Definition: Consumer Behaviour is the analysis of the measures involved when a person or groups choose, procure, and utilize goods, services, designs approaches to fascinate consumer wants and hopes. It involves procedure by which consumers acknowledge their utilization issue, seeks for information, classify options feasible in the market, build a conclusion and select a product, utilize and adapt the product for comfort and pleasure.
It comprises of all the techniques beginning with the identification of consumer’s disputes, how he assembles facts from numerous internal and external sources, then use distinctive judgmental tests to choose the products utilizes the product and eventually destroy or sell the product.
Content: Consumer Behaviour
- Consumer Behaviour Models
Consumer Behaviour Models
An organization needs to recognize and accept the consumer’s feedback concerning various product features, cost and displaying interests, along with their impact on the products altering an aggressive verge over the other products.
Stimulus-response model of consumer behaviour helps in understanding how consumer builds decisions during the purchase of a product. There are two most common models, traditional model and contemporary models.
Traditional models consist of four different models; they are as follows:
This model focuses on the “act of purchase” of “Average consumer” and describe what a buyer would buy and “In what quantity”.
Under the economic model of consumer behaviour, buyers try to enlarge the efficiency from products based on the law of diminishing marginal utility. The needs of buyers to earn the utmost profits by investing a minimum amount acts as the origin for the foundation of this model.
This model depends on the idea that consumer behaviour is driven by the desire to fascinate elementary and accomplished desires. Elementary desires involve food, clothing and shelter, although accomplished desire involves fear and guilt.
Therefore, a buyer must have a habit to buy stuff that will fascinate their desires and grant pleasure. A hungry consumer will overlook on purchasing a lovely piece of the necklace to purchase some food, but will afterwards go back to buy the necklace once her craving is contented.
This model considers the fact that consumer behaviour is affected by both the conscious and unconscious mind. The three levels of consciousness explained by Sigmund Freud are (id, ego and superego)
Where; id is an individual is born with, superego is formed out of values, and ego acts as a balance between id and superego. All try to affect purchasing choices and actions.
An obscure symbol is a company’s name or logo; it may have an impact on human’s unconscious mind and may affect him to purchase that product rather than a similar product from other company.
- Example: In today’s market, there are numbers of fake products which are a true copy of the original brand.
Suppose there is a true copy of ABC brand in the market, almost everything is same, packaging, colour, picture, only a little or slightly change in the logo or spelling of the name of the product.
But customer’s unconscious mind believes that the product is a real one, even if it is fake and they buy it. It may be because of their unawareness about the product or maybe the customer is in a hurry.
According to this model, an individual buyer is a member of an association called “society”, and gets affected by it and consecutively also affects it in its course of improvement.
Here, there are two types of groups which affect the buying behaviour of a consumer; they are Primary and secondary group.
- Primary group: Its members are moreover friends, relatives and family members.
- Secondary group: Its members are society, personality type, and requirements based on the same.
The sociological model aims attention primarily on the lifestyle and associated product exaction of the consumer in society.
These models also consist of four models; they are as follows:
This model provides information regarding complexity involved in consumer behaviour, and it considers assorted factors like attitudes of consumers, their understanding level and learning ability that influence consumer behaviour.
This model is based on four variables such as:
- Input variables: As per Howard Sheth Model inputs are provided by three types of stimuli such as significance stimuli, symbolic stimuli, and social stimuli, that are essential to make purchase decisions.
Here, significance stimuli refer to the tangible product characteristics such as uniqueness, quality, stock availability, price and service effectiveness.
Whereas, symbolic stimuli refer to the opinion of a person about specific product characteristics. And, social stimuli focus on all the factors that belong to social groups to which a consumer belongs.
Some factors related to social stimuli are family, reference groups, and consumer’s financial status in society.
- Output variables: Output variables in Howard sheth Model refers to the ultimate buying decisions and satisfaction or dissatisfaction levels of a buyer after purchasing the product.
High satisfaction outcomes in inflated brand achievement, although dissatisfaction leads to lower branch achievement.
- Hypothetical constructs: It involves the psychological variable such as attitude, motivation, learning and understanding, which affect the decision-making procedure of a customer.
Here, hypothetical constructs have been classified into two groups:
- Perceptual constructs: Perceptual constructs manage the way; a person identifies and acknowledges the information.
- Learning constructs: It manages the way, how buyer forms attitudes, opinions and knowledge influencing his buying decisions and also an evaluation after purchase.
- Exogenous variables: These variables refer to an indirect effect applied to the decision-making procedure of customers by determinants like financial status, social class, essentiality to buy and personality attributes of a person.
This model is basically a problem resolving and training model of consumer behaviour. This model has an advantageous depiction of active facts looking for and assessment procedures of a customer expressing consumer behaviour procedure while selecting product or service.
In this model, they view consumer’s behaviour as a decision-making process and identify four different activities occurring in their decision-making process; they are:
- Problem recognition: In it, the customer will identify the distinction between his or her actual condition and what the standard condition must be; this may arise because of external stimuli.
- Information search: Originally, the facts accessible by the customer may be steady to other assumptions and opinions belonging to him/her. Although, being participative in the news, accessible or search stage, the customer will struggle to collect more facts from different sources.
- Evaluation of alternatives: In alternative evaluation, an individual will evaluate alternate brands. The procedure used for checking the different products will depend on the customer’s hidden objectives, intentions, and personality.
- Choice: Here, the consumers choice will rely upon regulating compliance and expected situations
This model displays the reciprocal relations between the company and the customer, and originate among them for bilateral communication, company interact with customers by way of promotional exercises, although customers communicate by purchasing products.
In Nicosia model, the decision-making process is divided into four areas; they are:
- Consumer Attitude: Consumer attitudes are formed by news and data gathered from the market. In this area, news flows from the origin of their formation to the recipient.
- Research and evaluation: In this area, the consumer expects news about explicit products and provides them value. At the time of evaluation, the consumer assigns relevant emphasis on every news.
- Act of purchase: After evaluation and analysis, when a customer is fully satisfied with a product than they are motivated to buy that product, and here, they purchase the product and use it.
- Feedback: Feedback is a form of response which comes after consuming the product. It may be each of two positive or negative.
Marketing and other stimuli get into the consumer’s “black box” or consumer’s mind and create certain buying responses. Marketers should evaluate what is inside the consumer’s mind and how stimuli converted to responses.
- Marketing stimuli involves four Ps
- Other stimuli consist of major forces and events in the consumer’s environment, i.e.
- All these inputs come in the consumer’s mind where they become a set of apparent consumer responses, i.e.
- Product choice
- Brand choice
- Dealer choice
- Purchase timing
- Purchase amount
The marketer wants to understand how the stimuli are changed into responses inside the customer’s mind which have two parts:
- The buyer’s trait affect how he/she recognize and respond to these stimuli and;
- The buyer’s decision process affects the buyer’s behaviour.
Consumer Behaviour consists of the behaviour styles of decision entities (singular person along with the families) which anticipates, decide and chase on the decision-making process for the purchase of wanting gratifying products, designs and services.