Importance of understanding consumer behaviour

August 12, 2017 Marketing

The intent of selling is to do consumers develop an impulse for a peculiar merchandise even if they are non looking for the same. That is why administrations are required to understand the behavior of clients before marketing their merchandises in a more desirable manner. Consumer behavior is defined as “ the manner the consumers act or behave when looking for, purchasing and utilizing merchandises ” ( O’Dougherty, Haynes, Davies & A ; O’Connor, 2007 ) . Consumer behavior is important to concerns as they determine the nature of the prospective purchasers. Knowing consumer behavior helps concern endeavors to happen out the best manner to publicize the merchandises in order to pull a peculiar set of consumers.

In the earlier times, store keepers were able to get a just apprehension of consumer behavior because they sold their merchandises straight to the clients. However, with the increasing growing in the size of houses, chances of direct contact with consumers have lowered. Increasingly, directors are puting more to derive an penetration on consumer behavior. As a effect, concern and academic research workers invest more resources in analyzing consumer energy for the betterment of concerns.

Literature Review

Several faculty members and professional have conducted their research on consumer behavior. A reappraisal of the literatures would include important theories and surveies in this position.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Stimulus-Behaviour Model

One of the oldest theoretical accounts in respects to consumer behavior is ‘stimulus-behaviour theoretical account ‘ . The undermentioned theoretical account propagates that selling and other stimuli influence the purchaser ‘s black box, bring forthing certain responses ( The Institute for Working Futures, n.d. ) . The stimulation can be of two sorts. The selling stimulation or the selling mix consist of 4 P ‘s including merchandise, monetary value, topographic point and publicity. Others include economic, technological, political and cultural stimulations. All these stimulations move through the consumers ‘ black box and assist them to do the merchandise pick, trade name pick, buying timing and buying sum.

Figure 1: Stimulus-Behaviour Model

( Beginning: Tyagi & A ; Kumar, 2004 )

Apart from this simplified theoretical account, several other theoretical accounts have been developed by the selling bookmans in the field of ‘consumer behavior ‘ . The most outstanding theoretical accounts have been developed by John A. Howard and Jagdish N Sheth, Francesco M. Nicosia, James F. Engel, Roger D. Blackwell and David T. Kollat. The five phase theoretical account of purchasing procedure includes stairss like acknowledging the jobs, seeking for information, measuring the options, buying determination and station purchase behavior of the consumers. After buying the merchandises, the purchaser is expected to experience some degree of satisfaction or dissatisfaction sing the merchandise or service acquired.

The figure of organizational purchasing procedures can be rather big. Product and service sellers have recognized that at every measure of the purchasing procedure, the buyer can hold different demands and assorted groups can acquire involved in the same.

Buy Grid Model

Harmonizing to the Buy Grid theoretical account, the procedure of determination devising within an administration has two parts including bargain stage theoretical account and purchase category theoretical account. The phases in the ‘Buy Phase theoretical account ‘ are rather similar to the purchasing phases discussed above. After placing the demands, industrial purchasers pass through a figure of procedures including finding of demands, specific description of the same, hunt for likely beginnings, appraisal of the beginnings, choice of the same, constitution of order modus operandi and assessment of the public presentation feedback ( Baker & A ; Hart, 2003 ) .

Figure 2: Buy Grid Model

( Beginning: Baker & A ; Hart, 2003 )

‘Buy category ‘ has been added to the same theoretical account to make a grid. ‘Buy category ‘ theoretical account refers to the assorted types of purchasing determinations ; the determinations are largely based on consumers ‘ experience about specific merchandises or services. The ‘new purchasing determination ‘ takes into history the merchandises and services which have ne’er been acquired, along with the full procedure. The ‘straight re-buy procedure ‘ and ‘modified re-buy procedure ‘ consider less figure of undertakings as consumers do non necessitate to pass clip on seeking for beginnings ( Dwyer & A ; Fanner, 2008 ) .

Industrial Buying Behaviour

Back in the twelvemonth 1973, Sheth had proposed a theoretical account on the industrial purchasers ‘ behavior. The theoretical account is a complex 1 with a big figure of variables integrated in it.

Figure 3: An Integrated Model of Industrial Buying Behaviour

( Beginning: Sheth, 1973 )

The theoretical account considers many variables. However, all of these variables hold relevancy in the procedure that determines purchase determinations. Certain conditions are at that place which can be simplified depending on the state of affairs. Prior to that, in the twelvemonth 1966, Nicosia has proposed a theoretical account which included attitude, motive and experience as the drive force behind the purchase procedure ( Swarbrooke & A ; Horner, 2007 ) .

Buyer Seller Interaction

In 1985, Campbell criticized the Sheth theoretical account for non sing the interplay between the selling and buying schemes and their ancestors. Another disadvantage is that the theoretical account concentrates on the purchasers ‘ side instead than paying attending to the Sellerss ‘ influence on purchasing behavior. In contrast, an interaction theoretical account introduced by IMP group has focussed largely on the interaction of the two parties giving about equal importance to the features of both the purchasers and the Sellerss.

Harmonizing to the Campbell, the theoretical account includes three variable groups: the purchasers ‘ features, the merchandise and the provider.

Figure 4: Buyer Seller Interaction

( Beginning: Baker & A ; Hart, 2003 )

The above theoretical account considers few likely types of ‘buyer and marketer interaction ‘ schemes. These are competitory, concerted and bid. A joint happening of the above mentioned schemes can go on if both the parties have about similar degree of power and the exchanging cost to other providers is about equal for every instance. In ‘command purchasing ‘ , the consumer is expected to hold more power than the seller. Concerted purchasing largely happens between the maker and the distributer of the merchandises, when cooperation is required between the two. The above theoretical account shows purchaser ‘s and marketer ‘s features with elaborate treatment on the interaction.

There are certain other constructs related to consumers ‘ purchasing behavior. There are a figure of people, straight and indirectly involved in the buying processes. The purchasing Centre is comprised of all the people involved in the purchasing procedure. The instigator, user, purchaser, influencer, decider and gatekeeper are persons or groups involved in the assorted phases of the procedure. The instigator is the single or group who foremost suggests the demand of buying a peculiar merchandise. The influencer is the single or group, who would hold his or her input in the full procedure. Peoples, commanding the information flow and entree to concerned persons in the administrations, are the ‘gatekeepers ‘ of the full procedure ( Folsom & A ; Boulware, 2004 ) . Apart from those mentioned above, there are several others involved in important phases of the procedure.


After critically analyzing all these theoretical accounts, it was understood that most of these theoretical accounts have taken into history a figure of wide factors which are comprehended harmonizing to the theoretical account specifications. Most of these theoretical accounts start with the induction of outlooks among the consumers. Certain other factors such as life style of the users, position of the consumers, information beginnings such as exhibition and shows, advertizements, word- of-mouth may ensue in influential factors behind the consumers ‘ buying procedures. Certain factors, such as clip force per unit area and built-in hazard are rather specific to the several merchandise and have the ability to set an impact on buying procedure. Apart from these, there can be certain other situational and company specific factors act uponing the pick of providers ( Sheth, 1973 ) . Post-purchase satisfaction besides triggers the re-buying procedure.


Baker, J. , M & A ; Hart, S. 2003. The Marketing Book. Butterworth-Heineman.

Dwyer, R. , F. & A ; Fanner, F. , J. 2008. Business Marketing. New York: McGraw Hill.

Folsom, D. W. & A ; Boulware, R. 2004. Encyclopedia of American concern. NewYork: Infobase Publishing.

O’Dougherty, D. , Haynes, R. , Davies, V. M. & A ; O’Connor, M. 2007. Consumer Behavior. South Africa: Pearson Education.

Sheth, N. J. 1973. A Model of Industrial Buyer Behaviur. [ Pdf ] . Available at: hypertext transfer protocol: // % 20Model % 20of % 20Industrial % 20BuyerBehavior.pdf [ Accessed on November 01, 2010 ] .

The Institute for Working Futures. No Date. Consumer Buying Behavior. [ Online ] . Available at: hypertext transfer protocol: // [ Accessed on November 01, 2010 ] .

Tyagi, L. , C. & A ; Kumar, A. 2004. Consumer Behaviour. Atlantic Publishers & A ; Distribution.

Swarbrooke, J. & A ; Horner, S. 2007. Consumer behavior in touristry. USA: Elsevier Ltd.


I'm Amanda

Would you like to get a custom essay? How about receiving a customized one?

Check it out