2. What is Consumer Behavior ?
● Consumer behavior is the study of how consumers buy and use products,
services, ideas, and experiences
● It is important because it helps businesses understand their customers
needs and wants
● Many businesses use consumer behavior to create products they KNOW
their customers will like
3. Types of
Consumer Behavior
Complex Buying Behavior
When a customer buys an
expensive and infrequently
purchased product
Customers are highly
involved
Ex: Treadmill, Car, House
Dissonance Reducing
Buying Behavior
When a customer has a hard
time differentiating many
brands and are worried about
the “right choice”
Customers are highly involved
Ex: TV, Lawnmowers,
Engagement RIng
Variety Seeking Buying
Behavior
When a customer wants to buy a
different brand in the same
product, not because they were
unsatisfied, but to try something
new
Customers are not highly involved
Ex: Toothpaste, Cologne, Shampoo
Habitual Buying
Behavior
When a customer buys a
product on a regular basis
Customers are not highly
involved
Ex: Bread, Eggs, Gasoline
4. Characteristics of
Consumer Behavior
● This is a process where a consumer decides what to buy, how to buy, when to buy, and
how much to buy
●
● Consumer behavior is constantly changing and is very complex and dynamic
●
● Consumer behavior starts before even buying and carries on to after a purchase
●
● It comes from both mental and physical activities
●
● Individual buying behavior is affected by many different factors from wants,
● needs, and interests. It is also affected by external factors
● like social groups, status, and environment
Learn more about factors in the
next slide
5. Factors that Drive Consumer Behavior
Social
Income/ Living Conditions: Different
levels of income might change the type
of customer. With lower income
persons, they might be shopping on a
budget and choose a product at a
cheaper price. With smaller homes,
some brands might target people who
need smaller appliances.
Community Driven Environment: Some
consumers might be influenced by their
friends so it is important to have great
customer service to make others want
to buy your products.
Psychological
Brand Desire: Some brands
purposefully build their brand up to be
“the best” so customers purchase their
products despite the price. Ex: Apple,
Lululemon
Perception Patterns: What people
believe plays a role in consumer
behavior. Ex: If packaging is green,
some would think it's organic or
healthier, when in reality it is no
different than other products.
Personal
Age: Depending on the customers age,
their interests in products will change.
Marketers have to understand the age
groups they are targeting.
Gender: According to Inc. Reports,
women make 70-80% of shopping
decisions however, some products are
narrowed down to men. Ex:
Lawnmowers, Hardware
Culture/ Backgrounds: Sometimes you
have to understand that different
religion, nationalities, and cultural values
play a role in consumer behavior.
7. Consumer Behavior Patterns 2
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8. What Affects Consumer Behavior?
Marketing
Campaigns
Marketing campaigns can influence a lot of customers. If done
right, your brand sales can increase drastically. A lot of marketing
campaigns are done on social media.
Economics
Conditions
Economic conditions are very important for when a buyer is
going to make a large, expensive purchase; like a car. A
positive economic condition is proven to make customers
more confident in making a purchase despite the cost.
Personal
Preferences
Personal likes and needs affect a lot of consumer
behavior. Ads can help with this. For example if you
are hungry and driving on the highway and you see a
sign to your favorite restaurant- you are going to stop
at that exit.
9. What Affects
Consumer Behavior 2?
Group Influence
Peer pressure affects a lot of consumer behavior. What our friends,
family, and co-workers think of us is going to base a lot of our
decisions.
Purchasing Power
Cost also affects most of consumer behavior. Different
brands strive for a certain social class and it is extremely
important to know who you are selling to.
10. Importance of
Consumer Behavior
● Understanding consumer behavior is one of the most crucial parts to marketing
● Every buyer has a different thought process and attitude towards buying a particular
product
● If your company fails to understand the different reactions you might receive towards
a product, you company will most likely fail
● You want to have a high retention rate of buyers and understanding the group of
people you are selling to, will help this
● There is a lot of competition in this industry and understanding your customers could
set you apart from other companies
● Based off popular products in your brand, you could create new and better products
which could help your brand grow
Consumer Behavior is so important and these are just a few reasons why
11. What is Consumer Behavior ?
● Consumer behavior is the study of how consumers buy and use products,
services, ideas, and experiences
● It is important because it helps businesses understand their customers
needs and wants
● Many businesses use consumer behavior to create products they KNOW
their customers will like
12. Types of
Consumer Behavior
Complex Buying Behavior
When a customer buys an
expensive and infrequently
purchased product
Customers are highly
involved
Ex: Treadmill, Car, House
Dissonance Reducing
Buying Behavior
When a customer has a hard
time differentiating many
brands and are worried about
the “right choice”
Customers are highly involved
Ex: TV, Lawnmowers,
Engagement RIng
Variety Seeking Buying
Behavior
When a customer wants to buy a
different brand in the same
product, not because they were
unsatisfied, but to try something
new
Customers are not highly involved
Ex: Toothpaste, Cologne, Shampoo
Habitual Buying
Behavior
When a customer buys a
product on a regular basis
Customers are not highly
involved
Ex: Bread, Eggs, Gasoline
13. Characteristics of
Consumer Behavior
● This is a process where a consumer decides what to buy, how to buy, when to buy, and
how much to buy
●
● Consumer behavior is constantly changing and is very complex and dynamic
●
● Consumer behavior starts before even buying and carries on to after a purchase
●
● It comes from both mental and physical activities
●
● Individual buying behavior is affected by many different factors from wants,
● needs, and interests. It is also affected by external factors
● like social groups, status, and environment
Learn more about factors in the
next slide
14. Factors that Drive Consumer Behavior
Social
Income/ Living Conditions: Different
levels of income might change the type
of customer. With lower income
persons, they might be shopping on a
budget and choose a product at a
cheaper price. With smaller homes,
some brands might target people who
need smaller appliances.
Community Driven Environment: Some
consumers might be influenced by their
friends so it is important to have great
customer service to make others want
to buy your products.
Psychological
Brand Desire: Some brands
purposefully build their brand up to be
“the best” so customers purchase their
products despite the price. Ex: Apple,
Lululemon
Perception Patterns: What people
believe plays a role in consumer
behavior. Ex: If packaging is green,
some would think it's organic or
healthier, when in reality it is no
different than other products.
Personal
Age: Depending on the customers age,
their interests in products will change.
Marketers have to understand the age
groups they are targeting.
Gender: According to Inc. Reports,
women make 70-80% of shopping
decisions however, some products are
narrowed down to men. Ex:
Lawnmowers, Hardware
Culture/ Backgrounds: Sometimes you
have to understand that different
religion, nationalities, and cultural values
play a role in consumer behavior.
16. Consumer Behavior Patterns 2
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17. What Affects Consumer Behavior?
Marketing
Campaigns
Marketing campaigns can influence a lot of customers. If done
right, your brand sales can increase drastically. A lot of marketing
campaigns are done on social media.
Economics
Conditions
Economic conditions are very important for when a buyer is
going to make a large, expensive purchase; like a car. A
positive economic condition is proven to make customers
more confident in making a purchase despite the cost.
Personal
Preferences
Personal likes and needs affect a lot of consumer
behavior. Ads can help with this. For example if you
are hungry and driving on the highway and you see a
sign to your favorite restaurant- you are going to stop
at that exit.
18. What Affects
Consumer Behavior 2?
Group Influence
Peer pressure affects a lot of consumer behavior. What our friends,
family, and co-workers think of us is going to base a lot of our
decisions.
Purchasing Power
Cost also affects most of consumer behavior. Different
brands strive for a certain social class and it is extremely
important to know who you are selling to.
19. Importance of
Consumer Behavior
● Understanding consumer behavior is one of the most crucial parts to marketing
● Every buyer has a different thought process and attitude towards buying a particular
product
● If your company fails to understand the different reactions you might receive towards
a product, you company will most likely fail
● You want to have a high retention rate of buyers and understanding the group of
people you are selling to, will help this
● There is a lot of competition in this industry and understanding your customers could
set you apart from other companies
● Based off popular products in your brand, you could create new and better products
which could help your brand grow
Consumer Behavior is so important and these are just a few reasons why
