1) What is Consumer Behavior ProcessProcess?

Consumer Behavior Process is a study of individuals’, groups’ and

organizations’ decisions by observing their selections, purchasing,
use and rejections of goods, ideas or experiences to fulfill their wants
and needs.
It defines the actions of the consumers in the marketplace and what
are their motives behind those actions.
In simple words we can say that Consumer Behavior Process or
consumer buying process is how consumers decide what they need,
want and what they desire and how they buy, use and get rid of
goods that they don’t need or they don’t want.

2) Importance of Consumer Behavior

Consumer Behavior Process or consumer buying process is quite
important and it contributes a lot to the marketplace.
By studying its market understands and can figure out which
products are needed in the marketplace, which products are
outdated and how to present the product to the consumer.
Understanding Consumer Behavior, we can assume that the
consumer is an actor in the marketplace and he is playing a role.
They play various roles. They play roles like information providers
from users to the payer and the disposer. These roles are generally
played while making decisions.
These roles might be different in different consumption situations.
For example- A mother plays the role of an influencer when her child
is in the purchasing process and at the same time she plays the role
of a disposer for the products used by her family.

Importance of Consumer Behavior

Consumer Behavior Process or consumer buying process is quite
important and it contributes a lot to the marketplace.
By studying its market understands and can figure out which
products are needed in the marketplace, which products are
outdated and how to present the product to the consumer.
Understanding Consumer Behavior, we can assume that the
consumer is an actor in the marketplace and he is playing a role.
They play various roles. They play roles like information providers
from users to the payer and the disposer. These roles are generally
played while making decisions.
These roles might be different in different consumption situations.
For example- A mother plays the role of an influencer when her child
is in the purchasing process and at the same time she plays the role
of a disposer for the products used by her family.
3) Types of Consumer Behavior
1. Complex Buying Behavior –
This type of Consumer Behavior Process is experienced when a
consumer is buying an expensive, occasionally bought products.
They have already done a lot of consumer research and are highly
involved in the purchase process before investing. For example –
Buying a car, buying a house, etc.
2. Dissonance-reducing buying behaviour –
In this type of Consumer Behavior, the consumer is highly confused
between the brands and the differences between the brands but
they are highly involved in the purchase process.
This type of situation generally occurs when a consumer has second
thoughts or might think that h/she might regret his/her decision or
choice later.
3. Habitual buying Behaviour –
This type of behaviour is characterized by the fact that the consumer
has very little involvement in the category of the product or brand.
For example – You go to buy bread. There you buy your preferred
type of bread irrespective of which brand it belongs to.
In short, you are following a habitual pattern and not having brand
loyalty.
4. Variety seeking behaviour
In this type of Consumer Behavior, the consumer seeks variety. They
try different products at different times.
This necessarily does not mean that they weren’t satisfied with the
previous product. It is just they want to try different varieties.
4) What factors influence Consumer Behavior?
The influence on Consumer Behavior Process changes by 5 factors.
These two factors are:
1. Personal factors: There are three major personal factors.
2. Age and lifecycle factor: Age brings a lot of changes in
Consumer Behavior’ buying. As people grow their need
changes. Some products are age-based like baby bottle and
diapers are made for children as an adult is not going to use
the same.
3. Cultural Factor
4. Psychological Factor
5. Social Factor
Some companies make products only for a specific age group. Every
age group has different needs and wants. With Age lifestyle of a
person also changes.
Where a youngster spends money mostly for entertainment
purposes, an older person spends money for health purpose.
Personal Factors includes
1. Gender
2. Income
3. Education
Now we explain all these factors in detail which affect Consumer
Behavior.
1. Gender:
Consumer’s buying behavior also changes with gender. A man
and a woman can have different preferences.
The reason for the different choices is different needs. In some
areas, they can have some choices too like in movies, web
series, food, fun, technological gadgets, and travel but some
products are made for either of them.
Like makeup products are used by women and a product like
shaving razor are used by men only.
2. Income:
Income also plays an important role in shifting consumer
preference from one product to another product or from one
brand to another brand.
i) A person with a high income will always prefer luxurious
products as he can buy. but a person with low income will
prefer cheaper products.
ii) People with high incomes will spend more on their lifestyle
and entertainment as compared to a person with low income.
iii) Consumers with less income will focus on their basic needs
like food, clothes, and shelter but a high-income person will
complete these basic needs with luxury. Based on income, a
person prepares his budget so any increase or decrease in the
income can cause a shift in the people’s choice of brands and
products.
3. Education:
Education causes a big change in how a person looks at the
world. An educated person will do big research before going to
the market which an uneducated person will not do.
As people are getting educated, they want to know more about the
products offered to them. They do not keep themselves depend on
ads only. Now, if an educated person is going to the market, he will
choose only that product that satisfies him properly.
Example: if an educated person is going to buy a mobile phone, he
will research its features and he will compare the prices with its
substitutes and after that, he will come to a decision.
(2) Psychological Factors: Psychological Factors is also another factor
that drives Consumer Behavior Processvery much. This factor affects
the consumer emotionally and mentally. Some of them are:
Perception:
Perception is how a consumer understands your product and
interprets it.
It depends on many factors like how he sees, hear and understands
about the brand. What a consumer think of a product can change its
decision making in the same way.
As we know, the first impression is the last. So if a brand has
advertised its product effectively then it can leave a long-lasting
image in the mind of the customer.
A belief may be positive as well as negative. Attitude is how a
consumer responds to a product that depends on his belief.
(3) Cultural Factors: Cultural factors that affect Consumer Behavior
Process are:
1.Culture: Culture is the set of beliefs and perceptions that a person
learns from its family and society at a very early stage and follows it.
Culture can be divided into food, tradition, clothes and also
behavior. Culture is varied from country to country and group to
group.
Example: The tradition of America is different from India. Females in
America will prefer western clothes whereas, in India, Saree is our
tradition.
Subculture: Each culture is then divided into sub-cultures like caste,
class, and gender. Every caste has its own belief like in Hindu
marriages red lehengas are preferred while in Christian white gowns
are preferred.
An Upper-class person will spend on luxurious items whereas a
lower-class person will spend on cheaper items. And in a gender,
males are generally not considered to buy fairness cream.
It is a belief that only females can use fairness creams.
Social class: When a society is divided based on its social standing,
economic success and wealth then it is known as social class.
Social classes are also made based on Education and Occupation.
Social class affects the behavior of the consumer as people made
their Choices, purchases, consumption and also interact based on
their social standing.
(4) Social Factors: Social Factors are related to society and mainly
with a group. Social factors that affect Consumer Behavior Process
are:
Family: Family can be defined as when people or groups of people
are related to each other by blood, marriage, adoption or are living
together.
Family plays a big role in influencing Consumer Behavior Process as
an individual will shape their personality, beliefs, perception, tastes
according to their family.
Ex: Decisions taken by a male head in a family.
1. Reference group: Reference group is people or groups of
people whose advice an individual seek while making any
purchase. A reference group can influence Consumer Behavior
Process as An individual’s beliefs, perceptions, values, and
behavior are generally influenced by its reference group.
Example: neighbors, teachers.
2. Role and Status: A person’s role is defined by its position in
that particular group. People make their purchases based on
their role and status in society.
They purchase products that can be showed as a status symbol in
their group so marketers should make their product based on the
status of their targeted audience.
Other Factors include
1. Learning: Learning is what consumer remembers about the
product after use of that product. It can be positive or negative.
He will buy that product in the future or not depends on a
consumer’s experience with that product.
He will make that decision if the product’s quality, price, service
has satisfied him properly and meet his expectations.
 2. Motivation: Motivation is an internal force that encourages the
customer to buy a particular product. When a consumer
decides that I want to buy this particular product and I will get it
anyhow then it works in favor of that product.
3. Attitude and beliefs: Sometimes consumer attaches beliefs to
a particular product. Beliefs are when a consumer has a
particular mindset about a particular product and he believes it
to be true.

5) The 5 Factors that Influence Our Decisions:

There are 5 factors are:
1. Purchasing Power: Purchasing Power is a very important role
play to influence consumer behaviour.
Generally, Consumer analyses their Purchasing capacity, as well
as a consumer, think about his budget before the purchase any
product or services. It doesn’t matter how your product is
Excellent if it fails to meet the potential of buyers’ ability. It will
highly impact on its sales. The Consumer Behavior Process and
their purchasing capacity would help in determining eligible
consumers to get achieve better results. Greater impact on the
end purchase made by a consumer.
2. Economic Conditions: Economic Conditions is the very
important role play to influence Consumer Behavior. Consumer
decisions strongly influence the current financial position of the
market. Whenever the Economy is growing then buyer
purchasing also increases. Or whenever the economy is going
down then it also affects buyer purchasing power hence its
effect on the total market. The positive economic environment
is known to make consumers more confident and ready to
purchase despite their financial liabilities.
3. Marketing Campaigns: Marketing Campaigns or
advertisements is an important role in influence the purchasing
decision made by the consumer.
They are also known to bring a great change in the market
shares of competing industries by influencing the purchasing
 decisions of consumers. Regularly conducted marketing
campaigns can influence a consumer’s purchase decision to the
extent that they can choose one brand for another or make
unsightly or unsightly purchases. Marketing campaigns if
undertaken at regular intervals even help to remind consumers
to shop for not so exciting products such as health products or
insurance policies.
4. Group Influence: Group Influence also plays an important role
in influencing consumer behaviour. The Primary influential
groups include Family Members, close friends, Immediate
Relatives and Classmates, and the Secondary influential groups
includes co-workers, neighbours, clubs, and organizations, as
well as acquaintances, are seen greater influence on consumer
purchasing decisions. Say for example Craze for the iPhone in
the luxury phone are an example.
5. Personal Preferences: In the Personal level, Consumer
Behavior Processes influenced by various colours of Morals,
Values, likes, dislikes, preferences, beliefs. Some certain
dynamic industries such as personal care, consumer personal
outlook, fashion, and food industries, personal views and
opinions related to style and fun can become major influencing
factors. Although adverting can help to influence these factors
to some extent, The individual consumer likes and Dislikes
having a greater impact on the end purchase made by a
consumer.
FAQs
Why is consumer behavior a dynamic process?
Consumer behavior is a dynamic process because consumer behavior is
associated with a variety of influences such as personal, economical,
social, and psychological, all these processes are divided into this.
What are the 5 stages of the consumer buying decision process?
The search process, comparison, product service selection, and decision
evaluation are all 5 stages of a consumer decision. Most consumers begin
to make decisions through this process.
What is consumer behavior and why is it important?
It is necessary for the businessman to know about consumer buying
behavior because by understanding the expectation of the consumers, he
can take his business forward and it makes it easier to understand which
product the consumer can buy.