CONSUMER BEHAVIOUR

The term consumer behaviour, individual buyer behaviour, end user behaviour and
consumer buying behaviour all stands for the same. Consumer behaviour is the study
of how individuals, groups and organisations select, buy, use and dispose of goods and
services, ideas or experiences to satisfy their needs and wants.

Consumer behaviour may be defined as the decision process and physical activity
individuals engage in when evaluating, acquiring, using or disposing of goods and
services.

According to Belch and Belch "consumer behaviour is the process and activities
people engage in when searching for, selecting,purchasing, using, evaluating and
disposing of products and services so as to satisfy their needs and desires".
Nature of Consumer Behaviour:
Systematic process : Consumer behaviour is a systematic process relating to
buying decisions of the customers. The buying process consists of the following
steps :

● Need identification to buy the product

● Information search relating to the product
● Listening and evaluating the alternative
● Purchase decision
● Post purchase evaluation by the marketer

Influenced by various factors : Consumer behaviour is influenced by a number of

factors that influence consumers include marketing, personal, psychological,
situational, social and cultural etc.
Different for different customers : All consumers do not behave in the same
manner. Different consumers behave differently. The difference in consumer
behaviour is due to individual factors such as the nature of the consumer's lifestyle,
culture etc.

Different for different products : Consumer behaviour is different for different

products there are some consumers who may buy more quantity of certain items and
very low quantity of some other items.

Vary across regions : The consumer behaviour varies across States, regions and
countries. For instance, the behaviour of urban consumers is different from that of
rural consumers. Normally rural consumers are conservative (traditional) in their
buying behaviour.

Vital for marketers : Marketers need to have a good knowledge of consumer

behaviour and they need to study the various factors that influence consumer
behaviour of the target customers. The knowledge of consumer behaviour enables
marketers to take appropriate marketing decisions.

Reflect status : Consumer buying behaviour is not only influenced by status of a

consumer coma but it also reflects it. Those consumers who owned luxury cars,
watches and other items are considered by others as persons of higher status.

Determinants of Consumer Behaviour:

Some important determinants of consumer behaviour

might be analyzed into the following categories:

(1) Cultural-religious-social factors

(2) Personal factors

(3) Psychological factors

Following is a brief account of various factors comprised
in the above-mentioned categories:

(1) Cultural-Religious-Social Factors:

Some important determinants of consumer behaviour in

this category are:

(i) Culture:

Culture is a complex of values, beliefs, attitudes and understandings

which are shared in common by aggregates of people, living in
organized societies; and which shape human behaviour to a
particular style. Since consumer behaviour is a part of human
behaviour; culture has a profound effect on consumer behaviour.

For example, the consumer behaviour of the Indians is much

different from the consumer behaviour of people in other countries.

Again, even in India, the consumer behaviour of the North Indians

is much different from the consumer behaviour of the South
Indians; and so on for various other parts of the country.

(ii) Religion:

Religion has a profound effect on consumer behaviour. For

example, the consumer behaviours of the Hindus, the Muslims, and
the Christians etc. are very radically different. In fact, some very
traditional Hindus may not prefer leather goods; thinking it to be a
sin to consume items made of the skin of animals.

(iii) Family Consumption Patterns:

Family consumption patterns and trends, too, have an effect on

consumer behaviour. For example, the consumption habits and
patterns of the head of the family may be transmitted in to or
partially to his sons, daughters, wife, and brothers and so on.

(iv) Reference Groups:

Reference groups are social groups of friends, colleagues, relatives,

neighbors, etc. with whom a person comes into interaction, quite
frequently. These groups exercise a great impact on the consumer
behaviour.

(v) Changing Social Values:

Values, beliefs, attitudes etc. of people are changing in society,

summarized in the phrase ‘changing social values’. These changing
social values emerge due to factors like, technological
advancements, demonstration effect, generation gaps etc.; and
these shape consumer behaviour to a considerable extent.

(2) Personal Factors:

Some important determinants of consumer behaviour in
this category are:

(i) Economic Conditions of Individuals:

Economic conditions of people have a significant effect on

consumer behaviour. There is no doubt that consumption habits,
buying systems and other aspects of consumer behaviour of the
upper class, the middle class and the poor class are considerably
different.

(ii) Educational Background:

It is generally observed that educated persons let logic and intellect

dominate their buying decisions and exhibit totally different
consumer behaviour than uneducated or less educated people. The
latter category of people follow buying behaviour of others whom
they can in contact with and ordinarily use little logic in their
behaviour as consumers, especially on items of luxurious
consumption.

(iii) Occupation and Status:

Occupation and status of people are big determinants of consumer

behaviour. Many persons buy things of the type which others in
their occupation/profession are also consuming. Again men of
status e.g. doctors, professors, judges etc. may not like to buy cheap
items of consumption used by ordinary men, out of their prestige
and status in society.

(iv) Age:

Age of an individual has a great effect on consumer behaviour.

Buying habits and consumption behaviours of kids, adults and
elderly persons are observed to be very different from one another’s.

(v)Gender:

Males and females of society, belonging to different age groups,

have very different buying habits and consumption patterns. Ladies
of all strata of society are observed to be having a preference for
saree, costly garments, jewellery etc.; while gents may prefer
liquors, cigarette, books, items of comforts in their household etc.

(vi) Marital Status:

Married and unmarried people demonstrate different consumer

behaviours. In the married class of people also, consumer behaviour
of newly-weds may be much different from those who have
experienced substantial periods of married life.

(vii) Preference for Life Style:

Some people have a preference for a modern Westernized style of

life; while some may like to lead a simple Indian life style.
Consumer behaviours of both these categories of people are
substantially different.

(3) Psychological Factors:

Some determinants of consumer behaviour in this

category are:

(i) Motivation:

Keeping in view Maslow’s need hierarchy as a theory of motivation,

needs follow a hierarchical order towards their fulfillment.
Accordingly, people have a tendency to satisfy first those needs
which are unfulfilled at a particular level, before thinking of needs
at higher levels.

As such, this psychological concept of motivation shapes consumer

behaviour and men at different stages of need-hierarchy have
different consumption patterns and habits.

(ii) Perception:

Perception is one’s own way of looking at things. One object may be

perceived to be good by one; while some other may perceive that to
be quite bad and undesirable. Accordingly, perception has a
remarkable impact on consumer behaviour. People have a tendency
to buy things which they perceive to be desirable. Since perception
differs from persons to person; consumer behaviour also differs
from person to person.

(iii) Attitudes:

An attitude is a psychological attribute which makes one feel or

think about something- positively or negatively; and shapes one’s
behaviour towards the ‘attitudes object’, accordingly. In fact, people
have a preference for those items of consumptions towards which
they have a positive attitude. Hence, attitudes of people are a big
determinant of consumer behaviour.

(iv) Learning:

Learning here means a lesson learnt by an individual from his/her

past actions. Consumer behaviour is much shaped by the learning
process of people in that people prefer to buy things in respect of
which their experience was good or encouraging; and avoid things
in which their experience had been disheartening.