Psychological factors like motivation, perception, attitude, belief, etc., affect the consumers’ decision-making process. For example, when a company introduces a new model of mobile phone, it may run a series of TV commercials and press advertisements. We discuss these two approaches separately. The Psychology Behind Consumer Behavior By. Consumer behaviour is very important to understand what influences the buying decisions of the consumers and why does it so. (i) Used when products are occasionally purchased; and. They are broadly classified into two classes – rational, which is based on logical reasoning or thinking and emotional, which is based on personal feelings. 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. Account Disable 12. Patterns of customer thought and action that are relevant to marketing. An attitude describes a person’s enduring favourable or unfavourable cognitive evaluations, emotional feelings, and action tendencies towards some object or idea. Distinct and emerging cultural trends also influence consumer behaviour, with the rapid growth of social media applications providing a defining example. The larger the gap between expectations and performance, the greater is the dissatisfaction. Download file to see previous pages Theories of consumer behaviour actually aim at providing a rigorous understanding of the decision-making process of a ration buyer in a market economy. These relate to the reasons why consumers buy one class of goods rather than another. through the Food Corporation of India, Cotton Corporation of India and Jute Corporation of India. Post-purchase behaviour refers to the behaviour of the customer after the purchase and it depends upon his experience of using the product and level of satisfaction. Lecture 2 theories and models of consumer behavior 1. But the possibility of a trial purchase is not available in all cases. Primary Groups – With whom the person interacts fairly continuously and informally such as family, friends, neighbours and co-workers. Such marketers find it easy to sell their products. The Government becomes a manufacturer or a monopoly buyer and/or seller. 2. The government provides infrastructural and transportation facilities on preferential basis. Consumer behavior is the study of customers and relevant behaviors that impact their purchasing decisions and relationships with firms, brands, products and services. 4. They create pressure for conformity that may influence product or brand choice. An example in the aspect of consumer behavior is the change in eating habits which drastically increased the demand for gluten-free products. Personality traits such as dominance, adventuresomeness, sociability, friendliness, responsibility, aggressiveness, dependence, etc., can indicate how people behave. Every successful marketing campaign starts with an understanding of the customers’ buying behaviour. A customer's fundamental drives. Consumer behaviour is very important to understand what influences the buying decisions of the consumers and why does it so. Examples include soft drinks, snack foods, milk etc. Their role as decision-input is, at times, so powerful that they have an overriding influence on marketing decisions. On the other hand, a dissatisfied customer may abandon or return the product and may take action against the company. Terms of Service 7. Food habits, religious practices, the way we dress are all influenced by culture. Some buying situations are characterized by low involvement but significantly high brand differences. Marketers who continuously monitor the behaviour of the consumers are in a better position to meet the changing tastes, expectations and preferences of the consumers. ii. Consumer behaviour is a comparatively new field of study. 2. The Government promotes or discourages consumption of certain types of products. Emotional motives are found more among people of high income groups. The inputs are basically marketing-mix components that consist of the product, packaging, branding, and advertisement, personal selling, pricing of the product, distribution channel to move the product from the place of production to place of consumption, i.e., the consumer. Buying Motives of Consumers 7. These cause a customer to buy products from a particular seller. The intensity of the want will indicate the speed with which a person will move to fulfil the want. (2) Trait Theory. Consumer buying behaviour is a decision-making process and the act of people involved in buying and using various products. To understand a buyer needs and convert them into customers is the main purpose of the consumer behavior study. Consumer Behaviour deals with various stages that a consumer goes through before purchasing any product or service. 13. The consumer response indicates that the shift has occurred. The occupation of a person decides his ability to buy. Cardinal Utility Analysis: Human wants are unlimited and they are of different intensity. 2001) are two of the most widely cited analytical models”. Topic 3, we examined the law of demand, which showed that as the price increased our quantity demanded of the good decreased The definition of the communications industry with examples. Kassaye Wandwossen, Tilburg University. ], some meaningful prediction of their actions can be achieved". Output part consists of purchase behaviour and post-purchase behaviour. Aspirational Groups – Aspirational Groups are those that a person hopes to join, for example, groups of people owing a Ferrari. A person acquires an orientation towards religion, politics, and economics and a sense of personal ambition, does not interact with the parents, still their influence in the unconscious behaviour can be significant. This search gives rise to various decisions and finally the purchaser evaluates these alternatives and finally the purchase decision is made. When a product is expensive (buying a car or apartment) it involves detailed thinking and analysis and high level of involvement on the part of the purchaser, compared to buying soap, vegetables, or groceries. Each individual plays many roles — loving father or mother, affectionate wife, friendly co-worker, efficient executive, wise home-manager, and so on. Consumer Needs‎ > ‎ Maslow’s Hierarchy of Needs. Market consists of different kinds of customers. The Government distributes or directs distribution of certain goods through specified agencies. Lifestyle may be defined as the pattern or way of living of a person which will be indicated through the person’s activities, interests, and opinions. Marketers view reference groups as important because they greatly influence how consumers interpret information and make buying decisions. The satisfied customer will also tend to say good things about the brand to others and spread a positive word about it. Opinion leaders are highly confident and socially active. If he has certain amount of purchasing power, a set of needs to be met and a set of products to choose from, he will allocate the amount over the set of products in a very rational manner with a very clear intention of maximising the utility of the benefits he is going to derive. In many cases, a consumer will use a generic decision making model (Pickton and Broderick, 2005). Thorough analysis of Consumer behaviour helps the marketers in identifying various opportunities and threats existing in the marketing environment. These are transmitted from generation to generation. Technology acceptance model has been developed by Fred Davis on the basis of the Theory of Reasoned Action. Before uploading and sharing your knowledge on this site, please read the following pages: 1. For, according to Thorndike’s law of effect, when a behaviour has a positive (satisfying) effect or consequence, it is likely to be repeated in the future. 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 making. are generally bought to satisfy emotional motives. The involvement theory holds that there are low and high involvement purchases. Buying process begins when a person begins to feel that a certain need or desire has arisen. (2) Higher the purchasing power, the higher the quantity that will be bought, which is known as ‘income effect’. Marketers are now using these foundational theories of consumer behavior in innovative ways. For Example, a family from a higher class may wish to eat in a five-star hotel. iii. Are the marketing campaigns overstating the benefits of product? This model also explains the fact that acceptability to users is dependent on two key factors such as pe… Abraham Maslow (1954) developed the hierarchy of needs model which can help us understand the basis of human motivation. This may relate to the brand, location and the manner of obtaining the product. Rapid introduction of new products with technological advancement has made the job of studying consumer behaviour more imperative. He may have his dinner only in five-star hotels. Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, and how the consumer's emotions, attitudes and preferences affect buying behaviour. In countries like India, family members play a crucial role in shaping consumer behaviour. 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