BUYER

BEHAVIOUR
UNIT - 1

PRESENTED BY

K.BALASRI PRASAD
B.Sc(KU), M.B.A(OU), NET(UGC), (Ph.D)(MGU)
ASSISTANT PROFESSOR IN MANAGEMENT
 Unit-1
Contemporary Dimensions of Consumer Behaviour
CB research process, Motivation and Consumer
behaviour: motives, concepts and theories of Motivation
and Personality and their Marketing implications. The
concept of perception and its impact on Marketing
Strategies.
 Consumer behavior is the actions and decisions that people or households make when they

choose, buy, use, and dispose of a product or service.

 Many psychological, sociological, and cultural elements play a role in how consumers engage

with the market.

 Consumer behaviour towards a product includes everything from the initial decision to buy it, to

how they use it and whether or not they continue to purchase it in the future.
 Major factors that influence consumer behavior:
 Psychological Factors.
 Social Factors.
 Cultural Factors.
 Personal Factors.
 Economic Factors.
A number of factors that can influence consumer behaviour, including
Personal — age, gender, and income
Social — family and friends
Cultural — religion and traditions
Psychological — motivation, perception, learning

Why consumer behaviour is important for businesses?

Understanding consumer behaviour is important for businesses because it can help
them to make better decisions about their products and services.
By understanding why people purchase certain products and how they use them,
businesses can adapt their offerings to better suit the needs and wants of their target
market.
What is Consumer Behavior? (With Real World Examples) | From A Business Professor - YouTube
 Consumer Behaviour research process
Consumer Research:
A part of market research in which inclination, motivation and purchase behavior of
the targeted customers are identified.
Consumer research helps businesses or organizations understand customer psychology
and create detailed purchasing behavior profiles.
It uses research techniques to provide systematic information about what customers
need.
Using this information, brands can make changes in their products and services,
making them more customer-centric thereby increasing customer satisfaction.
Consumer research is conducted to improve brand equity.
A brand needs to know what consumers think when buying a product or service offered
by a brand.
Every good business idea needs efficient consumer research for it to be successful.
Consumer insights are essential to determine brand positioning among consumers.
Consumer Research Process:
The process of consumer research started as an extension of
the process of market research.
The consumer research process can be broken down into the
following steps:
1.Develop research objectives: The first step to clearly define
the research objective, the purpose of research, why is the
research being conducted, to understand clear statement of
purpose can help emphasize the purpose.
2.Collect Secondary data: Collect secondary data first, it helps
in understanding if research has been conducted earlier and if
there are any pieces of evidence related to the subject matter
that can be used by an organization to make informed decisions
regarding consumers.
3. Primary Research: Organizations or businesses collect their own
data or employ a third party to collect data on their behalf.
This research makes use of various data collection methods (qualitative
and quantitative) that helps researchers collect data first hand.
4. Collect and analyze data: Data is collected, analyzed and inference
is drawn to understand consumer behavior and purchase pattern.
5. Prepare report: A report is prepared for all the findings by analyzing
data collected so that organizations are able to make informed decisions
and think of all probabilities related to consumer behavior.
Organizations can become customer-centric and manufacture products
or render services that will help them achieve excellent customer
satisfaction.
 Motivation and Consumer behaviour
Motivation plays a crucial role in influencing consumer behavior. Understanding the motivations that drive
individuals to make purchasing decisions is essential for marketers and businesses. Here are some key
points regarding the relationship between motivation and consumer behavior:

Definition of Motivation:
Motivation refers to the internal and external factors that drive individuals to take certain actions. In the
context of consumer behavior, motivation is the internal state that energizes, directs, and sustains behavior
toward the satisfaction of needs and wants.
Maslow's Hierarchy of Needs:
Maslow's Hierarchy of Needs is a psychological theory that categorizes human needs into a hierarchy,
ranging from basic physiological needs to higher-level needs such as self-actualization. Marketers often
consider these needs when developing strategies to appeal to consumers at different levels of the hierarchy.
Types of Motivation:
• Motivation can be classified into intrinsic and extrinsic motivation.

• Intrinsic motivation is driven by internal factors such as personal satisfaction, while extrinsic motivation is influenced by

external rewards or consequences. Understanding these motivations helps in tailoring marketing strategies.

Motivational Theories in Consumer Behavior:

• Various psychological theories explain how motivation influences consumer behavior.

• For example, the Expectancy-Value Model suggests that consumers evaluate the expected outcomes of their choices and make

decisions based on the perceived value of those outcomes.

Consumer Needs and Wants:

• Motivation is closely tied to identifying and satisfying consumer needs and wants.

• Successful marketing strategies often tap into these needs and wants to create products or services that fulfill specific desires or

solve problems.

Emotional and Rational Motivations:

• Consumers are often motivated by a combination of emotional and rational factors. Emotional motivations, such as the desire for

status or belonging, can be just as influential as rational considerations like price and quality.
Brand and Product Associations:
• Consumers may be motivated by the associations they have with a brand or product. Brand image, values,
and perceived quality can serve as motivators that influence purchasing decisions.
Cultural and Social Influences:
• Motivation is also shaped by cultural and social factors. Social norms, peer influence, and cultural values
can drive individuals to make certain choices in line with societal expectations.
Motivational Appeals in Advertising:
• Advertising often uses motivational appeals to influence consumer behavior. These appeals may target
specific needs or desires, employing themes like fear, humor, nostalgia, or social acceptance to motivate
action.
Individual Differences:
• Different individuals are motivated by different factors. Personal characteristics, lifestyle, and personality
traits can influence the motivational drivers behind consumer choices.
Impulse Buying and Instant Gratification:
• Understanding the motivation behind impulse buying and the desire for instant
gratification is important for marketers. Limited-time offers, discounts, and other
strategies can tap into these motivations.
Post-Purchase Motivation:
• Motivation doesn't end with the purchase. Post-purchase motivations, such as the
desire for positive feedback or a sense of accomplishment, can impact brand loyalty
and repeat business.
• By understanding the various motivations that drive consumer behavior, marketers
can tailor their strategies to resonate with target audiences and create compelling
value propositions that align with consumers' needs and desires.
 Motives
Biological Motives:
• Definition: Motives related to the physiological needs for survival, such as hunger, thirst, and sleep.

• Example: The motivation to eat when hungry or drink when thirsty.

Psychological Motives:
• Definition: Motives that stem from psychological needs, such as the need for achievement, affiliation, or power.

• Example: The motivation to excel in one's career or to form social connections.

Sociocultural Motives:
• Definition: Motives influenced by social and cultural factors, including the desire for approval, recognition, or belonging.

• Example: The motivation to conform to societal norms or to gain acceptance within a social group.

Emotional Motives:
• Definition: Motives driven by emotions, such as the need for happiness, excitement, or avoidance of negative emotions.

• Example: The motivation to seek entertainment for enjoyment or to avoid situations causing stress.

Cognitive Motives:

Definition: Motives associated with the desire for knowledge, curiosity, and the need to understand one's environment.

Example: The motivation to learn new skills or acquire information about a particular subject.
 Concepts of Motivation
Drive-Reduction Theory:
• Concept: Individuals are motivated to reduce physiological needs (drives) to achieve a state of balance and eliminate discomfort.

• Example: Drinking water to reduce the drive of thirst.

Incentive Theory:
• Concept: Motivation is influenced by external stimuli or rewards. Individuals are driven by the anticipation of positive outcomes.

• Example: Working hard at a job to earn a performance bonus.

Hierarchy of Needs (Maslow):

• Concept: Maslow's hierarchy categorizes human needs into a pyramid, ranging from basic physiological needs to higher-level psychological and self-

actualization needs.
• Example: Seeking food (physiological need) before pursuing self-esteem or self-actualization.

Expectancy-Value Model:
• Concept: Consumer behavior is driven by the expectation of achieving a goal and the subjective value placed on that goal.

• Example: Choosing a particular product based on the expected benefits and personal preferences.

Self-Determination Theory:

Concept: People are motivated by the innate psychological needs for autonomy, competence, and relatedness.

Example: Engaging in activities that provide a sense of personal accomplishment and connection with others.
 Theories of Motivation
Drive Theory:
• Theory: The concept that behavior is motivated by the desire to satisfy physiological needs and eliminate internal

tension or discomfort (drives).

• Example: Eating to reduce hunger.

Cognitive Dissonance Theory:

• Theory: Individuals are motivated to reduce cognitive dissonance, or the discomfort that arises from conflicting

beliefs or attitudes.
• Example: Changing one's attitude to align with a decision already made.

Two-Factor Theory (Herzberg):

• Theory: Herzberg proposed that job satisfaction and dissatisfaction are influenced by different factors. Hygiene

factors prevent dissatisfaction, while motivators contribute to satisfaction.

• Example: Salary and working conditions as hygiene factors, and achievement and recognition as motivators.
Arousal Theory:
• Theory: Individuals seek an optimal level of arousal or stimulation, and their behavior is motivated
by the desire to maintain this optimal level.
• Example: Seeking exciting activities or experiences to avoid boredom.

Goal-Setting Theory:
• Theory: Setting specific and challenging goals can lead to higher performance and motivation,
provided there is commitment and feedback.
• Example: Employees working towards achieving specific performance targets.
• Understanding these motives, concepts, and theories of motivation provides a foundation for
comprehending human behavior in various contexts, including consumer choices, workplace
dynamics, and personal development.
 Concepts of Personality
1.Trait Theory:
Concept: Personality is made up of a set of enduring traits or characteristics that predispose individuals to
behave in certain ways.
Example: The Big Five personality traits - openness, conscientiousness, extroversion, agreeableness, and
neuroticism.

2.Psychoanalytic Theory:
Concept: Developed by Freud, this theory suggests that personality is shaped by unconscious processes,
conflicts, and early childhood experiences.
Example: The division of the mind into the id, ego, and superego influencing behavior.

3.Humanistic Theory:
Concept: Focuses on the inherent goodness of individuals and their striving for self-actualization and
personal growth.
Example: Maslow's hierarchy of needs, emphasizing the pursuit of one's full potential.
4. Social-Cognitive Theory:
Concept: Personality is developed through a reciprocal interaction between personal factors,
behavior, and the environment.
Example: Observational learning and modeling behavior based on observed social interactions.

5. Behavioral Genetics:
Concept: Examines the role of genetics in shaping personality traits and behaviors.
Example: Identifying hereditary factors contributing to traits like introversion or extroversion.

6. Cultural Influence on Personality:

Concept: Acknowledges the impact of culture on the development and expression of
personality traits.
Example: Collectivist cultures emphasizing group harmony versus individualistic cultures
promoting personal achievement.
 Theories of Personality
1.Freud's Psychoanalytic Theory:
Theory: Developed by Sigmund Freud, this theory suggests that personality is structured by three
components (id, ego, superego) and influenced by unconscious desires and conflicts.

2.Trait Theory (Gordon Allport):

Theory: Emphasizes the importance of individual traits in determining personality. Allport
identified cardinal, central, and secondary traits.
Example: Cardinal trait - a dominant personality trait shaping a person's behavior across various
situations.

3.Social Cognitive Theory (Albert Bandura):

Theory: Focuses on the role of observational learning, self-efficacy, and reciprocal determinism in
shaping personality.
Example: Learning aggressive behaviors through observing and imitating role models.
4. Humanistic Theory (Abraham Maslow and Carl Rogers):
Theory: Maslow's hierarchy of needs and Roger's person-centered approach highlight the
importance of self-actualization and positive regard in personality development.
Example: Striving for personal growth and fulfilling one's potential.

5. Behaviorism (B.F. Skinner):

Theory: Behavior is shaped by environmental stimuli, reinforcement, and punishment.
Personality is a collection of learned behaviors.
Example: Rewards and punishments influencing the likelihood of repeating or avoiding certain
behaviors.

6. Cognitive-Behavioral Theory:
Theory: Integrates cognitive and behavioral approaches, emphasizing the role of thoughts and
beliefs in shaping personality and behavior.
Example: Changing negative thought patterns to influence behavior and emotions.
7. Biological (Eysenck's Biological Theory):
Theory: Suggests that personality is influenced by genetic factors, with three major
dimensions: extraversion/introversion, neuroticism/emotional stability, and
psychoticism.
Example: Genetic predisposition contributing to differences in emotional stability.

Understanding these concepts and theories provides insights into the diverse
perspectives on personality and helps explain individual differences, behavior
patterns, and the factors influencing the development of unique traits.
 Marketing Implications of Motivation
1. Tailored Messaging:
Marketers can tailor their messages to align with the motivational factors that drive consumer behavior.
Whether emphasizing functional benefits, emotional satisfaction, or social recognition, understanding
motivation allows for more targeted and resonant communication.
2. Promotion Strategies:
Promotional activities can be designed to tap into specific motivational triggers. Limited-time offers,
discounts, and loyalty programs can create a sense of urgency and reward, appealing to consumers'
motivation for economic gains or savings.
3. Product Positioning:
Aligning product features and benefits with consumer motivations helps in effective product positioning.
For example, products that fulfill the need for convenience or time-saving can be positioned accordingly.
4. Creating Desire:
Understanding consumer motivations allows marketers to create desire for a product or service.
By showcasing how a product satisfies a particular need or want, marketers can stimulate interest and drive consumer
action.

5. Social Influences:
Social motivations, such as the desire for belonging and social approval, can be leveraged in social media and influencer
marketing.
Campaigns that emphasize community, sharing, and social endorsement can be particularly effective.

6. Brand Storytelling:
Crafting brand stories that resonate with consumers' personal motivations can enhance brand connection.
Consumers are more likely to engage with brands that align with their values and aspirations.

7. Customization and Personalization:

Motivational factors can vary among individuals.
Offering customized products, services, or marketing messages based on specific motivational profiles enhances
personalization, making the brand more appealing to diverse consumer needs.
 Marketing Implications of Personality
1.Target Audience Segmentation:
Personality traits can be used to segment the target audience.
Marketers can design campaigns that resonate with specific personality types, ensuring that the brand
message aligns with the preferences and characteristics of the target market.

2.Brand Image and Personality Alignment:

Brands can establish and maintain a specific personality that aligns with their target audience.
Consistent brand personality creates a distinct identity and fosters a sense of familiarity and trust among
consumers.

3.Product Design and Packaging:

The design and packaging of products can be influenced by the target audience's personality traits.
For example, minimalist packaging may appeal to individuals with a preference for simplicity, while
vibrant designs may attract those with more extroverted personalities.
4. Communication Style:
1. Tailoring communication styles in advertising and promotional materials to match the
personality traits of the target audience enhances the effectiveness of marketing messages. For
example, a brand targeting adventurous personalities may use bold and exciting language.

5. Influencer Partnerships:
2. Collaborating with influencers whose personalities align with the brand can enhance
authenticity and credibility. Consumers are more likely to trust and engage with influencers
who share similar personality traits.

6. User Experience Design:

3. For online platforms and apps, the user experience can be designed to match the preferences of
different personality types. This includes website aesthetics, navigation, and the overall tone of
communication.
7. Emotional Branding:
Creating emotional connections with consumers is often tied to appealing to specific
personality traits.
Brands can evoke emotions that resonate with the target audience, fostering a deeper and
more enduring relationship.

By incorporating insights into motivation and personality into marketing

strategies, businesses can create more compelling and relevant campaigns that
resonate with their audience, drive engagement, and ultimately lead to increased
brand loyalty and customer satisfaction.
 The concept of perception and its impact on Marketing Strategies
 Perception plays a crucial role in marketing as it directly influences how consumers interpret and respond to

marketing messages, products, and brands.

 Perception refers to the way individuals interpret information from their environment through their senses, such

as sight, sound, touch, taste, and smell.

 In the context of marketing, understanding and managing consumer perception is essential for creating effective

strategies.
 Here are some key points on how perception impacts marketing strategies:

1. Brand Image and Identity:

 Perception shapes the way consumers view a brand.
 The image and identity of a brand are not just based on its actual features or attributes but also on how

consumers perceive them.

 Marketers strive to create positive perceptions by emphasizing desirable qualities, values, and emotions

associated with the brand.

2. Product Positioning:
 Perception influences how consumers position products in their minds.
 Marketers need to carefully craft the positioning of their products to align with the desired perceptions.
 For example, a product can be positioned as a high-end luxury item or an affordable everyday option based on the perceived
value and quality.
3. Advertising and Messaging:
 Perception heavily influences the effectiveness of advertising and messaging.
 Marketers need to consider how their target audience perceives different types of messages and adjust their communication
strategies accordingly.
 Visual elements, language, and tone can all impact how a message is perceived, and marketers must align these elements with
the desired brand image.
4. Consumer Behavior:
 Consumer behavior is influenced by how individuals perceive products and brands.
 Understanding these perceptions helps marketers anticipate and influence buying decisions.
 Marketers may use psychological principles to create positive associations, trigger emotions, and appeal to consumers' senses.
5. Cultural and Social Influences:
1. Cultural and social factors shape perception, impacting how individuals view products and brands. Marketers need to be aware of
cultural nuances and social trends to tailor their strategies accordingly.
2. Social media, for example, can significantly influence perception, as consumers often rely on reviews, recommendations, and social
validation in their decision-making process.

6. Customer Experience:
3. The overall customer experience contributes to perception. Positive experiences can enhance the perception of a brand, while
negative experiences can lead to a poor perception.
4. Marketers must focus not only on promoting products but also on delivering consistent, positive experiences across all touchpoints.

7. Reputation Management:
5. Perception directly affects a company's reputation. Negative perceptions, whether accurate or not, can harm a brand's image.
Marketers need to actively manage and address any issues that could impact perception negatively.

• In summary, perception is a fundamental aspect of consumer behavior, and marketers must understand and

influence it to develop effective marketing strategies. By aligning marketing efforts with desired perceptions,
companies can build strong brands, connect with their target audience, and drive positive consumer experiences.