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Anuradha Dogra

―Consumer Behavior: How and Why People Buy‖


 A basic study of why consumer do what they do

in the marketplace. If the business is consumer-
centric in its orientation, the study of consumer
behavior would be the starting point of all
business and marketing decision making.
 The study of consumer behavior includes the
company asking the right questions in order to
understand and analyze its consumers. In some
instances, consumers are analyzed as a segment,
while in others, they are analyzed as individual

In order to analyze consumers, marketers need

answers to the following questions:
1. Who Buys?
 What is their demographic, geographic,
psychographic or behavioral orientation?
2. What is Bought?
 Is it a core product, augmented product, service,
3. Why is the Purchase Made?
 Influences on purchasing – family, culture,
friends, marketers, age, social status, etc.
Consumer Behavior
In order to analyze consumers, marketers need
answers to the following questions:
4. How Often is the Purchase Made?
 Frequency of purchase, number of purchases,
5. Where is the Purchase Made?
 Location, convenience, online, offline, etc.
6. When is the Purchase Made?
 Time, season, occasion, etc.
7. How is the Purchase Made?
 Decision making process
Product Marketing and Economic
Other Stimuli
Price Technological
Place Political
Promotion Cultural

Buyer’s Characteristics
Decision Buyer’s Black Box Affecting
Process Consumer

Product Choice Purchase

Buyer’s Response Timing
Brand Choice
Dealer Choice Amount
 Culture is the most basic determinant of a
person’s wants and behavior
 Culture includes a set of learned beliefs,
values, attitudes, habi6ts and forms of
behaviour that are shared by a society and
are transmitted from generation to
generation within that society.
Subcultures are groups of people with shared value
systems based on common life experiences and

Subcultural category Variations (examples)

Religion Hindu, Muslim, Parsi, Jain
Geographic location North, South, East
Age Preteen, Teen, Gen Y, Gen
X, Baby Boomers, Seniors.
Gender Male, Female
Occupation Service, Professionals
Social class (status) Upper, middle, lower
 Persons within a given social
class tend to behave alike
 Social class is hierarchical
 Social class is not measured
by single variable
 Social class is continuous
Social Classes

• Six classes: upper-upper, lower-upper, upper-

middle, lower-middle, working class, lower class.
• Two-category social class—Blue and white
• Nine category-- lower-lower, lower-middle,
lower-upper middle-lower, middle-middle,
middle-upper, upper lower, upper-middle,
upper-upper class.

India’s SEC (socioeconomic classification)

combines occupation and education and classify
respondent in SEC A1, A2,B1, B2, C1, C2 and D
 Normative reference group
 Comparative reference group
 Indirect reference
 Contactual reference group
 Aspirational group
 Disclamant group
 Avoidance group
Internal or Whom to Expectations
Defining the Defining and reality –
external buy and
need / want criteria cognitive
sources when to buy
High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between Behavior Behavior
Few Dissonance- Habitual
differences Reducing Buying Buying
between Behavior Behavior