Consumer Behavior

Ankita srivastava
General Model of Consumer Behavior
Input Output
Micro factors Influencing Consumer
Behavior
 Cultural Factors
Culture:
Culture is a set of basic values, perceptions, wants and
behavior learned by a member of society from family,
place of residence and other important institutions.
Culture is the most basic cause of a person’s wants and
behavior. Every group or society has a culture and
culture influences on buying behavior.
 Cultural Factors contd…
Subculture:
It provide more specific identification and
socialization for members belonging to a
particular religion, racial group and geographic
regions.
• Social Class:
Social class refers to a group of people with
similar levels of wealth, influence, and status.
 Social Factors
Reference groups:
People whose attitudes, behavior, beliefs, opinions,
preferences and values are used by an individual as the basis
for his or her judgment. One does not have to necessarily be
(or even aspire to be) a member of a reference group to be
negatively or positively influenced by its characteristics.
Reference Groups are of three types

• Primary Group
• Secondary Group
• Tertiary Group (Aspirational & Dissociative)
 Social Factors contd…
Family:
A consumer's family is one of the most significant
factors because a family helps shape an
individual's attitudes and behaviors . One way to
understand the family's impact on consumer
behavior is to identify the decision maker for a
purchase. A decision maker for a purchase can be
a husband, wife, or even a child, and sometimes
decisions are made in collaboration.
 Social Factors contd…
Role & Status:

A social role defines a set of behaviors that are

expected of someone who holds a particular status. It's
easy to confuse a status and a role, but the basic
difference between them is that we occupy a status
and play a role. Every status has an expected set of
behaviors - a role. A woman becomes a mother when
she has a child and so occupies the status of mother.
She is expected to also play the role of mother by
caring for and loving her children (among other things).
 Personal Factors
• Age:
Age also influence the buying behaviour of
consumers. Teenagers would be more
interested in buying bright and loud colours as
compared to a middle aged or elderly
individual who would prefer decent and subtle
designs.
 Personal Factors Contd…
• Stage in the life cycle:

A bachelor would prefer spending lavishly on

items like beer, bikes, music, clothes, parties,
clubs and so on. A young single would hardly be
interested in buying a house, property, insurance
policies, gold etc.An individual who has a family,
on the other hand would be more interested in
buying something which would benefit his family
and make their future secure.
 Personal Factors Contd…
• Economic Condition
The buying tendency of an individual is
directly proportional to his income/earnings
per month. How much an individual brings
home decides how much he spends and on
which products?
 Personal Factors Contd…
• Lifestyle
Lifestyle, refers to the way an individual stays in
the society. It is really important for some people
to wear branded clothes whereas some
individuals are really not brand conscious. An
individual staying in a posh locality needs to
maintain his status and image. An individual’s
lifestyle is something to do with his style,
attitude, perception, his social relations and
immediate surroundings.
 Personal Factors Contd…

• Personality
An individual’s personality also affects his
buying behaviour. Every individual has his/her
own characteristic personality traits which
reflect in his/her buying behaviour.A fitness
freak would always look for fitness
equipments whereas a music lover would
happily spend on musical instruments, CDs,
concerts, musical shows etc.
 Personal Factors Contd…

• Occupation
• The occupation of an individual plays a
significant role in influencing his/her buying
decision. An individual’s nature of job has a
direct influence on the products and brands
he picks for himself/herself.
 Psychological Factors
Motivation:
Why do people wear branded clothes ?
Individuals prefer to spend on premium
brands and unique merchandise for others to
look up to them. Certain products become
their status symbol and people know them by
their choice of picking up products that are
exclusive.
 Psychological Factors Contd…
• Perception
• What an individual thinks about a particular
product or service is his/her perception
towards the same. For someone a Dell Laptop
might be the best laptop while for others it
could be just one of the best brands available.
 Psychological Factors Contd…
• Learning
• Learning comes only through experience. An
individual comes to know about a product and
service only after he/she uses the same. An
individual who is satisfied with a particular
product/service will show a strong inclination
towards buying the same product again.
 Psychological Factors Contd…
• Beliefs and Attitude
Beliefs and attitude play an essential role in
influencing the buying decision of consumers.
Individuals create a certain image of every
product or service available in the market.
Every brand has an image attached to it, also
called its brand image.
 Motivation
Motivation is the driving force behind any
action.
It is defined as a psychological force that
determines the direction of a person’s
behavior.

Its an inner urge to achieve a particular goal.

 Belief and attitude
Belief:
Belief is a state of mind . It’s a complex process
that starts from the cognitive learning a
consumer gains from the environment.

It is formed as a result of inferences a consumer

derives from various aspects of his life.
These belief lead to attitude formation.
 Popular Consumer Beliefs in india

• Fair Skin denotes royalty and beauty.

• An effective dental care product would
not taste good
• Whatever is cheap is poor in quality
• Ready to eat food is not fresh
 Popular Consumer Beliefs in india

• Touch and feel factor is very important in

selecting fruit ,vegetables and pulses
• Nutritious healthy food cannot be tasty
• Products with beautiful packaging are
good
• The more expensive the brand the better
is the quality and performance.
 Consumer Feeling
Consumers attitude are formed based on how a
product makes them feel:

• As a part of advertising experience

• As a part of shopping experience

• As a part of consumption
 Consumers attitude
Attitude formation model

Cognitive Affection Conation

 How to Change Consumers’ Attitude
• By changing the consumers’ beliefs

• By adding new beliefs

• By changing attribute importance

 Consumer Learning
Consumer learning is the process by which
individuals acquire knowledge and experience
from different sources which they apply in
future for related events.
 Classical Conditioning Theory
Three basic concepts are derived from classical
conditioning:

• Repetition
• Stimulus Generalization
• Stimulus Discrimination
Consumer Decision Making Process
Need Recognition

Information Search

Evaluation of Alternative

Purchase

Post Purchase Evaluation

 PERSONALITY &
CONSUMER BEHAVIOUR
 Personality
“A person’s unique psychological makeup
and how it consistently influences the
way a person responds to his or her
environment.”
— Every person is unique having particular
characteristics.

— Human personality is an interesting blend of

behavior and characteristics.

— In fact everybody likes to admire people who

have great personality regardless of age, sex
and financial status.

— Possessing great personality might help you

to reach ultimate goal.
 NATURE OF PERSONALITY
Personality reflects individual differences-

— Each individual has a special set of inner characteristics,

and is thus unique by himself.

— Some individual are highly sociable whereas some are

low on sociability.

— Personality is a useful concept because it enables us to

categorize consumers into different groups on the basis
of one or even several traits.
 Personality is consistent and enduring-

— Marketers cannot change consumers personalities

to conform to their products. However, if they
know which personality characteristics influence
specific consumer responses, they can attempt to
appeal to the relevant traits inherent in their target
group of consumers.

— An individual's personality tends to be both

consistent and enduring.

— Personality is only one of a combination of factors

that influence how a consumer behaves.
 Personality can change-

— Under certain circumstances personalities

change.

— An individual's personality may be altered by

major life events, such as the birth of a child, the
death of a loved one, a divorce, or a significant
career promotion.

— There are changes in personality as a man

matures slowly.

— We find many aggressive persons mellow down as

they advance in years.
 Freudian Theory

Freudian theory
• Modern psychology has been greatly shaped by
psychoanalytic theory of personality put forward by
Sigmund Freud

• Human motivation is a result of unconscious needs

and drives.
 There are 3 elements of personality

ID

EGO

Superego
 SUPER
ID EGO
EGO

The Quest
Primal desires Reason

Basic Nature
and
Self-Control
for

Perfection
 Eat a small You’re
I want a bar of on a
chocolate Chocolate
diet
 BRAND PERSONALITY

• Brand Equity: the extent to which a consumer holds in memory

strong, favourable, and unique associations with a brand.

• Animism: Giving animate qualities to inanimate objects to

bring them to life.

• Communication of a brand personality is one of the primary

ways marketers can make a product stand out from
competitors and inspire brand loyalty.
Brand Personality Dimensions
• Sincerity (down-to-earth, honest, wholesome,
cheerful)

• Excitement (daring, spirited, imaginative,

up-to-date)

• Competence (reliable, intelligent, successful)

• Sophistication (upper class, charming)

• Ruggedness (outdoorsy, tough)

• Sincerity -Hallmark, Kodak, Coke

• Excitement -Pepsi

• Competence -Hewlett Packard, Wall Street

Journal

• Sophistication -Mercedes, BMW,Channel

• Ruggedness – Nike, Marlboro