The term customer refers to the purchaser of a product or service

whereas the term consumer refers to the end user of a product or

service.
A customer is
Factors influencing consumer
behavior
Cultural
Social
Personal
Psychological
personality
Contd..
Schiffman (2008) as that the unique
dynamic organization of characteristics
of a particular person, physical and
psychological, which influence
behaviour and responses to the social
and physical environment.
related to the heredity and the
experience of early childhood.
psychographic
Activities
Interests
Opinions
Family
helps shape an individual's
attitudes and behaviours
develop political and
religious beliefs, lifestyle
choices, and consumer
preferences
society
outside influences of others
Attitude and life styles
the patterns in which people live
and spend time and money.
Beliefs and feelings
Values of perception
Organization,
Identification,
Interpretation
The organization, identification and
interpretation of sensory information in
order to represent and understand the
environment.
can be shaped by learning, memory and
expectations.
Models of consumer behavior
Traditional models:
Economic Model
Learning Model
Psychoanalytic Model
Sociological Model
Economic model
Law of principal of maximum utility
Law of equimarginal utility enables a
consumer to secure the maximum utility
from limited purchasing power
Price effect
Substitution effect
Income effect
Learning model
The response of satisfaction reinforces
the relationship
Learns to associate connection between
stimulus and response which becomes
habit
Understanding the response of
consumer at the market place
Psychoanalytical model
Personality of consumers and their
responses
Consumer behavior is directed by a
complete set of deep seated motives
Sociological model
As his role, status, interaction, influence,
group relation, lifestyle, income, occup-
ation, place of residence, social class
etc.
Contemporary models
Harward seth model
Nicosia
Webster and wind
Engel, balckwell and minard model
Howard sheth model
Customer lacks well defined evaluative
criteria to judge the product
Searches for information
After passing his own personality, his
intake is modified
Evaluates the brands available
Seeks greatest potential of satisfying his
motives
example
Online shopping
Nicosia model
Proposed by Francesco Nicosia in
1970s
Incomplete in a number of aspects,
very reductionist
Variables in the model have not been
clearly defined
A number of assumptions have been made
that question the validity of this model, for
instance:
What type of consumer are we talking about?
The company and the consumer have an
existing relationship? What type?
Is this for a new product? Is this the first
exchange the consumer has had with the
producer?
example
Four-wheelers
Engel, Blackwell and minard
model
Information input
Information processing
Decision process stage
Variables influencing decision making
process
example
Garment sector
Social class
Family
Lifestyle
Personality
Beliefs
attitudes
Webster and wind
partitiones the buying process into
several processes
processes of decision-making are
determined by environmental and
organizational factors.
Final buying process rendered as the
mixture of individual and group decision
example
Automobile manufacturing
B2B business
Purchasing tires
conclusion
Understanding consumer contributes the
best to any organization and for this,
models would work great