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Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision processes/buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

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Wikipedia about consumer behavior

Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision processes/buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Belch and Belch define consumer behavior as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.

Basic model of consumer decision making

The basic model of consumer decision making, also referred to as EKB model (Engel, Kollat & Blackwell, 1969):

Problem recognition

Problem recognition is that result when there is a difference between one's desired state and one's actual state. Consumers are motivated to address this discrepancy and therefore they commence the buying process.

Sources of problem recognition include:

  • An item is out of stock
  • Dissatisfaction with a current product or service
  • Consumer needs and wants
  • Related products/purchases
  • Marketer-induced
  • New products

The relevant internal psychological process that is associated with problem recognition is motivation. A motive is a factor that compels action. Belch and Belch (2007) provide an explanation of motivation based on Maslow's hierarchy of needs and Freud's psychoanalytic theory.

Information Search

Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search.

Sources of information include:

  • Personal sources
  • Commercial sources
  • Public sources
  • Personal experience

The relevant internal psychological process that is associated with information search is perception. Perception is defined as 'the process by which an individual receives, selects, organises, and interprets information to create a meaningful picture of the world'

The selective perception process Stage Description Selective exposure consumers select which promotional messages they will expose themselves to. Selective attention consumers select which promotional messages they will pay attention to Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences Selective retention consumers remember messages that are more meaningful or important to them

You should consider the implications of this process on the development of an effective promotional strategy. First, which sources of information are more effective for the brand and second, what type of message and media strategy will increase the likelihood that consumers are exposed to our message, that they will pay attention to the message, that they will understand the message, and remember our message.

Search results for Consumer Behavior

Category:Consumer behaviour - Wikipedia, the free encyclopedia

See the consumer behaviour article for an overview. Consumer behaviour is a multidisciplinary field which is integral to Industrial ...en.wikipedia.org/wiki/Category:Consumer_behaviour

THE PSYCHOLOGY OF CONSUMERS

Lars Perner's marketing and consumer behavior teaching materials ... Consumer behavior involves the use and disposal of products as well as the study ...www.geocities.com/lazaridous/consumer.htm

Articles About Marketing: Consumer Behavior — HBS Working Knowledge

Sure, most marketing efforts aim to influence consumer behavior. ... Does the Long Tail represent a paradigm shift for business and consumer behavior? ...hbswk.hbs.edu/topics/consumerbehavior.html

Consumer Behavior Lab

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Consumer Behavior | Barnes & Noble.com

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News about Consumer Behavior

Financial Meltdown Alters Local Lending Behavior

Flathead BeaconThe crisis roiling the U.S. financial sector has riveted the nation’s nervous attention for nearly two weeks as Congress scrambled to negotiate a bailout plan and the stock market took more ups and downs than the Going-to-the-Sun Road. The implosion late last week of Washington Mutual Inc., the largest bank failure in U.S. history, only exacerbated public anxiety, particularly in the West.http://www.flatheadbeacon.com/articles/article/financial_mel...

DemandTec Announces Second Quarter Fiscal Year 2009 Financial Results

GlobeNewswire via Yahoo! Finance SAN CARLOS, Calif., Oct. 2, 2008 -- DemandTec, Inc. , a leading provider of on-demand optimization solutions for retailers and consumer products manufacturers, today announced financial results for the second quarter of fiscal year 2009 ended August 31, 2008.http://biz.yahoo.com/pz/081002/151445.html

Yahoo to snip, snip its workforce?

CNET via Yahoo! News Updated at 2:21 p.m., with information on Yahoo's stock performance and a letter sent by Sen. Herb Kohl to the head of the antitrust unit for the Department of Justice.http://news.yahoo.com/s/cnet/20081002/tc_cnet/83011023310056...

Kohl: Google-Yahoo Deal a Possible Antitrust Threat

PC Magazine via Yahoo! News Google and Yahoo might be singing the praises of their ad deal on a newly created Web site, but the chairman of a Senate antitrust subcommittee said Thursday that the arrangement could pose a threat to competition.http://news.yahoo.com/s/zd/20081002/tc_zd/232684

Oil falls as economy falters

CNN MoneyOil prices fell more than $4 a barrel Thursday as investors worried that the ailing U.S. economy would continue to weigh on fuel consumption, despite Senate approval of a plan to unfreeze the credit markets.http://money.cnn.com/rssclick/2008/10/02/markets/oil/index.h...

News about Consumer Behavior

US retailers face worst holiday in years

ONE NewsBut Britt Beemer, chairman of consumer behavior tracking firm America's Research Group, is worried that parents may simply decide to go without this holiday.http://tvnz.co.nz/view/page/425823/2080554

First Command Bank Warns Consumers of Voice Phishing Scam

PR Inside ... and its subsidiaries, including First Command Bank and First Command Financial Planning, assist American families in their efforts to build wealth, reduce debt and pursue their lifetime financial goals and dreams--focusing on consumer behavior as the ... http://www.pr-inside.com/first-command-bank-warns-consumers-...

Acxiom(R) Research Gives Candidates Insight to Swing State Voters

PR InsidePersonicX(R) is Acxiom's household-level segmentation suite that places U.S. households in one of 70 distinct segments and 21 life-stage groups based upon specific consumer behavior and demographic characteristics.http://www.pr-inside.com/acxiom-r-research-gives-candidates-...

Alliance Data to Present at the Bank of America 38th Annual Investment ...

ForbesThrough the creation and deployment of customized solutions that change consumer behavior, Alliance Data enables its clients to create and enhance customer loyalty to build stronger, mutually beneficial relationships with their customers.http://www.forbes.com/prnewswire/feeds/prnewswire/2008/09/15...

Pali Ressearch Initiates Coverage on Whole Foods (WFMI) with a Sell

StreetInsider.comPali analyst says, "A challenging macro environment and changing consumer behavior are likely to continue to impact Whole Foods identical store sales trends. In addition, three primary comp drivers will likely lose strength over the immediate future ... http://www.streetinsider.com/New+Coverage/Pali+Ressearch+Ini...

Search results for Consumer Behavior

Amazon.com: Consumer Behavior

Consumer Behavior: Building Marketing Strategy, 9/e, (with DDB Needham Data Disk) by Delbert I Hawkins, Roger J Best, Kenneth A Coney, and Delbert Hawkins (Hardcover - Mar 12 ... http://www.amazon.com/s?ie=UTF8&keywords=Consumer%20Behavior...

Consumer Behavior Notes

Dr. Friedman . E-mail: x.friedman@worldnet.att.net. Consumer Behavior Study Sheet. Situational variable: physical surroundings, social surroundings, time (temporal perspective ... http://academic.brooklyn.cuny.edu/economic/friedman/cbnotes....

Consumer Behavior

Consumer Behavior. Key Terms: learning, classical conditioning, instrumental conditioning, reinforcement, stimulus generalization, stimulus discrimination, brand loyalty, motives ... http://academic.brooklyn.cuny.edu/economic/friedman/mmconsum...

Welcome to

Welcome to. CONSUMER BEHAVIOR: A FRAMEWORK. John Mowen & Michael Minorhttp://www.consumerbehavior.net/

Chapter 6. Consumer Buying Behavior Notes

Chapter 6 Class Notes Contents of Chapter 6 Class Notes. What is Consumer Buying Behavior? Stages of Consumer Buying Behavior? Types of Consumer Buying Behavior. Categories That ... http://www.udel.edu/alex/chapt6.html
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