What is Consumer Behaviour?

Consumer Behaviour is the study of how individual customers, groups, or organizations select, buy use, and dispose of ideas, goods, and services to satisfy their needs and wants.

What is Consumer Behaviour?

Consumer behaviour refers to the study of how individuals, groups, or organizations select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.

It involves examining various factors that influence consumers’ decision-making processes, including psychological, social, cultural, and economic factors.

Understanding consumer behaviour is crucial for businesses and marketers as it helps them anticipate and respond effectively to consumer needs and preferences.

By analyzing consumer behaviour, companies can develop better products, design more effective marketing strategies, and improve customer satisfaction and loyalty.

Meaning of Consumer Behaviour

Consumer Behaviour refers to the actions of the consumers in the marketplace and the underlying motives for those actions.

Definition of Consumer Behaviour

Here are the definitions of Consumer Behaviour from various authors.

Consumer Behaviour is the process whereby an individual decides, when, what, where, how and from where to purchase goods and services. – James Engel

Consumer behaviour can be defined as the actions of consumers in the marketplace and the underlying motives for those actions. – Ostrow & Smith

It includes the study of what they buy, why they buy, when they buy, where they buy, how often they buy, and how often they use it.

Consumer buying behaviour refers to the buying behaviour of final consumers- individuals and households who buy goods and services for personal consumption. – Kotler & Armstrong

It is the process by which individuals decide whether, when, where, how, from & whom to purchase goods & services. – C G Walter & G W Paul

Buyer behaviour is all psychological, social & physical behaviour of potential customers as they become aware of evaluating, purchasing, consume & tell other people about the products and services. – Webster

Importance of Consumer Behaviour

Here are some key reasons why consumer behaviour is important:

  • Market Understanding
  • Product Development
  • Effective Marketing Strategies
  • Brand Building
  • Market Segmentation
  • Customer Satisfaction and Loyalty
  • Competitive Advantage
  • Decision-Making Process
  • Risk Management
  • Innovation

You Can Read the Importance of Consumer Behaviour in more detail Here

Nature of Consumer Behaviour

  • Complex in Nature
  • Systematic Process
  • Keeps on Changing
  • Reflects Status
  • Varies from Region to Region
  • Differs from Product to Product
  • Vital for Marketers
  • Improves Standards of Living

Scope of Consumer Behaviour

The scope of consumer behaviour includes:

  • Demand Forecasting
  • Marketing Management
  • Marketing Mix
  • Consumer Psychology
  • Consumer Decision Making
  • Consumer Attitudes and Beliefs
  • Consumer Culture
  • Market Segmentation
  • Consumer Research
  • Brand Management

You Can Read the Scope of Consumer Behaviour in more detail Here

7 O’s Framework of Consumer Behaviour

The 7 O’s Framework of Consumer Behavior is a model used to analyze and understand consumer behaviour. It consists of seven components, each starting with the letter “O”, which are as follows:

  1. Occupant
  2. Object
  3. Objective
  4. Occasion
  5. Outlet
  6. Operations
  7. Organization


It refers to the individual consumer or group of consumers who are involved in the consumption process. This includes their demographics, psychographics, lifestyles, and other characteristics.


It represents the product or service that the consumer is considering or purchasing. It encompasses the features, attributes, benefits, and perceived value of the offering.


Describe the goals, needs, desires, and motivations of the consumer about the consumption activity. This component explores why consumers make certain choices and what they hope to achieve through their consumption behaviour.


Relates to the circumstances or context in which the consumption activity takes place. It considers factors such as timing, location, social environment, and situational influences that may impact consumer behaviour.


Refers to the channels or places through which consumers acquire or access the product or service. This includes physical stores, online platforms, distribution channels, and other points of purchase.


Encompasses the processes and activities involved in delivering the product or service to the consumer. This includes aspects such as production, distribution, marketing communications, and customer service.


Represents the broader institutional or environmental factors that influence consumer behaviour. This includes factors such as culture, societal norms, economic conditions, industry trends, government regulations, and competitive forces.

By analyzing each of these components within the 7 O’s Framework, marketers and researchers can gain deeper insights into consumer behaviour and develop more effective strategies for product development, marketing, and customer engagement.

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