What is

Consumer
Behavior?
Consumer behaviour is the study of
individuals, groups, or organizations and
all the activities
associated with the
purchase, use and disposal
of goods and services

including the consumers

emotional, mental and
behavioural responses that
precede or follow these
activities.
INTRODUCTION
Though similar, consumers are
unique in themselves; they have
needs and wants which are varied
and diverse from one another;
and they have different
consumption patterns and
consumption behavior
Categories of
Consumers:
• Household consumer (personal consumer)
-Individuals who buys for his/her own use.

• Organizational Consumer (Industrial or Business

Consumer)
-A business buys for the organization to function.
 FACTORS
AFFECTING
CONSUMER
BEHAVIOR
 •cultural factors
•social factors
•personal factors
•psychological factors
CULTURAL FACTORS

•Consumer behavior is deeply

influenced by cultural factors
such as: buyer culture,
subculture, and social class.
Culture
•Culture is the part of every
society and is the important
cause of person’s wants and
behavior.
Subculture
• Each culture contains different
subcultures such as religions,
nationalities, geographic regions,
racial groups etc. Marketers can
use these groups by segmenting
the market into various small
portions.
Social Class
• Every society possesses some
form of social class which is
important to the marketers
because the buying behavior of
people in a given social class is
similar. In this way marketing
activities could be tailored
according to different social
classes.
SOCIAL FACTORS
•Social factors also impact the
buying behavior of
consumers. The important
social factors are: reference
groups, family, role and
status.
Reference Groups
•Reference groups have
potential in forming a person
attitude or behavior. The
impact of reference groups
varies across products and
brands.
Family
•Buyer behavior is strongly
influenced by the member of
a family. Therefore marketers
are trying to find the roles and
influence of the husband, wife
and children.
Roles and Status
•Each person possesses
different roles and status in
the society depending upon
the groups, clubs, family,
organization etc. to which he
belongs.
personal factors
• Personal factors can also affect
the consumer behavior. Some of
the important personal factors
that influence the buying
behavior are: lifestyle, economic
situation, occupation, age,
personality and self concept.
Lifestyle
• Lifestyle refers to the way a
person lives in a society and is
expressed by the things in
his/her surroundings. It is
determined by customer
interests, opinions, activities etc
and shapes his whole pattern of
acting and interacting in the
world.
Economic Situation
•Consumer economic
situation has great
influence on his buying
behavior. If the income and
savings of a customer is
high then he will purchase
more expensive products.
Age
•Age and life-cycle have
potential impact on the
consumer buying behavior. It
is obvious that the consumers
change the purchase of
goods and services with the
passage of time.
Personality
•Personality changes from
person to person, time to
time and place to place.
Therefore it can greatly
influence the buying
behavior of customers.
PSYCHOLOGICAL FACTORS
•There are four important
psychological factors affecting
the consumer buying
behavior. These are:
perception, motivation,
learning, beliefs and attitudes.
Motivation
• The level of motivation also
affects the buying behavior of
customers. Every person has
different needs such as
physiological needs, biological
needs, social needs etc. The
nature of the needs is that, some
of them are most pressing while
others are least pressing.
Perception
•Selecting, organizing and
interpreting information in a
way to produce a
meaningful experience of
the world is called
perception.
Three Different Perceptual
Processes
•Selective Attention- marketers
try to attract the customer attention.
•Selective Distortion- customers
try to interpret the information in a way that
will support what the customers already
believe.
•Selective Retention- marketers
try to retain information that supports their
beliefs.
Customer possesses specific belief
and attitude towards various
products. Since such beliefs and
attitudes make up brand image
and affect consumer buying
behavior therefore marketers are
interested in them. Marketers can
change the beliefs and attitudes
of customers by launching special
campaigns in this regard.
THE BUYING PROCESS
A buying process is the series of
steps that a consumer will take
to make a purchasing decision. A
standard model of consumer
purchase decision-making
includes recognition of needs
and wants, information search,
evaluation of alternatives,
purchase, and post-purchase
evaluation.
 •Problem recognition
•Information search
•Evaluation of alternatives
•Purchase
•Post-purchase behavior
Problem Recognition
•Identify need recognition
•You can't make a purchase
decision unless you actually
know what you want or need.
A need is an essential product
or characteristic of a product
that you must obtain.
Information Search
•Examine the information
search
•After you determine your
needs and wants, you will
start to search and gather
information about potential
product choices that may
meet them.
Evaluation of Alternatives
• the consumer evaluates all the products
available on a scale of particular
• If you performed your research correctly,
you should have some options from
which to choose. You use your needs
and wants as criteria in evaluating and
comparing each product against each
other
• In this step consumers can be
significantly influenced by their
attitude as well as the degree of
involvement that they may have
with the product, brand, or
overall category.
Purchase
• At this point, you will purchase the
product. Your purchasing decision
may be influenced by the manner in
which you can purchase and receive
the product.
• the consumer may form an intention
to buy the most preferred brand or
product.
Post-purchase Behavior
• After you have made your purchase and
have had some time with the product,
you will evaluate you decision. This
evaluation may conscious or
unconscious. Your evaluation will play a
large role in your loyalty to the product
and the company that produced it.
• Post-purchase behavior is when the
customer assesses whether he is
satisfied or dissatisfied with a purchase.
ORGANIZATIONAL
BUYER
BEHAVIOR
Companies and other
organizations also need
goods and services for
their business to
operate.
Who are the
organizational buyers?
• Multiple individuals are usually
involved in making B2B buying
decisions. A purchasing agent
may be able to move or
influence the organization's
decision in terms of sale.
Characteristics of
organizational
buying?
•B2B purchasing decisions
include levels of complexity
which is unique to
organizations.
Timing Complexity
•The organizational decision
process often takes a lot of
time depending on the
changes of priorities.
Technical Complexity
•Organizational buying
decisions frequently involve
a range of complex
technical dimensions.
Organizational
Complexity
• Each organization has its own
business philosophy that guides
it's actions in resolving conflicts,
handling uncertainty and risk
searching for solutions and
adapting to change.
Unique Factors
Influencing B2B Buying
Behavior
•Factors that apply in B2B
includes: settings,
situational, personal,
psychological and social
factors.
Individual Factors
•B2B decisions are
influenced by
characteristics of the
individuals involved in the
selection process.
Organizational Factors
•Purchasing decisions,
especially big-ticket
expenditures may be
influenced by the
organization's strategies,
priorities and performance.
Business Environment
•B2B purchasing is also
influenced by factors in the
external business
environment.
 GLOBAL TRENDS
IN
CONSUMER BEHAVIOR
Top Global Consumer
• trends
• living clean
• the growing instances of obesity
have prompted people to be
more conscious of their health
choices.
Living in Borrowed
Money
•The newer model of
ownership such as
subscription and renting
are reshaping the
economy.
Adaptive Entrepreneurs
•People are shifting from 9-
5 culture and giving
entrepreneurship a shot.
They rely less on financial
security and more on being
self-employed.
The Survivors
•Despite improvements in
the global economy the
gap between the rich and
the poor has been ever
growing.