What is Consumer Behaviour
                     MIT School of Distance 
Education
What is Consumer Behaviour
What is Consumer Behaviour ? 
• Consumer behaviour encompasses the 
examination of how individuals make 
choices and take actions to acquire products 
or services that fulfill their desires and 
requirements.
• This field of study delves into various 
factors, both internal and external, that 
contribute to consumers decision-making 
processes.
• It includes investigating the emotional, 
cognitive, and behavioural reactions 
exhibited by individuals when considering, 
purchasing, and using goods or services.
• The ultimate objective is to identify and 
understand the factors that shape and 
influence consumers decisions when 
selecting and acquiring products.
Factors Influencing Consumer Buying Behaviour
  1) Cultural factors
  Cultural factors, such as culture, subcultures, and social class, play a pivotal 
role in shaping consumer behaviour. These elements exert a substantial 
influence on how individuals make decisions regarding the purchase of goods 
and services. In simpler terms, cultural factors significantly impact the way 
people choose and buy products, reflecting the values, norms, and social 
structures that shape their preferences and behaviours.
  2) Social factors
  Reference groups and family are key components of social factors that impact 
consumer behaviour. In marketing strategies, social groups are leveraged to 
sway consumer purchasing choices. Essentially, using social groups in 
marketing is a method to shape consumer perceptions and decisions by aligning 
a brand with the preferences and aspirations of specific reference groups.
Factors Influencing Consumer Buying 
Behaviour
 3) Personal factors
 Individuals with similar personal characteristics tend to demonstrate 
comparable purchasing patterns. Marketers analyze these personal factors 
to gain insights into consumer buying decisions and tailor their strategies to 
effectively reach and engage specific customer segments. 
 4) Psychological factors
 Basic human needs, stemming from both biological and psychological 
factors, drive individuals to find satisfaction through the acquisition of 
specific products or services. Maslow's hierarchy of needs theory outlines 
distinct life stages, illustrating that individuals prioritize fulfilling 
fundamental needs like hunger, especially when financial resources are 
limited.
Types of Consumer behaviour 
 1) Routine Buying Behaviour: Consumers engage in routine 
buying behavior when purchasing low-cost, frequently used products. 
They make these decisions quickly and without much deliberation.
 2) Limited Decision-Making: In this type, consumers put in a 
moderate amount of effort into the decision-making process. It 
typically occurs when buying products that are more expensive or 
involve a higher level of risk, such as electronic gadgets.
 3) Extensive Decision-Making: This behavior is observed when 
consumers invest significant time and effort in the decision-making 
process. It is common for complex and expensive products, like a car 
or a house.
Types of Consumer behaviour 
 4) Impulse Buying: Consumers make unplanned, spur-of-the-moment 
purchases without much thought. This often happens at the point of sale or in 
response to marketing stimuli.
 5) Brand Loyalty: Some consumers consistently prefer a particular brand and 
show loyalty over time. They are less likely to consider alternatives and are 
more resistant to marketing efforts from competitors.
 6) Online Buying Behaviour: With the rise of e-commerce, consumers exhibit 
specific behaviors online, such as comparing prices, reading reviews and 
seeking convenience in the shopping process.
 7) Cultural and Subcultural Influences: Consumers' behavior is often 
influenced by cultural and subcultural factors, including values, beliefs, and 
customs that are part of their larger social context.
Why is consumer behaviour so important?
 Businesses dedicate considerable time and resources to develop their 
products or services. It is imperative that these offerings align with the 
preferences and requirements of their customers. 
 Here are some important points why consumer behaviour is important 
in Marketing -
 1) Better Marketing and Communications
 2) Improve Customer Retention
 3) Increase Customer Loyalty
 4) Better Plan Inventory
 5) Increase Sales
 6) Research Competition
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