Consumer Behaviour


The aim of marketing is to meet and satisfy target customers’ needs and wants better than competitors. “Consumer behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants”. Gaining a thorough in-depth consumer understanding helps to make sure that the right products are marketed to the right consumers in the right way.

Model of Buying Behavior
Marketing stimuli Other stimuli Buyer’s characteristics Buyer’s decision process

Product Price Place Promotion

Economic Technology

Cultural Social Personal Psychological

Problem recognition Information search Evaluation Decision Post purchase behavior

Buyer’s decisions

Product choice Brand choice Dealer choice Purchase timing Purchase amount

Characteristics Affecting Consumer Behavior
CULTURAL Culture Subculture Social Class SOCIAL Reference Groups Family Roles & Status PERSONAL Age Occupation Economic Situation Lifestyle Personality

Motivation Perception Learning Beliefs & Attitude


Culture Subculture Social Class


 Culture is the basic values, perceptions, wants

& behaviors learned by a member of society from family &other important institutions . E.g. An American bride wears a white dress on her wedding while a white dress is worn on occasion of mourning in India.  Subculture : A group of people with shared value systems based on common life experiences & situations. Subcultures include nationalities, religions, racial groups &geographic regions. E.g. Punjabi, Bengali, Marathi.  Social Class: Relatively permanent &ordered divisions in a society whose members share similar values, interests & behavior. Determined by income, occupation, education, wealth & other variables. Social classes show distinct product & brand preferences in areas such as clothing, home furnishing, leisure

Social Factors
Reference Groups Family Roles & Statuses

Social Factors In addition to cultural factors, a consumer’s behavior is influenced by such social factors as reference groups, family, and social roles and statuses. A person’s reference groups consists of all the groups that have a direct (face-toface) or indirect influence on his/her attitudes or behavior. Groups having a direct influence on a person are called membership groups.
•Some memberships groups are primary groups such as family, friends, neighbors, and co-workers with whom the person interacts fairly continuously and informally. •Some membership groups are secondary groups such as religious, professional groups that tend to be more formal.

Influences on Consumer Behavior

Personal Influences
Age and Family Life Cycle Stage Lifestyle

Occupation & Economic Circumstances

Personality & Self-Concept

Age & Life Cycle

Stage: tastes in food, clothing, furniture & recreation are age related. Buying is also shaped by stage of the family life cycle. E.g. Gen Y ( under 25), Young Professionals, (25 to 34), Families (35 to 54).

Psychological Factors
Motivation Beliefs & Attitudes Perception Learning

Problem recognition Information search Evaluation of alternatives Purchase decision Post purchase behavior Purchase product