CATHOLIC UNIVERSITY OF MBEYA

(CUoM)

Programme: BBA . II
Module: CONSUMER
BEHAVIOUR
Code: MK 217
Semester: ONE
Facilitator: Mr. Kilimbei.M
Number of Credits: 09
COURSE STATUS: CORE COURSE
 MODULE 1:
INTRODUCTION TO CONSUMER
BEHAVIOUR;
Is the study of individuals, groups, or organisations and
all activities associated with the purchase, use and
disposal of goods and services. It encompasses how
the consumer's emotions, attitudes,
and preferences affect buying behaviour.
Consumer behaviour emerged in the 1940–1950s as a
distinct sub-discipline of marketing, but has become
an interdisciplinary social science that blends elements
from psychology, sociology, social, marketing
and economics (especially behavioural economics).
 INTRODUCTION TO CONSUMER
BEHAVIOUR;
The study of consumer behaviour formally investigates
individual qualities such as demographics, personality lifestyles,
and behavioural variables (like usage rates, usage
occasion, loyalty, brand advocacy, and willingness to
provide referrals), in an attempt to understand
people's wants and consumption patterns.

Consumer behaviour also investigates on the influences on the

consumer, from social groups such as family, friends, sports,
and reference groups, to society in general (brand-
 BEHAVIOR
Understanding consumer behavior is essential for a
company to succeed in its current products and new
product launches. Consumers have different thought
processes and attitudes toward buying a particular
product. If a company fails to understand the reaction of
a consumer towards a product, there are high chances of
product failure.
Due to the changing fashion, technology, trends, living
style, disposable income, and similar other factors,
consumer behavior also changes.
A marketer has to understand the factors that are
changing so that marketing efforts can be aligned
accordingly.
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
1. Consumer differentiation:

In marketing, consumer differentiation is a way to distinguish a

consumer from several other consumers. This helps to make a
target group of consumers with the same or similar behavior.
Though you have a targeted customer demographic in your
business, you can still have variations between individual
customers. Each group of consumers is different, and their
needs and wants differ from other groups. When a marketer is
knowledgeable about the differentiation of each group of
consumers, he can design a separate marketing strategy.
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
Consumer differentiation will help to tailor your strategies
to the needs of varying customer groups. When
consumer differentiation is done, you can expand the
width and breadth of your services. You will be able to
effectively serve a wider group of people.
2. Retention of consumers:
“Consumer behavior is of most importance to marketers
in business studies as the main aim is to create and
retain customers,” says Professor Theodore Levitt
(Kumar, 2004). Consumer behavior is not just important
to attract new customers, but it is very important to
retain existing customers as well. When a customer is
happy about a particular product, he/she will repeat the
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
Therefore, marketing the product should be done in such
a way that it will convince customers to buy the product
again and again. Thus, it is very evident that creating
customers and retaining them is very important. This can
be done only by understanding and paying attention to
the consumer’s buying behavior.
3. Design relevant marketing program:
Understanding consumer behavior allows you to create
effective marketing strategies. Each campaign can speak
specifically to a separate group of consumers based on
their behavior.
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
For example, while targeting the kid's market, you may
have to look out for venues such as TV ads, school
programs, and blogs targeting young mothers. You will
need to take different messaging approaches for different
consumer groups.
A study of consumer behavior enables marketers to
understand what motivates consumers to make
purchases. Furthermore, the same motive can be utilized
in advertising media to stir the desire to make a
purchase. Moreover, marketers should make decisions
regarding the brand logo, coupons, packing, and gifts
based on consumer behavior.
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
4. Predicting market trend:

Consumer behavior analysis will be the first to indicate a

shift in market trends. For example, the recent trend of
consumers is toward convenience and quality food.

This changing market trend was observed by many brands

during a study conducted using 128K customer reviews.

For instance, the current demand for sustainable products

highlights the shift in consumer behavior.
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…

Today’s consumers are more environmentally conscious,

and companies incorporating eco-friendly practices are
more likely to attract and retain customers. Businesses
that overlook shifting consumer behavior risk losing
relevance and missing out on a profitable return on their
marketing costs.

5. Competition:
One of the most important reasons to study consumer
behavior is to find out answers to some of the questions:
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…

 Is the customer buying from your competitor?

 Why is a consumer buying from your competitor?
 What features attract a consumer to your
competitor's products?
 What gaps are your consumers identifying in your
products when compared to your competitors?
Studying consumer behavior facilitates understanding
and facing competition. Based on consumers’
expectations, your brand can offer competitive
advantages.
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
6. Innovate new products:
Innovating new products is crucial because understanding
consumer behavior reveals what customers need and want,
driving companies to create products that solve problems, add
value, and satisfy evolving expectations. This process is
essential for growth, competitiveness, and customer loyalty, as
innovation helps companies adapt to changing tastes and
technologies, and can differentiate them from rivals. Consumer
characteristics, such as their creativity and desire for new
things, directly influence a firm's innovation performance and
success. There is an estimate of new product failures – they
range from 33% to 90% based on the kind of industry.
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
Companies consistently strive hard to improve the
success rate of their new products or new ideas. One of
the most important ways is to conduct a sound and
thoughtful consumer behavior analysis. With the help of
consumer behavior analysis, Nike realized that most of its
target audience is not professional athletes, but many of
them were striving to be more like them.
So at the 2012 Olympics in London, Nike introduced a
campaign to encourage athletics called ‘Find Your
Greatness'
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
7. Stay relevant in the market
When the world is changing as rapidly as it is happening
today, the biggest challenge we all face is staying
relevant to our target market.
And do you know what the main reason behind the rapid
changes is? It is the ever-changing behavior of our
customers.
Today’s consumers have greater choices and
opportunities, which means they can easily switch to a
company that offers better products and services.
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
8. Improve customer service

Consumers require different levels of customer service,

and understanding the differences within your customer

base will help you provide the most appropriate service

for individual needs.

 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
9. Better marketing and communications
As living standards, trends, and technology keep changing,
consumers’ choices also keep varying. Understanding how
these factors affect customers’ buying habits helps
organizations design their messaging accordingly. Thus, having
insights into consumers’ purchase behavior can help marketers
in meeting their objectives.
10. Increase customer loyalty
Understanding customer behavior helps in finding out ways to
boost customer loyalty, which in turn, will lead to higher sales
and a strong brand. Analyzing trends in sales can aid in offering
discounts as well as suggesting the best products and services
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
[Link] plan inventory
Researching customer attitudes helps companies plan inventory
and stock raw materials. In the case of a service-based business,
the management team can better plan their human resources.
If businesses see a trend in demand for specific products, they are
likely to send more purchase orders to their suppliers.
Consumer behavior data can help them to balance demand and
supply.
12. Increase sales
A company always aims to satisfy specific market niches. Even if
the company operates in different sectors, it should target
potential buyers in each segment.
 IMPORTANCE OF CONSUMER
BEHAVIOR CONT…
If you know your customers well, you can have better
conversations with a high probability of closing the deal.
Knowing who you are selling to makes it possible to
clearly define your objectives in the market.
Learning more about consumer behaviors helps to define
the main customers that come directly to the company.
Your inventory should be stocked with products that meet
the requirements of your potential buyers.
 THE FACTORS THAT DRIVE CONSUMER
BEHAVIOR
Consumer behavior is driven by a combination
of cultural, social, personal, psychological, and economic
factors. These factors influence how individuals perceive
products, their needs, and their ultimate purchasing
decisions, ranging from broad societal influences to
individual-level motivations and attitudes.
i. Cultural factors
 Culture: is the set of values, beliefs, customs, and
behaviors shared by a group of people. It shapes
what people consider right, desirable, or important.
A person's basic values, wants, and behaviors learned
from family and other important institutions.
 THE FACTORS THAT DRIVE CONSUMER
BEHAVIOR
Culture creates deep-rooted preferences and sets
the foundation for consumer choices.
Subcultures:
Groups of people with shared value systems based on
common life experiences and situations, such as
nationality, religion, or racial groups.
Subcultures create specialized needs and preferences
that companies target with customized products.
 THE FACTORS THAT DRIVE CONSUMER
BEHAVIOR CONT…

 Social class: Relatively permanent and ordered

divisions in a society whose members share similar
values, interests, and behaviors. It refers to a group of
people with similar income, education, and occupation.
Social class affects purchasing power and the types of
products people can and want to buy.
ii. Social factors
 Reference groups: are people or groups that
influence a consumer’s attitudes or behavior.
 THE FACTORS THAT DRIVE CONSUMER
BEHAVIOR CONT…
These can be friends, classmates, co-workers, celebrities,
or online communities. Reference groups shape opinions,
preferences, and brand choices, especially for products
visible to others.
 Family:
Family is one of the strongest influences on consumer
behavior because it affects daily decisions and long-term
values. Family shapes household purchases, brand
loyalty, and long-term buying habits.
 Roles and status: A person's role in various groups,
like family or work, influences their buying behavior.
 THE FACTORS THAT DRIVE CONSUMER
BEHAVIOR CONT…
iii. Personal factors
 Age and life-cycle stage:
People's needs and wants change as they age and
move through different life stages. Different ages and
life stages have different priorities, which affects
what products they buy and how they spend.
 Occupation:
Affects the goods and services purchased.
Occupation shapes daily needs, dress code, and
work-related purchases.
 THE FACTORS THAT DRIVE CONSUMER
BEHAVIOR CONT…
 Economic situation:
Income, savings, and debt levels impact purchasing power. The
economic situation influences purchasing power, product choice,
and brand preferences.
 Lifestyle: A person's pattern of living as expressed in their
activities, interests, and opinions. Lifestyle shapes how
consumers spend their time and money, leading to different
buying patterns.
 Personality and self-concept: Unique psychological traits
that lead to consistent and lasting responses to one's
environment. Personality and self-concept drive consumers to
choose brands that express who they are or who they want to
 THE FACTORS THAT DRIVE CONSUMER
BEHAVIOR CONT…
[Link] factors
 Motivation: Is the inner drive that pushes a person to
act or satisfy a need. A need that is sufficiently pressing
to direct the person to seek satisfaction. Motivation
determines what a consumer feels they need most,
which directly guides purchase decisions.
 Perception: is how consumers select, organize, and
interpret information to form a picture of a product. The
process of selecting, organizing, and interpreting
information to form a meaningful picture of the world.
Consumers don’t buy actual products they buy their
 THE FACTORS THAT DRIVE CONSUMER
BEHAVIOR CONT…
 Learning: Changes in an individual's behavior arising
from experience. Learning shapes future buying
behavior, preferences, and brand loyalty.
 Beliefs and attitudes: are thoughts or mental
opinions that consumers hold about products or
brands. Thoughts that people hold about something
and their consistently favorable or unfavorable
evaluations, feelings, and tendencies toward [Link]
strongly influence brand choice and consumer
confidence. Beliefs strongly influence brand choice and
consumer confidence.
 CHARACTERISTICS OF CONSUMER
BEHAVIOUR:

i. Post-Purchase Evaluation
After making a purchase, buyers evaluate the level of
satisfaction and the service quality they got from the
product, which in turn can affect future purchasing
intentions and consumer loyalty.
ii. Information processing
The process of information processing is proposed to
consist of five main stages, namely, gathering of
information, storage of information, retrieval of
information, dissemination or transmission of
information, and utilization of information.
 CHARACTERISTICS OF CONSUMER
BEHAVIOUR CONT…
iii. Decision making
Consumer behaviours decision-making is a psychological
process that people undergo in choosing products and
services. This is a progressive series of individual activities
that focus on the job at hand, which comprises the
internally generated forces associated with the individual.
iv. Relationship with companies
One of the cardinal elements that play a pivotal role in
consumer behaviour is the nature of the relationship that
the consumers have with the relevant companies, as it
affects purchase choices, brand attachment, and also
satisfaction in general.
 CHARACTERISTICS OF CONSUMER
BEHAVIOUR CONT…
v. Purchase Behaviour
The almost inevitable sequence of steps taken in the
process goes from a realization of an existing or a
potential need to deciding upon and buying a particular
product.
vi. Post-Purchase Behaviour
Post-purchase behaviour, after which consumers have
made a purchase, refers to their actions, emotions, and
reactions. It’s quite a turning point because it shapes the
future buying behaviour, the attachment to the product,
and even customers' satisfaction with a particular
product.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR
Consumer behaviour can be studied using several theoretical
approaches. Each approach explains why consumers buy,
how they make decisions, and what influences their choices.
1. Economic Approach
The economic approach views consumer behavior as a
rational process where individuals make choices to maximize
their satisfaction (utility) within their budget constraints by
considering prices, income, and preferences. This traditional
view assumes consumers have perfect information and can
consistently rank their preferences to make optimal
decisions.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

While this model is a foundational concept, behavioral

economics has expanded on it by incorporating
psychological factors that lead to more realistic models of
decision-making, acknowledging "bounded rationality"
and non-economic influences.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

Assumptions of the Economic Approach

 Consumers are rational decision-makers.
They aim to maximize satisfaction (utility) from the goods and services
they buy.
 Consumers make decisions based on price and income.
Purchases depend primarily on product price, consumer income, and
budget limits.
 Consumers have perfect information.
They are assumed to know all options, prices, and product qualities
before making a decision.
 Preferences are stable and consistent.
Consumers’ tastes do not change frequently, allowing for predictable
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
Assumptions of the Economic Approach
 Consumers seek maximum utility.
Given their limited resources, they choose combinations
of goods that provide the highest satisfaction.
 Purchases are influenced only by economic
factors.
Psychological or social factors are generally ignored.
Criticisms of the Economic Approach
 Assumes perfect rationality, which is unrealistic.
In reality, consumers often make emotional, impulsive,
or habitual decisions.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

Criticisms of the Economic Approach

 Ignores psychological influences.
Motivation, perception, learning, personality, and attitudes
significantly affect buying behaviour.
 Does not consider social and cultural factors.
Family, friends, society, trends, and cultural norms strongly
shape consumer decisions but are excluded in this
approach.
 Assumes perfect knowledge of all products.
Consumers rarely have complete information about every
 APPROACHES TO STUDYING
CONSUMER BEHAVIOUR CONT…
Criticisms of the Economic Approach
 Preferences are not always stable.
Consumer tastes change with trends, age, lifestyle, and
social influence.
 Over-simplifies real-life decision-making.
Buying is a complex process, not just a mathematical or
economic calculation.
 Fails to explain irrational behaviours.
Examples: luxury purchases, brand loyalty, impulse
buying, or buying items with low economic value.
 APPROACHES TO STUDYING
CONSUMER BEHAVIOUR CONT…

2. Psychological Approach
The psychological approach to consumer behavior is the
study of how a person's thoughts, feelings, and internal
processes like motivation, perception, learning, and
attitudes influence their purchasing decisions.
It examines both conscious and subconscious factors,
such as how cognitive dissonance, beliefs, and emotional
states shape choices, and is crucial for marketers to
understand and predict consumer behavior.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

Assumptions of the Psychological Approach

Consumer behaviour is driven by internal mental
processes.
Factors such as motivation, perception, learning, personality,
and attitudes shape buying decisions.
Consumers interpret information based on their own
perceptions.
What a consumer sees, hears, or understands varies from
person to person.
 Consumer behaviour is learned.
Past experiences influence future buying choices through
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

iv. Motivation drives consumer needs and actions.

Consumers buy products to satisfy psychological and
personal needs.
v. Consumers form attitudes that guide purchase
behaviour.
Attitudes (favourable or unfavorable) are learned and
influence their evaluation of products.
vi. Each individual has unique personality traits.
Personality influences preferences, brand choices, and
buying style.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

Criticisms of the Psychological Approach

i. Too focused on the individual.
It often ignores social, cultural, and environmental influences
on buying behaviour.
ii. Internal processes are difficult to observe or
measure.
Motivation, perception, and attitude are subjective and not
directly visible, making them hard to study scientifically.
iii. Assumes stable psychological traits.
In reality, emotions, attitudes, and preferences can change
quickly.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
iv. May oversimplify complex behaviour.
Buying decisions involve multiple factors, not just internal
psychology.
v. Biased toward Western psychological theories.
Many concepts (like Maslow’s hierarchy) may not apply equally
across different cultures.
vi. Cannot fully explain impulsive or irrational purchases.
Some consumer actions do not follow logical psychological patterns.
[Link] in predicting behaviour accurately.
Since psychological factors vary widely among individuals,
predicting consumption becomes challenging.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

3. Sociocultural Approach
The Sociocultural Approach in consumer behavior views
purchasing decisions as being influenced by social and
cultural factors like a consumer's lifestyle, social class,
culture, family, and reference groups.
This perspective suggests that a person's behavior,
including what they buy, is not an isolated event but a
result of their social environment, social roles, and
cultural values.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
3. Sociocultural Approach
The Sociocultural Approach in consumer behavior
views purchasing decisions as being influenced by
social and cultural factors like a consumer's lifestyle,
social class, culture, family, and reference groups.
This perspective suggests that a person's behavior,
including what they buy, is not an isolated event but
a result of their social environment, social roles, and
cultural values.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

Assumptions of the Sociocultural Approach

 Consumer behaviour is shaped by social and
cultural influences.
A person’s buying habits reflect their family, culture,
social class, and reference groups.
 Individuals are part of social groups that affect
their decisions.
People often buy what their peers, friends, or community
prefers or approves of.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
 Cultural norms guide consumption patterns.
Traditions, beliefs, values, and customs influence what and how
people buy.
 Social interactions and relationships affect buying choices.
Consumers look to opinion leaders, role models, and social networks
when making decisions.
 Consumer behaviour varies across societies.
What is normal or desirable in one culture may not be the same in
another.
 Social identity plays a role in consumption.
People use products to fit in, express belonging, or show status
within a group.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

Criticisms of the Sociocultural Approach

 Overemphasizes social influence.
It may ignore personal factors such as individual
preferences, personality, or psychological motivations.
 Difficult to isolate social or cultural factors
scientifically.
Social and cultural influences are complex and hard to
measure accurately.
 Assumes individuals conform to group norms.
Not all consumers follow social pressure; some make
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

 May overlook internal psychological processes.

Perception, learning, motivation, and attitudes also play major
roles but may be underrepresented.
 Cultural generalizations can be misleading.
Cultures are diverse; not everyone in a culture behaves the
same way.
 May not fully explain rapid changes in behaviour.
Social norms change slowly, but modern consumer behaviour
can shift quickly due to technology and trends.
 Social influence is not always consistent.
The same individual may behave differently in different social
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

4. Personal Approach
The "Personal Approach" in consumer behavior refers
to the practice of businesses tailoring their interactions,
communications, products, and services to meet the
specific, unique needs and preferences of an individual
consumer, rather than treating them as part of a mass
market.
This approach is driven by an understanding that each
consumer is a unique individual whose purchasing
decisions are shaped by a distinct combination of internal
characteristics and external influences.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
Assumptions of the Personal Approach
 Consumer behaviour is driven by individual personality
traits
It assumes that stable psychological characteristics such as
extroversion, motivation, or self-concept shape how people buy
and use products.
 Unconscious motives influence buying decisions
Emotional and subconscious factors (e.g., desires, fears, inner
conflicts) are believed to play a major role in consumption
choices.
 Personality can be measured and linked to consumption
patterns
The approach presumes personality traits can be identified
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
 Consumers behave consistently across situations
The model assumes people with similar personality traits will behave
similarly across different buying situations.
 Brand choice reflects the consumer’s self-image
Consumers purchase products that align with, enhance, or express
their identity or lifestyle.
Criticisms of the Personal Approach
 Personality traits do not always predict behaviour accurately
People often behave differently in different situations, making
personality an unreliable sole predictor.
 Overemphasis on internal factors
The approach tends to ignore social, cultural, economic, and
environmental influences that strongly affect consumer decisions
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
 Difficult to measure unconscious motives
Many assumptions (e.g., hidden desires) are impossible to
validate scientifically.
 Lack of consistency in real-world purchases
Consumers may act unpredictably due to mood, trends, price
changes, or peer influence factors not explained by personality
alone.
 Not suitable for mass-market predictions
Because personality is highly individualized, this approach
struggles to forecast behaviour across large consumer groups.
 Complex and time-consuming to apply
Understanding deep psychological motives requires specialized
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

5. Behavioural / Learning Approach

The Behavioural / Learning Approach in consumer
behaviour proposes that consumers learn through a
process of stimulus and response, shaped by past
experiences and consequences. This approach is primarily
based on two types of conditioning: classical conditioning,
which involves learning through association, and operant
(or instrumental) conditioning, which focuses on learning
through rewards and punishments. Key applications in
marketing include creating brand associations, using
reward programs, and reinforcing desired behaviors to
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

Assumptions of the Behavioural / Learning Approach

 Consumer behaviour is learned
People are not born knowing how to buy; they learn
through experience, observation, and repetition.
 Past experiences shape future behaviour
If a consumer has a positive experience with a product,
they are more likely to repeat the purchase.
Learning occurs through conditioning
Behaviour is shaped by reinforcement (rewards),
punishment, and associations e.g., advertising that links
a brand to positive emotions.
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BEHAVIOUR CONT…
 Observable behaviour is more important than
internal mental states
The approach assumes that behaviour that can be seen,
measured, and predicted is more reliable than studying
internal motives.
 Environment strongly influences consumer decisions
External cues such as price, packaging, promotions, and
social examples teach consumers how to behave.
Criticisms of the Behavioural / Learning Approach
 Ignores internal psychological processes
It focuses too heavily on observable behaviours and
neglects motives, emotions, and cognition.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

 Oversimplifies human decision-making

Consumers are not robots reacting only to stimuli; they also
think, feel, and reason.
 Does not fully explain complex buying decisions
High-involvement purchases (cars, houses) involve deep
thought that cannot be explained by simple conditioning.
 Assumes behaviour is predictable and consistent
In reality, consumer behaviour is often inconsistent due to
mood, social influence, or personal preference changes.
 Underestimates individuality and creativity
It fails to account for unique personal preferences that
cannot be learned simply from environmental cues.
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BEHAVIOUR CONT…

[Link] Approach
The psychoanalytic approach in consumer
behavior suggests that a person's purchasing decisions are
driven by unconscious desires, fears, and motivations,
rather than purely rational thought. Rooted in Sigmund
Freud's theories, this approach views the psyche as
consisting of the id (primal, pleasure-seeking desires),
the ego (the mediator between the id and reality), and
the superego (internalized societal rules). Marketers use
this to appeal to deeper emotions, create symbolic brand
meanings, and understand how personality and early life
experiences influence brand loyalty.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
Assumptions of the Psychoanalytic Approach
 Consumer behaviour is driven by unconscious motives
Hidden desires, fears, and inner conflicts strongly influence buying
decisions.
 Personality consists of three interacting components
The id (instincts), ego (reality), and superego (morality) shape consumer
choices.
 Many purchases satisfy psychological rather than functional
needs
Consumers buy products to express desires, reduce anxiety, or boost
self-esteem.
 Symbols and deeper meanings influence buying
Products often carry symbolic value that appeals to subconscious
emotions.
 Early childhood experiences impact adult purchasing behaviour
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

Criticisms of the Psychoanalytic Approach

 Difficult to measure or prove scientifically
Unconscious motives, dreams, and hidden desires
cannot be reliably tested.
 Too subjective and interpretive
Marketers may project their own assumptions onto
consumers rather than use objective methods.
 Overemphasis on emotions and sexuality
Some concepts are outdated and exaggerate the role
of hidden desires.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
 Does not explain routine or rational purchases
Many buying decisions (e.g., groceries) are practical, not
emotionally driven.
 Not suitable for mass-market prediction
It is highly individualized and cannot easily forecast
behaviour for large groups of consumers.
7. Consumer Decision-Making Approach
The consumer decision-making approach is the five-step
process consumers go through to evaluate and purchase
a product or service. It begins with recognizing a need,
followed by gathering information, evaluating
alternatives, making a purchase decision, and finally,
 THE FIVE STEPS OF THE CONSUMER
DECISION-MAKING APPROACH
i. Need Recognition:
The consumer identifies a problem or a need, which can be
triggered by internal feelings like hunger or external factors
like seeing an advertisement.
ii. Information Search:
The consumer starts looking for information about products or
services that can satisfy the recognized need. This can involve
both internal (memory) and external searches (friends,
reviews, internet).
iii. Evaluation of Alternatives:
The consumer compares the different options they have found,
weighing factors like price, quality, brand reputation, and
 THE FIVE STEPS OF THE CONSUMER
DECISION-MAKING APPROACH CONT…

iv. Purchase Decision:

The consumer chooses a product or service and makes
the purchase. This decision is often a result of a
combination of logic, emotion, and marketing influences.
v. Post-Purchase Evaluation:
After the purchase, the consumer reflects on their
decision and evaluates their satisfaction with the
product. This evaluation can influence future purchasing
behavior, brand loyalty, and whether they recommend
the product to others.
 ASSUMPTIONS OF THE CONSUMER
DECISION-MAKING APPROACH
i. Consumers are rational decision-makers
They carefully evaluate information before choosing products.
ii. Buying follows a logical, step-by-step process
Typically described as: problem recognition → information search →
evaluation → purchase → post-purchase evaluation.
iii. Consumers aim to maximize benefits and minimize costs
Choices are made to achieve the best possible value or satisfaction.
iv. Consumers have access to relevant information
They can compare brands, prices, and features to make informed
decisions.
v. Preferences are stable and consistent
Consumers know what they want and can rank their choices
according to needs and priorities.
CRITICISMS OF THE CONSUMER DECISION-
MAKING APPROACH

i. Consumers are not always rational

Emotions, habits, impulses, and social influence
often override logical decision-making.
ii. The process is not always linear
People may skip steps, make quick decisions, or
rely on shortcuts (heuristics).
iii. Assumes too much information
processing ability
In reality, consumers have limited time, attention,
CRITICISMS OF THE CONSUMER DECISION-
MAKING APPROACH CONT…

iv. Neglects unconscious and emotional

factors
Psychological motives, brand loyalty, and mood
greatly affect decisions but are underplayed.
v. Not suitable for low-involvement
purchases
Everyday purchases (like snacks or detergent)
are often made automatically without much
evaluation.
APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
[Link] Approach
The Humanistic Approach in consumer behavior views
consumers as more than just rational decision-makers,
focusing instead on their subjective experiences,
feelings, emotions, and personal growth.
This perspective, rooted in psychology, emphasizes that
consumers are motivated by their own unique values,
aspirations, and the desire for personal fulfillment.
Instead of just looking at product features, marketers
using this approach seek to understand the "person
behind the purchase" to build genuine connections.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
Assumptions of the Humanistic Approach
 Consumers are driven by the desire for personal
growth and self-fulfillment
Buying behaviour is influenced by the need to achieve
one’s full potential.
 Consumers have free will and make conscious
choices
Individuals are active decision-makers, not controlled by
unconscious motives or external stimuli.
 Behaviour is guided by internal feelings and
subjective experiences
Emotions, values, and personal meaning shape
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

 Humans are inherently good and strive for

positive outcomes
Consumers aim for well-being, authenticity, and
satisfaction in their choices.
Needs follow a hierarchy (e.g., Maslow’s
Hierarchy of Needs)
Consumers buy products depending on which level of
need they want to satisfy physiological, safety, social,
esteem, or self-actualization.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…

Criticisms of the Humanistic Approach

Too idealistic and optimistic
It assumes people always strive for growth, ignoring
selfish, impulsive, or irrational behaviours.
Difficult to measure or test scientifically
Concepts like “self-actualization” or “personal meaning”
are subjective and hard to quantify.
Overemphasizes internal feelings
It downplays social, cultural, and economic influences
that affect consumer choices.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
 Not effective for mass consumer prediction
Because experiences and values vary greatly among individuals,
generalizing behaviour is difficult.
Does not explain habitual or low-involvement purchases
Routine or impulsive buying often has little to do with personal
growth or self-fulfillment.
10. Managerial / Marketing Approach
The managerial or marketing approach to consumer behavior is a
framework used by companies to understand why and how
consumers make purchasing decisions, so they can develop effective
strategies to meet consumer needs and achieve business goals. This
micro-level approach focuses on the individual consumer's internal
states and external influences, using insights to segment markets,
predict trends, and customize marketing campaigns.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
Assumptions of the Managerial /
Marketing Approach
Consumer behaviour can be influenced through
marketing strategies
Firms can shape buying decisions using pricing, promotion,
product design, and distribution.
Consumers respond predictably to marketing stimuli
When exposed to certain marketing actions, consumers are
expected to behave in consistent ways.
Market segmentation is necessary and effective
Different groups of consumers have different needs, so
marketing must be tailored accordingly.
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
 Consumers seek value, and marketers can create
or enhance this value
Effective marketing increases perceived benefits and
influences choice.
Marketing decisions should be data-driven
Research, analytics, and market feedback are assumed to
guide decisions that align with consumer needs.

Criticisms of the Managerial /

Marketing Approach
Assumes marketers fully understand consumers
In reality, consumer behaviour is complex and
 APPROACHES TO STUDYING CONSUMER
BEHAVIOUR CONT…
Overemphasis on manipulation
Critics argue it focuses too much on influencing consumers
rather than understanding genuine needs.
May ignore psychological depth
It tends to oversimplify behaviour, overlooking emotions,
subconscious motives, and cultural influences.
Treats consumers as passive responders
Assumes people simply react to marketing stimuli instead of
making active, independent decisions.
Data-driven methods can be limited or biased
Market research may not capture true preferences due to
response bias, changing trends, or misinterpretation of
CONT…