CONSUMER BEHAVIOUR
Definition
1. Consumer behavior is that is that behavior exhibited by people in planning, purchasing and
using economic goods and services. ( Kibera and Waruingi).
2.Consumer behavior are those actions directly involved in obtaining, consuming and disposing
of products and services including the decision processes that precede and follow these actions.
(Engel, Blackwell and Miniard).
3. Actions a person takes in purchasing and using products and services, including the mental
and social processes that precedes and follows these actions.(Kerin, Hartley and Rudelius).
Model of consumer behavior
Model of consumer behavior also referred to as the stimulus model of buyer behavior focus on
the questions: How do consumers respond to various marketing stimuli the company might
use?
Marketing stimuli Other stimuli Buyers black Box Buyers Response
Product Economic Buyers black Buyer Product choice
Price Technological Characteristics Decision Brand choice
Place Political Process Dealer’s choice
Promotion Cultural Purchase timing
Model of consumer behavior.
From the figure the figure above, marketing stimuli consist of the four Ps-product, price,
promotion and place.Other stimuli include major forces and events in the buyer’s environment.
All this stimuli enter the buyer’s black box where they are turned in to a set of observable
buyer’s responses shown on the right-product choice, brand, choice, dealer choice, purchase
timing and purchase amount.
1
,APPROACHES TO CONSUMER BEHAVIOUR
1. Economic Man
Research regarded man as entirely rational and self interested, making decisions based upon the
ability to maximise utility whilst expending the minimum effort. While work in this area began
around 300 years ago (Richarme 2007), the term ‘economic man’ (or even Homo economicus
(Persky 1995)) was first used in the late 19th century (Persky 1995) at the start of more sustained
research in the area.
In order to behave rationally in the economic sense, as this approach suggests, a consumer would
have to be aware of all the available consumption options, be capable of correctly rating each
alternative and be available to select the optimum course of action (Schiffman ANDKanuk
2007). These steps are no longer seen to be a realistic account of human decision making, as
consumers rarely have adequate information, motivation or time to make such a ‘perfect’
decision and are often acted upon by less rational influences such as social relationships and
values (Simon 1997). Furthermore, individuals are often described as seeking satisfactory rather
than optimum choices, as highlighted by Herbert Simons Satisficing Theory (Simon 1997), or
Kahneman and Tversky’s Prospect Theory (Kahneman ANDTversky 1979) which embrace
bounded rationality (Simon 1991).
2. Psychodynamic Approach
The psychodynamic tradition within psychology is widely attributed to the work of Sigmund
Freud (1856-1939) (Stewart 1994). This view posits that behaviour is subject to biological
influence through ‘instinctive forces’ or ‘drives’ which act outside of conscious thought
(Arnold,Robertson et al. 1991). While Freud identified three facets of the psyche, namely the Id,
the Ego and the Superego (Freud 1923), other theorists working within this tradition, most
notably Jung, identified different drives.
The key tenet of the psychodynamic approach is that behaviour is determined by biological
drives, rather than individual cognition, or environmental stimuli.
2
, 3. Behaviourist Approach
The study proved that behavior can be learned by external events and thus largely discredited the
Psychodynamic approach that was predominant at the time.
Essentially Behaviorism is a family of philosophies stating that behavior is explained by external
events, and that all things that organisms do, including actions, thoughts and feelings can be
regarded as behaviors. The causation of behavior is attributed to factors external to the
individual. The most influential proponents of the behavioral approach were Ivan Pavlov (1849-
1936) who investigated classical conditioning, John Watson (1878-1958) who rejected
introspective methods and Burrhus Skinner (1904-1990) who developed operant conditioning.
Each of these developments relied heavily on logical positivism purporting that objective and
empirical methods used in the physical sciences can be applied to the study of consumer
behavior .
There are a number of branches of research that conform to the major tenets of behaviorism, but
differ subtly in other ways. Initially ‘Classical Behaviorism’, established by John Watson,
required the entirely objective study of behavior, with no mental life or internal states being
accepted.
3
Definition
1. Consumer behavior is that is that behavior exhibited by people in planning, purchasing and
using economic goods and services. ( Kibera and Waruingi).
2.Consumer behavior are those actions directly involved in obtaining, consuming and disposing
of products and services including the decision processes that precede and follow these actions.
(Engel, Blackwell and Miniard).
3. Actions a person takes in purchasing and using products and services, including the mental
and social processes that precedes and follows these actions.(Kerin, Hartley and Rudelius).
Model of consumer behavior
Model of consumer behavior also referred to as the stimulus model of buyer behavior focus on
the questions: How do consumers respond to various marketing stimuli the company might
use?
Marketing stimuli Other stimuli Buyers black Box Buyers Response
Product Economic Buyers black Buyer Product choice
Price Technological Characteristics Decision Brand choice
Place Political Process Dealer’s choice
Promotion Cultural Purchase timing
Model of consumer behavior.
From the figure the figure above, marketing stimuli consist of the four Ps-product, price,
promotion and place.Other stimuli include major forces and events in the buyer’s environment.
All this stimuli enter the buyer’s black box where they are turned in to a set of observable
buyer’s responses shown on the right-product choice, brand, choice, dealer choice, purchase
timing and purchase amount.
1
,APPROACHES TO CONSUMER BEHAVIOUR
1. Economic Man
Research regarded man as entirely rational and self interested, making decisions based upon the
ability to maximise utility whilst expending the minimum effort. While work in this area began
around 300 years ago (Richarme 2007), the term ‘economic man’ (or even Homo economicus
(Persky 1995)) was first used in the late 19th century (Persky 1995) at the start of more sustained
research in the area.
In order to behave rationally in the economic sense, as this approach suggests, a consumer would
have to be aware of all the available consumption options, be capable of correctly rating each
alternative and be available to select the optimum course of action (Schiffman ANDKanuk
2007). These steps are no longer seen to be a realistic account of human decision making, as
consumers rarely have adequate information, motivation or time to make such a ‘perfect’
decision and are often acted upon by less rational influences such as social relationships and
values (Simon 1997). Furthermore, individuals are often described as seeking satisfactory rather
than optimum choices, as highlighted by Herbert Simons Satisficing Theory (Simon 1997), or
Kahneman and Tversky’s Prospect Theory (Kahneman ANDTversky 1979) which embrace
bounded rationality (Simon 1991).
2. Psychodynamic Approach
The psychodynamic tradition within psychology is widely attributed to the work of Sigmund
Freud (1856-1939) (Stewart 1994). This view posits that behaviour is subject to biological
influence through ‘instinctive forces’ or ‘drives’ which act outside of conscious thought
(Arnold,Robertson et al. 1991). While Freud identified three facets of the psyche, namely the Id,
the Ego and the Superego (Freud 1923), other theorists working within this tradition, most
notably Jung, identified different drives.
The key tenet of the psychodynamic approach is that behaviour is determined by biological
drives, rather than individual cognition, or environmental stimuli.
2
, 3. Behaviourist Approach
The study proved that behavior can be learned by external events and thus largely discredited the
Psychodynamic approach that was predominant at the time.
Essentially Behaviorism is a family of philosophies stating that behavior is explained by external
events, and that all things that organisms do, including actions, thoughts and feelings can be
regarded as behaviors. The causation of behavior is attributed to factors external to the
individual. The most influential proponents of the behavioral approach were Ivan Pavlov (1849-
1936) who investigated classical conditioning, John Watson (1878-1958) who rejected
introspective methods and Burrhus Skinner (1904-1990) who developed operant conditioning.
Each of these developments relied heavily on logical positivism purporting that objective and
empirical methods used in the physical sciences can be applied to the study of consumer
behavior .
There are a number of branches of research that conform to the major tenets of behaviorism, but
differ subtly in other ways. Initially ‘Classical Behaviorism’, established by John Watson,
required the entirely objective study of behavior, with no mental life or internal states being
accepted.
3
