1.
Consumer Behaviour – Definition, Nature & Features
Definition:
Consumer behaviour refers to the study of how individuals, groups, and organizations select,
purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and
desires.
Nature/Features of Consumer Behaviour:
1. Complex Process: Involves psychological (thinking, perception), social (family, peers),
and personal (income, lifestyle) influences.
2. Goal-Oriented: Consumers buy to satisfy specific needs and wants.
3. Dynamic: Consumer preferences keep changing with trends, lifestyle, technology, and
culture.
4. Varied: No two consumers behave exactly alike; behaviour differs across cultures, social
class, and personal preferences.
5. Influenced by Multiple Factors: Economic, cultural, social, psychological, and
personal.
6. Decision-Making Process: Involves steps like recognition of need, information search,
evaluation, purchase, and post-purchase.
7. Interdisciplinary in Nature: Draws knowledge from psychology, sociology, economics,
anthropology, and marketing.
2. Introduction
Consumer psychology needs special attention today because of intense competition,
abundance of product choices, and a consumer-driven marketplace.
Modern marketing systems are consumer-centric, not product-centric.
Consumer is the cause and purpose of all production and marketing activities. If there
is no consumer demand, production and marketing lose relevance.
Understanding consumer behaviour helps businesses design products, pricing,
promotions, and distribution strategies effectively.
3. Meaning of Consumer/Buyer Behaviour
The consumer is the most important person in business.
His attitudes, behaviour, needs, and reactions directly affect the success of marketing
strategies.
Companies continuously study consumer behaviour to predict demand and remain
competitive.
Consumer behaviour is a comparatively new discipline in management, growing in
importance after globalization and digitization.
Purpose of study: To understand human actions and reactions towards goods and
services and help marketers anticipate market changes.
4. Definitions of Consumer/Buyer Behaviour
General: Consumer behaviour is the process whereby individuals decide what, when,
where, how, and from whom to purchase goods and services.
Walters and Paul: “Consumer behaviour is the process whereby individuals decide
whether, what, when, where, how and from whom to purchase goods and services.”
Webster: “Buyer behaviour is all psychological, social and physical behaviour of
potential customers as they become aware of, evaluate, purchase, consume, and tell
others about products and services.”
5. Types of Buyers
1. Friendly/Co-operative Buyer – Easy to deal with, supportive.
2. Timid/Reserved/Shy Buyer – Needs confidence building, hesitant.
3. Silent Buyer – Observes quietly, does not express openly.
4. Undecided Buyer – Finds it difficult to choose, needs guidance.
5. Price or Quality Conscious Buyer – Compares prices/quality before buying.
6. Argumentative Buyer – Always questions, debates, challenges.
7. Suspicious Buyer – Doubts product or seller intentions.
8. Impatient Buyer – Wants quick service, dislikes waiting.
9. Bargain Buyer – Negotiates for discounts and offers.
10. Impulsive Buyer – Purchases without much thought, emotionally driven.
11. Over-cautious Buyer – Very careful, takes time, checks details.
12. Slow-thinking Buyer – Needs repeated explanations before deciding.
13. Rude/Ill-mannered Buyer – Hard to satisfy, unfriendly.
14. Clever/Intelligent Buyer – Smart, well-informed, makes logical choices.
6. Factors Influencing Buyer Behaviour
1. Social Factors:
o Family influence.
o Reference groups (friends, colleagues).
o Social roles & status.
2. Economic Factors:
o Family income & size.
o Disposable income.
o Consumer credit availability.
o Propensity to save/consume.
3. Cultural Factors:
o Culture and sub-culture.
o Social class (income, occupation, wealth).
4. Personal Factors:
o Age, gender, occupation.
o Personality, lifestyle, self-concept.
5. Physiological Factors:
o Basic needs like food, shelter, clothing.
6. Psychological Factors:
o Motivation (Maslow’s hierarchy).
o Perception & imagery.
o Learning & memory.
o Beliefs and attitudes.
7. Buyer’s Decision-Making Process
1. Need Recognition: Realizing a gap between current state and desired state.
2. Information Search: Collecting details from advertisements, friends, online reviews.
3. Evaluation of Alternatives: Comparing features, price, quality, benefits.
4. Purchase Decision: Selecting a product/brand and making payment.
5. Post-purchase Behaviour: Satisfaction or dissatisfaction influences repeat purchases
and word of mouth.
8. Buying Motives of Consumers/Customers
Fear: Buying insurance or safety products.
Profit/Gain: Investment in property or shares.
Vanity/Pride: Buying luxury brands.
Fashion: Trend-driven purchases.
Love & Affection: Gifts for family and friends.
Curiosity: Trying new products.
Admiration: Inspired by role models/celebrities.
Jealousy: Buying to compete with others.
Patronage: Loyalty towards specific brands.
Comfort & Convenience: Gadgets, appliances.
Health: Organic food, gym memberships.
9. Types of Buyer Behaviour
1. Complex Buying Behaviour: Involves high involvement & significant differences (cars,
houses).
2. Dissonance-Reducing Buying Behaviour: High involvement but few differences
(insurance, floor tiles).
3. Habitual Buying Behaviour: Low involvement, few differences (toothpaste, soap).
4. Variety-Seeking Buying Behaviour: Low involvement but many options (snacks, soft
drinks).
10. Importance of Consumer Behaviour in Marketing
Management
Helps understand consumer needs and design relevant products.
Provides insights into market segmentation and targeting.
Helps develop effective promotional strategies.
Aids in predicting consumer trends and demand patterns.
Ensures customer satisfaction and loyalty through better service.
Essential for survival in a competitive market.
11. Meaning & Importance of Consumer/Buyer Psychology
Consumer psychology studies mental, emotional, and behavioural processes of buyers.
Knowledge: Understanding product features.
Attitudes & Emotions: Feelings influencing buying.
Images: Perception of brands.
Intentions: Future buying plans.
Buying Motives: Reasons behind purchases.
12. Steps in Selling/Buying Process
1. Prospecting: Identifying potential customers.
2. Pre-approach: Collecting information about prospects.
3. Attention: Attracting customer’s notice through promotions.
4. Interest: Creating curiosity and engagement.
5. Desire: Convincing customer of benefits and value.
6. Action: Closing the sale (purchase decision).
