1. Consumer Behaviour (CB)
CB is defined as the behaviour that consumer display in “searching for, purchasing,
using, evaluating and disposing of products and services that they expect will satisfy their
needs. CB focuses on now individuals make decisions to spend their available resources
(time, money, effort) on consumption related items. That includes:
•What they buy
•Where they buy
•Why they buy
•When they buy it
•How often they buy
•How often they use it
•How they evaluate it after the purchase
•Impact of these evaluations on future purchase
•How they dispose of it
CB describes two different kinds of consuming entities:
•Personal consumer
•Organizational consumer (project & non project org. govt. agenties institutions i.e.
school, hospitals, prisons etc.)
2. Demographics– are statistics that measure observable aspects of a population such as
birthrate, age, gender, income etc. one of the most important segment for the marketer.
Lifestyle and Psychographic Segmentation– Lifestyle is basically now a person lives.
It is now one enacts his/her self concept. It is determined by the persons past
experiences, innate characteristics and current situations.
Psycho (mental) Graphic (profiling) may be viewed as the method of defining lifestyle in
measurable terms. It is the systematic use of relevant activity, interest and opinion
constructs to quantitatively explore and explain the communicating, purchasing and
consuming behaviours of persons for brands, products and cluster of products.
Psychographic (including lifestyles) and demographic profiles are highly complementary
approaches that work best when used together. By combining the knowledge marketers
are provided with powerful information about tgt segment.
Lifestyle Marketing– Lifestyle frequently provides the basic motivation and guidelines for
purchases, although it does so in an indirect and subtle manner.
3. Lifestyle and the consumption process
Lifestyle Determinants Lifestyle Impact on Behaviour
• Demographics How we live Purchases
• Subculture • Activities • How
• Social class • Interests • When
• Motives • Likes/Dislikes • Where
• Personality • Attitudes • What
• Emotions • Consumptions • With whom
• Values • Expectations Consumption
• Household life cycle • Feelings • Where
• Culture • With whom
• Past experience • How
• When
• What
4. Measurement of Lifestyle–
• Attitude – Evaluative statement about other people, places, ideas, products etc.
• Values – Widely held beliefs about what is acceptable/desirable.
• Activities & Interests – Non-occupational behaviour to which consumes devote time
and effort e.g. hobbies, sports, public service.
The Technique of Lifestyle Segmentation–
Lifestyle segmentation measure (i) how people spend their time engaging in activities (ii)
what is of most interest/important to them in their immediate surroundings (iii) their
opinion and views about themselves and world around them (AIOS).
5. Lifestyle Dimensions
Activities Interests Opinions Demographics
Work Family Themselves Age
Hobbies Home Social issues Education
Social events Job Politics Income
Vacation Community Business Occupation
Entertainment Recreation Economics Family size
Club Member Fashion Education Dwelling (house to live-in)
Community Food Products Geography
Shopping Media Future City size
Sports Achievements Culture Stage in lifecycle
6. Demographics– age, education, income, occupation, family structure, gender,
geographic location.
• Media pattern – the specific media the consumers utilize.
• Usage Rates – measurement of consumption within a specified port category; often
consumers are characterized as heavy, medium, light or nonusers.
VALS – Introduced in 1978 VALS (Values & Lifestyles) given by SRI Consulting Business
Intelligences is the most popular application of psychographic research by marketing
managers.
SRIC – BI has identified there primary self orientations.
• Principle Oriented – These individuals are guided in their choices by their beliefs and
principles rather than by feelings, events or desire for approval.
• Status oriented – The actions, approval and opinion of others heavily influence these
individuals.
Experiences and Makers : Action Oriented
Experiences – are young, vital, enthusiastic, impulsive and rebellious. They seek variety
and excitement, savoring the new, the offbeat and the …..
Makers – are practical people who have constructive skills and value self sufficiency.
They live within a traditional context of family, practical work and physical recreation and
have little interest in what lies outside that context.
7. Actualizers/Innovation – are successful, sophisticated active, take charge people with
high self esteem and abundant resources. They are interested in growth and seek to
develop, explore and express themselves in a variety of ways.
Strugglers/Survivors – Their lives are constricted. They are poor with limited education
and skills, without strong social bonds, frequently elderly and concerned about their
health they are often resigned and passive.
Action Oriented – These individual desire social or physical activity, variety and risk
taking.
Fulfields and believers: Principle oriented
Fulfields – are mature, satisfied, comfortable, reflective people who value order,
knowledge and responsibility. They are well educated and are in professional occupation.
Believers – are conservative, conventional people with concrete beliefs based on
tradition established codes: family, community, church & the nation.
Achievers & strivers: Status oriented
Achievers – they are successful career and work oriented people who like to and
generally do, feel in control of their lives. They value consensus, predictability and
stability over risk, intimacy and self discovery.
Strivers – they seek motivation, self definition and approval from the world around them.
8. They are striving to find a secure place in life. They are concerned about opinion and
approval of others, environmental factors affecting consumers.
They are of two types:
1. Internal variables
– They comprise of factors that are present within the consumers.
– They differ with individuals.
They include:
• Motivation
• Perceptions
• Learning
• Beliefs
• Values
• Customer & attitude
• Personality
2. External variables: They are present outside the customer and influences his buying
behaviour. They include:
• Consumer culture
• Social factors
• Reference grp
• Family & roles
• Status
9. Decision-Making Process – A decision is the selection of an action from two or more
alternative choices.
Buying Roles:
1. Initiator – A person who first suggests the idea of buying the part/service.
2. Influencer – A person whose view/advice infevers the decision.
3. Decider – A person who decides on any component of a buying decision – where to
buy, how to buy etc.
4. Buyer – The person who makes the actual purchase.
5. User – A person who consumes/uses the pelt/service.
Buying Behaviour – Consumer decision-making varies with the type of buying decision.
Atypes of consumer behavior has been identified based on the degree of involvement and
the degree of differences amongst the brands.
10. High Involvement Low Involvement
Complex Buying Variety seeking buying behaviours
Behaviour (e.g. cookies, dominated by)
(expensive, bought infrequently,
Significant
risky, highly self expressive e.g.
difference
car, laptop, house)
between brands
Dissonance reducing Habitual buying
Buying Behaviour Behaviour
Few differences e.g. carpet (e.g. salt) (brand familarity leads to
between brands (First acted, then acquired new purchase)
beliefs, then set of attitude)
11. Levels of Consumer Decision-Making
(i) Extensive Problem Solving – When consumers have no established criteria for
evaluating a pelt category or specific brands in that category or have not narrowed the
no.. Of brands they will consider to a small manageable subset, their decision-making
efforts can be classified as extensive problem solving.
(ii) Limited Problem Solving – At this level of problem solving, consumers already have
established the basic criteria for evaluating the pelt category and the various brands in
the category. However they have not fully established preferences concerning a select
group of brands.
(iii) Routinized Response Behaviour – At this level consumers have experience with
the pelt category and a well established set of criteria with which to evaluate the brands
they are considering. In some situations they may search for a small amt. of additional
information in others they simply review what they already know.
Models of consumers: Four views of Consumer Decision Making:
(i) An Economic View – In this the consumer has been characterized as making rational
decisions.
(ii) A Passive View – Opposite to rational economic view of consumers is the passive
view that depicts the consumer as basically not submissive to the self servicing interests
and promotional efforts of marketer.
12. (iii) A Cognitive View – It potrays the consumer as thinking problem solver. This model
focuses on the process by which consumers seek and evaluate information about
selected brands and retail outlet.
(iv) An Emotional View – Consumer can be a emotional or impulsive buyer and is likely
to associate deep feelings or emotions as joy, fear, love, hope, fantasy with certain
purchases/possessions.
13. Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Behaviour
Five Stage Model of Consumer Buying Behaviour
14. Firms Marketing External Influence
Efforts Socio-cultural Env.
• Product • Family
Input • Promotion • Informal Sources
• Price • Non comm. sources
• Social class
• Channel of ……. • Subculture/culture
Consumer Decision-Making
Need Recognition Psychological Field
• Motivation
Process Prepurchase search • Perception
• Learning
Evaluation of • Personality
Alternatives • Attitude
Experience
Post-purchase behaviour
Purchase
• Trial
• Repeat purchase
Output Model of
Post-purchase consumer
evaluation decision
making
15. CULTURAL
SOCIAL
PERSONAL
• Culture PSYCHOLOGICAL
• Age & life
• Reference cycle stage • Motivation
Group
• Occupation • Perception BUYER
• Subculture • Lifestyle • Learning
• Personality & • Beliefs & Attitudes
• Family self concept
• Economic
• Social class
• Roles & circumstances
Statuses
Factors Influencing Consumer Behaviour
16. An Overview of Problem Recognition
How consumers fell Process & factors of His expectations from the
about the product problem recognition composition of a new
product
Existing consumer Desired consumer
position position
Perceived gap/
Discripancy tension
Contributed by (Threshold level
problem)
Stock out Problem recognition Recognition of new need
situation
Dissatisfaction with Every gap does not cross the
present stock threshold level. Marketers Generation of new wants
increase the gap and increase
Availability of new pelt offering
the tension level so that
Enhancement in funds purchase can be made. Changing environmental
circumstances
Marketing efforts
17. Types of Problem Recognition
Immediacy of Solution
Expectancy of Immediate Solution Immediate Solution
Problem Required not Required
Occurance of Routine Planning
Problem Expected
Occurance of Emerging Evolving
Problem unexpected
18. Information sources for a purchase decision
Information sources
Internal External
Information Information
Actively Acquired Passively Acquired Actively Acquired
Past Personal Low involvement
Searches experience learning
Independent Personal contacts Marketer Experimental
Groups Information
Magazines, consumer Friends/Family Sales person website (Pdt inspection/
groups and govt. advt. pdt trial)
agencies
19. All Brands
Known Brands Unknown brands
(1)
Evolved set Inept set Inert set
Acceptable Unacceptable Indifferent Over-looked
Brands Brands Brands Brands
(2) (3) (4)
Not
Purchased
Purchased
Brands
Brand
(4) (5)
20. All Brands
Known Brands Unknown brands
(1)
Evolved set Inept set Inert set
Acceptable Unacceptable Indifferent Over-looked
Brands Brands Brands Brands
(2) (3) (4)
Not
Purchased
Purchased
Brands
Brand
(5)
21. How Consumer Use or Dispose of Products
Rent it
Get rid of it
temporarily
Lend it Rent it
Lend it
Give it
Trade it Direct to consumer
Product Get rid of it
permanent Through middleman
Sell it
Throw it away To intermediary
Use it to serve
original purpose
Keep it Convert it to serve
new purpose
Store it
22. Product
value
Services
value Total
Personal Customer
value value
Image
value Customer
Delivered
Monetary Value
cost
Time
cost Total
Customer
Energy cost
cost
Psychic
cost
23. Models of Consumers – Three views of consumer decision making:
The term “models of consumers” refer to a general view/perspective as to how (and why)
individuals behave as they do.
(iii) Economic view
(iv) Passive view
(v) Cognitive view
