“Consumer behavior can be defined as the decision-making process and physical activity involved in acquiring, evaluating, using and disposing of goods and services.” - (Mathin Khan, 2006: Consumer Behaviour)

1. Mahfud Achyar
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2. “Consumer behavior can be defined
as the decision-making process and
physical activity involved in
acquiring, evaluating, using and
disposing of goods and services.”
- (Mathin Khan, 2006: Consumer
Behaviour)
The unique properties of the virtual environment make
interaction in the virtual world comparatively
inexpensive, painless, and simple.

3. The factors that influence consumer behaviour can be classified
into internal or (individual determinants) and, external
environmental factors.
Internal
• Motivation and
involvement
• Attitude
• Personality and self
concept
• Learning and Memory
• Information Processing External
• Cultural Influences
• Sub-Cultural Influences

4. Consumers of all products are engaged in
low, medium and high involvement
information search.
There are various questions to be
considered.
• How do consumers choose among brand
alternatives?
• Do they use any choice rules?
• Do they select best alternatives or reject
bad ones?
• How do they find their way amidst many
brand alternatives with different
attributes?
“Attitude is the way we
think, we feel and act towards some aspect
of the environment.”

6. “A decision is the selection of an
action from two or more alternative
choices.”
The consumer-related models of decision making are discussed below:
(i) Economic Model: Customer is characterized as an Economic and he makes rational
decision.
(ii) Passive Model: It is opposite to Economic model and describes the consumer as impulsive
and irrational purchasers.
(iii) Cognitive Model: It portrays the consumer as a thinking problem solver. It focusses on the
process by which consumers seek and evaluate information on selecting brands and retail
outlets.

7. There are five stages in consumer decision making:
1. Problem recognition: A consumer recognizes a
need to buy a product.
2. Information search: Attempt is made to gain
knowledge about the product.
3. Evaluation and alternatives: The products which
can fulfil the needs are evaluated in terms of plus
and minus points.
4. Purchase action: The actual purchase is made
from store after consideration of a number of
factors.
5. Post-purchase behavior (followed sequentially):
This is how a consumer feels after using the
product, i.e., satisfaction or dissatisfaction.

8. Importance of Problem Recognition
(Need Recognition) or Identification of
Needs It is the first stage in decision-
making.
Problem recognition explains:
1. Why a buyer buys.
2. Gives definite direction to
subsequent purchase behavior.
3. Helps the marketer exert his
influence, so that the need is to be
recognized. A virtual circle exists
between them (problem recognition
and marketers stimuli).
The figure shows three types of
decision-making:
(i) Habitual decision-making or
routinized response behavior: Here
the information search is low, the
risk is low and the involvement is
also low.
(ii) Limited decision-making: This is
for products which have a higher
time, risk and money involvement.
(iii) Extended problem solving: In this
category, the risk involved is high,
the money involvement is much
more.

9.  Problem recognition is a perceived gap
between existing and desired consumer
position. Existing consumer position is
how one feels presently about the product.
 Desired position is his expectation and
anticipation about the products.
 Marketing stimuli influences the current or
desired state of mind or both.
 Perceived gap/discrepancy tension
(threshold level) problem recognition

10. 1. What problems consumers are facing.
2. Managers must know what market mix to develop to solve
the problem.
3. They actually want the consumers to recognize the problem.
4. Sometime managers suppress problem recognition.
a. Activity analysis focusses on a particular activity—
maintaining a lawn, preparing dinner, lighting the fire
place.
b. Product analysis deals with the use of product.
c. Problem analysis takes an opposite approach.
d. Human factor research attempts to determine human
capabilities in area of vision, strength, response time,
fatigue.
e. Emotions research marketers find the role of emotions in
decision-making, i.e., emotions associated with certain
products or brands.

11. 1. Khan, Matin. 2006. Consumer Behavior
and Advertising Management. New Age
International (P) Limited Publishers :
India.
2. Solomon, R. Michael & Natalie T. Wood.
2009. Virtual Social Identity and
Consumer Behaviour. Library of
Congress Cataloging-in-Publication Data
: United States of America.