Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce1

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Those activities directly involved in obtaining, consuming and disposing of products and services, including the decision processes that precede and follow these actions Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce3

4 I'm the fellow who goes into a restaurant, sits down and patiently waits while the waitresses do everything but take my order. I'm the fellow who goes into a department store and stands quietly while the sales clerks finish their little chitchat. I'm the man who drives into a gasoline station and never blows his horn, but waits patiently while the attendant finishes reading his comic book. "Yes, you might say, I'm a good guy. But do you know who else I am? I am the fellow who never comes back, and it amuses me to see you spending thousands of dollars every year to get me back into your store, when I was there in the first place, and all you had to do to keep me was to give me a little service; show me a little courtesy.“

 You cannot take the consumer for granted any more’  Therefore a sound understanding of consumer behaviour is essential for the long run success of any marketing program Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce5

6 Consumer Behavior is the Process Involved When Individuals or Groups Select, Use, or Dispose of Products, Services, Ideas or Experiences (Exchange) to Satisfy Needs and Desires.

Obtaining ConsumingDisposing ConsumerInfluencesOrganizationalInfluences Consumer Behavior Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce7

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 Occurs when the buyer recognizes a problem or need triggered by: ◦ Internal stimuli ◦ External stimuli Need Recognition

 Personal sources—family and friends  Commercial sources—advertising, Internet  Public sources—mass media, consumer organizations  Experiential sources—handling, examining, using the product Information Search Sources of Information

 How the consumer processes information to arrive at brand choices Evaluation of Alternatives

 The act by the consumer to buy the most preferred brand  The purchase decision can be affected by: ◦ Attitudes of others ◦ Unexpected situational factors Purchase Decision

 The satisfaction or dissatisfaction that the consumer feels about the purchase  Relationship between: ◦ Consumer’s expectations ◦ Product’s perceived performance  The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction  Cognitive dissonance is the discomfort caused by a postpurchase conflict Post purchase Decision

Customer satisfaction is a key to building profitable relationships with consumers— to keeping and growing consumers and reaping their customer lifetime value Post-Purchase Decision

FACTORS INFLUENCING CONSUMER BEHAVIOUR Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce16

ProductPricePlacePromotion

AGE GENDER EDUCATION INCOME LEVEL STATUS IN SOCIETY Trendy clothes by teenageers Male – cosmetics Female cosmetics Highly educated – personal care PERSONAL FACTORS

Learning (through information and experience Attitude (Positive or negative –towards brands) Motives Love & affection, Comfort & Convenience Perception Impression about a product Psychological factors

Physical surroundings – layout of the store, merchandise displayedSocial Surrounding-impatient friend, family membersTime factor – hour of the day, season of the yearMomentary Conditions – mood at the time of purchase

Friends, opinion leader, Reference Groups Children, Family Women- two roles : mother & finance manager Roles & Status

Consumption of alchohol Religion Caste, languages etc. Sub- cultures