CONSUMER BEHAVIOR
CHAPTER # 1
“INTRODUCTION AND
OBJECTIVES”
By
Aaftab Ullah
IN THIS FIRST CHAPTER, WE ARE
GOING TO DISCUSS THREE MAIN
AREAS,
 DEFINING THE
NATURE OF
CONSUMER BEHAVIOR
 APPRECIATING WHY WE
SHOULD
STUDY CONSUMER BEHAVIOR
 DEVEOLPING A
FRAMEWORK FOR
STUDYING CONSUMER BEHAVIOR
Consumer Behavior
The actions a person takes in
purchasing and using products and
services.
 Including the mental and social
processes that precede and follow
these actions.

Consumer and behavior

Consumer is a person who consumes or uses
different products, services, etc

Behavior means that how the customer of a
particular area behaves towards the product.
Effect of external variables on
the Decision Process:

It can be defined as “the actual act of
purchase of a product in a series of mental
and physical activities that occur during a
period of time”.

There are five steps involved in decision
making,
◦
◦
◦
◦
◦
1). Need
2). Identification of alternatives
3). Evaluation of alternatives
4). Decision
5). Post purchase
1: Culture
The tastes in art and manners that are
favored by a social group, or All the
knowledge and values shared by a society.
Example:
 Wine (alcohol) the behavior of non
Muslim will be favorable to it. But the
behavior of a Muslim will be negative.
2: Subculture

Example
Behavior of Christians in USA towards
Christmas is so favorable but the Hindus
(subculture) living in USA will never
celebrate Christmas.
3: Social Class

Lap top of Dell latest model (very
expensive) now the rich people’s behavior
towards this product will be favorable but
poor peoples behavior toward this
product will be negative
4: Social Group

The behavior of group of college
students will be positive towards
latest fashion but the behavior of
group of religious minded people
will be totally different.
5: Family Influence

The behavior of father will be
negative towards purchasing play
station but still he purchases.
6: Personal Influence:
Example 6:

The behavior of the fans of Shahrukh khan will
be positive towards a product used by Shahrukh
khan but the behavior of the people who don’t
like Shahrukh khan will be negative towards the
same product.
Defining Consumer Behavior
The decision process and physical activity
individuals engage in, when evaluating, acquiring,
using or disposing of goods and services.
WE NEED TO UNDERSTAND SOME BASIC
TERMINOLOGIES, WHICH WE WILL BE USING IN THIS
SUBJECT:
COSTUMER
A person who regularly purchases products or hire
services from a particular store or service provider.
E.G, you daily or say after 2 days use to fill your car at
shell gas station, in this case you will be considered as
customer of shell company.
CONSUMER:

Traditionally consumers are defined as
the purchasers of products and services
offered for sale.
ULTIMATE CONSUMER:
Those persons who purchases for the
purpose of individual or house hold
consumption.
The consumer behavior
Roles:

Initiator the individual who determines

Influencer A person who by some

Buyer the individual who actually makes

User the person most directly involved in
that some need or want is not being met.
intentional or unintentional word or action
influences the purchase decision.
the purchase transaction.
the consumption of a purchase.
 For

example:
A wife (initiator and influencer) may
ask her husband (buyer) to pick up a
box of NIDO on his shopping trip
because their child (user) said she
wanted it.
Why we study consumer
behavior..?
1: Significance


in Daily Lives:
Much of our time is spent directly in
the marketplace.
The goods we purchase and the
manner in which we use them
significantly influence how we live our
daily lives.
So it plays very basic role
in our daily lives.
2: Application to Decision Making:
Consumers are often studied
because certain decisions are
affected by their behavior or
expected actions.
 Such applications can exist at two
different levels of analysis.

 1: Micro
perspective:
 2: Societal perspective:
1. Micro Perspective:
 The
micro perspective involves
understanding consumers for the
purpose of helping a firm or
organization accomplish its objectives.
Advertising managers,
product designers, etc
 are interested in understanding
consumers in order to be more
effective at their tasks.
2. Societal Perspective:
On the macro or aggregate level
consumers collectively influence
economic and social conditions within
an entire society.
For example
 Strong desire of consumers for private
auto mobile influenced government to
produce latest model cars and
infrastructure in USA.

Applying C.B knowledge.
1: Market-Opportunity Analysis:
There are some groups of people in
a society who have unique needs of
products which are not yet satisfied.
For example.
 Medical machine.
 Exercise machines.
 Ferrari cars.

2:Target-Market Selection:

The process of finding market
opportunities.
For example:
There were labors in different
organizations of USA who were
suffering from bad smell an
organization produced a new soap by
the name of Colgate Palmolive soap
specially for them.
3: Marketing-Mix Determination:

This stage involves developing and
implementing a strategy for
delivering an effective combination
of want-satisfying features to
consumers within target market.
 Product:
 How
should it be packaged?
 What aspects of services are most
important to consumers?
 What types of warranties and
service programs should be
provided.
 What types of accessories and
associated products should be
offered?
 Price:
 Marketers
make decisions about the
price for products or services and
any changes to those prices.
 How much price reduction is
needed to increase the sales during
new-product introductions.
 What discount should be given to
those who pay with cash?
 Place:
 Where
should they be located, and
how many should be there?
 What arrangements are needed to
distribute products to retailers.
 Promotion:
 What
are the most effective means
for gaining consumer’ attention?
 What methods best convey the
intended message?
 How often should a given
advertisement be repeated?
4: CB and De-marketing:
 The
companies some times
discourage the extra use of products
because:
 We are facing of shortage natural
resources such as oil, natural gas and
even water.
 Or some products which are
harmful for human health is de
marketed such as cigarette, alcohol
etc.
C B and Government Decision Making:
Government policies that provide
services to the public.
 Such as health, education, electricity
etc.
 Making laws for protecting
consumers.

Thank You