Analysis of Consumer Behaviour: Theories, Factors, Decision-Making

This essay comprehensively examines consumer behavior in relation to products and services, crucial for effective marketing strategies. It explores key consumer behavior theories, including motivation need theory, Hawkins Stern Impulse buying, EKB model, and the theory of reasoned action. The essay details the five stages of the consumer purchasing process: need recognition, information search, evaluation of choices, purchase, and post-purchase evaluation. It also analyzes psychological factors such as perception, motivation, learning, and attitudes, along with social factors like reference groups and social status that influence consumer decisions. Finally, the essay discusses critical factors impacting the decision-making process, including marketing campaigns, economic conditions, personal preferences, group influence, and purchasing power. The analysis provides insights into how these factors influence consumer behavior, thereby helping companies understand the market dynamics and refine their marketing strategies.

Running head: CONSUMER BEHAVIOUR
CONSUMER BEHAVIOUR
Name of the Student:
Name of the University:
Author Note:

1CONSUMER BEHAVIOUR
The aim of this paper is to discuss the consumer behaviour process associated with the
products or services. This essay will be detailing the consumer behaviour theories,
psychological and social factors influencing consumer behaviour and the factors influencing
consumer behaviour on the decision-making process.
The Consumer behaviour in relation to products or services are important for
marketing. Customer behaviour is a study how individual customer’s organisation and
Groups can select and buy or dispose ideas any goods and services for satisfying their needs
(Szmigin and Piacentini 2018). This also refers to the actions of the customers in Marketplace
and their underlying motives for those actions.
For understanding the customer Behaviour for purchase there are four most important
theories can be applied which include motivation need theory, Hawkins Stern Impulse
buying, EKB model and theory or reasoned action. The motivation need theory lays focuses
on the need of the customers which motivate them for buying one particular item. This can be
basic needs for artificial need for the customers. Hawkins Stern Impulse buying theory
focuses on the customer behaviour on the rational actions (Akbar and Azeemi 2017). The
sudden by impulses can feat alongside the national Purchase Decision that create complete
picture of an average customer. The impulse purchases are mainly driven by the external
stimuli therefore have no connection with traditional decision making (Teng and Wang
2015). The EKB model stands for Engel, Killer and Blackwell model which includes the five
step process used by consumers for making purchase (Wheeler and Omair 2016). Finally the
theory of reasoned action specify critical decision making process where the consumer’s
action are equally specific for the result expected. The theory of reasoned action perfectly
captures why consumers decide for purchasing particular goods (Walsh et al. 2016).

2CONSUMER BEHAVIOUR
The buying process is the series of steps which a consumer can take for making a
purchasing decision. The standard model of consumer purchase decision making related to
the recognition of the wants and needs, evaluation of choices, information search, purchase
and post purchase evaluation in the buying process there are five stages include. First step is
the recognition of the needs and wants. The need for essential product for the characteristics
of the product attract the buyers and they are influenced by the advertising or observing
others to enjoy this. The step to be the searching of information. The customers when feel the
need of a particular product try to engage in research about that product and how they have
met the needs of the others (Javornik 2016). The third step is the evolution of the choices.
After performing the research the customers evaluate and compare every product against one
another. Starting from the price range to the utility the customers evaluate every product
against one another so that there process of investing in one product does not get wasted. The
fourth step is the purchase. At this point the customer will purchase the product which will be
influenced by the manner in which one can purchase and receive the product (Van Loon et al.
2015). The final process of buying is post purchase evaluation. After the customer has made
the Purchase and have some time with the product they evaluate their decision of purchasing.
This evaluation can be conscious and unconscious but play an important role for developing
brand loyalty towards the product as well as the company which has produced that particular
product (Wikström, Williams and Venkatesh 2016).
The psychological influences on the consumer behaviour relates to the factors
which talk about the psychology of the individuals driving the actions for seeking the
satisfaction in the buying behaviours of the customers. The factors include perception,
motivation, learning and attitude and beliefs. Motivation relates to the need theory of Maslow
that comprises basic needs, social and many other psychological needs (Nguyen, Leeuw and
Dullaert 2018). These motives direct the consumer behaviour to seek satisfaction. Perception

3CONSUMER BEHAVIOUR
toward a product or service also instigate the consumer behaviour for purchasing. This is
where the marketers lay emphasis. They create perceptual processes that include selective
attention, selective retention and selective distortion.
In the psychological factors, the learning process is also included that depends upon
skills, intention and knowledge. During the purchase decision, customers drives learning
from being conditioned to some particular stimuli. The values, beliefs and attitude instigate
tem to buy that particular product or service. The attitudes or beliefs of the customers
manipulate the consumers to respond to a specific product or service in particular way
(Pappas 2016). These make a brand image and the marketers understand the demand or
attitude of the customers in a better way.
Similarly the social factors also influences consumer behaviour. Different social
factors paly essential roles for influencing the buying decision of the customers because the
human beings are social animals therefore discuss various issues among themselves. For
reaching better solutions as well as ideas, people adhere to regulations and laws of the
society. The social factors that influence the customers’ buying decisions are divided into two
groups like primary and secondary. In the primary group who influence the buying decision
of the persons are mainly the reference groups, immediate family members, relatives, co-
workers and friends (Green et al. 2017) The secondary groups include the political parties,
clubs and religious associations. In addition to this, the role in the society played by the
individuals change their mind set up and so also their buying preferences. Finally, the social
status of the persons can change the customer behaviour in a great deal (Shareef, Dwivedi
and Rana 2015). For example, the products bought by the upper middle class people are
completely different from the lower income groups.

4CONSUMER BEHAVIOUR
There are some very impotent factors that influence the consumer behaviour on
the decision-making process which if utilise properly can be profitable for the companies
regarding the sale of their products and services. These factors include-
 Marketing campaigns
The advertisements of the companies play a very important parts in manipulating the
customers to buy their products or services (Vrontis et al. 2018).
 Economic condition
The economic conditions of the market directly connects the ability or the customers to
buy products. This can be more specifically seen in the purchasing of houses, vehicles
and the household appliances.
 Personal preferences
The customers’ behaviour depends upon their likes, dislikes, morals, priorities and
values. The ethics and application associated with the products or services can be
effective for consumer behaviour on the decision-making process.
 Group influence
The influence of the group can effectively manipulate consumer behaviour on the
decision-making process (Warnaby and Shi 2019). For example mass liking for the fast
food and smartphones are examples of group influence.
 Purchasing power
The products need to be within the purchasing capacity of the customers so that they find the
product to be attractive for buying. The quality is not always applicable for the buyers but the

5CONSUMER BEHAVIOUR
inexpensiveness of the products or services decide whether the customers will buy things or
not (Ramanathan et al. 2017).
Therefore, it can be concluded that there are different theories of customer behaviour
that help the companies to understand how much applicable their products or service will be.
In most of the cases, the customers’ behaviour depends upon the factors like social aspects or
psychology of the customers that help the management to understand the conditions of the
market and bring needed changes marketing process.

6CONSUMER BEHAVIOUR
References:
Akbar, M. and Azeemi, N., 2017. Factors Affecting Consumers’ Behavior Towards E-Shop
in KSA. American Research Institute for Policy Development, 1.
Green Jr, P.I., Finkel, E.J., Fitzsimons, G.M. and Gino, F., 2017. The energizing nature of
work engagement: Toward a new need-based theory of work motivation. Research in
Organizational Behavior, 37, pp.1-18.
Javornik, A., 2016. Augmented reality: Research agenda for studying the impact of its media
characteristics on consumer behaviour. Journal of Retailing and Consumer Services, 30,
pp.252-261.
Nguyen, D.H., de Leeuw, S. and Dullaert, W.E., 2018. Consumer behaviour and order
fulfilment in online retailing: a systematic review. International Journal of Management
Reviews, 20(2), pp.255-276.
Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services, 29, pp.92-103.
Ramanathan, U., Subramanian, N., Yu, W. and Vijaygopal, R., 2017. Impact of customer
loyalty and service operations on customer behaviour and firm performance: empirical
evidence from UK retail sector. Production Planning & Control, 28(6-8), pp.478-488.
Shareef, M.A., Dwivedi, Y.K. and Rana, N.P., 2015. Consumer behaviour in the context of
SMS-based marketing. The Marketing Review, 15(2), pp.135-160.
Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
Teng, C.C. and Wang, Y.M., 2015. Decisional factors driving organic food consumption:
Generation of consumer purchase intentions. British Food Journal, 117(3), pp.1066-1081.

7CONSUMER BEHAVIOUR
Van Loon, P., Deketele, L., Dewaele, J., McKinnon, A. and Rutherford, C., 2015. A
comparative analysis of carbon emissions from online retailing of fast moving consumer
goods. Journal of Cleaner Production, 106, pp.478-486.
Vrontis, D., Weber, Y., Thrassou, A., Shams, S.R. and Tsoukatos, E. eds., 2018. Innovation
and Capacity Building: Cross-disciplinary Management Theories for Practical Applications.
Springer.
Walsh, G., Albrecht, A.K., Kunz, W. and Hofacker, C.F., 2016. Relationship between online
retailers’ reputation and product returns. British journal of management, 27(1), pp.3-20.
Warnaby, G. and Shi, C., 2019. Changing Customer Behaviour; Changing Retailer
Response? The Potential for Pop-up Retailing. Journal of Customer Behaviour.
Wheeler, S.C. and Omair, A., 2016. Potential growth areas for implicit theories
research. Journal of consumer psychology, 26(1), pp.137-141.
Wikström, F., Williams, H. and Venkatesh, G., 2016. The influence of packaging attributes
on recycling and food waste behaviour–an environmental comparison of two packaging
alternatives. Journal of Cleaner Production, 137, pp.895-902.