Lecture Notes: Consumer Behavior

Introduction

• Previously discussed marketing management.
• Focus of today: consumer behavior.
• Goals:
  • Discuss types of consumer behavior.
  • Understand different buying motives (psychological and social).
  • Evaluate factors influencing consumer buying decisions.

Importance of Customers

• Quote from Mahatma Gandhi about the significance of customers.
• Customers are the lifeblood of an organization.
• Differentiating between buyer, consumer, and customer:
  • Buyer: Purchases goods for resale or production.
  • Consumer: Uses or consumes the product.
  • Customer: Purchases from a business, can also be a consumer.

Understanding Consumer Behavior

• Interaction with environment affecting purchase decisions.
• Study of activities related to purchase, use, and disposal of goods/services.
• Importance of understanding consumer behavior:
  • Shapes organizational strategies.
  • Regulates consumption, maintains stability.
  • Efficient resource utilization in marketing.
  • Solves marketing problems effectively.
  • Considers culture, wants, status, demographics.
  • Adapts to trends like environmentally friendly products.
• Benefits of understanding consumer behavior:
  • Identifying customer demands and preferences.
  • Effective market segmentation and targeting.
  • Innovation in product offerings.

Types of Buying Decisions

1. Complex Buying: Brand loyalty, high involvement.
2. Dissonance Reducing: High involvement, little brand difference.
3. Habitual Buying: Low involvement, frequent purchases (e.g., groceries).
4. Variety Seeking: Desire for different brands, significant brand differences.

Buying Motives

• Definition: Factors influencing purchasing decisions.
• Types:
  • Emotional Motives: Based on personal feelings.
    • Sex/Romance: Buying for appeal or attraction.
    • Affection: Buying out of love or protection.
    • Social Acceptance: Buying for social respect.
    • Vanity: Buying for status symbol.
    • Recreation/Relaxation: Buying for leisure activities.
    • Curiosity: Buying out of interest, especially in youth.
    • Emulation: Buying to mimic idols or celebrities.
    • Comfort/Convenience: Buying for ease or comfort.
  • Rational Motives: Logical, objective decisions.
    • Monetary: Financial benefits (discounts, offers).
    • Efficiency: Product effectiveness for tasks.
    • Dependability: Reliability and durability.
• Patronage Motives: Loyalty-based purchases.
  • Primary and Selective Product Motive:
    • Primary: Meets basic criteria.
    • Selective: Based on specific brand preference.

Factors Influencing Consumer Behavior

• Economic Factors: Income, credit, financial assets, standard of living.
• Personal Factors: Demographics like age, occupation, life cycle.
• Psychological Factors: Lifestyle, motivation, perception.
• Cultural Factors: Culture, subculture, social class, social groups.

Buying Decision Process

1. Problem Recognition: Identify need or desire.
2. Information Gathering: Collect data from various sources.
3. Evaluation of Solutions: Consider options and make a choice.
4. Purchase Phase: Make the purchase.
5. Post-Purchase Phase: Evaluate satisfaction and provide feedback.

Conclusion

• Importance of analyzing consumer behavior for effective marketing.
• Reminder to read the module for deeper understanding.
• Encouragement for active participation and application of knowledge.