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Consumer Behavior: MeaningConsumer Behavior: Meaning

Inherent Inherent inin MarketingMarketing Concept Concept 

TheThe behaviorbehavior that that consumersconsumers displaydisplay inin searchingsearchingfor,for, purchasing,purchasing, evaluatingevaluating andand disposingdisposing of of 

productsproducts andand servicesservices that that theythey expect expect willwill satisfysatisfytheirtheir needsneeds..

FocusesFocuses onon howhow individualsindividuals makemake decisionsdecisions totospendspend theirtheir availableavailable resourcesresources..

TwoTwo different different typestypes of of consumingconsuming entitiesentities:: PersonalPersonal consumersconsumers:: BuyingBuying forfor hishis ownown useuse

OrganizationalOrganizational consumersconsumers:: BuyingBuying forfor organizationalorganizationaluseuse..

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Consumer Vs CustomerConsumer Vs Customer

ConsumerConsumer:: ConsumersConsumers areare individualsindividuals ororhouseholdshouseholds that that consumeconsume goodsgoods andand servicesservicesgeneratedgenerated withinwithin thethe economyeconomy.. ConsumersConsumers areare

generallygenerally usersusers of of aa varietyvariety of of productsproducts.. A A termtermwithwith aa MacroMacro perspectiveperspective..

CustomersCustomers:: CustomersCustomers areare thosethose whowho buybuy thethegoodsgoods producedproduced byby aa firmfirm.. OneOne firms firms customerscustomersdifferdiffer fromfrom thosethose of of thethe others others .. BuyersBuyers arearegenerallygenerally termedtermed asas customerscustomers.. A A termterm withwith aaMicroMicro perspectiveperspective..

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THE CONSUMER DECISIONTHE CONSUMER DECISION--MAKINGMAKING

PROCESSPROCESS

Problem RecognitionProblem Recognition

Information SearchInformation SearchEvaluation of AlternativesEvaluation of Alternatives

Purchase DecisionPurchase Decision

Post  Purchase BehaviourPost  Purchase Behaviour

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Marketers role in need recognitionMarketers role in need recognition

MarketingMarketing invokesinvokes stimulistimuli

MarketingMarketing helpshelps consumersconsumers recogniserecognise anan

imbalanceimbalance betweenbetween thethe present present statusstatus andandpreferredpreferred statestate

MarketingMarketing promisespromises toto bridgebridge thethe gapgaptherebythereby enablingenabling thethe needneed toto taketake itsits shapeshape

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P ARTICI

P ANTS IN BUYING

PROCESS

P ARTICI

P ANTS IN BUYING

PROCESS

InitiatorInitiator

InfluencerInfluencerDeciderDecider

BuyerBuyer

UserUser

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FACTORS INFLUENCING CONSUMER BUYINGFACTORS INFLUENCING CONSUMER BUYING

BEHAVIOURBEHAVIOUR

CULTURAL FACTORSCULTURAL FACTORS

Culture, Subculture & Social ClassCulture, Subculture & Social Class

SOCIAL FACTORSSOCIAL FACTORS

Reference Groups, Roles & StatusesReference Groups, Roles & Statuses PSYCHOGRAPHICSPSYCHOGRAPHICS

Demographic, Lifestyle, Personality Demographic, Lifestyle, Personality 

PSYCHOLOGICAL FACTORSPSYCHOLOGICAL FACTORS

Motivation, P

erception, Learning, Believes &Motivation, P

erception, Learning, Believes & Attitudes Attitudes

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 A CB Model A CB Model

Input:Input:

Influences need recognition. Initiated by the firm and Influences need recognition. Initiated by the firm and 

influenced by the consumers social group (All external influenced by the consumers social group (All external influencers)influencers)

Process:Process:

The decisionThe decision--making process. Influenced by consumers  making process. Influenced by consumers  psychological attributes.psychological attributes.

Output:Output:

Purchase behavior (Trial and repeat  purchase) and Purchase behavior (Trial and repeat  purchase) and 

post post --purchase behavior (Evaluation, repurchase behavior (Evaluation, re--purchase, purchase, cognitive dissonance)cognitive dissonance)

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Types of  InfluencesTypes of  Influences

ExternalExternal CultureCulture SubSub--CultureCulture CrossCross--CultureCulture Social ClassSocial Class Reference GroupReference Group

InternalInternal MotivationMotivation

PerceptionPerception PersonalityPersonality LearningLearning  Attitude Attitude

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Consumer BehaviorConsumer Behavior

Internal InfluencesInternal Influences

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MotivationMotivation

Driving Force within individuals that  impels Driving Force within individuals that  impels them into actionthem into action

 An unfulfilled need results in a tension that   An unfulfilled need results in a tension that  acts as a driving forceacts as a driving force

Indulges in behavior that  could satisfy his Indulges in behavior that  could satisfy his need and reduce tensionneed and reduce tension

Positive and negative motivationPositive and negative motivation

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PerceptionsPerceptionsPerceptionPerception isis defineddefined asas thethe processprocess byby

whichwhich anan individualindividual selects,selects, organizesorganizesandand interpretsinterprets stimulistimuli intointo aa meaningfulmeaningfulandand coherent coherent picturepicture of of thethe worldworld..

TwoTwo different different personspersons exposedexposed toto thethesamesame stimulistimuli behavebehave inin different different ways,ways,basedbased onon needs,needs, valuesvalues andand

expectationsexpectations..BasedBased onon How How wewe seesee thethe worldworld

aroundaround usus..

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PersonalityPersonality

MeaningMeaning:: ThoseThose InnerInner PsychologicalPsychologicalcharacteristicscharacteristics that that bothboth determinedetermine andandreflect reflect howhow aa personperson respondsresponds toto hishis oror herherenvironment environment   TheThe attributes,attributes, traits,traits, factorsfactorsandand mannerismsmannerisms..

FactorsFactors:: Heredity,Heredity, EarlyEarly childhoodchildhood

influences,influences, SocialSocial andand EnvironmentalEnvironmentalinfluencesinfluences..

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LearningLearning

TheThe processprocess byby whichwhich individualsindividuals acquireacquirethethe purchasepurchase andand consumptionconsumption knowledgeknowledgeandand experienceexperience that that theythey applyapply toto futurefuture

relatedrelated behaviorbehavior..Subject Subject toto changeschanges withwith thethe newlynewly acquiredacquired

knowledgeknowledge..

LearningLearning isis bothboth intentionalintentional andand incidentalincidental..

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 Attitude Attitude

 Attitude Attitude isis aa learnedlearned predispositionpredisposition toto behavebehave..

 Attitude Attitude couldcould bebe favorablefavorable oror unfavorableunfavorablebehaviorbehavior towardstowards anan object object ..

 Object Object inin thethe context context of of consumerconsumer behaviorbehaviorincludesincludes products,products, packages,packages, price,price, retailers,retailers,service,service, medium,medium, advertisement advertisement etcetc..

ResearchersResearchers areare object object --specificspecific whenwhen studyingstudying

about about attitudeattitude..

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Consumer BehaviorConsumer Behavior

External InfluencesExternal Influences

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1. Reference Groups1. Reference Groups

Direct Direct  FamilyFamily Friendship groupsFriendship groups Shopping GroupsShopping Groups Work GroupsWork Groups Membership GroupsMembership Groups Symbolic GroupsSymbolic Groups  Virtual Groups Virtual Groups Brand CommunitiesBrand Communities Consumer Action GroupsConsumer Action Groups

Indirect Indirect  CelebritiesCelebrities EmployeesEmployees Experts Experts  Common ManCommon Man

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2. Social Class2. Social Class

Lower Lower -- Lower Class (Rock Bottom)Lower Class (Rock Bottom)

Upper Upper    Lower Class (Security minded)Lower Class (Security minded)

LowerLower--Middle Class (Followers)Middle Class (Followers)Middle (Marginal)Middle (Marginal)

UpperUpper--Middle Class (Achievers)Middle Class (Achievers)

LowerLower--Upper Class (New Wealth)Upper Class (New Wealth)UpperUpper--Upper Class (Established Families)Upper Class (Established Families)

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3. Culture3. Culture

Character of  a total societyCharacter of  a total society

Language,Language, K nowledge,K nowledge, Laws,Laws, Religions,Religions, FoodFood--

Customs,Customs, Music,Music, Art, Art, ProductsProducts etcetc..

SumSum totaltotal of of learnedlearned beliefs,beliefs, values,values, andand customscustomsthat that leadlead thethe membersmembers of of aa societysociety towardstowards aaparticularparticular buyingbuying patternpattern..

GivesGives directiondirection toto satisfysatisfy somesome basicbasic orderorder needsneeds..

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4. Sub4. Sub--CultureCulture

True SubTrue Sub--culturescultures

1.1. NationalityNationality

2.2. ReligionReligion

3.3. Geographic

Region

Geographic

Region

4.4. FC/BC/MBA /OCFC/BC/MBA /OC

5.5. Mother TongueMother Tongue

Demographics as subDemographics as sub--culturescultures

1.  Age2. Gender

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5. Cross Culture5. Cross Culture

StudyingStudying acrossacross culturescultures betweenbetween statesstates / /countriescountries / / geographicalgeographical boundariesboundaries..

UnderstandingUnderstanding thethe similaritiessimilarities andand differencesdifferences

amongamong peoplepeople.. TimeTime effectseffects (Schooling,(Schooling, shopping,shopping, workingworking etc)etc)

CompositionComposition (Class(Class composition)composition)

 Acceptance Acceptance toto changechange andand willingnesswillingness toto transformtransform