Introduction

The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how
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The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The the psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points:

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Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest. Consumer behavior involves services and ideas as well as tangible products. The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.

There are four main applications of consumer behavior:

The most obvious is for marketing strategy—i.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the

however. For example. a marketing professor. a number still became pregnant while taking the drug. A competing firm that targets babies. awareness of its brands) against pressures it faces from the market. would be if we could get illegal drug users to stop. however. a recession may cut demand dramatically. although we may have developed a product that offers great appeal for consumers. a near miracle cure for acne. In other words. that we make a product aimed at older consumers. Dr. Suppose. you often pay a size premium by buying the larger quantity. This.g. for example. .• • • rest of the population. There are several units in the market that can be analyzed. However. a shrinking market. since they will in turn influence many subsequent customers’ brand choices. As a final benefit. for example. market knowledge. a growing segment. that if you buy a 64 liquid ounce bottle of laundry detergent. you should pay less per ounce than if you bought two 32 ounce bottles. knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. was introduced. As a result. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them. studying consumer behavior should make us better consumers. we need to examine its assets (e. in this case. technology. Accutane. using knowledge of consumer attitudes. we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers. obviously. Unfortunately. Marty Fishbein. Our main thrust in this course is the consumer. a goal that was believed to be more realistic. Finally. is likely to consider repositioning toward our market. Social marketing involves getting ideas across to consumers rather than selling something. was deemed to be infeasible. To assess a competing firm’s potential threat. The best solution. we will also need to analyze our own firm’s strengths and weaknesses and those of competing firms. In practice. we need to assess conditions (the marketing environment). patents. In the 1980s. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. To get consumers’ attention. A second application is public policy. Common sense suggests. Although physicians were instructed to warn their female patients of this. Accutane resulted in severe birth defects if taken by pregnant women..

homogeneity and weak and strong Pareto optimality. monotonocity.. using.Consumer behavior Consumer behavior invented by arpit aggarwal(in consumer business context) referred to as the study of when. the productive system is considered from its beginning at the production level. Belch and Belch define consumer behavior as 'the process and activities people engage in when searching for. personalisation. why. and society in general. both individually and in groups. where and what people do or do not buy products.[1] It blends elements from psychology. social welfare function is achieved. It attempts to understand the buyer decision making process. With that in mind. A greater importance is also placed on consumer retention. and disposing of products and services so as to satisfy their needs and desires'. sociology. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. selecting. Some specifications of the social functions are decisiveness. with the customer playing the three distinct roles of user. 2009). reference groups. Customer behaviour study is based on consumer buying behaviour. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. neutrality. purchasing. evaluating. No social choice function meets these requirements in an ordinal scale simultaneously. the consumer (Kioumarsi et al. It also tries to assess influences on the consumer from groups such as family. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. Marketing provides services in order to satisfy customers. Social functions can be categorized into social choice and welfare functions. payer and buyer. customisation and one-toone marketing. Each method for vote counting is assumed as a social function but if Arrow’s possibility theorem is used for a social function. how. unanimity. anonymity. customer relationship management. anthropology and economics.' . to the end of the cycle. friends.social .

Contents • • • • • • • • • • 1 Black box model 2 Information search 3 Information evaluation 4 Purchase decision 5 Postpurchase evaluation 6 Internal influences 7 External influences 8 Further reading 9 References 10 External links [edit] Black box model ENVIRONMENTAL FACTORS Marketing Stimuli Environmental Stimuli BUYER'S BLACK BOX Buyer Characteristics Decision Process Problem recognition Information search Alternative evaluation Purchase decision Post-purchase behaviour BUYER'S RESPONSE Product Price Place Promotion Economic Technological Political Cultural Demographic Natural Attitudes Motivation Perceptions Personality Lifestyle Knowledge Product choice Brand choice Dealer choice Purchase timing Purchase amount The black box model shows the interaction of stimuli. which determines the buyers response. in which it is assumed that the buyer has recognized the problem. The black box model considers the buyers response as a result of a conscious. The marketing stimuli are planned and processed by the companies. but the relation between the stimuli and the response of the consumer. The buyers black box contains the buyer characteristics and the decision process. where the focus is not set on the processes inside a consumer. political and cultural circumstances of a society. . whereas the environmental stimulus are given by social factors. based on the economical.[1] It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people).[2] The black box model is related to the black box theory of behaviourism. decision process and consumer responses. rational decision process. consumer characteristics.

CV Information evaluation At this time the consumer compares the brands and products that are in their evoked set. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. . attitudes. selects. organizes. and interprets information to create a meaningful picture of the world' The selective perception process Stage Description . they search for information on products and services that can solve that problem.However.Selective exposure consumers select which promotional messages they will expose themselves to. in reality many decisions are not made in awareness of a determined problem by the consumer.Selective attention consumers select which promotional messages they will pay attention to . Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search.Selective comprehension consumer interpret messages in line with their beliefs. motives and experiences . How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. Information search Once the consumer has recognised a problem.Selective retention consumers remember messages that are more meaningful or important to them The implications of this process help develop an effective promotional strategy. and select which sources of information are more effective for the brand. . Perception is defined as 'the process by which an individual receives. Sources of information include: • • • • Personal sources Commercial sources Public sources Personal experience The relevant internal psychological process that is associated with information search is perception.

the customer should be encouraged that he or she has made the right decision. The provision of credit or payment terms may encourage purchase. it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. To manage the post-purchase stage. and feelings.sub-culture. The marketing organization must facilitate the consumer to act on their purchase intention. motivation. Postpurchase evaluation It is common for customers to experience concerns after making a purchase decision. . the consumer is ready to make a purchase decision. beliefs. lifestyle. royalty. The relevant internal psychological process that is associated with purchase decision is integration. reference groups. knowledge. personality. Internal influences Consumer behaviour is influenced by: demographics. family. In these circumstances that customer will not repurchase immediately. and market mix factors. locality. Sometimes purchase intention does not result in an actual purchase. ethnicity. consumer behaviour concern with consumer need consumer actions in the direction of satisfing needs leads to his behaviour behaviour of every individuals depend on thinking process External influences Consumer behaviour is influenced by: culture. Then after having made a purchase. attitudes. having bought a product. may feel that an alternative would have been preferable. psychographics (lifestyle). This arises from a concept that is known as “cognitive dissonance”. or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The customer.Purchase decision Once the alternatives have been evaluated. but is likely to switch brands next time. social class.