Consumer buying behavior theory pdf

Where utility theory views the consumer as a rational economic man zinkhan 1992, contemporary research on consumer behaviour considers a wide range of factors influencing the consumer, and acknowledges a broad range of consumption. How did you decide to go to the college youre attending. Social learning theory hypothesized that when an entity identifies two situations as alike or related, then expectations for a certain kind of reinforcement, or a category of reinforcements, will evolve from one phase to. For any two bundles of goods a and b which are identical the consumer will consider a to be at least as good as b a is weakly preferred to b. Factors affecting consumers buying decision in the. To examine the content of consumer behavior literature, trace its evolution, and identify the main streams of research over time, a content analysis was first performed on the articles focusing on consumer behavior.

This article looks and consumer behaviour in general and also examines the various theories and models that are available to understand consumer behaviour. Consumer always places positive value on more consumption. What is consumer behavior definition, factors, models and. Knowing the impact of these concepts on buying behaviour will help. The attitude of consumer or buyer decides how demand will. Buying behavior refers to all the decisions people and businesses make when they buy products or services. Bluntly speaking, these assumptions or conclusions are also consumer behavior theories. But, realistically, consumer behavior theories are developed in a more formal and structured way. A consumer buying behavior is influenced by social, cultural, personal and psychological factors.

The study of consumers buying behavior and consumer satisfaction in beverages industry in tainan, taiwan. Watson published a landmark study into behaviour which became. The study of consumer behavior is supported with underlying theories. Key factors influencing online consumer behaviour backed. Read this article to learn about the meaning, factors influencing, advantages and disadvantages of consumer behaviour. Consumer behavior has been always of great interest to marketers. Pioneer models of consumer behavior had one simple primary objective that was a systematic and indepth understanding of buying processes howard, 1994. Consumer behavior is a part of human behavior and by studying previous buying behavior, marketers can estimate how consumers might behave in the future when making purchasing decisions. Buying behavior is the decision processes and acts of people involved in buying and using products. A major application is using freuds inputs to create brand image.

Approaches and models while behavioural research still contributes to our understanding of human behaviour, it is now widely recognised as being only part of any possible full explanation. In other words, consumer behavior is the study of how consumers will make their buying decision and what those factors which support or influence these decisions. Does service given from manufacturer also impacts the buying behavior of consumers. Effective advertising and its influence on consumer buying. The objective of the study are to examine significant effect of economic recessions indices on consumer buying decisions, two. Consumer buying behavior an overview of theory and models this paper discusses about the consumer buying behavior and their decision making process, during consumption. Consumer buying behavior refers to the buying behavior of the ultimate consumer. Empirical models of consumer behavior aviv nevo october 10, 2010 abstract models of consumer behavior play a key role in modern empirical industrial organization.

She is a key member of a team exploring how technology can be used to enhance the student learning experience. Kotler 1977 and 2001 thought that consumer buying behavior is how individuals, groups and organizations to select, purchase, use and disposal of products, services, ideas or experience to meet the consumers demand. In certain products like medicines one buys on the prescription of a physician which is also part of consumer behaviour. The importance of studying compulsive buying, stems, in part, from its nature as a negative aspect of consumer behavior. Theories of consumer behavior are a natural extension of human behavior theories. Abstract globally, the term, marketing is not a new phenomenon. Digital library customer behavior study is based on consumer buying behavior, with the. According to this theory the individual decision and behaviour are quite often influenced by the family and the. The science of marketing developed from other disciplines such as psychology, sociology, social psychology, anthropology and economics. Consumer behaviour is very important to understand what influences the buying decisions of the consumers and why does it so. Consumers purchase products and services as and when need arises. Consumer behaviour emerged in the 1940s and 50s as a distinct sub.

This theory established that persons behaviour is determined by its behavioural intention to perform it. It blends elements from psychology, sociology, social anthropology and economics. Theory of buyer behaviour howard andsheth 1969 and the consumer decision. The research problem is effect of economic recessions indicators on consumers buying behavior. In a laymans language consumer behaviour deals with the buying behaviour of individuals. Since the first model introduced in the 1960s, the frameworks for consumer decisionmaking cdm have evolved through various forms. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Consumer buyer behaviour definition research methodology. Normally in consumer behaviour one studies the behaviour of consumers for consumption goods but in the study the behaviour of buyer is also included.

The behavior that consumers display in searching for, purchasing, using, evaluating, and. This type of behavior is encountered when consumers are buying an expensive, infrequently bought product. In this paper, i survey some of the models used in this literature. By understanding how consumers decide on a product it is possible for marketers to fill in the gap and identify which product is needed and which products are obsolete in the market. Sep 06, 2018 emotion is the outcome the feeling a consumer experiences, not the message itself. Business theories of buying behavior your business. Though impulse purchases are a significant part of a consumers buying patterns, rational decisionmaking processes dominate consumer behavior and affect marketing theory. Marketers in todays business environment are presented with the particular challenge of circumventing conflicted messaging, oversaturation of marketing initiatives, and consumer hesitation and guarded behaviour in order to achieve their objectives of enhancing long. It is very important for a company to know and understand the consumers response towards different product features, prices and advertising appeals, as well as their effect on the product getting a competitive edge over the other products.

If a brand can appeal to a deep wish, fantasy, aggression or some escape from life, then consumers may equate a brand or specific line of products with a desire. There are two main approaches to the of consumer behavior of demand. Jul 04, 20 consumer buyer behaviour definition posted on july 4, 20 by john dudovskiy consumer buyer behaviour is considered to be an inseparable part of marketing and kotler and keller 2011 state that consumer buying behaviour is the study of the ways of buying and disposing of goods, services, ideas or experiences by the individuals, groups and. This paper discusses about the consumer buying behavior and their decision making process, during consumption. For any three consumption bundles a, b and c it is valid that if consumer prefers a to b, and he prefers b to c, then he must prefer a to c. Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumer s emotional, mental and behavioural responses that precede or follow these activities. Howard and sheth introduced theory of buyer behavior which. Consumer buyer behaviour is considered to be an inseparable part of marketing and kotler and keller 2011 state that consumer buying behaviour is the study of the ways of buying and disposing of goods, services, ideas or experiences by the individuals, groups and organizations in order to satisfy their needs and wants. Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumers emotional, mental and behavioural responses that precede or follow these activities.

Consumer behavior theories emerged as marketers started applying work to customers wants, needs and identities sigmund freuds 20 th century psychoanalytic theory of personality was a major development in the field of. No commodities can move from a production point to a consumption point without putting the marketing machinery at work. Consumer buying behavioran overview of theory and models this paper discusses about the consumer buying behavior and their decision making process, during consumption. Acton 2005 stated that the consumer purchase behavior is defined as consumer buying behavior which is consumed in order to meet the needs of consumers 8. They are highly involved in the purchase process and consumers research before committing to invest. It is broadly the study of individuals, or organisations and the processes consumers use to search, select, use and dispose of products, services, experience, or ideas to satisfy needs and its impact on the consumer and society. The base research in consumer behavior lays foundation for quantitative research to analyze the existing theories and new emerging patterns of consumer behavior. Consumer behaviour is the study of how consumers make decisions about what they need, want, and desire and how do they buy, use, and dispose of goods. Models of consumer behavior as the buying process is very important in marketing, it would be ideal to have a complete idea on buyer behavior model. This study is an empirical research conducted at agbaraindustrial area of ogun state, nigeria. These include law of diminishing marginal utility and law at equimarginal utility. The following chapters focus on the social, personal and psychological characteristics of consumer behavior.

Pdf consumer buying behavioran overview of theory and. Four theories stand out as influential for marketers. Apr 01, 2003 consumer compulsive buying is an important area of inquiry in consumer behavior research. Relationship marketing is an influential asset for customer behaviour analysis as. Marketing professionals want to know the answers to these questions.

Several different theories have been proposed to explain and predict the buying behavior of both companies and individuals so that business owners can make the best. While no single theory is unifying, each one provides a unique piece of the puzzle in understanding the psychological processes of people and their patterns of consumption. Specifically, exploring negative consumption phenomena could provide modified or new perspectives for the study of positive consumption behaviors. Doc consumer behaviour theories and models ravimohan. Consumer buying behavioran overview of theory and models. And emotional connection comes from tapping into positive, familiar ideas in consumers memories. The consumer buying process is influenced by the consumer financial position, personality, tastes, preferences, reference group, social standing and even economic sentiment that is dictated by the status of the economy. This intention is itself determined by the persons attitudes and his subjective norms towards the behaviour. And a model can help effectively in this since it organizes variables in a comprehensive way. Consumer compulsive buying is an important area of inquiry in consumer behavior research. Consumer buying behavior can have a disproportionate effect on the buying behavior of businesses. Indifference curves 510 slope of indifference curves.

The essential component of human behavior, the consumers behavior restrictively, reflects peoples conduct when it comes to buying and or. It is an old saying that customer is the king because he is the person on whose decision demand of any product or service is dependent. A model is an attempt to diagram the elements and relationship among the. The study of consumers buying behavior and consumer. Consumer behavior can be defined as the study of psychological, physical and social actions when individuals buy, use and dispose of products, services, ideas, and practices. Pdf a study of theories on consumer behavior researchgate. Metacognition, locus of control and consumer buying behaviour. What are the factors influencing consumer behavior.

In particular, i discuss two commonly used demand systems. Consumer buying behaviour is a psychological process. Jun 04, 2018 other marketers have tried to apply the psychoanalytic theory to consumer behavior. Aug 24, 2018 consumer behavior refers to the study which analyzes how consumers make decisions about their wants, needs, buying or act with respect to a product, service or organization. How people make buying decisions why do you buy the things you do. Marginal rate of consumer substitution mrcs absolute slope of the indifference curve may be different at every point along the curve. The black box model is related to the black box theory of behaviorism, where. Effect of economic recession on consumers buying behaviour.

Keywords consumer behaviour, consumer behaviour models, cognitive approach to models of. The first approach is the marginal utility or cardinalist approach. Consumer behavior theories are also assumptions or conclusions about. Will buying follow others ease their threat of death. Consumer is the king and it is the consumer determines what a business is, therefore a sound marketing programme start with a careful analysis of the habits, attitudes, motives and needs of consumers.

Once the human behavioural models have been addressed, the chapter will focus on models of consumer behaviour. According to belch and belch, whenever need arises. Theory building in consumer behavior theories are assumptions or conclusions about some phenomena. Fred van raaij and kassaye wandwossen 1978,motivationneed theories and consumer behavior, in na advances in consumer research volume 05, eds. Starbucks, nowadays, is know as one of the most successful brand in north america. Why consumer behaviour and an understanding of such processes is useful from the perspective of the marketer. Do your friends shop at the same places or different places. The fast fashion era introduction the fashion industry could be defined as billion dollar industry that employs millions of people worldwide. Consumer behaviour jane priest is a teaching fellow at edinburgh business school and teaches parts of the oncampus marketing course, as well as the consumer behaviour elective by distance learning. Scientific method, as used in physical or natural sciences is used today by consumer behavior researchers in theory building. Consumer behavior in marketing patterns, types, segmentation. Buyers reactions to a firms marketing strategy has a great impact on the firms success. Consumer behaviour and marketing action learning objectives after studying this chapter, you will be able to understand.

It is very critical to understand the behavior of consumers to analyze the behavior of potential consumers towards a new product or service. The main catalyst which triggers the buying decision of an individual is need for a particular productservice. For instance, if consumer demand for a particular product drops by 10 percent, the company that makes the product may switch to a lessexpensive supplier for one of the component parts to make up the loss. As per the law of diminishing marginal utility, a consumer satisfies his wants in order of their urgency and that he consciously or unconsciously weighs in his mind the price he has. This paper will firstly examine how successful it is by statistic number, then explain this success by two consumer behavior theory. This theoretical research attempts to turn back the pages in literature, to understand the concepts and existing theories in the consumer buying behavior. Everything you need to know about the models of consumer behaviour. Consumer behaviour emerged in the 1940s and 50s as a distinct subdiscipline in the marketing area. Consumer behavior theories predict how consumers make purchasing decisions and show marketers how best to capitalize on predictable behaviors.