The purpose of a business is to create a customer.
Peter Drucker

The purpose of business is to create and keep a customer.
Peter Drucker

In the factory we make cosmetics; in the drugstore we sell hope. - Charles Revson No theater could sanely flourish until there was an umbilical connection between what was happening on the stage and what was happening in the world. - Kenneth Tynan

Consumer Behavior

What products do consumers buy? What Brand do they buy? Why do they buy it? Where do they buy? How often do they buy it?

Consumer Behavior - Definitions

Process a person goes thru when purchasing and using products and services, including the mental and social processes that precede and follow these actions. It not only involves specific actions taken by individuals when buying and using products and services, ---but also all the social and psychological factors that affect the same.

Consumer Behavior Definitions  American Marketing Associations (AMA)

Consumer behavior is the dynamic interactions between affect and cognition, behavior and the environment by which human beings conduct the exchange aspects of their lives. CB is Dynamic Involves interactions Its about Exchanges.

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Response Hierarchy Model
Different Stages Cognitive Stage Affective Stage AIDA Model Attention Hierarchy of Effects Model Awareness Knowledge Liking Awareness Interest Innovation – Adoption model Communications Model Exposure Reception Cognitive response Interest Attitude Intention

Desire Behavior Stage Action

Preference Purchase

Evaluation Trial



Consumer Behavior Is Dynamic  Because the thinking, feelings and actions of

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individual consumers, targeted consumer groups and society at large are constantly changing. Consumers and their environments are constantly changing. Internet has changed the way people search for information, products and services. PLC’s have shortened. Companies will have to constantly innovate.

C B Involves Interactions

Interactions among people’s thinking, feelings and actions and the environment. Thus marketers need to understand what products and services mean to customers, what consumers do to purchase them & use them and what influences, shopping, purchase and consumption. Knowledge about how these interactions individuals / target markets will help marketers to better satisfy them.

CB involves Exchanges

People give up something of value to others and receive something in return. Mostly involves people giving up something of value to obtain products and services. This is the exchange between buyers and sellers. Role of marketing in society is to help create exchanges between buyers (consumers) and sellers (marketers).

Approaches To Study Of Consumer Behavior
APPROACHES DOMAINS OBJECTIVES Understanding consumption and its meaning Explain consumer decision making behavior

Interpretative Anthropology Psychology Sociology Economics Statistics

Depth Interviews Focus Groups


Experiments Surveys
Math modeling Simulation

(as a) Science


Predict Consumer choice & behavior

Factors Influencing C.B.
Cultural Culture Sub Culture Social Class Social Reference Groups Family Role & Status


Psychological Motivation Learning Perception Attitudes

Age & Life Cycle Stage Occupation Life Style Personality & self concept Economic Circumstances

Low Few Buyer Involvement High

Habitual Buying Behavior
Significant Differences Between Brands

Dissonance Reducing Buying Behavior

Variety seeking Buying Behavior

Complex Buying Behavior

Five Buying Roles
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Initiator Influencer Decider / Payer Buyer User

Stimulus-Response Model of Buyer Behavior
External Stimuli The Buyer’s Black Box Environmental factors Economic Social Political Technological Marketing factors Product Price Advertising Distribution Input Cultural Social Personal Buy Decision Product Brand Dealer Quantity Purchase Timing Output Psychological Buyer Characteristics Buyer Decision Process Problem recognition Information search Evaluation Decision Post Purchase Behavior


Experiences and Acquisitions External Influences
Culture Subculture Demographics Social Status Reference Groups Family Marketing Activities

Decision process
Problem Recognition Self-Concept And Lifestyle Information Search
Needs Desires

Internal Influences
Perception Learning Memory Motives Personality Emotions Attitudes

Alternative Evaluation And Selection Outlet Selection And Purchase Postpurchase Processes

Experiences and Acquisitions

Sub - culture Culture
Information processing

Motivation & Involvement

Problem recognition Information Search Evaluation

Learning & memory

Social Class

Personal Influences

Buying Process Post Buy Behavior.
Personality & Self concept

Reference Groups


Consumer move from Total Set
Total Set
Awareness Set Consideration set Choice Set Buying Decision