2. Definitions
• Customer
Example: Buyer
• Consumer
End User of the Service or the Product
• Behaviour
Act of doing things in a particular way
3. Buying Decision Process
• Problem Recognition
• Information Search
• Evaluation of Alternatives
• Purchase Decision
• Post Purchase Behaviour
Brand, Dealer, Quantity , Timing &
Payment Method
4. Factors Affecting Consumer Behaviour
• Cultural Factors like values, external
comfort, activity, success and
achievement.
Sub-Cultural factors like nationality,
religion, racial groups, geographic
locations will affect consumer behaviour.
5. Factors Affecting Consumer Behaviour
• Social Factors
(I) Reference Groups play an important role
(a) Membership Groups
- Primary (Family, Friend, Neighbours, Co-workers)
Family of Orientation (Religion, Politics, Economics, Personal
Ambition) & Family of Procreation (Food, Clothing, Cars, House,
Vacation)
- Secondary-(Religion, Professional, Trade Union)
(b) Aspirational Groups
(c) Dissociative Groups
(II) Roles & Status
6. Factors Affecting Consumer Behaviour
• Personal Factors
- Age (Food, clothing, re-creation)
-Stage of Life (Marriage, Childbirth, Relocation, Illness,
Career Change)
-Occupation (Spendable Income, Assets and savings,
borrowing power, attitude towards spending and saving)
-Personality(self confidence, dominance, autonomy,
deference, sociability)
-Self Concept (self image & self monitors)
-Life Style & Values(Activities, Interests, Opinions)
7. Theories for Consumer Behaviour
• Freud’s Theory
Market Stimuli+ other Stimuli affect the consumer
psychology (motivation, perception, learning, memory) &
consumer characteristics(social, cultural & personal)
which further affects the buying decision process of a
product or service.
8. Maslow’s Hierarchy of Needs
• Physiological Needs (Food, water & Shelter)
• Safety Needs (Security & Protection)
• Social Needs (Sense of belongingness)
• Esteem Needs (Recognition, status, self esteem)
• Self Actualization Needs (Self Development & Self
Realisation)
9. Herzberg’s Theory
• Two factor theory of dissatisfier and
satisfier.
• Avoid dissatisfiers.
• Select major satisfiers and supply them.
10. Expectancy Value Model
Items Attributes
Memory Capacity Graphics Capability Size and weight Price
A 8 9 6 9
B 7 7 7 7
C 10 4 3 2
D 5 3 8 5
Computer A= 0.4(8)+0.3(9) +0.2(6)+0.1(9)=8.0
Computer B= 0.4(7)+0.3(7) +0.2(7)+0.1(7)=7.0
Computer C= 0.4(10)+0.3(4) +0.2(3)+0.1(2)=6.0
Computer D= 0.4(5)+0.3(3) +0.2(8)+0.1(5)=5.0