CONSUMER
BEHAVIOR– YOU
ARE
WHAT YOU
BUY…
WHAT IS CONSUMER
BEHAVIOUR
It is the behaviour that consumers
display in searching for, purchasing,
using, evaluating & disposing of
products & services that they expect will
satisfy their needs
consumer behavior is "The study of
individuals, groups, or organizations and
the processes they use to select, secure,
use, and dispose of products, services,
experiences, or ideas to satisfy needs."
WHY STUDY CONSUMER
BEHAVIOUR
The study of consumers helps firms and
organizations improve their marketing strategies
by understanding issues such as how
The psychology of how consumers think, feel,
reason, and select between different alternatives
(e.g., brands, products, and retailers);
The psychology of how the consumer is
influenced by his or her environment (e.g.,
culture, family, signs, media);
The behavior of consumers while shopping or
making other marketing decisions;
How marketers can adapt and improve their
marketing campaigns and marketing strategies to
more effectively reach the consumer
CONSUMER DECISION
MAKING
CONSUMER DECISION
MAKING PROCESS
PROBLEM/NEED RECOGNITION
INFORMATION SEARCH/COLLECTION
EVALUATION OF ALTERNATIVES
PURCHASE DECISION
POST PURCHASE RESONANCE/BEHAVIOR
Need Recognition
• When a current product isn’t
performing properly
Marketing helps
consumers recognize • When the consumer is running
(or create) an out of a product
imbalance between
present status and • When another product seems
preferred state
superior to the one currently
Preferred State
used
PROBLEM OR (NEED)
RECOGNITION
This need can be caused by internal or
external stimuli
It can be physiological like hunger, thirst
It can be psychological like desire for the
prestige of owning a Mercedes
External stimulus may be for a person who
sees a fresh pizza at Pizza Hut that
stimulates his hunger
The salesperson must identify the buyer’s
needs to know what information about the
product benefits should be given so as to
satisfy the buyer’s needs
INFORMATION SEARCH
(OR COLLECTION)
After identifying the need the customer will
search for more information
For low involvement products (like bread,
butter & biscuit) the information search may
be milder
For high involvement products (such as a
home, car, or insurance) which requires more
of an investment, the customer may want an
active information search
This involves visiting retail stores, asking
family members & friends, talking to
salespeople about a product’s price, benefits,
size, models, warranty etc.
EVALUATION OF
ALTERNATIVES
Following are the factors in the
evaluation process used by
consumers-----
The consumer is trying to satisfy a
need, or solve a problem
The consumer is looking for certain
advantages or benefits from the product
or service that satisfies the need or
solves his problem
The consumer knows that each
alternative product or brand has a set of
characteristics or attributes
EVALUATION OF
ALTERNATIVES
The importance & relevance of
attributes vary from product to product
Different consumers give varying
importance to these characteristics
which deliver benefits the consumers
desire for
PURCHASE DECISION
The consumer forms preferences among
the brands & also an intention to buy
the most preferred brand in the
evaluation stage
However, the consumer’s purchase
intentions can be changed by two
factors----
1. Attitude of Others, such as relatives,
friends or boss
2. Unanticipated Situational Factors, e.g.-
financial problem, health related
problem etc.
PURCHASE DECISION
For high involvement products the
purchase decisions include-----
Which Brand to purchase(Brand
Decision)
Timing of Purchase (to purchase during
a festive season, or on a Sunday or a
holiday)
How much quantity
From which retailer or dealer to buy &
How to make the payment (Credit or
Debit Card, Cash or Installment basis
etc.)
POST PURCHASE
BEHAVIOR/RESONANCE
After buying the product or service, the
consumer experiences some level of
satisfaction or dissatisfaction
Buyer’s satisfaction is high (Delight), if
the product’s perceived performance is
more than the buyer’s expectation
If it does not match customers
expectation , the customer is
dissatisfied
If it matches exactly with the customer’s
expectation, then the customer is
satisfied
BUYING SITUATIONS OR
TYPES OF PURCHASE
1. Routine Decision-Making---- Products
that are purchased repeatedly (like
milk, bread & grocery items), come
under this category
These are low involvement products &
are typically low-cost & low-risk
purchases
Consumers give little thought or time
to the routine purchases
They do not go through all the five
stages of buying decision process
BUYING SITUATIONS OR
TYPES OF PURCHASE
2. Limited Decision Making: When a
consumer wants to buy a Television set,
the family members visit retail stores to
get information on price, features,
benefits of various brands etc.
This household consumer is more
involved in buying decision than in
routine purchase decision, but less than
extensive decision making
BUYING SITUATIONS OR
TYPES OF PURCHASE
3. Extensive Decision Making: When
consumers want to buy products like a
home, a car, or an insurance they are
highly involved in the buying decision
The purchase may require more
investment in time & money than
limited decision making
THANK YOU