Submitted to: Dr.

SK Chadda

Submitted by: Ankur Kansal Ankush Goyal Annu

Definition
Consumer behavior is the study of individuals, groups,

or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Factors affecting consumer behavior

Cultural Factors Social Factors

Personal Factors

Psychological Factors

Types of Cultural Factors

Culture

Varies from society to society Eg. Greater concern about health and fitness among urban women. It includes nationalities, religions, racial groups and geographic regions. Measured as combination of occupation, income, education, wealth and other variables.

Subculture

Social Class

Type of Social Factors

Groups and Social Networks Word of mouth influencing

Online social Networks

Family

Role and status

Groups and social networks

Membership Groups
Groups to which a person belongs

Reference groups

Direct or indirect reference in forming a persons opinion eg. Aspirational groups

Buzz Marketing
Marketers identify Opinion leaders for their products

and use buzz marketing by enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about their products. Eg. P & Gs Vocalpoint.

Online Social Networks

They are the online communities where people

socialize or exchange information and opinion. Eg. Social networking sites like Facebook, flicker, twitter etc. Posting videos on youtube. Specific community sites like yub.com for shopping, fuzzster.com for pet lovers etc.

Family, Role & Status

Personal Factors
Age and life cycle stages
Occupation

Economic situation

Lifestyle

Personality and self concept

Occupation and Economic Situation

Occupation
Eg. Blue-collar workers tend to buy more rugged work clothes, whereas executives buy more business suits.

Economic Situation

Persons economic situation will affect product choice. Eg. A person with higher income may buy a rolex but person with modest means prefers to settle with timex.

Lifestyle

Personality and Self Concept

Sincerity(down to earth, honest, wholesome, and

cheerful) eg. Dove Excitement(daring, spirited, imaginative, and up-todate) eg. Apple Competence(reliable, intelligent, and successful) eg. CNN Sophistication(upper class and charming) eg. BMW Ruggedness(outdoorsy and tough) eg. Jeep.

Psychological Factors
Motivation Perception

Learning

Beliefs and attitudes

Motivational research
It seeks to learn what motivates people in making

choices. The techniques are such as to delve into the conscious, subconscious and the unconscious.

Perception & Learning

Perception
Its a process by which people select, organize, and interpret information to form a meaningful picture of the world.

Learning

Learning describes changes in an individuals behavior arising from experience.

Beliefs and attitudes

Belief Attitude

A belief is a descriptive thought that a person has about something.

Attitude describes a persons relatively consistent evaluations, feelings and tendencies toward an object or idea.

Types of Buying decision behaviour

Significant difference between brands + high involvement Significant differences and low involvement

Complex buying behavior

Variety seeking buying behavior

Dissonance reducing buying behavior

Few differences between brands and high involvement

Habitual buying behavior

Few difference and low involvement

The Buyer decision process

Need recognition Information search Evaluation of alternatives

Post purchase behavior

Purchase decision