What is consumer behavior?

Consumer Behavior is the study of the process involved when

individuals or groups select, purchase, dispose of products or services to satisfy needs and desires
Its a combination of five disciplines Psychology Sociology Anthropology Economics Marketing Management

Complete model of consumer behavior

Start
Need recognition Internal search Exposure Stimuli (marketer dominated, other) Attention Comprehension Acceptance Retention Memory Purchase Individual differences resources motivation & involvement knowledge attitudes personality, values, lifestyle Alternative evaluation Influences culture social class family situation

Search

Outcomes

External search

Dissatisfaction

Satisfaction

Who influence a consumer?

Overall Model Of Consumer Behavior

Economic Model
Micro economic model: Alfred Marshall

ASSUMPTIONS:- its not possible to satisfy customers, they have unlimited needs and wants - Customer allot budget to maximize the utility - No external influence, preference dont change - Customers know the utility of a product hence they know the level of satisfaction. - Price determines the purchase. - Law of Diminishing Marginal Utility.