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The term consumer is used both for personal consumer and organisational consumer. The personal consumer buys goods and services for his personal use (tobacco products, hair cut), or for household consumption (sugar, television set), or just one member of the family (a pair of shoes for school-going child) or a birthday party to the whole family.
Consumer behaviour is defined as “all psychological, social and physical behaviour of potential customers as they become aware of, evaluate, purchase, consume, and tell others about products and services.”
In other words, consumer behaviour includes the act of individuals directly involved in obtaining and using economic goods.
Hence, consumer behaviour is the process by which individuals decide whether what, when, where, how and from whom to purchase goods and services.
The above discussion gives the following information about buyer behaviour:-
Consumer behaviour is affected by a number of factors. They can be classified into cultural, social, personal and psychological factors:-
1. Cultural factors: Cultural factors have a deep influence on buyer behaviour. Culture is the basic determinant of a person’s wants. It refers to a set of learned beliefs, values, attitudes, morals, customs, habits and forms of behaviour that are share by a society. Food habits, religious practices, the way we dress are all influenced by culture.
Example:
a. Tooth powder wage is in line with traditional mouth washing habits. The person applies tooth powder on his index finger and rubs it on the teeth. Hence, the reason for the popularity of the tooth powder.
b. Companies have come out with religious calendar.
2. Sub-culture: Each culture consists of smaller sun-culture that provide more specific identification and socialisation for its number.
There are 4 types of sub culture:-
a. Nationality groups such as Chinese, Irish, Polish, etc.
b. Racial groups such as Black, Whites, etc.
c. Geographical groups such as North Indian, South Indian, etc.
d. Religious groups such as Christians, Muslims, Hindus, etc.
3. Social Classes: These are divisions in the society which are hierarchy ordered and whose members share similar values, interests and behaviour.
There are three distinct social classes:
Upper, middle and lower classes.
a. Lower classes show limited sense of choice making.
b. Each class differs in their patronisation, the reading habits, clothing habits etc.
c. Upper class consumer wants products and brands that depict their social status.
d. Middle-class consumers shop carefully, read advertisements and compare prices before they buy.
For example:
A family from a higher class may wish to eat in a five-star hotel. A middle class family may opt for a cost-effective restaurant.
1. Reference Groups: These are the social, economic or professional groups that have a direct or indirect influence on the person’s attitude or behaviours. Consumers accept information provided by their peer groups on the quality, performance, style, etc. A family, a circle of friends, a local club, an athletic team, college living groups are example of small reference groups.
Example- Many marketers have used film stars to promote consumer goods.
2. Family: Constitute the most influenced group on one’s attitudes. Personal values, attitudes and buying habits have been shaped by family influence. The member of the family play different role such as influencer, decider, purchaser and user in the buying process.
Example:
Husband dominance: Life insurance, automobiles, TV.
Wife dominance: Washing machines, Carpenting, Kitchenware.
Equal: Housing, vacation, outside entertainment.
Example: Johnson and Johnson products are advertised to mothers and not to small children who actually are the consumers.
(The head of the family play a major role ………………………….
3. Roles and Status: These are factors which also influence decision making. Roles are the activities of the person in a group. A woman plays the role of the wife, mother, sister in a family.
She plays the role of an employee in the organisation.
She may also play the role of a secretary of an association.
Each role carries a status.
People will choose products that will communicate their status to the society.
Examples:
An executive working in a multinational bank may prefer branded shirts/trousers, expensive watches, perfumes and drive a car to reach office.
A buyer’s decisions are also influenced by personal characteristics, notably the buyer’s age and life-cycle stage, occupation, economic circumstances, lifestyle and personality and self-concept.
1. Life cycle: People buy different goods and services over their lifetime. The life-cycle of a person begins with childbirth, shifts to dependent infancy, adolescence, teenage, adulthood, middle-age, old age and then ends with dead. Under each stage people’s buying behaviour is different. Under the first three stages, decisions are not made by the consumer. They are totally dependent on others.
Example:
With exposure to TV, school going children have started influencing buying decisions with regard to biscuits, chocolates, soft drink, toys and marketers are targeting their segment.
2. Occupation: A person’s behaviour depends of his occupation. A company’s Managing Director will prefer expensive suits, air travel, separate cottage, etc. A worker would prefer economic dresses, bus travel, etc.
The occupation of a person decides his ability to buy, Hence, his need, satisfaction depends on his occupation, ………………………..
3. Economic Circumstances: Occupations gives rise to the economic circumstances: A person may have high desire to buy so many things. All his needs to do become wants. People’s economic circumstances refer to their spendable income saving, assets, borrowing power and attitude towards spending versus saving.
Example:
The Indian middle class has grown in prosperity and consumption of items such as kitchen appliances, TV, refrigerators, washing machines, readymade garments, jewellery is growing.
4. Lifestyle: It 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. A person may reside in an HIG flat. He may have costly furniture. He shall buy his clothing only from Raymond. He may have his dinner only in five-star hotels. His hobby may be playing billiards. Hence, he will choose according to his lifestyle.
5. Personality: It is defined as the person’s distinguishing psychological characteristics that lead to relatively consistent and enduring responses to his or her environment. Personality is described in terms of such traits as self-confidence, dominance, autonomy, deference, sociability, defensiveness and adaptability. A person to maintain his personality will decide his purchase accordingly.
Example:
Rural youth may buy tea and namkeen and urban youth buy popcorn and soft drinks.
1. Motivation: It is the driving force which makes the person act. Motivation is the drive to act, to move, to obtain a goal or an objective. A human being is motivated by needs. When these needs are backed by purchase power it becomes a want. Buyer behaviour, hence is stimulated by motivation.
2. Perception: A motivated person is ready to act. How the motivated person actually acts the situation. To perceive is to see, to hear, to touch, to smell, and to sense something an event or relation and to organise, interpret and find meaning in the experience. Our sense perceive the colour, shape, sound, smell, taste, etc. of this stimulus. People can emerge with different perceptions of the same object because of three perceptual processes: selective attention, selective distortion and selective retention.
Example:
Even today many consumer prefer to deal with Nationalised Banks/LIC as they feel that private companies may not reliable in the long run.
3. Learning: It describes changes in an individual’s behaviour arising from experience. Learning refers to changes in behaviour brought about by practice or experience. Learning is the process of acquiring knowledge about products, their benefits, methods of usage and also disposal of product after use.
Example:
Product demonstration is a very effective method to convince the consumer. Product like paints, pressure cookers, fertilisers are promoted through demonstration.
4. A belief: It is a descriptive thought that a person holds about something. These beliefs may be based on knowledge, opinion, or faith. They may or may not carry emotional change. An attitude describes a person’s enduring favourable or unfavourable cognitive evaluation, emotional feelings and action tendencies towards some object or idea.
For example:
Once a consumer has developed a brand loyalty, it is hard to change his attitudes and beliefs towards the brand.
Example: Many health conscious people believe that cola drinks are harmful and then prefer lassi, lime juice, coconut water, etc.
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