CONSUMER BEHAVIOUR

CONSUMER BEHAVIOUR It is a segment or part of human behaviour. Human behaviour refers to the total process whereby the individual interacts with the environment. Every thought, feeling, or action that we have as individuals is part of human behaviour. Definition:Consumer behaviour is the study of how individuals, groups and organizations select, buy and dispose of goods, services, ideas or experiences to satisfy their needs and wants. Importance; It seeks to understand the consumer buying decision process and to answer the following questions; Who makes the market? Who do they buy from? What does the market buy? When do consumers buy? Why do they buy? How do they buy? The marketer wants to know how consumers respond to various marketing strategy the company might use. It helps the firm to find better ways to satisfy consumers through creating a suitable marketing mix that will meet customers needs and requirements better than competitors. Understanding Consumer Behaviour: 7 OS Framework: Who is the customer? Occupants what does the consumer buy? Objects why did they buy? Objectives Who participate in the process? Organisation When did they buy? Occasions Where do they buy/ Outlets How did they buy? Operations STEPS IN CONSUMER BUYING DECISION PROCESS: 1)Problem recognition; It is the stage when the individual recognizes a need or problem to be satisfied or solved. The need can be triggered by either an internal stimulus (hunger, thirst, or sex), or external stimulus (bread, car, or ad) 2)Information research; Of key interest to the marketer are the major information sources: Personal source- family neighbours, acquaintances Commercial sources- sales persons, dealers , packaging displays Public sources- mass media, consumer-rating organizations Experiential sources- handling, examining, or using the product

The relative amount and influence of these information sources vary with the product category and buyers characteristics. 3) Evaluation of alternatives; The consumer develops a set of brand beliefs about a brand, which make up the brand image. The brand image will vary with his/her experiences as filtered by the effects of selective perception, selective distortion and selective retention. The consumer may evaluate brands on the basis of price, product design, colour, packaging, aftersales service, etc. 4) Purchase decision; Having evaluated various solutions, the buyer may develop a predisposition to make a purchase. However, two factors can intervene between the purchase intention and the purchase decision that may change the purchase intention, e.g. The attitude of others Unanticipated situational factors In executing a purchase intention, the consumer may take up to five purchase subdecisions; A brand decision (brand A) Vendor decision (dealer 2) Quantity decision (1 computer) Timng decision (weekend) Payment method decision (cash/credit) 5) Post purchase behaviour; The consumer will experience some level of satisfaction or dissatisfaction. Buyers do not follow the general decision sequence at all times. The procedure may vary depending upon; The time available Levels of perceived risk The degree of involvement a buyer has with a product. Marketers should provide after sales service and support to assure customer satisfaction. Factors affecting consumer buying behavior DETERMINANTS OF CONSUMER BEHAVIOUR Three factors are identified as determinants to consumer behaviour namely economic determinants, psychological determinant and sociological determinant. Economic Determinants are personal income (individuals purchasing power), family income (total purchasing power of the family), the future income expectations (expected increase or decrease in availability of disposable income), availability of liquid asset (asset, which can be converted to cash), consumer market credit (if market conditions are good credit easily available) and social class (effluent class, upper-middle class, middle class, etc.). In compare the industrial buying process is much more formal process done according to predefined policy and norms. The key features of organization buying are its a formal and standardized process, it is done in large quantities and may be done at periodic intervals of time, and decision-making process usually involves more than one individual.

As there are determinants for consumer behaviour, similar industrial buying behaviour has its own set of determinants, which are overall objectives of the organization, technological capabilities of the organization which consist of information systems and network capabilities and finally organization structure, which includes its capital and number of employees. From above it can be comprehended that consumer behaviour is important factor in determining marketing policies.

The behavior of the consumer with regard to purchase is affected by various factors and these factors are uncontrollable. These factors are also called the determinants of consumer buying behavior. These factors affect the consumer behavior differently (see Figure). These are also called as the buying characteristics influencing consumer behavior. 1) Cultural factors and consumer behavior:a) Culture: culture is one of the important factors which affect the consumer buying behavior. It is the family values, beliefs, perceptions and preferences affect the consumer buying behavior. Like demand for fast food is the shift of cultural factors which created a market for them. b) Subculture: the culture includes subculture within it like nationality, religious group, and communities etc. which affect the consumer buying behavior. c) Social class: it is dividing the society in different social classes, where the members of same social class share same likings. 2) Social factor and consumer behavior:a) Family: the members of family play strong role on the consumer buying behavior. Family consists of:Influencer- the person who sense the need for purchase. Decider- the person who takes final buying decision. User- the person who uses the product. b) reference group: it is not only the family which affect the consumer buying behavior but also the group outside the family also affect the consumer buying behavior, with whom we interact like friends, neighbors, co- workers etc. c) Role and status: a person plays different role in the society. Like a role of son, husband, brother, father, business person etc. as per the role played by him the likings of the person effects. 3) Personal factors and consumer behavior:-

a) Age and life style: the consumer buying behavior changes with the age of the consumer like small child need toys, teenage needs fashionable clothes. b) Occupation: occupation also affects the consumer buying behavior. Like the executive likes to buy expensive suits. c) Income: the income also affects the consumer buying behavior. d) Life style: it is the way of living of the person. Like some people like luxury livings while some in simple living. d) Personality: personality also affects the consumer buying behavior. 4) Psychological factors and consumer behavior:a) Motivation: when the buyers need is raised to a particular level they become the motives which affect the consumer buying behavior. b) Perception: this is how the buyer receives, selects and organizes the information. c) Learning: learning affect the consumer buying behavior as a result of his experience. d) Beliefs and attitude: belief means the opinion; attitude means the feeling of buyer towards the object. So the marketer should try to fit their object to buyers existing attitude effect the consumer buying behavior.