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CONSUMER
BEHAVIOUR
INTRODUCTION
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What is Consumer Behaviour ?

Meaning and Important Concepts.

Who is a Consumer ?
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Any individual who purchases goods and services

from the market for his/her end-use.

In simpler words a consumer is one who consumes

goods and services available in the market.
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What is consumer Interest ?

Every customer shows inclination towards particular
products and services.

Consumer interest is nothing but willingness of

consumers to purchase products and services as
per their taste, need and pocket.
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Example

Vani and Rani went to buy dresses for themselves.

The store manager showed them the best dresses
available with him.
Vani immediately purchased two dresses but Rani
returned home empty handed.
The dresses were little too expensive for Rani
In this case, Vani and Rani had similar requirements
but there was a huge difference in their taste, mind
set and ability to spend.
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What is Consumer Behaviour?

Consumer Behaviour is a branch which deals with

the various stages a consumer goes through before
purchasing products or services for his end use.
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Why an individual buys a

product?

Need

Social Status

Gifting Purpose
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Why an individual does not buy a
product?

No requirement

Income/Budget/Financial constraints

Taste
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When do consumers purchase
products?

Festive season

Birthday

Anniversary

Marriage or other special occasions

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The study of consumer behaviour explains as to:

Why and why not a consumer buys a product ?

When a consumer buys a product ?

How a consumer buys a product ?

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Consumer behaviour is the study of individuals,

groups, or organizations and the processes they use
to select, secure, use, and dispose of products,
services, experiences, or ideas to satisfy needs and
the impacts that these processes have on
the consumer and society.
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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

making process, both individually and in groups
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According to Belch and Belch, whenever need

arises, a consumer searches for several information
which would help him in his purchase
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Following are the sources of information:

Personal Sources

Commercial Sources

Public Sources

Personal Experience
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Perception also plays an important role in

influencing the buying decision of consumers.
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Buying decisions of consumers
depend on:

Messages, advertisements, promotional materials, a

consumer goes through also called selective exposure

Not all promotional materials and advertisements

excite a consumer. A consumer does not pay attention
to everything he sees. He is interested in only what he
wants to see. Such behaviour is called selective
attention

Consumer interpretation refers to how an individual

perceives a particular message.
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Need for understanding
consumer behaviour

1. Shorter product life cycles

2. Evolving consumer preferences

3. Environmental concerns

4. Changing lifestyles

5. Faster technology adoptation

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Case studies:

Ford car a successful automobile brand

Tata Motors Ltd., and its NANO

Internet marketing

Growth of shopping malls

Understanding consumers Psyche Surf Excel

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Case studies:

Pepsodent Gauging Consumers Expectations

Coca-cola goes rural with Thanda campaign

Impact of digitalization

Failure to anticipate consumer trend: Bajaj Auto Ltd.,

Popularity of Herbal Products

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Case studies:

Titan Branded Jewellery

Adopting to Indian palate Mc Donalds Aloo Tikki

Burger

Sucess of Fabindia Stores

Brand failures: Kelloggs Cereal Mates & Crystal Pepsi

and Pepsi Blue
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Diversity of Indian Market

1. India 1 (Elite) Value conscious consumer base

2. India 2 (Climbers) Largest size of consumer

base

3. India 3 (Aspirants) Fastest growth-driver of

consumer base
 Factors influencing Consumer 22
Behaviour
External Stimuli

Marketing Stimuli Environmental Stimuli

Product Economic

Price Social

Place Political

Promotion Technological
 Factors influencing Consumer 23
Behaviour
The Buyers Black Box

Buyer Characteristics Buyer Decision Processes

Recognition of the problem
Cultural The search for information
Evaluaton
Social Decision
Post-purchase behaviour
Personal

Psychological
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Behaviour
The Buyers Buying Decision

The choice of:

Product

Brand

Dealer

Quantity

Purchasing timing
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Micro-factors influencing
Consumer Behaviour

Cultural factors:
Culture
Sub-culture

Social factors:
Reference group
Family
Roles and status
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Micro-factors influencing
Consumer Behaviour

Personal factors:
Age and life cycle stage
Occupation and economic condition
Personality
Lifestyle

Psychological factors:
Motivation
Perception
Beliefs and attitudes
Learning
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Culture

A set of basic values, perceptions, wants, and

behaviours learned from family, place of residence

It is the basic cause of a persons wants and behaviour

Every society has a culture

Cultural influences on buying behaviour vary from

country to country
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Sub-culture

Provides more specific identification and

socialization for members belonging to a particular
religion, racial group, and geographic regions
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Social Factors

Formation of informal or formal groups, family and social

status

Social Class:
persons are perceived as occupying high positions.
determined by occupation, income, wealth, education
Show distinct product and brand preferences

Reference group:
Members who have a direct or indirect influence on the
attitude and behaviour
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The Buying Decision Process
Model
Problem Recognition

Information Search

Evaluation of alternatives

Purchase Decision

Post-purchase Behaviour