Consumer Behavior
By Munif Ahmad
Munif Ahmad
Consumer Buying Behavior
 refers to the buying behavior
of final consumers (individuals
& households) who buy goods
and services for personal
consumption.
 Study consumer behavior to
answer:
“How do consumers respond
to marketing efforts the
company might use?”

Munif Ahmad
SIMPLE MODEL FOR CONSUMER
BEHAVIOUR
Motives
Attitudes
Consumer
Purchase
Decision Learning
Perception
Personality
Economic
Munif Ahmad
Family
Business
Needs
Model of Consumer Behavior
Product
Price
Marketing and
Other Stimuli
Economic
Technological
Place
Political
Promotion
Cultural
Buyer’s
Decision
Process
Characteristics
Affecting
Consumer
Behavior
Product Choice
Purchase
Timing
Brand Choice
Buyer’s Response
Purchase
Amount
Dealer Choice
Munif Ahmad
Characteristics Affecting
Consumer Behavior
Culture
Social
Personal
Psychological
Buyer
Munif Ahmad
Factors Affecting Consumer Behavior:
Culture
 Most
basic cause of a person's
wants and behavior.
 Values
 Perceptions
Subculture
Social Class
• Groups of people with shared
value systems based on
common life experiences.
• People within a social class
tend to exhibit similar buying
behavior.
• North Indian Consumers
• Occupation
• African American Consumers
• Income
• Asian American Consumers
• Education
• Mature Consumers
• Wealth
Munif Ahmad
Factors Affecting Consumer Behavior:
Social
Groups
•Membership
•Reference
Family
•Husband, wife, kids
•Influencer, buyer, user
Social Factors
Roles and Status
Munif Ahmad
Factors Affecting Consumer Behavior:
Personal
Personal Influences
Age and Family Life Cycle
Stage
Occupation
Economic Situation
Personality & Self-Concept
Lifestyle Identification
Activities
Opinions
Interests
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VALS 2
Actualizers
Principle Oriented Status Oriented
Abundant Resources
Action Oriented
Fulfilleds
Achievers
Experiencers
Believers
Strivers
Makers
Strugglers
Minimal Resources
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Factors Affecting Consumer Behavior:
Psychological
Motivation
Beliefs and
Attitudes
Psychological
Factors
Learning
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Perception
Maslow’s Hierarchy of Needs
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Munif Ahmad
Types of Buying Decisions
High
Involvement
Low
Involvement
Significant
differences
between
brands
Complex
Buying
Behavior
VarietySeeking
Behavior
Few
differences
between
brands
DissonanceReducing Buying
Behavior
Habitual
Buying
Behavior
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The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-purchase Behavior
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DECISION MAKING PROCESSES
EXTERNAL INFLUENCES
Culture
Subculture
Demographics
Social Status
Reference Groups
Family
Marketing Activities
INTERNAL INFLUENCES
Perception
Learning
Memory
Motives
Personality
Emotions
Attitudes
Experiences and Acquisitions
SITUATIONS
Problem
Recognition
Information
Search
SELF-CONCEPT
and
LIFESTYLE
Desires
Needs
Alternative Evaluation
and Selection
Outlet Selection
and Purchases
Post-purchase
Processes
Experiences and Acquisitions
Munif Ahmad
SITUATIONS
The Buyer Decision Process
Step 1. Need Recognition
Need Recognition
Difference between an actual state and a desired state
Internal Stimuli
External Stimuli
• Hunger
• TV advertising
• Thirst
• Magazine ad
• A person’s normal
needs
• Radio slogan
•Stimuli in the
environment
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The Buyer Decision Process
Step 2. Information Search
Personal Sources
•Family, friends, neighbors
•Most influential source of
information
Commercial Sources
•Advertising, salespeople
•Receives most information
from these sources
Public Sources
Experiential Sources
Munif Ahmad
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
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The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes
of others
Unexpected
situational
factors
Purchase Decision
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The Buyer Decision Process
Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Product’s Perceived
Performance
Dissatisfied
Customer
Satisfied
Customer!
Cognitive Dissonance
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Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
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Early Majority
Innovators
Percentage of Adopters
Adoption of Innovations
Early
Adopters
Late Majority
34%
16%
13.5%
2.5%
Laggards
34%
Time of Adoption
Late
Early
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Influences on the Rate of Adoption
of New Products
Communicability
Relative Advantage
Can results be easily
observed or described
to others?
Is the innovation
superior to existing
products?
Divisibility
Product
Characteristics
Can the innovation
be used on a
trial basis?
Complexity
Is the innovation
difficult to
understand or
use?
Munif Ahmad
Compatibility
Does the innovation
fit the values and
experience of the
target market?
Consumer Behavior Transcript
Consumer Buying Behavior refers to the
buying behavior of final consumers
(individuals Behavior Consumer is a broad
label that refers to any individuals or
households that use goods and services
generated within the economy. A consumer is
a person who uses any product or service. 2.
Consumer Buying & Study consumer
behavior to answer: “How do consumers
respond to marketing efforts the company
might use?” (households) who buy goods and
services for personal consumption.
Munif Ahmad
Transcript
Model of Consumer Product Price
Behavior Stimuli Marketing and
Other Economic Technological Place
Political Promotion Cultural Buyer’s
Characteristics Decision Affecting
Buyer’s Black Box Consumer Process
Behavior Product Choice Purchase
Timing Brand Choice Buyer’s
Response Purchase Dealer Choice
Amount
Munif Ahmad
Transcript
Perceptions Subculture Social Class
Groups of people with shared
People within a social class value systems
based on tend to exhibit similar buying common
life experiences. behavior.
North Indian Consumers
Occupation
African American Consumers • Income • Asian
American Consumers • Education • Mature
Consumers • Wealth Values  Most basic cause
of a person's wants and behavior. 4. Factors
Affecting Consumer Behavior: Culture
Munif Ahmad
Transcript
Factors Affecting Consumer Behavior:
Groups Social Membership • Reference •
Family Husband, wife, kids Social Factors •
• Influencer, buyer, user Roles and Status
5.
Factors Affecting Consumer Behavior:
Personal Personal Influences Age and
Family Life Cycle Occupation Stage
Economic Situation Personality & SelfConcept Lifestyle Identification Activities
Opinions Interests
6.
Munif Ahmad
Transcript
7. Factors Affecting Consumer Behavior:
Psychological Motivation Beliefs and
Psychological Factors Perception Attitudes
Learning
8. Maslow’s Hierarchy of NeedsSelf
Actualization (Self-development ) Esteem
Needs ( self-esteem, status) Social Needs
(sense of belonging, love) Safety Needs
(security, protection) Physiological Needs
(hunger, thirst)
Munif Ahmad
9.Types of Buying Decisions High Low
Involvement Involvement Significant
differences Complex Variety- between Buying
Seeking brands Behavior Behavior Few
differences Dissonance- Habitual between
Reducing Buying Buying brands Behavior
Behavior
10. The Buyer Decision Process Need
Recognition Information Search Evaluation of
Alternatives Purchase Decision Postpurchase
Behavior
Munif Ahmad
Transcript
DECISION MAKING PROCESSES EXTERNAL
INFLUENCES Experiences and Acquisitions
SITUATIONS Culture Problem Subculture
Recognition Demographics Social Status
Information Reference Groups Search Family
Marketing Activities SELF-CONCEPT Alternative
Evaluation Desires and and Selection LIFESTYLE
Needs INTERNAL INFLUENCES Outlet Selection
Perception and Purchases Learning Memory Postpurchase Motives Processes Personality
SITUATIONS Emotions Experiences and Acquisitions
Attitudes
11.
Munif Ahmad
Transcript
Evaluation procedures Total product satisfaction 
Brand beliefs  Degree of importance 6. External
Stimuli  Product attributes 5. Internal Stimuli  It is
affected by 2 (step:3) factors:  Evaluation of
alternatives  Experiential Sources state  Public
Sources actual state and a desired  Commercial
Sources Difference between an  Personal Sources
(step:1)  Need recognition  Information search
(step:2) 12.
Munif Ahmad
Transcript
Product’s Perceived Performance
Desire to buy the most
Expectations of preferred brand
Product’s Performance 
Consumer’s  Purchase Intention 
Post purchase behavior (step:4)
(step:5)  Purchase decision 13.

Munif Ahmad