Consumer Behavior

CHAKRESH JAIN

Consumer Behaviour

INTRODUCTION OF CONSUMER BEHAVIOR

The aim of marketing is to meet and satisfy target customers’ needs and wants better than competitors. “Consumer behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants”.

Gaining a thorough in-depth consumer understanding helps to make sure that the right products are marketed to the right consumers in the right way. WHAT INFLUENCES CONSUMER BEHAVIOR?

Model of Buying Behavior

Buyer’s decisionprocess

Problem recognitionInformation searchEvaluationDecisionPost purchase behavior

Other stimuli

EconomicTechnology

Buyer’scharacteristics

CulturalSocialPersonalPsychological

Buyer’s decisions

Product choiceBrand choiceDealer choicePurchase timingPurchase amount

Marketingstimuli

ProductPricePlacePromotion

Characteristics Affecting Consumer Behavior

CULTURAL

SOCIALPERSONAL

PSYCHOLOGICAL

CultureSubcultureSocial Class

Reference GroupsFamilyRoles & Status

AgeOccupationEconomic SituationLifestylePersonality

MotivationPerceptionLearningBeliefs & Attitude

Culture

Cultural Factors

SubcultureSocial Class

Buyer

CultureCulture is the basic values, perceptions, wants &

behaviors learned by a member of society from family &other important institutions . E.g. An American bride wears a white dress on her wedding while a white dress is worn on occasion of mourning in India.

Subculture : A group of people with shared value systems based on common life experiences & situations. Subcultures include nationalities, religions, racial groups &geographic regions. E.g. Punjabi, Bengali, Marathi.

Social Class: Relatively permanent &ordered divisions in a society whose members share similar values, interests & behavior. Determined by income, occupation, education, wealth & other variables. Social classes show distinct product & brand preferences in areas such as clothing, home furnishing, leisure activities & automobiles. E.g. upper Class, Middle class

Social Factors

ReferenceGroups

Roles &StatusesFamily

WHAT INFLUENCES CONSUMER BEHAVIOR ?

Social Factors In addition to cultural factors, a consumer’s behavior is influenced by such social factors as reference groups, family, and social roles and statuses.

A person’s reference groups consists of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior.

Groups having a direct influence on a person are called membership groups.

Some memberships groups are primary groups such as family, friends, neighbors, and co-workers with whom the person interacts fairly continuously and informally.

Some membership groups are secondary groups such as religious, professional groups that tend to be more formal.

Influences on Consumer Behavior

Personal Influences

Age and Family Life Cycle Stage Lifestyle

Occupation &Economic Circumstances

Personality & Self-Concept

PERSONAL FACTORS

Age & Life Cycle Stage: tastes in food, clothing, furniture & recreation are age related. Buying is also shaped by stage of the family life cycle. E.g. Gen Y ( under 25), Young Professionals, (25 to 34), Families (35 to 54).

Psychological Factors

Perception Learning

Beliefs &Attitudes

Motivation

Consumer Buying Process

ProblemProblemrecognitionrecognition

Informationsearch

Evaluation ofalternatives

Purchasedecision

Post purchasebehavior

Purchase product