W1/L1 Consumer Behaviour in Context
Consumer behaviour refers to the study of individuals, groups, or organisations and the processes they undertake to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy their needs and wants. It involves understanding the decision-making process and factors that influence consumers' purchasing behaviour.
A consumer is an individual or entity that purchases goods or services to satisfy their needs or wants.
“Consumer behavior refers to the study of the processes involved when individuals or groups make decisions regarding the selection, purchase, use, or disposal of products, services, ideas, or experiences to fulfill their needs and desires.” Solomon et al, 2013
Definition of a Consumer
Types of Consumers
Consumer Behavior
A consumer is someone who:
Buys products or services
Uses or consumes the purchased products or services
Is the end-user of the products or services
A. Individual Consumers
Regular individuals who buy products or services for personal use:
Buying groceries for home consumption
Purchasing clothes for personal use
B. Organizational Consumers
Businesses or organizations that buy products or services for their operations:
Purchasing raw materials for manufacturing
Buying office supplies for daily operations
Factors influencing consumer behavior:
Personal factors: Age, gender, income, occupation, lifestyle, etc.
Psychological factors: Motivation, perception, learning, attitudes, etc.
Social factors: Family, reference groups, culture, social class, etc.
Stages of consumer decision-making process:
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Post-purchase evaluation
Psychological factors: These include perception, motivation, learning, beliefs, attitudes, and personality traits. Perception refers to how individuals interpret and make sense of information. Motivation drives consumers to fulfill their needs and desires. Learning involves acquiring knowledge and skills through experience. Beliefs and attitudes shape consumers' preferences and choices.
Social factors: Social influences play a significant role in consumer behaviour. These include family, reference groups, social class, and culture. Family members, friends, and colleagues can influence purchasing decisions through recommendations and opinions. Reference groups, such as celebrities or online influencers, can also impact consumer choices. Social class and cultural values shape consumers' preferences and consumption patterns.
Personal factors: Personal characteristics like age, gender, occupation, lifestyle, and income influence consumer behaviour. Different age groups have varying needs and preferences. Gender can affect product choices and brand preferences. Occupation and income levels determine purchasing power and affordability. Lifestyle choices reflect consumers' interests, activities, and opinions.
Situational factors: The context in which consumers make purchasing decisions also affects their behaviour. Situational factors include the physical environment, time constraints, and the purpose of the purchase. For example, a consumer may make different choices when shopping online versus in a physical store.
Need recognition: The consumer becomes aware of a need or problem that requires a solution.
Information search: The consumer gathers information about available options to satisfy the identified need. This can involve internal (memory) or external (research) sources.
Evaluation of alternatives: The consumer evaluates different options based on criteria such as price, quality, features, and brand reputation.
Purchase decision: The consumer selects the product or service to purchase.
Post-purchase evaluation: After the purchase, the consumer assesses whether the product or service meets their expectations. This evaluation can influence future buying decisions and word-of-mouth recommendations.
Understanding consumer behaviour is crucial for businesses to develop effective marketing strategies, create products that meet consumer needs, and build strong customer relationships.
Consumer behaviour helps to analyse the increasing influence of customers on products, prices, promotions and other organisational activities – Helping organisations to become more efficient
Organisations try to understand how to improve their existing products and develop new products which attract customers. – Helping organisations to become more profitable
Through education, consumers can be taught how to detect deception and other abuses and be made aware of opportunities for redress. – Helping protect consumers
Consumer behaviour helps formulate public policy, because a knowledge of the needs of the public (or consumers) helps inform public policy relating to economics, social welfare, family planning and, for that matter, lockdowns
Consumer behaviour refers to the study of individuals, groups, or organisations and the processes they undertake to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy their needs and wants. It involves understanding the decision-making process and factors that influence consumers' purchasing behaviour.
A consumer is an individual or entity that purchases goods or services to satisfy their needs or wants.
“Consumer behavior refers to the study of the processes involved when individuals or groups make decisions regarding the selection, purchase, use, or disposal of products, services, ideas, or experiences to fulfill their needs and desires.” Solomon et al, 2013
Definition of a Consumer
Types of Consumers
Consumer Behavior
A consumer is someone who:
Buys products or services
Uses or consumes the purchased products or services
Is the end-user of the products or services
A. Individual Consumers
Regular individuals who buy products or services for personal use:
Buying groceries for home consumption
Purchasing clothes for personal use
B. Organizational Consumers
Businesses or organizations that buy products or services for their operations:
Purchasing raw materials for manufacturing
Buying office supplies for daily operations
Factors influencing consumer behavior:
Personal factors: Age, gender, income, occupation, lifestyle, etc.
Psychological factors: Motivation, perception, learning, attitudes, etc.
Social factors: Family, reference groups, culture, social class, etc.
Stages of consumer decision-making process:
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Post-purchase evaluation
Psychological factors: These include perception, motivation, learning, beliefs, attitudes, and personality traits. Perception refers to how individuals interpret and make sense of information. Motivation drives consumers to fulfill their needs and desires. Learning involves acquiring knowledge and skills through experience. Beliefs and attitudes shape consumers' preferences and choices.
Social factors: Social influences play a significant role in consumer behaviour. These include family, reference groups, social class, and culture. Family members, friends, and colleagues can influence purchasing decisions through recommendations and opinions. Reference groups, such as celebrities or online influencers, can also impact consumer choices. Social class and cultural values shape consumers' preferences and consumption patterns.
Personal factors: Personal characteristics like age, gender, occupation, lifestyle, and income influence consumer behaviour. Different age groups have varying needs and preferences. Gender can affect product choices and brand preferences. Occupation and income levels determine purchasing power and affordability. Lifestyle choices reflect consumers' interests, activities, and opinions.
Situational factors: The context in which consumers make purchasing decisions also affects their behaviour. Situational factors include the physical environment, time constraints, and the purpose of the purchase. For example, a consumer may make different choices when shopping online versus in a physical store.
Need recognition: The consumer becomes aware of a need or problem that requires a solution.
Information search: The consumer gathers information about available options to satisfy the identified need. This can involve internal (memory) or external (research) sources.
Evaluation of alternatives: The consumer evaluates different options based on criteria such as price, quality, features, and brand reputation.
Purchase decision: The consumer selects the product or service to purchase.
Post-purchase evaluation: After the purchase, the consumer assesses whether the product or service meets their expectations. This evaluation can influence future buying decisions and word-of-mouth recommendations.
Understanding consumer behaviour is crucial for businesses to develop effective marketing strategies, create products that meet consumer needs, and build strong customer relationships.
Consumer behaviour helps to analyse the increasing influence of customers on products, prices, promotions and other organisational activities – Helping organisations to become more efficient
Organisations try to understand how to improve their existing products and develop new products which attract customers. – Helping organisations to become more profitable
Through education, consumers can be taught how to detect deception and other abuses and be made aware of opportunities for redress. – Helping protect consumers
Consumer behaviour helps formulate public policy, because a knowledge of the needs of the public (or consumers) helps inform public policy relating to economics, social welfare, family planning and, for that matter, lockdowns
