Consumer Behavior

Why study consumer behavior?

Until now, we have focused on consumer needs;

• Identifying needs through market research 
• Satisfying needs through product design 
• Make more profit by understanding what people want

Consumer behavior is about the psychological processes that underlie consumer choices.

• Identifying the simplifying choice rules consumers use 
• Discovering how "framing" of a decision affects preferences 
• Make more profit by understanding how they think

BUYER BEHAVIOUR
Focus on the consumer buyer behaviour

• Consumer Behaviour is very important and ticklish attitude of consumer & in todays marketing scenario, it is main tool in the process of buying decision. 
• Consumer buyer behaviour - the buying behaviour of final consumers = individuals and households who buy goods and services for personal consumption –Kotler-Amstrong- 
• Consumer = most important of the marketing environment, the marketer must know : WHAT, WHEN, HOW, WHY the customer buyes 

Do people choose what is best for them?



BUYER-AN ENIGMA








Consumer Buyer Models: Economic Model

In this model consumer will be looking for benefits & opportunities. Like;

a) lower the price bought more qty (price effect)

b) higher purchasing power, bought higher qty (income effect)

c) lower the price of the substitute product, lower the qty that will be brought(substitute effect)

d) higher the promotion expenses the higher the sales (communication effect)

Physiological Model of Maslow’s Five Level Hierarchy/Needs



Stimulation-Response Model/Pavlovian Learning Model (SRM)



Howard-Sheth Buyer Behavior Model



Should consumers be followed or led?
“Our plan is to lead the public with new products rather than ask them what kind of products they want. The public does not know what is possible, but we do. So instead of doing a lot of market research, we …try to create a market for a product by educating [the public about what the product can do for them]. ” (Akio Morita, CEO of Sony)

Market Position