UNIT - V

CONSUMER BEHAVIOUR

CONSUMER BEHAVIOUR

Consumer behavior is the reaction of individuals in obtaining, using goods & services of a particular type.

“It is the process where by individuals decide whether, when, where, how, from & whom to purchase goods & services”

- C.G. WALTER & G.W. PAUL “Buyer behavior is all psychological, social & physical

behavior of potential customers as they become aware of evaluate, purchase, consume & tell other people about the products & services”.

- WEBSTER

FACTORS INFLUENCING CONSUMER DECISION / BEHAVIOUR:

CULTURAL FACTORS: Sub – cultures, social class – caste, religion, languages etc….

SOCIAL FACTORS: Reference groups, family, role and status {Buying roles – initiators, decider, influencer, purchaser, consumer.}

PERSONAL FACTORS: The personal factors are age, life cycle stages, occupation, economic situation [ income], life style, personality, self – concept.

PSYCHOLOGICAL FACTORS: Motivation, perception, learning, beliefs & attitudes.

STAGES/ PROCESS/ DECISION MAKING OF CONSUMER BEHAVIOUR:

NEED RECOGNITION

INFORMATION SEARCH

EVALUATING OF ALTERNATIVES [SCREENING]

PURCHASE DECISION

POST PURCHASE BEHAVIOUR

MODELS OF CONSUMER BEHAVIOUR

I. ECONOMIC MODEL { MARSHILLIAN MODEL }:

a. Price effect

b. Income effect

c. Substitution effect [ Cross demand ]

d. Variable proportions – Marginal utility

II. PSYCHOLOGICAL MODEL: [ MOTIVATION ] {ABHRAHAM HEROLD} – MASLOWIAN/ NEED HIERARCHY / MOTIVATION MODEL OF MASLOWIAN.

Self-Actualization

Self- esteem needs

Social needs

Safety / security needs

Physiological / physical needs

Higher level needs

Lower / basic needs

III. LEARNING / PAVLOVIAN MODEL :

• Drive, drivers, triggering cues.• Non – triggering cues.

IV. INPUT – PROCESS – OUTPUT MODEL :

• Need recognition.• Product awareness.• Evaluation.• Intention.• Post purchase behavior.

V. BUYER’S BLACK BOX MODEL :

MARKETINGSTIMULI

ProductPricePromotionPlace

OTHER STIMULI

EconomicCulturalTechnologicalPolitical

BUYER’S BLACK BOX

Characteristics Decision• Cultural Problem - recognition• Social Information - research•Personal Evaluation• Psychological Decision post - purchase behavior

BUYER’S RESPONSE

•Product choice

•Brand choice

•Dealer choice

•Purchase timing

•Purchase amount

VI.SOCIOLOGICAL MODEL OF CONSUMER BEHAVIOUR:

This model is concerned with the society. A consumer is a part of the society & he may be a member of many groups in a society. His buying behavior is influenced by these groups. By primary groups of family, friends & close associates influence a lot on his buying behavior.

A consumer may be a member of political party. Where his dress norms are different. Thus, he has to buy things that confirmed to his life styles in different groups.

FRUEDIAN MODEL OF CONSUMER BEHAVIOUR – SIGMUND FRUED

Psycho – analytical model:

ID – Which generates desire.

EGO – Ego gives the ways to fulfill your desire.

SUPER EGO – It will tell you what is good & what is bad for a human being.

ORGANISATIONAL BUYING BEHAVIOUR:

TYPES OF ORGANISATIONAL BUYER:

a. Industrial markets – To manufacture, production, assemble.

b. Resellers markets – They buy to sell to somebody.

c. Government markets.

ENTRYPORT TRADE – Trade between one country to another

country.

CHARACTERISTICS OF BUSINESS MARKETS:

Very few buyers Larger buyers Geographically concentrated buyers Derived demand Inelastic demand Fluctuating demand Professional purchasing

TYPES OF BUYING SITUATIONS:

• Straight re - buy• Modified re – buy• New task

FACTORS INFLUENCING ORGANISATIONAL BUYER:

Environmental factors

Organizational factors

Interpersonal factors

Personal / Individual factors

ORGANIZATIONAL BUYING PROCESS:

Problem recognition / Need recognition General need recognition Product specification Suppliers search Proposal solicitation Order routine – specification Performance review