Chapter 1 Introduction to Consumer Behavior PDF

Chapter 1 Introduction to Consumer Behavior * S. M. Towhidur Rahman 1  Consumer Behavior □ Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products...

Chapter 1 Introduction to Consumer Behavior * S. M. Towhidur Rahman 1  Consumer Behavior □ Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. □ Stages of consumer buying process: Pre-purchase stage Purchase stage Post purchase * S. M. Towhidur Rahman 2 Stages of buying process □ Pre-purchase stage: Awareness Information search Analysis □ Factors considered: Urgency Criticality Buying situation Monetary involvement etc. * S. M. Towhidur Rahman 3 Continued… □ Purchase stage: Decision making Physical exchange □ Post-purchase stage Primary concern is customer satisfaction. Reducing cognitive dissonance. Ensuring long term customer relationship. * S. M. Towhidur Rahman 4 Continued… □ Factors affecting purchase decision Social factors Individual factors Environmental factors * S. M. Towhidur Rahman 5 Scope of Consumer Behavior □ What are the products people buy? □ Why they buy them? □ How they buy them? □ When they buy them? □ Where from they buy them? □ How often they buy them? □ How is the decision process of the consumer? * S. M. Towhidur Rahman 6 Relevant knowledge required in studying CB □ Anthropology: study of behavior in cultural and sub-cultural setting. □ Sociology: study of influence of social groups on individuals. □ Psychology: study of forces within the individual that shapes behavior □ Social-psychology: discusses how individuals operate in groups □ Marketing research: provides insights on consumers responses towards marketing stimuli □ Economics: deals with creation and utilization of wealth. * S. M. Towhidur Rahman 7 Why study Consumer Behavior? □ Significance in daily lives □ Application to decision making Micro perspective (making organizational decisions) Societal perspective ( improving efficiency in market economy, ensuring social wellbeing) (Ref: David L Loudon) * S. M. Towhidur Rahman 8 Emergence of Consumer Behavior Field □ CB has emerged as legitimate field of study during 1960s. □ Reasons for rapid development Marketing orientation of the businesses Sharing the knowledge of different fields of social science. Increased number of research on consumer behavior Development of technology Consumer movement * S. M. Towhidur Rahman 9 Allport Consumer Behavior Model □ An individual’s consumption or purchase decision is the outcome of the interaction among socio-cultural, social, individual factors and stimulus objects relating to products. * S. M. Towhidur Rahman 10