Karthigai Prakasam.

C Lecturer In management, New Horizon College, Outer Ring Road, Near Marathahalii, Bangalore-560087

CONSUMER BEHAVIOR
DIMENSIONS OF CONSUMER BEHAVIOR

CONSUMER BEHAVIOUR
Definition ³The process whereby individuals decide whether, what , when, where, how and from whom to purchase goods and services´ Prof. Walter C.G and Prof Paul G.W ³The behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of, it products and services that they will satisfy their needs.´ Leon G.Schiffman and Lesile lazar kanuk

CONSUMER BUYING PROCESS
Steps in buying process : 1. Need recognition 2. Information Search 3. Evaluation and Intention 4. Purchase Decision 5. Post ²Purchase reaction

DETERMINANTS OF CONSUMER BEHAVIOUR
1. Economic Determinants : a. Personal income b. Family income c. Consumer Income expectations d. Consumer liquid assets e. Consumer credit f. The level of standard of living

2. Psychological Determinants : a. Motivation b. Perception c. Learning d. Attitude e. Personality

3. Sociological Determinants: a. Family b. Reference Groups c. Opinion Leaders d. Social class and caste e. Culture

BUYING MOTIVES
A Buying motive is the reason why a person buys a particular product. ³ A motive is a drive or an urge for which an individual seeks satisfaction ; it becomes a buying motive when the individual seeks satisfaction through the purchase of something .´ Prof. William Stanton . ³ Buying motives are those influences or considerations which help the in getting on to satisfaction.´ Mr. D. J. Durian

CLASSIFICATION OF BUYING MOTIVES
1. Innate and Acquired Motive 2. Primary and Secondary Motive 3. Conscious and Dormant motive 4. Physical and Psychological Motive 5. Positive and Negative Motive 6. Product and patronage Motive 7. Rational and Emotional Motive

BUYING MOTIVES
BUYING MOTIVES

PRODUCT MOTIVES

PATRONAGE MOTIVES

EMOTION AL

RATION AL

EMOTION AL

RATIONA L

PRODUCT MOTIVES
1. Product Emotional Buying Motives: 1. Pride 2. Vanity 3. Jealousy 4. Fashion or Imitation 5. Sex 6. Habits 7. Love and Affection 8. Comfort 9. Aesthetic Pleasure 10. Praise

2. Product Rational Motives : 1. Safety or Fear 2. Suitability 3. Durability 4. Economy 5. Convenience 6. Versatility 7. Profit or Cupidity 8. Curiosity 9. Recreation 10. Hobbies

PATRONAGE MOTIVES
1. Patronage Emotional Motives : 1. Appearance of the store 2. Recommendation of friends and relatives 3. Imitation 4. Prestige 5. Habit 2. Patronage Rational Motives 1. Proximity 2. Widest Assortment 3. Credit Facilities 4. Treatment 5. Services Offered

CONSUMER BEHAVIOR 
Consumer behavior is the study of how

people buy, what they buy, when they buy and why they buy. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants.

STAGES OF THE CONSUMER BUYING PROCESS
Consumer buying decision process includes six stages. They are:  Problem Recognition  Information Search  Evaluation of alternatives  Purchase Decision  Purchase  Post-Purchase Evaluation

1. PROBLEM RECOGNITION 

Difference between the desired state and the actual condition.

Example: By seeing a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. Hunger stimulates your need to eat.

2. INFORMATION SEARCH 
Internal Search:

--- Memory  External Search: --- Friends and Relatives A successful information search leaves a buyer with possible alternatives, the evoked set. Example: Hungry, want to go out and eat, evoked set is Chinese food Indian food Burger king

3. EVALUATION OF ALTERNATIVES 
Need to establish criteria for evaluation,

features the buyer wants or does not want.  Rank/weight alternatives. Example: If you want to eat something spicy, then Indian food gets the highest rank etc«

4. PURCHASE DECISION

:

Choose buying alternative, includes product, package, store, method of purchase etc. 5. PURCHASE : May differ from decision, time lapse between purchase decision and the actual purchase, product availability.

6. POST-PURCHASE EVALUATION It is the outcome Satisfaction or Dissatisfaction. This can be reduced by warranties, after sales communication etc. Example: After eating an Indian meal, you may think that really you wanted a Chinese meal instead.

:

TYPES OF CONSUMER BUYING BEHAVIOR : There are four types of consumer buying behavior, they are :  Routine Response/Programmed Behavior  Limited Decision Making  Extensive Decision Making  Impulse buying

1. ROUTINE RESPONSE / PROGRAMMED BEHAVIOR
Buying low involvement, frequently purchased, low cost items. Examples : Soft drinks, snack foods, milk etc.

2. LIMITED DECISION MAKING 
Buying product occasionally.  That is when you need to obtain information

about unfamiliar brand in a familiar product category. Example: Clothes--know product class but not the brand.

3.EXTENSIVE DECISION MAKING :
Complex high involvement, unfamiliar, expensive and infrequently bought products. Spend a lot of time seeking information and deciding. High degree of risk. Example: Cars, homes, computers, education.

4. IMPULSE BUYING :
No conscious planning.
The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.

Consumer Behaviour Models
y The Economic Model y The Learning Model y The Psycho-analytical Model y The sociological Model y The Howard-Sheth Model

The buyer is analysed here as a system with stimuli as the input into the system, and behaviour as the output of the system. In between the inputs and outputs there are variables affecting perception and learning

Howard-Sheth Model of Consumer Behavior
Product Price Place Promotion

Marketing and Other Stimuli

Economic Technological Political Cultural

Buyer¶s Decision Process

Buyer¶s Black Box

Characteristics Affecting Consumer Behavior

Product Choice Brand Choice Dealer Choice

Buyer¶s Response

Purchase Timing Purchase Amount

Let¶s study the Buyer¶s Black Box

Characteristics Affecting Consumer Behavior
Culture Social Personal Psychological

Buyer

Factors Affecting Consumer Behavior: Culture
y Most basic cause of a person's wants and behavior. y Values y Perceptions
Subculture
‡ Groups of people with shared value systems based on common life experiences. ‡ Hispanic Consumers ‡ African American Consumers ‡ Asian American Consumers ‡ Mature Consumers

Social Class
‡ People within a social class tend to exhibit similar buying behavior.

‡ Occupation
‡ Income ‡ Education ‡ Wealth

Factors Affecting Consumer Behavior: Social
Groups Membership ‡Reference

Family ‡Husband, wife, kids ‡Influencer, buyer, user

Social Factors

Roles and Status

Factors Affecting Consumer Behavior : Personal
Personal Influences
Age and Family Life Cycle Stage Economic Situation Occupation

Personality & Self-Concept

Lifestyle Identification
Activities Interests Opinions

Factors Affecting Consumer Behavior: Psychological
Motivation

Beliefs and Attitudes

Psychological Factors

Perception

Learning

Maslow¶s Hierarchy of Needs
Self Actualization

(Self-development)
Esteem Needs (self-esteem, status) Social Needs

(sense of belonging, love)
Safety Needs

(security, protection)
Physiological Needs

(hunger, thirst)

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