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IRJMSH Vol 5 Issue 12 [Year 2014] ISSN 2277 – 9809 (0nline) 2348–9359 (Print) CONSUMER BUYING BEHAVIOUR AUTHOR: ANKIT SINGH UNIVERSITY OF DELHI CO AUTHOR: NEETU DHAYAL ASSISTANT PROFESSOR- ADHOC SHRI RAM COLLEGE OF COMMERCE UNIVERSITY OF DELHI CO-AUTHOR: AMIR SHAMIM ASSISTANT PROFESSOR- ADHOC SATYAW...

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IRJMSH

Vol 5 Issue 12 [Year 2014]

ISSN 2277 – 9809 (0nline)

2348–9359 (Print)

CONSUMER BUYING BEHAVIOUR AUTHOR: ANKIT SINGH UNIVERSITY OF DELHI

CO AUTHOR: NEETU DHAYAL ASSISTANT PROFESSOR- ADHOC SHRI RAM COLLEGE OF COMMERCE UNIVERSITY OF DELHI

CO-AUTHOR: AMIR SHAMIM ASSISTANT PROFESSOR- ADHOC SATYAWATI COLLEGE (EVENING) UNIVERSITY OF DELHI

ABSTRACT To study consumer buying behaviour has become one of the most important and complex task for the organisations. In order to gain a competitive advantage over its competitors huge amount of money and time is devoted to understand the nature of consumer buying process. This paper aims to understand the process of consumer buying and the factors that influences such decision making process. INTRODUCTION Kotler and Keller (2011) state that consumer buying behaviour is the study of the ways of buying and disposing of goods, services, ideas or experiences by the individuals, groups and organizations in order to satisfy their needs and wants. Consumer buying behaviour focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption-related items that includes what they buy, why they buy, when they buy it, where they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase and the impact of such evaluations on future purchases, and how they dispose of it. Consumer Behaviour was a new field in the mid of late 1960, because the marketing theorists borrowed the concepts from other scientific disciplinary that is Psychology, Sociology, Social Psychology, Anthropology and Economics. Factors influencing consumer's buying behaviour There are four major factors that influence consumer's buying behaviour . These are:

International Research Journal of Management Sociology & Humanity ( IRJMSH ) www.irjmsh.com

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IRJMSH

Vol 5 Issue 12 [Year 2014]

ISSN 2277 – 9809 (0nline)

2348–9359 (Print)

 CULTURAL factors include a consumer’s culture, subculture and social class. These factors are often inherent in our values and decision processes.  SOCIAL factors include groups (reference groups, aspirational groups and member groups), family, roles and status. This explains the outside influences of others on our purchase decisions either directly or indirectly.  PERSONAL factors include such variables as age and lifecycle stage, occupation, economic circumstances, lifestyle (activities, interests, opinions and demographics), personality and self concept. These may explain why our preferences often change as our `situation' changes.  PSCHOLOGICAL factors affecting our purchase decision include motivation (Maslow's hierarchy of needs), perception, learning, beliefs and attitudes. These factors help consumers to develop product and brand preferences. Consumer buying decision process When purchasing any product, a consumer goes through a decision process. This process consists of up to five stages:

NEED RECOGNITION INFORMATION SEARCH EVALUATION OF ALTERNATIVES BUYING DECISION POST PURCHASE BEHAVIOUR Consumer's buying behaviour and the resulting purchase decision are strongly influenced by cultural, social, personal and psychological characteristics. An understanding of these factors is essential for marketers to develop suitable marketing mix to appeal to the target customer. OBJECTIVES The objective of the paper is to reach to an understanding about consumer buying behaviour with the help of literature available in this area of research. To understand the factors and its impact has been other area of interest. LITERATURE REVIEW Wu C. and Chen H.(2000); attempted to provide a more general framework to analyse the customer's interpurchase time by considering the regularity of interpurchase time, adding International Research Journal of Management Sociology & Humanity ( IRJMSH ) www.irjmsh.com

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IRJMSH

Vol 5 Issue 12 [Year 2014]

ISSN 2277 – 9809 (0nline)

2348–9359 (Print)

learning and the departure factors and including the heterogeneity of customer. They found that the customer's interpurchase time can be extended to Erlang-c and still can be easy to estimate and the consideration of the customer's learning and departure is shown to be necessary when we treat the buying population as having easy exit and entry. Juster T.(1966); concluded that surveys of consumer intentions to buy are inefficient predictors of purchase rates because they do not provide accurate estimates of mean purchase probability and consequently the intentions surveys cannot detect movements in mean probability among non intenders, who account for the bulk of actual purchases and for most of the time-series variance in purchase rates. They revealed the probability variable predicts more accurately than the intentions variable largely because it divides non intenders, and those who report that they "don't know" about their buying intentions, into subgroups with systematically different purchase rates. Lawrence R.(1966); observed that in a multi-brand market almost every customer has his own individual pattern of brand purchases through time. Theoretical constructs are needed as a basis for aggregating the data and reducing it to manageable proportions. They concluded that consumer behaviour has been treated as a dichotomy, "bought brand A" and "bought some other brand than A", in many models of decision processes but there is a risk that significant differences in behaviour can be obscured. It has been argued that paired product comparisons are misleading and should be abandoned. In the wider field of consumer purchasing it is also desirable to allow for the multiple-choice situation of the marketplace and to devise analytical methods which are capable of handling it in its full complexity. Shepherd R., Magnusson M. and Sjödén P.(2005); conducted a number of studies of the influences on consumer purchasing and consumption of organic foods. Health benefits were demonstrated to be more strongly related to attitudes and behaviour toward organic foods than were perceived environmental benefits. It was concluded that behavior-behaviour correlations seem to be stronger than "belief"-behaviour correlations in the context of environmental concerns. Broderick A, Greenley G. and Mueller R.(2007); presents a generic strategic framework of alternative international marketing strategies and market segmentation based on intra- and intercultural behavioural homogeneity. They proposed Consumer involvement( CI) as a pivotal construct to capture behavioural homogeneity, for the identification of market segments. They found evidence for the cultural invariance of the measurement of CI, allowing a true comparison of inter and intra-cultural behavioural homogeneity and how CI influences purchase behaviour, and its evaluation provides information for responsive market segmentation. Vitell S., Paolillo J and Singh J.(2006); investigated the roles that religiosity and ones money ethic play in determining consumer attitudes/ beliefs in various situations regarding questionable consumer practices. The results indicated that both intrinsic religiousness and one's money ethic were significant determinants of most types of consumer ethical beliefs. Kohli R., Devaraj S. and Mahmood M.(2004); presented a set of constructs and a method for understanding and supporting consumers' decision-making process. Taken together, constructs for the online consumers' decision-making steps (i.e. intelligence, design, and choice), performance variables (cost savings, time savings), and overall channel satisfaction provide the International Research Journal of Management Sociology & Humanity ( IRJMSH ) www.irjmsh.com

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IRJMSH

Vol 5 Issue 12 [Year 2014]

ISSN 2277 – 9809 (0nline)

2348–9359 (Print)

conceptual basis for their model that they subsequently validate using data from online consumers. Results indicated that support for the decision-making process was mediated by the cost savings and time savings gained by the online consumers and led to their greater channel satisfaction. Estelami H.(2001); examined the role of four determinants: the amount of credit, the timing of the payments, disaggregation of the credit obligations, and numeric presentation of the credit amount. It was suggested that consumers' utilized discount rates significantly vary from those of financial markets, and systematic effects of the above factors on discount rates are also found. Carrington M., Neville B. and Whitwell G.(2010); observed that regardless of their ethical intentions, ethically minded consumers rarely place ethical products in their shopping basket. They have focused on understanding the relationships and disparities between the attitudes and intentions of ethically minded consumers. They developed an understanding of ethical consumerism by drawing on what is known about the intention-behaviour gap from consumer behaviour and social psychology literatures and applying these insights to ethical consumerism. Renault D.(2000); explained that consumer behaviour by way of emotions and feelings would appear to be particularly appropriate in the artistic domain. They discussed that research on cultural behaviour should be oriented towards the sensory, imaginative and emotional aspects of the personal experience. Pilati L. and Ricci G.(1995); explained that, under conditions of incomplete information, prices generate rational expectations concerning the quality of the goods supplied on the market and thus may act as indicators of quality. These results obtained by applying primal-dual methodology to the problem of consumer show that when relative price acts as an indicator of quality, also the demand of normal and inferior goods may denote a theoretical mis-specification. CONCLUSION The conclusion drawn is that better understanding the consumer buying behaviour through studying and identifying their needs leads to huge long term benefits to the businesses. Despite the great efforts to learn and understand the buying behaviour of consumers, it is very difficult to identify the exact reasons why a consumer purchases and prefers one product or service over another one. This is because consumers sometimes make purchasing decisions based on their emotional beliefs which they even themselves are not well aware of. SCOPE FOR FURTHER RESEARCH Future investigation might concentrate on the question of consumer heterogeneity and its influence on his buying behaviour. Further research can also be carried to understand the relationships and disparities between the attitudes and intentions of ethically minded consumers and how they vary across both countries and consumer segments. The impacts of attitudes and beliefs and also other potential types of influences, such as values and affective responses and also belief - behaviour relationships, need to be more systematically tested.

International Research Journal of Management Sociology & Humanity ( IRJMSH ) www.irjmsh.com

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IRJMSH

Vol 5 Issue 12 [Year 2014]

ISSN 2277 – 9809 (0nline)

2348–9359 (Print)

REFERENCES 1. Wu C. and Chen H.(2000), " A Consumer Purchasing Model with Learning and Departure Behaviour", The Journal of the Operational Research Society, Vol. 51(5), 583-591. 2. Juster T.(1966), "Consumer Buying Intentions and Purchase Probability: An Experiment in Survey Design", Journal of the American Statistical Association, Vol. 61(315), 658-696. 3. Lawrence R.(1966), "Models of Consumer Purchasing Behaviour", Journal of the Royal Statistical Society. Series C (Applied Statistics), Vol. 15(3), 216-233. 4. Shepherd R., Magnusson M. and Sjödén P.(2005), "Determinants of Consumer Behavior Related to Organic Foods", Vol. 34,(4/5), 352-359. 5. Broderick A, Greenley G. and Mueller R.(2007), "The Behavioural Homogeneity Evaluation Framework: Multi-Level Evaluations of Consumer Involvement in International Segmentation", Journal of International Business Studies, Vol. 38(5), 746-763. 6. Vitell S., Paolillo J and Singh J.(2006), "The Role of Money and Religiosity in Determining Consumers' Ethical Beliefs", Journal of Business Ethics, Vol. 64(2), 117-124. 7. Kohli R., Devaraj S. and Mahmood M.(2004), " Understanding Determinants of Online Consumer Satisfaction: A Decision Process Perspective", Journal of Management Information Systems, Vol. 21(1), 115-135. 8. Estelami H.(2001), "Determinants of Discount Rates in Consumer Credit Decisions ", Journal of Marketing Theory and Practice, Vol. 9(1), 63-73. 9. Carrington M., Neville B. and Whitwell G.(2010), "Why Ethical Consumers Don't Walk Their Talk: Towards a Framework for Understanding the Gap Between the Ethical Purchase Intentions and Actual Buying Behaviour of Ethically Minded Consumers" , Journal of Business Ethics, Vol. 97(1), 139-158. 10. Renault D.(2000),"Evaluating Consumer Behaviour in the Field of Arts and Culture Marketing", International Journal of Arts Management, Vol. 3(1), 4-18. 11. Pilati L. and Ricci G.(1995),"consumer behaviour under conditions of incomplete information on quality", Rivista Internazionale di Scienze Sociali, Anno 103(2), pp. 317-332. 12. Kotler P. and Keller K. (2011) “Marketing Management”(14th edition), London: Pearson Education.

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