Chapter 1

INTRODUCTION TO
CONSUMER BEHAVIOR
Syed Muhammad Fahim

Consumer Behavior

You are what You buy

Humor
A girl was shopping at the local
supermarket where she selected:
A half-gallon of 2% milk,
A carton of eggs,
A quart of orange juice,
A head of romaine lettuce,
A 2 lb. can of coffee, and,
A 1 lb. package of chicken.

As she was unloading the items on

the conveyor belt to check out, a
drunk standing behind her watched
as she placed the items in front of
the cashier.
While the cashier was ringing up
the purchases, the drunk calmly
stated, 'You must be single.'

She was a bit startled by this

proclamation, but she was intrigued
by his intuition, since she was
indeed single. She looked at the six
items on the belt and saw nothing
particularly unusual about her
selections that could have tipped
off the drunk to her marital status.
Curiosity getting the better of her,
she said: 'Well, you know what,
you're absolutely right. But how on
earth did you know that?'
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The drunk replied, 'Cause you're ugly.'

Customer Behavior.flv

Recommended Books
1. Evans, Martin, Consumer Behavior,
John Willey & Sons Inc. (2006)
2. Solomon, Michael, R., Consumer
Behavior: Buying, Having and Being
3. Schiffman & Kanuk, Consumer
Behavior

Syllabus
Chapter#1
1.1 Definition
1.2 Application of the understanding of
consumer Behavior

Chapter#2 Market
Segmentation
2.1 Marketing Mix
2.2 Demographic Segmentation
2.3 Geographic Segmentation
2.4 Benefit Segmentation
2.5 Usage Segmentation
2.6 psycho graphic Segmentation
2.7 Product Positioning
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Chapter#3 Consumer
Motivation
3.1 The influence of Need
3.2 Need Theories

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Chapter #4 Perception and

Consumer Behavior
4.1 Perceptual Selection
4.2 Perceptual Interpretation
4.3 Price Perception

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Chapter#5Attitude and
Consumer Behavior
5.1 Nature of Consumer Attitudes
5.2 Role of Attitudes in Developing
Marketing Strategy
5.3 Relationship between beliefs,
attitudes and behavior

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Chapter#6 Consumer
Decision Making
6.1 Problem recognition
6.2 Information Search and Evaluation
6.3 Purchase process
6.4 Post purchase behavior

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Chapter#7 Lifestyle and

personality influences
7.1 Application of lifestyle characteristics
to marketing characteristics
7.2 Personality theories and consumer
behavior

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 Think of a recent important purchase briefly draw a flowchart

of the steps you recall moving through from the awareness of
need to post purchase
What influenced you at each step?

15

Do you agree with the statement that the impact of Digital

revolution on consumer behavior is much greater than ever
before?
If Yes could you give some examples?

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Answer
1.Consumers have more power than before
2. Consumers have more access to the
information than before
3. Marketers can offer more services and
products than before
4. Exchange has become more interactive
and instantaneous
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Consumer Decision-Making
Process

onsumer Behavior - Consumer Decision Process.flv

Need
Need Recognition
Recognition

Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological
Psychological
Factors
Factors
affect
affect
all
all steps
steps

Information
Information Search
Search
Evaluation
Evaluation
of
ofAlternatives
Alternatives
Purchase
Purchase
Postpurchase
Postpurchase
Behavior
Behavior
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Consumer BehaviorDefinition
Consumer behaviour is the study of
when, why, how, and where people do
or do not buy a product (wikipedia)

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Consumer Behaviordefinition
consumer behavior is the process
whereby individuals decide whether
what, when, where, how and from whom
to purchase goods or services. (Walter
and Paul )
Consumer behavior consists of the acts
of individuals obtaining and using goods
and service, including the decision
processes that proceed and determine
these acts. (Kurtz and Boone )

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Definition
Consumer behavior
reflects all decisions about
the acquisition,
consumption and disposal
of an offering by people
over time.

Needs vs Wants.flv

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Implications of our
Definition

Totality of Decisions (all

decisions)

Whether?
What?
Why?
How?
When?
Where?
How much?
How often?
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Implications of Our
Definition, cont.

In addition to buying, CB includes:

Acquisition
Consumption
Disposal

An offering can be

product
service
idea
activity

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GOODS

PLACES

SERVICES
EXPERIENCES

EVENTS

PERSONS
PROPERTIES
INFORMATION

ORGANIZATIONS
IDEAS

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Implications of Our
Definition, cont.

Consumer behavior
may involve several people (decision making
units)
is dynamic (changes over time)

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Groups Interested in
Consumer Behavior Issues

Marketing Managers

Consumers

Regulators and
public policy makers

Ethicists
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