CONSUMER
MARKET
AND
CONSUMER
BUYER
BEHAVIOR

Lesson 1: Characteristics
Affecting Consumer Behavior:
Consumer buying behavior refers to the buying
behavior of final consumers.

Cultural Social
Personal Psychological

Cultural
Culture is the most basic cause of a
person’s wants and behavior. It is a set of
basic values, perceptions, and behaviors
learned by a member of the society.

Social
References Groups
People are
influenced by the
group they belong.
Family Members
Family members
will give strong
influence to a
person’s decision.
Roles and Status
A role of an
individual in the
community will
influence his/her
decision

Personal
Age
and
Life
Cycle
A Person’s
Occupation
Economic
Situation
Lifestyle Personality

Psychological
Factors
Motivation Perception Learning
Beliefs
/
Attitudes

Lesson 2: Types of Buying
Decision Behavior:
There are four types of buying behavior

Complex
A buying behavior which is characterized
by high consumer involvement in a
purchase and perceived significant
differences among brands.

Dissonance –
Reducing Buying
Behavior
A buying behavior which is characterized
by high involvement with expensive,
infrequent, risky purchase but sees little
differences among brands

Habitual
A buying behavior which is characterized
by low consumer involvement in the
purchase and little significant brand
differences.

Variety – Seeking
Buying Decision
Behavior
A buying decision with a low involvement
in the purchase but perceive significant
brand differences.

Lesson 3:
Buyer Decision Process

Need Recognition Information Search
Evaluation of
Alternatives
Purchase Decision
Post – Purchase
Decision

Buyer Decision
Process
For New Products

Awareness Interest
Evaluation
TrialAdoption

Consumer Behavior: The Psychology of
Marketing
The study of consumers helps firms and organizations
improve their marketing strategies by understanding issues
such as:

• The psychology of how consumers think, feel, reason,
and select between different alternatives (e.g., brands,
products, and retailers);

• The psychology of how the consumer is influenced by
his or her environment (e.g., culture, family, signs,
media);

• The behavior of consumers while shopping or making
other marketing decisions;

• Limitations in consumer knowledge or information
processing abilities influence decisions and marketing
outcome;

• How consumer motivation and decision strategies differ
between products that differ in their level of importance
or interest that they entail for the consumer; and

• How marketers can adapt and improve their marketing
campaigns and marketing strategies to more effectively
reach the consumer.

Consumer Behavior –
“is the study of individuals,
groups, or organizations and
the processes they use to
select, secure, use and
dispose of products,
services, experiences, or
ideas to satisfy needs and
society.”

There are four main
applications of
Consumer Behavior:

For Marketing
Strategy –
understanding that
consumers are more
receptive to food
advertising when they are
hungry, we learn to
schedule snack
advertisements late in the
afternoon.

For Public Policy –
In 1980’s, Accutane, a mere
miracle cure to acne, was
introduces. Unfortunately
Accutane resulted in severe
birth defects if taken by
pregnant woman.

Social Marketing –
Involves getting ideas
across to consumers rather
than selling something.

As a final benefit,
studying consumer
behavior should make
us better consumers.

Consumer Needs

People buy to satisfy all types of needs, not just for
utilitarian purposes. These needs as identified by Maslow
maybe physical or biological, safety or security, love and
affiliation, prestige and esteem or self fulfillment

Purchase Patterns

While all of this
information might be
helpful to marketers, it is
equally important to
understand what compels
the consumer to actually
make a purchase, as
opposed to just
generating interest.

Interpreting
Consumer Behavior

When Market researchers
begin evaluating the
behavior of the consumer, it
is a mistake to rely on
conventional wisdom,
especially when it is
possible to study the actual
activity in which consumers
are engaged when using a
product or service.

There are two
principal ways to
evaluate the
motivation behind
consumer
purchases:

Direction
(what they want)

Intensity
(how much they want it)

Influencing
Consumer Behavior

One of the best ways to influence
consumer behavior is to give buyers an
acceptable motive.

There are range of alternative models, but
that of AIAPR which most directly links to
the steps in the marketing / promotional
process is often seen as the most generally
useful;

Awareness

Interest

Attitudes

Purchase

Repeat Purchase