CONSUMER MARKETS

&
BUYER BEHAVIOR
 CONSUMER BEHAVIOR

It refers to how individuals, groups, groups, and organization select, buy, use and dispose of goods, services, ideas, or
information to satisfy their needs and wants.

Model of Consumer Behavior

Environment Buyer’s Black Box Buyer Responses

Marketing Stimuli PESTL • Buyer’s Characteristics • Buying attitude & Preferences

4Ps • Buyer’s decision process • Purchase behavior
• Brand engagement &
relationships
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Characteristics Affecting Consumer Behavior

Cultural
Social Personal
Culture Age & Life cycle
Psychological
Group & Social
stage Motivation
Networks Perception Buying decision
Occupation Process
Subculture Economic situation Emotions
Family Lifestyle Learning
Belief & Purchase Decision
Personality & Self-
Roles & Status concept Attitudes
Social Class
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Characteristics Affecting Consumer Behavior
A culture is a way of life among a group of people- the behaviors, beliefs, values, and
Cultural symbols that they accept, generally without thinking about them and that are passed along
by communication and imitation from one generation to the next.

Individualistic or Collectivistic cultures.

Culture

Subculture It may include nationalities, religion, racial groups, geographical regions, etc.

Social Class Social Stratification based majorly on social classes across the world
In India, stratification is also based on caste.
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Characteristics Affecting Consumer Behavior

Social

Membership groups (direct), Reference groups (indirect)

Group & Social Word-of-mouth influencers
Networks Opinion leaders

They form the most influential reference groups

Family of orientation
Family
Family of procreation

Roles & Status https://www.youtube.com/watch?v=CnUe0CeRwSc

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Characteristics Affecting Consumer Behavior

Personal

Age & Life cycle stage

Occupation E.g., Levi’s Jeans started as an apparel brand for Miners who required durable cloths.

Economic situation

Based on Values (a set of principles and notions of “right and wrong”) guide behavior.
Lifestyle Lifestyle is a person’s patterns of living in the world, as expressed in activities, interests, &
opinions.
Personality & Self-concept Individual personality-product personality congruence.
Self-monitoring (E..g., Green Products)
https://www.youtube.com/watch?v=DUyyS2rjpJY
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Characteristics Affecting Consumer Behavior

Psychological
Motivation has two components
Direction (Select one goal over another)
Motivation Intensity (Pursue the chosen goal with more or less vigor)

Perception In-depth interviews to uncover deeper motives triggered

by a product. This is done based on Projective Techniques
Emotions

Learning

Belief &
Attitudes
This ad for Toyota appeals to security by promoting safety.
This ad for Jaguar appeals to self-actualization by advertising its car as the ideal.
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Characteristics Affecting Consumer Behavior

Psychological Perception
The process by which we select, organize, and interpret information inputs
Motivation
to create a meaningful picture of the world

Factors That Influence Perception

Perception

Perceiver: Personal Characteristics like personality, motives, experiences,

or expectations.
Emotions
Target: Characteristics of target, and its surroundings.

Situation: Time at which an object or event is seen can influence

Learning
perception, as can location
Light, heat, color, and any number of external factors.

Belief &
Attitudes
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Characteristics Affecting Consumer Behavior

Psychological Perception

Motivation
Selective exposure: Consumers choose whether or not to make themselves available to information.

Perception Selective attention: Consumers choose to focus attention on certain stimuli and not others.

Selective comprehension: Consumers interpret information on basis of own attitudes, beliefs, motives,
Emotions
and experiences.

Selective retention: Consumers do not remember all information they see, hear, or read even after
Learning
attending to and comprehending it. Mnemonics: Symbols, rhymes, associations, and images that assist in

Belief & the learning and memory process.

Attitudes
Selective Distortion: Tendency to interpret information to fit our preconceptions.
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Characteristics Affecting Consumer Behavior

Psychological Emotions are mental states that arise spontaneously rather than from conscious efforts and reflect
people’s positive or negative reactions to internal and external stimuli.
Motivation
Consumer responses is not all cognitive and rational.
A product may evoke pride, excitement, or confidence.

Perception Emotion-filled brand story leads to more word of mouth

https://www.youtube.com/watch?v=Frs_iFcmDgc

Emotions Nostalgic or Retro Marketing

https://www.youtube.com/watch?v=H38vEGT0aMc

Learning Emotional states can influence people’s judgment and decisions.

Belief &
Attitudes
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Characteristics Affecting Consumer Behavior
Memory- The brain’s ability to record, store, and retrieve information and event.
Psychological

Motivation Memory models

Short-term memory—a temporary and limited repository of information
Perception Long-term memory—a more permanent, essentially unlimited repository
Episodic memory (autobiographical- place, time, & associated emotion in which past)

Emotions Semantic memory (Factual, meanings, and concepts)

Procedural memory (record of how to perform certain procedures)
Memory Associative network memory model
Brand associations—all brand-related thoughts, feelings, perceptions, images, experiences,
Learning beliefs, attitudes that become linked to the brand node
Memory processes

Belief & Memory encoding—how and where information gets into memory
Attitudes
Memory retrieval—the way information gets out of memory
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Characteristics Affecting Consumer Behavior

Psychological Learning is the change in individual’s behavior arising from experience.

Motivation
Beliefs: The descriptive though that a person holds about something.

Perception
Attitudes: Learned predispositions (evaluation, feelings, & tendencies) to respond to an object.

Emotions

Memory

Learning

Belief &
Attitudes