Consumer Behavior

&
Buying Decisions

Why do we need to study consumer

behavior. ???
Because
no longer we can take our consumers for
GRANTED
Consumer market comprises of
all the individuals & households who buy or
acquire goods & services for personal or
commercial consumption.

Indian Consumer Market

Maslows Theory of Motivation

Motive: a driving force that causes a person to
take action to satisfy specific needs.
(Hungry=Eat)

Maslows Hierarchy of Needs: a method

of classifying human needs and motivations into
5 categories in ascending order of importance:
physiological, safety, social, esteem, and selfactualization.

Maslows Theory of Motivation

Consumer Buying Decision process

Buying Roles
Buying Behavior
Buying Decision

Buying Roles
are influenced by:

Initiator
Influencer
Decider
Buyer
User

Importance of womens decisions in the

Indian consumer market

An example:
Buying Roles

CHILD = Initiator, Influencer, user

MOTHER = Decider, Buyer

Buying Behavior is influenced by:

Complex Buying
Behavior
- High involvement
decisions
- Risky, infrequent,
expensive products
- Focus on products
attributes & brand imp
- Expert sales person,
extensive use of print
media

Buying Behavior is influenced by

contd:
Dissonance Reducing Buyer Behavior

- Occurs after purchase

- Expensive infrequent purchase
- Hearing favorable qualities about other
products dissonance
- To popularize Feel good factor

Buying Behavior is influenced by

contd:

Habitual Buying Behavior out of habit

Low involvement decision
Insignificant brand differences
Low cost household products
TV advertisement a preferred medium

Buying Behavior is influenced by

contd:
Variety Seeking buying behavior

- Low involvement decision

- Frequent brand switching
- Coke Vs Pepsi, variety of cookies

Consumer Buying Decision Making

process
Problem
Recognition

Purchase
Decision

Information
Search

Post purchase
Evaluation

Evaluation of
Alternatives

Need Recognition
Need recognition is the result of an imbalance
between actual (internal) & desired (external)
states.
Aroused when a consumer is exposed to
internal & external stimulus
Thirst, hunger, social recognition Internal
stimulus (an individuals need)
Flashy colors (red) in Fast food outlets, attractive
designing & packaging external stimulus (to
gain consumer attention)

Information Search
a) Personal Sources
family, friends &
acquaintances

b) Commercial SourcesAdvertising, salesperson,

attractive packaging,
displays

Information Search
c) Public Sources mass media, consumer
organizations
c) Experiential Sources
Experience after produce use

Evaluation of attribute
Pick up an attribute (eg price, taste, close
location) & eliminate the rest
Rank the attribute in order of importance & then
evaluate the products on the most imp attributes

Purchase Decision
Impact of attitude of others / intermediaries
- customer reports, websites & other consumer
interactive sources
Impact of unanticipated (unexpected) situational
factors
- danger of perceived risk leads to postpone,
modify or avoid a purchase decision

Post purchase Behavior

Expectations are met satisfied

Expectations not met dissatisfied

Meet the said claims & increase products
performance

Buyer Characteristics are influenced

by..
a)
b)
c)
d)

Cultural Factors
Social Factors
Personal Factors
Psychological Factors

Buyer Characteristics are influenced by

a) Cultural Factors
is a set of values,
norms & attitudes that are
passed from one
generation to another
influence of caste
social classes
promotional activities
varies in countries

Example of promotional
activities:
Developed nations
- low calorie foods
- health club memberships
- exercise equipment
- holidays

Factors Influencing Consumer Buying

Decisions contd..
b) Social Factors
- combination of occupation, income,
education, etc

Impact of:
Reference Groups (friends, family, social
clubs)
Opinion Leaders (role models)

Buyer Characteristics are influenced by

c) Personal Factors
Family Life Cycle age, family size (single,
young couple, middle aged, etc)
Occupation & economic circumstances Income, Savings & assets, Borrowing power
Lifestyle to search relationships between
products & lifestyles
Personality distinct human personality traits
(dominance, confidence)

Buyer Characteristics are influenced by

d) Psychological Factors
-

Motivation
Perception
Learning
Beliefs & Attitude