Consumer Behavior

Consumer Behavior is the study of how individuals, groups, and organizations make decisions regarding the purchase, use, and disposal of goods and services. It involves analyzing the psychological, social, and economic factors that influence consumer decisions, as well as understanding the needs and preferences that drive these choices. For BBA students, understanding consumer behavior is essential as it equips them with the tools to analyze market trends, develop effective marketing strategies, and create value for customers.

Key Points of Consumer Behavior

1. Definition:

   • Consumer behavior examines the processes consumers go through before, during, and after making a purchase decision.

2. Influencing Factors:

   • Cultural Factors: Values, traditions, and customs.
   • Social Factors: Family, friends, and social groups.
   • Personal Factors: Age, income, lifestyle, and personality.
   • Psychological Factors: Motivation, perception, learning, and attitudes.

3. The Consumer Decision-Making Process:

   • Problem Recognition: Identifying a need or problem.
   • Information Search: Gathering information about products or services.
   • Evaluation of Alternatives: Comparing options to find the best fit.
   • Purchase Decision: Making the final buying choice.
   • Post-Purchase Behavior: Evaluating satisfaction and future loyalty.

4. Types of Buying Decisions:

   • Routine Purchases: Low involvement, frequent buys (e.g., groceries).
   • Limited Decision-Making: Some research and comparison (e.g., clothing).
   • Extended Decision-Making: High involvement, significant research (e.g., cars).

5. Market Segmentation:

   • Understanding consumer behavior helps businesses segment markets based on demographics, psychographics, geography, and behavior.

Features of Consumer Behavior

1. Dynamic and Evolving:

   • Consumer behavior changes with time, trends, technology, and societal shifts.

2. Interdisciplinary:

   • Combines concepts from psychology, sociology, economics, and anthropology.

3. Influenced by Perception:

   • Consumers’ perceptions of a product or brand often determine their purchase decisions.

4. Driven by Needs and Wants:

   • Maslow’s hierarchy of needs often explains how consumers prioritize purchases.

5. Customer-Centric:

   • Focuses on creating value and enhancing customer satisfaction to foster loyalty.