CONSUMER BEHAVIOR-

Intro

BY: Priti Mishra

1
 Objectives

• Determine how cultural, social, personal,

and psychological factors influence
consumer buying behavior.
• Describe how the consumer makes a
purchasing decision.

2
 Consumer Behavior
• The field of Consumer Behavior:
“studies how individuals, groups, and organizations
select, buy, use, and dispose of goods, services,
ideas, or experiences to satisfy their needs and
desires.”
The behavior that consumers display in searching for,
purchasing, using, evaluating, and disposing of
products and services that they expect will satisfy
their needs.

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 CONSUMER BEHAVIOR ROLE

• Roles people play in the decision making

process
– Initiator (who determines need are not met &
initiate the purchase to rectify)
– Influencer (who intentionally or unintentionally
effect the purchase decision)
– Decider (who decides or suggest what should be
purchased)
– Buyer (who actually purchase)
– User ( who use the purchase)
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Frame work for studying consumer
behavior
1. External Environment (culture, personal,
social, family etc.)
2. Individual Environment (motivation,
attitudes, information, learning, and
personality)
3. Decision process (problem recognition,
information search, purchase decision,
and post-purchase behavior)
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 Simple Response Model

Stimulus
Stimulus Organism
Organism Response
Response

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Model of Consumer Behavior
Marketing
Marketing and
andOther
OtherStimuli
Stimuli

Buyer’s
Buyer’sBlack
BlackBox
Box
? ?

Buyer’s
Buyer’s Response
Response

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 Model of Buying Behavior
Marketing Other Buyer’s Buyer’s decision
stimuli stimuli characteristics process
Product Economic Cultural Problem recognition
Price Technological Social Information search
Place Political Personal Evaluation
Promotion Cultural Psychological Decision
Post-purchase
behavior

Buyer’s decisions
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount 8
How and Why Consumers Buy

• Buying behavior is influenced by:

– Cultural factors
– Social factors
– Personal factors
– Psychological factors

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Characteristics Affecting Consumer
Behavior

Cultural
Cultural

Social
Social

Family
Family &
& Lifestyle
Lifestyle

Psychological
Psychological

Buyer
Buyer

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 How and Why Consumers Buy
• Exert broadest and
Influence Factors deepest influence
• Culture
• Cultural • Subculture
• Social • Social classes
• Personal
• Psychological

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Cultural Factors

Culture
Subculture
Social Class

Buyer
Buyer

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 How and Why Consumers Buy

Major U.S. Social Classes

• Upper Uppers
• Middle Class
• Lower Uppers
• Working Class
• Upper Middles
• Upper Lowers

Lower Lowers
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 How and Why Consumers Buy
• Reference groups
Influence Factors – Membership
• Primary vs. secondary
– Aspirational vs.
• Cultural dissociative
• Social • Family
• Personal • Social roles and statuses

• Psychological

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 Social Factors

Reference
Reference
Groups
Groups

Roles
Roles&&
Family
Family Statuses
Statuses

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 How and Why Consumers Buy

• Age
Influence Factors
• Stage in life cycle
• Occupation
• Cultural
• Economic circumstances
• Social • Lifestyle
• Personal • Personality
• Psychological • Self-concept

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How and Why Consumers Buy

VALS 2 classifies U.S. adults into

eight psychographic groups
• Actualizers
• Believers
• Fulfilleds
• Strivers
• Achievers
• Makers
• Experiencers
• Strugglers

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Family and Lifestyle Influences
Family Influences

Age and Life Cycle Stage Occupation

Economic Situation

Lifestyle Identification

Activities Opinions

Interests
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 How and Why Consumers Buy

Influence Factors • Motivation

• Perception
• Cultural • Learning
• Social • Beliefs
• Personal • Attitudes
• Psychological

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Psychological Factors

Motivation
Motivation

Beliefs &&
Beliefs
Perception
Perception Learning
Learning
Attitudes
Attitudes

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Maslow’s Hierarchy of Needs

Self
Actualization

Self-Esteem

Belongingness

Safety

Physiological

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 Consumer Buying
Roles

User
User Initiator
Initiator

Key
Family
Decision
Buyer
Buyer Roles Influencer
Influencer

Decider
Decider

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Four Types of Buying Behavior
High Low
Involvement Involvement
Significant
differences Complex Variety-
between Buying Seeking
brands Behavior Behavior

Few Dissonance- Habitual

differences Reducing Buying Buying
between Behavior Behavior
brands

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Consumer Buying Decision Process

• In addition to understanding how these

factors influence consumers, marketers
must identify and understand:
– Who makes the buying decision
– The types of buying decisions
– The stages in the buying process

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 Consumer Buying Process
Problem
recognition

Information
search

Evaluation of
alternatives

Purchase
decision

Post-purchase
behavior
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 Consumer Buying Decision Process

Understand • Initiator
• Influencer
• Buying roles • Decider
• Buying behavior • Buyer
• Buying decision • User
process

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 Consumer Buying Decision Process

• Complex buying behavior

Understand
• Dissonance-reducing
buying behavior
• Buying roles • Habitual buying behavior
• Buying behavior • Variety-seeking buying
• Buying decision behavior
process

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 Decision Making Sets
Total
Set Aware-
ness Consid-
Set eration
Choice
Set
Set Decision

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 Consumer Buying Decision Process

Understand • Problem recognition

• Information search
• Buying roles • Evaluation of alternatives
• Buying behavior • Purchase decision
• Postpurchase behavior
• Buying decision
process

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Consumer Buying Decision Process

• Postpurchase Behavior:
– Consumers’ expectations are compared to
performance
– Postpurchase satisfaction influences future
behavior
• Purchasing behavior
• Word-of-mouth communications

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Consumer Buying Decision Process

• Marketers should attempt to influence and

monitor postpurchase behavior
– Postpurchase communications reduce dissonance,
returns, and order cancellations
– Talk with customers to discover new uses for
existing products
– Investigate methods of product disposal

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 How Customers Use or
Dispose of Products
To be
Rent it Give it (re)sold
Get rid of it away
temporarily Loan it
To be
used
Trade it
Get rid of it
Product permanently Direct to
Use for consumer
original Sell it
purpose
Keep it Convert Through
to new Throw it middleman
purpose away
Store it To
intermediary
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