Commercial Ink - Consumer Behavior

Consumer Behavior

The subject of consumer behavior is a widely studied one. There are numerous books written on consumer behavior, not to mention countless studies, surveys, and college classes. Although the topic is broad, it is important for all business owners to at least grasp the basics of how a consumer's mind works when making a purchase decision.

Let's start with what exactly consumer behavior is. As defined by the book Advertising and Promotion by Belch and Belch, consumer behavior is defined 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." Basically, consumer behavior is the study of why and how people buy products and services, and what they do and feel during the process. It is a combination of psychology, sociology, economics, and marketing. The reason why understanding consumer behavior is important is because it plays a very significant role in the purchasing process. If marketers understand this process, they can better situate their products and services to consumers so as to be more appealing based on a consumer's decision making.

A consumer's decision process includes the stages through which a purchaser progresses when making a buying decision. The first of five stages is problem recognition. This is arguably the most important, because if a consumer does not recognize they have a need, they will not engage in the other steps and therefore will not be buying anything. The second stage, information search, can be done internally or externally. Depending on the importance of the product or services, this stage can be as thorough or vague as the consumer feels is necessary. Next, the consumer contemplates alternatives before arriving at step four, which is a purchase decision. The final step is post-purchase evaluation, in which the consumer compares the product or service's level of performance, with their own expectations. This process is different for all customers, as it is influenced by each buyer's characteristics such as attitudes, motivation, perceptions, personality, lifestyle, and knowledge.

The topic of consumer behavior is definitely a broad and complicated one, but just understanding the underlying reasons for consumer's actions in the buying process can help marketers and business owners alike in making decisions on how to properly place, price, and promote their products in order to attract more customers.

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