Consumer Behavior

MUGHERA SUHAIL
 Consumer Behavior
Consumer is a broad label that refers to any individual or household that use goods and
services generated within the economy. A consumer is a person who uses any product and
service.
Consumer behavior is the study of how individual customers, groups or organizations select,
buy, use, and dispose products and services to satisfy their needs and desires.
Marketers expect that by understanding what causes the consumers to buy particular goods
and services, they will be able to determine:
which products are needed in the marketplace,
which are obsolete,
and how best to present the goods to the consumers.
Consumption Process
Consumption process is a buying journey of a consumer. It is a process of buying products and
using services. It can well be explained with AIDA model i.e. awareness, interest, Desire and
action
Awareness: The consumer becomes aware of a category, product or brand (usually through
advertising)
Interest: The consumer becomes interested by learning about brand benefits & how the brand
fits with lifestyle
Desire: The consumer develops a favorable disposition towards the brand
Action: The consumer forms a purchase intention, shops around, engages in trial or makes a
purchase
Stages of Consumption process
1. Pre-encounter
 Problem/Need Recognition
 Information Search(Internal & External factors)
2. Encounter
 Evaluation of Alternatives
 Purchase Decision
 Purchase
3. Post encounter
 Post Purchase Evaluation
Consumption Process and digital
marketing
These days in the era of digital marketing, the process of consumption has changed beyond all recognition. User behavior

has been streamlined and today’s business model is a much briefer one than in the past. Now, when a consumer decides

they need a product, they can surf the internet immediately, find exactly what they need virtually instantly and make a

snap purchasing decision. Researching online takes a matter of minutes or hours rather than days trawling around stores

and calling suppliers. Reviews are right there at the consumer’s fingertips and product demos can be viewed immediately

before making any purchasing decision. This accessibility has had a major impact on the standard business model. It no

longer follows a linear and traditional path. It has become a moving target that has digital marketing right at its heart.
Effect of Digital Marketing on Consumer
Behavior
1. Consumers have become researchers

2. Digital word of mouth is trusted the most

3. Consumers are not afraid to experiment

4. Consumers frequently switch brands

5. Consumers now have a lower tolerance level
Psychological Factors Influencing CB
Psychological Factors Influencing CB
Motivation:

When a person is motivated enough, it influences the buying behavior of the person. A person has many
needs such as the social needs, basic needs, security needs, esteem needs and self-actualization needs.
Out of all these needs, the basic needs and security needs take a position above all other needs. Hence
basic needs and security needs have the power to motivate a consumer to buy products and services.
Perception:

Consumer perception is a major factor that influences consumer behavior. Customer perception is a
process where a customer collects information about a product and interprets the information to make a
meaningful image about a particular product. When a customer sees advertisements, promotions,
customer reviews, social media feedback, etc. relating to a product, they develop an impression about the
product. Hence consumer perception becomes a great influence buying decision of consumers. Learning
can be either conditional or cognitive.
Psychological Factors Influencing CB
 Learning:

Learning comes only through experience. An individual comes to know about a product and service only
after he/she uses the same. An individual who is satisfied with a particular product/service will show a
strong inclination towards buying the same product again.

Beliefs and Attitude:

Beliefs and attitude play an essential role in influencing the buying decision of consumers. Individuals
create a certain image of every product or service available in the market. Every brand has an image
attached to it, also called its brand image. Consumers purchase products/services based on their opinions
which they form towards a particular product or service. A product might be really good but if the
consumer feels it is useless, he would never buy it.
Issues in consumer
behavior regarding
Psychology
Scarcity :Brands and retailers
use scarcity to capitalize on the fear of
shortage.

This strategy can involve a company

like Amazon displaying only two or
three products remaining in stock for a
listing. Other companies may use
artificial scarcity.

Psychologists generally consider

scarcity to be a powerful motivator for
consumers. 

Scarcity polarizes people’s preferences

and causes them to become less
exploratory. Instead, consumers focus
on their leading option.
Issues in consumer
behavior regarding
Psychology
Color psychology:
Color psychology examines how hues
influence human behavior.

Using bold colors to stand out on a

website is one way to implement color
psychology and impact consumers.
Color psychology is a broad field.

It includes the meaning of certain

colors, how colors affect emotions and
applications such as contrasting dark
and bright colors.
Issues in consumer
behavior regarding
Psychology
Price anchoring :
Anchoring is a cognitive bias that
refers to consumers’ tendency to place
more importance on the first piece of
information they receive when making
decisions.

In pricing situations, marketers place

premium products and services near
standard options to help consumers
choose the best value.