Consumer Behavior

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 Consumer Behaviour

 Marketing concept start with the consumer needs and

behaviour in meeting these needs.
 The customer takes different aspects into consideration
when he chooses a particular brand.
“ Consumer behaviour is that subset of human behaviour that
is concerned with decisions and using products.”
“Consumer behaviour refers to all the psychological and
physiological response to marketing appeals.”

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 Buying Motive

“ A Motive is an inner urge that moves or

prompts a person to action”

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 Importance of Consumer Behaviour

 Production Policies.
 Pricing Policies
 Distribution Policies
 Decision regarding sales Promotion and other
Promotional tools.

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Factors Influencing
Consumer Behaviour

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1. Cultural Factors

Culture
Subculture
Social Class

Buyer
Buyer

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 2. Social Factors

Reference
Groups

Roles &
Family
Statuses

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 Types of Reference Group

Aspirational
Group
Secondary Groups
Dissociative
Primary Groups Group
Membership Non-membership
Group Group

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 3. Personal Factors

Personal
Personal Influences
Influences

Age
Age and
and Family
Family Life
Life Lifestyle
Cycle Lifestyle
Cycle Stage
Stage

Occupation
Occupation && Personality
Personality &&
Economic
Economic Circumstances
Circumstances Self-Concept
Self-Concept

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 4. Psychological Factors

Motivation
Motivation

Beliefs &
Beliefs &
Attitudes
Attitudes
Perception
Perception Learning
Learning

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 Maslow’s Hierarchy
of Needs

5
Self-
Self-
actualization
actualization
(self-development
(self-development
andrealization)
and realization)

Esteem needs
4 Esteem needs
(self-esteem,recognition)
(self-esteem, recognition)
Social needs
Social needs
3 (sense
(sense of
of belonging,
belonging, love)
love)
Safetyneeds
Safety needs
2 (security, protection)
protection)
(security,
Psychological needs
Psychological needs
1 (food, water,
(food, water, shelter)
shelter)
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 Perception

“Perception is the process by which an individual

selects, organizes, and interprets information
inputs to create a meaningful picture of the
world.”

 Selective Exposure
 Selective Distortion
 Selective Retention

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 Buying Roles

 Initiator
 Influencer
 Decider
 Buyer
 User

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 Four Types of Buying Behavior

High Low
Involvement Involvement
Significant
differences Complex Variety-
between Buying Seeking
brands Behavior Behavior
Few
differences Dissonance- Habitual
between Reducing Buying Buying
brands
Behavior Behavior

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Consumer Buying Decision Process

Problem Recognition

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Consumer Buying Decision Process

Information Search

Problem Recognition

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Information Search

 Personal Sources
 Commercial Sources
 Public Sources
 Experimental Sources

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Consumer Buying Decision Process

Evaluation of Alternatives

Information Search

Problem Recognition

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Evaluation of Alternatives
 Consideration Set
(Evoked Set)
 Evaluative Criteria

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Consumer Buying Decision Process

Purchase

Evaluation of Alternatives

Information Search

Problem Recognition

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 Purchase Decision

 Two factors can intervene between

purchase intention and the purchase
decision-
 Attitude of others
 Unanticipated situational factors

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Consumer Buying Decision Process

Postpurchase Behaviour

Purchase Decision

Evaluation of Alternatives

Information Search

Problem Recognition

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 Postpurchase Decision

 Post purchase satisfaction

 Dissatisfaction
Did I Do the
 Satisfied Right Thing?

 Delighted
 Cognitive Dissonance
 Post purchase actions

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 Organizational Buying Behaviour

“ OBB is the decision – making process by which

formal organizations establish the need for
purchased products and services and identify,
evaluate and choose among alternative brands
and supplier”

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Organizational Markets

 Producer

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Organizational Markets

 Producer
 Reseller
!
SALE

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Organizational Markets

 Producer
 Reseller
!
SALE

 Government

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Organizational Markets

 Producer
 Reseller
!
SALE

 Government

 Institutional

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 Dimensions of Organizational Buying

 Characteristics of Organizational Transactions

 Larger Orders
 Long-Term
 More People Involved
 Reciprocity

!
SALE

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 Dimensions of Organizational Buying

 Attributes of Organizational Buyers

 Better Informed
 Personal Influences
 Psychological Satisfaction
 Rational

!
SALE

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 Dimensions of Organizational Buying

 Primary Concerns of Organizational Buyers

 Price
 Product Quality
 Service

!
SALE

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Dimensions of Organizational Buying

 Methods of Organizational Buying

 Description
 Inspection
 Sampling
 Negotiation

!
SALE

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Dimensions of Organizational Buying

 Types of Organizational Purchases

 New-Task Purchase
 Straight Rebuy Purchase
 Modified Rebuy Purchase

!
SALE

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Dimensions of Organizational Buying

 Demand for Industrial Products

 Derived Demand
 Inelastic Demand
 Joint Demand
 Demand Fluctuation

!
SALE

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 Need Problem
Problem Recognition
Recognition
Recognition
General
General Need
Need Description
Description

Info Product
Product Specification
Specification
Search/ Supplier
Supplier Search
Search
Eval
Proposal
Proposal Solicitation
Solicitation

Purchase Supplier
Supplier Selection
Selection

Order
Order Routine
Routine Specification
Specification
Post
Performance
Performance Review
Review
Purchase
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Organizational Buying Decision Process: Possible
Influencing Factors

Environmental

Organizational
Organizational
Buying
Decision
Interpersonal Process

Individual

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Environmental Factors

Competitive Economic Political

Organizational
Buying Decision
Process

Legal Regulatory Technological Sociocultural

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Organizational Factors

Objectives Purchasing Policies

Organizational
Buying Decision
Process

Resources Buying Center Structure

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Interpersonal Factors

Cooperation

Organizational
Buying Decision
Process

Conflict Power Relationships

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Individual Factors

Age Education Personality

Organizational
Buying Decision
Process

Tenure Position
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Participants in the Business Buying Process

Users

Initiators Influencers

Gatekeepers

Buyers Deciders

Approvers

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 Cognitive Dissonance

 According to cognitive dissonance theory,

discomfort or dissonance occurs when a
consumer holds conflicting thoughts about a
belief or an attitude object.
 When cognitive dissonance occurs after the
purchase, it is called as post purchase
dissonance.

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 Reducing Cognitive Dissonance

 The consumer should rationalize that their decision is wise

decision.
 They have to seek out advertisements that support their choice.
 They should try to give positive features of brand or they look
as satisfied owners of product.
 Marketer can reduce consumer dissonance by including
messages in its advertising specially aimed at reinforcing
consumers decisions by complementing their wisdom.

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 Reducing Cognitive Dissonance

 Marketer can increase the number and

effectiveness of its services.
 Providing detailed broachers on how to use its
products correctly.

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 Diffusion of Innovations

 The framework for exploring consumer acceptance of

new products is drown from the area of research
known as diffusion of innovations.
 Diffusion of innovations can be explained with the
help of two points-
 Diffusion Process
 Adoption Process

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 1. Diffusion Process

“ Diffusion is the process by which the acceptance of an

innovation is spread by communication to members of a
social system over a period of time.”
 This This definition includes the four basic elements of the
diffusion process-
 The information
 The channels of communication
 The social system
 Time

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 2. The Adoption Process

 Stages through which an individual consumer passes while arriving at

a decision to try or not to try to continue using or to discontinue using
a new product.
 Following are the stages in the adoption process-
 Awareness
 Interest
 Evaluation
 Trial
 Adoption (Rejection)

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