Introduction of Consumer Behaviour: Understanding the Mind of the Consumer
In contemporary business practice, success is dependent not only on effective competitors and producing quality products and services, but on understanding buyers as well. What is the rationale of an individual for selecting one brand over the alternative and for becoming brand loyal? What are the effects of psychological, social, and cultural factors on the buying decisions of the individual?
The answers are outlined in the science of consumer behavior, the study of how individuals, groups and organizations choose, use, and dispose of products and services for their needs and wants.
For learners in marketing and management, mastery of consumer behavior is foundational to market literacy. It is of primary importance to aid firms in product design, advertisement formulation, and customer relationship management. It is, therefore, the focus of the current discussion to outline:
- The nature of consumer behaviour,
- The characteristics of consumer behaviour, and
- The Nicosia Model of Consumer Behaviour,
along with a deep look at the factors affecting consumer behaviour that shape every purchase decision.
What is Consumer Behaviour?
Consumer Behaviour is defined as the study of the decisions made by an individual regarding the purchase of a commodity such as what, why, when, and how often a commodity or service is purchased. It is influenced by a range of other available fields including psychology, sociology, and the science of cultures.
By definition, Consumer Behaviour is the study of a consumer’s mental process involved in executing a purchase. As an example, the consideration of a specific telephone brand is influenced not only by the price, but also by the phone’s design, peer pressure, the advert, and trust in the brand.
Nature of Consumer Behaviour
The complexity and multiplicity of consumer decision actions and behaviours is the defining characteristic of the nature of consumer behaviour. This should relate to the payment of a price, regardless of the decision size. Each decision requires an arrangement of mental and emotional processes.
It is Complex and Multi-dimensional
There are many and diverse emotional and psychological influences described under the Culture and Socialisation framework. For instance, price may not matter to a consumer, while their desire for a positive social impression may be.
It Involves both Rational and Emotional Factors
Consumers act irrationally. For example, it is logical to purchase a car for a specific purpose, however a consumer may purchase a car for emotional reasons like prestige.
It Differs from Individual to Individual
Every consumer is unique. Different combinations of age, income, education, lifestyle, and personal values creates different profiles with different patterns for each consumer.
It Varies with Situations and over Time
With technological, social, and other predominant trends, consumer behavior and preferences also change. A case in point is the increase of online shopping during and after the pandemic, which was seen as more favorable and accessible.
It Is a Continuing Process
Buying behavior is not the one sole act of purchasing a product. Consumer behavior is a more complex process of continuous flow from need recognition, identification, and post-purchase evaluation.
To summarize the unique and complex consumer behavior process from different perspectives, to understand customers, is not to guess as many might think. Rather, it entails observing, analyzing, and mirroring shifting customer demands.
Characteristics of Consumer Behaviour
The characteristics of consumer behaviour help marketers understand the patterns and tendencies that consumers display during the buying process.
Consumer Behavior is Directed to Achieve a Goal
Every potential purchase is done with a certain need or desire in mind. For example, the desire to buy a laptop may be fueled by the need to study online or increase general work efficiency.
It Engages Different Roles
Multiple individuals may be involved in one singular purchase, but each may take different roles in the buying process. For example, one may be the buyer, another the influencer, and another the consumer or user of the product.
When parents buy a gift for a family member, they may buy a toy, but the child is the actual user.
The Influencing Factors for Consumer Behaviour Are Internal and External.
Social class, culture, and reference groups are included in the external factors.
It Will Always Be Dynamic.
With lifestyle and technology changes and income and market trend fluctuations, consumer preferences will change. Brands should change to stay current.
Consumers Are Social and Individual Beings.
Social networks, family, and friends also play a large role in the buying process.
Marketing Influences Consumer Behaviour.
Certain packaging, pricing, and advertising will lead a consumer to the purchase of a product.
The Marketing Strategies A Business Uses Will Connect With The Consumer Either Emotionally Or Logically.
Understanding the reasons for consumer behaviour will allow a business to formulate better marketing strategies which help in creating an emotional or logical connection
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Factors Affecting Consumer Behaviour
The several forces which shape consumer behaviour work together and often in a hidden manner. Consumer behaviour is influenced by:
Psychological Factors.
These factors stem from the individual and include motivation, which is a driving force for a person to buy. For instance, the need for safety may motivate someone to buy insurance.
Perception: The process through which consumers understand and evaluate information about a product.
Learning: Prior experiences and feedback influence future purchasing decisions.
Beliefs and Attitudes: An individual’s decison is influenced by the values and feelings that they have had for a long time towards a particular brand.
Personal Factors
Each individual is unique and these factors can be estimated based on:
Age and Life Cycle Stage: The purchasing behaviour of a teenager is different compared to that of a middle-aged parent.
Occupation: A construction worker will choose clothing that is different than a corporate executive, who might prefer formal clothing.
Economic Status: A consumer’s purchasing power, and to a lesser extent, their aspirations are heavily correlated to their income and overall financial power.
Lifestyle: The things people do, their interests, and especially, their opinions, will influence their choices in food, fashion, and a host of other things.
Social Factors
As social creatures, people are influenced in their buying decisions by:
Family: The parent-child relationship is possibly the most influential in a consumer’s family. Parents establish brand preferences that children follow.
Reference Groups: Friends, peers, and colleagues have a major say in what is deemed ‘trendy’.
Social Class: Distinct purchasing patterns can be observed in individuals belonging to different social classes.
Cultural Factors
Culture shapes the most fundamental and deeply rooted values, beliefs, and traditions that govern a person’s life.
Culture shapes fundamental values and preferences. Consider the example of cultural festivals which encourage seasonal purchases in India.
Subculture. Variations within a culture can be created by regional, religious, or linguistic groups.
Social Norms. Expectations of society can also influence the purchases people make or refrain from.
All these factors interrelate and individually contribute to a web of influences that marketers decipher to appropriately hone in on potential customers.
Nicosia Model of Consumer Behaviour
Francesco Nicosia’s Consumer Behaviour Model is one of the earliest and most systematic models created in 1966. This model perceives the buying process and the subsequent decisions as a cycle of information and communication exchange between the firm and the consumer.
This model has four distinct fields that explains how a consumer progresses from unawareness of a product to the point of purchase.
Field 1: The Firm’s Attributes and Consumer Attitudes
This first stage addresses the attitude generated by the company’s marketing communications whether it be advertising, promotion or any other external influence to the consumer. Consider, for instance, advertisements for new smartphones. Such ads influence the potential customers opinions on the features and pricing of the product.
Field 2: The Search and Evaluation Process
During this phase, the consumer seeks additional data, compares different choices, and assesses the various options based on their requirements and anticipations. This involves analyzing reviews, attending retail outlets, or evaluating prices on the internet.
Field 3: The Act of Purchase
When the consumer reaches a decision, the actual purchase occurs. The store environment, product availability, and the behavior of the sales personnel may all have a bearing on the decision at this stage.
Field 4: Feedback or Post-Purchase BehaviourThe consumer assesses their degree of satisfaction after a purchase. Satisfaction leads to loyalty, while the absence of satisfaction tends to complaints and negative publicity.
In the Nicosia Model, all consumer behavior involves learning. Each acquisition modifies an attitude or decision, enabling a progression and integration of the consumer’s experience with the firm’s marketing.
Practical Importance for Marketers and Students
Predicting future purchase patterns, product enhancement, and audience communication become easier with this knowledge. Students gain an understanding of the real-life impact of decision-centric marketing on behaviors.
Taking Coca-Cola as an example, the company continuously explores consumer tastes and responds to requests to launch potential new products and revise labels. In the same way, the consumer data analysis done by Amazon and personalized recommendations showcase the application of consumer behaviour studies.
Summary Table
| Concept | Explanation | Example |
|---|---|---|
| Nature of Consumer Behaviour | Study of how and why consumers buy | A person choosing a mobile phone based on need and brand image |
| Characteristics | Features showing how consumers act and think | Dynamic, goal-oriented, influenced by social and psychological factors |
| Factors Affecting Behaviour | Psychological, personal, social, and cultural influences | Motivation, lifestyle, culture, and peer influence |
| Nicosia Model | Explains decision-making process through communication and feedback | From advertisement to post-purchase satisfaction |
FAQs
What is meant by consumer behaviour?
It is the study of how and why individuals/ groups select, buy and use products/services to satisfy a need or covers the aspects of services.
What are the main factors affecting consumer behaviour?
They are psychological, personal, social, and cultural.
What is the nature of consumer behaviour?
It is complex, dynamic, and varies from person to person, involving both rational and emotional decisions.
What are the characteristics of consumer behaviour?
Goal oriented, subject to marketing influence, involves different functions, and changes over time and situations.
What is the Nicosia Model of Consumer Behaviour?
It shows the steps consumers take, starting with the marketing message, followed by evaluation, decision to purchase, and then feedback after the purchase.
Conclusion
The behaviour of consumers is the key to effective marketing. It enables the company to shift paradigms from selling to the market to developing meaningful connections with clientele. Comprehending marketing with the essence of consumer behaviour, its characteristics, and models like the Nicosia Model, enables the marketer to view the market from the consumer’s standpoint.
👨💼 Author: BBAProject Editorial Team
✍️ The BBAProject Editorial Team comprises business graduates and educators dedicated to creating practical, syllabus-based learning resources for BBA students.
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