FOR MBA STUDENTS

1. UNIT-1 CB
Q1. Evolution ofconsumer behaviour
The historical evolutionof consumerbehaviourcanbe describedasfollows-
1. Classical thought: in classical thought,the underlyingresearchwasonaspectslike how the
consumerconsumedthe goods,the supportthatwasextendedbyretail andhow the
consumerbehavedwhenthe marketingandeconomicvariablesinthe productmix was
changed.
2. Managerial school of thought:
3. Behavioural school of thought:
Underlyingprinciple ofconsumerbehaviour
1. Consumerissovereign:
2. Consumerisglobal:
3. Consumerare differentconsumerare alike:
Scope ofconsumer behaviour
1. Consumerbehaviourandmarketingmanagement:
2. Consumerbehaviourandnon-profitandsocial marketing:
3. Consumerbehaviourandgovernmentdecisionmaking:
4. Consumerbehaviourandde-marketing:
5. Consumerbehaviourandconsumereducation:
Importance of consumerbehaviour
1. Attitude:
2. Culture:
3. Lifestyle:
4. Experience:
5. Decisionmaking:
6. Productuse/complements:
Applicationof consumerbehaviour
1. Analysingmarketopportunity:
2. Selectingtargetmarket:
3. Marketingmix decision:
I. Product:
II. Price:
III. Promotion:
IV. Place:
4. Use insocial and non-profitmarketing:
Q2. Marketing mixstrategies
All the decisionsrelatedtothe product,the pricingpolicy,the promotionplansandthe distribution
strategy,constitute toformmarketingmix.These fourelementsof marketingmix are discussed
below-
1. Product:
2. Price:

2. 3. Place (distribution):
4. Promotion:
Value and role of brands in marketingstrategies
The codeswhichprovide life tothe brandsare termedas brandvalues.Inorderto determine the
behavioursandperformance,brandvaluesare treatedasbenchmarks.The worthof the brand in
termof income,potentialincome,marketvalue,reputationandprestige isknownasbrandvalue.
Componentsof brandvalue-
1. Reputationvalue- Perceivedproductquality:
2. Relationshipvalue- relationshipperceptions:
3. Experiential value- consumerexperiences:
4. Symbolicvalue- valuesandidentities:
Q3. Market segmentation
Market segmentationmeansdivisionof marketintosmallergroupshavingsimilarneedsand
qualities.Thishelpsthe companytomodifythe productsorservicestosuitthe differentgroups
more effectively.Even,the advertisementmessagesandpromotionalmethodsare neededtobe
modifiedsothattheyare well understoodbythe group.
Benefitsofmarket segmentation
1. Adjustmentof productandmarketappeals:
2. Betterpositiontospotmarketingopportunities:
3. Allocationof marketingbudget:
4. Understandingandmeetingthe needsof consumers:
5. Strongerpositioning:
6. Enhancedefficiency:
Base of market segmentation
1. Geographicsegmentation:
2. Demographicsegmentation:
I. Age and life cycle stage:
II. Genderandsexual orientation:
III. Marital status:
IV. Income:
V. Social class:
VI. Familysize:
VII. Occupation:
VIII. Educational level:
IX. Religion:
3. Psychographicsegmentation:
I. Lifestyle:
II. Personality:
III. Values:
IV. Beliefs:
4. Behavioural segmentation:
I. Occasions:
II. Benefits:
III. User status:

3. IV. Quantityconsumed
V. Buyerreadinessstage
VI. Loyaltystatus:
VII. Attitude:
Q4. Consumerbehaviour
Consumerbehaviouristhe studyof consumersandthe processes theyuse toselect,purchase and
dispose of the goodsandservices.Thisprocessmayconsistof areaslike psychology,sociology,
anthropologyandeconomics.Thisstudyrevealsthe decisionmakingprocessof individuals,groups
and organisations.
Nature of consumerbehaviour
1. Variesfromcustomertocustomer:
2. Variesfromproductto product:
3. Variesacrossgeographical regions:
4. Importantfor marketer:
5. Reflectsstatus:
6. Resultsinspreadeffect:
7. Improvesstandardof living:
8. Variesfromtime totime:
9. Informationsearch:
10. Influencedbyvariousfactors:
Q5. Variablesaffectingthe decisionprocess
1. Cultural factors:
2. Social factors:
3. Personal factors:
4. Psychological factors:
Factors influencingextentofproblemsolving
1. Degree of involvement:
2. Perceivedproductdifferentiation:
3. Time pressure:
4. Mood states:
Q6. Nature of consumerresearch
1. Scientificmethod:
2. Researchcreativity:
3. Multiple method:
4. Value andcost information:
5. Ethical marketing:
Role of research in understandingconsumerbehaviour
1. Betterconsumptionexperiences:
2. Potential forbuildingcustomerrelationships:
3. Determiningconsumerneeds:
4. Uncoveringproblems:
5. Minimisinglosses:
6. Obtainingindustryinformation:

4. UNIT-2
Q1. Importance of understandingconsumermotivation/ influence ofmotivationon consumer
behaviour
1. Definingbasicstrivings:
2. Recognisinggoal objects:
3. Influencingchoice criteria:
4. Directingotherinfluences:
Motivational conflictsand needpriorities
People are subjecttoa varietyof motivations.These motivations,attimes,workincoordination.For
example if apersonisthirstyina hot summerdayand a friendofferhim/heraglassof coldjuice and
snacks,thenhe/she will gladlyacceptitasthishelpsto fulfil all of his/hermotives,coolingthe body
temperature,thirst,hungerandalsobeingable tomeetfriends.These motivationscanalsoappear
to be in conflict.
Needpriority-
1. Basic physiological needs:
2. Safetyandsecurityneeds:
3. Social needs:
4. Esteemneedsoregoneeds:
5. Self-actualisationneeds:
Q2. Consumersatisfaction
One of the importantelementsof post-purchase stage issatisfaction.Satisfactionisthe customer’s
situationof beingadequately compensatedinapurchasingsituationforthe sacrificesmade byhim.
Satisfactionisakindof steppingawayfromanexperience andevaluatingit.
Importance of consumersatisfaction
1. Customer-orientedmanagement:
2. Comparisonwiththe competitors:
3. Comparisonovertime:
4. Profitfromspecificinsights:
5. Loyalty:
6. Reducedcosts:
7. Leadsand referrals:
8. Ideasfornewdevelopment:
Factor affectingconsumersatisfactionlevel
1. Product(basicdesign):
2. Salesactivity:
3. Aftersales:
4. Culture:
Q3. Theoriesof personalityand marketing strategy
The most commontheoriesof personalityare-

5. 1. Freudiantheory: freudwhoisconsideredtobe the fatherof psychoanalytical theory,
suggestedthatanindividual personalityisendresultof all the three interactingforcesinside
and outside the person.These are-
I. Id:
II. Ego:
III. Superego:
2. Neo-freudiantheory:
I. Harry stack Sullivan:
II. Karenhorney:
III. Carl jung:
3. Trait theory:
I. Big five model:
a) Neuroticism:
b) Extraversion:
c) Opennesstoexperience:
d) Agreeableness:
e) Conscientiousness:
Q4. Motivation
Motivationisthe core of managementwhichshowsthateveryhumanbeinggiveshimasense of
worthin face to face groups whichare most importanttohim.A supervisorshouldstrive totreat
individualswithdignityandrecognitionof theirpersonal worth.
Types ofconsumer buyingmotives
1. Personal motives:
a) Role playing:
b) Diversion:
c) Learningaboutnewtrends:
d) Sensorystimulation:
2. Social motives:
a) Social experience:
b) Statusand authority:
c) Pleasure of bargaining:
Two factor theory of motivation
1. Hygiene factors: Hygiene factorsare those jobfactors whichare essential forexistence of
motivationatworkplace.These donotleadtopositive satisfactionforlong-term.Butif
these factorsare absent/if these factorsare non-existentatworkplace,thentheyleadto
dissatisfaction.Inotherwords,hygiene factorsare those factorswhichwhen
adequate/reasonable inajob,pacifythe employeesanddonot make themdissatisfied.
These factorsare extrinsictowork.Hygiene factorsare alsocalledas dissatisfiesor
maintenance factors astheyare requiredtoavoiddissatisfaction.
2. Motivational factors: AccordingtoHerzberg,the hygiene factorscannotbe regardedas
motivators.The motivationalfactorsyieldpositive satisfaction.Thesefactorsare inherentto
work.These factorsmotivate the employeesforasuperiorperformance.Thesefactorsare
calledsatisfiers.These are factorsinvolvedinperformingthe job.Employeesfindthese
factors intrinsicallyrewarding.The motivatorssymbolizedthe psychological needsthatwere
perceivedasanadditional benefit.
Q5. Characteristics of lifestyle

6. 1. Group phenomenon:
2. Pervadesdifferentlifeaspects:
3. Impliesacentral life interest:
4. Varyaccording to sociologicallyrelevantvariables:
Applicationsof lifestyle
1. Positioningof newproducts:
2. Repositioninganold/existingproduct:
3. Developingnewproductconcepts:
4. Creatingpromotionstrategies:
Influence oflifestyle onconsumerbehaviour
1. Technological lifestyles:
2. Outdoorlifestyles:
3. Statusseekinglifestyles:
UNIT-3
Q1. Culture and its formation
Culture issomethingthatthe membersof asocietylearnthroughsocial interactionsandsharing.It
pertainstomaterial aswell asnon- material components.Material componentsinvolve resources,
spacesand physical objectsthatdescribe the peoplesculture like home,neighbourhoods,cities,
schools,religiousplaces,factories,shopsetc.non-material culture mayinclude ideasorbeliefsof
individuals,acquiredhabits,wordsusedindailylifeetc.
Characteristics ofculture
1. Culture is invented:
a) Ideological system:
b) Technological system:
c) Organisational system:
2. Culture islearned:
3. Culture issociallyshared:
4. Culturesare similarbutdifferent:
5. Culture isgratifyingandpersistent:
6. Culture isadaptive:
Factors affectingculture
1. Social factors:
a) Reference groups:
b) Family:
c) Rolesandstatus:
2. Personal factors:
a) Age and stage inthe lifecycle:
b) Occupationandeconomiccircumstances:
c) Personalityandself-concept:
d) Lifestyle andvalues:
Effectof culture on consumerbehaviour
1. Values:

7. 2. Symbols:
3. Rituals:
4. Thoughtprocesses:
Q2. Family and household
The term familyreferstotwo or more individualslivingtogetherwhoare relatedthroughthe tiesof
blood,marital bondorlegal adoption.Thoughsometimes,we cancall familyashousehold,butthe
householdscannotbe regardedasfamily.
The term householdrepresents anindividualsora groupof individualswhosharesthe same living
place and donot have any other place to stay.The householdcaninclude familygroupslike acensus
familyortwo or more familylivingtogether.
Playedby individualsinfamily purchases/familydecisionmakingand consumption relatedroles
1. Initiator:
2. Influencer:
3. Decider:
4. Gatekeeper:
5. Buyer:
6. User:
Q3. Importance of consumer attitude in studyingconsumer behaviour
1. Determinesmeaningof environment:
2. Rationalisesthe actions:
3. Organisesfacts:
4. Facilitiesselectionof facts:
Influence ofattitude on consumerbehaviour
1. Negative learnedattitude:
2. Positive learnedattitude:
3. Negative experience attitude:
4. Positive experience attitudes:
Importance/role of beliefsinstudyingconsumerbehaviour
1. Products supportingbeliefs:
2. Beliefsshape the consumerperception:
3. Blockinginformationconflictingbeliefs:
4. Marketingstrategiesrevolvingaroundbeliefs:
5. Beliefsmake upproductandbrandimage:
Q4. Influence ofrole behaviouron decisionprocess
Familyinfluence canbe dividedintotwobroadcategories-
1. Influence of familyorientation:
2. Influence of familyprocreation:
Influencesof the differentfamilyrolesonpurchasingdecision:
1. Role of familymembers:
2. Role of children:

8. 3. Role of spouses:
4. Familylifecycle stage:
5. Role of women:
UNIT-4
Q1. Process or opinionformation/shapingconsumers opinion
A basicbusinessactivityisshapingof opinionsof the customers.Encouragingthe formationof
positive opinionsincustomersaboutproductsisthe mainrequirementof thisprocess.Forexample
duringthe launchof a newproduct,introductionof anexistingproductinanew market,interaction
withthe newcustomers,etc.while insome cases,there canbe some attemptsinchangingthe
opinionformedearlier.Forexample,duringthe modificationorrepositioningof aproduct.
Variousfeaturesof suchprocessing-
1. Stimuluscategorisation:
2. Amountof processing:
3. Classical conditioning:
4. Contentof processing:
Role of advertisingin consumer opinionformation
1. Advertisingappeal:
a) Emotional appeal:
b) Rational appeal:
2. Advertisingsexecutional elements:
a) Straightsell orfactual message:
b) Scientificortechnical evidence:
c) Demonstration:
d) Comparison:
e) Testimonials:
f) Slice of life:
g) Animation:
h) Personalitysymbol:
i) Fantasy:
j) Dramatization:
k) Humour:
l) Combinations:
Importance of opinionleaderinadvertisingand marketingstrategy
1. Advertising:
2. Negative WOM(wordof mouth):
3. Marketingresearch:
4. Productsampling:
5. Retailing/personal selling:
6. Identifyingopinionleaders:

9. Q2. Gainingconsumer’sattention
The main reasonbehindconsumersnotpayingattentiontoeachstimulusistheirexposure toahuge
numberof stimuli presentinthe marketingenvironment.Thusalotof difficultiesare presentedto
the marketersforovercomingthismess.
Varioustoolswhich are describedbelowcanbe utilisedbythe marketers-
1. Intensityof stimuli:
2. Contrast:
3. Movement:
4. Surprisingstimuli:
5. Size of stimuli:
6. Involvement:
Type of groups and theirinfluence onindividuals
1. Primaryand secondarygroups:
2. Membershipgroupsandreference groups:
3. In groupsand outgroups:
4. Interestandfriendshipgroups:
5. Formal and informal groups:
6. Temporaryand permanentgroups:
7. Nominal andnon-performinggroups:
Q3. Cognitive learning
Mental activityisthe basisof informationprocessingtheoryonlearningorthe cognitive theoryon
learning.Thistheoryisbasedonthe assumptionthatthe importantinformationwillbe searchedby
the customersand therefore will be involvedinthe problemsolvingprocessforthe variousneeds
identified.Brands,features,productclassorthe combinationof these canbe the aspectson which
the consumermay processthe information.
Importance of cognitive learninginconsumer behaviour
1. Recognitionandrecall:
2. Cognitive responsestoadvertising:
3. Attitudinal and behavioural measuresof brandloyalty:
a) As perbehavioural scientists:
b) As percognitive researches:
4. Brand equity:
Measuresundertakenby companiesin helpingconsumersto remember/company’srole in helping
consumersto remember
1. Chunking:
2. Rehearsal:
3. Re-circulation:
4. Elaboration:

10. Q4. Factors influencingrate of diffusion
1. Type of group:
2. Type of decision:
3. Marketingeffort:
4. Fulfilmentof feltneed:
5. Relative advantage:
6. Compatibility:
7. Complexity:
8. Trialability:
9. Observability:
10. Cost: