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Unit 1 of 4 · BBA Sem 5

Unit 1: Introduction to consumer behaviour

Consumer Behaviour notes · PTU syllabus (BBA 511-18)

3 min read4 topics9 exam questions
On this page
  1. Unit summary
  2. Nature, scope and importance
  3. The consumer decision-making process
  4. Factors affecting buying behaviour
  5. Models of consumer decision-making
  6. Key terms
  7. Quick revision
  8. Important questions

Unit summary

Consumer behaviour studies how people select, buy, use and dispose of products to satisfy their needs. Understanding it helps marketers design the right products, prices and messages. This unit covers the nature, scope and importance of consumer behaviour, the five-step decision process, factors affecting buying, and models of consumer decision-making.

After this unit you can

  • Define consumer behaviour and explain its scope and importance
  • Describe the five-step consumer decision-making process
  • Explain cultural, social, personal and psychological factors in buying
  • Describe models of consumer decision-making

PTU syllabus topics

  • Nature
  • scope and importance of consumer behaviour
  • the five-step consumer decision-making process
  • factors affecting buying behaviour
  • models of consumer decision-making
ProcessConsumer decision-making process
  1. 1Need recognition

    I need a new phone

  2. 2Information search

    Reviews, friends, ads

  3. 3Evaluation of alternatives

    Compare brands and features

  4. 4Purchase decision

    Choose and buy

  5. 5Post-purchase behaviour

    Satisfaction or dissonance

1

Topic 1

Nature, scope and importance

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 (Schiffman and Kanuk). It is interdisciplinary — drawing on psychology, sociology, anthropology and economics — and covers individuals and organisations. Importance: designing products, segmenting markets, positioning brands, setting prices, choosing channels and creating effective promotions.

2

Topic 2

The consumer decision-making process

ProcessFive-step buying process
  1. 1Need recognition

    Gap between actual and desired state

  2. 2Information search

    Internal memory and external sources

  3. 3Evaluation of alternatives

    Compare brands on attributes

  4. 4Purchase decision

    Brand, store, quantity, timing, payment

  5. 5Post-purchase behaviour

    Satisfaction, repeat purchase or cognitive dissonance

Cognitive dissonance is post-purchase doubt ("Did I make the right choice?"); marketers reduce it with reassurance, warranties and follow-up. Types of buying behaviour: complex (high involvement, big differences), dissonance-reducing, habitual and variety-seeking.

3

Topic 3

Factors affecting buying behaviour

ClassificationFactors influencing consumer behaviour
Buyer

  • Cultural

    Culture, subculture, social class

  • Social

    Reference groups, family, roles and status

  • Personal

    Age and life-cycle stage, occupation, income, lifestyle, personality

  • Psychological

    Motivation, perception, learning, beliefs and attitudes

4

Topic 4

Models of consumer decision-making

ComparisonConsumer decision models
Key idea
Focus

Economic model

Consumers maximise utility rationally

Price and income

Nicosia model

A loop of communication between firm and consumer

Advertising → attitude → purchase → feedback

Howard-Sheth model

Inputs, perceptual and learning constructs, outputs

Brand choice and learning

Engel-Blackwell-Kollat (EKB)

Decision process with information input and processing

Problem recognition to post-purchase

Key terms

Consumer behaviour
How people search for, buy, use and dispose of products
Cognitive dissonance
Post-purchase doubt about a decision
Involvement
The importance and interest a purchase holds for the buyer
Reference group
A group that influences a person's attitudes and behaviour
Howard-Sheth model
A model of brand choice based on learning

Quick revision

  • Process: need → search → evaluation → purchase → post-purchase.
  • Factors: cultural, social, personal, psychological.
  • Buying types: complex, dissonance-reducing, habitual, variety-seeking.
  • Models: economic, Nicosia, Howard-Sheth, EKB.

Important exam questions

Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).

Short-answer questions

  1. Q1.Define consumer behaviour.
  2. Q2.List the steps of the consumer decision process.
  3. Q3.What is cognitive dissonance?
  4. Q4.Name the four groups of factors affecting buying.
  5. Q5.What is the Nicosia model?

Long-answer questions

  1. Q1.Explain the nature, scope and importance of consumer behaviour.
  2. Q2.Explain the consumer decision-making process.
  3. Q3.Explain the factors influencing consumer buying behaviour.
  4. Q4.Explain any two models of consumer behaviour.

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