CONSUMER BEHAVIOUR

Satish joshi

“Consumer Behavior: How and Why People Buy”

A basic study of why consumer do what they do in the marketplace. If the business is consumer-centric in its orientation, the study of consumer behavior would be the starting point of all business and marketing decision making.

The study of consumer behavior includes the company asking the right questions in order to understand and analyze its consumers. In some instances, consumers are analyzed as a segment, while in others, they are analyzed as individual consumers.

CONSUMER BEHAVIOUR

In order to analyze consumers, marketers need answers to the following questions:

1. Who Buys? What is their demographic, geographic,

psychographic or behavioral orientation?2. What is Bought? Is it a core product, augmented product,

service, etc.3. Why is the Purchase Made? Influences on purchasing – family, culture,

friends, marketers, age, social status, etc.

CONSUMER ANALYSIS

Consumer BehaviorIn order to analyze consumers, marketers need

answers to the following questions:4. How Often is the Purchase Made? Frequency of purchase, number of purchases,

etc.5. Where is the Purchase Made? Location, convenience, online, offline, etc.6. When is the Purchase Made? Time, season, occasion, etc.7. How is the Purchase Made? Decision making process

Consumer Behaviour is also defined as activities people undertake when obtainig, consuming and disposing of products and services.

Model of Consumer BehaviorMarketing and

Other StimuliMarketing andOther Stimuli

Buyer’s Black BoxBuyer’s Black Box

Buyer’s ResponseBuyer’s Response

Product

Price

Place

Promotion

Economic

Technological

Political

Cultural

Characteristics Affecting Consumer Behavior

Buyer’s Decision Process

Product Choice

Brand Choice

Dealer Choice

Purchase Timing

Purchase Amount

Characteristics Affecting Consumer Behavior

BuyerBuyer

Psychological

Personal

Social

Culture

Factors Influencing Consumer Behavior

Cultural Factors

Culture is the most basic determinant of a person’s wants and behavior

Culture includes a set of learned beliefs, values, attitudes, habi6ts and forms of behaviour that are shared by a society and are transmitted from generation to generation within that society.

Subcultures are groups of people with shared value systems based on common life experiences and situations

Subcultural category Variations (examples)

Religion Hindu, Muslim, Parsi, Jain

Geographic location North, South, East

Age Preteen, Teen, Gen Y, Gen X, Baby Boomers, Seniors.

Gender Male, Female

Occupation Service, Professionals

Social class (status) Upper, middle, lower

“Social class is the relatively permanent and homogenous division in the society into which individuals and families sharing similar values, life styles, interest and behaviour can be categorised”

Characteristic Features of Social Classes

Persons within a given social class tend to behave alike

Social class is hierarchicalSocial class is not measured by single variable

Social class is continuous

Social Classes

• Six classes: upper-upper, lower-upper, upper-middle, lower-middle, working class, lower class.• Two-category social class—Blue and white collar.• Nine category-- lower-lower, lower-middle, lower-upper middle-lower, middle-middle, middle-upper, upper lower, upper-middle, upper-upper class.

India’s SEC (socioeconomic classification) combines occupation and education and classify respondent in SEC A1, A2,B1, B2, C1, C2 and D classes.

Types of Reference Groups

Normative reference groupComparative reference group Indirect referenceContactual reference groupAspirational groupDisclamant groupAvoidance group

Consumer Purchase Process

Defining the need / want

Internal or external sources

Defining criteria

Whom to buy and

when to buy

Expectations and reality –

cognitive dissonance

Types of Buying Decisions

ComplexBuying

Behavior

Dissonance-Reducing Buying

Behavior

Variety-SeekingBehavior

HabitualBuying

Behavior

HighInvolvement

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

LowInvolvement