CONSUMER BEHAVIOR

MEANING The term consumer behavior is defined as the

behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs

Consumer behavior focuses on how an Individual make decisions to spend their available resources( Time, money, effort) on Consumer related items that includes-

CONT’D..

What they buy? Why they buy it? When they buy it? Where they buy it? How often they buy it? How often they evaluate it? How they evaluate it after the purchase? The impact of such evaluations on

future purchases? How they dispose it?

WHY STUDY CONSUMER BEHAVIOR?

To implement the Marketing Concept . . a plan to influence buyer – seller exchanges to meet organizational goals

To understand complex influences on consumption processes

To increase a manager’s confidence to predict consumer responses to their marketing strategy

To avoid “the Self-Reference Criterion”

SITUATIONAL INFLUENCES

• Physical and • Social Surroundings• Time• Purchase Use• Buyer’s Condition

SOCIAL INFLUENCES

• Roles • Family• Reference Groups Social Classes• Culture

PSYCHOLOGICAL INFLUENCES

• Perception• Motives• Learning• Attitudes• Personality

Consumer Decision Process

MAJOR INFLUENCES IN THE CONSUMER’S“BLACK BOX”

Problem Recognition

Post Purchase

THE BUYING DECISION PROCESS

Problem Recognition-

The buying process starts when the buyer recognizes a problem or need triggered by internal or external stimuli

Internal stimulus- Hunger, Thirst, Safety External stimulus- Neighbor's car Marketers need to identify the

circumstances that trigger their interest and formulate strategies accordingly

INFORMATION SEARCH1. Internal Sources (Psychological)

Experience emory storage/retrieval mental processing

2. External Sources (Social) family friends Professionals

3. Public Sources Government studies product testing magazines media stories

4. Commercial Sources Advertising sales people product pamphlets

CONT’D..

Successive sets involved in consumer Decision making

EVALUATION OF ALTERNATIVES

Some basic concepts will help us understand consumer evaluation processes

First, the consumer is trying to satisfy a need.

Second, the consumer is looking for certain benefits from the product solution

Third, The consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits sought to satisfy this need.

For example- Hotels- Location, Cleanliness, atmosphere,

pice

PURCHASE DECISION A consumer's decision to purchase

something includes where to buy, when to buy and whether to buy.

For routine goods such as groceries, consumers may simply go to their favorite grocery store, but for electronic purchases, they may browse multiple stores.

They will evaluate each merchant based on prior experience with the store, special offers and whether they can return the product easily.

A store that's visually appealing, has helpful sales associates and offers specials and discounts influences a buyer.

POST PURCHASE BEHAVIOR

After making a purchase, a consumer mentally ranks her purchase satisfaction. She will evaluate if she liked the product, if she enjoys the product and the quality of the product.

This evaluation determines whether the customer will purchase the product or brand again and whether it would be from the same store.

Customers who are happy with their purchases and feel they received a quality product at a good price, will become repeat customers and will tell others about their experience.

Post Purchase satisfaction- Satisfaction is a function of the Closeness

between expectation and the perceived performancePerformance<Expectation DisappointedPerformance= Expectation SatisfiedPerformance> Expectation Delight

Post Purchase Action-If satisfied-

Likely to purchase the product again Say good words about the product

If Dissatisfied- Abandon , Complaint, Case filing

MODELS OF CONSUMER BEHAVIOR An Economic view- Consumers are characterized as rational

thinkers To behave rationally they have to

Be aware of all the products alternatives Be capable of correctly ranking the

alternatives in terms of benefits and disadvantages

Be able to identify the best alternative Theory is unrealistic in following Grounds-

People are limited in their skills and knowledge People are limited by their existing goals and

values

A Passive view- Consumers are perceived as impulsive

and Irrational buyers Regard consumers as an object which

can be manipulated to serve the interest of marketers

Limitation- Fails to recognize that the consumers play

an equally important role in buying situation

A cognitive View- Portrays the consumer as a thinking

problem solver Consumer frequently pictured as either

receptive to or actively searching for product and services that fulfill their needs and enrich their lives

It focuses on process by which consumer seeks and evaluate information about the selected brands and retail outlets( Information processors)

Consumers often develop shortcut decision rules called Heuristics

An Emotional view Various feeling that guide the purchase

decision of the consumers Less Emphasis is placed on the search

of the pre-purchase information . Instead more emphasis is placed on the current mood and feelings

Consumers mood are also important in decision making because it impacts on when to shop , where they shop, whether in shop individually or in group