Consumer Behaviour (CB) CB is defined as the behaviour that consumer display in “searching for, purchasing, using, evaluating and disposing

of products and services that they expect will satisfy their needs. CB focuses on now individuals make decisions to spend their available resources (time, money, effort) on consumption related items. That includes: •What they buy •Where they buy •Why they buy •When they buy it •How often they buy •How often they use it •How they evaluate it after the purchase •Impact of these evaluations on future purchase •How they dispose of it CB describes two different kinds of consuming entities: •Personal consumer •Organizational consumer (project & non project org. govt. agenties institutions i.e. school, hospitals, prisons etc.)

Demographics– are statistics that measure observable aspects of a population such as birthrate, age, gender, income etc. one of the most important segment for the marketer. Lifestyle and Psychographic Segmentation– Lifestyle is basically now a person lives. It is now one enacts his/her self concept. It is determined by the persons past experiences, innate characteristics and current situations. Psycho (mental) Graphic (profiling) may be viewed as the method of defining lifestyle in measurable terms. It is the systematic use of relevant activity, interest and opinion constructs to quantitatively explore and explain the communicating, purchasing and consuming behaviours of persons for brands, products and cluster of products. Psychographic (including lifestyles) and demographic profiles are highly complementary approaches that work best when used together. By combining the knowledge marketers are provided with powerful information about tgt segment. Lifestyle Marketing– Lifestyle frequently provides the basic motivation and guidelines for purchases, although it does so in an indirect and subtle manner.

Lifestyle and the consumption process Lifestyle Determinants • Demographics • Subculture • Social class • Motives • Personality • Emotions • Values • Household life cycle • Culture • Past experience Lifestyle How we live • Activities • Interests • Likes/Dislikes • Attitudes • Consumptions • Expectations • Feelings Impact on Behaviour Purchases • How • When • Where • What • With whom Consumption • Where • With whom • How • When • What .

g. ideas. The Technique of Lifestyle Segmentation– Lifestyle segmentation measure (i) how people spend their time engaging in activities (ii) what is of most interest/important to them in their immediate surroundings (iii) their opinion and views about themselves and world around them (AIOS). • Values – Widely held beliefs about what is acceptable/desirable. sports. • Activities & Interests – Non-occupational behaviour to which consumes devote time and effort e.Measurement of Lifestyle– • Attitude – Evaluative statement about other people. places. . hobbies. products etc. public service.

Lifestyle Dimensions Activities Work Hobbies Social events Vacation Entertainment Club Member Community Shopping Sports Interests Family Home Job Community Recreation Fashion Food Media Achievements Opinions Themselves Social issues Politics Business Economics Education Products Future Culture Age Education Income Occupation Family size Dwelling (house to live-in) Geography City size Stage in lifecycle Demographics .

gender. income. family structure. They live within a traditional context of family. • Principle Oriented – These individuals are guided in their choices by their beliefs and principles rather than by feelings. education. occupation. • Status oriented – The actions. often consumers are characterized as heavy. • Usage Rates – measurement of consumption within a specified port category. VALS – Introduced in 1978 VALS (Values & Lifestyles) given by SRI Consulting Business Intelligences is the most popular application of psychographic research by marketing managers. Makers – are practical people who have constructive skills and value self sufficiency. impulsive and rebellious. medium. . geographic location. Experiences and Makers : Action Oriented Experiences – are young. They seek variety and excitement. savoring the new. enthusiastic.. events or desire for approval. SRIC – BI has identified there primary self orientations. vital. approval and opinion of others heavily influence these individuals. light or nonusers. • Media pattern – the specific media the consumers utilize.Demographics– age. practical work and physical recreation and have little interest in what lies outside that context. the offbeat and the ….

reflective people who value order. comfortable. They are well educated and are in professional occupation. Fulfields and believers: Principle oriented Fulfields – are mature. knowledge and responsibility. They value consensus. Action Oriented – These individual desire social or physical activity. They are interested in growth and seek to develop. sophisticated active. Achievers & strivers: Status oriented Achievers – they are successful career and work oriented people who like to and generally do. conventional people with concrete beliefs based on tradition established codes: family. Strugglers/Survivors – Their lives are constricted. Believers – are conservative. satisfied.Actualizers/Innovation – are successful. . church & the nation. variety and risk taking. predictability and stability over risk. Strivers – they seek motivation. intimacy and self discovery. self definition and approval from the world around them. They are poor with limited education and skills. frequently elderly and concerned about their health they are often resigned and passive. take charge people with high self esteem and abundant resources. explore and express themselves in a variety of ways. feel in control of their lives. without strong social bonds. community.

They include: • Consumer culture • Social factors • Reference grp • Family & roles • Status . They are concerned about opinion and approval of others. environmental factors affecting consumers. External variables: They are present outside the customer and influences his buying behaviour. – They differ with individuals. They include: • Motivation • Perceptions • Learning • Beliefs • Values • Customer & attitude • Personality 2. Internal variables – They comprise of factors that are present within the consumers.They are striving to find a secure place in life. They are of two types: 1.

. 2. Atypes of consumer behavior has been identified based on the degree of involvement and the degree of differences amongst the brands. Buying Behaviour – Consumer decision-making varies with the type of buying decision. Buyer – The person who makes the actual purchase.Decision-Making Process – A decision is the selection of an action from two or more alternative choices. Buying Roles: 1. how to buy etc. Decider – A person who decides on any component of a buying decision – where to buy. Influencer – A person whose view/advice infevers the decision. Initiator – A person who first suggests the idea of buying the part/service. 3. 5. 4. User – A person who consumes/uses the pelt/service.

g. risky. highly self expressive e.g. then set of attitude) Habitual buying Behaviour (e.g. laptop. house) Low Involvement Variety seeking buying behaviours (e. dominated by) Significant difference between brands Few differences between brands Dissonance reducing Buying Behaviour e. salt) (brand familarity leads to purchase) . bought infrequently. cookies. then acquired new beliefs.High Involvement Complex Buying Behaviour (expensive.g. car. carpet (First acted.

Levels of Consumer Decision-Making (i) Extensive Problem Solving – When consumers have no established criteria for evaluating a pelt category or specific brands in that category or have not narrowed the no.. (iii) Routinized Response Behaviour – At this level consumers have experience with the pelt category and a well established set of criteria with which to evaluate the brands they are considering. (ii) A Passive View – Opposite to rational economic view of consumers is the passive view that depicts the consumer as basically not submissive to the self servicing interests and promotional efforts of marketer. However they have not fully established preferences concerning a select group of brands. Models of consumers: Four views of Consumer Decision Making: (i) An Economic View – In this the consumer has been characterized as making rational decisions. (ii) Limited Problem Solving – At this level of problem solving. consumers already have established the basic criteria for evaluating the pelt category and the various brands in the category. their decision-making efforts can be classified as extensive problem solving. Of brands they will consider to a small manageable subset. . In some situations they may search for a small amt. of additional information in others they simply review what they already know.

This model focuses on the process by which consumers seek and evaluate information about selected brands and retail outlet. hope. fantasy with certain purchases/possessions. (iv) An Emotional View – Consumer can be a emotional or impulsive buyer and is likely to associate deep feelings or emotions as joy. . love.(iii) A Cognitive View – It potrays the consumer as thinking problem solver. fear.

Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post Purchase Behaviour Five Stage Model of Consumer Buying Behaviour .

• Family • Informal Sources • Non comm.Firms Marketing External Influence Input Efforts • Product • Promotion • Price • Channel of ……. sources • Social class • Subculture/culture Consumer Decision-Making Need Recognition Process Prepurchase search Evaluation of Alternatives Psychological Field • Motivation • Perception • Learning • Personality • Attitude Experience Post-purchase behaviour Purchase • Trial • Repeat purchase Output Post-purchase evaluation Model consumer decision making of . Socio-cultural Env.

CULTURAL SOCIAL • Culture • Reference Group • Subculture • Family • Social class • Roles & Statuses PERSONAL • Age & life cycle stage • Occupation • Lifestyle • Personality & self concept • Economic circumstances PSYCHOLOGICAL • Motivation • Perception • Learning • Beliefs & Attitudes BUYER Factors Influencing Consumer Behaviour .

Changing environmental circumstances .An Overview of Problem Recognition How consumers fell about the product Existing consumer position Process & factors of problem recognition His expectations from the composition of a new product Desired consumer position Contributed by Stock out Dissatisfaction with present stock Perceived gap/ Discripancy tension (Threshold level problem) Problem recognition Recognition of new need situation Enhancement in funds Marketing efforts Every gap does not cross the threshold level. Marketers Generation of new wants increase the gap and increase Availability of new pelt offering the tension level so that purchase can be made.

Types of Problem Recognition Immediacy of Solution Expectancy of Problem Occurance of Problem Expected Occurance of Problem unexpected Immediate Solution Required Routine Immediate Solution not Required Planning Emerging Evolving .

pdt trial) .Information sources for a purchase decision Information sources Internal Information External Information Actively Acquired Passively Acquired Actively Acquired Past Searches Personal experience Low involvement learning Independent Groups Magazines. consumer groups and govt. agencies Personal contacts Friends/Family Marketer Information Experimental Sales person website (Pdt inspection/ advt.

All Brands Known Brands Unknown brands (1) Evolved set Acceptable Brands Inept set Unacceptable Brands (2) Inert set Indifferent Brands (3) Over-looked Brands (4) Purchased Brands (4) Not Purchased Brand (5) .

All Brands Known Brands Unknown brands (1) Evolved set Acceptable Brands Inept set Unacceptable Brands (2) Inert set Indifferent Brands (3) Over-looked Brands (4) Purchased Brands Not Purchased Brand (5) .

How Consumer Use or Dispose of Products Rent it Lend it Give it Product Get rid of it permanent Trade it Sell it Throw it away Use it to serve original purpose Keep it Convert it to serve new purpose Store it Rent it Lend it Direct to consumer Through middleman To intermediary Get rid of it temporarily .

Product value Services value Personal value Image value Monetary cost Time cost Energy cost Psychic cost Total Customer cost Total Customer value Customer Delivered Value .

(i) Economic view (ii) Passive view (iii) Cognitive view .Models of Consumers – Three views of consumer decision making: The term “models of consumers” refer to a general view/perspective as to how (and why) individuals behave as they do.

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