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A growing number of studies in consumer behavior have found empirical support for the notion

that prior knowledge influences information processing behavior (Bettman and Park 1980;
Kardes 1986; Park 1976; Park and Lessig 1981; Rao and Monroe 1988; Srull 1983). Although
prior knowledge can take different forms in memory (Hastie 1981; Hayes-Roth 1977;
Rummelhart 1981), much of the previous research has looked at the effects of knowledge level,
where amount of knowledge is measured in terms of either perceived or objective product
knowledge. Thus, Alba (1983) reported that subjects high on self-reported knowledge could
recall from memory significantly more product information than less expert subjects. Johnson
and Russo (1984) found support for an "inverted U" relationship between degree of subjective
product familiarity and total amount of new product information recalled. Finally, Brucks (1985)
reported level of product class knowledge to be positively related to a third dimension of
information processing activity, variability of prepurchase search.
Market beliefs represent another aspect of a buyer's knowledge structure. Although level of
knowledge has been linked to the formation of market beliefs (Park and Lessig 1981; Rao and
Monroe 1988), relatively few studies in consumer behavior have focused on the impact of
market beliefs on buyer decision making. The present review of this literature identifies three
distinguishable research approaches.
The first approach includes studies which have investigated specific market beliefs relating to the
evaluation of hidden product benefits. Economists have long observed that, in imperfect
information markets, buyers will use prices to signal level of quality among unfamiliar
alternatives (Sciotvsky 1945; Wolinsky 1983). In marketing, a number of researchers have
confirmed that consumers frequently do subscribe to a "price is a reliable indicator of product
quality" belief (e.g., Enis and Stafford 1969; Gardner 1970; Monroe 1976; Olson 1977).
Inferences of product quality have also been linked to level of seller's advertising expenditures
(Salop 1978), market share (FTC Publication 1979), product warranty (Kelley 1988; Priest 1981;
Wiener 1985), brand image (Allison and Uhl 1964; Gardner 1971; Jacoby, Szybillo, and BusatoSchach 1977), length of time in business (Beales et al. 1981), and country of manufacture (Lillis
and Narayana 1974). Olshavsky (1984) has tied the use of such surrogate based beliefs to
decision making, identifying them as one of five consumer preference formation behaviors
which can ultimately affect brand (or store) choice. He contends that adoption of a surrogatebased preference formation strategy may reduce search by causing the buyer to focus on cues in
lieu of other available information. One correlate of this argument is that the more reliable the
surrogate is perceived to be, the less search and evaluation effort the decision maker will expend.
A second, related research stream has also dealt with surrogate-based market beliefs but is
narrower in its emphasis. Here, researchers have focused on a single market belief, "price is
positively related to quality," to investigate how beliefs may be formed and, once formed, how
they may impact on patterns of information search and evaluation. Borrowing from work on the
judgment of covariation by social perceivers (Crocker 1981), Bettman, John, and Scott (1984,
1986) identified covariation beliefs as one type of prior market belief. Covariation beliefs "refer
to those beliefs regarding the degree of relationship or association between two events or

concepts" (1986: p. 316). They are learned through the processes of hypothesis-testing and
assessment of covariation (Crocker 1981). The hypothesis-testing model suggests that consumers
develop notions about market relationships, prototypical products, effective buying strategies,
and so forth. For example, after observing friendlier service in stores which are smaller in size,
an individual may hypothesize a relationship (recognize a covariation) between service and store
size. According to the model, the consumer will assess the adequacy of the hypothesis by
sampling and interpreting additional information. He will revise the hypothesis if necessary and
use it to guide behavior only as it becomes validated.
In a study that investigated the price-quality relationship as a covariation belief, John, Scott, and
Bettman (1986) reported that subjects who believed that price was positively correlated with
product quality tended to sample higher priced products than subjects who did not subscribe to
the belief. These findings, and subsequent work by Grimm and Agrawal (1988), indicate that the
hypothesis testing process is biased; the content of prior surrogate-based market beliefs has a
systematic effect on subsequent information search patterns.
A third approach to the investigation of market beliefs was taken by Duncan and Olshavsky
(1982). These authors conducted a survey of 164 recent color TV purchasers in an attempt to (1)
identify a diverse set of commonly held market beliefs and (2) Find empirical support for
hypothesized associations between specific belief endorsements and types of information seeking
behavior. Twenty-seven market beliefs were isolated. They varied in content from "benefits of
search" and "attribute surrogate" items to beliefs pertaining to perceived "variance of offerings"
in the market. Eleven of the 27 beliefs were classified as "alternative limiting" in function. The
authors hypothesized that all 27 beliefs would affect amount of information search for a new
color TV set. Alternative limiting beliefs were those beliefs which were expected, a priori, to
have a significant impact on the type of brands or stores considered during the decision process.
It was through their influence on size and composition of the buyer's consideration set that
alternative limiting beliefs were expected to reduce total amount of information seeking.
Bivariate correlations between market belief endorsements scores and extent of search were
found to be statistically significant (in the predicted direction) for 15 of the 27 belief items.
Although regression analysis revealed only five of the 27 beliefs to be significantly related to
extent of search, the model explained 50% of the variance in prepurchase information seeking
among the color TV buyers. Finally, five of the 11 alternative limiting beliefs influenced type of
brand and store actually patronized.
Duncan and Olshavsky described their findings as "encouraging" and called for additional
research in a number of areas. Perhaps most pressing in their view is the need to generate a more
comprehensive inventory of market beliefs of all types.

Consumer Behaviour Christopher (1989) studied the shopping habits of consumers to form an idea of whether
or not the store concepts, product ranges and strategies of the companies are appropriate towards consumer
requirements. He believed that consumer behaviours are unpredictable and changing continuously changing;
while trying to under try to understand how individual or group make their decision to spend their available
resources on consumption-related items. These are factors that influence the consumer before, during, and after
a purchase (Schiffiman and Kanuk, 1997), for example, feedback, from other customers, packing, advertising,
product appearance, and price (Peter & Olsonetc, 2005).
The essence of this approach is critical for organisational success, so that they can have a better understanding
of their customer behaviours (Solomon et al., 2006). The physical action or behaviour of consumer and their
buying decision every day can be measured directly by marketers (Papanastassiu and Rouhani, 2006). For that
reason many organisations these days are spending lot of their resources to research how consumer makes their
buying decision, what they buy, how much they buy, when they buy, and where they buy (Kotler, Amstrong,
2001). To get a well coherent result, organisations normally looked at these behaviour base their analysis on
difference conceptions; whether customers buying behaviour were measured from different perspectives, such
as product quality and better service, lower price structured etc (Papanastassiu and Rouhani, 2006)
Different theories and researchers have claimed that when organisation fully meet all aspects of its customer
needs, the result enhances their profitability (Chaudhuri, 2006), and also enable them to develop a better
tackling strategies for consumer (Asseal, 1998). Possibly, the most challenging concept in marketing deals
with the understanding why buyers do what they do and what method or philosophy are they using to evaluate
the product after the transactions and what might be the effect on future transaction (Schiffman, 2004). The
reason why marketer chooses to learning about consumers buying behaviour is, from a business perspective;
to be able to be more effectively reach consumers and increase the chances for success (Sargeant & West,
2001). Therefore the field of consumer behaviour has take a tremendous turn in the commercial world and
became the fundamental concepts of achieving company goal (Schiffman and Kanuk, 2007).
More recently, different researchers and author have given their definition and meaning of consumer
behaviour. For Michael R. Solomon (2001) consumer behaviours typically analyse the processes of group
selected or individual purchases/dispose of product, service, concept or experiences to satisfy their need and
desires. Additionally, Kotler (1996) suggested that consumer behaviours have a huge impact in a firm
marketing decision making process every year. There is a risk that what a consumer does will inflict on his or
her behaviour and generate consequences. (Snoj, Pisnik Koda & Mumel, 2004). The user and the purchaser
can be different person, in some cases; another person may be an influencer providing recommendations for or
against certain products without actually buying or using them (Solomon 1999; Solomon et al. 1999).
In this case, most of the large consumer electronics retailers tend to gathered more information about
customers motivating factors and what influences their buying behaviours Solomon & Stuart (2000).
To get in-depth understanding consumer behaviour concepts will gives us an idea on how its plays significance
role in our life and in the whole trend of business profit to various firms which will allow the researcher to get
the analysis and determine product positioning, develop the message and targeting strategy in order to reach to
the market (Holskins J, 2002).