MODULE 2
CONSUMER BEHAVIOUR
ANALYSIS
As a Marketer why do I need to study Consumer Behavior?
How are consumer attitudes
towards products formed or
changed? What cues do Consumers
use to infer which product is
superior to others? What determines whether a
consumer will be satisfied with a
product and whether he/ she will buy
it again ?
Does this person tell others about
his/her experiences with the product
and influence their purchase
How do situational factors, such decisions?
as time, pressure or store
displays, affect the consumers
purchase decisions?
What is Consumer Behavior?
Consumer behavior is the study of when, why, how,
and where people do or do not buy product.
The field of Consumer behavior is the study of the
processes involved when individuals or groups select,
purchase, use, or dispose of products, services ideas,
or experiences to satisfy needs and desires.
Consumer buyer behaviour: The buying
behaviour of final consumers individuals and
households that buy goods and services for
personal consumption.
Consumer market: All the individuals and
households who buy or acquire goods and
services for personal consumption.
Ex: Harley Davidson’s
WHY WE STUDY CB
Because no longer we can take the
consumer/customer granted.
Competitors are waiting too swallow.
Customers are ready to change/shift.
CHARACTERISTICS OF CB
It is the part of human behavior.
Difficult and complex because involves study of
human beings.
It is dynamic.
Is influenced by psychological, physical and
social factors.
It is crucial for marketers.
It is continuous start from before buying and
continuing after purchasing.
CULTURAL
Culture: the set of basic values, perceptions,
wants, and behaviors learned by a member of
society from family and other important
institutions.
Ex: punjabi ads, bengali ads
Sub culture: A group of people with shared
value system based on common life
experiences and situations.
Ex: loreal men expert, Garnier men are trying to
seize the marketing opportunity that has
arisen due to the cultural shift among young
men in India.
SOCIAL FACTORS
A consumer behaviour is also influenced by
social factors, such as the consumer’s Small or
reference groups, family and social roles and
status.
Reference groups: Two or more people who
interact to accomplish individual goals or
mutual goals.
Word of mouth influence, online social
networks
Family: Family members can strongly
influence buyer behavior.
Ex: Broke bond red label tea in India
encourages its consumers to send in stories of
their marriage. It promises to print the
interesting ones on the package of the tea,
along with a family photograph.
Role and status: A person belongs to many
groups, family, clubs, organizations. The
person’s position in each group can be defined
in terms of both role and status.
PERSONAL
Age and lifecycle stage: As and when the
people crosses the age, their needs wants will
also change.
Occupation: A person’s occupation affects the
goods and services bought.
Ex: Suitings Raymond-(Executives and managers
use different products)
Economic situation: a person’s economic
situation will affect product choice.
Marketers of income-sensitive goods watch
trends in personal income,savings,and interest
rates.
Ex: Rolex watches concentrates on people
with stronger income groups, where as Timex
makes affordable watches as compared with
Rolex.
Lifestyle: A person’s pattern of living as
expressed in his or her activities. Interests and
opinions. Ex: BMW
Personality and self concept: each person’s
distinct personality influences his or her
buying behavior.
PSYCHOLOGICAL
Motivation: Anything that influences a person
to buy a particular product can be called as
Motivation factor.
Perception: The process by which people
select, organise, and interpret information to
form a meaningful picture of the world.
Learning: Changes in individual’s behavior
arising from experience.
Beliefs and attitudes:
Beliefs: A descriptive thought that a person
holds about something.
Attitudes
CONSUMER PURCHASE DECISION PROCESS
Need recognition: The first stage of the buyer
decision process, in which the consumer
recognizes a problem or need.
The buyer recognizes a problem or need.
It could be an outcome of internal stimuli or
external stimuli.
External stimuli could be an outcome of
advertisement.
Information search: The stage of the buyer
decision process in which the consumer is
aroused to search for more information; the
consumer may simply have heightened
attention or may go into an active information
search.
Ex: you have decided to take up a new car, u
tend to see more advertisements.
It could be personal or commercial sources.
Alternative evaluation: The stage of the
buyer decision process in which the consumer
uses information to evaluate brands in the
choice set.
Ex: we have narrowed the car choices to 3
brands and we selected on the basis of 4
attributes-Styling, operating economy,
warranty and price.
Purchase decision: The buyer’s decision about
which brand to purchase.
Consumer’s purchase decision will be to buy the
most preferred brand, but two factors can come
between the purchase intention and the purchase
decision.
The second factor is unexpected situational
factors.ex: based on expected income we may plan
to buy the car, but if the economy worsens we may
change the plan of buying it.
Post-Purchase Behavior: It is common for
customers to experiences concerns after making a
purchase decision.
To manage the post-purchase stage, it is the job of
the marketing team to persuade the potential
customer that the product will satisfy his or her
needs.
Then after having made a purchase, the customer
should be encouraged that he or she has made the
right decision
BUYING ROLES
For many products, it is easy to identify the buyer. Men
normally choose their shaving equipment and women
choose their lipsticks. Other products involve a decision-
making unit consisting of more than one person.
Consider the selection of a family automobile. The
teenage son may have suggested buying a new car. A
friend might advise the family on the kind of car to buy.
The husband might choose the make. The wife might
have definite desires regarding the car’s size and interior.
The husband might make the financial offer. The wife
might use the car more often than her husband.
We can distinguish five roles people might play in a buying
decision.
Initiator: A person who first suggests the ides of buying the
particular product or service.
Influencer: A person whose view or advise influences the
decision.
Decider: A person who decides on any component of buying
decision; whether to buy, what to buy, how to buy, or where
to buy.
Buyer: The person who makes the actual purchase.
User: A person who consumes or uses the product or service.
BUYING MOTIVES
A motive is a drive or an urge for which an
individual seeks satisfaction. A buying motive is
the reason why a person buys a particular
product.
It is driving force behind buying behavior and may
be based on psychological wants.
A motive or purpose of the purchase is mental
instinct.
It is imposed or created. It comes within the man.
“A motive may be defined as 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” – Stanton.
The important types of buying motives are as
follows:
Inherent and Learned Buying Motives.
Emotional and Rational Buying Motives.
Psychological and Social Buying Motives.
Inherent and Learned Buying Motives:
Inherent buying motives are those which arise from the basic
needs of the consumers such as hunger, gender, comfort and
safety. In order to satisfy these motives, a consumer has to make
his best efforts. If these motives remain unsatisfied, he feels
mental tension.
Learned motives are those which a customer acquires or learns
from the environment in which he lives or from education. These
motives are social status, social acceptance, economic, social and
political achievement, fear and security. These motives are much
affected by education and social environment of the customers.
Emotional and Rational Buying Motives:
Emotional buying motives are those which are affected by the
feeling of the heart. In such motives, heart dominates over head
and mind. In satisfying these needs sometimes man is not
rational. These motives are hunger, thirst, ego, prestige, comfort,
pleasure, love and affection etc.
Rational buying motives are those motives where a consumer is
rational in taking buying decision. Here head and mind dominate
heart. Before making any purchase, he satisfies himself with the
price, quality, durability, reliability and service and then decides to
purchase the goods which are useful to him and are available at
reasonable price. He takes more time in making rational
purchases.
Psychological and Social Buying Motives:
Psychological motives are those motives which are
concerned with the social groups. It assumes that
buying behavior of an individual is influenced by his
social environment and he is always anxious to conform
to the standard of his environment.
Social motives are those motives which are affected by
the society in which he lives. Man is social being and he
cannot remain unaffected by the society. He cannot
purchase anything without the sanction and recognition
of the society.
Buyer Behaviour Models
Consumers make many buying decisions every day.
Most large companies research consumer buying
decisions in great detail to answer questions about
what consumers buy, where they buy, how and how
much they buy, when they buy, and why they buy.
Marketers can study actual consumer purchases to
find out what they buy, where and how much.
But learning about the whys of consumer buying
behaviour is not so easy– the answers are often
locked deep within the consumer’s head.
The central question for marketers is; How do
consumers respond to various marketing
efforts the company might use? The company
that really understands how consumers will
respond to different product features, prices,
and advertising appeals has a great
advantage over its competitors.
THANK YOU
