Karthigai Prakasam.CLecturer In management, New Horizon College, Outer Ring Road,Near Marathahalii, Bangalore-560087

CONSUMER BEHAVIOR

DIMENSIONS OF CONSUMER BEHAVIOR

CONSUMER BEHAVIOUR

Definition

“The process whereby individuals decide whether, what , when, where, how and from whom to purchase goods and services”

Prof. Walter C.G and Prof Paul G.W

“The behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of, it products and services that they will satisfy their needs.”

Leon G.Schiffman and Lesile lazar kanuk

CONSUMER BUYING PROCESS

Steps in buying process :

1. Need recognition

2. Information Search

3. Evaluation and Intention

4. Purchase Decision

5. Post –Purchase reaction

DETERMINANTS OF CONSUMER BEHAVIOUR

1. Economic Determinants :

a. Personal income

b. Family income

c. Consumer Income expectations

d. Consumer liquid assets

e. Consumer credit

f. The level of standard of living

2. Psychological Determinants :

a. Motivation

b. Perception

c. Learning

d. Attitude

e. Personality

3. Sociological Determinants:

a. Family

b. Reference Groups

c. Opinion Leaders

d. Social class and caste

e. Culture

BUYING MOTIVES

A Buying motive is the reason why a person buys a particular product.

“ A motive is a drive or an urge for which an individual seeks satisfaction ; it becomes a buying motive when the individual seeks satisfaction through the purchase of something .”

Prof. William Stanton .

“ Buying motives are those influences or considerations which help the in getting on to satisfaction.”

Mr. D. J. Durian

CLASSIFICATION OF BUYING MOTIVES

1. Innate and Acquired Motive

2. Primary and Secondary Motive

3. Conscious and Dormant motive

4. Physical and Psychological Motive

5. Positive and Negative Motive

6. Product and patronage Motive

7. Rational and Emotional Motive

BUYING MOTIVES

EMOTIONAL

RATIONAL

BUYING MOTIVES

PRODUCT MOTIVES

PATRONAGE MOTIVES

EMOTIONAL

RATIONAL

PRODUCT MOTIVES1. Product Emotional Buying Motives:

1. Pride2. Vanity3. Jealousy4. Fashion or Imitation 5. Sex6. Habits7. Love and Affection 8. Comfort 9. Aesthetic Pleasure10. Praise

2. Product Rational Motives :

1. Safety or Fear 2. Suitability3. Durability4. Economy 5. Convenience6. Versatility7. Profit or Cupidity 8. Curiosity9. Recreation 10. Hobbies

PATRONAGE MOTIVES

1. Patronage Emotional Motives :

1. Appearance of the store 2. Recommendation of friends and

relatives 3. Imitation 4. Prestige 5. Habit

2. Patronage Rational Motives

1. Proximity 2. Widest Assortment 3. Credit Facilities 4. Treatment

5. Services Offered

CONSUMER BEHAVIOR

Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants.

STAGES OF THE CONSUMER BUYING PROCESS

Consumer buying decision process includes

six stages. They are: Problem Recognition Information Search Evaluation of alternatives Purchase Decision Purchase Post-Purchase Evaluation

1. PROBLEM RECOGNITION

Difference between the desired state and the actual condition.

Example: By seeing a commercial for a new pair of shoes,

stimulates your recognition that you need a new pair of shoes.

Hunger stimulates your need to eat.

2. INFORMATION SEARCH

Internal Search: --- Memory External Search: --- Friends and Relatives A successful information search leaves a buyer with

possible alternatives, the evoked set.

Example: Hungry, want to go out and eat, evoked set is

Chinese food Indian food Burger king

3. EVALUATION OF ALTERNATIVES

Need to establish criteria for evaluation, features the buyer wants or does not want.

Rank/weight alternatives.

Example:

If you want to eat something spicy, then Indian food gets the highest rank etc…

4. PURCHASE DECISION :

Choose buying alternative, includes product, package, store, method of purchase etc.

5. PURCHASE : May differ from decision, time lapse

between purchase decision and the actual purchase, product availability.

6. POST-PURCHASE EVALUATION :

It is the outcome Satisfaction or Dissatisfaction. This can be reduced by warranties, after sales communication etc.

Example:

After eating an Indian meal, you may think that really you wanted a Chinese meal instead.

TYPES OF CONSUMER BUYING BEHAVIOR :

There are four types of consumer buying behavior, they are :

Routine Response/Programmed Behavior Limited Decision Making Extensive Decision Making Impulse buying

1. ROUTINE RESPONSE / PROGRAMMED BEHAVIOR

Buying low involvement, frequently purchased, low cost items.

Examples :

Soft drinks, snack foods, milk etc.

2. LIMITED DECISIONMAKING

Buying product occasionally. That is when you need to obtain

information about unfamiliar brand in a familiar product category.

Example: Clothes--know product class but not the

brand.

3.EXTENSIVE DECISION MAKING :

Complex high involvement, unfamiliar, expensive and infrequently bought products.

Spend a lot of time seeking information and deciding. High degree of risk.

Example: Cars, homes, computers, education.

4. IMPULSE BUYING :

No conscious planning. The purchase of the same product does not

always elicit the same Buying Behavior. Product can shift from one category to the next.For example:Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.

Consumer Behaviour Models

The Economic ModelThe Learning ModelThe Psycho-analytical ModelThe sociological ModelThe Howard-Sheth Model

The buyer is analysed here as a system with stimuli as the input into the system, and behaviour as the output of the system. In between the inputs and outputs there are variables affecting perception and learning

Howard-Sheth Model of Consumer Behavior

Marketing andOther Stimuli

Marketing andOther Stimuli

Buyer’s Black BoxBuyer’s Black Box

Buyer’s ResponseBuyer’s Response

Product

Price

Place

Promotion

Economic

Technological

Political

Cultural

Characteristics Affecting Consumer Behavior

Buyer’s Decision Process

Product Choice

Brand Choice

Dealer Choice

Purchase Timing

Purchase Amount

Let’s study the Buyer’s Black Box

Characteristics Affecting Consumer Behavior

BuyerBuyer

Psychological

Personal

Social

Culture

Factors Affecting Consumer Behavior:Culture

Social Class

• People within a social class tend to exhibit similar buying behavior.

• Occupation

• Income

• Education

• Wealth

Social Class

• People within a social class tend to exhibit similar buying behavior.

• Occupation

• Income

• Education

• Wealth

Most basic cause of a person's wants and behavior.ValuesPerceptions

Most basic cause of a person's wants and behavior.ValuesPerceptions

Subculture

• Groups of people with shared value systems based on common life experiences.

• Hispanic Consumers

• African American Consumers

• Asian American Consumers

• Mature Consumers

Subculture

• Groups of people with shared value systems based on common life experiences.

• Hispanic Consumers

• African American Consumers

• Asian American Consumers

• Mature Consumers

Factors Affecting Consumer Behavior:Social

Groups Membership

• Reference

Groups Membership

• Reference

Family• Husband, wife, kids• Influencer, buyer, user

Family• Husband, wife, kids• Influencer, buyer, user

Roles and StatusRoles and Status

Social FactorsSocial Factors

Factors Affecting Consumer Behavior : Personal

Personal InfluencesPersonal Influences

Age and Family Life CycleStage

Age and Family Life CycleStage OccupationOccupation

Economic SituationEconomic Situation

Lifestyle IdentificationLifestyle Identification

ActivitiesActivities OpinionsOpinions

InterestsInterests

Personality & Self-ConceptPersonality & Self-Concept

Factors Affecting Consumer Behavior:PsychologicalFactors Affecting Consumer Behavior:Psychological

Psychological Factors

MotivationMotivation

PerceptionPerception

LearningLearning

Beliefs and Attitudes

Beliefs and Attitudes

Maslow’s Hierarchy of Needs

Esteem Needs(self-esteem, status)

Social Needs(sense of belonging, love)

Safety Needs(security, protection)

Physiological Needs(hunger, thirst)

Self Actualization

(Self-development)