Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision processes/buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.
Belch and Belch define consumer behavior 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'.
Basic model of consumer decision making
The basic model of consumer decision making, also referred to as EKB model (Engel, Kollat & Blackwell, 1969):
Stage Brief description
Problem recognition The consumer perceives a need and becomes motivated to solve a problem. Motivation
Information search The consumer searches for information required to make a purchase decision Perception
Information evaluation The consumer compares various brands and products Attitude formation
Decision The consumer decides which brand to purchase Integration
Post-purchase evaluation The consumer evaluates their purchase decision Learning
Problem recognition
Problem recognition is that result when there is a difference between one's desired state and one's actual state. Consumers are motivated to address this discrepancy and therefore they commence the buying process.
Sources of problem recognition include:
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