UNIT II – CONSUMER BUYING BEHAVIOUR

Introduction, Characteristics, Factors affecting Consumer Behaviour, Types of Buying

Decision Behaviour, Consumer Buying Decision Process, Buying Motives, Buyer Behaviour
Models

INTRODUCTION
Consumer buying behaviour describes the steps consumers take before purchasing a good or
service, both online and offline. This process could include search engine research,
participation in social media discussions, and various other activities. Understanding this
process is beneficial for organizations because it enables them to match better
their marketing attempts to those that have previously successfully persuaded customers to
make purchases.
According to Louden and Bitta, 'Consumer behaviour is the decision process and physical
activity, which individuals engage in when evaluating, acquiring, using or disposing of goods
and services'.
Consumer buying behaviour is the sum total of a consumer's attitudes, preferences,
intentions, and decisions regarding the consumer's behaviour in the marketplace when
purchasing a product or service. The study of consumer behaviour draws upon social science
disciplines of anthropology, psychology, sociology, and economics
OBJECTIVES OF STUDYING CONSUMER BEHAVIOUR
 Understanding consumer needs and preferences
 Predicting consumer buying behaviour
 Exploring decision-making processes
 Segmenting and Targeting markets
 Assessing customer satisfaction and loyalty
 Adapting to changing consumer trends
 Strategizing businesses for growth

CHARACTERISTICS OF CONSUMER BEHAVIOUR

Understanding consumer behaviour involves recognizing several essential characteristics:

 It’s a process which involves the decisions of what to buy when to buy, how to buy,
where to buy, and how much to buy.
 Consumer behaviour comprises both the mental and physical activities of consumers.
 It is a highly complex and dynamic process.
 Individual buying behaviour is influenced by internal factors such as needs, wants,
attitudes, and motives, as well as external factors like social groups, culture, status,
and environmental factors.
 Consumer behaviour starts before the purchase decision and it even continues after
the purchase is made.

Importance of Studying Consumer Behaviour

The study of consumer behaviour holds significant importance for businesses and the market
as a whole. Its importance includes.

 Developing better strategies for increasing profits.

 Considering customer health, hygiene, and fitness when offering products.
 Understanding buying decisions and consumption patterns.
 Adapting to consistent changes in consumer tastes and preferences.
 Formulating pricing policies based on consumer behaviour.
 Mitigating the risk of future market failures
 Comprehending consumer needs
 Fabricating effective marketing strategies
 Identifying market opportunities
 Enhancing customer experience
 Building strong brand relationships

FACTORS INFLUENCING CONSUMER BEHAVIOUR

Consumer behaviour is influenced by various factors, including:

Psychological Factors
 Consumer Needs and Motivation: This factor explores the basic human needs that
drive buying decisions, as outlined in Maslow’s hierarchy of needs.
 Reference Groups: People are influenced by the groups they belong to or admire,
impacting their choices.
 Roles and Status: Social roles and positions can affect what individuals purchase.
 Family: Family dynamics and roles play a crucial role in consumer choices.
 Perception: How consumers perceive products and brands can heavily influence their
decisions.
Personal Factors
 Age: Different age groups have varying preferences and buying patterns.
 Stages in the Life Cycle: Life events and stages, such as getting married or having
children, impact consumer behaviour.
 Learning: Consumer behaviour can change as people learn more about products or
services.
 Beliefs and Attitudes: Personal beliefs and attitudes shape consumer choices.
Cultural Factors
 Culture: Cultural values and norms have a significant influence on what people buy.
 Subculture: Smaller cultural groups within a society can have distinct preferences.
 Social Class: Social status and class affect consumer decisions.
Social Factors
 Status: One’s social status or position can impact what they purchase.
 Lifestyle: A person’s way of living influences their buying choices.
 Occupation and Economic Status: Employment and financial situation play a role in
consumer behaviour.
 Personality: Individual personality traits can affect preferences and decisions.
Economic Factors
 Personal Income: The amount of money an individual earns affects their purchasing
power.
 Family Income: Household income impacts overall spending.
 Income Expectations: What people anticipate in terms of future income can
influence current buying decisions.
 Savings: The level of savings an individual has can affect their willingness to spend.
 Liquidity Position: Access to liquid assets, like cash or credit, can influence spending
habits.
 Consumer Credit: Availability of credit can impact purchasing decisions.

Environmental Factors
 Political Situation: The political climate can influence consumer confidence and
behaviour.
 Legal Forces: Laws and regulations, such as consumer protection laws, affect the
market.
 Technological Advancements: Technological innovations shape consumer
preferences and choices.
 Ethical Considerations: Consumer decisions may be influenced by ethical concerns
related to products or brands.

TYPES OF BUYING DECISION BEHAVIOUR

There are four types of buying decision behavior:

1) Complex Buying Behavior:
Complex buying behavior occurs when consumers face a high level of involvement in the
purchase decision and encounter significant differences among available options. This type of
behavior is commonly observed when consumers are purchasing expensive, risky,
infrequently purchased, and highly self-expressive products, such as a house, a car, or a
computer. The decision-making process is extensive and involves thorough research,
evaluation of alternatives, and consideration of multiple factors, such as price, quality,
features, and brand reputation. Consumers engage in information gathering, consult expert
opinions, and rely on personal experiences to make informed decisions.
For example, suppose a consumer wants to buy a new laptop. He would likely spend time
researching different brands, comparing specifications/features, reading customer reviews,
and seeking recommendations from friends or technology experts before finalizing their
purchase.
Simply put, in complex buying behaviour, the consumer will go through different learning
phases. Firstly, he will learn and develop a belief regarding the product that he wants to
purchase. The belief of the consumer creates his attitude based on which he will make the
final purchase decision. Therefore, the marketers of the high involvement products must
ensure that they understand the information-gathering and evaluation behaviour of these
customers and help them learn about the attributes of the product along with their relative
importance. They can also take the help of advertisements so the customers can get answers
to basic questions.
2)Dissonance-Reducing Buying Behavior:
Dissonance-Reducing Buying Behavior occurs when consumers face a high level of
involvement in the purchase decision but encounter little difference among brands. This type
of behavior is commonly observed when consumers are purchasing expensive, infrequent, or
risky products; such as furniture, curtain material, or sofa covers/upholstery. These products
face high involvement of the consumer as they are expensive and self-expressive. Also, as the
perceived brand difference is not large in this case, the consumers would purchase easily and
readily available products.
For example, suppose a consumer wants to buy a portable tent for camping. For this, he will
have to make a quick decision from the limited options available to him. He will make the
purchase decision without doing enough research and inquiring about information from
different sources about it.
Once the purchase is made, the consumers might experience post-purchase dissonance or
after-sale discomfort. It happens when the consumer notices some disadvantages of the
purchased brand or hears some good things about the other brand. For such dissonance, it is
essential for the marketer to provide the consumers with after-sale communications and help
them feel good about their brand choices.
3)Habitual Buying Behavior:
Habitual Buying Behavior occurs when consumers face a low level of involvement in the
purchase decision along with little significant brand differences. This type of behavior is
commonly observed when consumers are purchasing products like salt, etc. Low involvement
of consumers means that they simply reach the store and go for a brand to buy a product. If
the consumer is buying a product from the same brand, it does not mean that they are loyal to
the brand. It just means that the consumer is buying the product out of habit.
For example, buying a specific brand of toothpaste, snack items, or toiletries from a particular
store without much thought or consideration falls under habitual buying behavior. Consumers
may choose these products based on familiarity, past positive experiences, or simply because
it is part of their routine.
The consumer behavior, in this case, does not pass through the usual belief attitude behavior
sequence. Before purchasing a product, these consumers do not extensively search for
information regarding the brand, evaluate the characteristics of the brand, and make weighty
decisions on which brand to purchase. Instead, they just passively receive the information
while watching television or reading newspapers or magazines. Also, Ad repetitions instead
of creating brand conviction, create brand familiarity in the minds of consumers. Because of
this, consumers do not form strong attitudes towards a brand; they just select the brand
because they are familiar with it. Therefore, the marketers take help of repetitive marketing
campaigns, so that consumers can remember their brand.
4)Variety-Seeking Buying Behavior:
Variety-Seeking Buying Behavior occurs when consumers exhibit a desire for new
experiences, change, and novelty in their purchases. It means that when consumers face a low
level of involvement but significant perceived brand differences, they undertake variety-
seeking buying behavior. In such cases, the consumers switch brands more often.
For example, a consumer chooses a namkeen brand without doing much evaluation, and then
after consuming the product, evaluates it. But the consumer might pick another brand when
making a purchase the next time. The reason behind this can be his urge to try something new
or just out of boredom.
Consumers engaging in variety-seeking behavior may not have strong brand loyalty and
actively seek alternatives, even if they are satisfied with their current choices. They enjoy
exploring different options, experimenting with new products, and deviating from their
routine purchases. This behavior is more prevalent in product categories where there are
numerous options and alternatives available. Besides, the marketing strategy of the products,
in this case, may differ for the minor brands and the market leader. Market leaders try to
encourage the habitual buying behavior of consumers by dominating shelf space, keeping the
shelves fully stocked with goods, and running advertisements frequently as a reminder.
However, the challenger firms encourage the variety-seeking behavior of consumers by
offering them coupons, free samples, and goods at lower prices and encouraging them
through advertisements to buy something new.

CONSUMER BUYING DECISION PROCESS

The Buying Decision Process is a fundamental concept in understanding consumer behavior,
as it provides insights into how individuals make purchasing decisions. This process treats
consumers as decision-makers who engage in a series of stages when coming to the market to
fulfill their needs and achieve satisfaction. While the buying process can be simplified into an
Input-Process-Output model, a more comprehensive understanding involves examining
different stages within this process.

1. Identifying Needs
The buying decision process commences with the identification of a need. Needs serve as the
driving force that motivates consumers to seek solutions and fulfill their requirements. For
instance, in an ever-increasing environment of uncertainty, individuals may recognize the
need to secure their lives through life insurance policies. Identifying a need initiates the
consumer's journey into the market.
2. Searching for Information
Once a need is identified, consumers embark on a quest for information that can help them
satisfy that need. Information can be gleaned from various sources, including friends, family,
neighbors, advertisements, salespersons, dealers, and mass media. Personal sources, such as
family, friends, and neighbors, often play a pivotal role in providingg relevant insights.
Advertisements serve as a means to inform consumers about available solutions, while
personal sources aid in evaluating the product or service options. For example, an individual
seeking life insurance advice may turn to friends and colleagues to gather information about
various insurance options.
3. Evaluating Alternatives
At this stage, consumers have acquired sufficient information to address their needs. The
information encompasses different brands and options available in the market that can
potentially fulfill their requirements. Evaluation may be conducted independently through
logical thinking, or consumers may seek advice from friends, family, or dealers and agents.
This phase allows consumers to rank brands based on their perceived benefits and relevance.
The brand that receives the highest ranking is typically considered for purchase. However,
external factors, such as the opinions of others and unexpected situational variables (e.g.,
price fluctuations, changes in benefits, income variations), can influence the final purchase
decision. The attitudes and recommendations of others can play a significant role in shaping
the consumer's choice.
4. Taking Purchase Decision
The purchase decision represents the culmination of the evaluation process. Consumers select
the brand or product that aligns most closely with their needs and expectations. While
evaluation plays a crucial role, two factors may influence the final purchase decision: the
attitudes and opinions of others and unforeseen situational factors. The influence of others,
such as family, friends, or colleagues, can sway the consumer's choice more than situational
factors like price fluctuations or income changes.
5. Post-Purchase Behaviour
Post-purchase behaviour refers to the actions and reactions of consumers after making a
purchase, driven by their level of satisfaction or dissatisfaction. Satisfaction occurs when the
product or service's actual performance aligns closely with the consumer's expectations. In
contrast, dissatisfaction arises when there is a significant gap between the consumer's
expectations and the perceived performance of the product or service. To ensure customer
satisfaction and loyalty, companies should actively measure and monitor consumer feedback
and complaints. Open communication channels for addressing issues and improving product
performance are essential for fostering positive post-purchase behaviour.
Understanding the Buying Decision Process is pivotal for businesses to tailor their marketing
strategies, distribution channels, and customer service efforts to effectively meet consumer
needs and enhance their overall experience. It provides valuable insights into the intricate
journey consumers undertake when making purchasing decisions.
BUYING MOTIVES
In the words of D. J. Durdian, “Buying motives are those influences or considerations which
provide the impulse to buy, induce action or determine choice in the purchase of goods and
services.”
Buying motives in consumer behaviour refers to the reasons or factors driving people to
purchase. These motives can be emotional, such as wanting to feel happy or secure, or
rational, like needing a product for practical reasons. Emotional motives often involve
feelings, desires, or status, while rational motives focus on quality, price, and necessity.
Understanding buying motives helps product and marketing teams create products and
marketing strategies that connect with customers' needs and desires, ultimately influencing
their buying decisions. Addressing these motives can help you better meet customer
expectations and increase sales.
The Importance of Buying Motives in Consumer Behaviour
Buying motives in consumer behaviour can be based on emotions, practical needs, or social
factors. By identifying what drives consumers, businesses can craft effective strategies to
meet their customers’ needs. Here are some importance of these motives:
 Personalised Marketing: Businesses can create targeted ads that resonate with
specific customer desires and needs.
 Better Product Development: Knowing motives helps companies design products
that solve real customer problems or fulfil desires.
 Effective Pricing Strategies: Understanding what drives buying decisions allows
businesses to set prices that align with customer expectations.
 Improved Customer Satisfaction: When businesses address the true motives behind
purchases, customers feel more satisfied and valued.
 Stronger Customer Relationships: Focusing on consumer motives builds trust,
encouraging long-term loyalty and repeat purchases.
 Higher Conversion Rates: By catering to what motivates customers, businesses can
improve their sales and conversion rates.
 Competitive Advantage: Companies that understand consumer behaviour can stay
ahead of competitors by offering solutions that directly appeal to their audience's
needs.
 Enhanced Brand Perception: Addressing emotional motives, such as status or
identity, helps create a stronger connection between customers and the brand.

Types of Buying Motives in Consumer Behaviour

Knowing the types of buying motives in consumer behaviour allows you to tailor your
offerings and help marketing teams build strategies that match consumer needs. Below are
five common types of buying motives:
1. Rational Motives
Rational motives are based on logic, practicality, and necessity. Consumers driven by rational
motives think carefully about their purchases, considering factors like quality, price,
durability, and usefulness.
Characteristics:
 Logical Thinking: The decision-making process is based on facts and clear benefits.
 Comparison: Consumers often compare prices, features, and reviews before making
a decision.
 Need-Based: These motives focus on fulfilling a specific need rather than a desire.
 Cost-Effective: Consumers choose products that offer the best value for money.
Example:
A person buying a washing machine will likely compare brands, energy efficiency, price, and
durability before making a purchase. They are more interested in getting the best
functionality at the right price rather than emotional factors.
2. Emotional Motives
Emotional motives are based on feelings, desires, and emotional connections. Consumers buy
products not because they need them, but because of the emotions the products evoke.
Characteristics:
 Feelings-Based: Purchases are driven by emotions like happiness, love, or
excitement.
 Desire for Experience: Consumers often buy products to enhance their lifestyle or
feel a certain way.
 Impulsive Buying: Emotional motives can lead to spontaneous purchases without
much thought.
 Brand Connection: Consumers may choose products because of a strong emotional
connection to a brand.
Example:
Someone buying a luxury handbag may not need it, but they might feel that owning it will
make them feel more confident or stylish. The emotional appeal of owning something
exclusive drives the purchase.
3. Economic Motive
Economic motives are based on the desire to save money, get discounts, or receive the best
deal. Consumers motivated by economics focus on getting the most for their money, whether
through sales, promotions, or overall affordability.
Characteristics:
 Price Sensitivity: Consumers look for the lowest prices or the best deals.
 Value for Money: The decision is based on maximising value for the amount spent.
 Discount Hunting: Shoppers often wait for sales or special offers before making a
purchase.
 Budget-Conscious: These consumers are highly aware of their spending limits.
Example:
A consumer may wait for Black Friday sales to buy a TV at a discounted price. They
prioritise getting the product at a lower price rather than paying full price, even if they want
the TV sooner.

4. Social Motive
Social motives are driven by the desire to fit in, be accepted, or impress others. Consumers
make purchasing decisions based on how the product or service will affect their social status
or relationships.
Characteristics:
 Peer Influence: Consumers buy products because their friends or peers have them.
 Status Symbol: High-end or branded products are often chosen to reflect a certain
social standing.
 Conformity: The desire to fit into a group or follow trends plays a key role.
 Social Acceptance: These motives stem from wanting to be perceived in a certain
way by others.
Example:
A teenager might buy the latest smartphone because all their friends have it, not necessarily
because they need the advanced features. The primary reason is to fit in with their social
circle and avoid feeling left out.
5. Psychological Motive
Psychological motives are based on internal feelings, thoughts, and perceptions. These
motives often stem from personal growth, self-image, or mental satisfaction. Consumers
make purchases that reflect their self-esteem or mental state.
Characteristics:
 Self-Image: Purchases are made to align with how a person sees themselves or how
they want to be seen.
 Mental Satisfaction: Consumers seek fulfilment, happiness, or personal satisfaction
from a product.
 Identity: Purchases reflect a consumer’s personality or values.
 Security and Comfort: Some products are bought to bring a sense of safety or
comfort.
Example:
A person buying a fitness tracker may do so to feel more in control of their health and
improve their self-image. They are motivated by the psychological satisfaction of living a
healthier lifestyle, even if they could manage their health without the device.
BUYER/CONSUMER BEHAVIOUR MODEL
Consumer behaviour models can be understood as frameworks that help you understand how
customers make decisions about what to buy. It looks at factors like what influences people’s
choices, their buying habits, and what motivates them to make a purchase. The purpose of
these models is to give companies insights into customer preferences and behaviour so they
can better meet their needs. By using consumer behaviour models, businesses can improve
their marketing, develop better products, and create more personalised customer experiences,
leading to greater satisfaction and loyalty.
Importance of Consumer Behaviour Models
Customer behaviour models provide insights into customer preferences and decision-making,
helping businesses tailor their strategies to better meet customer needs.
Here are five reasons why consumer behaviour models are important:
Improved Marketing:
Consumer behaviour models help businesses identify the preferences and buying habits of
their target audience. This allows companies to create more personalised marketing strategies,
ensuring that their messaging resonates with the right people.
Better Product Development:
These models provide insights into what customers really want from products. By analysing
consumer behaviour, you can develop products that align with customer needs and
expectations. This reduces the risk of launching products that may fail in the market.
Customer Retention:
When you understand your customer’s behaviour, you can create experiences that keep
customers satisfied and coming back. By anticipating customer needs and preferences, you
can offer tailored solutions that improve customer loyalty.
Effective Pricing:
Consumer behaviour models help businesses determine how much customers are willing to
pay for a product. By analysing purchasing patterns and price sensitivity, companies can set
optimal price points that appeal to their audience.
Enhanced Customer Experience:
Tailoring the customer experience based on consumer behaviour leads to higher satisfaction.
Businesses can use these models to understand customer journeys, preferences, and pain
points, allowing them to improve every interaction.