CONCEPTS OF CONSUMER BEHAVIOUR:

Definition:
Consumer behaviour is defined, as a behaviour that consumers display in searching for,
purchasing, using, evaluating and disposing of products and services that they expect will satisfy their
needs.
- Schiffman
Observable activities chosen to maximize satisfaction through attainment of economic goods
and services such as choice of retail outlet, preference of particular brands and so on.
- Dictionary of marketing and advertising

The decision process and physical activity individual engage in when evaluating, acquiring, using
or disposing of goods and services.
-

Loudon & Della Bitta

Types of consumers:

Personal consumers

Organizational consumers

What is consumer behaviour?

Obtaining - purchase/ receipt of product
Consuming - how, where, when and under what circumstances use product
Disposing - get rid

Consumer behaviour roles:

Initiator: Individual who determines that some needs or want is not being met and authorizes to
rectify the situation.
Influencer: Individual who intentionally or unintentionally influence the purchase decision.
Buyer: Individual who actually make the purchase transaction.
User: Individual who directly consume the product.

Importance of studying consumer behaviour:

Consumer is the king.

Consumers do not always act or react as the theory suggest.
Consumer preferences are changing and become highly diversified.
Consumer dislikes identical product and prefer differential products.
Segmenting the market to cater the special needs of consumers.
Rapid introduction of new products with technological advancement
To sell products that might not sell easily.

O
Model of consumer behaviour:

Feedback to consumer
Individual
Consumer
Consumer
Decision Making

Environmental
Influence

Feedback to environment

Methods of studying consumer behaviour:

Observational approach
In home observation

Consumer
Response

Interviews and surveys

Focus group
Field experimentation
Consumption research products

Principles of consumer behaviour:

Consumer is sovereign
Consumer is global
Consumers are different
Consumer has rights

APPROACHES TO THE STUDY OF CONSUMER BEHAVIOUR:

Different approaches to studying consumer behaviour are:

Managerial approach
Holistic approach
Balanced approach

Managerial approach:
- It is more micro and cognitive in nature.
- Micro: emphasizes the individual consumer like his attitude, perception, life style, etc.
- Cognitive: emphasizes the thought process of individual consumers and factors in influencing
their decision.
- Marketers are interested in this approach because all marketing strategy is to satisfy the
individual consumers need.
- Risks in managerial approach:

Holistic approach:

Overemphasizes the rationality of consumers

Overlook the dynamics of environmental factors independent of individual
Focus is on purchase rather than consumption

- It is more macro in nature.

- It focuses on consumption experience rather than purchasing process.
- It helps in understanding the environmental context of consumer action.
- Risks in holistic approach are:

No emphasize on purchase decision.

No understanding of cognitive process, which is necessary for the marketer to
meet consumer needs.

Balanced approach:
In balanced approach both the managerial view and holistic view are taken by eliminating the
drawbacks.

APPLICATION OF CONSUMER BEHAVIOUR KNOWLEDGE IN MARKETING DECISION:

Understanding of consumer behaviour is essential for the long run success of any marketing
program.
Some of marketing activities were consumer behaviour knowledge is important are:

Market-opportunity analysis
Target market selection
Marketing mix determination

Market opportunity analysis:

- It involves analyzing the market to identify unsatisfied needs and wants.
- The analysis begins with a study of general market trends such as consumers lifestyle and
income levels which suggests unsatisfied needs and wants.

Target market selection:

- Market opportunity analysis results in the selection of target market ie distinct groupings of
consumers who have unique wants and needs.
- Eg: Colgate- Palmolive company segment consumers according to their life style pattern and
personalities to identify a unique group of consumers for a certain type of deodorant soap.

Market-mix determination:
Marketing mix variables are:

Product
Price
Place
Promotion

CONSUMERS DONT ACT A

UNIT II
CONSUMER AS AN INDIVIDUAL

CONSUMER NEEDS AND MOTIVES

CONSUMER NEEDS

Need:
Basic feel of desire
Want:
The means of satisfying the need

Types of needs:
o
o
o
o

Biogenic need.
Physical need.
Psycogenic need.
Utilitarian or hedonic need

Biogenic need:

The need for air, water and sunlight .

Physical need:
The need for food, shelter and clothing.
Psycogenic need:

The needs acquired in the process of becoming a member of a particular society or

culture.
This include need for affection, power, self-esteem, etc.
Eg: In India need to accumulate wealth for daughters marriage shows attachment and
affection.
Utilitarian or Hedonic Need:

This need satisfies consumers dreams and builds up self confidence.

This need implies that consumer will emphasize the tangible quality of the product.
Eg: Need for efficient washing powder.
Need to own a car.

Hierarchy of needs:

Dr.Abraham Maslow , a clinical psychologist formulated the theory of human needs.

This theory identifies five basic level of human needs ranked in the order of importance.
Individual seek to satisfy lower-level of needs before higher-level of needs emerge.
The hierarchy of needs are:
o Physiological needs.
o Safety and security needs.
o Social needs.
o Ego needs.
o Self-actualization needs.

Physiological needs:

Basic level of human needs.

This need is required to sustain biological life.
This need is also called as biogenic need or physical need.
Ads for products and services that promote physical health is an appeal to this level of
the need hierarchy.
Eg: need for food, water, shelter, clothing, etc.
Safety and security needs:

Social needs:

Once the first level is satisfied this need become the driving force for human behavior.
Focus on tomorrows life.
Eg: savings account, insurance policies, education, etc.