DEFINING CONSUMER BEHAVIOR

Consumer behavior may be defined as, the decision process and physical activity
individuals engage in when evaluating, acquiring, using, or disposing of goods and services.
Technically, consumer behavior is defined as, the dynamic interaction of affect and
cognition, behavior and environmental events by which human beings conduct the exchange
aspects of their lives.
One official definition of consumer behavior is The study of individuals, groups, or
organizations and the processes they use to select, secure, use, and dispose of products,
services, experiences, or ideas to satisfy needs and the impacts that these processes have
on the consumer and society.
Although it is not necessary to memorize this definition, it brings up some useful points:
Behavior occurs either for the individual, or in the context of a group (e.g., friends
influence what kinds of clothes a person wears) or an organization

THE NATURE OF CONSUMER BEHAVIOR
Figure 1.1 is the model that we use to capture the general structure and process of
consumer behavior and to organize this text. It is a conceptual model. It does not contain
sufficient detail to predict particular behaviors; however, it does reflect our beliefs about
the general nature of consumer behavior. Individuals develop self-concepts and subsequent
lifestyles based on a variety of internal (mainly psychological and physical) and external
(mainly sociological and demographic) influences. These self-concepts and lifestyles produce
needs and desires, many of which require consumption decisions to satisfy. As individuals
encounter relevant situations, the consumer decision process is activated. This process
and the experiences and acquisitions it produces in turn influence the consumers selfconcept
and lifestyle by affecting their internal and external characteristics.
This model, while simple, is both conceptually should and intuitively appealing. Each
of us has a view of ourselves (self-concept), and we try to live in a particular manner given
our resources (lifestyle). Our view of ourselves and the way we try to live are determined
by internal factors (such as our personality, values, emotions, and memory) and external
factors (such as our culture, age, friends, family, and subculture).
Our view of ourselves and the way we try to live results in desires and needs that we
bring to the multitude of situations we encounter daily. Many of these situations will cause
us to consider a purchase. Our decision and even the process of making it, will cause
learning and may affect many other internal and external factors that will change or reinforce
our current self concept and lifestyle.
A quick analysis of your own behavior and that of your friends will reveal the fallacy
of this perception. Consumer behavior is frequently complex, disorganized, no conscious,
organic, and circular. Unfortunately, we must present it in a relatively simple, linear manner
due to the limitations of written communications.

APPLICATIONS OF CONSUMER BEHAVIOR:
Marketing Strategy
All marketing strategies and tactics are based on explicit or implicit beliefs about
consumer behavior. Decisions based on explicit assumptions and sound theory and research
are more likely to be successful than are decisions based solely on implicit intuition. Thus
knowledge of consumer behavior can be an important competitive advantage. It can
greatly reduce the odds of bad decisions.
Social Marketing
Is the application of marketing strategies and tactics to alter or create behaviors that
have a positive effect on the targeted individuals or society as a whole. Social marketing
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7 ANNA UNIVERSITY CHENNAI
CONSUMER BEHAVIOUR
has been used in attempts to reduce smoking, to increase the percentage of children receiving
their vaccinations in a timely manner, to encourage environmentally sound behaviours such
as recycling; to reduce behaviors potentially leading to AIDS; to enhance support of charities;
to reduce drug use; and to support many other important causes. Just as commercial
marketing strategy, successful social marketing strategy requires a sound understanding of
consumer behavior.
Regulatory Policy
Marketing is a highly visible, important activity. It affects the life of individuals, the
success of nonprofit groups, and the profits of businesses. There are many issues where
the appropriate ethical action for marketers is not clear-cut. However, society has declared
that other marketing actions are clearly inappropriate. It has done so by enacting laws and
regulations that prohibit or require specific marketing actions. Regulating marketing activities
requires the same level of understanding and the extensive knowledge of the consumer
behavior as does managing marketing programs. Our consideration of the regulation of
marketing practices will separate regulations designed to protect children from those
designed to protect adults.
Informed Individuals
Most economically developed societies are legitimately referred to as consumption
societies. Most individuals in these societies spend more time engaged in consumption
than in any other activity, including work or sleep (both of which also involve consumption).
Therefore, knowledge of consumer behavior can enhance our understanding of our
environment and ourselves. Such an understanding is essential for sound citizenship,
effective purchasing behavior and reasoned business ethics.
Literally thousands of firms are spending millions of dollars to influence you, your
family and your friends. These influence attempts occur in ads, packages, product features,
sales pitches, and store environments. However, they also occur in the content of many
television shows in the products that are used in movies, and in the materials presented to
children in schools. Given the magnitude of these direct and indirect influence attempts, it
is important that consumers accurately understand the strategies and tactics being used. It
is equally important that all of us, as citizens, understand the consumer behavior basis of
these strategies so that we can set appropriate limits on them when required.