INTRODUCTION

- SCHIFFMAN & KANUK

"Consumer behaviour may be defined as the behaviour that consumers display in searching for, purchasing suing, evaluating and disposing of produces, services and ideas which they expect will satisfy their needs."

Characteristics Of Buyer BehaviourComprises both mental and physical activity of consumer.Buyer behaviour is a integral part of human behaviourBuyer behaviour is the process by which individuals

decide whether, what, when, from whom, where and how to buy.

Buyer behaviour is very dynamic and complexIn many cases, it is the sum total of the behaviour of a

number of personsIt is influenced by internal factors such as needs, habit,

attitudes etc.. And external factors like family, social group, culture etc…

Consumer behaviour starts before buying and goes even after buying

NEED OR IMPORTANCE OF STUDY OF CONSUMER BEHAVIOUR

It is important for the marketers to understand the buyer behaviour due to the following reasons:

It helps in formulating effective marketing strategy.

It gives information regarding colour, design, and other features that a consumer want in his product. Thus it helps in formulating production policy.

It is important for framing suitable pricing policies.

Consumers demand more for quality products at reasonable prices. Marketers should first study the needs of consumers and then try to satisfy them.

NEED OR IMPORTANCE OF STUDY OF CONSUMER BEHAVIOUR

Rapid technological advancement compels the marketers to study consumer behaviour.

Understanding of consumer behaviour helps avoid or minimise market failures.

For effective market segmentation and target marketing, it is essential to have an understanding of consumer and their behaviour.

Types Of Consumer Buying BehaviourComplex buying behaviour Eg: cars, homes, computers, education etc.

Dissonance reducing buying behaviour- Cognitive DissonanceEg: Mobile phone

Variety seeking buying behaviourEg: Soap, Detergent, tooth paste etc..

Habitual buying behaviourEg: Salt, Matches, Oil etc..

Stages Of The Consumer Buying Process

Stimuli

• Hunger

• Thirst

• A person’s normal needs

Stimuli

• Hunger

• Thirst

• A person’s normal needs

Need RecognitionDifference between an actual state and a desired state

Need RecognitionDifference between an actual state and a desired state

The Buyer Decision ProcessStep 1. Need Recognition

External Stimuli

• TV advertising

• Magazine ad

• Radio slogan

•Stimuli in the environment

External Stimuli

• TV advertising

• Magazine ad

• Radio slogan

•Stimuli in the environment

•Family, friends, neighbors•Most influential source of information

•Advertising, salespeople•Receives most information

from these sources

•Mass Media•Consumer-rating groups

•Handling the product•Examining the product•Using the product

Personal Sources Personal Sources

Commercial SourcesCommercial Sources

Public SourcesPublic Sources

Experiential SourcesExperiential Sources

The Buyer Decision Process Step 2. Information Search

Product AttributesEvaluation of Quality, Price, & Features

Product AttributesEvaluation of Quality, Price, & Features

Degree of ImportanceWhich attributes matter most to me?

Degree of ImportanceWhich attributes matter most to me?

Brand BeliefsWhat do I believe about each available brand?

Brand BeliefsWhat do I believe about each available brand?

Total Product SatisfactionBased on what I’m looking for, how satisfied

would I be with each product?

Total Product SatisfactionBased on what I’m looking for, how satisfied

would I be with each product?

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.

The Buyer Decision Process Step 3. Evaluation of Alternatives

Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

Attitudes of others

Unexpected situational factors

The Buyer Decision Process Step 4. Purchase Decision

Consumer’s Expectations of Product’s Performance

Dissatisfied Customer

Dissatisfied Customer

Satisfied Customer!

Satisfied Customer!

Product’s Perceived Performance

Cognitive Dissonance

The Buyer Decision Process Step 5. Postpurchase Behavior

Model of Consumer BehaviorMarketing andOther Stimuli

Marketing andOther Stimuli

Buyer’s ResponseBuyer’s Response

Product

Price

Place

Promotion

Economic

Technological

Political

Cultural

Characteristics Affecting Consumer Behavior

Buyer’s Decision Process

Product Choice

Brand Choice

Dealer Choice

Purchase Timing

Purchase Amount

Factors Affecting Consumer Behavior

CULTURAL FACTORS

CultureSub CultureSocial Class

SUB CULTUREReligionGeographical locationGender (male/female)

SOCIAL CLASS

SOCIAL FACTORSReference GroupsFamily MembersRelativesRole in the SocietyStatus in the society

Table showing a traditional family life cycleSTAGE CHARACTERISTICS BUYING PATTERN

Bachelorhood Young people not living at home

Fashionable and recreation goods

Newly married couples Young couples without children

Fashionable and leisure articles, furnishings, utensils

Full nest stage I Begins with the birth of the first child in the family

Child’s clothes, food and medical expenses

Full nest stage II Youngest child is at least six years old

Child’s toys to bicycles and education of children

Full nest stage III Teen aged or college going children

Educational expenses

Empty nest I stage Older married couples without any dependent children living with them

Travel or home improvementMedical expenses

Solitary stage Death of a life partner Special needs for attention, loving care and security.

PERSONAL FACTORSOccupationAgeEconomic ConditionLifestylePersonality

PSYCHOLOGICAL FACTORSPerceptionLearningBeliefs and AttitudeMotivation

Two of the best - known theories of motivation are-

Abraham MaslowFrederick Herzberg

Abraham Maslow – Hierarchy of NeedsDfdsf

Dfdsf

HERZBERG’S THEORYFrederick Herzberg developed a two factor

theory that distinguishes dissatisfiers (factors that cause dissatisfaction) from satisfiers (factors that cause satisfaction). The absence of dissatisfiers is not enough to motivate a purchase; satisfier must be present .

Example- A computer that does not come with a warranty would be a dissatisfier. Yet the presence of a product warranty would not act as a satisfier or motivator of a purchase, because it is not a source of intrinsic satisfaction. Ease of use would be a satisfier.

TOOLS TO STUDY COSUMER BEHAVIOURSurveysProjective TechniquesFocus Group

Discussions

CONCLUSIONAs customer is the king, it is very

important for every organisation to understand the needs and wants of their consumer and try to satisfy them. For this the study of consumer behaviour is very essential.

Consumer Delight: when the actual product performance exceeds the

buyer’s expectations, consumer will be highly satisfied . So excess of actual product performance over the expectation is called “consumer delight”.

Today consumer delight has therefore become a buzz word.

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