CONSUMER BEHAVIOUR

People buy things to satisfy two basic needs – (1) Physical or Material, and (2) Psychological or
Mental. The buying decision is influenced by these two basic factors in various combinations, of
course along with certain other external factors. Persons buying the same product may have
different reasons to do so, and persons having same reasons may buy different products. The
study of these Physical & Psychological factors along with various other factors that influence the
consumer to make a buying decision is therefore of utmost important for marketers, and these
constitute the subject matter of Consumer Behaviour.
Consumer Behaviour ( or Buyer Behaviour ) is defined as :
1. The acquisition, consumption and disposition of products, services, time and ideas by
decision making units (individual or organisational).
2. It is the body of knowledge which studies various aspects of purchase and consumption of
products and services by individuals with various social and psychological variables at play.
3. The behaviour that the consumers display in searching for, purchasing, using, evaluating and
disposing of products and services that they expect will satisfy their needs.
4. The study of consumer behaviour involves search, evaluation, purchase, consumption and
post purchase behaviour of the consumers and includes the disposal of purchased products
keeping environment and personal characteristics in mind.

Introduction :
The study of Consumer Behaviour is quite complex, because of many variables involved and their
tendency to interact with & influence each other and the buyer. These variables are divided into
two major sections that have been identified as the most important general influences on
Consumer Behaviour. Imagine three concentric circles, one at the outer-most, one in the middle
& one at the inner-most, and they represent the following :
1. External Environmental Variables Influencing Behaviour : The external environments are the
basic or specific influences which are represented by the outer-most circle :
a. Culture, and Sub-culture,
b. Social Class, and Social Group,
c. Family, and Personal Influences,
d. Other External Influences (which are not categorised by any of the above six), like political,
statutorial, geographical, economical, religious environment, etc.
2. Individual Determinants of Behaviour : Major individual determinants of Consumer Behaviour
are portrayed in the middle ring. These variables are personal in nature and influence the way
consumers proceed thro’ a decision making process regarding products & services. They are :
a. Personality & Self-concept,
b. Motivation & Involvement,
c. Perception & Information Processing,
d. Learning & Memory,
e. Attitudes.
3. The Consumer Decision Process : The inner-most circle denotes the consumer decision
making process regarding products & services. These are basically the physical attributes of
decision making process. The major steps are :
a. Problem Recognition,

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 b. Information Search,
c. Evaluation of Application,
d. Purchase Decision,
e. Post-Purchase Behaviour.
Marketers are frequently uncertain about the variables that are at play influencing & affecting
consumers. Sometimes this occurs because they don’t clearly understand the extent of variables
that might be having an influence. The details of all external, internal, environmental, economical
etc. are discussed above. Sometimes some variables are not directly observable. Other times
variables are known to the marketers but their exact nature & relative strength of influence is not
apparent. In these circumstances, it is useful to understand the above mentioned concepts and
how the consumers behave, so that their decision making process can be predicted to a
reasonable & profitable extent.

Individual
Buying
Decision

Individual
Determinants
of Behaviour

External
Environmental
Variables

© Himansu S M / 09-07-2009