Understanding

Consumer Behaviour

Shipra Singh
Lecturer

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Consumer Behaviour is defined as the
behaviour that consumers display in
searching for, purchasing, using,
evaluating and disposing of products
and services that they expect will satisfy
their needs.

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CB focuses on:
 What they (consumer) buy ?
 Why they buy it ?
 When they buy it ?
 Where they buy it ?
 How frequently they but it ?
 How often they use it ?
 How they evaluate it after the purchase ?
 Impact of such evaluations on further purchases ?
 How they dispose of it ?
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 Customer and Consumer
• Customer:- A customer is an
individual/organization who makes payment for a
product being purchased.
• In other words he is the person who purchases a
particular product or a service not necessary that
he will use that particular good or a service.

• Consumer:- consumer is the person who uses a

particular good or service irrespective of the fact
that he has not bought that product or service.
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 Consumer

Personal/Individual consumer Organizational Consumer

Cigarette Desks
Sugar Raw material
Furniture Spare parts

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Development of the Marketing Concept

• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept

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“MEET THE NEW CONSUMER
and smile when you do because she is your
boss. It may not be the person you thought
you knew. Instead of choosing from what you
have to offer, she tells you what she wants.
You figure it out how to give it to her.”

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‘You cannot take the consumer for
granted any more’

Customer is not the king but the….

EMPEROR

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 Customer Needs Assessment

Develop Manufacture Market Deliver

Value Added Product

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 Interdisciplinary Nature
• Psychology (the study of an individual)
• Sociology (the study of groups)
• Social Psychology (the study of how an individual
operates in groups)
• Anthropology (the influence of society on the
individual)
• Economics (how consumers spend their funds to get
the maximum satisfaction from the purchases)
• History (origins of behaviour, perspectives & tradition)
• Geography (impact on individuals – isolation,
language development, climate) 10
Application of Consumer Behaviour
• Marketing Strategy
• Regulatory (Public) Policy
• Social Marketing
• Personal Consumer Skills

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 Organizational Buying
Vs. Consumer Buying

• Organizational Buyers are those who

purchase items on the behalf of their business
or organization

• Consumer Buyers are those who purchase

items for their personal consumption

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 Cont…

• Underlying Motivation
• Setting for Buying:
For Consumers, the buying unit is within the
household.
For the Organizational Buyers, the setting is within the
firm. (buying procedures, level of authority)
• Technical/Commercial Knowledge:
Usually organizational buyers are trained professionals,
more knowledgeable than the average consumer
buyers
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 Cont…
• Contact with Buyers/Distribution Channels:
Organizational markets are usually more
geographically concentrated.
Industrial marketer must normally maintain far more
direct and personal contact with potential clients.
• No of Decision Makers:
In Consumer Purchasing – an individual, a couple, a
family, friends
A great many people are involved in Organizational
Buying

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 Cont…
• Derived Demand:
Organizational buyers adjust their buying decisions on the
basis of projected sales figures, buying more units when
forecast sales are higher.
The result can be a sort of “pendulum effect”, with a knock-
on effect throughout the buying chain as each chain member
adjusts it’s buying patterns accordingly.
• Reciprocal Demand:
A buyer can also be a seller at the same time. Both
companies want to sell to each other, affecting each other’s
eventual buying decisions to a varying degree.
A software company producing a package for an insurance
company, for instance, might also purchase its insurance
services from what is effectively one of its own customers.15
 Consumer Buying Motives
A buying motive induces a buyer to buy a
product or a service.

Types of Buying Motives:

– Internal Motives
– External Motives

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Internal Motives:
Originate in the minds of the people and are
both physical and psychological in nature.

Classified in two terms

 Rational Motives
 Emotional Motives

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• Rational Motives (economical consideration):
Motives based on man’s reasoning, logic and
ability, and consideration of economic
consequences.

• Emotional Motives (psychological consideration):

Motives based on personal feelings and cover a
wide range of motives i.e. pleasure, comfort,
status, pride, ambition, social achievement, etc.

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• External Motives:
These are outside oneself. Since a consumer is
the product of his environment, his buying
motives are influenced by the external factor.
i.e. income, occupation, religion, culture,
family and social environment act as an
motivators.

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Thank You All For
Patient Listening !

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