Consumer behaviour

UNIT-1

Mahima Shukla
Marketing Concept
What is Marketing?

 Process by which companies create customer interest in product or services.

 The adoption of marketing strategies require business to shift their focus from
production to the perceived needs and wants of their customers as the mean of
staying profitable.
 It proposes that in order to satisfy its organisational objectives ,an organisation
should anticipate the needs and wants of consumers and satisfy these more
effectively than competitors.
 Marketing is defined by the American Marketing Association (AMA) as
“Marketing is an organisational function and a set of process for creating ,
communication and delivering value to customer relationships in ways that
benefit the organisation and its stakeholders”.
The Development of Marketing
Concept

Production Concept:
 One of the oldest concept.
 It holds that consumer prefers the products that are in expensive
and widely available.
 Managers of production-oriented business concentrate on
achieving high production efficiency, low cost and mass
distribution.
 Concept often used when a company wants to expand the
market.
The Product concept

 Customers favours the products that offer the most quality

,performance or innovative features.
 Managers focus on making superior products and improving them
over the time.
 A new or improved is successful only if it is priced ,distributed,
advertised and properly sold.
The Selling Concept

 Consumers and businesses if left alone ,wont buy enough

of the organisation’s products.
 The concept is practices most aggressively with unsought
goods, goods that buyers do not think of buying such as
insurance and financial product.
 Aim is to sell what is made rather than what market wants.
 Sales orientation is therefore concerned with the needs of
the seller, not with the needs of the buyer.
Customer Oriented

 Product-Centered “make-and-sell’ philosophy shifted to a

customer-centered “sense –and-respond” philosophy.
 Job to find the right product for the right customer. what
price they would be willing to pay, and fitting the
organisation's activities towards meeting those needs and
wants at the right price.
 The marketing concept seeks to change the organisation’s
aims to fit one or more specific groups of customers who
have similar needs
Societal Marketing

 Societal marketing holds that marketers should take some

responsibility for the needs of society at large, and for the
sustainability of their production activities.
 The purpose of the societal marketing concept is also to satisfy the
needs and requirements of customers before making any profit. But
the emphasis of this concept is to make the company fulfill social
responsibilities for a sustainable future in the long term. The
marketing strategy of businesses and companies should include both
customers and society as well
Relationship Marketing

 During the 1990s, marketing thinking moved towards the

relationship marketing concept.
 Traditional marketing has tended to concentrate on the single
transaction with a short-term focus. Relationship marketing focuses
on the ’lifetime’ value of the customer.
 Relationship marketing aims to determine who will be (or could be)
the most loyal customer throughout his or her life: marketers are
responsible for establishing and maintaining these relationships.
 The key elements in relationship marketing are the creation of
customer loyalty, the establishment of a mutually rewarding
connection, and a willingness to adapt behaviour in order to
maintain the relationship.
Performance Marketing

 Performance marketing refers to a form of digital marketing in which brands only

pay marketing service providers after their business objectives have been met or
when specific actions have been taken, such as a click, sale, or lead. In other
words, it is performance-based marketing.
 Performance marketing works when advertisers connect with either agencies or
publishers to design and place advertisements for their company on any number
of performance marketing channels — social media, search engines, videos,
embedded web content, and more. Instead of paying for an advertisement in the
traditional way, these advertisers pay based on how well their ad performs, by
measuring number of clicks, impressions, shares, or sales.
Internal Marketing

 Internal marketing is the promotion of a company’s vision, mission,

and culture to its employees with the objective of gaining their
support.
 The companies that are the best at internal marketing treat
employees as internal customers who need to be convinced of the
company mission.
 Top companies know how powerful it is when their (often large)
employee base buys-in to what the company is doing, then spreads
the word outside of the company via interactions with customers,
friends, family, and social media.
Core Marketing Principles

 Needs ,Wants & Demand

 Target Markets, Positioning & Segmentation
 Offerings & Brands
 Value & Satisfaction
 Marketing Channels
 Supply Chain
 Competition
 Marketing Environment
Needs, Wants And Demands

 Needs are the basic human requirements.

 Need for air, food, water , clothing and shelter.
 Need for recreation, education and entertainment.
 Need for recreation, education and entertainment
 Need become wants when directed towards specific
objects that may satisfy the need. E.g. along with food one
may want hamburgers, French fries & a soft drink.
 Demands are wants for specific products backed by an
ability to pay.
Types of Needs (Consumer Research)

 Stated needs (customer want an inexpensive car).

 Real needs ( customer wants an inexpensive car whose operating
cost is low).
 Unstated needs ( customer expects good service from the dealer).
 Delight needs ( customer would like the dealer to include an on
board navigation system).
 Secret needs (customer want friends to see him as a savvy
customer).
Segmentation ,Target Markets, And
Positioning
 Market can not satisfy everyone in the market .
 Starting is by dividing the market into different segments.
 Identification of target markets.
 Firm develops a market offering that it positions in the mind of the
target buyers as delivering some central benefits.
Offering and Brands

 A value proposition is made with a set of benefits that is

offered to the customers to satisfy their needs.
 A marketing offer is important because it can generate
interest in your products and services (attract customer
intentions).
 An offering encompasses more than the single product or
service.
 Businesses can increase their sales and promote brand
loyalty among their customers by offering products or
services that resonate with consumers.
 A strong offering differentiates your products from
competitors and creates value .
How to create an effective marketing
offer
 Learn about your customers. (Customer surveys, comment
cards, focus groups, demographic data, market trends).
 Availability
 Position your product to meet customer’s need.
 Price your product
 Efficient delivery.
 Convenience shopping,
 Quality Services,
 Technical support
 Multidevice, multichannel, multimedia compatibility
Brands:
Branding is the act of connecting a product (or business)
with a particular name, symbol, or features and ideas to
make it recognizable.
Branding gives your business a personality. And customers
become loyal to a brand if they relate to the brand’s
personality.
The brand can be trustworthy, luxurious, passionate, tasty,
fun, innovative, caring, professional, or safe. It all depends
on the target audience and how you want to position your
business in the market.
Customer Value

 Customer value is the perception that a customer has of the worth of

a product or service relative to the costs associated with obtaining it.
In simpler terms, it's how much benefit or satisfaction a customer
feels they are receiving compared to the price they are paying.
Understanding customer value is crucial for businesses as it directly
impacts customer satisfaction, loyalty, and overall success.
Types of Customer Value

 Functional Value: This relates to the practical and utilitarian aspects of a product or
service. It addresses how well the product or service performs its intended function or
solves a problem for the customer. For example, a high-performance car provides
functional value through its speed and safety features.
 Monetary Value: This refers to the financial benefit a customer perceives. It includes
aspects like cost savings, discounts, and overall affordability. A product that is priced
competitively or offers a good return on investment (ROI) provides monetary value.
 Social Value: This type of value is derived from the social benefits or status a product
or service provides. It includes how a product or service influences the customer's
social standing or how it enhances their social interactions. For instance, luxury brands
often offer social value by associating with prestige and exclusivity.
Types of Customer Value

 Emotional Value: This relates to the feelings and emotional responses a product or
service elicits. It’s about the personal satisfaction or emotional connection a
customer feels. For example, a sentimental gift may have high emotional value for
the recipient, even if its monetary value is low.
 Experiential Value: This type focuses on the overall experience associated with
the product or service. It encompasses factors like customer service, ease of use,
and the overall buying experience. A seamless and enjoyable shopping experience
can enhance the perceived value.
 Epistemic Value: This is related to the knowledge and learning a customer gains
from a product or service. It can include the curiosity and intellectual stimulation a
product provides. For example, educational tools or innovative technologies often
offer epistemic value by enhancing the user's knowledge.
Tips for increasing customer value

 Increasing customer value involves enhancing the overall experience

and benefits that customers perceive from your product or service.
Here are some actionable tips to boost customer value across various
dimensions:
1.Improve Product or Service Quality
• Enhance Features: Continuously innovate and upgrade features based
on customer feedback and market trends.
• Ensure Reliability: Deliver a consistent and dependable product or
service that meets or exceeds customer expectations.
Tips for increasing customer value
2. Focus on Customer Experience
• Streamline Processes: Simplify purchasing and customer service processes to make
interactions smoother and more efficient.
• Provide Excellent Service: Train staff to be responsive, knowledgeable, and
empathetic in their interactions with customers.
3. Offer Personalization
• Customize Offers: Tailor products, services, and marketing messages to individual
customer preferences and behaviors.
• Leverage Data: Use customer data and insights to predict needs and provide relevant
recommendations.
4. Enhance Value for Money
• Competitive Pricing: Ensure your pricing reflects the value provided and is
competitive within the market.
• Offer Discounts and Promotions: Provide occasional discounts, bundles, or loyalty
programs to give customers added value.
Tips for increasing customer value
5. Build Emotional Connections
• Brand Storytelling: Share your brand’s story, values, and mission to create an emotional bond
with customers.
• Customer Engagement: Engage with customers through social media, personalized emails,
and community events to build relationships.
6. Improve Convenience
• Accessibility: Make your product or service easily accessible through multiple channels (e.g.,
online, in-store).
• Flexible Options: Offer flexible payment options, delivery choices, and return policies to
accommodate customer preferences.
7. Educate and Inform
• Provide Value-Added Content: Share useful content such as how-to guides, tutorials, or
industry insights to enhance customers’ knowledge.
• Training and Support: Offer comprehensive training and support to help customers make the
most of your product or service.
Tips for increasing customer value
8. Foster Loyalty and Advocacy
• Loyalty Programs: Create programs that reward repeat customers with points,
discounts, or exclusive perks.
• Encourage Referrals: Implement referral programs to incentivize customers to
recommend your product or service to others.
9. Gather and Act on Feedback
• Regular Surveys: Conduct surveys to understand customer satisfaction and identify
areas for improvement.
• Act on Feedback: Use feedback to make informed changes and show customers that
their opinions are valued
10. Deliver Consistent Quality
• Maintain Standards: Ensure that all customer touchpoints deliver a consistent level of
quality and experience.
• Monitor Performance: Regularly evaluate and refine processes to maintain high
standards.
 By focusing on these strategies, you can enhance the value your customers perceive,
leading to increased satisfaction, loyalty, and long-term success for your business.
Tips for increasing customer value

1. Personalize your support interactions

2. Provide multichannel support option
3. Prioritize customer success
4. Make sure customers know you’ve heard them
5. Find opportunities to surprise and delight
6. Acknowledge and reward customer loyalty
7. Give your customers a sense of community
8. Through customization.
9. By Providing customers economic ,social and functional benefits
10.By providing them greater convenience and save their time and efforts.
Value & Satisfaction
 Success of the offering: Product delivers value and satisfaction to
the customers.
 Value : combination of quality, service and price (QSP)
 Customer value is best defined as how much a product or service
is worth to a customer. Here’s how companies can enhance their
value to improve the customer experience and increase
satisfaction.
 Delivering customer value is key to maintaining long-term
relationships with existing customers and earning repeat business.
Customer Satisfaction

Customer satisfaction (CSAT) is a measure of how well a

company’s products, services, and overall customer
experience meet customer expectations. It reflects your
business’ health by showing how well your products or
services resonate with buyers.
Customer satisfaction measures how well a company’s
products or services meet or exceed customer
expectations. It’s a key metric for assessing the quality of
customer experience and can significantly influence
customer loyalty and business success.
Ways Marketers Can Increase
Customer Satisfaction
1. Understand Customer Needs: Conduct surveys, focus groups, and gather
feedback to understand what your customers want and need. Use this
information to tailor your products, services, and marketing strategies to
better meet those needs.
2. Enhance Product/Service Quality: Ensure your offerings are high-quality,
reliable, and meet the promised standards. Regularly update and improve
based on customer feedback and market trends.
3. Provide Excellent Customer Service: Train your staff to be responsive,
empathetic, and effective. Quick resolution of issues and positive
interactions can greatly boost satisfaction.
4. Personalize the Experience: Use data to offer personalized
recommendations, offers, and communication. Tailoring your approach to
individual preferences can make customers feel valued
Ways Marketers Can Increase Customer
Satisfaction
 Streamline the Buying Process: Make it easy for customers to purchase, return,
or exchange products. A user-friendly website, clear instructions, and efficient
checkout processes can enhance satisfaction.
 Communicate Effectively: Keep customers informed about product updates,
promotions, and any issues that might affect them. Clear, transparent
communication can build trust and prevent dissatisfaction.
 Seek and Act on Feedback: Regularly solicit feedback through surveys or direct
communication, and more importantly, act on it. Show customers that their
opinions matter and are taken seriously.
 Reward Loyalty: Implement loyalty programs, offer discounts, or provide
exclusive benefits to repeat customers. Recognizing and rewarding loyal
customers can increase satisfaction and encourage repeat business.
The importance of customer satisfaction

 It drives customer loyalty

 Positive word of mouth
 It encourages repeat purchases
 It increases customer lifetime value
 Increased customer trust
 It boosts customer acquisition
 Monitor and improve brand reputation
 Save an unhappy customer from leaving your brand for a
competitor.
 Improve Business reputation
 Stop customer retaliation
Ways Marketers Can Increase
Customer Satisfaction
1. Address Complaints Promptly: Handle complaints and negative feedback
professionally and swiftly. A well-managed resolution can turn a dissatisfied
customer into a loyal one.
2. Invest in Training and Development: Continuously train your team to stay
updated with the latest customer service practices and tools. Well-trained
employees are more likely to provide a positive customer experience.
 By focusing on these strategies, marketers can enhance customer satisfaction,
build stronger relationships, and foster long-term loyalty.
Customer Retention

Customer retention refers to the strategies and practices a

company uses to keep its existing customers over time. It’s
about building long-term relationships with customers so
they continue to buy from or engage with the company,
rather than switching to competitors. High customer
retention often translates to higher profitability, as
retaining existing customers is typically less expensive
than acquiring new ones
Key Aspects of Customer Retention:

 Customer Loyalty: Creating a strong sense of loyalty among

customers by providing consistent value, positive experiences, and
personalized interactions.
 Repeat Purchases: Encouraging customers to make additional
purchases or use services repeatedly.
 Customer Lifetime Value (CLV): The total revenue a business can
expect from a customer over the entire duration of their relationship.
Retention efforts aim to increase this value.
 Reducing Churn Rate: Minimizing the rate at which customers stop
doing business with the company. A lower churn rate indicates better
retention.
Strategies to Improve Customer Retention
 Deliver Exceptional Customer Service: Provide excellent support and address issues
promptly. Happy customers are more likely to stay loyal
 Personalize the Experience: Use customer data to offer tailored experiences,
recommendations, and communication. Personalized interactions can increase
engagement and satisfaction.
 Implement Loyalty Programs: Offer rewards, discounts, or exclusive benefits for
repeat customers. Loyalty programs incentivize continued business and foster a sense
of appreciation.
 Regular Communication: Maintain regular contact through newsletters, updates, and
personalized offers. Keeping customers informed and engaged helps build a strong
relationship.
 Solicit and Act on Feedback: Regularly ask for customer feedback and make
improvements based on their suggestions. Showing that you value their input can
enhance their overall experience
Strategies to Improve Customer Retention
 Provide Consistent Quality: Ensure that your products or services consistently meet or
exceed customer expectations. Reliability and quality are key factors in retaining customers.
 Build a Strong Brand: Develop a brand that resonates with your target audience and aligns
with their values. A strong brand identity can create emotional connections and foster loyalty.
 Offer Proactive Solutions: Anticipate customer needs and address potential issues before
they become problems. Proactive customer service can prevent dissatisfaction and churn.
 Create Engaging Content: Provide valuable and relevant content that keeps customers
engaged and connected with your brand. Educational resources, entertaining content, or
exclusive insights can add value.
 Monitor and Analyze Data: Track retention metrics and analyze customer behavior to
identify patterns and areas for improvement. Data-driven insights can guide your retention
strategies.
 Effective customer retention not only helps maintain a steady revenue stream but also
enhances overall customer satisfaction and loyalty, which can positively impact your brand’s
reputation and growth.
Customer Retention

 The overall objective of providing value to customers continuously and

more effectively than the competition is to have and to retain highly
satisfied customers ;this strategy of customer retention makes it in the best
interests of customers to stay with the company rather than switch to
another firm. In almost all business situations ,it is more expensive to win
new customers than to keep existing ones.
 Furthermore ,marketing efforts aimed at attracting new customers are
expensive ;indeed ,in saturated markets, it eit may be impossible to find
new customers . Today the internet and electronic marketer –consumer
interactions are ideal tool for tailoring products and services to the
specific needs of consumers ( often termed one –to-one marketing),
offering them more value through increased customer intimacy , loyalty
and keeping the customers returning to the company.
Customer Retention
 The company should offer different values and benefits to win
new customers than to keep existing ones.
 The objective of providing value is to retain highly satisfied
customers and make them loyal.
 The loyal customers are the key.
 They buy more products.
 They are less price sensitive
 They repeat purchase the product.
 Ready to pay more for better services.
 They spread positive word of mouth.
Consumer Behaviour

The behaviour that consumer display in searching

for, purchasing, using ,evaluating and disposing of
products and services that they expect will satisfy
their needs.
Consumer behaviour cont…
 Consumer behaviour is the study of when ,why ,how and
where people do or do not buy a product .It basically depends
on the psychology of the consumer. It attempts to understand
the buyer decision making process both individually & in
groups. It studies the individual consumers such as
demographics & behavioural aspects to understand the people
wants.
 In the study of consumer behaviour main focus is the customer
buying motives and the customer satisfaction because customer
is the only person with whose presence businesses actually
exists.
Consumer behavior can be defined as the study of
psychological, physical and social actions when
individuals buy, use and dispose of products,
services, ideas, and practices. In other words,
consumer behavior is the study of how consumers
will make their buying decision and what those
factors which support or influence these decisions.
Characteristics of Consumer Behaviour

 It is a process where consumer decide what to buy ,when to buy

,how to buy ,where to buy & how much to buy.
 It comprises of both mental and physical activities of consumer.
 Consumer behaviour is very complex and dynamic which keeps on
changing constantly.
 Individual buying behaviour is affected by various internal factors
like his needs ,wants ,attitude & motives and also by external factors
like social groups, culture ,status ,environment factors etc.
 Consumer behaviour states before buying and even after buying.
Importance/Need of study consumer behaviour
 Studying consumer behavior is crucial in marketing for several reasons:
1. Understanding Needs and Wants: By analyzing consumer behavior, businesses can gain insights
into what drives customers' purchasing decisions. This understanding helps companies tailor their
products and services to better meet the needs and desires of their target market.
2. Segmenting Markets: Consumer behavior studies enable marketers to segment their target
audience into distinct groups based on characteristics such as demographics, psychographics, and
buying behaviors. This segmentation helps in creating more personalized and effective marketing
strategies.
3. Improving Product Development: Insights from consumer behavior can guide product
development, ensuring that new products or services align with consumer preferences and
expectations. This can lead to higher satisfaction and increased market success.
4. Enhancing Customer Experience: Understanding how consumers interact with brands, from
their initial research to the final purchase, allows businesses to improve the overall customer
experience. This can lead to higher customer loyalty and retention.
1. Optimizing Marketing Strategies: Knowledge of consumer behavior helps marketers design
more effective advertising and promotional strategies. By understanding what appeals to their
audience, businesses can craft messages and choose channels that resonate more deeply with
consumers.
2. Predicting Trends: Analyzing consumer behavior can help identify emerging trends and shifts in
consumer preferences. This foresight allows businesses to adapt and innovate ahead of their
competitors.
3. Increasing Sales and Profitability: When businesses understand what influences consumer
purchasing decisions, they can implement strategies that drive sales and improve profitability.
This might include optimizing pricing, enhancing product features, or improving distribution
channels.
4. Building Brand Loyalty: By understanding what factors contribute to brand loyalty, companies
can foster stronger relationships with their customers. Loyal customers are more likely to make
repeat purchases and advocate for the brand.
 In essence, studying consumer behavior provides the insights necessary for businesses to align
their strategies with consumer needs and preferences, ultimately driving growth and success.
Importance/Need of study consumer
behaviour
 To make better marketing strategies for increasing profits.
 To better plan marketing mix by knowing the buying decisions process
and how consumer make consumption.
 To understand the factors affecting consumer buying decision process.
 To create advertisements that attract and motivate them to buy the
product or services.
 To forecast market trend
 To monitor consistent change in consumer’s tastes or preferences.
 Consumer behaviour study is necessary to make right pricing policies
 To avoid future market failure.
 By researching consumer behavior, they can improve customer service
and experience.
Nature of consumer Behaviour

 Systematic process
 Influenced by various factors
 Different for different customers
 Undergoes a constant changes
 Varies across regions
 Varies from product to product
 Vital for marketer
 Reflect status
 Improved Standard of Living
 Provides leads to purchase decision
Consumer Types

Organisational
Consumer
Personal Consumer
A business ,government
The individual who buys
agency ,or other
goods and services for
institution (profit or non-
his or her own use ,for
profit) that buys the
the use of a family
goods ,services ,and /or
member ,or for a friend.
equipment necessary
for the organisation to
function.
What is the consumer decision making
process
 The consumer decision-making process involves five basic steps. This is the
process by which consumers evaluate making a purchasing decision. The 5
steps are problem recognition, information search, alternatives evaluation,
purchase decision and post-purchase evaluation.
 The consumer decision-making process can seem mysterious, but all
consumers go through basic steps when making a purchase to determine what
products and services will best fit their needs.
 Think about your own thought process when buying something—especially
when it’s something big, like a car. You consider what you need, research,
and compare your options before making the decision to buy. Afterward, you
often wonder if you made the right call.
Steps in the consumer decision process

 Generally speaking, the consumer decision-making process involves five basic steps.
 1. Problem recognition
 The first step of the consumer decision-making process is recognizing the need for a
service or product. Need recognition, whether prompted internally or externally, results in
the same response: a want. Once consumers recognize a want, they need to gather
information to understand how they can fulfill that want, which leads to step two.
 But how can you influence consumers at this stage? Since internal stimulus comes from
within and includes basic impulses like hunger or a change in lifestyle, focus your sales
and marketing efforts on external stimulus.
 Develop a comprehensive brand campaign to build brand awareness and recognition––
you want consumers to know you and trust you. Most importantly, you want them to feel
like they have a problem only you can solve.
 Example: Winter is coming. This particular customer has several light jackets, but she’ll
need a heavy-duty winter coat if she’s going to survive the snow and lower temperatures.
2. Information search

 When researching their options, consumers again rely on internal and external
factors, as well as past interactions with a product or brand, both positive and
negative. In the information stage, they may browse through options at a physical
location or consult online resources, such as Google or customer reviews.
 Your job as a brand is to give the potential customer access to the information
they want, with the hopes that they decide to purchase your product or service.
Create a funnel and plan out the types of content that people will need. Present
yourself as a trustworthy source of knowledge and information.
 Another important strategy is word of mouth—since consumers trust each other
more than they do businesses, make sure to include consumer-generated content,
like customer reviews or video testimonials, on your website.
 Example: The customer searches “women’s winter coats” on Google to see what
options are out there. When she sees someone with a cute coat, she asks them
where they bought it and what they think of that brand.
3. Alternatives evaluation

 At this point in the consumer decision-making process, prospective buyers

have developed criteria for what they want in a product. Now they weigh their
prospective choices against comparable alternatives.
 Alternatives may present themselves in the form of lower prices, additional
product benefits, product availability, or something as personal as color or
style options. Your marketing material should be geared towards convincing
consumers that your product is superior to other alternatives. Be ready
to overcome objections—e.g., in sales calls, know your competitors so you
can answer questions and compare benefits.
 Example: The customer compares a few brands that she likes. She knows that
she wants a brightly colored coat that will complement the rest of her
wardrobe, and though she would rather spend less money, she also wants to
find a coat made from sustainable materials.
4. Purchase decision

 This is the moment the consumer has been waiting for: the purchase.
Once they have gathered all the facts, including feedback from
previous customers, consumers should arrive at a logical conclusion
on the product or service to purchase.
 If you’ve done your job correctly, the consumer will recognize that
your product is the best option and decide to purchase it.
 Example: The customer finds a pink winter coat that’s on sale for 20%
off. After confirming that the brand uses sustainable materials and
asking friends for their feedback, she orders the coat online.
5. Post-purchase evaluation

 This part of the consumer decision-making process involves reflection

from both the consumer and the seller. As a seller, you should try to
gauge the following:
• Did the purchase meet the need the consumer identified?
• Is the customer happy with the purchase?
• How can you continue to engage with this customer?
 Remember, it’s your job to ensure your customer continues to have a
positive experience with your product. Post-purchase engagement
could include follow-up emails, discount coupons, and newsletters to
entice the customer to make an additional purchase. You want to gain
life-long customers, and in an age where anyone can leave an online
review, it’s more important than ever to keep customers happy.
Types of consumer Behaviour

Extensive Buying Decision

 An extensive, i.e. extended, buying decision is defined as a comprehensive
decision-making process. The rational and psychological processes and
learning processes involved are deep, complex and anticipatory. Buyers
take their time in the buyer decision process, making comparisons,
analyses and evaluations to rule out risks and weigh up advantages and
disadvantages. In most cases, targeted tangible or intangible goods are
characterized by high prices and costs or involve potentially high risks.
Examples are the purchase of companies, special equipment, real estate or
cost-intensive technologies and special machines.
Limited/Simplified buying decision

The limited buying decision is also called a simplified buying decision

because the decision-making process is not characterized by complex
preliminary considerations or lengthy psychological processes. Buyers are
usually familiar with the product or service category, have made a pre-
selection or are guided by limited common criteria such as price level,
material or awareness of brands and companies (e.g. when buying food,
beverages, sanitary products or office supplies). The buyer decision process
thus does not necessarily go through every step, is simplified and does not
involve high financial risks or burdens.
Habitual buying Decision

This type of consumer behavior is evident when the product is

inexpensive, and the purchase is rare. Consequently, the
consumer's interest and investment are less in the product type or
brand. In this market, consumers rarely consider complex factors
before making a purchase. Instead, they purchase from their choice
of company or any other readily available. Instead of brand loyalty,
habitual buying practice typically depends on the convention or
brand familiarity.
Variety-seeking

When a consumer engages in variety-seeking behavior, they do not

buy additional products because they are unhappy with the results of
their previous purchase. Rather, they do so because they simply want
more options available. Most of the time, when a consumer switches
products or brands, it is out of boredom, interest or a desire to try a
different one. Companies can better understand how to classify their
consumer type by understanding the types of consumers they attract.
Impulsive buying decision

A buying decision is described as impulsive if the purchase is

triggered spontaneously, emotionally or by strong
stimuli and does not require a lengthy psychological process.
Financial or material risks are low. The purchase may be
triggered by a sudden feeling of pleasure such as ravenous
hunger, emotional triggers, lack of time, urgent need, or
external influences such as special offers
Consumer Buying Behaviour Model

Consumer behavior model is a theoretical framework for explaining

why and how customers make purchasing decisions. The goal of
consumer behavior models is to outline a predictable map of customer
decisions up until conversion, thus helping you steer every stage of the
buyer’s journey.

Customer behavior models help you understand your unique customer

base and more effectively attract, engage, and retain them. These
models are either traditional or contemporary.
Scope of Consumer Behaviour

 Consumer Behaviour and Marketing Management

 Consumer Behaviour and non – profit and social marketing
 Consumer behaviour and government decision making
 Consumer behaviour and de-marketing
 Consumer behaviour and consumer education
Application of consumer behaviour

 Analysing Market opportunities

 Selecting target market
 Marketing –Mix
 Use in social media and non-profit markets