Consumer Behaviour
Consumer Behaviour is the study of how individuals, groups & organizations select, buy, use and
dispose off goods, services, ideas or experiences to satisfy their needs and wants.
Cultural Factors: Culture is the fundamental determinant of a person’s wants and behaviour.
Each culture consists of smaller subcultures which further consists of social classes.
Social Factors
Reference groups: These are all those groups that have a direct or indirect influence
on the attitudes and behaviour of members
Family: Most important consumer buying organization in the society. Further divided
into- Family of orientation (parents & siblings) and Family of procreation (person’s
spouse & children)
Roles and Status: A role consists of activities a person is expected to perform. Each role in
turn connotes a status
Personal Factors
Age and stage in life cycle: Our tastes and preferences changes with change in our
age and family’s life cycle.
Occupation: Both product and brand choice are greatly affected by economic
circumstances.
Personality: People are likely to choose brands whose personality match their own.
Motivation: Our needs become a motive when it is aroused to a sufficient level of intensity to
drive us to act.
Perception: Perception is the process by which we select, organize and interpret information.
Learning: Learning is produced through the interplay of drives, stimuli, cues, responses and
reinforcement.
Memory: Marketer need to create right brand knowledge structures and ensure that it is
maintained in consumers memory.
Buying Process
Problem Recognition: Burying process starts when the buyer recognizes a problem or need is
triggered by internal or external stimuli.
Information Search: As per surveys, consumer often search for only limited information.
Marketers must understand what type of information consumers seek.
Evaluation of alternatives: There is no single process which is used by all consumers for
evaluation of alternatives. Consumers form judgements largely on a conscious and rational
basis.
Purchase decision: During executing a purchase intention, the consumer may take as many as
five sub decisions- brand, dealer, quantity, timing and payment method.
Post purchase behaviour: Post purchase, the consumer might experience dissonance.
Therefore, marketing communications should supply beliefs and evaluations that reinforce
the consumer choice.
The marketer’s job is to understand behaviour at each stage. Consumers will not necessarily follow
the specified process and might skip or reverse stages. Hence, marketer need to be flexible with these
stages.
Domestic-based
Domestic-based
export
export agents
merchants
Export-
Cooperative
management
organizations
companies
Traveling export
Foreign-based
sales
distributors
representatives
Advantages Disadvantages
Economies of scale Differences in consumer needs, wants,
Lower marketing costs usage patterns
Power and scope Differences in consumer response to
marketing programs
Consistency in brand image
Differences in brand development process
Ability to leverage good ideas
Differences in legal environment
Uniformity of marketing practices