Consumer Behaviour Notes (3 Pages)
1. Introduction to Consumer Behaviour
Consumer behaviour is the study of how people buy, use, and dispose of
goods and services. It focuses on understanding what influences customers’
choices — such as their needs, wants, emotions, lifestyle, culture, and social
factors.
Simply, consumer behaviour answers the question:
“Why do people buy what they buy?”
Marketers study consumer behaviour to design better products, set correct
prices, and create effective marketing strategies.
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2. Meaning and Definition
Meaning: Consumer behaviour refers to the actions and decision-making
processes of people when they purchase products or services.
Definition: According to Philip Kotler, “Consumer behaviour is the study of
how individuals, groups, and organizations select, buy, use, and dispose of
goods and services to satisfy their needs and wants.”
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3. Importance of Studying Consumer Behaviour
1. Helps in understanding customers: Businesses can know what consumers
like or dislike.
2. Product development: Helps firms create products that meet customer
needs.
3. Effective marketing: Helps design proper advertisements and promotions.
4. Customer satisfaction: Helps in improving services and after-sales support.
5. Competition handling: Knowing customers’ expectations helps companies
compete effectively.
6. Predicting market trends: Helps understand future buying patterns.
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4. Factors Influencing Consumer Behaviour
Consumer behaviour is influenced by several internal and external factors:
(A) Cultural Factors
Culture: Values, beliefs, and customs that shape buying habits.
Subculture: Regional, religious, or social group differences (e.g., Indian vs.
Western consumers).
Social Class: Income and status also affect what people buy.
(B) Social Factors
Family: Family members strongly influence buying decisions.
Reference Groups: Friends, celebrities, or influencers affect preferences.
Roles & Status: A person’s job or position in society also shapes buying
choices.
(C) Personal Factors
Age: Young people and older people have different needs.
Occupation: A doctor and a farmer buy different things.
Income: Determines what products one can afford.
Lifestyle: People’s interests and daily activities influence their purchases.
(D) Psychological Factors
Motivation: The inner drive to satisfy needs (e.g., hunger → buy food).
Perception: How people see and interpret information.
Learning: Past experiences shape future buying choices.
Attitudes & Beliefs: Opinions and feelings toward a product affect buying.
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5. Consumer Buying Decision Process
The process usually involves five steps:
1. Problem Recognition: Realizing a need (e.g., feeling hungry).
2. Information Search: Looking for options (online, ads, friends, etc.).
3. Evaluation of Alternatives: Comparing different brands or products.
4. Purchase Decision: Choosing and buying the product.
5. Post-Purchase Behavior: Satisfaction or dissatisfaction after using the
product.
Example:
A student wants a new phone → checks online reviews → compares prices →
buys one → later reviews if it was a good decision.
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6. Types of Consumer Buying Behaviour
1. Complex Buying Behaviour: High involvement, expensive purchase (e.g.,
car).
2. Dissonance-Reducing Behaviour: High involvement but few differences
between brands (e.g., refrigerator).
3. Habitual Buying Behaviour: Low involvement, frequent purchases (e.g.,
toothpaste).
4. Variety-Seeking Behaviour: Low involvement but many brand choices (e.g.,
snacks).
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7. Role of Marketers in Understanding Consumer Behaviour
Marketers use consumer behaviour research to:
Identify target customers.
Design suitable products and packaging.
Choose the right advertising media.
Set competitive prices.
Improve customer satisfaction and loyalty.
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8. Recent Trends in Consumer Behaviour
1. Digital Influence: Online shopping, social media marketing.
2. Eco-friendly choices: Consumers prefer sustainable and green products.
3. Personalization: Customized products and ads.
4. Experience-based buying: People value experience more than possession.
5. Globalization: Exposure to international brands changes tastes.
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9. Conclusion
Consumer behaviour helps businesses understand what customers want and
how they make decisions. By studying it, companies can offer better
products, improve satisfaction, and build lasting relationships. In short,
understanding consumers is the key to business success.