Consumer behaviour, why marketers study it, and the psychological factors

Meaning of consumer behaviour

Consumer behaviour is the study of how individuals and households search for, choose, buy, use and dispose of goods, services, ideas and experiences to satisfy their needs, and of the mental and social processes behind those acts. It asks what consumers buy, why, when, where, how often and how they feel after buying.

Why a marketer studies consumer behaviour

1. Understanding needs. It shows which needs are unmet, so that the firm can design suitable products.
2. Segmentation and targeting. Differences in behaviour form the bases for dividing the market and choosing segments.
3. Marketing-mix decisions. It guides product features, pack sizes, prices, channels and messages; for example, small sachets suit buyers who purchase daily in small amounts.
4. Predicting response. It helps forecast how buyers will react to a new product, a price change or an advertisement.
5. Building loyalty. Knowing what satisfies customers helps retain them and turn them into advocates.
6. Responding to change. Tastes, technology and lifestyles change; regular study keeps the firm current.

Psychological factors influencing consumer behaviour

1. Motivation. A motive is a need strong enough to drive a person to act. Needs range from basic physical needs to safety, belonging, esteem and self-fulfilment. Example: a family buys a water purifier from a safety motive; a young executive buys a premium watch from an esteem motive.
2. Perception. People select, organise and interpret information in their own ways, so the same advertisement is seen differently by different buyers. Selective attention, distortion and retention mean that only messages that stand out and fit existing beliefs are noticed and remembered. Example: a higher price is often taken as a sign of better quality.
3. Learning. Behaviour changes with experience. A good experience with a brand strengthens the habit of buying it, and the learning may extend to other products under the same name. Example: a satisfied user of one kitchen appliance from a brand tries its mixer-grinder next.
4. Beliefs and attitudes. A belief is a descriptive thought about something; an attitude is a lasting favourable or unfavourable evaluation of it. Attitudes are hard to change, so firms usually fit their products to existing attitudes. Example: a belief that ayurvedic products are safe favours herbal toothpastes and soaps.

Personality and self-concept are not among these four: in Kotler's framework they are personal factors, with age, occupation, economic situation and lifestyle.

Conclusion

Psychological factors work inside the buyer's mind and, together with cultural, social and personal factors, explain why consumers buy as they do. Marketers who understand them can design better products and more persuasive communication.