BCPC 205 Lecture 4: Consumer Behaviour

Course Information

• Course: BCPC 205 Elements of Marketing
• Lecture: Four
• Topic: Understanding Consumer Behaviour

Presentation Overview

• Meaning of consumer behaviour
• Why study consumer behaviour?
• Features of consumer behaviour
• Models of consumer behaviour
• Consumer decision process
• Factors affecting consumer behaviour

Meaning of Consumer Behaviour

• The buying behaviour of final consumers (individuals and households) who buy goods and services for personal consumption
• Activities people undertake when obtaining, consuming, and disposing of products
• Dynamic interaction of affect, cognition, behaviour, and environmental events by which human beings conduct the exchange of their lives

Why Study Consumer Behaviour?

• To understand how consumers respond to marketing stimuli
• To develop and confirm a firm's competitive position
• To provide consumers with reliable products that meet their expectations
• To create customer loyalty, by developing a customer base that provides regular income and turnover, winning customer support even in the face of competition and providing goodwill that strengthens the firm's market position

Features of Consumer Behaviour

• Routine response behaviour: Consumers frequently buy items of low value that require very little thought.
• Limited decision making: Consumers do some thinking before purchasing an unfamiliar brand. Information may be limited.
• Extensive decision making: Consumers give the purchase of durables a good thought before a purchase decision. This involves seeking information on benefits of substitute products.
• Impulse buying: Consumers buy a product as a result of a strong urge to buy something immediately without much thought.

Models of Consumer Behaviour

• Help in understanding the relationship between marketing stimuli and consumer response

Consumer Decision Process

• Problem or opportunity recognition: The buyer senses a difference between his actual state and some desired state.
• Information search: The consumer gathers information to make the right decision to attain the desired state of affairs. Internal and external information searches may take place. -A consumer may consider brands in searching for information, The number of brands considered is referred to as the evoked set. Marketers can increase the size of the evoked set through repetition.
• Evaluation of alternatives: The consumer uses information to evaluate alternative brands in the evoked set, Evaluative criteria may include features, benefits, brand image, importance, usage, etc. of each brand in the evoked set.
  • Brand image refers to the set of beliefs that consumers hold about a particular brand.
• Purchase decision and act: This is the stage when a consumer actually buys the product. The ability of a purchase intention to be translated into a purchase decision could be influenced by attitudes of others and unexpected situational factors. A purchase decision is influenced heavily by perceived risk. Marketers must understand the factors that provoke feelings of risk in consumers and must provide information and support that will reduce the perceived risk.
• Post-purchase evaluation: The evaluation of a purchase may yield satisfaction or dissatisfaction. Cognitive dissonance may occur just after a purchase. It is discomfort caused by post-purchase conflict. It may lead to the return of the product or a decision not to buy it again.

Factors Affecting Consumer Behaviour

• Personal factors: Demographic factors, situational factors, level of involvement in decision-making
• Psychological factors: Motivation (motives drive the consumer decision process, motives are a form of strong stimulus), Perception (the process by which people select, organize, and interpret information to form a meaningful view of reality)
• Personality: Behavioural & individual traits which can be uniquely identified with customers (e.g., Aggression, competitiveness, etc.)
• Social factors: Culture and sub-culture, roles and status, group and reference group influence, family influences (autonomic, husband dominant, wife dominant, syncratic), social class
• Consumer buying roles: Possible decision-makers in a decision-making unit (Initiator, Influencer, Decider, Buyer, User)

Additional Question

• What factors can influence a student's choice of mobile phone in the market? (No notes available for answer)

This quiz explores the fundamentals of consumer behaviour, detailing its meaning, significance, and various models. You will learn about the factors that influence consumer decisions and how understanding these aspects can impact marketing strategies. Test your knowledge on consumer interactions and decision-making processes!