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Consumer Behaviour
Consumer Behaviour Marketing concept start with the consumer needs and behaviour in meeting these needs. Every action of a person is based on needs. The real problem is to learn what a customer takes into I consideration when he chooses a particular brand. Such a study is concerned with consumer behaviour. Consumer/Buyer behaviour is that subset of human behaviour that is concerned with decisions and acts of individuals in purchasing and using products. Consumer behaviour, a subset of customer's behaviour, is concerned with decisions that lead up to the act of purcha se. A human being by nature is very complex. It is very difficult to understand the human behaviour. It is. the human brain which directs all the activities of a human being. It is said that human brain is like a black box. It is very difficult to see it. As shown in the Fig that we can see input and output but not the real machanism, how the inputs are transformed into the output. In simple way, we can say that the behaviour is the response of a stimuli. The usual stimulus is the need for which there is ac tion called response.
"Consumer behaviour can be defined as the activities and the actions of people and organisation that purchase and use economic goods and services, including the influence on these activities and actions. " J.F. Engel
"Consumer buying behaviour refers to the buying behaviour of final consumers individuals and households who buy goods and services for personal consumption." Kotler & Armstrong "Consumer behavou r consist of the acts of individuals in obtaining, using and disposing of economic goods and services, including the decision processes that precede and determine these acts." Boone & Kurtz
"Consumer behaviour may be defined as the behaviour that consumers display in searching for, purchasing, suing, evaluating and disposing of produces, services, and ideas which they expect will satisfy their needs." Long Schiffman & Leslie Kanuk
Thus, the study of consumer behaviour is the study of how individuals make decisions to spend their available resources (money, time and effort) on consumption -related items. However, it may be noted that consumer behaviour research today goes for beyond 'what, why, how, when, where and how often' facets of consumer behaviour and also considers the uses which consumers make of the goods they by and their evaluations of these goods after use. There may be many
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Consumer Behaviour
repercussions after the consumer makes a purchase. For example, a person may feel sorrow and guilt or dissatisfaction with his choice of a particular automobile, because of continuing working and maintenance expenses over it. He may swear not to buy the same make or model again and may also refer his grievance to his friends conveying the dismal performance of the car. Each of these possible consequences of consumer's post purchase dissatisfaction has significant implications for the marketer.
In o th er wo rd s i t can b e s ai d, "consumer behaviour refers to a l l the psychological, physiological and socio psychological reasons of in di vi du al consumer's response to marketing app eal s'. The Study of consumer behaviour attempts to find the answer for the following questions: 1. Who are the customers ? 2. What do they buy ? 3. Where do they buy ? 4. How do they buy ? 5. Why do they buy ? 6. When do they buy ? For the marketer that person is important who makes the buying decision, not the one who actually makes the purchase or uses the product ? Understanding this person helps marketers to develop marketing mixes and predict how targeted customers will respond to them. Importance of Studying Consumer Behaviour As a matter of fact, costomer is the pivot around which the whole industrial system of now a days revolves. The economists have called the 'customer' a 'king'. He is just like a voter in democracy. His selection of goods or services determines the fate of the products/services. So, in order to attract him more and more, the marketing personn el should know their customers well so that they could treat them in the way they like to be treated, present them goods in the way, they will appreciate and close a sale in such a way that consumer satisfaction is created. The study of consumer behaviour is very useful in determining the form, style, packing, brand, tradmark etc. of the product. The whole aspect of buying behaviour determines the durability, price policy and utility aspect in goods. When does aspect of purchasing also determine the quality , size and price policy of the products ? How does aspect determine the nature of customer services and style of
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Consumer Behaviour
packing, etc ? Where does aspect determines the place relating to physical distribution, channels of distribution policies and so on ? Hence, the study of consumer behaviour is useful, rather essential in formulating various marketing policies. Psychology Of Consumers For making a successful marketing program it is necessary for a marketer to study the consumer behaviour so that he would know the attitudes, intentions, desires of the customers. Customer psychology has the following components : 1. Kn o wl edg e Knowledge is one type of information and on the basis of the knowledge,
the psychology of customer develops. For giving knowledge of the product to the customers, promotion plays an important role. 2. Att it ud e Attitude is a#state of mind or feeling. It induces a predisposition to behave in
some way. Attitudes are very important in explaining buyer behaviour. 3. In tent io n Intention means desires to do some thing. After knowing the intention of
customers, the marketing programme can be formulated and can be co-ordinated with the production. 4. Mo ti ve It is the integral state which directs the behaviour of a person. Some people
call it urge. Because of the urge, the person's behaviour is directed towards a particular cause.
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Consumer Behaviour
Factor Influencing Consumer Beha viour : A consumer takes different types of decision. In order to understand the consumer the marketer must make extensive use of social sciences including psychology, sociology, economics and anthropology. Fig. presents the major influences on consumer buying decisions. There are intra personal, inter personal and many other environmental variables that affect consumer's decision making process. The interpersonal influences include family, social class, reference group, cultural and financial status of an individual. The intra personal variables include motivation, perception, learning, attitude and personality of the buyer.
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Fig 3.1
Consumer Behaviour
1. Cultural Factors
These factors exert the broadest and deepest influence on
consumer behaviour. They i n cl u d e : ( a ) Culture Culture is an important determinant of human behaviour in the
society. Culture refers to people's shared customs, beliefs, values and artifacts, (housing, works of art and so on) that are transmitted from generation to generation. The study of culture is necessary to understand the human behaviour. It refers to the study of acquired or cultivated behaviour. The study of culture helps the marketer in his efforts to study the non-rational aspect of consumer behaviour. The basic characteristics of a culture are as follows : 1. The culture is inculcated into an individual and passed on from generation to generation. 2. The customer lives in a society having certain cultural characteristics. Though the customer has to learn every thing from his experience but culture provides certain patterns of behaviour to be adopted. 3. Cultural values keep on changing through the passage of time. 4. Culture meets different types of needs of an individual in society and if its elements do not confor m to the individual they extinguish. 5. The cultural values are shared by the society as a whole. (b)Sub Culture Each culture consists of smaller sub-cultures that povide more
specific identification for its members. Four types of sub-cultures can be distinguished i.e., nationality groups, religious groups, racial groups, and geographical areas. (c) Social Class It is identified as relatively permanent a n d homogeneous group
of people having certain identifiable characteristics. According to P. Kotler, social classes are relatively homogeneous and enduring divisions in a society, which are hierarchically ordered, and whose members share similar values, interests and behaviour. The marketer has to study the behavioural patterns of these classes so as to formulate the marketing strategy and promotional communication. Social class is a complex variable, which is determined by the persons income, occupation, education, personal performance and possession of different
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Consumer Behaviour
types of products. Social classes can be categorised on the basis of a number undedicated and so on. The major social classes commonly accepted and categories are : upper class with upper upper and lower upper, middle class with upper middle and lower middle, and lower class with upper lower and lower Lower. These classes have their distinguishing characteristics and dominant consumption patterns.
Life style orientations and purchasing tendencies of the different social classes.
Social Class Upper Class Life-style Orientation Purchasing Tendencies Good taste Graceful Quality merchandise living Good things in life Expensive hobby and Individual expression recreation equipment Interest in arts and Art culture Books Travel Respectability Items in fashion Items related to s elfConformity Prosperity presentation Nice clothing, Social esteem neighbourhood, and homeItems for children Fun oriented Parochial Unsophisticated taste Focus on possessions not ideas Closefamily relationship Not interested in world affairs Neighbourhood oriented Immediate gratification Table 3.1 Newest appliances Sporting events Newest and biggest items
Middle Class
Working Class
Lower Class
Status symbols Products enhancing selfesteemPseudo-symbols of prosperity, such as used scooters Readily available products
2. Social Factors status.
Social factors includes reference groups, family and social roles and
( a ) Ref er en ce Gr ou p s
Reference group is a relatively small social group to
which a person belongs or aspires to belong and that provide guides to acceptable beliefs, values, attitudes and 79ehavior. According to Philip Kotler, a persons reference groups consist of all the groups that have a direct (face to face) or indirect influence on the person s attitudes or 79ehavior. Reference groups are of different types :
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Consumer Behaviour
1. Membership Groups
Groups have the direct influence on a person are
called membership groups. These are groups to which a person belongs and interacts. 2. Primary Groups Here the person interact fairly continuously as family
friends, neighbours, co-workers. These groups are informal. 3. Secondary Groups The members have less continuous interaction and
they tend to be formal e.g. religious groups, professional groups etc. 4. Aspirational Groups The group to which a person like to belong but is
not the member of that group. 5. Dissociative Group individual. The most influential primary group is, of course, the family. Peer groups are composed of individuals who spend considerable time together and are of fairly common age and social background. Other groups with varying degrees of 80ehavior80ng influence are religious groups, educational groups, political institutions and work groups. Any of these groups may be classified as peer groups if they are sufficiently homogeneous. The peer groups have the greatest influence on the individual as a consumer because the groups general interest and mode of life are most nearly like his own. The importance of reference group influence varies among products and brands. Marketers of products and brands where group influence is strong must determine how to reach and influence the opinion leaders. Group influence is strong for products that are visible to others whom the buyer respects. According to Philip Kotler, an individual is influenced by a referenc e group in the following manner. 1. These groups expose an individual to new 80ehavior and life styles. 2. They also influence the person s attitudes and self concept because the person normally desires to fit in 3. They create pressures for conformity that may affect the person s actual product and brand choices. Importance of Groups of Marketing Knowledge of reference groups and other A group whose values are rejected by the
influences make it easier to explain why consumer behave in a particular why. It
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Consumer Behaviour
keeps the marketer to predict their 81ehavior. A young executive, for example, may dress and act differently when in the job and in contact with his business associates, but off the job, he may behave and dress quite differently, ( b ) Fa mi ly The family is considered as one of the strongest sources of group
influence for the individual consumer. The joint family is the most common form of family system in India. From the marketers point of view, the decision making role in the joint family system is being played by the oldest member of the family. It is not always that the authority vests with him but it can be diffused also. The marketer must know income of the family as a whole that are being used for family purchase. The family is the most important of all these groups. It is a source of major influence of individual members buying 81ehavior. Within the family different members play different roles. Marketers are interested in finding out exactly the role played by individual members so that they can appropriately design their promotion strategy to suit these differing roles. Traditionally, it has been the wife s role to purchase food, clothing and other household articles and sundries, while the husband played a dominant role in the purchase of automobiles, life insurance and investment etc. However, today, this role has changed. Husbands now have to shoulder a greater part of household duty while women are asserting themselves in areas so far greater as husband s domain. Thus, the same purchase decision in different families may be made either by the husband or wife; or both may have an equal voice, Children are also beginning to exert their influence on the family s purchase decisions. This is especially true incase of products of common interest, such as television, VCR, stereo music system, two-in-one audio set, personal
computers, etc. where the children are likely to have more updated information about various brands and product attributes. Children s influence generally centres around toys, fast-food restaurants, video games, movies, sport equipments, groceries etc. IO pi ni on Lead er s A part from the family, a consumer is influenced by the
advice he receives from his friends, neighbours, relations and colleagues about what products and services he should buy. This process of influencing the purchase decision is known as opinion leadership. Opinion leadership is the process by which
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Consumer Behaviour
one person (the opinion leader) informally influences the actions or attitudes of others who. May be opinion seekers or merely opinion recipients. Opinion receivers perceive the opinion leader to be a shighly credible objective source of product information who can help reduce their search time and perceived task. Every group usually contains of few members who can be considered opinion leaders or trendsetters. These then communicate their experience with the new products via word-of-mouth. For instance, during lunch hour a person may casually ask his colleague to recommend a good model of television. Similarly, one may discuss with his neighbours or relatives what brand of electronic power generator he should buy for complete satisfaction. Further, this process often occurs only in case of two -three persons rather than in a large group setting. Generalised opinion leaders are rare. Instead, Individuals tend to be opinion leaders for specific goods or services due to their considerable knowledge and interest in that particular product. (d )R ol es an d St a tu s A person participates in many groups throughout the life.
The person s position in each group can be defined in terms of roles and status. A role consists of activities that a person is expected to perform according to the persons around him. Each role carries a status reflecting the esteem given to it by society. 3. Pers o na l Facto r s Personal factors include age and life cycle stage, occupation,
economic circumstances, life style and personality and self concept. ( a ) A ge a nd Life C ycle Sta g e People buy different goods and services over
their life time. Consumption is also shaped by the stage of the family life cycle. There are nine stages of the family life cycle (Table) and in these stages the person behaves in a different way. ( b ) Occup at io n A person s buying behavioural pattern is also influenced by his
occupation. For example, a company president will buy expensive suits, credit card membership etc. The marketer turns to find out the different occupational groups of the segment and draft the plan accordingly.
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Consumer Behaviour
Stages of the Family Life Cycle
Stage in Family Life Cycle Bach el or s ta t e : Young, single people not living at home. N ew ly mar r ied cou pl es : Young, no children. Buying or Behavioural Patterns Few financial burdens, recreation oriented. Buy basic items like furniture, games, enjoy vactions. High purchase rates and highest average purchase of durables Ful l, nes t I : Youngest, child under six Home purchasing at peak. Dissatisfied with financial position and amount of money saved. Interested in new products like washers, T.V., baby food etc Ful l nes t II : Youngest, child six or over. Financial position better, less influenced by advertising. Buy large sized packages Ful l n est I II : Old married couples with dependent children. Financial position still better. High average purchase of durable. Buy new, more tasteful furniture, unnecessary appliances and
magazines. Home ownership at peak. Most satisfied with financial position and money saved Emp t y nes t I : Older married couples, no children living with them. Interested in travel, recreation, self education. Not interested in new products. Spend forenjoying vacations, luxuries andhome improvements Emp t y nes t I I : Older married. No children living at home, head retired Sol it a ry su r vi vo r , in labour force Solitary survivor, retired. Drastic cut in income. Buy medical appliances, medical care products etc Income still good but likely to sell home Some medical and product needs as other retired group: Drastic cut in income, special need for attention, affection and security Table 3.2
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Consumer Behaviour
Eco no mi c D et er mi na n ts
Economic considerations are very powerful and
influenceable as far as the 84ulfills is concerned. Marshall was the first person to examine the role of economic factors on human 84ulfills. The human being want to 84ulfills his statisfaction by his 84ulfills. The human being wants to 84ulfills his satisfaction by his limited resources. Before taking any decision, a consumer collects various informations. Economic model is based on the assumption that the price of the product affects its demand. The important economic factors is income and liquid assets. Income is the most powerful economic factor to influence consumer 84ulfills because it gives him purchasing power, from the marketer s point of view. Here, the disposable income is important than the gross income. Disposable income is that part of a person s income which remains after deduction because of state taxes and repayment of debt etc. Out of the disposable income, a major share is spent to meet the basic needs like food, shelter, education etc. The remaining income after it is called as discretionary income. Total Income Taxes, Repayment of d = Disposable income. Money spend for fulfilling basic needs = Discretionary income.
Disposable Income
With reference to Indian consumers, it is not his personal income that decides his buying power but the income of the family as a whole has a great influence on his buying 84ulfills. (d ) Lif e Style People coming from same sub culture, social class and
occupation may lead quite different life styles. A person s life style is the person s pattern of living in the world as expressed in the person s activities, interests and opinions. Life style portrays the person s interaction with the environment. Life style show a person s way of being and acting in the world. Marketer search for relationships between their products and life style group. The marketer needs to be aware of these life-styles in his target market. He may choose to position his product to suit a life-style of an achiever or a royalty or as provided by the ALS framework developed by the Arnold Mitchell of SRI International. According to this framework people can be 84ulfills848484 into nine groups. These are
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Consumer Behaviour
1. Survivors
These are disadvantaged people who tend to be despairing,
depressed, withdrawn. 2. Emulators These are ambitious, upwardly mobile, and status conscious,
they want to make it big . 3. Integrate These are man and woman who are fully matured
psychologically and combine the best elements of inner directness and outer directness. 4. Sustainers Sustainers are disadvantaged peope who are valiantly
struggling to get out of proverty. 5. Belongers These are individuals who are conventional, conservative,
nostalgic, and unexperimental, and who would rather fit in than stand out. 6. Achievers These are the nation s leaders, who make things happen, work
within these system, and enjoy the good life. 7. I am me These are people who are typically young, s elf engrossed, and
given to whim. 8. Societally Conscious These are those who ha ve a h ig h s en s e of social
responsibility and want to i mp ro ve conditions in society. 9. Experimentals These are individuals who pursue a r ich inner life and
want to experience directly what life ha s t o offer. Th i s categorization of individuals is based on the assumption t ha t each of them goes through various stages of development, an d ea ch st a ge affects their attitudes, psychological needs a nd 85ulfi ll s. Ma s lo w s theory of hierarchy of needs state that, ea ch i nd ivid u al g oes through survival needs (survivors and sustainer) t o affi li at io n an d esteem (belongers, emulators, achievers) t o mo r e in ner - di r ect ed needs ( I-am-me experimentials and s ociet all y co n scio u s ) . Very few of us reach the integrates level. Marketers direct their products and brands to the aff il ia ti on, est eem an d inner-directed needs. For example, the positioning of G w al io r suitings using Nawab Pataudi, Sharmila Tagore a nd th eir s o n, O r consider Raymond s suiting ads showing their ma na gi ng di r ecto r M r. Vijaypat Singhania, wearing one of their s ui t len gt hs, aft er a successful solo flight. Once again, Citibank D in er s
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Consumer Behaviour
ad p o si ti on in th e card a t emulators and achievers illustrate t he as e of l if est yl e in contemporary marketing.
Personality
Each person has a distinct personality t h a t will influence his Per so n ali t y mean s th e p er s on s
86ulfills. According to Philip Kotler,
di st in gu i sh in g p sycho lo gi ca l ch a ra cteri s ti cs t h at lea d to r el at i vely co n si st ent an d en d ur in g r es po n s es t o h is envi ro n men t Personality is
usually described in t e r m s of traits like self confidence, dominance, defensiveness, a d a p t a b i l i t y etc.
Generally attitudes and beliefs lead an individual to a consistent response to the 86ulfills868686. This consistency of 86ulfills is known as personality. Researches have shown that correlation exists between personality type and product choices.
(f) Self -C on cep t Each of us has a self-image. This self-image is based on the
person/s whom we see as our role models. We then act and behave like these role models believing that we are them. This affects our dress, hairstyles and almost every other thing including our table manners. This concept of self-image has been termed as self-concept. The self-image could be an individuals own perceive image (this may even be termed as ideal self-image) and actual image based on how other 86ulfills the individual. There could at times be a conflict between the two. All individuals try to bring about congruence between these two sets of their images. Recent researches in consumer 86ulfills have concluded that a large number of products like credit cards, automobiles, ready-made garments, designer weares, cosmetics and perfumes are bought because of this variable. Often the demographic variable like income is not important purchase decisions for these products. Many marketer use a concept related to personality a persons self-concept or self-image. Marketer should try to develop brand images that match the self-image of the target market. These researches suggest that a marketer needs to study the self-concept of his target buyers and accordingly design products, packaging and advertising. Strategies that will help reinforce this self concept of Shoppers Stop, Godrej s
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Consumer Behaviour
Crowning Glory and Dinesh Suiting with Sunil Gawasker s endorsement. All these campaigns are aimed at customers who have a specific self-image of them.
4. Psychological Factors
(a) Mo ti vati o n
Psychological factors include motivation,
perceptionlearning, attitudes and beliefs. Motivation is an internal urge to do something. Why a person
acts at all ? The answer can be given by understanding those forces which affect these actions. A person acts because he wants to 87ulfill his needs. All the acts of a person are based on his desire to 87ulfill the needs and the need is the rationality of each and every action. The psychological, physiologica l social, and other needs motivate the customer. Abraham Maslow has presented the hierarchy of human needs to explain the 87ulfills of the individual. Need is a 87ulfills8787 want and leads the buyer to act and satisfy it. Only unsatisfied needs result in action. Maslow in hisfive level hierarchy has explained his theory (Fig). He explained that if lower level
needs are satisfied, the consumer aspires for the satisfaction of higher level needs.
Buying motives are the reasons why the consumer buys a product and t he marketing manager is interested to know these motives. Maslow s 87ulfills87 of needs states the following needs which a man strives to fulfill are as follows : 1. Basic Physiological Needs. 2. Knowledge and Understanding 3. Esteem of others and self-respect 4. Beauty and Aesthetics 5. Achievement (self-actualisation) 6. Safety and Security (freedom from worry) 7. Belongingness and social relation. Very often the marketing success of a brand depends on its ability to satisfy several needs at once. Now motivation research techni ques are available to identify the strength or weakness of a product in terms of the need it 87ulfills. The concept of basic need and the theory that the individuals normally try to satisfy them in some order are especially significant.
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Safety & Security Needs
Physiological Needs
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Most of the human responses are based on learning i.e., self learning or the learning of the group. Learning process involves three steps : Drive Cues Specific Response
directed towards a drive-reducing object, it becomes a motive. A drive (need) thus motivates a person for action to satisfy the need. The objects are stimuli, which satisfy our drives. Cu
These are weak stimuli. Cues determine when the buyer will respond.
e have cues, for e ample, a product and advertisement and such other
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A drive is a strong internal stimulus impelling action.
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Consumer Behaviour
stimuli relevant to the situation and such other stimuli relevant to the situation and existing in our environment.
Specific respojise
The individual has to choose some specific response in
order to fulfil the drive or the need, which was acting as a strong stimulus. (c) Per cep ti on Perception is the meaning which a person gives to a stimuli.
Perception influences and shapes the behaviour. It can be defined as a complex process by which people select, organize and interpret sensory stimulation into a meaningful and coherent picture. The marketer must know how a customer perceives a product as a whole, its features, its packaging, its price etc., and then formulate the broad plans. (d ) At ti tu d es A nd B el ief s Attitudes are the emotional predispositions to
respond positively or negatively to an object or class of objects. Predisposition is the result of constant learning influenced by the perception and personality. It is very difficult to change the perception because it is the result of continued learning. Attitudes led people to behave in fairly consistent way toward similar objects. If a consumer is brand loyal then it is very difficult to change his attitude and belief towards that brand. The marketer must try to identify the attitudes and beliefs of the customer segment and then develop the appropriate positioning strategy. Attitude governs or response to a stimulus and leads us to a certain behaviour, usually to action. It is no t neutral. It means to be involved emotionally and be ready for action. It indicates our position of favour or against, friendly or hostile. It induces us to take appropriate action. It is learned through experiences. It interactswith perception, thinking, feeling, and reasoning. The marketing-mix the marketer can confirm existing attitudes to his producer, if it is doing well. He may change his present if the product is not doing well and even create new attitude, introducing a new product. Advertisements and sale promotion devices are important tools to change, confirm or create attitudes in the buyer's mind.
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Stages in the buyer decision process 1. N eed r eco gn iti o n The buying process starts with need recognition. As the person is
motivated to act only when he has some unsatisfied need. If some needs are not in activated stage then they can be made activated by providing the information about the product. For example, working women feel the need for washing machine. This recognition of need will activate her to search for any washin g aid and it will result in some decision. 2. Pre -p u rcha s e inf o r mat io n s ea r ch After recognizing the need, the person is
involved in gathering the information about the product or service. Search may be of two types: In t er n al s ea r ch refers to recalling the relevant information stored in the memory. Exter na l s ear ch refers to the deliberate and voluntary seeking of new information regarding the product under consideration. After collecting the information from different sources the person shows the interest in those products. 3. Eval ua ti on of a lt ern at ives Once the interest in the product is aroused, the person
makes final decision using certain evaluative criteria like product attributes, the relative importance of each attribute to the consumer brand image, attitudes towards the different brands etc. The evaluation stage represents the stage of mental trial of the product. 4. Pu r ch a se Deci s io n After the evaluation, the consumer develops the intention either
to purchase or reject the product. The final purchase will however, depend on the strength of positive intention, that is the intention to buy. 5. Po s t p u rcha s e beha vi ou r After making the purchase decision the person shows the
response of the purchase. It is called as post purchase behaviour. It may be positive or negative. If a consumer is buying something for the first time then from the behavioural viewpoint it may be regarded as a trial. The trial enables the person to gain learning about the product purchased. If the learning is positive, then it results in repeat purchase and if it is negative then it result in discontinuation. In case of consumer durable products, the person's learning does not result in repeat purchase or discontinuation because these products are one time purchase products. In these cases the learning is being stored and then it serves as influence for the decision of the reference group members.
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Consumer Behaviour
Models Of Consumer Behaviour There are many influencing factors, which affects the consumer behaviour. Purchase is only one stage of consumer behaviour. Here we are discussing two models of consumer behaviour applicable to individual consumer. Ho w a r d Sh et h Mo d el of variable 1. Inputs 2. Perceptual constructs 3. Learning constructs 4. Output 5. Exogenous variables. 1. In pu ts The inputs to the customer decision process are provided by three distinct types The model explains the buyer decision process using f i v e major sets
of stimuli. The two types of stimuli are being provided by three distinct types of stimuli. The two types of stimuli are being provided by the marketer include from the product like quality, price, distinctiveness, service and availability in tangible and intangible form. The third type of stimuli is provided by the consumer's reference groups and social class to whom he belongs. 2. Per p et ua l Con s t ru ct The first of the two sets of hypothetical constructs in the
Howard Sheth model are those concerned with perception. These concepts pertains to the way the individual deals with information even from various sources. The consumer receives the stimuli and interprets it. The two factors that may influence his interpretation are stimulus ambiguity and perceptual bias. Stimulus ambiguity occurs when the person is not sure of meaning of the stimulus that he has received and how it may influence his response. Perceptual bias occurs when he di storts the information he receives to fit his established needs or experiences. 3. Lear ni ng C on s t ru ct The second set of hypothetical construct is more complex. Note
from the figure that the actual purchase, the observable behaviour is related to the individual's intention which Howard and Sheth term the buyer's forecast as to when, where, and how he is likely to buy the brand. Most closely related to the buyer's intention is his attitude toward the product or brand. As it is clear from the model, attitudes a ffect and are affected by a number of other variables as well as q u i t e complex on their own.
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onsumer
Fig 3.3 The manner in which the consumer interprets the stimuli leadsh i m to the stage of brand comprehension. This refers to the consusmer's understanding and overall rating of the brand. If the consumer rates it high. It leads him to have confidence in it and eventually to the purchase decision. 4. Out ut
The purchase decision is output. After using the product, if the consumer is
satisfied with it, it will reinforce h i s positive attitude and will increase his brand comprehension. If the consumer is dissatisfied with product, it will lead to negative attitude, low attention to product stimuli, poor brand comprehension and negative intention to purchase. 5. Ex
e
us Variables
The theory includes a number of variables which are not
e plained but which do influence some or al l the constructs and indirectly through these constructs the output (purchase). The e ogenous variables vary from one consumer to another and include social and organisational setting, social class, culture and financial status
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9 G DF ED C G
ehaviour
Consumer Behaviour
Engel-blackwell Kollat Model of consumer behaviour
Information Processing Stimuli Exposure Information and Evaluative Criteria Attitude Retention Personality Attention
Filter EnvironmentInfluences
Central Control Unit
Income Culture Family Social Class Physical Other
Compreh ension
Problem Recognition Information Feedback Internal Search Alternative Evaluation Hold
Post purchase Evaluation
H
External Search
External Search Alternative Evaluation Hold
H
Hold
Purchasing Process
Fig 3.4
Outcomes
Further Behaviour
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Consumer Behaviour
Engle-Blackwell Kollat Model consists of four components: y y y y y Information Processing Central control unit Decision Process Environmental influences. Inf or ma ti on Pr oces si ng The components include exposure, attention,
comprehension and retention of stimuli relating to a product/brand. For marketer, it is necessary to understand whether the customer is exposed to the message (stimuli), pay attention to it, comprehend it and rememb ers it. y Cen t ra l C on tr ol Un it The stimuli thus received are received and retained. The
stimuli is processed and interpreted with the help of four psychological filters : o Stored information and past experience serves as internal source for composing different alternatives. o Evaluative criteria which the consumer uses in judging the alternatives. o Specific and general attitudes influencing the purchase decision. o Personality traits which are likely to influence the customer in evaluation of alternatives. y Decis i o n Pr o ces s The process involves the five steps namely problem recognition,
internal search and evaluation, external search and evaluation, purchasing process and decision outcomes. y En vi ro n ment al Inf lu ences These include income, culture, family, social class,
physical situation and others. Depending upon the specific product under consideration, these factors may have a favourable or unfavourable influence on the purchase decision.
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Consumer Behaviour
Types Of Buying Behaviour
Consumer decision making varies with the type of buying decision. There is a great difference in the behaviour between buying consumer durable a nd consumer non-durable. Assael had identified four types of buying behaviour based on involvement and differences among bands 1. Complex buying behavior. 2. Dissonance reducing buying behaviour. 3. Variety seeking buying behaviour. 4. Habitual buying behaviour. 1. Co mp lex B uyin g Beha vi ou r When the customers are highly involved in the purchase and
there are significant differences among brand, they show this type of behaviour. Consusmers are highly involved because product is expensive, brought infrequently, risky and highly self expressive. The customer does not know much about the product and wants to gather a lot of information because of the significant diff erences among brands. 2. Di s so na n ce Redu cin g Bu yi n g Beha vio u r The customer is highly involved because the
product is expensive and risky. There are very little differences among brands so the customer is confused and wants to collect a lot of information . After the purchase, the customer might develop dissonance because of dissatisfying features of the purchased products. So while purchasing, the customer wants to satisfy himself by collecting repurchase information. 3. V a ri et y Seekin g Bu yi ng B eh avio u r In this type, the customer shows low involvement
because the product is inexpensive, purchased frequently. The customer has some belief, choose a brand without much evaluation and also evaluates it during consumption. Differences among Brands Involvement
Significant differences among brands Complex buying behaviour Variety seeking buying behaviour
Few differences among brand Dissonance reducing buying behaviour Habitual buying behaviour
High involvement
Low Involvement
4. Habitual Buying Behaviour
It is shown when the customer has low involvement and adsence of
significance brand differences. Marketers of low involvement products will have few brand differences, find it effective to use price and sales promotions as an incentives to product trail, since buyers are not highly commited to any particular brand.
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Consumer Behaviour
Consumer Behaviour Marketing concept start with the consumer needs and behaviour in meeting these needs. Every action of a person is based on needs. The real problem is to learn what a customer takes into I consideration when he chooses a particular brand. Such a study is concerned with consumer behaviour. Consumer/Buyer behaviour is that subset of human behaviour that is concerned with decisions and acts of individuals in purchasing and using products. Consumer behaviour, a subset of customer's behaviour, is concerned with decisions that lead up to the act of purcha se. A human being by nature is very complex. It is very difficult to understand the human behaviour. It is. the human brain which directs all the activities of a human being. It is said that human brain is like a black box. It is very difficult to see it. As shown in the Fig that we can see input and output but not the real machanism, how the inputs are transformed into the output. In simple way, we can say that the behaviour is the response of a stimuli. The usual stimulus is the need for which there is ac tion called response.
"Consumer behaviour can be defined as the activities and the actions of people and organisation that purchase and use economic goods and services, including the influence on these activities and actions. " J.F. Engel
"Consumer buying behaviour refers to the buying behaviour of final consumers individuals and households who buy goods and services for personal consumption." Kotler & Armstrong "Consumer behavou r consist of the acts of individuals in obtaining, using and disposing of economic goods and services, including the decision processes that precede and determine these acts." Boone & Kurtz
"Consumer behaviour may be defined as the behaviour that consumers display in searching for, purchasing, suing, evaluating and disposing of produces, services, and ideas which they expect will satisfy their needs." Long Schiffman & Leslie Kanuk
Thus, the study of consumer behaviour is the study of how individuals make decisions to spend their available resources (money, time and effort) on consumption -related items. However, it may be noted that consumer behaviour research today goes for beyond 'what, why, how, when, where and how often' facets of consumer behaviour and also considers the uses which consumers make of the goods they by and their evaluations of these goods after use. There may be many
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Consumer Behaviour
repercussions after the consumer makes a purchase. For example, a person may feel sorrow and guilt or dissatisfaction with his choice of a particular automobile, because of continuing working and maintenance expenses over it. He may swear not to buy the same make or model again and may also refer his grievance to his friends conveying the dismal performance of the car. Each of these possible consequences of consumer's post purchase dissatisfaction has significant implications for the marketer.
In o th er wo rd s i t can b e s ai d, "consumer behaviour refers to a l l the psychological, physiological and socio psychological reasons of in di vi du al consumer's response to marketing app eal s'. The Study of consumer behaviour attempts to find the answer for the following questions: 1. Who are the customers ? 2. What do they buy ? 3. Where do they buy ? 4. How do they buy ? 5. Why do they buy ? 6. When do they buy ? For the marketer that person is important who makes the buying decision, not the one who actually makes the purchase or uses the product ? Understanding this person helps marketers to develop marketing mixes and predict how targeted customers will respond to them. Importance of Studying Consumer Behaviour As a matter of fact, costomer is the pivot around which the whole industrial system of now a days revolves. The economists have called the 'customer' a 'king'. He is just like a voter in democracy. His selection of goods or services determines the fate of the products/services. So, in order to attract him more and more, the marketing personn el should know their customers well so that they could treat them in the way they like to be treated, present them goods in the way, they will appreciate and close a sale in such a way that consumer satisfaction is created. The study of consumer behaviour is very useful in determining the form, style, packing, brand, tradmark etc. of the product. The whole aspect of buying behaviour determines the durability, price policy and utility aspect in goods. When does aspect of purchasing also determine the quality , size and price policy of the products ? How does aspect determine the nature of customer services and style of
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Consumer Behaviour
packing, etc ? Where does aspect determines the place relating to physical distribution, channels of distribution policies and so on ? Hence, the study of consumer behaviour is useful, rather essential in formulating various marketing policies. Psychology Of Consumers For making a successful marketing program it is necessary for a marketer to study the consumer behaviour so that he would know the attitudes, intentions, desires of the customers. Customer psychology has the following components : 1. Kn o wl edg e Knowledge is one type of information and on the basis of the knowledge,
the psychology of customer develops. For giving knowledge of the product to the customers, promotion plays an important role. 2. Att it ud e Attitude is a#state of mind or feeling. It induces a predisposition to behave in
some way. Attitudes are very important in explaining buyer behaviour. 3. In tent io n Intention means desires to do some thing. After knowing the intention of
customers, the marketing programme can be formulated and can be co-ordinated with the production. 4. Mo ti ve It is the integral state which directs the behaviour of a person. Some people
call it urge. Because of the urge, the person's behaviour is directed towards a particular cause.
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Consumer Behaviour
Factor Influencing Consumer Beha viour : A consumer takes different types of decision. In order to understand the consumer the marketer must make extensive use of social sciences including psychology, sociology, economics and anthropology. Fig. presents the major influences on consumer buying decisions. There are intra personal, inter personal and many other environmental variables that affect consumer's decision making process. The interpersonal influences include family, social class, reference group, cultural and financial status of an individual. The intra personal variables include motivation, perception, learning, attitude and personality of the buyer.
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Fig 3.1
Consumer Behaviour
1. Cultural Factors
These factors exert the broadest and deepest influence on
consumer behaviour. They i n cl u d e : ( a ) Culture Culture is an important determinant of human behaviour in the
society. Culture refers to people's shared customs, beliefs, values and artifacts, (housing, works of art and so on) that are transmitted from generation to generation. The study of culture is necessary to understand the human behaviour. It refers to the study of acquired or cultivated behaviour. The study of culture helps the marketer in his efforts to study the non-rational aspect of consumer behaviour. The basic characteristics of a culture are as follows : 1. The culture is inculcated into an individual and passed on from generation to generation. 2. The customer lives in a society having certain cultural characteristics. Though the customer has to learn every thing from his experience but culture provides certain patterns of behaviour to be adopted. 3. Cultural values keep on changing through the passage of time. 4. Culture meets different types of needs of an individual in society and if its elements do not confor m to the individual they extinguish. 5. The cultural values are shared by the society as a whole. (b)Sub Culture Each culture consists of smaller sub-cultures that povide more
specific identification for its members. Four types of sub-cultures can be distinguished i.e., nationality groups, religious groups, racial groups, and geographical areas. (c) Social Class It is identified as relatively permanent a n d homogeneous group
of people having certain identifiable characteristics. According to P. Kotler, social classes are relatively homogeneous and enduring divisions in a society, which are hierarchically ordered, and whose members share similar values, interests and behaviour. The marketer has to study the behavioural patterns of these classes so as to formulate the marketing strategy and promotional communication. Social class is a complex variable, which is determined by the persons income, occupation, education, personal performance and possession of different
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Consumer Behaviour
types of products. Social classes can be categorised on the basis of a number undedicated and so on. The major social classes commonly accepted and categories are : upper class with upper upper and lower upper, middle class with upper middle and lower middle, and lower class with upper lower and lower Lower. These classes have their distinguishing characteristics and dominant consumption patterns.
Life style orientations and purchasing tendencies of the different social classes.
Social Class Upper Class Life-style Orientation Purchasing Tendencies Good taste Graceful Quality merchandise living Good things in life Expensive hobby and Individual expression recreation equipment Interest in arts and Art culture Books Travel Respectability Items in fashion Items related to s elfConformity Prosperity presentation Nice clothing, Social esteem neighbourhood, and homeItems for children Fun oriented Parochial Unsophisticated taste Focus on possessions not ideas Closefamily relationship Not interested in world affairs Neighbourhood oriented Immediate gratification Table 3.1 Newest appliances Sporting events Newest and biggest items
Middle Class
Working Class
Lower Class
Status symbols Products enhancing selfesteemPseudo-symbols of prosperity, such as used scooters Readily available products
2. Social Factors status.
Social factors includes reference groups, family and social roles and
( a ) Ref er en ce Gr ou p s
Reference group is a relatively small social group to
which a person belongs or aspires to belong and that provide guides to acceptable beliefs, values, attitudes and 79ehavior. According to Philip Kotler, a persons reference groups consist of all the groups that have a direct (face to face) or indirect influence on the person s attitudes or 79ehavior. Reference groups are of different types :
79
Consumer Behaviour
1. Membership Groups
Groups have the direct influence on a person are
called membership groups. These are groups to which a person belongs and interacts. 2. Primary Groups Here the person interact fairly continuously as family
friends, neighbours, co-workers. These groups are informal. 3. Secondary Groups The members have less continuous interaction and
they tend to be formal e.g. religious groups, professional groups etc. 4. Aspirational Groups The group to which a person like to belong but is
not the member of that group. 5. Dissociative Group individual. The most influential primary group is, of course, the family. Peer groups are composed of individuals who spend considerable time together and are of fairly common age and social background. Other groups with varying degrees of 80ehavior80ng influence are religious groups, educational groups, political institutions and work groups. Any of these groups may be classified as peer groups if they are sufficiently homogeneous. The peer groups have the greatest influence on the individual as a consumer because the groups general interest and mode of life are most nearly like his own. The importance of reference group influence varies among products and brands. Marketers of products and brands where group influence is strong must determine how to reach and influence the opinion leaders. Group influence is strong for products that are visible to others whom the buyer respects. According to Philip Kotler, an individual is influenced by a referenc e group in the following manner. 1. These groups expose an individual to new 80ehavior and life styles. 2. They also influence the person s attitudes and self concept because the person normally desires to fit in 3. They create pressures for conformity that may affect the person s actual product and brand choices. Importance of Groups of Marketing Knowledge of reference groups and other A group whose values are rejected by the
influences make it easier to explain why consumer behave in a particular why. It
80
Consumer Behaviour
keeps the marketer to predict their 81ehavior. A young executive, for example, may dress and act differently when in the job and in contact with his business associates, but off the job, he may behave and dress quite differently, ( b ) Fa mi ly The family is considered as one of the strongest sources of group
influence for the individual consumer. The joint family is the most common form of family system in India. From the marketers point of view, the decision making role in the joint family system is being played by the oldest member of the family. It is not always that the authority vests with him but it can be diffused also. The marketer must know income of the family as a whole that are being used for family purchase. The family is the most important of all these groups. It is a source of major influence of individual members buying 81ehavior. Within the family different members play different roles. Marketers are interested in finding out exactly the role played by individual members so that they can appropriately design their promotion strategy to suit these differing roles. Traditionally, it has been the wife s role to purchase food, clothing and other household articles and sundries, while the husband played a dominant role in the purchase of automobiles, life insurance and investment etc. However, today, this role has changed. Husbands now have to shoulder a greater part of household duty while women are asserting themselves in areas so far greater as husband s domain. Thus, the same purchase decision in different families may be made either by the husband or wife; or both may have an equal voice, Children are also beginning to exert their influence on the family s purchase decisions. This is especially true incase of products of common interest, such as television, VCR, stereo music system, two-in-one audio set, personal
computers, etc. where the children are likely to have more updated information about various brands and product attributes. Children s influence generally centres around toys, fast-food restaurants, video games, movies, sport equipments, groceries etc. IO pi ni on Lead er s A part from the family, a consumer is influenced by the
advice he receives from his friends, neighbours, relations and colleagues about what products and services he should buy. This process of influencing the purchase decision is known as opinion leadership. Opinion leadership is the process by which
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Consumer Behaviour
one person (the opinion leader) informally influences the actions or attitudes of others who. May be opinion seekers or merely opinion recipients. Opinion receivers perceive the opinion leader to be a shighly credible objective source of product information who can help reduce their search time and perceived task. Every group usually contains of few members who can be considered opinion leaders or trendsetters. These then communicate their experience with the new products via word-of-mouth. For instance, during lunch hour a person may casually ask his colleague to recommend a good model of television. Similarly, one may discuss with his neighbours or relatives what brand of electronic power generator he should buy for complete satisfaction. Further, this process often occurs only in case of two -three persons rather than in a large group setting. Generalised opinion leaders are rare. Instead, Individuals tend to be opinion leaders for specific goods or services due to their considerable knowledge and interest in that particular product. (d )R ol es an d St a tu s A person participates in many groups throughout the life.
The person s position in each group can be defined in terms of roles and status. A role consists of activities that a person is expected to perform according to the persons around him. Each role carries a status reflecting the esteem given to it by society. 3. Pers o na l Facto r s Personal factors include age and life cycle stage, occupation,
economic circumstances, life style and personality and self concept. ( a ) A ge a nd Life C ycle Sta g e People buy different goods and services over
their life time. Consumption is also shaped by the stage of the family life cycle. There are nine stages of the family life cycle (Table) and in these stages the person behaves in a different way. ( b ) Occup at io n A person s buying behavioural pattern is also influenced by his
occupation. For example, a company president will buy expensive suits, credit card membership etc. The marketer turns to find out the different occupational groups of the segment and draft the plan accordingly.
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Consumer Behaviour
Stages of the Family Life Cycle
Stage in Family Life Cycle Bach el or s ta t e : Young, single people not living at home. N ew ly mar r ied cou pl es : Young, no children. Buying or Behavioural Patterns Few financial burdens, recreation oriented. Buy basic items like furniture, games, enjoy vactions. High purchase rates and highest average purchase of durables Ful l, nes t I : Youngest, child under six Home purchasing at peak. Dissatisfied with financial position and amount of money saved. Interested in new products like washers, T.V., baby food etc Ful l nes t II : Youngest, child six or over. Financial position better, less influenced by advertising. Buy large sized packages Ful l n est I II : Old married couples with dependent children. Financial position still better. High average purchase of durable. Buy new, more tasteful furniture, unnecessary appliances and
magazines. Home ownership at peak. Most satisfied with financial position and money saved Emp t y nes t I : Older married couples, no children living with them. Interested in travel, recreation, self education. Not interested in new products. Spend forenjoying vacations, luxuries andhome improvements Emp t y nes t I I : Older married. No children living at home, head retired Sol it a ry su r vi vo r , in labour force Solitary survivor, retired. Drastic cut in income. Buy medical appliances, medical care products etc Income still good but likely to sell home Some medical and product needs as other retired group: Drastic cut in income, special need for attention, affection and security Table 3.2
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Consumer Behaviour
Eco no mi c D et er mi na n ts
Economic considerations are very powerful and
influenceable as far as the 84ulfills is concerned. Marshall was the first person to examine the role of economic factors on human 84ulfills. The human being want to 84ulfills his statisfaction by his 84ulfills. The human being wants to 84ulfills his satisfaction by his limited resources. Before taking any decision, a consumer collects various informations. Economic model is based on the assumption that the price of the product affects its demand. The important economic factors is income and liquid assets. Income is the most powerful economic factor to influence consumer 84ulfills because it gives him purchasing power, from the marketer s point of view. Here, the disposable income is important than the gross income. Disposable income is that part of a person s income which remains after deduction because of state taxes and repayment of debt etc. Out of the disposable income, a major share is spent to meet the basic needs like food, shelter, education etc. The remaining income after it is called as discretionary income. Total Income Taxes, Repayment of d = Disposable income. Money spend for fulfilling basic needs = Discretionary income.
Disposable Income
With reference to Indian consumers, it is not his personal income that decides his buying power but the income of the family as a whole has a great influence on his buying 84ulfills. (d ) Lif e Style People coming from same sub culture, social class and
occupation may lead quite different life styles. A person s life style is the person s pattern of living in the world as expressed in the person s activities, interests and opinions. Life style portrays the person s interaction with the environment. Life style show a person s way of being and acting in the world. Marketer search for relationships between their products and life style group. The marketer needs to be aware of these life-styles in his target market. He may choose to position his product to suit a life-style of an achiever or a royalty or as provided by the ALS framework developed by the Arnold Mitchell of SRI International. According to this framework people can be 84ulfills848484 into nine groups. These are
84
Consumer Behaviour
1. Survivors
These are disadvantaged people who tend to be despairing,
depressed, withdrawn. 2. Emulators These are ambitious, upwardly mobile, and status conscious,
they want to make it big . 3. Integrate These are man and woman who are fully matured
psychologically and combine the best elements of inner directness and outer directness. 4. Sustainers Sustainers are disadvantaged peope who are valiantly
struggling to get out of proverty. 5. Belongers These are individuals who are conventional, conservative,
nostalgic, and unexperimental, and who would rather fit in than stand out. 6. Achievers These are the nation s leaders, who make things happen, work
within these system, and enjoy the good life. 7. I am me These are people who are typically young, s elf engrossed, and
given to whim. 8. Societally Conscious These are those who ha ve a h ig h s en s e of social
responsibility and want to i mp ro ve conditions in society. 9. Experimentals These are individuals who pursue a r ich inner life and
want to experience directly what life ha s t o offer. Th i s categorization of individuals is based on the assumption t ha t each of them goes through various stages of development, an d ea ch st a ge affects their attitudes, psychological needs a nd 85ulfi ll s. Ma s lo w s theory of hierarchy of needs state that, ea ch i nd ivid u al g oes through survival needs (survivors and sustainer) t o affi li at io n an d esteem (belongers, emulators, achievers) t o mo r e in ner - di r ect ed needs ( I-am-me experimentials and s ociet all y co n scio u s ) . Very few of us reach the integrates level. Marketers direct their products and brands to the aff il ia ti on, est eem an d inner-directed needs. For example, the positioning of G w al io r suitings using Nawab Pataudi, Sharmila Tagore a nd th eir s o n, O r consider Raymond s suiting ads showing their ma na gi ng di r ecto r M r. Vijaypat Singhania, wearing one of their s ui t len gt hs, aft er a successful solo flight. Once again, Citibank D in er s
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Consumer Behaviour
ad p o si ti on in th e card a t emulators and achievers illustrate t he as e of l if est yl e in contemporary marketing.
Personality
Each person has a distinct personality t h a t will influence his Per so n ali t y mean s th e p er s on s
86ulfills. According to Philip Kotler,
di st in gu i sh in g p sycho lo gi ca l ch a ra cteri s ti cs t h at lea d to r el at i vely co n si st ent an d en d ur in g r es po n s es t o h is envi ro n men t Personality is
usually described in t e r m s of traits like self confidence, dominance, defensiveness, a d a p t a b i l i t y etc.
Generally attitudes and beliefs lead an individual to a consistent response to the 86ulfills868686. This consistency of 86ulfills is known as personality. Researches have shown that correlation exists between personality type and product choices.
(f) Self -C on cep t Each of us has a self-image. This self-image is based on the
person/s whom we see as our role models. We then act and behave like these role models believing that we are them. This affects our dress, hairstyles and almost every other thing including our table manners. This concept of self-image has been termed as self-concept. The self-image could be an individuals own perceive image (this may even be termed as ideal self-image) and actual image based on how other 86ulfills the individual. There could at times be a conflict between the two. All individuals try to bring about congruence between these two sets of their images. Recent researches in consumer 86ulfills have concluded that a large number of products like credit cards, automobiles, ready-made garments, designer weares, cosmetics and perfumes are bought because of this variable. Often the demographic variable like income is not important purchase decisions for these products. Many marketer use a concept related to personality a persons self-concept or self-image. Marketer should try to develop brand images that match the self-image of the target market. These researches suggest that a marketer needs to study the self-concept of his target buyers and accordingly design products, packaging and advertising. Strategies that will help reinforce this self concept of Shoppers Stop, Godrej s
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Consumer Behaviour
Crowning Glory and Dinesh Suiting with Sunil Gawasker s endorsement. All these campaigns are aimed at customers who have a specific self-image of them.
4. Psychological Factors
(a) Mo ti vati o n
Psychological factors include motivation,
perceptionlearning, attitudes and beliefs. Motivation is an internal urge to do something. Why a person
acts at all ? The answer can be given by understanding those forces which affect these actions. A person acts because he wants to 87ulfill his needs. All the acts of a person are based on his desire to 87ulfill the needs and the need is the rationality of each and every action. The psychological, physiologica l social, and other needs motivate the customer. Abraham Maslow has presented the hierarchy of human needs to explain the 87ulfills of the individual. Need is a 87ulfills8787 want and leads the buyer to act and satisfy it. Only unsatisfied needs result in action. Maslow in hisfive level hierarchy has explained his theory (Fig). He explained that if lower level
needs are satisfied, the consumer aspires for the satisfaction of higher level needs.
Buying motives are the reasons why the consumer buys a product and t he marketing manager is interested to know these motives. Maslow s 87ulfills87 of needs states the following needs which a man strives to fulfill are as follows : 1. Basic Physiological Needs. 2. Knowledge and Understanding 3. Esteem of others and self-respect 4. Beauty and Aesthetics 5. Achievement (self-actualisation) 6. Safety and Security (freedom from worry) 7. Belongingness and social relation. Very often the marketing success of a brand depends on its ability to satisfy several needs at once. Now motivation research techni ques are available to identify the strength or weakness of a product in terms of the need it 87ulfills. The concept of basic need and the theory that the individuals normally try to satisfy them in some order are especially significant.
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Safety & Security Needs
Physiological Needs
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Most of the human responses are based on learning i.e., self learning or the learning of the group. Learning process involves three steps : Drive Cues Specific Response
directed towards a drive-reducing object, it becomes a motive. A drive (need) thus motivates a person for action to satisfy the need. The objects are stimuli, which satisfy our drives. Cu
These are weak stimuli. Cues determine when the buyer will respond.
e have cues, for e ample, a product and advertisement and such other
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Consumer Behaviour
stimuli relevant to the situation and such other stimuli relevant to the situation and existing in our environment.
Specific respojise
The individual has to choose some specific response in
order to fulfil the drive or the need, which was acting as a strong stimulus. (c) Per cep ti on Perception is the meaning which a person gives to a stimuli.
Perception influences and shapes the behaviour. It can be defined as a complex process by which people select, organize and interpret sensory stimulation into a meaningful and coherent picture. The marketer must know how a customer perceives a product as a whole, its features, its packaging, its price etc., and then formulate the broad plans. (d ) At ti tu d es A nd B el ief s Attitudes are the emotional predispositions to
respond positively or negatively to an object or class of objects. Predisposition is the result of constant learning influenced by the perception and personality. It is very difficult to change the perception because it is the result of continued learning. Attitudes led people to behave in fairly consistent way toward similar objects. If a consumer is brand loyal then it is very difficult to change his attitude and belief towards that brand. The marketer must try to identify the attitudes and beliefs of the customer segment and then develop the appropriate positioning strategy. Attitude governs or response to a stimulus and leads us to a certain behaviour, usually to action. It is no t neutral. It means to be involved emotionally and be ready for action. It indicates our position of favour or against, friendly or hostile. It induces us to take appropriate action. It is learned through experiences. It interactswith perception, thinking, feeling, and reasoning. The marketing-mix the marketer can confirm existing attitudes to his producer, if it is doing well. He may change his present if the product is not doing well and even create new attitude, introducing a new product. Advertisements and sale promotion devices are important tools to change, confirm or create attitudes in the buyer's mind.
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Consumer Behaviour
Stages in the buyer decision process 1. N eed r eco gn iti o n The buying process starts with need recognition. As the person is
motivated to act only when he has some unsatisfied need. If some needs are not in activated stage then they can be made activated by providing the information about the product. For example, working women feel the need for washing machine. This recognition of need will activate her to search for any washin g aid and it will result in some decision. 2. Pre -p u rcha s e inf o r mat io n s ea r ch After recognizing the need, the person is
involved in gathering the information about the product or service. Search may be of two types: In t er n al s ea r ch refers to recalling the relevant information stored in the memory. Exter na l s ear ch refers to the deliberate and voluntary seeking of new information regarding the product under consideration. After collecting the information from different sources the person shows the interest in those products. 3. Eval ua ti on of a lt ern at ives Once the interest in the product is aroused, the person
makes final decision using certain evaluative criteria like product attributes, the relative importance of each attribute to the consumer brand image, attitudes towards the different brands etc. The evaluation stage represents the stage of mental trial of the product. 4. Pu r ch a se Deci s io n After the evaluation, the consumer develops the intention either
to purchase or reject the product. The final purchase will however, depend on the strength of positive intention, that is the intention to buy. 5. Po s t p u rcha s e beha vi ou r After making the purchase decision the person shows the
response of the purchase. It is called as post purchase behaviour. It may be positive or negative. If a consumer is buying something for the first time then from the behavioural viewpoint it may be regarded as a trial. The trial enables the person to gain learning about the product purchased. If the learning is positive, then it results in repeat purchase and if it is negative then it result in discontinuation. In case of consumer durable products, the person's learning does not result in repeat purchase or discontinuation because these products are one time purchase products. In these cases the learning is being stored and then it serves as influence for the decision of the reference group members.
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Consumer Behaviour
Models Of Consumer Behaviour There are many influencing factors, which affects the consumer behaviour. Purchase is only one stage of consumer behaviour. Here we are discussing two models of consumer behaviour applicable to individual consumer. Ho w a r d Sh et h Mo d el of variable 1. Inputs 2. Perceptual constructs 3. Learning constructs 4. Output 5. Exogenous variables. 1. In pu ts The inputs to the customer decision process are provided by three distinct types The model explains the buyer decision process using f i v e major sets
of stimuli. The two types of stimuli are being provided by three distinct types of stimuli. The two types of stimuli are being provided by the marketer include from the product like quality, price, distinctiveness, service and availability in tangible and intangible form. The third type of stimuli is provided by the consumer's reference groups and social class to whom he belongs. 2. Per p et ua l Con s t ru ct The first of the two sets of hypothetical constructs in the
Howard Sheth model are those concerned with perception. These concepts pertains to the way the individual deals with information even from various sources. The consumer receives the stimuli and interprets it. The two factors that may influence his interpretation are stimulus ambiguity and perceptual bias. Stimulus ambiguity occurs when the person is not sure of meaning of the stimulus that he has received and how it may influence his response. Perceptual bias occurs when he di storts the information he receives to fit his established needs or experiences. 3. Lear ni ng C on s t ru ct The second set of hypothetical construct is more complex. Note
from the figure that the actual purchase, the observable behaviour is related to the individual's intention which Howard and Sheth term the buyer's forecast as to when, where, and how he is likely to buy the brand. Most closely related to the buyer's intention is his attitude toward the product or brand. As it is clear from the model, attitudes a ffect and are affected by a number of other variables as well as q u i t e complex on their own.
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onsumer
Fig 3.3 The manner in which the consumer interprets the stimuli leadsh i m to the stage of brand comprehension. This refers to the consusmer's understanding and overall rating of the brand. If the consumer rates it high. It leads him to have confidence in it and eventually to the purchase decision. 4. Out ut
The purchase decision is output. After using the product, if the consumer is
satisfied with it, it will reinforce h i s positive attitude and will increase his brand comprehension. If the consumer is dissatisfied with product, it will lead to negative attitude, low attention to product stimuli, poor brand comprehension and negative intention to purchase. 5. Ex
e
us Variables
The theory includes a number of variables which are not
e plained but which do influence some or al l the constructs and indirectly through these constructs the output (purchase). The e ogenous variables vary from one consumer to another and include social and organisational setting, social class, culture and financial status
BA
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ehaviour
Consumer Behaviour
Engel-blackwell Kollat Model of consumer behaviour
Information Processing Stimuli Exposure Information and Evaluative Criteria Attitude Retention Personality Attention
Filter EnvironmentInfluences
Central Control Unit
Income Culture Family Social Class Physical Other
Compreh ension
Problem Recognition Information Feedback Internal Search Alternative Evaluation Hold
Post purchase Evaluation
H
External Search
External Search Alternative Evaluation Hold
H
Hold
Purchasing Process
Fig 3.4
Outcomes
Further Behaviour
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Consumer Behaviour
Engle-Blackwell Kollat Model consists of four components: y y y y y Information Processing Central control unit Decision Process Environmental influences. Inf or ma ti on Pr oces si ng The components include exposure, attention,
comprehension and retention of stimuli relating to a product/brand. For marketer, it is necessary to understand whether the customer is exposed to the message (stimuli), pay attention to it, comprehend it and rememb ers it. y Cen t ra l C on tr ol Un it The stimuli thus received are received and retained. The
stimuli is processed and interpreted with the help of four psychological filters : o Stored information and past experience serves as internal source for composing different alternatives. o Evaluative criteria which the consumer uses in judging the alternatives. o Specific and general attitudes influencing the purchase decision. o Personality traits which are likely to influence the customer in evaluation of alternatives. y Decis i o n Pr o ces s The process involves the five steps namely problem recognition,
internal search and evaluation, external search and evaluation, purchasing process and decision outcomes. y En vi ro n ment al Inf lu ences These include income, culture, family, social class,
physical situation and others. Depending upon the specific product under consideration, these factors may have a favourable or unfavourable influence on the purchase decision.
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Consumer Behaviour
Types Of Buying Behaviour
Consumer decision making varies with the type of buying decision. There is a great difference in the behaviour between buying consumer durable a nd consumer non-durable. Assael had identified four types of buying behaviour based on involvement and differences among bands 1. Complex buying behavior. 2. Dissonance reducing buying behaviour. 3. Variety seeking buying behaviour. 4. Habitual buying behaviour. 1. Co mp lex B uyin g Beha vi ou r When the customers are highly involved in the purchase and
there are significant differences among brand, they show this type of behaviour. Consusmers are highly involved because product is expensive, brought infrequently, risky and highly self expressive. The customer does not know much about the product and wants to gather a lot of information because of the significant diff erences among brands. 2. Di s so na n ce Redu cin g Bu yi n g Beha vio u r The customer is highly involved because the
product is expensive and risky. There are very little differences among brands so the customer is confused and wants to collect a lot of information . After the purchase, the customer might develop dissonance because of dissatisfying features of the purchased products. So while purchasing, the customer wants to satisfy himself by collecting repurchase information. 3. V a ri et y Seekin g Bu yi ng B eh avio u r In this type, the customer shows low involvement
because the product is inexpensive, purchased frequently. The customer has some belief, choose a brand without much evaluation and also evaluates it during consumption. Differences among Brands Involvement
Significant differences among brands Complex buying behaviour Variety seeking buying behaviour
Few differences among brand Dissonance reducing buying behaviour Habitual buying behaviour
High involvement
Low Involvement
4. Habitual Buying Behaviour
It is shown when the customer has low involvement and adsence of
significance brand differences. Marketers of low involvement products will have few brand differences, find it effective to use price and sales promotions as an incentives to product trail, since buyers are not highly commited to any particular brand.
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