CONSUMER BEHAVIOR

Definition

• Consumer Behaviour is defined as the activities that people undertake when

obtaining, consuming and disposing of products and services

• The behaviour that the customers display in searching for, purchasing, using,
evaluating, disposing of products and services that they expect will satisfy their needs

- Schiffman and Kanuk

• A process of understanding why a consumer makes a purchase, when he buys it,

where does he buy the products and the frequency of the purchase. Thus, it helps us
understand the Why, When, Where and how often of a purchase decision.

Need for studying consumer behaviour

• To understand the psychology of the consumers

• To design the optimal product or service for consumers

• To understand and predict the buying behaviour of consumers in the market place

• Identify the factors that influence consumer’s buying decision

• Enable company to market more effectively by understanding consumer

Nature and scope of marketing

• Cognitive process

• Interdisciplinary

• Psychological perspective

• Continuous process

• Dynamic and Interactive

• Science as well as an art

Stages of consumer decision making process

Stage 1: Need recognition and awareness in this stage. the consumer identifies and becomes
aware of the need or problem. (Example: lam tired, lam hungry, i need a bike).

Stage 2: Information search: Here, the consumer starts searching for information for
providing a solution for the need or problem identified and responds to creative advertising
messages that stimulate consumers to recognize that their current state . For example if you
are hungry if passing by Dominos Pizza outlet you get attracted by their posters,
advertisement. The intensity of the search depends on whether the purchase is important to
the consumer or not. Incase of Routine Purchase a consumer may not spend time on
searching for information, however in Non-Routine Purchase spend a lot of time information
search.

Stage 3: Evaluate alternatives: In this stage the consumer evaluates each alternative solution
(Product) based on comparison with competing product alternatives, product attributes, such
as technical specifications, through subjective factors, such as brands, and through personal
experience, such as sampling. After this it’s decision time.

stage 4: Purchase Decision: in this stage, consumer decides on product to purchases and
executes purchase, for this the consumer evaluates where to buy, when to buy and makes the
purchase. Incase of routine purchases such as groceries, consumers may just opt for favourite
store, but for non-routine purchases, consumers may browse multiple stores or the consumer
may postpone the purchase until a satisfactory opportunity presents itself.

stage 5: Post Purchase Decision: In this stage, the consumer mentally evaluates purchase, if
product meets expectations, consumer feels satisfied and 1f expectation is not, met consumer
may suffer anxiety or regret. This evaluation decides whether the customer will purchase the
product or brand again or not.