Consumer Behaviour
Consumer Behaviour
ABSTRACT
Consumer Behaviour is one among the essential factors that surrounds the marketing
function. Consumer Behaviour is referred as the actions that are directly indicative of the
preferences & attitudes of the consumers towards the products. Consumer Behaviour gets
reflected not just during the purchase instead it precedes the purchase function & also follows
the function. The learning on Consumer Behaviour by the Industries encapsulates the study of
Consumer group comprising of Individuals & Institutions pertaining to the actions they
demonstrate towards usage and disposal of products, services & other related aspects. The
studies on Consumer Behaviour have focused on the essential factors that influence the
purchasing behaviour of consumers. Such factors quite noticeably are: Social, Cultural,
Personal and Psychological factors. In the era when the consumers are purchasing products
not just for its utility instead for perceived worth – understanding Consumer behaviour
becomes pretty essential for organisations.
The scope of the paper encompasses seeking & disseminating understanding on the concept
of Consumer Behaviour while reviewing the literature available on the theme of consumer
behaviour. It is a descriptive study conducted through the help of secondary data. The authors
have reviewed the selected literature & drawn inferences which may be indicative in nature &
not exhaustive. Being a study on generalist aspect of the concept of Consumer Behaviour
may lead to limitation of the study and extend a future scope of the study pertaining to
specific study in the field of Consumer Behaviour through the help of Primary Data.
Consumer Behaviour study is an intrinsic part of Marketing function. A well defined
behavioural aspect of consumers may reflect in the success of not just the specific firm but
overall Industry.
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INTRODUCTION
The aim of marketing is to know and understand the customer so well the product
or service fits him and sells itself."
- Peter F. Drucker, Author and Management Thinker
The Need for the study of Consumer Behaviour is perhaps as old as the concept of
Marketing. The world of Marketing is very dynamic and understanding every facet of
Marketing becomes an essential aspect for Industries. The function of Marketing has been
witnessed to start with the need generation and potentially ends with the Customer
Satisfaction. So, the market is a place where the exchange takes place for any reason between
the buyers and sellers, where in the inevitable role is played by the “Consumers” in light of
the fact that buying of any item entirely relies upon the purchasing behaviour of the consumer
or the customer. When everything revolves around the customer then the study of consumer
behaviour becomes a necessity, as the most focused area in every field of business and
services. (www.wisdomjobs.com) Now a days, many business is trying to find out the
changing needs and preferences of consumer’s in today’s scenario. As a consumer, we are all
unique and this uniqueness is reflected in the consumption pattern process of our purchases in
respect of different preference, likes, taste, dislikes and adopt a different behavioural patterns
while making up a purchase decision. Consumer Behaviour is the behaviour that consumer
display in scanning for purchasing, using, evaluating and disposing of products and services
that they expect will satisfy their needs. (https://research-methodology.net)
The study of consumer behaviour provides us with reasons why consumers differ from one
another in terms of evaluating, buying, using products and services. It is concerned with what
consumers purchase, yet in addition with why they buy it, when and where and how they buy
it, and how often they buy it, and also how they consume it & dispose it. Even we see the
environmental influences to Consumer behaviour like social, cultural & personal factors.
Consumer behaviour seem to have individual determinants in the form of personality,
motivation & involvement, learning and attitude of customers. Hence, it also enhances
marketers & future marketers to understand and predict buying behaviour of consumers in the
marketplace and can shape their marketing strategies accordingly. As said by Professor
Theodore Levitt of the Harvard Business School, the study of Consumer Behaviour is one of
the most important aspect in business area, because the purpose of a business is to create
and retain customers (www.wisdomjobs.com). This recommends that Customers are created
and maintained through marketing strategies and perhaps the knowledge & information about
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consumers is important for developing successful marketing strategies as marketers face the
challenges to think about and analyse the relationship with the consumers, and the consumer
behaviour & the marketing strategy.
The Authors have considered the following objectives for the study:
To understand the essentials of Consumer Behaviour
To perform literature review on literary sources i.e., Books, Articles & Research
Papers pertaining to consumer behaviour experienced across the Industry.
To refer & review the existing models of consumer behaviour and recommend a
Model of consumer behaviour towards purchase decision.
Consumer Behaviour has already attracted the larger quotient of marketing thoughts. The
basic motto for developing & marketing a product is to solve existing problem in the market
and satisfy the needs of the Consumers. Significantly, the study of consumer behaviour
supports this motto and ensures a smooth path for the business. It enables the marketers to
acknowledge, recognize and foresee the buying actions of a consumer. However Consumer
Behaviour not necessarily only reflects the learning on what consumers buy but also the
complete action as to why, when, where, and how often they buy it. Consumer behaviour also
has huge impact on the entire distribution system. Learning of consumer behaviour is
beneficial for not just the Business owners instead for middlemen and also to salesperson to
perform their tasks effectively in meeting consumers’ needs. The consumer behaviour
enables the organisation in analysing market opportunity, selecting target market and
supporting the overall Marketing Mix. The elements of Consumer Behaviour are essentially
required to be studied in order to sustain the competitive business environment. Consumer
behaviour learning may be considered the based for the learning of consumer perception,
attitude, culture, life styles, consumer experiences and over all purchase decision making.
The huge scope of the concept of Consumer Behaviour in market domain, its relative
advantages and profound business preposition signifies the rationale behind the study of
Consumer Behaviour.
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RESEARCH METHODOLOGY
A Review Study on Consumer Behaviour is a descriptive study conducted with the help of
Secondary Data. The study aims at understanding the essentials of Consumer Behaviour and
to perform literature review on articles & papers pertaining to consumer behaviour
experienced across the Industry. As part of the literature review 17 sources have been
referred to gather understanding and knowledge on Consumer behaviour. The scope of the
study entail the understanding based on the review of the contributions from various authors
on the theme of Consumer behaviour. The study has the scope of extending further literature
for review on the theme of Consumer Behaviour. The Authors have considered the consumer
behaviour at large rather segmenting to any specific industry; this may be a major limitation
of the study and forms the future scope of the study.
RESEARCH PROCESS:
The study was massively conducted with the help of Secondary data collected from various
sources. The Authors have followed the following Research Process to complete the literary
work:
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LITERATURE REVIEW
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Pre-purchase activity might consist of the growing awareness of a need or want, and a
search for and evaluation of information about the products and brands that might satisfy
the consumers whereas, the post-purchase activities include the evaluation of the
purchased item in use and the reduction of any anxiety which accompanies the purchase
of expensive and infrequently-bought items.
The Consumer attitude has potential to get influenced with change in geographic region
however the same may not be that dominant. A study on consumer behaviour for food
products in India from different perspectives was attempted in north India. Respondents
accepted the fact that their food habits get affected with the shifting to a new region but
many basic buying and consumption behaviour do not change. Some of the changes in
buying and consumption behaviour of relocated people, which were observed after their
settlement to a new region, were not significantly different from the level of changes in
behaviour of non-moving people. (Gupta, 2009) The studies have proved that relational
and subjective elements of service are most influential to Consumer behaviour. In a retail
atmosphere Smiling and making eye contact, giving the customer full attention, being
respectful, and conveying a measure of importance are critical factors. It may considered
that personal elements of service may be of critical importance in cultivating new
customer relationships. (Roberts & Campbell, 2006) Indian Banking Industry has made
an attempt to ascertain the level of awareness among the respondents about the retail
banking services, to measure the level of satisfaction regarding retail products and
services and to offer suggestions to expand the retail market through improved customer
services. The study based on 60 customers each from SBI and Indian Overseas Banks are
selected on convenience sampling method. The study reveals the customers were highly
aware of most of the retail banking products except some like home banking, telebanking
and institutional financing. It also reveals that routine operations factors are highly
influencing the satisfaction level of the customers. The study concludes retail banking
offers phenomenal opportunities for growth and development, the challenges are equally
formidable. How far the retail banking is able to lead the growth of banking industry in
future would depends upon the challenges and how it makes use of the opportunities
effectively. (Revathy B. 2012) Customer is key to the business decisions. Talking about
the Consumer preferences & attitude in the Banking sector, post economic liberalisation,
Banks started providing tailor made services to the changing needs of the ultra-modern
customer to face the stiff competition from the rival banks. Today the customer services
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preference keep on changing at a rapid speed and their demands. To achieve the highly
challenging task of customers satisfaction bankers are turning to technology for help.
Bankers are not only satisfying the customer but must also trigger the attitude of the
customers towards the bank. (Alagarsamy & Wilson, 2013)
The Customer Satisfaction may also get aimed through understanding the consumer
behaviour. The studies have revealed that customer satisfaction, a transaction-specific
attribute, is dependent on nine different factors i.e. Tangibility, E-fulfillment, Convenience
& Availability, Accuracy, Responsiveness, Empathy, Promptness, Personal Assistance.
An independent study conducted on Banks stated that the learning on consumer behaviour
may not only lead to achieve customer satisfaction instead it will help in strengthening the
bond between the banks and their customers, thereby helping the banks to retain and/or
expand their overall customer base. Today, customers expect higher quality services from
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banks which, if fulfilled, could result in significantly improved customer satisfaction, and
potentially retention levels. (Chavan & Ahmad, 2013)
The study of consumer buying behaviour has become an integral part of strategic market
planning as even the customer plays three distinct roles of user, payer and buyer.
Consumer behaviour has always been a great interest for marketers to understand how
consumers think, feel and select from various alternatives products, brands and how they
get influenced by the environment like - cultural, social, personal and psychological
factors. Also lifestyle impacts the consumer buying behaviour. (Naranje & Pawar 2015) It
has been witnessed that over past years, demand for consumer durables has raised with
rising income levels, changing lifestyles, increasing consumer awareness and introduction
of new model. The products like air conditioners are no longer perceived as luxury
products. Such behavioural changes are the resultant of dynamic environment in the
market. (Deshpande & Saxena 2017) In organizations when it comes to marketing
strategies, the customer is the ‘core’. Thus it is necessary for marketers to plan the
motives of price, purchasing, payment mode, and delivering method in such a manner that
suits customers. (Khaniwale, 2015)
Consumer Behaviour has been defined as “those acts of individuals directly involved in
obtaining, using, and disposing of economic goods and services, including the decision
processes that precede and determine these acts”. Consumer behaviour is a complex area,
but marketers try to find out as much as they can about who are their customers in order
to identify their needs, how they behave, what influences them to make a decision to buy
and what processes they follow when selecting a product/service. This information is
required so that marketers can target their marketing activities as precisely and cost
effectively as possible. There are many influences on purchasing behaviour of consumers,
including social, cultural, personal and psychological factors. (Madhavan & Chandrasekar
2015)
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the factors for selecting packaged food include health, convenience, proximity, mood,
price, brand, and sensory appeal. Additionally, it is found that three factors, namely,
health, convenience and mood, have significant relationship with age, and four factors,
namely, health, mood, price and brand, have significant relationship with monthly
income. (Bhatt & Bhatt 2015) The Marketers need to tap this advantage of studying the
consumer behaviour aspect from demographic view point. This enables to place the
product in respective category of the market.
In modern context the Business decisions like customer service, marketing strategies,
human resource management etc. are being used with the help of Information
Technology (IT). IT has a great influence on consumer purchase behaviour. (Narwal &
Sachdeva, 2013) Learning the Consumer behaviour function is essential to develop
appropriate marketing strategy. (Lovelock & Writz 2012)
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Loudon and Bitta (2004) Consumer Behaviour is “the decision process
and physical activity engaged in when evaluating,
acquiring, using or disposing of goods and
services.”
Batra & Kazmi (2004) “Consumer behaviour is mental and emotional
processes and the observable behaviour of
consumers during searching purchasing and post
consumption of a product and service.”
Engel, Blackwell and Miniard “Those actions directly involved in obtaining,
(2006) consuming and disposing of products and services
including the decision processes that precede and
follow these actions” is referred as Consumer
Behaviour
Schiffman and Kanuk (2007) “Consumer Behaviour is the behaviour that
consumers display in searching for, purchasing,
using, evaluating, and disposing of products and
services that they expect will satisfy their needs.”
Hawkins, Best, and Coney (2007) Consumer behaviour can be defined as “the
study of individuals, groups or organisations and
the processes they use to select, secure, use and
dispose of products, services, experiences or ideas
to satisfy needs and the impacts that these
processes have on the consumer and society.”
Stall worth (2008) Consumer behaviour can be defined “as a set of
activities which involves the purchase and use of
goods and services which resulted from the
customers’ emotional and mental needs and
behavioural responses.”
Kumar (2010) Consumer buying behaviour “refers to the
buying behaviour of final consumers, both
individuals and households, who buy goods and
services for personal consumption.”
Kotler and Keller (2011) 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.
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Literature Review Validity Testing
Word Frequency
Summary
Word Count
Consumer 1358
Behaviour 838
Buying 930
Products 633
Customer 586
Marketing 593
Study 700
Making 874
Factors 473
Service 513
Source: Word frequency & Word Cloud developed through NVivo Plus Software by exploring the
documents considered for Literature Review
Exhibit – 1:
Implication of Consumer Behaviour Models - Howard Sheth Model and Engel –
Blackwell – Miniard Model.
Source: (Bhalerao & Pandey, 2017). Consumer Behaviour: Literature Review, IJETSR, Vol.
4, Issue 8, Aug’17.
RECOMMENDATION:
Consumer Behaviour towards Purchase decision has been a talked about topic and literature
suggests that authors have delivered their insights in this regard. In the present study the
authors have reviewed existing models of Consumer Behaviour suggested as Howard Sheth
Model and Engel – Blackwell – Miniard Model. The Howard Sheth model emphasizes on
three aspects towards the overall Model: Input, Constructs and Output. The other model is a
multidimensional effort towards coordination among the perceptual pattern of buyers
reflected in their decision making process. The study proposes a model on consumer
behaviour towards purchase decision whereby the basis of the model is referred from the
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existing models however the recommended model is less complex as against the existing
model and also as against the existing models, this model accepts the experience of the
consumers as part of the process rather just result of purchase.
Source: Self developed Model based on the learning from existing consumer behaviour model.
CONCLUSION:
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Factor and Impact created on Consumer Behaviour. The respective sections have contributed
towards exploring knowledge on the consumer behaviour domain. Such studies of consumer
behaviour have potential to help marketers to recognize and predict the purchase behaviour of
the consumers. The recommended model in the study supports the understanding on the
consumers buying behaviour. The Model links the Buying Motive with Actual purchase and
resulting into an experience that guides further purchase decisions. The reference of the
existing consumer behaviour model supports the momentum of the study. The linkage &
connect presented in the Model demonstrates the flow of the purchase decision taken by the
consumers. As discussed and defined in the study, Consumer behaviour is an essential
attribute to be studied by the Organisation in order to place their Marketing domain in the
right sphere and guide the overall business in right direction.
References:
Solomon, M. (1995). Consumer Behaviour, 3rd edition, Prentice Hall, New Jersey
Loudon David L. & Bitta Albert J. Della (2004). Consumer Behaviour, 2nd edition, MC-
Grawhill, New Delhi.
Blackwell, R., Miniard, P. & Engel, J. (2006). Consumer Behaviour, 10th edition, Mason,
Ohio: Thomson Business and Economics.
Brandon Roberts and Randall C. Campbell (2006) “Being New Customer Friendly:
Determinants of Service Perceptions in Retail Banking”, International Journal of Bank
Marketing, Vol.25, No.1, pp. 56-67.
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Schiffman, L., Hansen H. & Kanuk L. (2007). Consumer Behaviour: A European Outlook,
Pearson Education, London
Hawkins, D., Best, R. J., Coney, K. A. & Mukherjee, A. (2007). Consumer Behaviour,
Tata McGrawhill, New Delhi.
Batra, S. K & Kazmi, S.H.H. (2008). Consumer Behaviour, Excel Books, New Delhi.
Kriti Bardhan Gupta (2009) Consumer Behaviour for Food Product in India. 19th
International food & Agribusiness Management Association, Budapest, Hungary, June 20-
21, pp. 1-13.
Kotler, P. and Keller, K. (2011). Marketing Management, 14th edition, Pearson Education,
London
Revathy, B. (2012) Indian Retail Banking Industry: Drivers & Dooms: An Empirical Study
Excel International Journal of Multidisciplinary Management Studies, Vol. 2, No.1,
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Bhatt Shahir & Bhatt, Amola. (Sep., 2015) Consumer Behaviour towards Packaged Food
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Manali Khaniwale (2015) ‘Consumer Buying Behaviour’, International Journal of
Innovation and Scientific Research ISSN 2351-8014 Vol. 14 No. 2, April 2015, pp. 278-
286.
Dr. Sunil Naranje & Sudarshan A. Pawar (2016) “A Study on Factors Influencing on
Buying Behaviour of Customers”, Institute of Science, Poona college of Computer
Sciences ISSN- 2394-1774.
Ajit Deshpande & Dr. Tarun Saxena (2017) “Effects of Consumer Buying Behaviour
Durable Sellers”, 4D International Journal of Management and Science, Vol. 8, Issue1,
ISSN-2250-0669, pp.32-44.
Bhalerao, A. & Pandey, R. (2017). Consumer Behaviour: Literature Review, IJETSR, Vol.
4, Issue 8, Aug.'17
N. Ramya & Dr. S A Mohamed Ali (2018) “A study on consumer buying behaviour
towards Amul products with special reference to Coimbatore city,” International Journal
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