Without an understanding of consumers, how they think, and the reasons for how they behave, it is very difficult for a business to give them exactly what they want. The study of consumer behaviour improves decision-making as some of the guesswork is removed. Through a better understanding of consumer behaviour, businesses can make better choices with their marketing to attract more of their target customers. What is Consumer Behaviour? Consumer behaviour is the study of consumption. It aims to have a better understanding of consumer actions and processes used in their purchase decisions, as well as the usage of products and services and how they are disposed of. Exploring how the consumer’s emotions, attitudes and preferences affect buying behaviour, consumer behaviour draws upon ideas from several fields including psychology, sociology, anthropology, biology, marketing and economics. An underlying motivation drives a consumer to act and purchase. These motivations fit under the problem recognition phase discussed above. This motivation can be either positive or negative. A positive motivation could be a pleasure – having dinner a nice restaurant or a night on the town. A negative motivation could be the avoidance of unpleasantness such as purchasing toothpaste to minimise tooth decay, getting toothaches and having to visit a dentist.

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Consumer behaviour is the study of consumption. It aims to have a better understanding of consumer actions
and processes used in their purchase decisions, as well as the usage of products and services and how they are
disposed of.
Exploring how the consumer's emotions, attitudes and preferences affect buying behaviour, consumer
behaviour draws upon ideas from several fields including psychology, sociology, anthropology, biology,
marketing and economics.
A consumer could be an individual, groups or organisations. The study of their consumption investigating
characteristics such as demographics, personality, lifestyle, and behavioural variables such as usage rates or
occasion. Businesses aim to understand the process and underlying motives when satisfying their needs and
wants.
WHAT IS CONSUMER BEHAVIOUR?

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• Marketing factors such as product design, pricing,
promotion, packaging, positioning and distribution
• Personal factors such as age, gender, education, and
upbringing
• Psychological factors such as buying motives, perceptions
and attitudes.
• Situational factors such as physical surroundings, social
surroundings and time factor
• Social factors such as social status, reference groups,
social media and family
• Cultural factors such as religion and ethnicity
• Lifestyle factors such as status, income and identity
• Geographical factors such as region, country and urban or
rural.
Consumer behaviour is not static. It changes over a period and depending on the nature of products. Societal
trends change, but also does an individual over their lifetime. Equally, all consumers do not behave in the same
manner. Some of the influences on consumer behavior are:
INFLUENCES ON CONSUMER BEHAVIOUR

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• Product design – reduce the chances of product failure.
• Pricing – what price is the target market most likely to
purchase at? Is this profitable?
• Promotion – marketing consumers are likely to react to.
• Targeting – focusing and tailoring marketing on people
with similar needs most likely to be customers.
• Packaging – what type and style of packaging will be most
attractive to customers?
• Positioning – communicating a brand’s point of difference
compared to its competitors, to the target market.
• Branding - monitoring other brands in the customer's
consideration set to optimise planning.
• Place of distribution – what location or type of store to
sell a product or service?
• Customer retention – learning and implementing what
makes customers happy and keeps them loyal.
• Predict changing trends and behaviours - A consumer
behaviour analysis will indicate shifting trends and
marketing efforts can be aligned accordingly.
• Innovating new products and staying relevant – reduces
the chance that new products or services fail.
THE BENEFITS OF UNDERSTANDING CONSUMERS

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BUYER DECISION PROCESS
Problem recognition - the consumer identifies a need or want. The strength of the need drives the decision
process, and the consumer decides they need a product or service to satisfy this desire. Triggers include:
• Out-of-Stock/Natural Depletion – e.g. when you run out of toilet paper
• Regular purchase – e.g. purchasing a bottle of wine each week with the groceries
• Dissatisfaction – e.g. not happy with their current internet service provider and change to a new one.
• New needs/wants – as a family gets bigger, they purchase a bigger vehicle
• Related product – purchasing one product triggers need for accessories, spare parts or complementary
products such as purchasing the latest X-Box gaming console and upgrading the TV and buying games.
• Marketing induced – advertising triggers the recognition of a problem or needs that consumers did not
realise they had. E.g., my internet IS slow. Yes, I do need faster internet!

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Information search – The information search phase aims to identify a list of options representing realistic
buying options. Consumers search their internal memory and use external sources for information about
options that will potentially satisfy their need. In an internal search, the consumer scans their memory for
suitable brands. The evoked set are preferred brands, typically to around 3- 5 alternatives.
Information search and the next phase of evaluation can occur throughout the entire decision process.
Evaluation of alternatives - Consumers engage in a series of rational evaluations of the alternative options
available to them. During this evaluation phase, consumers consider a small number of options that could be
viable choices.
Realistic purchase options are known as the consideration set, each consumer will have distinctive
characteristics they are looking for, searching for the best value and the best fit for their needs.
BUYER DECISION PROCESS

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Purchase decision – Once the alternatives have been evaluated, the decision is made by the consumer and they
proceed through to the actual purchase. To increase the chances of customers purchasing with them,
businesses use techniques to improve conversion rates, such as a strong call-to-action in advertising. “Buy now
while stocks last!”. This encourages an immediate sale.
Post-purchase evaluation – This process is not complete until after the consumption of the product or service
and the consumer engages in a post-purchase evaluation. Consumers compare their experience with the
product or service and the perceived value with their expectations that were formed during information search
and evaluation. This is called expectancy disconfirmation and is a strong driver of satisfaction.
Factors evaluated include price, functionality, and quality. A consumer's next purchase decision for that good or
service is influenced by this evaluation.
BUYER DECISION PROCESS

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