As an introduction, I think it is necessary you understand that, in most of the markets, be it consumer market or organizational buying market, buyers differ enormously in terms of their buying dynamics. So the task for the marketing manager is not only to understand these differences in buying patterns but also to generalize them for better targeting and product offer. In consumer markets, for example, not only do buyers typically differ in terms of their age, income, educational levels and geographical location, but more fundamentally in terms of their personalities, lifestyles and their expectations from the products and services available in the market.

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DEPARTMENT OF BUSINESS AND
MANAGEMENT STUDIES
CHAPTER 3: CONSUMER BEHAVIOR
PROGRAMME: MBA MARKETING, STRATEGIC
MANAGEMENT & SCM
COURSE TITLE: MARKETING MANAGEMENT
COURSE CODE: MAMA611
TOTAL CREDITS: 3
BY
NGANG PEREZ
(MAJOR 1)
PAN AFRICAN INSTITUTE FOR DEVELOPMENT
-WEST AFRICA (PAID-WA) BUEA
LECTURE NOTES FOR MARKETING
MANAGEMENT

2. 2
COURSE OUTLINE FOR MARKETING MANAGEMENT
PROGRAMME: MBA. STRATEGIC MANAGEMENT AND MARKETING SCM
COURSE TITLE: MARKETING MANAGEMENT
COURSE CODE: MAMA611
TOTAL CREDIT: 3
TOTAL LECTURE HOURS: 15
LECTURER: NGANG Perez (MAJOR 1)
A. COURSE OVERVIEW AND OUTLINE
1. Course Description:
This course is programmed to tackle the complexities of marketing management from theoretical
perspective to an actual real life experience in the market place. It is assumed that the students
have a foundation on marketing principles. Thus, attention is paid in details, on the various
marketing strategies, including segmentation, targeting, positioning, and marketing mix (product,
price, place and promotion) strategies. It explores how those strategies contribute to the company’s
competitive advantage in the marketplace. The course equally provides students with managerial
guides on the management of the marketing function.
2. COURSE OBJECTIVES: By the end of this course, student should be able to:
• Learning Objectives: By the end of this course, students should be able to:
➢ Understand the fundamentals of exchange and how it is being applied in
marketing.
➢ Identify the basic concepts of marketing and determine how they influence
human wants.
➢ Carry out an environmental analysis of the market
➢ Describe the different types of consumers and their behaviors
PAN AFRICAN INSTITUTE FOR DEVELOPMENT-
WEST AFRICA (PAID-WA) BUEA

3. 3
3. COURSE SCHEDULE AND TOPICS
This course will cover the following topics in 5 learning sessions with one session per week as
follows:
Week 3: Session 3/Chapter 3: Consumer Behavior
Date:
Topics
• Types of Markets
• Types of Customers in Consumer Market
• Buyer or Consumer’s Behavior
• General Characteristics of Consumer Behavior
• Buying and Purchase Decision Process
• Factors Influencing Consumer Behavior
• Conclusion and Summary
• Review Questions
4. GENERAL COURSE REVIEW AND FINAL EXAM PREPARATION
Date:
Topics
• Chapter 3: Consumer Behavior
5. OTHER REQUIREMENTS
➢ Required Text Books or Articles
1) Kotler, P. & Keller, K. 2011. Marketing Management 14th Edition, Upper Saddle
River, NJ, Prentice Hall. (Recommended Text Book)
2) Rajan Saxena, Marketing Management, Tata McGraw Hill, 2002.
3) V S Ramaswami, S Namakumari, Marketing Management, Macmillan, 2003.
4) David A. Aaker, Building Strong Brands (New York: Free Press, 1995)
5) Kevin Lane Keller, Strategic Brand Management: Building, Measuring, and
Managing Brand Equity (Upper Saddle River, NJ: Prentice-Hall, 1998).
➢ Important web links
1) www.hindustanstudies.com/files/coreconcepts.pdf [accessed 23th June 2019]
2) http://www.netmba.com/marketing/concept/ [accessed 23th June 2019]

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3) www.prenhall.com/behindthebook/0132390027/.../Kotler_CH07.pdf
4) http://marketingteacher.com/lesson-store/lesson-services-marketing.html
5) http://marketing.about.com/od/brandstrategy/tp/brandstrategydev.htm
B. COURSE EVALUATION
• Written Assignment 15%
• Graded Quiz 10%
• Discussion Assignment 5%
• Final Exams taken on Campus 70% total 100%
C. LECTURE NOTES AND PRESENTATION (Next Page)

5. 5
WEEK 3:
SESSION 3/CHAPTER 3 CONSUMER BEHAVIOR
3.0 Brief Introduction
As an introduction, I think it is necessary you understand that, in most of the markets, be it
consumer market or organizational buying market, buyers differ enormously in terms of their
buying dynamics. So the task for the marketing manager is not only to understand these differences
in buying patterns but also to generalize them for better targeting and product offer. In consumer
markets, for example, not only do buyers typically differ in terms of their age, income, educational
levels and geographical location, but more fundamentally in terms of their personalities, lifestyles
and their expectations from the products and services available in the market.
3.1 LEARNING OBJECTIVES
By the end of this session, students should be able to;
• Identify the different types of consumer markets
• Describe the different types of consumers and their behaviors
• Discuss the consumer decision making process
• Explain the constituents of micro and macro environments
• Explain the factors that affect consumer’s behavior
3.3 DEFINITION OF KEY TERMS
➢ Consumer Behavior: It involves the act of ‘Individuals which are directly involved in making
decisions to spend their available resources in obtaining and using goods and services..
➢ Culture: It is the wholesome way of consumers and explains his mosaic of living. It is a way
of living that distinguishes a group of people from others. Culture is learned and transmitted
from one generation to another.
➢ Lifestyle: A person’s activities, interests, attitudes, opinions, values and behavior patterns in
explaining his way of living.
3.3 THE MAIN CONTENT
Consumer’s buying is greatly controlled by behavioral correlates (actions that characterizes one’s
behavior) as well as non behavioral correlates (dynamics natures that explain human state of being
like age, sex, income, occupation). Now, besides the behavioral and non-behavioral correlates, we
can as well say that consumer’s buying is also influenced by various situational factors such as the
location of the store, crowd in the store, distance of the store from the residence of consumers,

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type and number of stock keeping units available in the store, nature and frequency of advertising,
effects of sales promotion and public relations. You know what I mean, Right?
In this unit, you will understand the different aspects of consumer’s behavior and the major factors
that affect an individual consumer.
3.3.1: Types of Markets
When the final output of the firm goes for the consumption of individual consumers, we can call
this as a consumer market. Demand of end consumers decides the level of production and the
marketing effort of a firm. You remember that in basic economics, we were once told that
production is not complete until the good reaches the hand of the final consumer, right? This is
what we mean by “the output of the firm (product) goes for the consumption of the individual
consumers”. When once, the production is directed to the final consumer, we say we are in a
consumer market. Hope you understand?
Alright, now this consumer markets can be categorized in several ways:
Fast-moving consumer goods (FMCG) Market: In this market, the products are of low
unit value and there is fast repurchase. High volume is one of the distinctive features of this market.
For example: FMCGs include Soaps, Juices, Grocery, Chocolate, etc
Consumer durables Market: We usually called goods from this market as durable consumer good.
This is a low volume but high unit value market. The rate of depreciation of such goods are not
fast as we have with FMCGs. This is basic economics and I hope it does not provide you with
difficulty in understanding.
Example: Consumer durable goods include television, dishwasher, DVD player, Gaming console,
etc. You can add more examples.
Soft goods Market: Please let me emphasize that soft goods fall within the category of
durable consumer goods. But what makes them different is their rate of replacement. Soft goods
are similar to consumer durables, except that they wear out more quickly and therefore have a
shorter replacement cycle.
Example: Clothes, shoes, etc. You will bear record with me that you change clothes or buy them
more often than you buy a pressing iron. True or True? The answer is a big true! Why? Because
clothes are soft goods.
Services Market: In simple terms, these are considered as market dealing in intangible
products.
Example: Teaching, preaching, banking services, entertainment (playing football), and even such
things as childcare, etc.
Apart from these, we can also categorize markets on the following basis:

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Markets based on area: When area is used as a basis of market classification, we categorize
markets into local markets, regional markets, national markets and international markets. It
depends on the manner in which the buyers and sellers are located in a particular place.
Markets based on nature of transactions: We can classify the markets on the basis of
nature of transactions into two broad categories: the spot market and the futures market. I know
the students will find it difficult understanding both concepts, but let me explain! The spot market
or cash market is a public financial market in which financial instruments or commodities are
traded for immediate delivery. It contrasts with a futures market, in which delivery is due at a later
date. Are you still there?
Markets based on volume of business: On the basis of the volume of business, the markets
are broadly classified into wholesale and retail markets.
Markets based on time: Sometimes the time element is used to classify the markets. Do
you know that? Time is a very significant factor for market categorization. Let me explain! The
time is classified as very short period, short period and long period. Accordingly we have very
short period markets, short period markets and long period markets. Can the students give me
examples of each? When you make purchase of a good from Dubai to Cameroon and the good is
transported by Sea, what period market is it? Compare this transaction with the purchase of the
same product from domestic manufacturer transported immediately to your home the same day.
What period market will this be called?
Markets based on status of sellers: On the basis of the status of sellers the markets are
broadly classified into three categories: primary, secondary and terminal markets.
Markets based on nature of competition: The most important form of market classification
is based on the nature of competition, i.e., the buyer-seller interaction. The competition in the
market depends upon three main factors: Substitutability factor, Interdependence factor, Ease of
entry factor.
3.3.2: Types of Customers in Consumer Market
All of us are customers/consumers in some sense or other. Each of us can be a shopper, buyer,
user, purchaser, and/or end-user. Hope you know that?
Let us first understand the words customer and consumer to begin with. I will do this by giving
you two concrete examples. And I will explain in the domain of marketing management for you
understand better.
Suppose a person bought a BICEC Bank’s automobile loan then he is a ‘consumer’ of BICEC
Bank’s products and services. True or True?. The answer is a big True. Now understand this, the
person could also be a potential consumer or a prospective customer for BICEC’s other products
as well as for competing products and services in the market. Do you agree? If you agree, then a
Customer can be said to be a potential Consumer. Do you understand? However, if you check very

8. 8
well, Consumer and Customer are mentioned as synonyms in the thesaurus and across some
literature. Therefore, we will use Customer and Consumer interchangeably across this unit. A
consumer is anyone who typically engages in any one or all of the activities mentioned in the
definition. Traditionally, consumers have been defined very strictly in terms of economic goods
and services wherein a monetary exchange is involved. This concept, over a period of time, has
been broadened. Some scholars also include goods and services where a monetary transaction is
not involved and thus the users of the services of voluntary organizations are also thought of as
consumers. This means that organizations such as UNICEF, PLAN, or political groups (CPDM)
can view their publics as “consumers.”
Note: Let me bring this to your attention. As caution, the term consumer is used for both personal
consumers and organizational consumers and represents two different kinds of consuming entities.
The personal consumer buys goods and services for her or his personal use (such as cigarettes), or
for household consumption (such as sugar, furniture), or for just one member of the family (such
as a pair of shoes for the son), or a birthday present for a friend (such as a pen set). In all these
instances, the goods are bought for final use, referred as “end users” or “ultimate consumers.”
Anyone who regularly makes purchases from a store or a company is termed as “customer” of that
store or the company. Thus a customer is typically defined in terms of specific store or company.
I write as on to MBA professional business students. I know that there exist a general knowledge
as a consumer may not be a customer while a customer may not be a consumer. This is correct but
not sufficient for your level.
Permit me say here that, we can also outline five different types of customers based on their
purchase habits. They are:
Loyal Customers: True loyal customers are difficult to get. Be careful with those who
come and tell you I am your most loyal customer. Forget such people, because you notice a loyal
customer they don’t market themselves. They are those customers who purchase the same brands
or from the same stores again and again. Companies and stores need to communicate with these
customers on a regular basis by mass media, telephone, mail, email, etc. They can influence a
brand’s marketing mix decisions. Nothing will make a loyal customer happier than appreciating
them and showing them how much you value it. If a loyal customer is happy, chances are high that
he/she will recommend a brand or store to others.
Discount Customers: These ones, we have them everywhere. They don’t buy necessarily
for quality but for quantity. So when they here that Santa Lucia is selling 1bag of rice on 50%
discount, they go and buy it even if another bag is still at home. They come only when they know,
the shop is offering discount. They are the ones that help ensure your inventory is turning over and
due to this they are a key contributor to cash flow. However, such customers can also raise cost-
of-sales as they are more inclined to return product
Impulse Customers: I like these customers. In pidgin we say, “I see yam, I like kam, I
buyam”. Hope you understand? These are the ones, who pick up products or brands on impulse,

9. 9
i.e., they make decisions just before the purchase, usually on the spot. In French we say they decide
to purchase “la-la-la” meaning “right there”. Are you still there? Now many marketers go for this
types of customers. For a brand or store, there is nothing more exciting than assisting an impulse
customer and having them respond favorably to our recommendations. Brands want to target their
displays towards this group of customers because they will provide them with a significant amount
of customer insight and knowledge.
Need-based Customers: these customers are driven by a specific need. They will buy a
brand only if it fulfils their need. Or when they enter a retail store, they will look to see if they can
find that brand that fulfils their need. If not, they will leave right away. They buy for various
reasons such as a specific occasion, a specific need, or an absolute price point. These customers
can be converted into loyal customers if their need is taken care of immediately and they are
delighted. Marketers may not find them to be a lot of fun to serve, but, at the end of the day, they
are the greatest source of long-term growth for a brand. For a brand or a retailer, it is important to
remember that need-based customers can easily be lost to competitors.
For example the bathing “Lux soap” may lose out a customer to “Pharmapur soap” or a retailer
may lose out a customer to Internet shopping or a different retailer. To overcome this issue, positive
communication is required, usually in form of innovation and improved service.
Wandering Customers: Most of us have fallen in to this category once in our life. As the
name goes so is how the customers are. Have you gone to visit your friend for the weekend and
realized that you forgot your tooth brush? If yes then you were a wondering customer in that
quarter the following morning. For a retail store, such customers make the largest segment in terms
of traffic, while, at the same time, they make up the smallest percentage of sales. There is not a
whole lot you can do about this group because the number of Wanderers you have is driven more
by your store location than anything else. Especially, if a retail store is located in a mall or a
shopping centre, it will attract more number of such customers.
3.3.3: Buyer or Consumer’s Behavior
Whether you like it or not, a product or service should have a consumer to buy it. True or True?
Thus, it is very necessary to make a study on the behavioral aspect of the consumer i.e., there must
be reasonable answer to the following questions: What does a consumer buy? Where from does he
buy? When does he buy? How much does he buy? and Why does he buy? These questions trouble
my spirit and I want us to throw more light on it. Pulse and give it a thought as well. These
questions! I don’t just know what to say, because any company which is bale to answer these
questions effectively has no competitor. However let’s see what they are.
Though the first four questions can be answered by carrying out statistical data based market
research known as ‘retail audit’, ‘prescription audit’, etc., the answer to the last question is indeed
a very difficult one and can be answered by carrying out ‘behavioral research’. But how effective
is it, remains a jigsaw puzzle to most organizations. For the human mind is the only thing that

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cannot be tested in the lab. Nevertheless the answer to the ‘Why’ of consumer behavior is the most
important factor to any organization while designing a successful product/service and its marketing
strategy. But no matter how important it could be, the problem is how you get the truth from the
consumer in this age of deception. The consumers themselves are skeptical of releasing the truth
about themselves. For example no one except you can truly explain why you made PAID-WA
LSC Yaoundé your choice. I repeat no one! At times even the customers cannot truly explain the
reason for their purchase. In this situation, we say “it cannot be explain, but it cannot be denied”
Are you still there? It beats my imagination and I’m sure you too are involved on “the why of
consumer behavior”. Why will he buy today and tomorrow he does not buy? Is it because of me
or what could be the reason for his change of mind? Did I not serve him well or was I ignorant of
his particular need? What went wrong, where and why? These are but a few of the questions that
keep humanity on a stand-bye. I have so much to say but for the sake of time and space, may be
you will get the rest during my lectures.
3.3.4: General Characteristics of Consumer Behavior
Please be reminded that a consumer is a person who purchases goods and services for his own
personal needs or for the sake of those around him. Consumer Behavior can therefore be defined
as those acts of ‘individuals’ which are directly involved in making decisions to spend their
available resources (time, money, energy) in obtaining and using goods and services. Now let us
look at some of the characteristics.
The reason for studying consumer behavior lies in its general characteristics, as it may affect
present day business operation. These characteristics can be described as below:
The Consumer is the King.
The Consumer Behavior can be known but not definitely
The consumer’s behavior can be influenced but only to a certain extend
3.3.4.1 Why Study Consumer Behavior?
It will help to segment the market usefully
It will aid in development of an effective marketing mix
It will help to assess new market opportunities.
3.3.4.2 What Influences Consumers’ Buying Decision Process?
Consumers’ buying behavior is influenced by cultural, social, personal and psychological factors.
The cultural factors exert the broadest and deepest influence. See figure 3.1

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3.3.5: Buying and Purchase Decision Process
Buyer decision processes are the decision making processes undertaken by consumers in regard to
a potential market transaction before, during, and after the purchase of a product or service.
Specifically, marketers must identify who makes the buying decision, the types of buying decisions
and the Steps in the buying process.

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3.3.6: Factors Influencing Consumer Behavior
3.3.6.1 Cultural Factors
Culture is a complex amalgam of symbols (attitudes, beliefs, values, language, etc.) and artefacts
created by a society and handed down from generation to generation. The way people perform
their biological activities such as eating is culturally determined. Thus, a hungry Cameroonian
consumer may like to eat “Fufu and Eru’ whereas a hungry American consumer may like to eat a
hamburger, followed by a Coke. Cultures do change over time; changing gender roles are the latest
cultural trends. There is a diffusion of culture across countries since we live in a global village.
But these things you will need to know about culture: Culture shapes behavior, Culture is a social
phenomenon, Culture is adopted, Culture sets values, and Increase in the trend of cross-cultural
activities, Culture is a strong determinant of marketing strategy.
Example: American culture stresses achievement, success, efficiency, progress, material comfort,
etc., whereas a typical African culture emphasizes peace, harmony, truth, forgiveness, service and
love for father land etc.
3.3.6.2 Social Factors
Consumers’ behaviors are determined to a great extent by social forces and groups such as
reference groups, family etc.:
Reference groups: Groups of people who interact formally or informally influencing (direct or
indirect) each other’s’ attitudes and behavior. Membership groups are groups of people having a
direct influence on a person. There are two types of membership groups: primary and secondary.
Primary groups: Interact regularly and informally, e.g., family, friends, neighbors and co-
workers.
Secondary groups: Interacts occasionally and formally, i.e. trade unions, professional
associations, members of socio-cultural societies.
People are significantly influenced by their reference groups both for product and brand choices;
sometimes mainly on choice of brand in such items as furniture and clothing, choice of product in
such items as beer and cigarettes, or both choices in such items as automobiles and color
televisions. Marketers also try to reach opinion leaders in these reference groups. These opinion
leaders are persons who have significant influence on large number of members of the group, or
the head of a religious order. Professional brand/product endorsements in the media by celebrities
are one way of influencing consumer buying behavior.
Example: People are likely to use/ prefer the brands endorsed by their favorite celebrity.
Family: Consumers’ family members are the most influencing reference groups, which shapes his
buying behavior.

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Now it is observed that there is a shift in the buying decision centre i.e., the family member who
has major influence on the buying decision. Earlier it used to be the eldest male member of the
family who decided on purchase of house/flat, car, etc., while the female members decided major
household products but nowadays these types of decision patterns are changing when female
members (even children) have strong influence on such purchase as real estate, car, etc., which can
be attributed to the impact of education/media advertising.
Roles & Status: The buying behavior of an individual depends on the type of role an individual is
expected to play while purchasing, e.g., an individual play the role of a father while buying
birthday gifts for his son or the same individual is a husband buying an anniversary gift for his
wife. Each role carries a status e.g., the individual mentioned above could be the Managing
Director of an MNC or a teacher in a primary school.
Social Class is again a stratification a society built on a hierarchical order governed by wealth,
position and resultant status. Members of the same class share similar values, interests and
behavior.
Each society gets stratified into number of social classes which represents a hierarchy of prestige.
The ancient venue system based on caste is gradually fading, but it is still a force to reckon with
in Cameroon, especially in the hinterland.
Formation of social classes is a multi-dimensional and dynamic process. A general three class
system exists (a) Upper class (15%), (b) Middle class (65-70%) and (c) Lower class (15-20%)
Members of each class share similar values, interests and behavior.
Social classes tend to have distinct preferences in products and brands in areas like clothing, home
furnishing, automobiles, leisure activities, etc.
3.3.6.3 Personal Factors
The buyer’s own characteristics such as age, stages in life cycle, occupation, lifestyle, etc., are
again determinants of his buying behavior.
Age: A person’s behavior and habits change as he grows older; for example, a child’s deep
interest in toys and games gets transformed into collecting material objects automobiles and houses
as he grows to adulthood, and in later life may again shift away from material things due to
changing priorities.
Stages in Life Cycle: Consumption is shaped by the family lifecycle, for example a young,
independent bachelor will normally exhibit a different pattern of consumption from that of a
middle aged family man with dependents to look after.
Life Style: The patterns, in which people live, spend time and money, are collectively
called their lifestyles. It is the ‘whole person’ as expressed in activities, interests and opinions. The
Marketers’ task is to find the relationships between their products and lifestyle groups.

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3.3.6.4 Psychological Factors
Personality and Self Concept: A person’s buying behavior is influenced by his/her
personality traits.
Personality: A set of unique psychological traits leading to relatively consistent
and enduring pattern of response. Self-confidence, Dominance, Sociability, Autonomy
Defensiveness, Adaptability
Assumption: Consumers are likely to choose brands whose brand personality
matches with their own.
Self-Concept: How a person thinks of himself/herself, that is, the perception one
has towards own self. This is based on the assumption “I am what I have”.
Example: A rich illiterate person may have a huge (showcased) collection of classics in literature
to give an appearance of a learned person.
Motivation: Motivation is the force that energizes behavior, gives direction to behavior
and underlies the tendency to persist.
Theories of Motivation
Freud’s Theory: Sigmund Freud maintained that human behavior is shaped
by the psychological forces which are rooted in the unconscious state of his/her
mind.
Maslow’s Theory: According to Abraham Maslow, human needs are
arranged in hierarchy and people will try to satisfy their most important needs first.
Hertzberg’s Theory: Fredrick Hertzberg developed a two factor theory that
distinguishes dissatisfiers and satisfiers. The absence of dissatisfiers is not enough,
satisfiers must be present to motivate a purchase.
Learning: Learning is viewed as a relatively permanent change in behavior occurring as a
result of information or experience, both direct and indirect. Schiffman and Kanuk have defined
consumer learning as:
“The process by which individuals acquire the purchase and consumption knowledge and
experience they apply to future related behavior.”
There are two basic approaches to learning: (1) behavioral approach, and (2) cognitive learning
approach. The emphasis of behavioral learning is on external environmental stimuli, which are
responsible for eliciting the behavior and minimize the importance of internal psychological
processes. Behavioral learning considers stimulus – response relationship as leading to learning,
and cognitive learning is based on the premise that learning also occurs as a result of mental
activity.

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Attitudes: According to Krech and Crutchfield, “An attitude is an enduring organization of
motivational, emotional, perceptual, and cognitive processes with respect to some aspect of our
environment.” In the context of consumer behavior, Schiffman and Kanuk have defined attitude
as “a learned predisposition to behave in a consistently favorable or unfavorable way with respect
to a given object.”
Consumers have attitudes toward many things that are relevant to products, brands, companies,
celebrities, advertisements, etc. Attitudes are viewed as quite important in the object evaluation
process, products, or companies and can be favorable or unfavorable feelings and behavioral
inclinations. Research supports the assumption that attitudes strongly affect consumer behavior.
Perception: Perception is the process by which an individual selects, organizes, and interprets
stimuli into a meaningful and coherent picture of the world. Stimuli may include products,
packages, brand names, advertisements and commercials, etc. Perception is an individual process
and depends on internal factors such as an individual’s beliefs, experiences, needs, moods, and
expectations. Perception is also influenced by the characteristics of stimuli such as the size, color,
and intensity, and the context in which it is seen or heard.
3.4 Conclusion
The aim of marketing is to meet and satisfy target customers’ needs and wants. The field of
consumer behavior studies how individuals, groups, and organizations select, buy, use, and dispose
of goods, services, ideas, or experiences to satisfy their needs and desires. Understanding consumer
behavior is never simple, because customers may say one thing but do another. They may not be
in touch with their deeper motivations, and they may respond to influences and change their minds
at the last minute.
Still, all marketers can profit from understanding how and why consumers buy. In fact, not
understanding your customer’s motivations, needs, and preferences can lead to major mistakes.
This is what happened when Kodak introduced its Advanta camera—a costly bust. The company
proudly touted it as a high-tech product, but the marketplace was dominated by middle-aged baby-
boomers. In midlife, fancy new technology generally loses its appeal, and simplicity begins to edge
out complexity in consumer preferences, so Advanta sales did not skyrocket
Such examples show why successful marketers use both rigorous scientific procedures and more
intuitive methods to study customers and uncover clues for developing new products, product
features, prices, channels, messages, and other marketing mix elements.
3.5 Summary
Consumer Behavior is the study of why, how, what, where, and how often do consumers buy and
consume different products and services. It tries to understand the process followed by consumers
in making product and brand choices.

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The consumers follow a decision process characterized by problem recognition, information
search, alternative evaluation, purchase decision and post-purchase behavior. Consumers also play
various roles in the purchase process, namely the role of initiator, influencer, gate-keeper, decider,
buyer, user, preparer, maintainer and disposer in the context of a purchase decision.
An individual consumer’s decision to purchase a product is influenced by a number of variables,
which can be classified into four categories, namely cultural, social, personal, and psychological
factors.
Cultural factors have a broader consumption context through which the consumer learns the
significance of consumption.
Sub culture, social class, nationality and religion are some of the cultural issues influencing the
decision making process. The social factors include family, reference group, roles and status of
individual customer in influencing his consumption behavior. Consumers differ from one another
in terms of their sex, age, education, income, family life-cycle stage, personality and lifestyle and
other personal characteristics, which influence their buying behavior.
3.6 Review Questions
❖ “It important to consider the behavior of consumers while deciding on the marketing mix
of the company”. Explain with suitable examples.
❖ What is post purchase behavior? In what product purchase situations, post purchase
dissonance or dissatisfaction is more likely?
❖ Name two reference groups that are important to you. How do these influence your buying
behavior?
❖ Explain the personal factors that affect the consumer’s behavior.
3.7 References
❖ Jagdish N. Sheth, “An Investigation of Relationships among Evaluative Beliefs, Affect,
Behavioral Intention, and Behavior,” in Consumer Behavior: Theory and Application, eds.
John U. Farley, John A. Howard, and L. Winston Ring (Boston: Allyn & Bacon, 1974),
pp. 89–114.
❖ Mary C. Gilly and Richard W. Hansen, “Consumer Complaint Handling as a Strategic
Marketing Tool,” Journal of Consumer Marketing, Fall 1985, pp. 5–16.
❖ Ramphal and Gupta, Case and Simulations in Marketing, Galgotia, Delhi
❖ S. Jayachandran, Marketing Management, TMH, 2003
3.8 Task
❖ Read the notes on unit 3.3.2: (Types of Customers in Consumer Market) and elaborate in
details but not more than 5 pages.

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3.9: Reading Assignment/Suggested Readings:
❖ Read this article by Martin Fishbein, “Consumer Choice Behavior: An Experimental
Approach” jstor.org, 1969, Accessed from https://www.jstor.org/stable/3150078 June 27, 2019
3.10 Reading Assignment Supplementary Source
❖ You Tube Video lecture: Consumer Behavior.
❖ Video Highlights: - Marketing Lectures on the foundations of marketing lectures
❖ Note: To access the video, copy and paste this Playlist
❖ URL: https://youtu.be/bDFFO6Zaqyo?t=101.
❖ Source: https://www.youtube.com/watch?v=bDFFO6Zaqyo. Retrieved 27 June 2019.
3.11 Written Assignment
❖ Do you think that changing status of women in society has brought about changes in the
family decision process? Substantiate your answer
3.12 Discussion Assignment
❖ Discuss any two situations that show the influence of culture/sub-culture on consumer
purchase behavior.
3.13 Graded Quiz
1. Sugar, salt, fairness cream and ice cream are examples of products sold in the.......................
market.
2. Future markets and spot markets are market types classified on the basis of.......................
3. On the basis of the status of sellers the markets are broadly classified into three categories:
primary, secondary and....................... markets.
4. A consumer is a potential customer. True or False
5. Customers in consumer markets are also referred to as the ultimate consumers. True or False
6. Loyal customers are likely to engage in negative word-of-mouth communication. True or False
7. Impulse consumers are more likely to pick up products from Point-of-purchase displays. True
or False
8. Wandering customers make up the largest percentage of a retail store’s traffic and sales. True
or False
9. Problem recognition is....................... process.
(a) One time (b) One way
(c) Tedious (d) Continuous

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10. You want to buy a credit and you are sure that you are not going to buy ICICI Bank’s card or
HDFC Bank’s card. These brands are a part of your....................... set.
(a) Evoked (b) Inept
(c) Intercept (d) Inert
11. Which of these is not a marketer dominated source of information?
(a) Advertisements (b) Company website
(c) Blogs (d) Dealers
12. When an individual evaluates products based on his emotions, it is referred to as.......................
evaluation.
(a) Affective (b) Cognitive
(c) Behavioral (d) Intense
13. Your family is a kind of....................... group that influences your purchase decisions.
14. A business association is a kind of....................... group.
15. An individual’s lifestyle can be ascertained by his activities, interests and.......................
16. ....................... refers to how an individual think about himself/herself.