Study of consumer behavior, a vital part of marketing – as marketing aims to meet the needs and wants of the consumer

‘Give the Consumer what she/he wants’ – serves as the evergreen dictum for smart marketing In mass marketing understanding what each individual requires is not possible. How does the consumer make the value selection and goes for a particular Brand. Lot of research done on the Psychological process that guides consumer behavior. E.g. The value buyer seeks in a Car – Functional value, Social value, Status value, Economic value

Consumer Characteristics
Psychological process Underlying Buyer behavior

Buying Habits Buying Motives
Stages in Buying process Participants & roles


Personal Demographics b. Cultural b. Social Groups/Personal Groups . Personal Factors a. Personal Psychographics Socio Cultural Factors a. 2.1.

Age. Gender Selfconcept Lifestyle Values Personality Life cycle stage Occupation Income .

) . an upper middle class may go for Tetley from a high end retail store. Occupation. Education. Income related example – Tea (A buyer from a low income group may buy an unbranded local product from a ration shop. His Personal Bio Data. lower middle class – low priced A1 tea from a Kirana shop. Gender.   Includes Age. Stage in Life Cycle. decides what & where he will buy. Economic Position etc. middle class – reasonable good brand from Margin free chain.

clothes etc. watches. clothes etc Occupation –Formal Clothes may be purchased according to the occupation. Age – Preference of TV channels. Magazines etc .   Gender– Men and women differ in their preference of perfume / Deodorant.


likes to be alone).g. • Difficult to understand. Dress. Personality: Extrovert (impulsive. • . environment. etc which impact buying behavior. Determinants of personality are heredity. Jewelry purchase will be affected by life style factors. Club. self concept. Aggressive individuals (like to attract attention by using specific brands ) and Detached individuals (no particular pattern). Lifestyle. value system. Pace of life e. and situations 2. Introvert (slow in taking decisions. 1. Status & material prosperity. easily swayed by friends and peer opinions). Compliance individuals (prefer known brands and like to conform to accepted norms) . Hotel.Individuals may differ based on Personality. Life Style: Life Aspirations.

Self Concept – How we view ourselves.3. . 4. A housewife may hesitate buying readymade curries because it may be inconsistent with her concept of herself being a hardworking housewife. material comfort.S is exposed to the following values: freedom. respect for elders. humanitarianism etc. collectivism etc. A social worker may choose khadi clothes. Values – A child growing up in U. A child growing up in India is exposed to integrity. Consumers choose brands that are consistent to their self concept.

Multi-tasking Time-starved Money-constrained .

Caste. festivals etc. Influences buying behavior deeply. Specially in the rural areas. Cultural diversity operates in dress. Tradition etc. Culture influences Individual’s life style. sub sect) influences the individual more deeply. marriage practices. Subculture (caste. Culture includes religion. Language. .• • • • • • Cultural Factors: Acquired mostly in the Childhood. eating habits.

middle class  . at office. Upper class.Man is influenced by the society and he influences the Society. as a part of a professional group etc. Large Social Class .  Performs different Roles – in the family. Primary group(Intimate Group) – family. Secondary Group – Religious. neighbors 2.  A person’s reference group are all the groups that have a direct or indirect effect on his behavior Three Consumer Reference Groups 1. friends.Working class. professional groups 3.

. Similar buying behavior. close colleagues. 3. Intimate Group: Family (family of orientation and family of procreation). 2. Place of Residence. Peer Group. Deep influence. Larger Social Class: Influence of Income Class. Secondary Group: Larger & less intimate. Club etc. Occupation. Area etc. Occupation. face to face & Frequent interaction. friends. May exhibit similar buying habits.1. Professional group. Position.

Church priests etc. and involved with the particular product category. socially active. identifying the media they read and directing messages at them Every group has opinion leaders example -Village leaders.     An opinion leader are influential members of a group to whom others turn for advice regarding specific products. They are highly confident. Opinion leaders play a special role in rural marketing . Marketers try to reach out to the opinion leaders by identifying their demographic and psychographic characteristics.

Consumer decision is in response to some stimulus. including -Motivation (Springs from his motives) -Perception (his interpretation) -Learning (what he understands) -Memory (Stays in his mind) . • Psychological Process pertaining to decision making.

Motivation Perception Learning Memory .

Freud’s Theory Behavior is guided by subconscious motivations Maslow’s Hierarchy of Needs Behavior is driven by the lowest. unmet need Herzberg’s Two-Factor Theory Behavior is guided by motivating and hygiene factors .


People are selective in 3 aspects with respect to perception.g. an average person is exposed to about 1500 brand communications) . organizes and interprets stimuli into meaningful pictures Buyer makes sense out of the information she receives.Selective in Attention (voluntary and involuntary attention.Selective in Retention  . Her perception is more important than the reality Perception is defined as the process by which an individual selects. . feedback from friends etc.• • • • A motivated person is ready to act – next comes how the consumer views the market place. E.Selective in Distortion (tendency to interpret the information in a way that suits our preconceptions) . House – the information coming from builder. upcoming projects.

. Marketer has a great role to play.  Learning – Individuals acquire the product and consumption knowledge and experience that they apply to future purchase behavior.

Catchy & Repeat messages.   All info gets deposited and comes as a flash back with the stimuli. . Lot of research done by marketers.

 How.Shopping Goods . The types of consumer goods purchased .Specialty Goods .Convenience Goods . when and where do they buy.

Considerable expenditure. Jewelry. Shopping goods: Not required so frequently. Specialty goods: High Priced e. Recurring need. Club Membership etc. Substitute brand is possible. Many outlets. Customer gives lot more thought and time. Very limited outlets. Selective distribution and Showrooms. Limited outlets. Shoes.• • • Convenience goods: Purchased often as a routine. Example – Bread. electrical appliances. No planning involved. milk. mostly direct.g. Entire family may be involved in decision making . tea powder etc. Clothes. cars.

Empty nesters prefer convenience of home delivery / direct marketing  . They shop at many outlets to get the best bargains.Store Loyals – shop at the same outlet most of the time  Store Switchers – shop at different stores  Cherry Pickers – extremely price sensitive. they are out and out for saving money.

2. 7. Bike or a house (or college selection). 3.1. Individual buyer and buying situation.g. . 6. Problem Recognition (Need) Awareness (Information Search) Comprehension (evaluate the alternatives) Attitude (favorable or unfavorable) Legitimization (actually go for it or not) Trial Adoption (Purchase decision) Post Purchase decision (restlessness) e. This model works more for high volume purchase. which is more complex. 4. 8. 5.


     Innovators Early Adaptors Early Majority Late Majority Laggards .

Late Majority – 34% of the market. Moderate risk takers. loyal to existing brands. Shift to new product after taking the opinion of innovators and early adopters. Very conservative. Early Majority – comprise of 34% of the total market.5% of the total market. Have same characteristics as the innovators and are price insensitive. Laggards – Constitute 16% of the market.     Innovators – constitute 2. . Buy the new products when price comes down. Early adopters – Constitute 13. Conservative and slow decision makers.5% of the market. High risk taking individuals and opinion leaders.

Initiators  Influencers  Deciders  Payer  Users Role of tweens as influencers has become prominent in household purchases  .

 1. 2. 1. Product Motives Emotional product motives Rational product motives Patronage motives Emotional patronage motives Rational patronage motives . 2.

.      What are the personal demographic and psychographic factors which affect a consumers buying behavior? What are the consumer reference groups? Who is an opinion leader? What are the types of consumer goods? What are the stages that consumer goes through in buying decisions? List the consumer behavior types as far as adopting new products is concerned.

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