer’s Buyer’s decision
stimuli stimuli characteristics process
Product Economic Cultural Problem recognition
Price Technological Social Information search
Place Political Personal Evaluation
Promotion Cultural Psychological Decision
Post-purchase
behavior
Buyer’s decisions
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount 8
How and Why Consumers Buy
• Buying behavior is influenced by:
– Cultural factors
– Social factors
– Personal factors
– Psychological factors
9
Characteristics Affecting Consumer
Behavior
Cultural
Cultural
Social
Social
Family
Family &
& Lifestyle
Lifestyle
Psychological
Psychological
Buyer
Buyer
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How and Why Consumers Buy
• Exert broadest and
Influence Factors deepest influence
• Culture
• Cultural • Subculture
• Social • Social classes
• Personal
• Psychological
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Cultural Factors
Culture
Subculture
Social Class
Buyer
Buyer
12
How and Why Consumers Buy
Major U.S. Social Classes
• Upper Uppers
• Middle Class
• Lower Uppers
• Working Class
• Upper Middles
• Upper Lowers
Lower Lowers
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How and Why Consumers Buy
• Reference groups
Influence Factors – Membership
• Primary vs. secondary
– Aspirational vs.
• Cultural dissociative
• Social • Family
• Personal • Social roles and statuses
• Psychological
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Social Factors
Reference
Reference
Groups
Groups
Roles
Roles&&
Family
Family Statuses
Statuses
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How and Why Consumers Buy
• Age
Influence Factors
• Stage in life cycle
• Occupation
• Cultural
• Economic circumstances
• Social • Lifestyle
• Personal • Personality
• Psychological • Self-concept
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How and Why Consumers Buy
VALS 2 classifies U.S. adults into
eight psychographic groups
• Actualizers
• Believers
• Fulfilleds
• Strivers
• Achievers
• Makers
• Experiencers
• Strugglers
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Family and Lifestyle Influences
Family Influences
Age and Life Cycle Stage Occupation
Economic Situation
Lifestyle Identification
Activities Opinions
Interests
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How and Why Consumers Buy
Influence Factors • Motivation
• Perception
• Cultural • Learning
• Social • Beliefs
• Personal • Attitudes
• Psychological
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Psychological Factors
Motivation
Motivation
Beliefs &&
Beliefs
Perception
Perception Learning
Learning
Attitudes
Attitudes
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Maslow’s Hierarchy of Needs
Self
Actualization
Self-Esteem
Belongingness
Safety
Physiological
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Consumer Buying
Roles
User
User Initiator
Initiator
Key
Family
Decision
Buyer
Buyer Roles Influencer
Influencer
Decider
Decider
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Four Types of Buying Behavior
High Low
Involvement Involvement
Significant
differences Complex Variety-
between Buying Seeking
brands Behavior Behavior
Few Dissonance- Habitual
differences Reducing Buying Buying
between Behavior Behavior
brands
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Consumer Buying Decision Process
• In addition to understanding how these
factors influence consumers, marketers
must identify and understand:
– Who makes the buying decision
– The types of buying decisions
– The stages in the buying process
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Consumer Buying Process
Problem
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Post-purchase
behavior
25
Consumer Buying Decision Process
Understand • Initiator
• Influencer
• Buying roles • Decider
• Buying behavior • Buyer
• Buying decision • User
process
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Consumer Buying Decision Process
• Complex buying behavior
Understand
• Dissonance-reducing
buying behavior
• Buying roles • Habitual buying behavior
• Buying behavior • Variety-seeking buying
• Buying decision behavior
process
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Decision Making Sets
Total
Set Aware-
ness Consid-
Set eration
Choice
Set
Set Decision
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Consumer Buying Decision Process
Understand • Problem recognition
• Information search
• Buying roles • Evaluation of alternatives
• Buying behavior • Purchase decision
• Postpurchase behavior
• Buying decision
process
29
Consumer Buying Decision Process
• Postpurchase Behavior:
– Consumers’ expectations are compared to
performance
– Postpurchase satisfaction influences future
behavior
• Purchasing behavior
• Word-of-mouth communications
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Consumer Buying Decision Process
• Marketers should attempt to influence and
monitor postpurchase behavior
– Postpurchase communications reduce dissonance,
returns, and order cancellations
– Talk with customers to discover new uses for
existing products
– Investigate methods of product disposal
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How Customers Use or
Dispose of Products
To be
Rent it Give it (re)sold
Get rid of it away
temporarily Loan it
To be
used
Trade it
Get rid of it
Product permanently Direct to
Use for consumer
original Sell it
purpose
Keep it Convert Through
to new Throw it middleman
purpose away
Store it To
intermediary
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