CONSUMER

BEHAVIOR
Aknolt Kristian Pakpahan
pakpahan@unpar.ac.id
Semester Genap 2019/2020
INTRODUCTION
 Definition:

a. a branch which deals with the various stages a consumer goes through
before purchasing products or services for his end use
b. those activities directly involved in obtaining , consuming and disposing
of products and services, including the decision processes that precede
and follow these actions
c. the behavior that consumers display in searching for, purchasing, using,
evaluating, and disposing of products and services that they expect will
satisfy their needs
WHY SO IMPORTANT?
1. Understanding consumer behavior will help business actors become
better marketers as it is the foundation for: segmenting markets,
positioning products, developing an appropriate marketing
2. Knowledge of consumer behavior is essential for non-profit organizations:
non profits have different customers to please such as donors, users,
volunteers, general public, government
3. Public service initiatives have to be based on an understanding of
consumer behavior: most government initiatives (e.g., antismoking
campaigns) need a knowledge of consumer behavior to succeed
4. Better understanding of our own consumption behavior
BUSINESS’ PERSPECTIVES
 A new product must satisfy consumer needs, not the needs and
expectations of management
 Understanding and adapting to consumer motivation and behavior is not
an option – it becomes a necessity for competitive survival
 Consumer sovereignty presents a formidable challenge but skillful
marketing can affect both motivation and behavior if the product or service
offered is designed to meet consumer needs and expectations
 Key point  an economic change from Production-driven to Market-driven;
Firm's policy or strategy guided by market trends and customer needs
instead of the firm's productive capacity or current products
CONSUMER’S
PERSPECTIVES
 Consumer  Any individual who purchases goods and services from the
market for his/her end-use
 Consumer interest  is nothing but willingness of consumers to purchase
products and services as per their taste, need and of course budget (money)
 Why does a consumer buys a product  Need, Social Status, Gifting Purpose
 Why does a consumer does not buy a product  No requirement,
Income/Budget/Financial constraints, Taste
 When do consumers purchase products  Festive season, Birthday,
Anniversary, Marriage or other special occasions
 There are in fact several factors which influence buying decision of a
consumer ranging from psychological, social, economic and so on
-CTD.-
 The main catalyst which triggers the buying decision of an individual is
need for a particular product/service
 Consumers purchase products and services as and when need arises and
whenever need arises; a consumer searches for several information which
would help him in his purchase
 Sources of information: Personal Sources and experiences, Commercial
Sources, and Public Sources
 Perception also plays an important role in influencing the buying decision
of consumers
-CTD.-
 Buying decisions of consumers also depend on the following factors:

1. Messages, advertisements, promotional materials, a consumer goes

through also called selective exposure.
2. Not all promotional materials and advertisements excite a consumer. A
consumer does not pay attention to everything he sees. He is interested
in only what he wants to see. Such behavior is called selective attention.
3. Consumer interpretation refers to how an individual perceives a
particular message.
4. A consumer would certainly buy something which appeals him the most.
He would remember the most relevant and meaningful message also
called as selective retention. He would obviously not remember
something which has nothing to do with his need.
CONSUMER’S DECISION
1. Choosing  based on consumer’s need
2. Deciding  influenced by the media, pride,
packaging, lifestyle, consumerism
3. Buying
4. Post purchase behavior  happy
(satisfied)/not, the implication to buy (more)
or not to buy: loyalty, recommend the product
to others
IMPLEMENTING THE
MARKETING STRATEGY
1. Consumer Research
2. Segmentation  process of dividing the market into
subsets of consumers with common needs or
characteristics
3. Targeting  selecting one ore more of the segments
to pursue
4. Positioning  developing a distinct image for the
product in the mind of the consumer