Unit 4: Consumer Behavior
Consumer Behavior: Meaning & importance of consumer behavior, Comparison
between Organizational Buying behavior and consumer buying behavior,
Buying roles, Five steps consumer buyer decision process – Problem
Recognition, Information Search, Evaluation of Alternatives, Purchase
Decision, Post Purchase behavior. Moment of
Truth, Zero Moment of Truth, ZMOT, Moderating effects on consumer behavior.
(7+2)
Before understanding consumer behaviour let us first go through few more
terminologies:
Who is a Consumer ?
Any individual who purchases goods and services from the market for his/her
end-use is called a consumer.
In simpler words a consumer is one who consumes goods and services
available in the market.
Example - Tom might purchase a tricycle for his son or Mike might buy a shirt
for himself. In the above examples, both Tom and Mike are consumers.
What is consumer Interest ?
Every customer shows inclination towards particular products and services.
Consumer interest is nothing but willingness of consumers to purchase
products and services as per their taste, need and of course pocket.
Let us go through the following example:
Both Maria and Sandra went to the nearby shopping mall to buy dresses for
themselves. The store manager showed them the best dresses available with
him. Maria immediately purchased two dresses but Sandra returned home
empty handed. The dresses were little too expensive for Sandra and she
preferred simple and subtle designs as compared to designer wears available at
the store.
In the above example Sandra and Maria had similar requirements but there
was a huge difference in their taste, mind set and ability to spend.
What is Consumer Behaviour ?
Consumer Behaviour is a branch which deals with the various stages a
consumer goes through before purchasing products or services for his end
use.
Why do you think an individual buys a product ?
Need
Social Status
Gifting Purpose
Why do you think an individual does not buy a product ?
No requirement
Income/Budget/Financial constraints
Taste
When do you think consumers purchase products ?
Festive season
Birthday
Anniversary
Marriage or other special occasions
There are infact several factors which influence buying decision of a consumer
ranging from psychological, social, economic and so on.
The study of consumer behaviour explains as to:
Why and why not a consumer buys a product ?
When a consumer buys a product ?
How a consumer buys a product ?
During Christmas, the buying tendencies of consumers increase as compared
to other months. In the same way during Valentines week, individuals are often
seen purchasing gifts for their partners. Fluctuations in the financial markets
and recession decrease the buying capacity of individuals.
In a layman’s language consumer behaviour deals with the buying behaviour of
individuals.
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.
According to Belch and Belch, whenever need arises; a consumer searches for
several information which would help him in his purchase.
Following are the sources of information:
Personal Sources
Commercial Sources
Public Sources
Personal Experience
Perception also plays an important role in influencing the buying decision of
consumers.
Buying decisions of consumers also depend on the following factors:
Messages, advertisements, promotional materials, a consumer goes
through also called selective exposure.
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 behaviour is called selective
attention.
Consumer interpretation refers to how an individual perceives a
particular message.
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.
Five steps consumer buyer decision process
