Consumer behavior

1. CONSUMER BEHAVIOR

2. Definition
Consumer behaviour can be defined
as “actions of consumers in the market
place and the underlying motives for
those actions.”
-- Ostrow & Smith
It includes the study of what they
buy, why they buy, when they buy,
where they buy, how often they buy,
how often they use it.

3. Consumer Buying Motive
A buying motive induces a buyer to
buy a product.
It is an influence or consideration
which provides an impulse to buy.
Therefore, it is necessary for the
marketer to identify the buying motives
of different kinds of customers.

4. 3 Important Considerations
1. He has a desire which needs to be
satisfied.
2. He has an urge which induces him to
purchase.
3. He has a reasoning.

5. Types of Buying Motive
1) Internal motives : often originate in the
minds of the people and are both physical
and psychological in nature.
They are broadly classified into 2 classes:
i. Rational : which are based on logical
reasoning.
ii. Emotional : which are based on personal
feelings.

6. Contd…
2) External motives : are often influenced by
the external factors. Various factors like
income, occupation, religion, culture, family,
social environment.
They are broadly classified into 2 classes:
i. Product motives: these explain why
people buy certain products.
ii. Patronage motives: these cause a
customer to buy products from a
particular manufacturer or retailer.

7. Factors Influencing Consumer Behaviour
1) Cultural factors
◦ Culture
◦ Culture & Communication
◦ Culture & Consumption
◦ Culture & Language
◦ Indian Culture
◦ Sub- Culture
◦ Social Class

8. Contd….
2) Social factors
◦ Reference Group
◦ Family
◦ Roles & Status
3) Personal factors
◦ Age &Life-cycle Stage
◦ Occupation
◦ Economic condition
◦ Life-Style
◦ Personality & Self-concept

9. Contd….
4) Psychological factors
◦ Motivation
◦ Perception
◦ Learning
◦ Beliefs & Attitudes

10. Maslow’s Hierarchy of Needs
Self
Actualization
Needs
Psychological Needs
Safety & Security Needs
Social Needs
Self Esteem
Needs

11.  Psychological Needs :- are the basic needs for
food, clothing , shelter.
 Safety & Security Needs :- are the need to be
free from the fear of physical, psychological,
financial harm.
 Social Needs :- also called belongingness
needs or need for love. They involve the desire
to affiliate with and be accepted by others.
 Self Esteem Needs :- represents the higher
needs of humans. Desire to have a positive self-
image and obtain respect and recognition from
others.
 Self Actualisation Needs :-are an individual’s
need to realize his full potential through
continuous growth and self-development.

12. Consumer Decision-Making
Process
Postpurchase
Behavior
Purchase
Evaluation
of Alternatives
Information Search
Need Recognition
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps