Unit-2
Stages of Consumer Behaviour:-
Consumer behaviour typically follows a series of stages that describe how individuals make
purchasing decisions. These stages are often framed within models like the Consumer
Decision-Making Process. Here are the key stages:
,1. Need Recognition: The consumer identifies a need or problem, triggered by internal (e.g.,
hunger, desire) or external stimuli (e.g., advertising, social influence). This is the starting
point where a gap between the current state and desired state is recognized.
2. Information Search: The consumer seeks information to address the need. This can
involve:
Internal search: Recalling past experiences or knowledge.
External search: Gathering information from sources like friends, family, online reviews,
advertisements, or product research.
3. Evaluation of Alternatives: The consumer compares available options based on criteria like
price, quality, features, brand reputation, or personal preferences. They weigh the pros
and cons to narrow down choices.
4. Purchase Decision: The consumer selects a product or service and completes the
purchase. This decision can be influenced by factors like promotions, availability, or last-
minute recommendations.
5. Post-Purchase Behaviour: After the purchase, the consumer evaluates their satisfaction
with the product or service. This stage can lead to:
Satisfaction: Positive experiences reinforce future purchases or brand loyalty.
Dissatisfaction: Negative experiences may lead to complaints, returns, or switching
brands.
Cognitive dissonance: Buyer’s remorse, where the consumer questions their decision.
Studying consumer behaviour is essential for businesses, marketers, and researchers to
understand how consumers make decisions, which helps in designing effective
strategies. Below are the **needs for studying consumer behaviour** and the **types
of consumer behaviour**.
Needs for Studying Consumer Behaviour: -
1. **Understanding Customer Needs and Wants**: Analysing consumer
behaviour helps identify what drives purchases, allowing businesses to tailor
products or services to meet specific needs.
,2. **Effective Marketing Strategies**: Insights into consumer preferences
enable targeted advertising, pricing, and promotions that resonate with the
audience.
3. **Product Development and Innovation**: Understanding consumer
preferences and pain points guides the creation of products that align with
market demands.
4. **Building Customer Loyalty**: Studying post-purchase behavior helps
businesses enhance customer satisfaction, fostering repeat purchases and
brand loyalty.
5. **Competitive Advantage**: Knowing how consumers evaluate
alternatives allows businesses to differentiate their offerings and stay ahead
of competitors.
6. **Predicting Market Trends**: Analyzing behavior patterns helps forecast
future demand, enabling proactive business decisions.
7. **Optimizing Customer Experience**: Understanding decision-making
processes helps improve touchpoints like customer service, packaging, or
online interfaces.
8. **Segmentation and Targeting**: Behavior studies allow businesses to
segment markets based on demographics, psychographics, or buying habits
for precise targeting.
Types of Consumer Behaviour
Consumer behaviour varies depending on the level of involvement and
decision-making complexity. The main types are:
, 1. **Complex Buying Behaviour**:
- Occurs when consumers are highly involved in a purchase decision,
typically for expensive or risky products (e.g., cars, electronics).
- Consumers engage in extensive research and compare multiple options.
- Example: Buying a laptop after evaluating brands, features, and reviews.
2. **Dissonance-Reducing Buying Behaviour**:
- Involves high involvement but little perceived difference between brands
(e.g., carpets, insurance).
- Consumers may feel uncertain post-purchase (cognitive dissonance)
and seek reassurance.
- Example: Choosing home flooring where brands seem similar, so the
focus is on price or availability.
3. **Habitual Buying Behaviour**:
- Low involvement and minimal brand differentiation, often for routine
purchases (e.g., groceries, toiletries).
Stages of Consumer Behaviour:-
Consumer behaviour typically follows a series of stages that describe how individuals make
purchasing decisions. These stages are often framed within models like the Consumer
Decision-Making Process. Here are the key stages:
,1. Need Recognition: The consumer identifies a need or problem, triggered by internal (e.g.,
hunger, desire) or external stimuli (e.g., advertising, social influence). This is the starting
point where a gap between the current state and desired state is recognized.
2. Information Search: The consumer seeks information to address the need. This can
involve:
Internal search: Recalling past experiences or knowledge.
External search: Gathering information from sources like friends, family, online reviews,
advertisements, or product research.
3. Evaluation of Alternatives: The consumer compares available options based on criteria like
price, quality, features, brand reputation, or personal preferences. They weigh the pros
and cons to narrow down choices.
4. Purchase Decision: The consumer selects a product or service and completes the
purchase. This decision can be influenced by factors like promotions, availability, or last-
minute recommendations.
5. Post-Purchase Behaviour: After the purchase, the consumer evaluates their satisfaction
with the product or service. This stage can lead to:
Satisfaction: Positive experiences reinforce future purchases or brand loyalty.
Dissatisfaction: Negative experiences may lead to complaints, returns, or switching
brands.
Cognitive dissonance: Buyer’s remorse, where the consumer questions their decision.
Studying consumer behaviour is essential for businesses, marketers, and researchers to
understand how consumers make decisions, which helps in designing effective
strategies. Below are the **needs for studying consumer behaviour** and the **types
of consumer behaviour**.
Needs for Studying Consumer Behaviour: -
1. **Understanding Customer Needs and Wants**: Analysing consumer
behaviour helps identify what drives purchases, allowing businesses to tailor
products or services to meet specific needs.
,2. **Effective Marketing Strategies**: Insights into consumer preferences
enable targeted advertising, pricing, and promotions that resonate with the
audience.
3. **Product Development and Innovation**: Understanding consumer
preferences and pain points guides the creation of products that align with
market demands.
4. **Building Customer Loyalty**: Studying post-purchase behavior helps
businesses enhance customer satisfaction, fostering repeat purchases and
brand loyalty.
5. **Competitive Advantage**: Knowing how consumers evaluate
alternatives allows businesses to differentiate their offerings and stay ahead
of competitors.
6. **Predicting Market Trends**: Analyzing behavior patterns helps forecast
future demand, enabling proactive business decisions.
7. **Optimizing Customer Experience**: Understanding decision-making
processes helps improve touchpoints like customer service, packaging, or
online interfaces.
8. **Segmentation and Targeting**: Behavior studies allow businesses to
segment markets based on demographics, psychographics, or buying habits
for precise targeting.
Types of Consumer Behaviour
Consumer behaviour varies depending on the level of involvement and
decision-making complexity. The main types are:
, 1. **Complex Buying Behaviour**:
- Occurs when consumers are highly involved in a purchase decision,
typically for expensive or risky products (e.g., cars, electronics).
- Consumers engage in extensive research and compare multiple options.
- Example: Buying a laptop after evaluating brands, features, and reviews.
2. **Dissonance-Reducing Buying Behaviour**:
- Involves high involvement but little perceived difference between brands
(e.g., carpets, insurance).
- Consumers may feel uncertain post-purchase (cognitive dissonance)
and seek reassurance.
- Example: Choosing home flooring where brands seem similar, so the
focus is on price or availability.
3. **Habitual Buying Behaviour**:
- Low involvement and minimal brand differentiation, often for routine
purchases (e.g., groceries, toiletries).
