1 mba cb introduction 2015

1. CONSUMER BEHAVIOR 2015

2. Introduction
As a consumer we are all unique and this uniqueness is
reflected in the consumption pattern and process of
purchase. The study of consumer behaviour provides us with
reasons why consumers differ from one another in buying
using products and services.
We receive stimuli from the environment and the specifics of
the marketing strategies of different products and services,
and responds to these stimuli in terms of either buying or not
buying the product. In between the stage of receiving the
stimuli and responding to it, the consumer goes through the
process of making his decision.
Consumer Behaviour

3. Video: PepsiCo

4. Objective of this Session…
• Understand the development of the marketing concept.
• Define customer value, satisfaction, and retention.
• Exploring the link between marketing and Customer
orientation
• The definition, role and importance of consumer behavior for
a marketer
Consumer Behaviour

5. Objective of this Session…
• Identify the major factors that influence a consumer’s
purchase decision and behavior
• A simplified model of the consumer decision-making
framework
• To get an idea about societal marketing concept.
Consumer Behaviour

6. Consumer Behaviour
What is Consumer Behaviour? (Definition)
Consumer Behaviour is the study of individuals, groups or
organizations and the processes they use to select, secure, use and
dispose of products or services or experiences or ideas to satisfy
needs and the impacts that these processes have on the consumer
and society.

7. Video: Airtel

8. Why is CB important ?
Consumer Behavior dictates Marketing Strategy…
Knowledge of Consumer Behaviour = Successful Marketing
Tactics
(As CB is the key to planning and managing ever changing
Marketing Environment)
Consumer Behaviour

9. Why is CB important ?
As You / Firm…
Lack of knowledge of Consumer Behaviour = Big mistakes by
you and your firm!
Consumer Behaviour

10. Video: Tata nano

11. Marketing and Customer Orientation…
To introduce you to the concept of consumer behaviour, let us first
understand about the discipline of consumer behaviour in relation
to marketing.
What is Marketing?
Marketing on the one hand is a business philosophy and on the
other an action oriented process.
The philosophy - also termed as marketing concept - has its roots
in market economy.
Consumer Behaviour

12. Video: CEAT SUV Tyres

13. Consumer Behaviour
EXAMPLE IN INDIAN CONTEXT (All ATL & BTL Activities)
• TV Advertising (Electronics Media),
• News Paper, Magazine (Print Media),
• Out Door Advertising (Bill Boards, Hoardings),
• Mobile Van/Bus/Trains, Glow Sign boards , WALL Paintings etc.
This is supported by many promotional measures that persuade
people to try a Product in the form of advertisements, samples
and trial packs, demonstrations, point of purchase and may be
finally on suggestions.

14. Consumer Behaviour
There are four critical ideas that form the foundation of such an
economy: Marketing in turn is based on these four principles.
1. Individuals pursue their self-interest to seek rewarding
experiences
2. Their choices determine as to what would constitute such
experience, the choices themselves being shaped by personal
(taste) and external (cultural) influences.
3. Consumers enjoy the freedom to choose; they are self-
governing.
4. This freedom ensures free and competitive exchange between
“buyers and sellers”.

15. Video: Nescafe

16. Consumer Behaviour
Although the marketing environment helps in making Consumer/
Buyer aware of the product, it’s the marketing stimuli and other
stimuli, which will make the buyer, respond either positively or
negatively towards a particular product/service.

17. Video: PCJ_Photograph

18. Video: JLR

19. Consumer Behaviour
Thus Marketing can be defined as a ‘Process that aims at
satisfying individual and organizational needs by creating,
offering and exchanging competitively made products that
provide value to the buyers’
Today our focus is on customer. Objectives like revenue, profit,
market share, etc. are important, but they will flow only by
acquiring customer competence.

20. Consumer Behaviour
In our country particularly the customer, even as late as in 1980s,
were deprived of alternatives; he would uncomplainingly buy
whatever the seller dished out. Not anymore.
Today’s in 2015 choice empowered customer, supported by a
competitive environment, global quality, and new economic
realities decides the fate of the marketer.

21. Consumer Behaviour

22. Consumer Behaviour
The rules of marketing are so frequently changing as has never
been expected by the companies. Now the companies are
developing new set of marketing capabilities to survive in the
emerging competitive environment.
This shift in marketing can be attributed to factors like emergence
of competitive marketing environment in the wake of the process
of deregulation, privatization and globalization; recessionary
pressure forcing companies to frequently introduce new products,
which results in reduction in product life cycle and proliferation of
in brands.

23. Consumer Behaviour
Fast changing customers’ profile(including the fickle brand loyalty)
in terms of increase in their buying power and change in buying
pattern, which results in more & more urge for better products,
thus forcing companies to face rapid customers’ turnover ; and
advancement in IT , which has shifted the power from marketer to
customer by providing a greater amount of information practically
about anything which makes customer more active, cautious and
informed.

24. Consumer Behaviour

25. Consumer Behaviour
The concept of human behavior is all pervasive and has been
analyzed by experts in discipline of sociology, social psychology,
philosophy, psychology, anthropology, economics and management
from its different dimensions.
Thus Consumer Behaviour (CB) is an applied subset of human
behavior, which derives many theories from these disciplines.

26. Thank You!