2. What is Consumer Behavior?
The stages a consumer analyses before making a decision as to -
WHEN WHEREWHAT HOW FROM WHOMor or or or
To buy?
3. • It comprises of both mental and physical activities of consumer.
Consumer behavior is very complex and dynamic which keeps on
changing constantly.
4. Importance of Consumer Behavior
• To create better strategies for increasing profit.
• To take into consideration the customer’s health, hygiene & fitness.
• To know the buying decisions and how consumer make consumption.
• To analyze the consistent change in consumer’s tastes and preferences.
• Consumer behavior study is necessary to make pricing policies.
• To avoid future market failures.
5. Factors that affect Consumer Behavior
Consumer purchases are highly influence by two factors:
External
Internal
Cultural
Personal
Social
Psychological
7. ABOUT
The Psychological Factors are
the factors that talk about the
psychology of an individual
that drive his actions to seek
satisfaction.
8. Psychological factors that affect consumer behavior
• Motivation
A need that is sufficiently pressing to direct the person to seek satisfaction of the need.
Nina went to a nearby store and ordered chocolates for herself.
Why did Nina buy chocolates ?
She wanted to have dessert.
In the above example,
Dessert was the motivating factor for Nancy to purchase chocolates. There are several other factors
which motivate individuals to purchase products and services.
EXAMPLE
9. • Perception
What an individual thinks about a particular product or service is his/her
perception towards the same.
For someone an iPhone might be the best phone while for others it could be
just one of the best brands available.
Nina & Rose had a tiring day at work and thus wanted to have something while
returning from work.
Nina ordered a pizza coke while Rose preferred a baked vegetable sandwich.
Though both had the same motivation (hunger), but the products they purchased
were entirely different as Rose perceived pizza to be a calorie laden food.
EXAMPLE
10. Selective Attention - Selective attention refers to the process where individuals
pay attention to information that is of use to them or their immediate family
members.
An individual in a single day is exposed to numerous advertisements, billboards,
hoardings etc but he is interested in only those which would benefit him in any
way. He would not be interested in information which is not relevant at the
moment.
Selective Distortion - Consumers tend to perceive information in a way which
would be in line to their existing thoughts and beliefs.
Selective Retention - Consumers remember information which would be useful
to them, rest all they forget in due course of time. Michael wanted to purchase
a watch for his wife and thus he remembered the RADO advertisement which
he had seen several days ago.
There are three different processes which lead to difference in perception:
11. • Learnings
Learning comes only through experience. An individual comes to
know about a product and service only after he/she uses the
same. An individual who is satisfied with a particular
product/service will show a strong inclination towards buying the
same product again.
EXAMPLE
If a person purchases a Nokia phone and he is satisfied with the product and
its services, the next time he makes a decision to purchase a new phone, he
will most likely switch to Nokia, for he had good experience with the product
in the past.
12. • Belief and Attitude
Beliefs and attitude play an essential role in influencing the buying decision of consumers.
Individuals create a certain image of every product or service available in the market.
Every brand has an image attached to it, also called its brand image.
Consumers purchase products/services based on their opinions which they form towards
a particular product or service. A product might be really good but if the consumer feels it
is useless, he would never buy it.
EXAMPLE
Patanjali products.
