Consumer Behaviour Class 11
Consumer Behaviour - Concept
(Check Marketing Notes – Class 8 and Understanding Customer and Consumer – Class 9)
According to Schiffman and Kanuk consumer behaviour is defined as the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption-related items.
It includes the study of ‘what they buy’, ‘why they buy’, ‘when they buy’, ‘where they buy’, ‘how often they buy it’ and ‘how often they use it."
Thus, the study of Consumer Behaviour starts before actual buying and goes even after purchase of the product.
The purpose of studying consumer behaviour is to satisfy their needs, while utilizing their time, money, and effort in best possible way.
Constituents of Consumer Behaviour:
Consumer behavior has two constituents, consumer and buyer
Understanding Customer and Consumer – Class 9
Importance of studying Consumer Behavior:
The study of consumer behavior is important for effective marketing management as it helps in the formulation of production and marketing strategies:
- Determination of marketing mix
Management constantly studies what products consumers buy, what influences their purchases, why they choose certain brands or stores, why they switch brands or shops, and how they react to new products.
This helps producers make their marketing strategies and better serve their customers.
- Assessment of consumer’s response
The consumer wants to make the best use of his money. He wants quality goods at reasonable prices. This has made marketers to offer quality products at prices which are within reach of the customers.
- Meeting diversified consumer preferences
The customers got more availability of more choices with globalization. So, marketers have to adjust according to that situation.
- Planning and implementation of marketing strategies
Marketers can greatly benefit out of knowledge of consumer behaviour to formulate and implement marketing strategies to meet consumer expectations and goals of the firm.
- Catering to Consumer Preferences
Consumers like products that meet their unique needs, personalities, and lifestyles. Understanding consumer behavior helps create such products.
- Market segmentation.
The knowledge of consumer behaviour helps in proper market segmentation.
- Adapting to Technological Advances
It also helps in keeping up with technology and quickly launching new products. Identifying the target market before production helps meet consumer expectations and bring products to the market faster.
Consumer Behaviour Class 11
Factors affecting Consumer Buying Behavior:
Check Class 9 notes also, link already given.
Cultural Factors:
Values, beliefs, religion, customs affect buying habits.
Example: Hindus in India avoid beef; North Indians prefer wheat, South Indians prefer rice.
Social Factors:
Family, reference groups, roles, status, age, life-cycle stage, education, occupation, economic conditions, and lifestyle play roles.
Example: High-income families buy premium products, urban buyers have different habits than rural ones.
Psychological Factors:
Motivation, perception, learning, beliefs, and attitudes shape buying behavior.
Example: A person may buy a pizza because they're hungry (motivation).
Personality Factors:
Inner traits like confidence, sociability, and adaptability influence decisions.
Example: An extrovert might prefer vibrant, social settings impacting their purchases.
Consumer Behaviour Class 11
Different Buying Roles
Individuals or group of consumers play different roles in different purchase situations. Different roles have been observed in the consumer decision process as under:
- Initiator:
The person who first thinks of buying the product e.g. a child suggesting buying chocolate.
- Influencer:
The person who influences the buying decision e.g. parents influencing the choice of chocolate.
- Gatekeeper:
The person who controls information flow e.g. parents selecting movies for children.
- Decider:
The person who makes the final decision e.g. a mother deciding on baby products.
- Buyer:
The person who actually buys the product e.g., a father purchasing items for the family.
- User:
The person who uses the product e.g. the family using groceries or a housewife using a washing machine.
- Preparer:
The person who prepares the product for use e.g. a mother preparing food.
- Maintainer:
The person who maintains or repairs the product e.g. servicing a washing machine.
- Disposer:
The person who disposes of the product's package e.g. a mother disposing of packaging.
In certain purchase decisions might involves at least one person acting one role, on other occasions a single individual can play several roles at the same time. All these roles must be studied by a marketer.
The Consumer Decision Process
Consumers follow a step-by-step process when making purchase decisions. The time and effort they spend depend on how important the product or service is to them. There can be two types of purchase situations:
High-Involvement Purchases:
These involve significant social or economic impact e.g. buying an air conditioner. Consumers spend more time researching, comparing prices, reading reviews, and seeking advice.
Low-Involvement Purchases:
Routine purchases with little risk e.g. choosing between two brands of chocolate. Consumers spend less time and effort.
Basis of Purchase decision
Purchase decisions can be based on thoughts (cognitive) or feelings (emotive). Car is purchased on the basis of ‘Thought’, Chocolate is purchased on ‘Feeling’ basis. Both factors influence decisions, but one may dominate at any given time.
Consumer Behaviour Class 11
Stages in Consumer Decision Process
Following are the main stages in the process of purchase decision:
- Problem Recognition
The consumer realizes the difference between their current state and their desired state. This motivates them to make a change.
- Information Search
The consumer gathers information to fulfill their need. For important purchases this involves extensive research whereas for minor purchases little research is needed.
Information can come from personal experiences or external sources like family, friends, advertisements, and reviews.
- Evaluation of Alternatives
The consumer compares different options based on a set of criteria, which can be facts or personal impressions. Marketers highlight important attributes of their products and show how they meet the consumer's needs.
- Purchase Decision and Action
The consumer chooses a product from the alternatives and makes the purchase. Marketers can help by offering services like financing, delivery, and installation.
- Post-Purchase Evaluation
The consumer reflects on their purchase. If it meets their expectations, they feel satisfied.
If not, they might experience purchase anxieties, known as cognitive dissonance. They want more information to come out of this. Marketers can help consumers by providing supportive information and positive communications to reduce dissatisfaction.
This process helps consumers make informed decisions, and satisfied customers are more likely to buy again. Marketers aim to minimize dissatisfaction to retain customers and maintain a positive reputation.