Consumer Behavior Consumer Behavior is the study of how individuals, groups and organizations select, buy and dispose of goods, services, ideas or experiences to satisfy their needs and wants Consumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption.CB has two basic parts Cognition (Thinking) Action (Purchase)

Factors Affecting Consumer Behavior

Psychographic Activities Interests OpinionsAttitude and life styles the patterns in which people live and spend time and money. Beliefs and feelingsNature of Consumer Behavior1. Influenced by various factors2. Undergoes a constant change3. Varies from consumer to consumer4. Varies from region to region and country to country5. Information on consumer behavior is important to the marketers6. Leads to purchase decision7. Varies from product to product8. Improves standard of living

DIFFERENT MODELS OF CONSUMER BEHAVIOUR

1. Economic Model The economic model of consumer behavior focuses on the idea that a consumers buying pattern is based on the idea of getting the most benefits while minimizing costs. Thus, one can predict consumer behavior based on economic indicators such as the consumers purchasing power and the price of competitive products. For instance, a consumer will buy a similar product that is being offered at a lower price to maximize the benefits; an increase in a consumers purchasing power will allow him to increase the quantity of the products he is purchasing.Learning Model This model is based on the idea that consumer behavior is governed by the need to satisfy basic and learned needs. Basic needs include food, clothing and shelter, while learned needs include fear and guilt. Thus, a consumer will have a tendency to buy things that will satisfy their needs and provide satisfaction. A hungry customer may pass up on buying a nice piece of jewelry to buy some food, but will later go back to purchase the jewelry once her hunger is satisfied.Psychoanalytical Model The psychoanalytical model takes into consideration the fact that consumer behavior is influenced by both the conscious and the subconscious mind. The three levels of consciousness discussed by Sigmund Freud (id, ego and superego) all work to influence ones buying decisions and behaviors. A hidden symbol in a companys name or logo may have an effect on a persons subconscious mind and may influence him to buy that product instead of a similar product from another company.Sociological Model The sociological model primarily considers the idea that a consumers buying pattern is based on his role and influence in the society. A consumer's behavior may also be influenced by the people she associates with and the culture that her society exhibits. For instance, a manager and an employee may have different buying behaviors given their respective roles in the company they work for, but if they live in the same community or attend the same church, they may buy products from the same company or brand.

Howard sheth model

NICOSIA MODEL

ENGEL, BLACKWELL AND MINARD MODEL

Information input Information processing Decision process stage Variables influencing decision making process

Webster and wind

partitiones the buying process into several processes processes of decision-making are determined by environmental and organizational factors. Final buying process rendered as the mixture of individual and group decision

COGNITIVE DESONANCE Cognitive dissonance refers to a situation involving conflicting attitudes, beliefs or behaviors. This produces a feeling of discomfort leading to an alteration in one of the attitudes, beliefs or behaviors to reduce the discomfort and restore balance etc. For example, when people smoke (behavior) and they know that smoking causes cancer (cognition). Example 1: Knowing that smoking is harmful (First cognition) while liking to smoke (second cognition). The Cognitive dissonance theory's conditions were met because those cognitions are dissonant Example 2: Believing that lying is bad (First cognition) and being forced to lie (second cognition) Example 3: Liking a friend (first cognition) while knowing that he hates your brother (second cognition)How to Reduce Cognitive Dissonance There are three key strategies to reduce or minimize cognitive dissonance: Focus on more supportive beliefs that outweigh the dissonant belief or behavior Reduce the importance of the conflicting belief Change the conflicting belief so that it is consistent with other beliefs or behaviorsWhy is Cognitive Dissonance Important? Cognitive dissonance plays a role in many value judgments, decisions and evaluations. Becoming aware of how conflicting beliefs impact the decision-making process is a great way to improve your ability to make faster and more accurate choices.RELATION BETWEEN ATTITUDE AND BEHAVIORPeople hold complex relationships between attitudes and behavior that are further complicated by the social factors influencing both. Behaviors usually, but not always, reflect established beliefs and attitudes. For example, a man who believes strongly in abstinence before marriage may choose to remain a virgin until his wedding night. Under other circumstances, that same man may engage in premarital sex despite his convictions after being influenced by social messages that his masculinity is dependent on sexual activity.a. Changing attitudes to change behaviorb. Changing behavior to influence attitudes

Attitude formation Three different paths to attitude formation:a. Attitudes are created by first creating beliefs. i. Consumer beliefs are the knowledge that a consumer has about objects, their attributes, and the benefits provided by the objects.ii. Consumer beliefs are created by processing information--cognitive learning.

b. Attitudes are created directly.i. Behavioral learningii. Mere exposurec. Attitudes are created by first creating behaviors.i. Consumers respond to strong situational or environmental forces, and after engaging in the behavior, form attitudes about the experience.ADVANTAGES OF STUDYING CONSUMER BEHAVIOURa. Modern PhilosophyIt concerns with modern marketing philosophy - identify consumers' needs and satisfy them j more effectively than competitors. It makes marketing consumer-oriented. It is the key to succeed.b. Useful for Dealers and Salesmenc. More Relevant Marketing Programmed. Adjusting Marketing Programme Over Timee. Predicting Market Trendf. Consumer Differentiationg. Creation and Retention of Consumersh. Competitioni. Developing New Products