Consumer Behavior

“Consumer Behavior is the study of when, why, how and where people do or do not
buy a product. It basically depends on the psychology of the consumer. In the study of Consumer
Behavior main focus is the customer satisfaction because customer is the only person with
whose presence businesses actually exists.”
The study of consumer behavior explains as to:

 Why and why not a consumer buys a product?

 When a consumer buys a product?
 How a consumer buys a product?

Consumer behavior model

There are two models of CB is:

 COGNITIVE CONSUMER BEHAVIOUR MODEL

 BAHAVIRAL CONSUMER BEHAVIOR MODEL

Cognitive Consumer behavior model

Stimulas Blackbox Responce

Importance/Need of study of consumer behaviour

 To make better strategies for increasing profits.
 To take into consideration customer’s health, hygiene & fitness.
 To know the buying decisions and how consumer make consumption.
 Consistent change in Consumer’s tastes or preferences.
 Consumer behavior study is necessary to make pricing policies.
 To avoid future market failures.
Role of cognitive model in consumer behavior practice

Theory of
reasoned action
Prescriptive
Theory of
Cognitive
planned behavior
consumer
behavior model
Consumer design
Analytic
model

The cognitive consumer behaviour models can be broken down into two sections, analytical
and prescriptive. Prescriptive models can be used to provide a guideline to help structure the behaviour
and determine how consumer decisions can be predicted by the outcome of factors such as attitude and
beliefs. Analytical models can be used to explain the behaviour of consumers and shows the relationship
between the influencing factors and the decision made as they tend to follow the traditional five step
classification of buyer behaviour:

 Analytical models are used to identify a huge range of factors and assess how these affect the
decision made by the consumer, because of the scope available these models are usually referred
to as the “grand models.”
 By analysing the two analytical models, I think that the advantages are that the processes are
clear and they allow plenty of scope to identify a wide range of factors that can influence
purchasing decisions.
 The consumer decision model also has a feedback option which could be useful for future
searches. The Buyer Behaviour model shows five various outputs which seems to be a more
detailed version of the response output shown in the Cognitive approach model, I believe this
function is helpful as it shows the different types of response which can lead to the purchase
rather than just stating there is an output.

Behaviorist Learning Theory

“Behavioural learning theory outlines a model of how people learn from their experience, much of our
behavioural responses being conditioned by events from our background and early experience.”

• Main tenet is that all behavior is caused by a corresponding external stimulus.

• Behavior is determined by the environment through either association or reinforcement.

 Classical conditioning (also known as Pavlovian
conditioning) is learning through association and was
discovered by Pavlov, a Russian physiologist. In simple
terms two stimuli are linked together to produce a new
learned response in a person or animal.

Operant conditioning is a method of learning that occurs

through rewards and punishments for behavior. Through
operant conditioning, an individual makes an association
between a particular behavior and a consequence

Role of behavioural model in consumer behavior practice

 This theory is very important and applies to many common situations in the context of
consumer behavior. It suggests that consumers learn by means of trial-and-error method
in which some purchase behaviors result in a more favorable outcome.
 Marketers effectively utilize the concepts of consumer instrumental learning when they
provide positive reinforcement by assuring customer instrumental learning when they
provide positive reinforcement by assuring customer satisfaction with the product, the
service, and the total buying experience.
 Relationship marketing develops a closed personalized relationship with customers-is
another form of non-product reinforcement. Knowing that she will be advised of a
forthcoming sale that selected merchandise will be advised of a forthcoming sale, or that
selected merchandise will be set aside for her next visit cements the loyalty that a
consumer may have for a retail store.
 The objective of all marketing efforts should be to maximize customer satisfaction.
Marketers must be certain to provide the best possible product for the money and to
avoid raising consumer expectations for product (or services) performance beyond what
the product can deliver.
 Reinforcement performed before the desired consumer behavior actually takes place is
called shaping. Shaping increases, the probabilities, that certain desired consumer
behavior will occur. Many retailers provide some form of preliminary reinforcement
(shaping) to encourage consumers to visit only their store.