Introduction to

Consumer Behaviour
Sanjeev Varshney

What is Consumer Behavior?

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.

Why study consumer behavior?

Consumer behavior theory provides the manager
with the proper questions to ask
Marketing practice designed to influence
consumer behavior influences the firm, the
individual, and society
All marketing decisions and regulations are
based on assumptions about consumer behavior

Marketer

Stimulus

Feedback/Input

Consumer

Marketing Strategy & Consumer

Behavior
What is the Core for Marketing
Strategy ?
Creating Customer Value:
The difference between
all the benefits derived
from a total product and
all the costs of acquiring
those benefits.

Process of Marketing Planning &

Consumer Behavior

Overall Model Of Consumer

Behavior

Input

Process

Firms
Marketing
Efforts

Socio-Cultural
Environment

Individuals
Psychological
Field

Consumer
Decision
Making
Process

External
Influences

Consumer
Decision
Making

Experience

Purchase
Output
Post-purchase
Evaluation

Output

To Understand
Consumer Behaviour
We need to do
Most Companies in India and Abroad
Consumer
Research
have
a Consumer Insight
Department

Exercise
Financial inclusion is a problem in India.
Design a consumer behaviour study to
study the obstacles in the growth.
How will you establish the merchandise
mix in a Louis Phillipe store of an area ?

Evolution of Consumer
Behaviour Research
Motivation Research- In-depth interview
Behavioural Science Research
quantitative research methods
Interpretive Research (Postmodern
perspective)- Ethnographic research

Quantitative Research Methods

Secondary Data

Data collected through modern retail outlets bills

Warranty cards and Past customer transactions
Letters from customers
Sales Reports
Panel Data, Bill Data

Primary Data

Observation
Direct questioning
Experimentation
Projective techniques

Consumer Research
Quantitative Research

Looking for generalizations/segmentation

Description of target market
Want to identify how many people do this ?

Qualitative Research

Want to identify why people do this

How people do this ?
While launching new product

Mixed Research

Start with qualitative research

Test the ideas from qual through quantitative research

Designing Primary Research

How would you understand the brand
purchase behaviour of customers?
How would you understand the store
choice/shopping behaviour of consumers?

Observational Research
Content Analysis

Designing Research
How will you test the relative sales appeal
of many types of

package designs
Advertisement copies
Promotional offers
Causal Experimental Research
Measure Attitude
Test for Purchase Intention

Designing Research
How would you understand the purchase
preferences of consumers?
How would you understand which brand
do consumers like and why?
Survey
Quantitative
Qualitative