What is Consumer Behavior?
Javier Ramirez
Liberty University
BUSI 520: Strategic Marketing Management
Muriel Wilson
January 9, 2022
What is Consumer Behavior?
Consumer behavior is the study of consumers’ action during searching for, purchasing,
using, evaluating and disposing of products and services they expect will satisfy their need.
It helps marketers in understanding consumer decision-making process.
Consumer behaviour can be defined as “activities people undertake when obtaining,
consuming, and disposing of products and services” is provided and detailed.
Obtaining “activities leading up to and including the purchase or receipt of a
product”.
Consuming “how, where, when, and under what circumstances consumers use
products”.
Disposing “how consumers get rid of products and packaging”.
Consumer Behaviour Definition
Consumer behavior is the process whereby individuals decide what, when, where, how
and from whom to purchase goods and services.
Walters and Paul
Consumer behaviour as “The dynamic interaction of cognition, behaviour and
environmental events by which human beings conduct the exchange aspect of their lives.
American Marketing Association (AMA)
Consumer behaviour refers to the actions and decision processes of people who
purchase goods and services for personal consumption.
Peter D. Bennett, ed. Dictionary of Marketing Terms, 2nd ed. 1995
Consumer behaviour refers to “the mental and emotional processes and the observable
behaviour of consumers during searching for, purchasing and post consumption of a product
or service.
James F. Engel, Roger D. Blackwell and Paul W. Miniard, “Consumer Behaviour” (1990)
Consumer Behaviour Meaning
The “consumer” more generally refers to anyone engaging in any of the activities
(evaluating, acquiring, using or disposing of goods and services) used in the definition of
consumer behaviour.
Consumer behaviour is a decision process and physical activity individuals engage in
when evaluating, acquiring, using or disposing of goods and services.
Types of Buying Decision Behavior
Different consumers follow different steps in making their choice of products and
services. There is a substantial degree of variation in the choice processes depending upon
two key factors, namely the level of involvement and degree of the perceived
difference between different alternatives in the market.
There are basically 4 types of buying decision behavior which is discussed below:
1. Dissonance Reducing Buying Behaviour
2. Complex Buying Behaviour
3. Variety Seeking Buying Behaviour
4. Habitual buying Behaviour
5.
Dissonance Reducing Buying Behaviour
6. Customer involvement in the purchase activity is high and customers cannot find a
substantial differentiation among the alternatives.
7. The consumer is highly involved and sees little difference among brand alternatives.
The consumer is highly involved and sees little difference among brand alternatives.
8. Complex Buying Behaviour
9. Consumer is highly involved but he finds a substantial difference among the available
brands.
10. In this case, the buyer develops beliefs about the product or service, then he
develops a set of attitude towards the product and finally, he makes a deliberate choice.
This is a case when products are expensive, bought infrequently, risky and highly self-
expressive.
11. Variety Seeking Buying Behaviour
12. This kind of behaviour is shown in some situations where the consumer
shows low involvement behaviour but there is a significant brand difference.
13. Consumers show a high level of brand switching behaviour.
14. Habitual buying Behaviour
15. This kind of behaviour is shown in some situations where the consumer
shows low involvement behaviour but there is no/few significant brand difference.
Stage of Problem Recognition
The recognition of a need is likely to occur when a consumer is faced with a ‘problem’.
A buying process starts when a consumer recognises that there is a substantial discrepancy
between his current state of satisfaction and expectations in a consumption situation.
Stage of Information Search
After need arousal, the behaviour of the consumer leads towards a collection of
available information about various stimuli i.e. products and services in this case from
various sources (personal, public, commercial, experiential) for further processing and
decision-making.
Stage of Alternative Evaluation
Once interest in a product(s) is aroused, a consumer enters the subsequent stage of
evaluation of alternatives.
When evaluating potential alternatives, consumers tend to use two types of
information:
1. a list of brands (or models) from which they plan to make their selection (the evoked
set)
2. the criteria they will use to evaluate each brand (or model).
Cognitive evaluation: When the consumer uses objective choice criteria.
Affective evaluation: Using emotional reasons for evaluating the alternatives.
Stage of Purchase Decision
Finally, the consumer arrives at a purchase decision. Purchase decisions can be one of
the three viz. no buying, buying later and buy now.
No buying takes the consumer to the problem recognition stage. A postponement of
buying can be due to a lesser motivation or evolving personal and economic situation. If
positive attitudes are formed towards the decided alternative, the consumer will make a
purchase.
There are three more important considerations in taking the buying decision:
Attitude of others such as wife, relatives and friends.
Anticipated situational factors such as expected family income, expected total cost of
the product and the expected benefits from the product.
Unanticipated situational factors, like accidents, illness etc.
Stage of Post Purchase Behaviour
Post-purchase behaviour refers to the behaviour of a consumer after his commitment
to a product has been made.
So post-purchase behaviour leads to three situations, namely customer is satisfied;
customer is delighted and the customer is dissatisfied.
Cognitive dissonance: Buyer discomfort caused by postpurchase conflict.
Participant in Buying Process
Consumer behaviour is influenced not only by consumer personali- ties and
motivations, but also by the various participant in the buying process. Consumer decision
making is an intricate process.
To understand how consumers actually take the decision to buy a product, it is
important for marketers to identify who makes and has input in the decision-making
process. In a buying process there are various participants involved, their roles are explained
as follows:
Initiator
Influencer
Gatekeeper
Decider
Buyer
Users
Initiator
Initiator is the individual who determines that some need or want is not being fulfilled
and hence initiates a purchase. An initiator is a person who first identifies an existing
problem or need that can be resolved by making a purchase.
For example, in case of a family, a housewife can be the initiator. As housewife knows
what is required in the home.
Influencer
Influencer is a person who influences the buying decision, actual purchase or the use of
product or service. Influencer can be a technical expert, consultant or anyone who provides
input for the buying decision. For example, a salesperson might influence you to buy a
product.
Gatekeeper
A gatekeeper is the one who Influences the processing of information. The gatekeeper
may possess a greater expertise in acquiring and evaluating the information.
For example, in a family a homemaker may be the gatekeeper who will disseminate
information.
Decider
A decider may not have the formal authority to decide upon a purchase decision, but
has sufficient weight in the buying decision process of products or services. A decider is the
one who vets what to buy, how to buy, when to buy and from where to buy.
For example, in family generally it is the male head of the family who gives assent to
buy.
Buyer
A buyer is the one who is involved in the physical activity of making a purchase and
conducts the final transaction or exchange. At the time of purchasing the buyer can
negotiate on the price.
For example, housewife may be the buyer who actually buys all the foodstuffs, rations
and toiletries of the family.
Users
They are the ones who are reaping the benefit of the product/service acquired. For
instance, the family members who use or consume a particular product or service.
7 O’s Framework of Consumer Behaviour
A framework is developed to understand consumer behaviour by addressing various
issues involved in consumer behaviour. This framework is popularly known as 7 O’s
Framework and is used for a basic understanding of consumer behaviour
