CONSUMER BEHAVIOUR

By: Deepa Rohit

 Subject details

• Total Marks 50 marks

• Internal Assessment 20 marks
• Written Test 30 marks
 Syllabus
• Understanding of Consumer Behaviour
• Consumer Decision process
• The Consumer as an individual
– Perception
– Learning
– Motivation
– Involvement
– Attitudes
– Personality
 Syllabus
• External factors
– Reference groups
– Culture
– Class
– Family
• Diffusion of Innovation
• Consumer Adoption Process
• Organizational Buying Process
• Application to Indian & Global Markets
 Internal Assessment

• Presentation 5 marks
• Attendance 5 marks
• Class test 5 marks
• Projects 5 marks
 Reference Books

• Consumer Behaviour – Ramanuj Majumdar – PHI

• Consumer Behavior – David Loudon & Albert Bitta – TMH

• Consumer Behavior – Blackwell, Miniard, Engel

• Consumer Behaviour- Suja Nair – Himalaya

 Consumer Behaviour

- An Introduction
 Chapter Details

• Introduction
• Defining the nature of Consumer Behaviour
• Need for understanding consumer behaviour
• Developing a framework for studying consumer behaviour
 Meaning

Consumer behaviour is the study of how, why and what

people do when they buy products or avail of some
services.
It attempts to understand the buyer decision process,
both individually and in groups

By C.L Narayana and R J Markins

 Consumer Behaviour

“the decision process and

physical activity individuals
engage in when evaluating,
acquiring, using or disposing of
goods and services”
 Concepts
• Customer
• Consumer behaviour Roles
– Initiator
– Influencer
– Buyer
– User
• The Decision Process
– Mental decision process
– Physical activity
 Inter Disciplinary Dimensions
Economics Anthropology

Psychology Sociology
Socio Psychology
 Need to study ?

‘You cannot take the consumer for granted any more’

Therefore a sound understanding of consumer

behaviour is essential for the long run success of
any marketing program
Video
 Need for understanding Consumer
Behaviour for a marketer

• Shorter product life cycle

• Evolving consumer preferences
• Environmental concerns
• Changing lifestyles
• Faster technology adoption
• Economic growth
“MEET THE NEW CONSUMER
and smile when you do because he/she is your
boss.
It may not be the person you thought you knew.
Instead of choosing from what you have to offer,
she tells you what she wants. You figure it out
how to give it to her.”

-Fortune Editor
What Consumer Insights can a marketer
get by analyzing and understanding
Consumer Behavior
How consumers think, feel, reason and select
among different alternatives??
How consumers are influenced by their environment
– culture, family, media, peer group

•Buying behavior of Gujrati vs South Indian

•Selecting Tata Docomo ??? As against Airtel
The behaviour of consumers while shopping or
making any choices
Limitations in consumer knowledge or
information –processing abilities which influence
decision and marketing outcomes
How consumer motivation and decision strategies
differ between products that vary in their level of
importance or interest
How marketers can adapt and improve their
marketing campaigns or strategies to quickly
penetrate into market
Application of Consumer Behaviour study in
marketing

• Market opportunity analysis

• Target market selection
• Marketing mix determination
– Product
– Price
– Place
– Promotion
 Product Mix

• Size, shape, features

• Packaging

• Service aspects

• Warranties and guaranties

• Accessories and bundled products

 Price

• Awareness about price in consumers’ minds

• Price sensitivity

• Price reduction, increase

• Sales promotion, discounts

 Place
• Type of intermediaries

• Type of retail outlet

• Location of retail, number of outlets

– Exclusive, intensive or selective distribution

• Visual merchandise

• Image with various options of distribution

 Promotion

• Tools to be use

• Best cost effective medium

• Methods to convey the message

• Frequency of ads, type of ad, celebrity endorsement,

comparative advertising
Consumer Decision Process
Problem Recognition

Information search
& evaluation

Purchasing processes

Post Purchasing
Behaviour
 Individual Determinants

Motivation
Involvement
Problem Recognition
Beliefs
Attitude Information search
& evaluation Decision
Process
Life Style
Purchasing processes
Personality

Post Purchasing
Behaviour
Perception
Learning

Age & Life

Cycle stage
 External Environment

Individual Determinants Culture

Family
Involvement Problem Recognition Motivation

Information search Decision Beliefs

Attitude & evaluation
Process

Social Purchasing processes Sub-culture

Group Life Style
Personality
Post Purchasing
Behaviour
Perception
Learning
Age & Life Cycle
stage

Social Class
Other
 •Motivation
•Perception
•Learning
Consumer as •Beliefs, attitudes
an individual •Personality & self image
Consumer in
social &
Cultural Setting Consumer
Behaviour
•Culture
•Sub culture
•Groups
•Social class Consumer at
market place
•Age sex income
•External stimuli
•Marketing Stimuli
•Environmental
stimuli
 Social Factors Personal Factors

•Reference groups •Age & Life cycle stage

•Family •Occupation & economic condition
•Roles and status •Personality and self image
•lifestyle

Psychological factors
Cultural Factors
•Motivation
•Culture •Perception
•Sub-culture •Beliefs and attitudes
Buyer •Learning
 Cultural Factors
• Culture is the set of basic values, perceptions, wants and behaviors learned
by a member of a society from family place, place of residence etc
• Basic cause of a person’s wants and behaviors
– E.g. Western Culture vs. Indian Culture of valuing elders, taking care of them

– E.g. HDFC Standard life

• Subculture- provides more specific identification and socialization for

members belonging to a particular religion, racial group, geographic regions.
 Social Factors Personal Factors

•Reference groups •Age & Life cycle stage

•Family •Occupation & economic condition
•Roles and status •Personality and self image
•lifestyle

Psychological factors
Cultural Factors
•Motivation
•Culture •Perception
•Sub-culture •Beliefs and attitudes
Buyer •Learning
 Social Factors
• Social Class
– Relatively homogeneous & enduring divisions of the society
– Those within each class tend to behave more alike than those from
different classes
– Social class show distinct product and brand preferences, differ in
media preferences
• Reference Groups
• Family
• Role and status
 Social Factors Personal Factors

•Reference groups •Age & Life cycle stage

•Family •Occupation & economic condition
•Roles and status •Personality and self image
•lifestyle

Psychological factors
Cultural Factors
•Motivation
•Culture •Perception
•Sub-culture •Beliefs and attitudes
Buyer •Learning
 Personal Factors

• Age & lifecycle stage

• Occupation and economic conditions

• Personality and self concept

• Lifestyle
 Social Factors Personal Factors

•Reference groups •Age & Life cycle stage

•Family •Occupation & economic condition
•Roles and status •Personality and self image
•lifestyle

Psychological factors
Cultural Factors
•Motivation
•Culture •Perception
•Sub-culture •Beliefs and attitudes
Buyer •Learning
 Psychological Factors
• Motivation
– The internal feeling that makes a person to buy a certain product
in order to satisfy a necessity

• Perception
– Related to taste, smell touch, experiences,

• Learning and experience

– Knowledge about the brand or prior experience

• Beliefs and attitudes

– +ve or – ve feeling about the brand
 General Model of Consumer Behaviour
The Buyer’s The Buyer’s
External Stimuli
Black Box Buying decision
Marketing Environmental Buyer The choice of
Stimuli Stimuli Buyer Decision
Characteristics Process
Product
Product Economic
Cultural Recognition of Brand
Price Social problem
Dealer
Place Political Social Info search
Quantity
Promotion Technological Personal Evaluation
Timing
Psychological Post-purchase
behavior
Dynamic process
 Pre-Purchase
Challenges for the
marketers
Purchase Time Challenges for the

Marketers
Post-purchase Challenges for
the marketer
Thank you