Define consumer behavior.Explain briefly the consumer buying decision process?

Consumer behaviour 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. It blends
elements from psychology, sociology, social anthropology, marketing
and economics. It attempts to understand the decision-making processes
of buyers, both individually and in groups such as how emotions affect
buying behaviour.[2] It studies characteristics of individual consumers such
as demographics or personality[2] and behavioural variables in an attempt
to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, sports, reference groups,
and society in general.
A buying process is the series of steps that a consumer will take to
make a purchasing decision. A standard model of consumer purchase
decision-making includes recognition of needs and wants, information
search, evaluation of choices, purchase, and post-purchase evaluation.

What do you mean by post purchase behavior? Explain this with the help of suitable ex
The behaviour after a product purchase is called Post purchase behaviour.
Generally after a product purchase the buyer undergoes post purchase
dissonance means the buyer regrets his /her purchase.
This dissonance can be due to:

Large number of alternatives

The other alternatives have better features

It was a difficult buying decision

Performance risk of the product

High financial commitment towards the product

Wear and tear of the product

But if the performance of the product is good the customer is satisfied
Now based on the satisfaction or dissatisfaction the consumer will rebuy
the product or discontinue the product.

Example: - A customer buys toothpaste and doesnt like the taste, this will
cause dissonance and he will discontinue the product and use some other
brand.

Explain the Cognitive Learning Theory with the help of suitable examples.

The Cognitive Learning Theory explains why the brain is the most
incredible network of information processing and interpretation
in the body as we learn things. This theory can be divided into
two specific theories: the Social Cognitive Theory (SCT), and the
Cognitive Behavioral Theory (CBT).
When we say the word learning, we usually mean to think using the
brain. This basic concept of learning is the main viewpoint in the
Cognitive Learning Theory (CLT). The theory has been used to explain
mental processes as they are influenced by both intrinsic and extrinsic
factors, which eventually bring about learning in an individual.
Cognitive Learning Theory implies that the different processes concerning
learning can be explained by analyzing the mental processes first. It posits
that with effective cognitive processes, learning is easier and new
information can be stored in the memory for a long time. On the other
hand, ineffective cognitive processes result to learning difficulties that can
be seen anytime during the lifetime of an individual.
A. Social Cognitive Theory
In the Social Cognitive Theory, we are considering 3 variables:

behavioral factors

environmental factors (extrinsic)

personal factors (intrinsic)

n the person-environment interaction, human beliefs, ideas and cognitive

competencies are modified by external factors such as a supportive
parent, stressful environment or a hot climate. In the person-behavior

interaction, the cognitive processes of a person affect his behavior;

likewise, performance of such behavior can modify the way he thinks.
Lastly, the environment-behavior interaction, external factors can alter
the way you display the behavior. Also, your behavior can affect and
modify your environment. This model clearly implies that for effective and
positive learning to occur an individual should have positive personal
characteristics, exhibit appropriate behavior and stay in a supportive
environment.
In addition, Social Cognitive Theory states that new experiences are to be
evaluated by the learner by means of analyzing his past experiences with
the same determinants. Learning, therefore, is a result of a thorough
evaluation of the present experience versus the past.
Basic Concepts
Social Cognitive Theory includes several basic concepts that can manifest
not only in adults but also in infants, children and adolescents.
1.

2.

3.

4.

5.

Observational Learning
learning from other people by means of observing them is an effective
way of gaining knowledge and altering behavior.
Reproduction
the process wherein there is an aim to effectively increase the repeating
of a behavior by means of putting the individual in a comfortable
environment with readily accessible materials to motivate him to retain
the new knowledge and behavior learned and practice them.
Self-efficacy
the course wherein the learner improves his newly learned knowledge or
behavior by putting it into practice.
Emotional coping
good coping mechanisms against stressful environment and negative
personal characteristics can lead to effective learning, especially in
adults.
Self-regulatory capability
ability to control behavior even within an unfavorable environment.

Cognitive Behavioral Theory

Cognitive Behavioral Theory describes the role of cognition (knowing) to

determining and predicting the behavioral pattern of an individual. This
theory was developed by Aaron Beck.
The Cognitive Behavioral Theory says that individuals tend to form selfconcepts that affect the behavior they display. These concepts can be
positive or negative and can be affected by a persons environment.
The Cognitive Triad
Cognitive Behavioral Theory further explains human behavior and learning
using the cognitive triad. This triad includes negative thoughts about:
1.

The self (i.e., I am rubbish)

2.

The world/environment (i.e., the world is irrational)

3.

The future (i.e., my future is doomed)

1.
The bank thru its CSR provided information pertaining toopening an account and
other types of transactions. The CSR wasstraightforward in dealing with Mrs.
Benjamin as he explainedprocedures and other processes relating to her inquiries.
One problemthat I observed in this case study is the lack of providing rapport
withthe customer. Even though the process as explained carefully. TheCSR was not
too accommodating with Mrs. Benjamin. He acted sort oflike a robot as he explained
and handed out the forms.Customer service as the name implies are there to make
peoplecomfortable with their initial search for a service. It is not enough thatwe CSRs
can provide all the technical information regarding theproduct they should be more
approachable and show importance tothe customer. Since a customer doesnt
purchase a product or avail ofa service just for the technical side of it. They
combined this with howthey perceived the item and how they are satisfied with it.On
a technical side, the bank was able to provide the neededinformation and forms to
Mrs. Benjamin. On the aspect of providingcustomer satisfaction they fell behind. As
at the end of the case study,Mrs. Benjamin has already doubts about her transaction
with the bankbecause of the poor service provided by the CSR. She now has
aconflict in herself if she wants to continue doing business with the bank or take her
money and select another bank.

2.
It has affected the customer already because as Mrs. Benjamin was
leaving the bank, she has doubts if the bank and its employees have good
customer relations. She felt that she was not treated properly and that as
a customer, she and others like her provide the business to which a bank
needs. Mrs. Benjamin also felt that because she was a bit forward in
getting the attention of the CSR, she was given a small credit line, to
which she thinks she should get more. She also had this feeling that she
was not accorded the proper respect that she expected as a customer of
the bank. The manner by which the CSR afforded her during the entire
transaction was not very pleasing and bordering on him being irritated by
Mrs. Benjamins interruption of his call. Further, Mrs. Benjamin felt like a
second rate citizen because of the service she got from the CSR.

3.
If this trend of customer service is left unchecked, the bank may stand to
lose more customers. Without customers or depositors, the bank suffers
and in the end may close due to lack of funds. Marketing the bank to
reach out new customers will be difficult as some people who had dismal
experience will say negative things about the bank to their families and
friends. This would make the other members of the family and their
friends talk to other circles and the bank will suffer negative publicity.
Culture and family play important roles in many of todays consumer
decision making. They influence a persons mindset about a particular
service or product and if they do not approve of it, the person most
probably will not patronize it.

4.
I would suggest to the bank officers to have their CSRs undergo customer
service training so that they will be aware that providing service to
customers is not mainly on providing information or details of a particular
product but making them comfortable and ensure that their emotional
needs are addressed as well. Maintaining good customer relations is vital
to keeping loyal customers and enticing new ones to come and invest in
the bank. This is one aspect; I think the bank needs to work on at the
soonest possible time. Informational need is a customers desire to locate
and obtain information to satisfy both conscious and unconscious needs.
This should be the top priority of the bank as this brings in more business
to their establishment. It is generally not enough to satisfy the conscious

need, the unconscious one has to be satiated also. In the case of Mrs.
Benjamin, the conscious informational needs were addressed but the
unconscious ones were not. This lead to a conflict in the decision making
process of Mrs. Benjamin whether to continue with the bank or look for
other banks.