Consumer behavior is the study of individuals
and organizations and how they select and use
products and services.
It is mainly concerned with psychology,
motivations, and behavior.
The study of consumer behavior
- How consumers think and feel about different
alternatives (brands, products, services, and retailers).
- How consumers reason and select between different
- The behavior of consumers while researching and
- How consumer behavior is influenced by their
environment (peers, culture, media).
Studying consumer behavior is important because this way
marketers can understand what influences consumers' buying
decisions. By understanding how consumers decide on a
product they can fill in the gap in the market and identify the
products that are needed and the products that are obsolete.
A consumer behavior analysis should reveal:
-What consumers think and how they feel about various alternatives (brands, products, etc.);
-What influences consumers to choose between various options;
-Consumers’ behavior while researching and shopping;
-How consumers’ environment (friends, family, media, etc.) influences their behavior.
-Consumer behavior is often influenced by different factors. Marketers should study consumer purchase patterns and figure out buyer
STUDYING CONSUMER BEHAVIOR ALSO HELPS
DECIDE HOW TO PRESENT THEIR PRODUCTS IN A
WAY THAT GENERATES MAXIMUM IMPACT ON
UNDERSTANDING CONSUMER BUYING BEHAVIOR
IS THE KEY SECRET TO REACHING AND ENGAGING
YOUR CLIENTS, AND CONVERT THEM TO
PURCHASE FROM YOU.
4 Types of Consumer Behaviour
A consumer’s buying decision depends on the type of products that they
need to buy. The behavior of a consumer while buying a coffee is a lot
different while buying a car.
Based on observations, it is clear that purchases that are more complex
and expensive involve higher deliberation and many more participants.
There are four types of consumer behavior:
1.Complex buying behavior
2.Dissonance-reducing buying behavior
3.Habitual buying behavior
4.Variety seeking behavior
Complex buying behaviour
Complex buying behavior is encountered particularly when consumers are
buying an expensive product. In this infrequent transaction, consumers are
highly involved in the purchase decision. Consumers will research
thoroughly before committing to invest.
Consumer behaves very different when buying an expensive product or a
product that is unfamiliar to him. When the risk of buying a product is very
high, a consumer consults friends, family and experts before making the
For example, when a consumer is buying a car for the first time, it’s a big
decision as it involves high economic risk. There is a lot of thought on how
it looks, how his friends and family will react, how will his social status
change after buying the car, and so on.
Dissonance-reducing buying behaviour
In dissonance-reducing buying behavior consumer involvement is very high.
This might be due to high price and infrequent purchase. In addition, there is a
low availability of choices with less significance differences among brands. In
this type, a consumer buys a product that is easily available.
Consumers will be forced to buy goods that do not have too many choices and
therefore consumers will be left with limited decision making. Based on the
products available, time limitation or the budget limitation, consumers buy
certain products without a lot of research.
For example, a consumer who is looking for a new collapsible table that can be
taken for a camping, quickly decides on the product based on few brands
available. The main criteria here will be the use and the feature of the
collapsible table and the budget available with him.
Habitual buying behaviour
Habitual Buying Behavior is depicted when a consumer has low involvement in a
purchase decision. In this case the consumer is perceiving only a few significant
differences between brands.
When consumers are buying products that they use for their daily routine, they
do not put a lot of thought. They either buy their favorite brand or the one that
they use regularly – or the one available in the store or the one that costs the
For example, while a consumer buys a loaf of bread, he tends to buy the brand
that he is familiar with without actually putting a lot of research and time. Many
products fit into this category. Everyday use products, such as salt, sugar,
biscuits, toilet paper, and black pepper all fit into this product category.
Variety seeking buying behaviour
In variety seeking consumer behavior, consumer involvement is low.
There are significant differences between brands. Here consumers often
do a lot of brand switching. The cost of switching products is low, and
hence consumers might want to try out new products just out of curiosity
or boredom. Consumers here, generally buy different products not
because of dissatisfaction but mainly with an urge to seek variety.
For example, a consumer likes to buy a cookie and choose a brand
without putting much thought to it. Next time, the same consumer might
may choose a different brand out of a wish for a different taste. Brand
switching occurs often and without intention.
WHAT IS MARKER SEGMENTATION
# The process of creating small segments comprising of like minded
individual within a broad market refers to market segmentation
# It helps in the division market into small segment including
individuals who show inclination towards identical brands and have
similar interests attitudes and perception.
NEED FOR MARKET SEGMENTATION
• Market segmentation helps the marketers to device appropriate marketing strategies and
promotional schemes according to the tastes of the individual
• Market segmentation also gives the customer a clear view of what to buy and what not to
• It helps to organization to target the right product to the right customers at the right time .
• It helps the marketers to understand the needs of the target audience and adopt specific
marketing plans accordingly.
BENEFITS OF MARKET SEGMENTATION
1. When you know whom you are talking to, you can develop stronger
marketing messages you can avoid generic, vague, language that speaks to
a broad audience .
2. On digital services ,you can target audience by their age location
interests and more
3. When your message are clear direct and targeted they attracted the right
4. It also helps business to focus their efforts which enables them to
establish a brand identify and specialize in a particular type of product
5. Market segmentation can also help to inform other important business
decisions regarding how you get your product to customers
Demographic segmentation is one of the most popular and commonly used types of market segmentation. It refers to
statistical data about a group of people.
Demographic Market Segmentation Examples
• Family Situation
• Annual Income
Psychographic Segmentation categorizes audiences and customers by factors that relate to their personalities and
Psychographic Market Segmentation Examples
• Personality traits
• Psychological influences
While demographic and psychographic segmentation focus on who a customer is, behavioral
segmentation focuses on how the customer acts.
Behavioral Market Segmentation Examples
• Purchasing habits
• Spending habits
• User status
• Brand interactions
Behavioral segmentation requires you to know about your customer’s actions. These activities may relate to
how a customer interacts with your brand or to other activities that happen away from your brand.
Geographic segmentation is the simplest type of market segmentation. It categorizes customers based
on geographic borders.
Geographic Market Segmentation Examples
• ZIP code
• Radius around a certain location
• Urban or rural
CONSUMER BEHAVIOR AUDIT
THE CONSUMER BEHAVIOR AUDIT IS A FUNDAMENTAL PART OF THE MARKETING
PLANNING PROCESS. IT IS CONDUCTED NOT ONLY AT THE BEGINNING OF THE
PROCESS, BUT ALSO AT A SERIES OF POINTS DURING THE IMPLEMENTATION OF THE
THE CONSUMER BEHAVIOR AUDIT CONSISTS OF TWO TYPES : -
1. INTERNAL INFLUENCES.
2. EXTERNAL INFLUENCES.
The Internal Influences also known as Internal Marketing Environment refers
to components INSIDE the firm that are unique to the firm. An analysis
of the internal environment is critical in the development
of marketing strategy to ensure to that the firm's strategy is based upon its
situation, resources and goals.
As a marketer you must know that : -
How does a marketing team organized…
How efficient is their marketing team…
How effective is their marketing team…
How does their marketing team interface with other organisations
and internal functions…, etc…
The external marketing environment consists of social, demographic, economic, technological,
political and legal, and competitive variables. ... Within the external environment, social factors are
perhaps the most difficult for marketers to anticipate.
• A market orientated organization must know the nature of the
customer such as their needs and how to satisfy them.
• Their buyer decision process and consumer behavior.
• Their perception of the brand and loyalty to it.
• The nature of segmentation, targeting and positioning in the
• What customers 'value' and how we provide that value to them.
• Consumer buying behaviors is very importance in the industry
because consumers will make many buying decisions every day.
There are many consumer buying decisions in great detail to
answer questions about what consumers buy, where they buy, how
and how much they buy, when they buy, and why they buy.
• The underlying principle of market segmentation is that the product and
services needs of individual customers differ. Market segmentation
involves the grouping of customers together with the aim of better
satisfying their needs whilst maintaining economies of scale.
• It consists of three stages and if properly executed should deliver more
satisfy customers, few direct confrontations with competitors and better
designed marketing programmers.