What we buy, how we buy, where and when we buy, in how much quantity we buy depends on our perception, self-concept, social and cultural background and our age and family cycle, our attitudes, beliefs values, motivation, personality, social class and many other factors that are both internal and external to us.

1. Consumer Behaviour
Seta A. Wicaksana
Founder and CEO www.humanikaconsulting.com

2. Seta A. Wicaksana
0811 19 53 43
wicaksana@humanikaconsulting.com
• Managing Director of Humanika Amanah Indonesia – Humanika Consulting
• Managing Director of Humanika Bisnis Digital – hipotest.com
• Wakil Ketua Asosiasi Psikologi Forensik Indonesia wilayah DKI
• Business Psychologist
• Certified of Assessor Talent Management
• Certified of Human Resources as a Business Partner
• Certified of Risk Professional
• Certified of HR Audit
• Certified of I/O Psychologist
• Dosen Tetap Fakultas Psikologi Universitas Pancasila
• Pembina Yayasan Humanika Edukasi Indonesia
• Penulis Buku : “SOBAT WAY: Mengubah Potensi menjadi kompetensi”
Elexmedia Gramedia 2016, Industri dan Organisasi: Pendekatan Integratif
menghadapi perubahan, DD Publishing, 2020. Human Factor Engineering:
Manusia dan Lingkungan Kerja. DD Publishing, 2021, Psikologi Industri dan
Organisasi, DD Publishing, 2021
• Organizational Development Expertise
• Sedang mengikuti tugas belajar Doktoral (S3) di Fakultas Ilmu Ekonomi dan
Bisnis Universitas Pancasila Bidang MSDM Disertasi Peran Utama Budaya
Organisasi dalam Agilitas Organisasi di Lembaga Pemerintah Non
Kementrian XYZ
• Fakultas Psikologi S1 dan S2 Universitas Indonesia
• Mathematics: Cryptology sekolah ikatan dinas Akademi Sandi Negara

3. • We are all consumers. We buy groceries, computers, and cars. We purchase services ranging
from bank accounts to college educations. However, we also know that consumers are different
from one another.
• We buy different clothes, drive different cars, and eat different foods. Moreover, even the same
consumer can make different decisions depending on the situation. So how are we to construct
coherent marketing strategies?
• we will examine how and why consumers behave the way that they do.
• We will explore our intuitions about our own behavior.
• We will learn about theories developed in marketing, psychology, and other behavioral sciences.
• And we will learn how to use these theories to predict how consumers will respond to different
marketing activities.
Introduction

4. Understanding the
consumer
• What we buy, how we buy, where and when we
buy, in how much quantity we buy depends on
our perception, self concept, social and cultural
background and our age and family cycle, our
attitudes, beliefs values, motivation, personality,
social class and many other factors that are both
internal and external to us.
• While buying, we also consider whether to buy
or not to buy and, from which source or seller to
buy.
• In some societies there is a lot of affluence and,
these societies can afford to buy in greater
quantities and at shorter intervals. In poor
societies, the consumer can barely meet his
barest needs.
• The marketers therefore tries to understand the
needs of different consumers and having
understood his different behaviors which require
an in-depth study of their internal and external
environment, they formulate their plans for
marketing.

5. Why Study
Consumer Behavior
• The marketer helps satisfy needs and
wants through product and service
offerings.
• For a firm to survive, compete and grow,
it is essential that the marketer identifies
these needs and wants, and provides
product offerings more effectively and
efficiently than other competitors.
• A comprehensive yet meticulous
knowledge of consumers and their
consumption behavior is essential for a
firm to succeed.
• Herein, lies the essence of Consumer
Behavior, an interdisciplinary subject,
that emerged as a separate field of study
in the 1960s.

6. Why the field of CB
developed:
• In order to succeed in any business, and
especially in today’s dynamic & rapidly
evolving marketplace, marketers need
to know everything they can about
consumers – what they want, what they
think, how they work, how they spend
their leisure time. The field of CB is
rooted in the Marketing concept.
• Production concept
• Product concept
• Selling Concept
• Marketing concept- CB developed from
this concept. Here everything is
executed from the point of view of
Consumer.

7. Emergence of
Consumer Behavior
• Consumer behavior in management is a very young discipline.
• Various scholars and academicians concentrated on it at a
much later stage. It was during the 1950s, that marketing
concept developed, and thus the need to study the behavior
of consumers was recognized.
• Marketing starts with the needs of the customer and ends
with his satisfaction. When everything revolves round the
customer, then the study of consumer behavior becomes a
necessity.
• Consumer behavior can be defined as the decision-making
process and physical activity involved in acquiring, evaluating,
using and disposing of goods and services.
• This definition clearly brings out that it is not just the buying of
goods/services that receives attention in consumer behavior
but, the process starts much before the goods have been
acquired or bought.
• Then follows a process of decision-making for purchase and
using the goods, and then the post purchase behavior which is
also very important, because it gives a clue to the marketers
whether his product has been a success or not.

8. Consumer Behavior
• As a field of study it is descriptive and also analytical/
interpretive.
• It is descriptive as it explains consumer decision
making and behavior in the context of individual
determinants and environmental influences.
• It is analytical/ interpretive, as against a backdrop of
theories borrowed from psychology, sociology, social
psychology, anthropology and economics, the study
analyzes consumption behavior of individuals alone
and in groups.
• It makes use of qualitative and quantitative tools and
techniques for research and analysis, with the
objective is to understand and predict consumption
behavior.
• It is a science as well as an art. It uses both, theories
borrowed from social sciences to understand
consumption behavior, and quantitative and
qualitative tools and techniques to predict consumer
behavior.

9. Interdisciplinary
Nature
• Psychology (the study of the individual: individual
determinants in buying behavior)
• Sociology (the study of groups: group dynamics in
buying behavior)
• Social psychology (the study of how an individual
operates in group/groups and its effects on buying
behavior)
• Anthropology (the influence of society on the
individual: cultural and cross-cultural issues in buying
behavior)
• Economics (income and purchasing power)

10. Questions answered
To understand the likes and dislikes of the
consumer, extensive consumer research
studies are being conducted. These
researches try to find out:
• What the consumer thinks of the
company’s products and those of its
competitors?
• How can the product be improved in their
opinion?
• How the customers use the product?
• What is the customer’s attitude towards
the product and its advertising?
• What is the role of the customer in his
family?

11. Consumer
Behavior Roles
• Initiator : Initiator is the individual who determines
that some need or want is not being fulfilled and
authorizes a purchase to rectify the situation.
• Gatekeeper : Influences the family’s processing of
information. The gatekeeper has the greatest
expertise in acquiring and evaluating the information.
• Influencer : Influencer is a person who, by some
intentional or unintentional word or action,
influences the buying decision, actual purchase
and/or the use of product or service.
• Decider : The person or persons who actually
determine which product or service will be chosen.
• Buyer : Buyer is an individual who actually makes the
purchase transaction.
• User(s) : User is a person most directly involved in
the use or consumption of the purchased product.

12. Example 1
A child goes to a kindergarten school. She
comes back home and asks her parents to
buy her a set of color pencils and crayons.
Now the roles played are:
1. Initiator: the child in nursery school
2. Influencer: a fellow classmate
3. Decider: the father or the mother
4. Buyer: the father or the mother
5. User: the child

13. Example 2
The lady of a house who is a housewife and
spends her day at home doing household
chores watches TV in her free time. That is
her only source of entertainment. The TV at
home is giving problem. She desires a new
TV set and says that she wants an LCD
plasma TV. Now the roles played are:
1. Initiator: the housewife (mother)
2. Influencer: a friend / neighbor
3. Decider: the husband or the son
4. Buyer: the husband or the son
5. User: the family

14. Whom should the marketers
target – Buyers or Users?
Does the decision depend on the type of products?
Different household members can perform each of
the roles singly or collectively.
• For example,
in deciding which videocassette to rent for
entertainment, parents might decide on the
movie
but children may play a role directly by making
their preferences known, or indirectly when
parents keep the children’s likes in mind.
• One parent may actually go to the store to get
the
video, but the entire family may watch it

15. Disciplines
involved in
the Study of
Consumer
Behavior
• Consumer behavior was a relatively new field of study during the
second half of 1960s without a history or research of its own.
• It is in fact a subset of human behavior and it is often difficult to
draw a distinct line between consumer-related behavior and
other aspects of human behavior.
• The discipline of consumer behavior has borrowed heavily from
concepts developed in other disciplines of study such as
psychology, sociology, social psychology, cultural anthropology
and economics.

16. Psychology
• Psychology is the study of the individual which includes motivation, perception, attitudes,
personality and learning theories.
• All these factors are critical to an understanding of
consumer behavior and help us to comprehend consumption related needs of individuals, their
actions and responses to different promotional messages and products and the way their
experiences and personality characteristics influence product choices.

17. Disciplines involved in the
Study of Consumer Behavior
• Sociology is the study of groups. When individuals form groups, their
actions are sometimes quite different from the actions of those very
individuals when they are operating alone. The influences of group
memberships, family and social class on consumer behavior are
important for the study of consumer behavior.
• Social psychology is a combination of sociology and psychology and
studies how an individual operates in a group. It also studies how those
whose opinions they respect such as peers, reference groups, their
families and opinion leaders influence individuals in their consumption
behavior.
• Cultural anthropology is the study of human beings in society. It
explores the development of core beliefs, values and customs that
individuals inherit from their parents and grandparents, which influence
their purchase and consumption behavior. It also studies subcultures
and helps compare consumers of different nationalities and cultures.
• Economics: An important aspect of the study of economics is the study
of how consumers spend their funds, how they evaluate alternatives
and how they make decisions to get maximum satisfaction from their
purchases.
• Despite the fact that consumer behavior, as a field of study, is relatively
of recent origin, it has grown enormously and has become a full-blown
discipline of its own and is used in the study of most programmes of
marketing study.

18. Development of Marketing
Concept
• Marketing concept evolved in late 1950s and the
field of consumer behaviour is deeply rooted in this
concept.
• After World War II, there was great demand for
almost all sorts of products and the marketing
philosophy was to produce cheap goods and make
them available at as many places as possible.
• This approach suited the marketers because demand
exceeded supply and consumers were more
interested in obtaining the product rather than in any
specific features.
• This approach is called a production orientation and
is based on the assumption that consumers will buy
what is available and would not wait for what they
really want . The marketer does not really care to
know what consumer preferences are.

19. Development of
Marketing Concept
• The next stage has been product orientation, which
assumes that consumers will buy the product that
offers them the highest quality in terms of
performance and features.
• The company makes all efforts to improve product
quality. The focus is on the product rather than on
what the consumers need or want.
• Professor Levitt has called this excessive focus on
product quality as “marketing myopia.”
• This we see happen in highly competitive markets
where some companies keep on adding
unnecessary features, passing their cost on to the
consumers, in hopes of attracting them.

20. Development of
Marketing Concept
• Selling orientation evolved as a natural consequence of production orientation
and product orientation.
• The marketer is primarily focused on selling the product that it unilaterally
decided to produce.
• The assumption of this approach is that consumers would not buy enough of
this product unless they are actively and aggressively persuaded to do so. This
approach is known as “hard-sell” and consumers are induced to buy what
they do not want or need.
• The problem with this approach is that it does not take consumer satisfaction
into account. This often leads to dissatisfaction and unhappiness in consumers
and is likely to be communicated by word-of mouth to other potential
consumers, discouraging them to buy the product.
• Soon marketers realized that they could easily sell more goods if they
produced only those goods that they had first confirmed consumers would
buy.
• Thus, consumer needs and wants became the marketer’s primary focus. This
consumer-oriented marketing approach came to be called as the marketing
concept.
• The important assumption underlying marketing concept is that a company
must determine the needs and wants of its target markets and deliver the
desired satisfactions more efficiently and effectively than the competition.
This is the key to successful marketing.

21. The Diversity of
Consumer Behavior
• Human being differs from one to another. It is not easy to
predict the human behavior. Human being differs in their
taste, needs, wants and preferences. But one constant thing
is that we all are consumers.
• CB is a vast and complex subject. Understanding CB and
“knowing consumers’ are not that simple.
• It is almost impossible to predict with one hundred per cent
accuracy, how consumer(s) will behave in a given situation.
• Marketers are interested in watching people shopping,
parading, playing, entertaining, as they are keenly interested
in the wide variety of behaviors they display.
• The efforts of all marketers are to influence the behavior of
consumers in a desired manner.

22. The Diversity
of Consumer
Behavior
• The term CB describes two different kinds of consuming entities: the
personal consumer and the organizational consumers. The Personal
consumer buys goods and services for his or her own use, for the use
of the household or as a gift for a friend. In each of these contexts,
individuals, who are referred to as end users or ultimate consumers,
buy the products for fine use.
• The second category of consumer- the organizational consumer-
includes profit and not-for-profit businesses, government agencies
(local, state, and national), and institutions (e.g. Schools, hospitals,
and prisons), all of which must buy products, equipments and services
in order to run their organization.

23. Business
School
Education
• Consumers also stand to benefit directly from orderly investigations of their own
behavior. This can occur on an individual basis or as part of more formal educational
programs. As we study what has been discovered about the behavior of others, we can
gain insight into out own interactions with the marketplace.
• For example, when we learn that a large proportion of the billions spend annually on
grocery products is used for impulse purchases, and not spent according to pre-planned
shopping lists, we may be more willing to plan our purchases in an effort to save money.
In general, as we discover the many variables that can influence consumers’ purchases.
We have the opportunity to understand better how they affect our own behavior.
• What is learned about consumer behavior can also directly benefit consumers in a more
formal sense. The knowledge can serve as data for the development of educational
programs designed to improve consumers’ decision-making regarding products and
services. Such courses are now available at the high school and college level and are
becoming increasingly popular. To be most effective, these educational programs should
be based on a clear understanding of the important variables influencing consumers.

24. Consumer
Movement
• Marketing evolved through production concept to
marketing concept. And marketing concept is nothing but
consumer-oriented approach.
• Until company satisfy the needs and wants of consumer
the whole efforts to bring the product in the market fails.
Companies had to engage in extensive marketing research
to identify unsatisfied consumer needs.
• In this process, marketers learned that consumers were
highly complex as individuals had very different
psychological and social needs, quite apart from their
survival needs.
• They also discovered that needs and priorities of different
consumer segments differed significantly.
• They realized that to design products and develop suitable
marketing strategies that would satisfy consumer needs,
they had to first study consumers and the consumption
related behavior in depth.
• In this manner, market segmentation and marketing
concept paved the way for the application of consumer
behavior principles to marketing strategy.

26. Ethics of Marketing &
Corporate Environment
• No environmental degradation- less
promotion for tobacco & drug- the societal
marketing concept requires that all marketers
adhere to principles of social responsibility in
the marketing of their goods & services.
• According to the societal marketing concept,
fast-food restaurants should develop foods
that contain less fat and starch and more
nutrients, and marketers shouldn’t advertise
alcoholic beverages or cigarettes to young
people, use young models or professional
athletes in liquor or tobacco advertising.
• Some critics are concerned that an in-depth
understanding of CB makes it possible for
unethical marketers to exploit human
vulnerabilities in the marketplace and engage
in other unethical marketing practices in order
to achieve individual business objectives.
• As a result, many trade associations have
developed industry wide code of ethics.

27. Ethics of Marketing
& Corporate
Environment
• Ethics is often misunderstood and generates
controversies. There is need to examine the
concept and support its application to marketing
decisions that are acceptable and beneficial to
society.
• The difficulty is that what is ethical for one
individual may be unethical for another. Ethical
conduct may also differ in different societies.
• in business context, employees are expected to live
up to a set of laid down ethical standards. The real
test of ethics people face is when things are not
going well and pressures build.
• According to Andrew Stark, ethical challenges are
mainly in two situations: (1) decisions in situations
commonly called 'grey-areas' where the right
decision is debatable, and (2) decisions for issues
where the right course of action is clear but
individual and company pressures, and
circumstances force good-intentioned marketing
managers in the wrong direction.

28. Ethics of Marketing
& Corporate
Environment
• Ethics refer to values and choices and focuses on
standards, rules and codes of moral conduct that
control individual behavior.
• Erik N. Berkowitz et al. maintain that: ethics are
moral principles and values that govern the
actions and decisions of an individual or group. In
the marketing context, ethics is the moral
evaluation of marketing activities and decisions
as right or wrong.
• Whether a marketing behavior is ethical or
unethical is determined on the basis of
commonly accepted principles of behavior
established by the society's expectations of
conduct, various interest groups, competitors,
company's own management, and personal and
moral values of the individual.
• Each individual decides how to behave on the
basis of these principles, and the public at large
and various interest groups evaluate if the actions
are ethical or unethical.

29. Ethics of Marketing &
Corporate Environment
• Ethics in marketing practices is an important issue and
needs developing understanding and awareness to bring
improvement in its application.
• Ethical issue refers to some situation, problem, or
opportunity that can be recognized and requires a
person or organization to select from among different
actions that must be evaluated as right or wrong, or
ethical or unethical.
• For instance when marketing managers or consumers
feel manipulated or cheated, it becomes an ethical issue,
irrespective of the fact that the action happens to be
legally right Whatever the reasons for unethical
instances, what is necessary after the issue is identified
is that Notes
marketing managers must decide how to resolve it.
• This requires knowing most of the ethical issues related
to marketing that often arise. In general, most issues
relating to unethical behavior occur in case of products
and promotions.

30. Ethics of Marketing &
Corporate
Environment
• Product-related ethical issues may include little or no information about
safety, function, value, or use instructions. One example can be used of
inferior materials, or components to cut costs without any information to
customers.
• It is ethically wrong not to inform customers about the changes in
product quality, as this failure is apparently a form of dishonesty. Issuing
false medical certificates is unethical for medical practitioners as it raises
questions about their honesty in general.
• Promotion of products and services, etc., often furnishes a number of
instances of a variety of situations that involve ethical issues, such as
false and misleading advertising, and manipulative or deceptive sales
promotions.
• There have been instances of misleading ads about obesity control and
weight reduction programmes that mislead customers - and some went
to the courts. Many ads are criticized for using excessive nudity to attract
an audience.
• Use of bribery or false promises in personal selling situations is an ethical
issue. Occasionally, media reports highlight cases of unethical practices
by organizations involved in offering bribes to procure large orders. Such
practices damage trust and fairness and ultimately harm the concerned
organization and tarnish its image.

31. example
• Fair and Lovely, skin whitening cream
marketed in India by Hindustan Unilever, has
constantly used an advertising strategy that
depicts women of darker complexion as
being inferior (the most controversial being
such women being unable to find a suitable
groom). Fair & Lovely has played in well to
exploit the race/color insecurities that has
plagued Indian society for centuries, to sell
skin 'whitening' creams.
• This shows that how big companies like HUL,
make ethical sacrifices for marketing their
products.

32. Learning and Giving for Better Indonesia
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