3. CONSUMER BEHAVIOR
• Consumer behavior is the study of how people
buy, what they buy, when they buy and why they
buy. It attempts to understand the buyer
decision making process, both individually and
in groups. It studies characteristics of individual
consumers such as demographics,
psychographics, and behavioural variables in an
attempt to understand peoples wants.
5. STAGES OF THE CONSUMER BUYING
Consumer buying decision process includes six
stages. They are:
1. Problem Recognition
2. Information Search
3. Evaluation of alternatives
4. Purchase Decision
6. Post-Purchase Evaluation
6. 1. PROBLEM RECOGNITION :
Difference between the desired state and the
By seeing a commercial for a new pair of shoes,
stimulates your recognition that you need a new
pair of shoes.
Hunger stimulates your need to eat.
8. 2. INFORMATION SEARCH :
Internal Search: --- Memory
External Search: --- Friends and Relatives A
successful information search leaves a buyer with
possible alternatives, the evoked set.
Hungry, want to go out and eat, evoked set is,
Chinese food , Indian food & Burger king .
10. 3. EVALUATION OF ALTERNATIVES :
Need to establish criteria for evaluation, features
the buyer wants or does not want. Rank/weight
If you want to eat something spicy, then Indian
food gets the highest rank etc…
16. 6. POST-PURCHASE EVALUATION :
It is the outcome Satisfaction or Dissatisfaction.
This can be reduced by warranties, after sales
After eating an Indian meal, you may think that
really you wanted a Chinese meal instead.
18. TYPES OF CONSUMER BUYING
There are four types of consumer buying behavior,
they are :
1. Routine Response/Programmed Behavior
2. Limited Decision Making
3. Extensive Decision Making
4. Impulse buying
22. 2. LIMITED DECISION MAKING
Buying product occasionally.
That is when you need to obtain information
about unfamiliar brand in a familiar product
Clothes--know product class but not the brand.
24. 3.EXTENSIVE DECISION MAKING :
Complex high involvement, unfamiliar, expensive
and infrequently bought products. Spend a lot of
time seeking information and deciding. High
degree of risk.
Cars, homes, computers, education.
26. 4. IMPULSE BUYING :
No conscious planning. The purchase of the same
product does not always elicit the same Buying
Behavior. Product can shift from one category to the
Going out for dinner for one person may be extensive
decision making (for someone that does not go out
often at all), but limited decision making for someone
else. The reason for the dinner, whether it is an
anniversary celebration, or a meal with a couple of
friends will also determine the extent of the decision