An Introduction to Consumer

Behaviour

From the desk of :-

Dr. Harjit Singh

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 Books for Consume Behavior

Consumer Behavior By:

 Schiffman and Kanuk, Prentice Hall.
 Laudan & Bitta, Tata Mcgraw Hill
 Shainesh G & Sheth, Jagdish N, (CRM)
 CRM by Boehm, Thomas P.

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 Introduction: Key Terms

Buying Behavior
– The decision processes and acts of people involved
in buying and using products
Consumer Buying Behavior
– Buyingbehavior of people who
purchase products for personal
use and not for business purposes…

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 Why do we need to study Consumer
Behaviour?

The simple answer to this question is that no

longer can we take the customer for
granted…

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 Failure rates of new products
introduced

 Out of 11000 new products introduced by 77

companies, only 56% are present 5 years
later.
 Only 8% of new product concepts offered by
112 leading companies reached the market.
Out of that 83% failed to meet marketing
objectives…..

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 What we need to understand?

1. Why consumers make the purchases that

they make?
2. What factors influence consumer
purchases?
3. The changing factors in our society….

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 Consumer Behaviour?

Consumer

Marketing Buyer Buyer Buyer

4Ps
Environment Characteristics Decision Process Decision

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Marketing Stimuli

4 Ps

Product Price Place Promotion

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Other Stimuli

Marketing
Environment

Economic Technological Political Cultural

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 Students’ Activity:1

Think of a recent important purchase– briefly draw a

flowchart of the steps you recall moving through from
the awareness of need to post purchase

What influenced you at each step?....

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Factors Affecting Consumer
Purchases…

 Cultural
 Social
 Personal
 Psychological….

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Cultural factors

 Culture
 Sub - culture
 Social Class…

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Social factors

 Reference Groups
 Family
 Roles and Status….

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Personal Factors

 Family Life Cycle

 Occupation and Economic circumstances
 Lifestyle
 Personality and self - concept

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Psychological Factors

 Motivation
 Perception
 Learning
 Beliefs and Attitudes….

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 Psychological Influences on the
Buying Decision Process (cont’d)

Maslow’s Hierarchy of Needs

– The five levels of needs that humans are motivated
to seek and satisfy, from least to most important
are
Physiological needs—food, water, clothing,
shelter
Safety needs—security, freedom
Social needs—love, affection, belonging
Esteem needs—respect, recognition, self-worth
Self-actualization needs—personal growth
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Maslow believed that
people seek to fulfill five
categories of needs.

Maslow’s Hierarchy of Needs

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Buying Roles

 Initiator
 Influencer
 Decider
 Buyer
 User….

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 Buyer Behavior & Buying Role
Other people often influence a consumers purchase decision.
The marketer needs to know which people are involved in the
buying decision and what role each person plays, so that
marketing strategies can also be aimed at these people.
(Kotler et al, 1994).

• Initiator: the person who first suggests or thinks of the idea of buying a
particular product or service.

• Influencer: a person whose views or advice carry weight in making the

final buying decision

• Decider: the person who ultimately makes the final buying decision or any
part of it

• Buyer: the person who makes the actual purchase

• User: the person who consumes the product or service
Note: teens are increasingly assuming more of these roles

Think about your past purchase– who was in which role?

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 Consumer Decision-Making
Process
Need Recognition

Information Search
Cultural, Social,
Individual and
Psychological Evaluation
Factors of Alternatives
affect
all steps Purchase

Postpurchase
Behavior
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 1. Need Recognition

• When a current product isn’t

Marketing helps performing properly
consumers recognize
(or create) an imbalance
• When the consumer is running
between present status
and preferred state out of an product
Preferred State
• When another product seems
superior to the one currently used….

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 2. The information search stage

Personal sources
An internal search involves the (friends and family)
scanning of one's memory to recall previous
experiences or knowledge concerning
solutions to the problem-- often sufficient for Public sources (rating
frequently purchased products. services like Consumer
Reports)
An external search may be necessary
when past experience or knowledge is Marketer-dominated
insufficient, the risk of making a wrong sources (advertising
purchase decision is high, and/or the cost of or sales people)
gathering information is low.

The evoked set: a group of

brands from which the buyer can
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choose
 Determinants of External Search

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 3. Evaluation of Alternatives

 Product Choice
 Brand Choice
 Dealer Choice
 Purchase Timing
 Purchase Amount….

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 4. Purchase

– Choosing the product or brand to be bought

based on the outcome of the evaluation
stage
– The choice of seller may affect the final
product selection.
– Factors such as terms of sale, price,
delivery, and warranties may affect the
sale….
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 5. Post Purchase Behaviour

?
Cognitive Dissonance
Can minimize through:
•Effective Communication
•Follow-up
•Guarantees
Warranties
Did I make a good decision? •Under promise &
•Over deliver
Did I buy the right product?

Did I get a good value?

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 Post - Purchase Behaviour

 Satisfaction
 Actions
 Use and Disposal….

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 3. How do you know when to shop? What are the
triggers that initiate an awareness & search?

5. What are the internal & external sources of these

triggers?....

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 • Quickly list 10 items you have purchased in the past
month

• Reexamine how long it took you to make a decision

on each

• Why did such a difference in decision occur?...

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 Decision Processing

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