Characteristics Affecting Consumer Behaviour

• Cultural Factors

  • Culture: Set of basic values, perceptions, wants, and behaviors.

  • Subculture: Group with shared value systems based on life experiences.

  • Social Class: Permanent divisions in society sharing similar values and interests.

• Social Factors

  • Reference Groups: Groups that influence attitudes/behaviors.

  • Family: Primary consumer buying organization.

  • Roles and Status: Position within groups influences purchasing.

• Personal Factors

  • Occupation: Impacts buying power and preferences.

  • Age and Life Cycle Stage: Needs change over time.

  • Economic Situation: Financial status affects buying behavior.

• Psychological Factors

  • Motivation: Drives consumer behavior (e.g. Maslow's Hierarchy).

  • Perception: Process of organizing and interpreting information.

  • Learning: Change in behavior from experience.

  • Beliefs and Attitudes: Influence purchasing decisions based on evaluations.

The Consumer Decision Process

This process includes several stages that consumers pass through when making a buying decision:

• Need Recognition: Realization of a need or problem.

• Information Search: Seeking information to address the need.

• Evaluation of Alternatives: Comparing various products or brands.

• Purchase Decision: Final decision on what to buy.

• Post-Purchase Behavior: Evaluations post-purchase influencing future behavior (satisfaction or dissatisfaction).

Models of Consumer Behavior

• Stimulus-Response Model: Describes how marketing stimuli (4 Ps: Product, Price, Place, Promotion) influence buyer responses.

• Buyer’s Black Box: Refers to the internal process of consumers that includes perceptions, motivations, attitudes, and social influences influencing their buying decision.

Psychological Processes Influencing Consumer Behavior

• Motivation:

  • Driven by needs such as physiological, safety, social, esteem, and self-actualization.

• Perception:

  • Affected by selective attention, distortion, and retention, shaping how products are viewed in the marketplace.

• Learning and Attitudes:

  • Learning: Process by which behavior changes based on experiences.

  • Attitudes: Consistent evaluations or feelings toward products.

Cognitive Dissonance

• The theory that people strive to reduce inconsistencies (dissonance) between thoughts, feelings, and behaviors.

Buying Decision Behavior

• High Involvement vs. Low Involvement:

  • High involvement requires significant thought and is driven by emotional attachment, while low involvement leads to routine purchases.

• Purchase Decision Differences:

  • Consumers may experience dissonance post-purchase if they notice better alternatives.

Conclusion

• Understanding consumer behavior is critical as it integrates insights from psychology, sociology, anthropology, and economics.

• It aids in understanding needs, delivering relevant product information, designing suitable products, influencing positive perceptions, and identifying behavioral patterns.