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Presented by : Palaash Kumar
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CONTENTS
1. What is consumer behavior ?
2. Why do we study consumer behavior ?
3. Factors affecting consumer behavior
4. Psychological processes affecting consumer
behavior
5. Types of buying decisions
6. The buying decision process
7. Conclusion
8. References
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What is Consumer Behavior ?
• The study of how final consumers (individuals & households) buy,use,dispose of goods,services,ideas,experiences for personal consumption.
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Why do we study consumer behavior ?
• Consumers are different
• Consumer behave differently in different
cultures, and societies
• There are Cultural, Economic, Language, and
Societal differences.
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Factors Affecting
Consumer Behavior
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Personal
Social Culture
Factors affecting consumer behavior :
Cultural
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Social Class
• People within a social class tend to exhibit similar buying behavior.
• Occupation
• Income
• Education
• Wealth
Subculture
• Groups of people with shared value systems based on common life experiences.
•Geographic
•Religions
•Racial groups
Determines a person's wants and behavior
Values,Perceptions, Preferences, Behaviors.
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Reference Groups •Membership •Aspiration •Dissociative
Family
•Family of orientation
•Family of procreation
Roles and Status
Social Factors
Factors affecting consumer behavior : Social
Factors affecting consumer behavior :
Personal
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Personal Influences
Age and Family Life Cycle Stage,eg : Titan wedding collecn
Occupation,eg : comp. Software companies
Economic Situation If recession expected,marketers
can redesign,reposition, reprice products
Personality & Self-Concept: Actual,ideal,others’
Psychological Factors
Motivation
Perception
Learning
Beliefs and Attitudes
Psychological processes affecting consumer
behavior
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Maslow’s Hierarchy of Needs
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Self-actualisation (self development)
Esteem needs (self-esteem,status)
Social needs (sense of belonging,love)
Safety needs (security,protection)
Physiological needs (Hunger,thirst)
• “Why are people driven by particular needs at
a particular time?”
• Human needs arranged in hierarchy
• People satisfy the most important need first
• Eg : a starving man would not be interested in
anything other than food and water
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Herzberg’s Theory
• 2 factor theory,dissatisfiers and satisfiers
distinguished
• Eg : a computer that does not come with a
warranty – dissatisfier,ease of use would be a
satisfier.
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Freud’s Theory
• Freud assumed that the psychological forces
shaping people’s behavior : largely
unconscious
• A person can’t understand his/her own
motivations.
• Laddering lets us trace a person’s motivation
• Marketer can then decide at what level to
develop the message and appeal
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Perception
• Process by which we select,organize and interpret information inputs to create a meaningful picture of the world.
• Eg : a fast-talking salesperson
• 3 important perceptual processes:
• Selective attention
• Selective distortion
• Selective retention
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Learning
• Induces changes in
behavior arising from
experience
• Eg : Suppose you buy a
Dell computer,a rewarding
experience will positively
reinforce response to
computers and Dell
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Beliefs and Attitudes
• Beliefs – descriptive thoughts that a person
holds about something
• Attitudes – a person’s enduring favourable or
unfavourable evaluations,emotional
feelings,action tendencies towards an
object/idea
• Attitudes economize on energy and
thoughts,very difficult to change
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Types of Buying Decisions
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Complex
Buying
Behavior
Dissonance-
Reducing Buying
Behavior
Variety-
Seeking
Behavior
Habitual
Buying
Behavior
High Involvement
Significant differences
between brands
Few differences
between brands
Low Involvement
The Buyer Decision Process
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Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the
environment
Internal Stimuli • Hunger
• Thirst
• A person’s normal needs
Need Recognition Difference between an actual state and a desired state
The Buyer Decision Process
Step 1. Need Recognition
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The Buyer Decision Process
Step 2. Information Search
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•Family, friends, neighbors •Most influential source of information
•Advertising, salespeople •Receive most information
from these sources
•Mass Media •Consumer-rating groups
•Handling the product •Examining the product •Using the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
Product Attributes Evaluation of Quality, Price, & Features
Degree of Importance Which attributes matter the most to me?
Brand Beliefs What do I believe about each available brand?
Total Product Satisfaction Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures Choosing a product (and brand) based on one
or more attributes.
The Buyer Decision Process
Step 3. Evaluation of Alternatives
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The Buyer Decision Process
Step 4. Purchase Decision
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Purchase Intention Desire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpected
situational
factors
Consumer’s Expectations of
Product’s Performance
Dissatisfied
Customer Satisfied
Customer !
Product’s Perceived
Performance
Cognitive Dissonance
The Buyer Decision Process
Step 5. Postpurchase Behavior
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CONCLUSION
• Consumer behavior influenced by 3 factors : cultural,social,personal
• 4 main psychological processes affecting consumer behavior : motivation,perception,learning,memory
• Typical buying processes consist of : problem recognition, information search, evaluation of alternatives, postpurchase behavior
• The attitudes of others,unanticipated situational factors and perceived risk may all affect the decision to buy.
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REFERENCES
• Marketing Management by Philip Kotler
• Principles of Marketing by Philips Kotler
• Basic Marketing by Perreault & Mccarthy (Tata
McGraw Hill) 15th edition
• Marketing Management by Dr.Rajan Saxena
4th edition
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THANK YOU
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