Consumer Behaviour: Meaning/Definition and Nature of Consumer Behaviour

Meaning and Definition:

Consumer behaviour is the study of how individual customers, groups or organizations select,
buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the
actions of the consumers in the marketplace and the underlying motives for those actions.
Marketers expect that by understanding what causes the consumers to buy particular goods and
services, they will be able to determine—which products are needed in the marketplace, which
are obsolete, and how best to present the goods to the consumers.
The study of consumer behaviour assumes that the consumers are actors in the marketplace. The
perspective of role theory assumes that consumers play various roles in the marketplace. Starting
from the information provider, from the user to the payer and to the disposer, consumers play
these roles in the decision process.
The roles also vary in different consumption situations; for example, a mother plays the role of
an influencer in a child’s purchase process, whereas she plays the role of a disposer for the
products consumed by the family.
Some selected definitions of consumer behaviour are as follows:
1. According to Engel, Blackwell, and Mansard, ‘consumer behaviour is the actions and decision
processes of people who purchase goods and services for personal consumption’.
2. According to Louden and Bitta, ‘consumer behaviour is the decision process and physical
activity, which individuals engage in when evaluating, acquiring, using or disposing of goods
and services’.
Nature of Consumer Behaviour:
1. Influenced by various factors:
The various factors that influence the consumer behaviour are as follows:
a. Marketing factors such as product design, price, promotion, packaging, positioning and dis-
tribution.
b. Personal factors such as age, gender, education and income level.
c. Psychological factors such as buying motives, perception of the product and attitudes towards
the product.
d. Situational factors such as physical surroundings at the time of purchase, social surroundings
and time factor.
e. Social factors such as social status, reference groups and family.
f. Cultural factors, such as religion, social class—caste and sub-castes.
2. Undergoes a constant change:
Consumer behaviour is not static. It undergoes a change over a period of time depending on the
nature of products. For example, kids prefer colourful and fancy footwear, but as they grow up as
teenagers and young adults, they prefer trendy footwear, and as middle-aged and senior citizens
they prefer more sober footwear. The change in buying behaviour may take place due to several
other factors such as increase in income level, education level and marketing factors.
3. Varies from consumer to consumer:
All consumers do not behave in the same manner. Different consumers behave differently. The
differences in consumer behaviour are due to individual factors such as the nature of the
consumers, lifestyle and culture. For example, some consumers are technoholics. They go on a
shopping and spend beyond their means.
They borrow money from friends, relatives, banks, and at times even adopt unethical means to
spend on shopping of advance technologies. But there are other consumers who, despite having
surplus money, do not go even for the regular purchases and avoid use and purchase of advance
technologies.
4. Varies from region to region and country to county:
The consumer behaviour varies across states, regions and countries. For example, the behaviour
of the urban consumers is different from that of the rural consumers. A good number of rural
consumers are conservative in their buying behaviours.
The rich rural consumers may think twice to spend on luxuries despite having sufficient funds,
whereas the urban consumers may even take bank loans to buy luxury items such as cars and
household appliances. The consumer behaviour may also varies across the states, regions and
countries. It may differ depending on the upbringing, lifestyles and level of development.
5. Information on consumer behaviour is important to the marketers:
Marketers need to have a good knowledge of the consumer behaviour. They need to study the
various factors that influence the consumer behaviour of their target customers.
The knowledge of consumer behaviour enables them to take appropriate marketing decisions in
respect of the following factors:
a. Product design/model
b. Pricing of the product
c. Promotion of the product
d. Packaging
e. Positioning
f. Place of distribution
6. Leads to purchase decision:
A positive consumer behaviour leads to a purchase decision. A consumer may take the decision
of buying a product on the basis of different buying motives. The purchase decision leads to
higher demand, and the sales of the marketers increase. Therefore, marketers need to influence
consumer behaviour to increase their purchases.
7. Varies from product to product:
Consumer behaviour is different for different products. There are some consumers who may buy
more quantity of certain items and very low or no quantity of other items. For example, teenagers
may spend heavily on products such as cell phones and branded wears for snob appeal, but may
not spend on general and academic reading. A middle- aged person may spend less on clothing,
but may invest money in savings, insurance schemes, pension schemes, and so on.
8. Improves standard of living:
The buying behaviour of the consumers may lead to higher standard of living. The more a person
buys the goods and services, the higher is the standard of living. But if a person spends less on
goods and services, despite having a good income, they deprives themselves of higher standard
of living.
9. Reflects status:
The consumer behaviour is not only influenced by the status of a consumer, but it also reflects it.
The consumers who own luxury cars, watches and other items are considered belonging to a
higher status. The luxury items also give a sense of pride to the owners.
Importance of Consumer Behaviour
Understanding consumer behaviour is important for any organization before launching a product.
If the organization failed to analyse how a customer will respond to a particular product, the
company will face losses. Consumer behaviour is very complex because each consumer has
different mind and attitude towards purchase, consumption and disposal of product (Solomon,
2009). Understanding the theories and concepts of consumer behaviour helps to market the
product or services successfully. Moreover, studying consumer behaviour helps in many aspects.
As there is constant change in the living standards, trend, fashion and change in technology;
consumer’s attitude towards the purchase of product varies (Kumar, 2004). Understanding these
factors is of utmost importance because the marketing of product are largely dependent on these
factors. Thus, consumer behaviour serves as a successful tool for marketers in meeting their sales
objectives.
Consumer Behaviour
Consumer Behaviour or the Buyer Behaviour is referred to the behaviour that is displayed by the
individual while they are buying, consuming or disposing any particular product or services.
These behaviours can be affected by multiple factors. Moreover, it also involves search for a
product, evaluation of product where the consumer evaluate different features, purchase and
consumption of product. Later the post purchase behaviour of product is studied which shows the
consumer satisfaction or dissatisfaction where it involves disposal of product (Solomon, 2009).
The customers while buying a product goes through many steps. The study of consumer
behaviour helps to understand how the buying decision is made and how they look for a product.
Moreover, the understanding consumer behaviour also helps marketers to know the what, where,
when, how and why of the consumption of product consumption (Kumar, 2004). These help
marketers or organizations to know the reason behind the purchase of product by consumers and
how it satisfies them. Among other factors, the basic needs like shelter and hunger along with
craving for psychological fulfilment tends consumer to buy a certain product or services.
Importance of Consumer Behaviour to business managers
The main purpose behind marketing a product is to satisfy demands and wants of the Consumers.
Study of consumer behaviour helps to achieve this purpose. As consumers are the most
important person for marketer or sales person, therefore it is important for them to consider the
likes and dislikes the consumers so that they can provide them with the goods and services
accordingly (Solomon, 2009). The more careful analysis helps in more exact prediction about the
behaviour of consumers of any product or services. The study of consumer behaviours helps
business manager, sales person and marketers in the following way.
 To design the best possible product or service that fully satisfies consumer’s needs and
demands.
 To decide where the service or product would be made available for easy access of
consumers.
 To decide the price at which the consumers would be ready to buy that product or
service.
 To find out the best method of promotion that will prove to be effective to attract
customers to buy a product.
 To understand why, when, how, what and other factors that influence buying decision of
the consumers.
Importance of Consumer Behaviour to Marketers
It is important for marketers to study consumer behaviour. It is important for them to know
consumers as individual or groups opt for, purchase, consumer or dispose products and services
and how they share their experience to satisfy their wants or needs (Solomon, 2009). This helps
marketers to investigate and understand the way in which consumers behave so that they can
position their products to specific group of people or targeted individuals.
n regard to the marketer’s view point, they assume that the basic purpose of marketing is to sell
goods and services to more people so that more profit could be made. This principle of making
profits is heavily applied by almost all marketers. Earlier, the marketers were successful in
accomplishing their purpose. However, today, as the consumers are more aware about the use of
product and other information of the product, it is not easy to sell or attract customer to buy the
product (Kumar, 2004). Thus, in order to sell a product or service or to convince consumers to
buy product, the marketers have to undergo through proper research to win them over.
The following are some of the points discussed that explains the value to marketers of
understanding and applying consumer behaviour concepts and theories.
1. To understand Buying Behaviour of consumers
2. To create and retain customers though online stores
3. To Understand the factors influencing Consumer’s buying Behaviour
4. To understand the consumer’s decision to dispose a product or services
5. To increase the knowledge of sales person influence consumer to buy product
6. To help marketers to sale of product and create focused marketing strategies.
1. To understand Buying Behaviour of consumers
The study of consumer behaviour helps marketers to recognize and forecast the purchase
behaviour of the consumers while they are purchasing a product. The study of consumer
behaviour helps the marketers not only to understand what consumer’s purchase, but helps to
understand why they purchase it (Kumar, 2004). Moreover, other questions like how, where and
when they purchase it are also answered. The consumption and the reasons behind disposition of
that particular product or services help marketers to be fully aware of the product that is
marketed. The consumer behaviour studies also help marketers to understand the post purchase
behaviour of the consumers. Thus, the marketers become fully aware about every phase of
consumption process i.e., pre-purchase behaviour, behaviour during purchase and post purchase
behaviour. Many studies in the past shows that each consumer behaves differently for a product
i.e., they buy the product for different reasons, pays different prices, used the product differently
and have different emotional attachments with the product (Solomon, 2009).
2. To create and retain customers though online stores
Professor Theodore Levitt says that consumer behaviour is of most importance to marketers in
business studies as the main aim is to create and retain customers (Kumar, 2004). If the
consumers are satisfied with the product, he or she will buy the same product again. Therefore,
the product should be marketed by markers in such a way that convince customer to buy the
product. Thus, creating customer and the retaining those customers are important. These can be
done through understanding and paying close attention towards the consumer’s behaviour while
making purchase decision or buying a product in market place. Moreover, the information
published on the websites largely influence the customer’s buying behaviour. Such information
on published sources arouse consumer to buy a product or service. Moreover, updating such
information will help the consumer to retain to a product or re try the product if the product has
dissatisfied them (Solomon, 2009).
3. To understand the factors influencing Consumer’s buying Behaviour
It is important for marketers to consider the factors that affect the buying behaviour of consumer
before entering the market. There are many factors that can influence the purchase decision of
consumers such as social influence, cultural influences, psychological factors and personal
factors (Super Professeur, 2011). Understanding these factors helps marketers to market the
product on right time to the right consumers. For example, if marketer is marketing a product
which is Halal. The marketers first consider all the factors that can influence consumers to buy
Halal products, where they can target specific areas where Halal food is more sold.
The marketers need to pay attention to cultural influences such as religion, values and norms of
the people or societies targeted and lifestyle of the targeted consumers. The marketers can
propose different strategies that convince the targeted consumers to buy marketed products or
services.
Moreover, the marketers should be ascertain the factors that influence and affects purchase
decision of consumers (Solomon, 2009). If the marketers failed to understand the factors that
might influence consumers, they will fail to convince the consumer to purchase that product or
will fail to meet the demands of consumers. Some variables cannot be directly observed (Super
Professeur, 2011). In such case, thorough understanding of concepts and theories of consumer
behaviour helps marketers to predict the consumer’s buying behaviour to a reasonable extent.
Thus, understanding consumer’s behaviour to buy a product is complex and requires marketers
to continuously understand and apply various concepts and theories for successful marketing.
4. To increase the knowledge of sales person influence consumer to buy product
All the products and services marketed revolve around the behaviour of consumers that how they
will respond to them. Effective marketing of a product by sales people may help to deliver right
product to right people. Consumer behaviour deals with the knowledge of what the consumers
need and want to buy and what goods and services are available to satisfy their needs. Thus,
consumer behaviour deals with particularly with the behaviour of people i.e., consumers. It is
important for sales person to be fully aware of the customer’s requirement so that he or she could
clearly communicate the benefits of the product to the customers. Moreover, the sales person by
understanding consumer’s demand and need for a product can sell goods that are most closely
related to their requirement. Besides understanding consumer behaviour, the sales person should
also have command over their spoken language. This is because any miscommunication could
harm brand reputation. Moreover, if the consumers have more knowledge about the product than
the sales person, the sales might fail to meet their targets. Thus, analysing consumer’s behaviour
and knowledge for effective marketing of products by sales people are important. The sales
people must be fully aware of the consumer’s behaviour in different situations so that they could
help them in meeting their demands and satisfaction (Solomon, 2009).
Role of Consumer Behaviour in Marketing
Consumer Behaviour refers to the study of buying tendencies of consumers. An individual who
goes for shopping does not necessarily end up buying products. There are several stages a
consumer goes through before he finally picks up things available in the market. Various factors,
be it cultural, social, personal or psychological influence the buying decision of individuals.
Marketers need to understand the buying behaviour of consumers for their products to do well. It
is really important for marketers to understand what prompts a consumer to purchase a particular
product and what stops him from buying.

What marketers need to understand?

The psychology of consumers (what they feel about a particular product and their brand on the
whole).
How consumers are influenced by their immediate surroundings, family members, friends, co
workers and so on.
What a consumer thinks when he goes out for shopping?
A marketer needs to first identify his target consumers and understand their lifestyles,
psychologies, income, spending capabilities, mentalities to offer them the right product.
Individuals from lower income group would never be interested in buying expensive and
luxurious products. He would first fulfill his basic physiological needs like food, air, water etc.
Trying to sell a Mercedes or a Rado watch to someone who finds it difficult to make ends meet
would definitely be a disaster.
Kellogg’s K special would hardly find any takers in the low income group. In this segment,
individuals would be more interested in buying fresh fruits, vegetables, pulses which are
necessary for their survival rather than spending on health supplements.
It is really essential for the marketers to understand the needs of consumers. Find out what they
are actually looking for?
There are ideally two different ways which enable marketers to understand their consumers.
 Primary Research
 Secondary Research
Primary Research - Primary Research refers to a research methodology where marketers
interact with consumers directly and gather as much information as they can. Information is
generally collected through surveys, questionnaires, feedback forms, interviews etc.
Secondary Research - Secondary Research often refers to relying on information which has
been collected by others at some point of time.
The background and family status of an individual also influence his/her buying behaviour.
Selling a laptop to an individual who is not much educated would be pointless. Remember
consumers would show interest in your products only if they are of any use to them or their
immediate family members. A low grade worker would never be interested in purchasing
business suits or formal shirts.
Canned juices are a hit among middle and higher income group where individuals are really
conscious about their health and fitness. Individuals who live hand to mouth would never spend
on sugar free tablets, health supplements, or for that matter “Diet Coke”.
It is also important to give complete information to end-users. Do not hide anything from them.
It is not ethical. All tobacco products come with a warning. Individuals should be familiar with
not only the benefits but also the side effects of the products.
Marketers must also take into account:
 Age group of consumers
 Geographical location
 Lifestyle of consumers
 Social Status of consumers
Funky designs, loud colours would be a hit among teenagers whereas middle aged and elderly
people would prefer subtle colours and sophisticated designs.
Salwar Suits are extremely popular in North India whereas females prefer saris and skirt blouses
in eastern and southern parts of India.
Individuals from posh localities and good jobs would show keen interest towards buying
exclusive and unique products as compared to individuals who do not come from an affluent
background.
Importance of consumer behaviour:
1) Production policies: The study of consumer behaviour effects production policies of
enterprise. Consumer behaviour discovers the habits, tastes and preferences of consumers and
such discovery enables and enterprise to plan and develop its products according to these
specifications. It is necessary for an enterprise to be in continuous touch with the changes in
consumer behaviour so that necessary changes in products may be made.
2) Price policies: The buyer behaviour is equally important in having price policies. The buyers
of some products purchase only because particular articles are cheaper than the competitive
articles available in the market.
3) Decision regarding channels of distribution: The goods, which are sold and solely on the basis
of low price mast and economical distribution channels. In case of those articles, which week
T.V. sets, refrigerators etc. Must have different channels of distribution. Thus, decisions
regarding channels of distribution are taken on the basis of consumer behaviour.
4) Decision regarding sales promotion: Study of consumer behaviour is also vital in making
decisions regarding sales promotion. It enables the producer to know what motive prompt
consumer to make purchase and the same are utilized in promotional campaigns to awaken desire
to purchase.
5) Exploiting marketing opportunities: Study of consumer behaviour helps the marketers to
understand the consumer’s needs, aspirations, expectations, problems etc. This knowledge will
be useful to the marketers in exploiting marketing opportunities and meeting the challenges of
the market.
6) Consumer do not always act or react predictably: The consumers of the past used to react to
price levels as if price and quality had positive relation. Today, week value for money, lesser
price but with superior features. The consumer’s response indicates that the shift had occurred.
7) Highly diversified consumer preferences: This shift has occurred due to availability of more
choice now. Thus study of consumer behaviour is important to understand the changes.
8) Rapid introduction of new products: Rapid introduction of new product with technological
advancement has made the job of studying consumer behaviour more imperative. For example,
the information Technologies are changing very fast in personal computer industry.
9) Implementing the "Marketing concept": This calls for studying the consumer behaviour, all
customers need have to be given priority. Thus identification of target market before production
becomes essential to deliver the desired customer satisfaction and delight.
Advantages of Study of Consumer Behaviour:
The consumer science is largely used by marketer to find-out whether a particular product will
be purchased by consumers or not. The failure of a large number of products after II World War
compelled the producers and marketer to undertake consumer studies to market test the products.
Some of the advantages of study of consumer behaviour are as under:
Saves from Disaster:
The failure rate of new products is surprisingly high not only in highly competitive economies of
USA, Europe and Japan etc. but even in India. For instance, Roohafza of Hamdard succeeded
well but when other companies tried like Dabur to produce similar products they could not
succeed. Dabur had to stop production of Sharbat, because consumers did not like its taste.
Meghee became very popular with consumers but when other companies tried they failed, some
of them have become sick. There are many more such examples. If one tests the market before
launching a new product this type of disaster can be avoided or minimized.
Helps in Formulating Right Marketing Strategy:
If one studies well what factors will influence demand of a product accordingly production and
marketing strategies can be framed. Nirma in initial stages succeeded in its washing powder only
on account of its price. It gave tough competition to Hindustan Lever, Surf the market leader and
today Nirma has become a big producer.
In food items it is taste which decides whether consumer will buy it or not. Besides big names
even small producers have succeeded because of proper product. For instance, a small producer
of Sikanji (cold drink prepared by mixing syrup and lemon) at Modinagar has become a name in
the region and now he provides franchise to others. From a small pan shop he has become a well
known name in the area of Delhi-Modinagar and made huge profits. Helps in Sales Promotion

If through the study of consumer behaviour one is able to know correctly the factors which
influence buying decisions of the consumer one can promote sales of existing or new product.
The scheme of buying back old items has helped a lot LML in pushing sales.
This strategy was followed, by Akai T.V. and number of other companies like Bajaj Auto Akai.
T.V. Manufacturers of diesel generator sets, refrigerators, electric iron, pressure cookers etc. also
adopted the strategy and benefited.
Similarly, introduction of small packs of shampoos, washing powder and pan masala etc has
helped the companies to expand their market. “When producers found that even a poor person
does not mind trying a new costly product if it is available in affordable price pack many
companies introduced such packaging and when the product was liked they became regular
customers.
Segmentation of Market is helped:
The study of consumer behaviour suggested that everyone does not buy on price consideration or
utility consideration only. For high income group’s high priced cloth, cars, etc have been
produced. In certain cases the price of such cloth is three to eight times of normal suiting price
but some section still buy it for prestige or show.
The producers of such items make heavy profits which would not have been possible without
study of consumer behaviour because it is against basic economic theory. Even some producers
to cater different segments produce varieties of products such as soaps, creams, toothpastes etc.
Helps in Development of New Products:
Before launching a new product proper study of consumer tastes i.e. behaviour avoids later
failure and loss. This is particularly true for food items and daily consumption products. It is
equally true for fashion goods like garments, cosmetics, cigarettes and new flavours of existing
products. In certain cases if a product is reintroduced after a long gap this type of study helps.
For instance, Coca-Cola was banned in India in 1977 and consumers by and large forget its taste
and liking. Thumps up and other drinks took its place. When Coca-Cola was reintroduced in 90’s
it could as yet not reach the same supremacy. Life Bouy re-oriented its product and produced
different items like Life Bouy Gold, Life Bouy Plus to meet demand of different consumers.
Helps in Product Orientation:
The study of consumer behaviour helps to find-out why consumers are drifting away from a
product or why they are not liking it. For instance, some of Indian toothpastes are being
produced for long like Neem but it could not capture the market. There are many other instances
when a new product has been developed or reoriented to again capture its old glorious position.
Those who do it scientifically succeed and others who do not study consumer behaviour properly
or do not orient loose the market, merely by pretty faces or fancy claims he wants to be assured
that what is claimed is really true.

Therefore, based on consumer research new techniques are used Hindustan Lever and Procter &
Gamble for Surf Ultra and Ariel has brought in producers of cloth Bombay Dyeing and Reliance
to testify claims of producers of these washing powders. This is not an isolated case but this type
of study had paid good results to others also.
Helps in Reorientation of Packaging:
A great deal of importance is being given to packaging for quite some time by marketing
department and market research. But whether a particular packaging is liked by consumers or not
is a recent phenomenon. Consumer if likes a packing helps in pushing sales.
Producers of Vanaspati (hydrogenated oil), milk, drinks items, etc. have developed utility
packaging so that once container becomes empty they can be used for refilling. In certain cases
this fact is advertised also. But in many cases this has been done without study of consumer
behaviour and his attraction or disliking of a particular packaging. The fact however remains that
proper study can help in pushing sales.
Helps Consumers to Study their Behaviour:
The consumers often are guided by their income, emotions, opinion of others and they do not
undertake study of their behaviour whether it is scientific or not. The science, however, can help
them to study cost benefit of their buying decisions. The study can reveal them whether buying
an expansive item is rational, or not.
Whether they should buy Rs. 2 ball pen or fancy pen costing Rs. 100 or more. Whether they
should decide in favour of expensive cloth, car, consumer durables and other fashion goods or
should they buy on utility consideration. If there are competitive goods it can help them to make
consumer preference chart and then decide what to buy immediately and what to postpone and
what should be rejected.
Disadvantages of Study of Consumer Behaviour:
The marketers study the behaviour of consumer to mold it in favour of their product and
sometimes make fancy claims and use objectionable techniques. They also take the help to
produce and market such products which have no utility. In many cases consumers are exploited
by sexy or otherwise attractive advertisements through the media.
They take full advantage of weaknesses of consumers to mold it in their favour whether it is
scheme of exchange, gifts, lotteries or otherwise. All over the world consumers have been
exploited by sales promotion schemes and campaigns. For instance producers certain producers
claim that use of their tooth paste will guard against germs and cavity.
Producers of medicines claim cure of certain diseases. Producers of hair oils claim that it will
stop falling of hairs and/or new hairs will start growing. Slim centres claim to reduce weight in
magic speedy manner. Someone claims that baldness can be cured by replanting of new hairs in
short period. Someone claims regeneration of vitality even in old person.

Any number of examples can be given but such claims sometimes even by big companies are
only partially true. High priced products are introduced to take advantage of consumers
weakness just by changing shape, packing etc. Customers are attracted by gifts, lotteries,
exchange schemes, etc.
In such cases often claims are exaggerated and benefits in the form of sales promotion scheme is
only to seller and not to buyer. The government in most of the countries has found that though
consumer is the king he is exploited. Hence most of countries have framed and enacted many
acts and regulations to safe guard the interest of consumers.
In India also there are a large number of laws in this direction like Monopoly and Restrictive
Trade Practices Act (MRTP)., Essential Commodities Act., Consumer Protection Act,
compulsory printing of maximum retail price on each packing, weights and Measures Act and
Code of Advertising.
Conclusion:
The study of consumer behaviour basically is to mold consumer behaviour and his decisions by
market man and to avoid failure of their product, promote new products and for sales promotion.
The science at times is misused and to protect consumers there are a number of enactments both
in India and other countries. Actually consumer movement in India is much weaker than other
developed countries because till a decade back India was sellers’ market and competition is of
recent origin.
The study of consumer behaviour has proved that following are the main factors which
influence the behaviour:
1. Economic Factors:
Price
Income
Distribution of Income
Competition with substitutes
Utility
Consumer preferences
2. Social Factors:
Culture
Attitude of society
Social values
Life Style
Personality
Size of family
Education
Health standards
Social class like upper class, middle class-urban, rural. It also includes tribes, professions and
alike.
Group:
In certain societies and tribes group decision is taken or influences the decision.
3. Psychology:
It decides the personality, taste, attitudes of individuals or groups, life style, preferences
especially on occasions like marriage. The demonstration influence is also dependent upon
psychology of an individual.
4. Anthropology & Geography:
Climate, region, history all effect, consumer behaviour. In hot countries like India certain
products which keep us cool like squashes, sarbatas, are demanded but they have no demand in
cold regions. The dress is also influenced by climate along with other factors. Culture is also
influenced by climate.
5. Technology:
In case of equipment’s whether for consumer use or industrial use is affected by technological
innovations and features. But it is not confined to durable goods only. Even in case of perishable
goods the shelf life etc are determined by technological developments. Innovations and
introduction of new product also depends upon technological development.
Innovations and introduction of new products also depend upon technological change.
6. Others:
Knowledge-technical or otherwise and information. Government decisions, laws, distribution
policies, production policies have also big affect on consumer behaviour. All these factors are
studied by consumer behaviour scientists and then they decide what production and marketing
strategy should be adopted to develop a particular product, change the existing product and what
pricing and marketing mix should be used to attract more customers towards the product/service
in question to optimize sales and profits.
The consumer behaviour study in India has been ignored except by MNC’s and a few big
companies. It is because till recently say up to the beginning of 90’s there was sellers market and
anything could be sold. Therefore, hardly any attention was paid to consumer. For instance
Hindustan Motors continued to produce same car for decades till Maruti appeared on the arena.
But with the competition emerging many cars, refrigerators, TV’s to mention a few items
appeared on the scene.
This resulted into study of consumer behaviour and in future when competition is expected to be
fierce for many products and when not only American and European producers will be on the
scene but Japan and Korea are emerging big players there will be much greater emphasis on
study of consumer behaviour. The establishment of over 700 management institutes is also
helping greater use of the tool of consumer behaviour for marketing.

The Six Stages of the Consumer Buying Process and How to Market to Them

Far too often, retailers think that consumer buying is randomized. That certain products appeal to
certain customers and that a purchase either happens or it doesn’t. They approach product and
service marketing in the same way, based on trial and error. What if there were a distinctive set
of steps that most consumers went through before deciding whether to make a purchase or not?
What if there was a scientific method for determining what goes into the buying process that
could make marketing to a target audience more than a shot in the dark?
The good news? It does exist. The actual purchase is just one step. In fact, there are six stages to
the consumer buying process, and as a marketer, you can market to them effectively.
1. Problem Recognition
Put simply, before a purchase can ever take place, the customer must have a reason to believe
that what they want, where they want to be or how they perceive themselves or a situation is
different from where they actually are. The desire is different from the reality – this presents a
problem for the customer.
However, for the marketer, this creates an opportunity. By taking the time to “create a problem”
for the customer, whether they recognize that it exists already or not, you’re starting the buying
process. To do this, start with content marketing. Share facts and testimonials of what your
product or service can provide. Ask questions to pull the potential customer into the buying
process. Doing this helps a potential customer realize that they have a need that should be solved.
2. Information Search
Once a problem is recognized, the customer search process begins. They know there is an issue
and they’re looking for a solution. If it’s a new makeup foundation, they look for foundation; if
it’s a new refrigerator with all the newest technology thrown in, they start looking at refrigerators
– it’s fairly straight forward.
As a marketer, the best way to market to this need is to establish your brand or the brand of your
clients as an industry leader or expert in a specific field. Methods to consider include becoming a
Google Trusted Store or by advertising partnerships and sponsors prominently on all web
materials and collaterals.
Becoming a Google Trusted Store, like CJ Pony Parts – a leading dealer of Ford Mustang parts –
allows you to increase search rankings and to provide a sense of customer security by displaying
your status on your website.
Increasing your credibility markets to the information search process by keeps you in front of the
customer and ahead of the competition.
3. Evaluation of Alternatives
Just because you stand out among the competition doesn’t mean a customer will absolutely
purchase your product or service. In fact, now more than ever, customers want to be sure they’ve
done thorough research prior to making a purchase. Because of this, even though they may be
sure of what they want, they’ll still want to compare other options to ensure their decision is the
right one.
Marketing to this couldn’t be easier. Keep them on your site for the evaluation of alternatives
stage. Leading insurance provider Geico allows customers to compare rates with other insurance
providers all under their own website – even if the competition can offer a cheaper price. This
not only simplifies the process, it establishes a trusting customer relationship, especially during
the evaluation of alternatives stage.
4. Purchase Decision
Somewhat surprisingly, the purchase decision falls near the middle of the six stages of the
consumer buying process. At this point, the customer has explored multiple options, they
understand pricing and payment options and they are deciding whether to move forward with the
purchase or not. That’s right, at this point they could still decide to walk away.
This means it’s time to step up the game in the marketing process by providing a sense of
security while reminding customers of why they wanted to make the purchase in the first time.
At this stage, giving as much information relating to the need that was created in step one along
with why your brand, is the best provider to fulfill this need is essential.
If a customer walks away from the purchase, this is the time to bring them back. Retargeting or
simple email reminders that speak to the need for the product in question can enforce the
purchase decision, even if the opportunity seems lost. Step four is by far the most important one
in the consumer buying process. This is where profits are either made or lost.
5. Purchase
A need has been created, research has been completed and the customer has decided to make a
purchase. All the stages that lead to a conversion have been finished. However, this doesn’t mean
it’s a sure thing. A consumer could still be lost. Marketing is just as important during this stage
as during the previous.
Marketing to this stage is straightforward: keep it simple. Test your brand’s purchase process
online. Is it complicated? Are there too many steps? Is the load time too slow? Can a purchase be
completed just as simply on a mobile device as on a desktop computer? Ask these critical
questions and make adjustments. If the purchase process is too difficult, customers, and therefore
revenue, can be easily lost.
6. Post-Purchase Evaluation
Just because a purchase has been made, the process has not ended. In fact, revenues and
customer loyalty can be easily lost. After a purchase is made, it’s inevitable that the customer
must decide whether they are satisfied with the decision that was made or not. They evaluate.
If a customer feels as though an incorrect decision was made, a return could take place. This can
be mitigated by identifying the source of dissonance, and offering an exchange that is simple and
straightforward. However, even if the customer is satisfied with his or her decision to make the
purchase, whether a future purchase is made from your brand is still in question. Because of this,
sending follow-up surveys and emails that thank the customer for making a purchase are critical.
Take the time to understand the six stages of the consumer buying process. Doing this ensures
that your marketing strategy addresses each stage and leads to higher conversions and long-term
customer loyalty.
Modern Consumer Behavior (from the perspective of developing nations)

Nowadays, consumerism is an understanding that serve as a lifestyle that considers luxury goods
as a measure of happiness, pleasure and self-gratification. This culture can be regarded as an
example of frugal lifestyle. If this culture of consumerism has become a lifestyle, it will increase
an indicator that can never be satisfied by what we consume and make comparisons to what other
people do. Today consumers from various aspect of life have not been able to prioritize items
that they need because of following their desire too much.
Without realize, strange habit for a lot of consumers is now become a desire that need to be
fulfilled immediately, always never enough in everything, and never being content with what
they have today. Needs that included daily food, fashion, transportation, technology, housing and
so forth. Consumers always have desire to own everything because for them it is important for
their daily life.
If we are able to recall the Economic lessons when during high school or university, we will
remember a discussion about various human needs. In priority, human needs are divided into
two, namely; 1. The Primary Needs (core needs to be met), for example clothing, food and
accommodation; 2. Secondary Needs (requirement that serves as a supplement and complement
in life), for example mobile phones, laptops, and others. However, as we see that those needs
now being shifted in position between primary and secondary. People are concerned more of
their secondary needs that must be met first.
Since the development of industries in developed countries such as food, clothing,
communications, transportation and services the availability of goods and services increased
rapidly. The part that has the most important role regarding to this is the promotion through the
media, advertising and virtual world (online). In addition to the increasing number of products
and services, there are a lot of easy ways to get the things that they want. We just look at the
reality that exist today, many supermarkets, mini-markets and shopping centers (malls) are
within reach. It also created a consumption-oriented society.
The reality of what we seen today is most consumers consume something not based of its
functional aspect, but on the trend that currently developing. Concrete example is consumers
prefer shopping in a mall rather than market or store. Mostly because of discounts offered,
comfortable place and easily to get around. Another example is the consumption of more
branded communication gadgets like Apple, Blackberry, and other sophisticated android gadgets.
This modern consumer behavior that emphasizes the object as a measure of pleasure and
enjoyment will drag consumers into generation that shadowed by popularity to gain recognition,
and look at life in a narrow perspective based only on what is currently trending.
As a conclusion, the proper solution to control the development of this consumerism culture is to
make a priority on something to be consumed in order to be used effectively. Then also applies
to “independent lifestyle” to self-recognize on the advantages and disadvantages, also have a
strategy to reach the goal. With discipline to form an “independent lifestyle”, this consumerism
culture is no longer able to trap consumers. They will be free and independent to make their
choice responsibly and creating a more positive generation of consumers.
Classification of Buying Motives: Product Buying and Patronage Buying
Classification of Buying Motives: Product Buying and Patronage Buying!
Buying motive is the urge or motive to satisfy a desire or need that makes people buy goods or
services. Behind every purchase there is a buying motive.
It refers to the thoughts, feelings, emotions and instincts, which arouse in the buyers a desire to
buy an article. A buyer does not buy because s/he has been persuaded by the salesman, but s/he
buys for the aroused desire in him or her. Motives should be distinguished from instincts.
A motive is simply a reason for carrying out a particular behaviour and not an automatic
response to a stimulus, whereas instincts are pre-programmed responses, which are inborn in the
individual and involuntary. Thus hunger is an instinct whereas desire to purchase pizza is a
buying motive. According to Prof. D. J. Duncan, “Buying Motives are those influences or
considerations which provide the impulse to buy, induce action and determine choice in the
purchase of goods and services.” Buying motives are can be divided by the following way:

Product Buying Motives:

Product buying motives refer to those influences and reasons, which prompt (i.e. induce) a buyer
to choose a particular product in preference to other products. They include the physical
attraction of the product (i.e. the design, shape, dimension, size, colour, package, performance,
price etc. of the product) or the psychological attraction of the product (i.e. the enhancement of
the social prestige or status of the purchaser through its possession), desire to remove or reduce
the danger or damage to life or body of the possessor, etc. In short, they refer to all those
characteristics of a product, which induce a buyer to buy it in preference to other products.
Product buying motives may be sub-divided into two groups, viz., (1) emotional product buying
motives and (2) rational product buying motives.
A. Promotional Product Buying Motives:

When a buyer decides to purchase a product without thinking over the matter logically and
carefully (i.e., without much reasoning), she is said to have been influenced by emotional
product buying motives. Emotional product buying motives include the following:
1. Pride or Prestige:

Pride is the most common and strongest emotional buying motive. Many buyers are proud of
possessing some product (i.e., they feel that the possession of the product increases their social
prestige or status). In fact, many products are sold by the sellers by appealing to the pride
prestige of the buyers. For instance, diamond merchants sell their products by suggesting to the
buyers that the possession of diamonds increases their prestige or social status.
2. Emulation or Imitation:
Emulation, i.e., the desire to imitate others, is one of the important emotional buying motives.
For instance, a housewife may like to have a silk saree for the simple reason that all the
neighbouring housewives have silk sarees.
3. Affection:
Affection or love for others is one of the stronger emotional buying motives influencing the
purchasing decisions of the buyers. Many goods are purchased by the buyers because of their
affection or love for others. For instance, a husband may buy a costly silk saree for his wife or a
father buy a costly watch for his son or daughter out of his affection and love.
4. Comfort or desire for comfort:
Desire for comfort (i.e., comfortable living) is one of the important emotional buying motives. In
fact, many products are bought comfort. For instance, fans, refrigerators, washing machines,
cushion beds, etc. are bought by people because of their desire for comfort.
5. Sex appeal or sexual attractions:
Sex appeal is one of the important emotional buying motives of the buyers. Buyers buy and use
certain things, as they want to be attractive to the members of the opposite sex. Men and women
buy cosmetics, costly dresses, etc., because of this emotional motive, i.e., sex appeal.
6. Ambition:
Ambition is one of the emotional buying motives. Ambition refers to the desire to achieve a
definite goal. It is because of this buying motive that, sometimes, customers buy certain things.
For instance, it is the ambition that makes many people, who do not have the facilities to pursue
their college education through regular colleges, pursue their education through correspondence
courses.
7. Desire for distinctiveness or individuality:
Desire for distinctiveness, i.e., desire to be distinct from others, is one of the important emotional
buying motives. Sometimes, customers buy certain things, because they want to be in possession
of things, which are not possessed by others. Purchasing and wearing a particular type of dress
by some people is because of their desire for distinctiveness or individuality.
8. Desire for recreation or pleasure:
Desire for recreation or pleasure is also one of the emotional buying motives. For instance,
radios, musical instruments, etc. are bought by people because of their desire for recreation or
pleasure.
9. Hunger and thirst:
Hunger and thirst are also one of the important emotional buying motives. Foodstuffs, drinks,
etc. are bought by the people because of this motive.
10. Habit:
Habit is one of the emotional considerations influencing the purchasing decision of the
customers. Many customers buy a particular thing because of habit, (i.e. because they are used to
the consumption of the product). For instance, many people purchase cigarettes, liquors, etc.
because of sheer habit.
B. Rational Product Buying Motives:
When a buyer decides to buy a certain thing after careful consideration (i.e. after thinking over
the matter consciously and logically), s/he is said to have been influenced by rational product
buying motives. Rational product buying motives include the following:
1. Safety or Security:
Desire for safety or security is an important rational buying motive influencing many purchases.
For instance, iron safes or safety lockers are bought by the people because they want to
safeguard their cash, jewelries etc., against theft. Similarly, vitamin tablets, tonics, medicines,
etc., are bought by the people because of this motive, i.e. they want to safeguard their health and
protect themselves against diseases.
2. Economy:
Economy, i.e. saving in operating costs, is one of the important rational buying motives. For
instance, Hero Honda bikes are preferred by the people because of the economy or saving in the
operating cost, i.e. petrol costs.
3. Relatively low price:
Relatively low price is one of the rational buying motives. Most of the buyers compare the prices
of competing products and buy things, which are relatively cheaper.
4. Suitability:
Suitability of the products for the needs is one of the rational buying motives. Intelligent buyers
consider the suitability of the products before buying them. For instance, a buyer, who has a
small dining room, naturally, goes in for a small dining table that is suitable, i.e. that fits in well
in the small dining room.
5. Utility or versatility:
Versatility or the utility of a product refers to that quality of the product, which makes it suitable
for a variety of uses. Utility of the product is one of the important rational buying motives.
People, often, purchase things that have utility, i.e. that can be put to varied uses.
6. Durability of the product:
Durability of the product is one of the most important rational buying motives. Many products
are bought by the people only on the basis of their durability. For instance, buyers of wooden
furniture go in for teak or rosewood table, though they are costlier, as they are more durable than
ordinary wooden furniture.
7. Convenience of the product:
The convenience of the product (i.e. the convenience the product offers to the buyers) is one of
the important rational product buying motives. Many products are bought by the people because
they are more convenient to them. For instance, automatic watches, gas stoves, etc., are bought
by the people because of the convenience provided by them.

Patronage Buying Motives:

Patronage buying motives refer to those considerations or reasons, which prompt a buyer to buy
the product wanted by him from a particular shop in preference to other shops. In other words,
they are those considerations or reasons, which make a buyer, patronise a particular shop in
preference to other shops while buying a product.
Patronage buying motives also may be sub-divided into two groups viz. a) Emotional patronage
buying motives and b) Rational patronage buying motives.
A. Emotional Patronage Buying Motives:
When a buyer patronises a shop (i.e. purchases the things required by him from a particular shop)
without applying his mind or without reasoning, he is said to have been influenced by emotional
patronage buying motives. Emotional patronage buying motives include the following:
1. Appearance of the shop:
Appearance of the shop is one of the important emotional patronage buying motives. Some
people make their purchases from a particular shop because of good or attractive appearance of
the shop,
2. Display of goods in the shop:
Attractive display of goods in the shop also makes the buyers patronise a particular shop.
3. Recommendation of others:
Recommendation of others also constitutes one of the important emotional patronage buying
motives. Some people purchase their requirements from a particular shop because that shop has
been recommended to them by others, i.e., by their friends and relatives.
4. Imitation:
Imitation also is one of the emotional patronage buying motives influencing the purchases of
buyers. Some people make their purchases from a particular shop just because other people make
their purchases from that shop.
5. Prestige:
Prestige is one of the emotional patronage buying motives of the buyers. For instance, some
people consider it a prestige to take coffee from a five-star hotel.
6. Habit:
Habit is also one of the important emotional patronage buying motives. Some people make their
purchases from a particular shop for the simple reason that they have been habitually making
their purchases from that shop.
B. Rational Patronage Buying Motives:
When a buyer patronises a shop after careful consideration (i.e. after much logical reasoning and
careful thinking) he is said to have been influenced by rational patronage buying motives.
Rational patronage buying motives include the following:
1. Convenience:
Convenient location proximity of a shop is one of the considerations influencing the purchases of
many buyers from a particular shop. Many buyers, usually, buy their requirements from a near-
by shop, as it is convenient to them to make their purchases.
Similarly, convenient working hours of the shop also influence the purchases of good many
buyers. For instance, if a shop works for a longer period of time every day and even on Sundays,
it will be very convenient to the buyers. As such, many buyers may make their purchases from
such a shop.
2. Low price charged by the shop:
Price charged by the shop also influences the buyers to patronise a particular shop. If the price
charged by a shop for a particular product is relatively cheaper, naturally, many people will make
their purchases from that shop.
3. Credit facilities offered:
The credit facilities offered by a store also influence the buying of some people from a particular
shop. People who do not have enough money to make cash purchases every time prefer to make
their purchases from a shop which offers credit facilities.
4. Services offered:
The various sales and after-sale services, such as acceptance of orders through phone, home
delivery of goods, repair service, etc., offered by a shop also induce the buyers to buy their
requirements from that shop. Rational buyers are, often, influenced by the various services or
facilities offered by the shop.
5. Efficiency of salesmen:
The efficiency of the salesmen employed by a shop also influences the people in patronising a
particular shop. If the employees are efficient and are capable of helping the buyers in making
their purchases, people naturally would flock to such a shop.
6. Wide choice:
Wide choice of goods offered by a shop is one of the rational considerations making the buyers
patronise a particular shop. People generally prefer to make their purchases from a shop, which
offers wide choice (i.e. wide varieties of goods).
7. Treatment:
The treatment meted out by a shop to the customers is one of the rational considerations
influencing the buyers to patronise a particular shop. Usually, people would like to purchase their
requirements from a shop where they get courteous treatment.
8. Reputation of the shop:
Reputation of the shop for honest dealings is also one of the rational patronage buying motives.
Usually, people would like to make their purchases from a store having reputation for fair
dealings.