The document discusses various concepts related to consumer behavior including motivation theories like Maslow's hierarchy of needs, learning theories, perception process, consumer segmentation, brand loyalty, and factors that influence consumer behavior such as personality, culture, social class and reference groups. It also provides definitions of key terms from various consumer behavior textbooks and models like the perceptual process model. The references listed cover popular consumer behavior textbooks for further reading on concepts discussed.

1. •Consumer Behaviour and Marketing Strategy, nature
and scope of Consumer Behaviour
•Market segmentation and Consumer Behaviour.
•Learning - nature, conditions relevant to high and
low involvement strategies, characteristics and
types of learning,
•Brand loyalty, Brand equity & leverage.
•Perception - Process, interpretation, Perception and
marketing strategy. Perceptual process and buying
behaviour.
•Perception - Elements, Just notice able difference -
its application to Consumer Behaviour, Perceptual
organization and defense, consumer imagery.

2.  Kurder, Consumer Behaviour, PHI/Pearson.
 Schiffman.L.G. & Kanak.L.L., Consumer Behaviour,
PHI/Pearson.
 Loudon.D, Consumer Behaviour, Concepts & Applications,
Albert Biutta, McGraw Hill.
 Ingel, Roger & Blackwell, Consumer Behaviour.
 Schiffman and Kaunuk “Consumer Behavior”-Prentice-Hall of
India.
 Sheth Mittal “Consumer Behavior-A Managerial perspective-
Thompson
 NK Sahani, Meenu Gupta “Consumer Behavior”-Kalyani
Publishers.
 Suja R Nair “Consumer Behavior –Text and cases-Himalaya
Publishing House.

3.  Business orientations:
◦ 1. Production (Focus on production and production
related activities)
◦ 2. Sales (Focus on increasing sales.
◦ 3. Promotion(Efforts to increase sales)
◦ 4. Consumers (Focus upon consumers needs and
aspirations

4.  Who buys?
 How do they buy?
 When do they buy?
 Where do they buy?
 Why do they buy?
 How often they buy?

5. Leon G. Schiffman and Kanuk
 “Consumer behavior is the study of how
individuals make decisions to spend their
available resources (Time, Money and Efforts)
on consumption related items. It includes the
study of what they buy, why they buy it, when
they buy it, how often they buy it and how
often they use it”.

6. S.A. Chunnawalla
 “Consumer behavior refers to the behavior of
consumers in deciding to buy or not to buy or
use or not to use or dispose of or not to
dispose of the products which satisfy their
needs.

7.  Suja R Nair
“Consumer Behavior can be defined as all
psychological, social and physical behavior of
all potential consumers as they become aware
of, evaluate, purchase, consume and tell
others about products and services”

8.  “It is the process of dividing the total
heterogeneous market into relatively distinctly
homogeneous sub-groups of consumers with
common needs or characteristics and selecting
one or more segments to target with distinct
marketing program”.
 A market segment is a portion of a larger market
in which the individuals, groups or organizations
share one or more characteristics that cause
them to have relatively similar product needs.

9. Sl.
No
Bases Examples
1 Geographic
Segmentation= Area/place
North, South, West, East
Karnataka, Andra, Tamil nadu,
Kerala
2 Demographic
Segmentation=
Demographic variables of
people
Age, gender, family size, family life
cycle, occupation, education,
religion, nationality etc
3 Psychographic
Segmentation =
personality characteristics
Ambitious, confident, aggressive,
impulsive, modern, conservative,
gregarious, loners, extrovert,
introvert
4 Life style segmentation Life, spend time and money, social
events, vacation, entertainment,
Work, likings, hobbies, Recreation,
entertainment, shopping, travel etc.,

10. Sl.
N
o
Bases Examples
5 Behaviorist Segmentation Occasion, benefits sought, user
status, usage rate, loyalty status,
buyer readiness, attitude etc.,
6 Benefit Segmentation=specific
benefits expected by
consumers
In tooth paste market= new
benefits like fresh breath, decay
prevention and white teeth have
emerged
7 Demographic and
Psychographic segmentation
(Hybrid)=Both
Age, gender, family size, family
life cycle, occupation, education,
religion, nationality etc
(Demographic) Ambitious,
confident, aggressive, impulsive,
modern, conservative, gregarious,
loners, extrovert,
introvert(Psychographic)

11. SL.
No
Bases Examples
8 Geo-Demographic North, South, West, East
Karnataka, Andra, Tamil nadu,
Kerala (Geographic) Age, gender,
family size, family life cycle,
occupation, education, religion,
nationality etc (Demographic)

12.  Difficult to define learning.
 No consensus about learning by learning theorists.
 Cognitive Theorists –” it is a function of purely
learning process”
 Behavioral Theorists-” It is a result of responses that
occur as a result of exposure to stimuli”
 Marketing view Point” Consumer learning is a process
by which individuals acquire the purchase and
consumption knowledge and experience they apply to
future related behavior”

13.  1. It is a process – reading, observation,
thinking, real life experiences etc.,
 2. Mostly intentional
 3. Happens incidentally –it is intentional, un-
intentional and incidental.
 4. It is comprehensive – It includes simple to
complex learning

14.  Motivation (stimulates learning)
 Cues (directs motivation)
 Response (reaction to drive/cues)
 Re-inforcement (repetition of response)

15. Behavioral Learning Theories is purely based upon
Input and output (Input=stimulus and
Output=Response).
Not concerned with the process of learning
Behavioral Learning Theories having relevance to
marketing are:
1. Classical Conditioning.
2. Instrumental Conditioning.

16. 1. Classical Conditioning:
“Both Animals and Human beings are passive
entities who could be taught certain
behavior through repetition or conditioning”

17. 1. Classical Conditioning: (Pavlov an Learning
Model)
“Russian Psychologist Ivon Pavlov experimented how a dog
responded to various conditional and unconditional stimuli's”
Hunger of the Dog: (Drive)
Ringing Bell & Giving meat: (Cue)
Saliva secreted: (Response)
Drive: (Strong internal urge)
Cue: ( External stimuli)
Response: (Reaction to the stimuli)

18. 2. Instrumental Conditioning:
“Consumer learns by trial and error process in
which some purchase behavior results in
favorable rewards than other purchase
behavior”
“ A favorable behavior motivates individuals
to repeat specific behavior”

19. 2. Instrumental Conditioning:
Try Brand A
Try Brand B
Try Brand C
Try Brand D
Unrewarded
Legs too tight
Unrewarded
Tight seat
Unrewarded
Baggy in seat
Rewarded
Perfect fit
Stimulus
Situation
(Need good
jeans)
Repeat behavior

20.  According to cognitive theorists “learning
happens as a result of thinking and problem
solving”
 “Learning involves complex mental
processing of information and emphasizes
the role of motivational and mental processes
in producing desired response”.
 Among the cognitive theories Involvement
theory is important.

21.  Involvement Theory:
 Is Result of split brain theory.
Human brain has two hemispheres:
Left hemisphere and right.
Left: Reading, speaking etc
Right: Images/pictorial

22.  Accordingly “Individuals passively process and
store non-verbal/pictorial information without
active involvement”
Therefore:
 TV viewing=is Not active
 Newspapers/magazines=is highly
active
“Highly visualized TV commercials induce purchase
behavior”

23.  Many factors influence a consumer’s
behavior.
 The level of involvement varies from low
involvement to high involvement
 We think about many products we want to
buy but did not buy
 Sometimes we look at products, compare
them, and then decide not to purchase

24.  Low-involvement decisions are, however,
typically products that are relatively
inexpensive and pose a low risk to the buyer
if the buyer makes a mistake by purchasing
them.
 Ex: we routinely buy our favorite brand of
toothpaste, not thinking much (Low effort)

25.  High -involvement decisions are, however,
non-repetitive products that are relatively
expensive and pose a high risk to the buyer if
the buyer makes a mistake by purchasing
them.
 When it comes to the car, you might engage
in extensive problem solving but, again, only
be willing to consider a certain brand or
brands.

26.  1.The consumer is not informed of the
product or service offering.
 2.The consumer is not aware about the
various decision criteria used to evaluate the
product or service offering, and he is also not
aware of the various brands that are available
and from which to evaluate.
 3.The purchase process involves significant
effort on part of the consumer. Examples:
Jewellery, electronic goods, Real estate and
property etc.

27.  1.The consumer is familiar of the product or service
offering; but he is unaware of the various brands.
 2.The consumer is aware of some brands and also of the
various criteria used to evaluate
 the product or service offering; he is unaware of the new
brands that have been introduced.
 3.He has not evaluated the brands amongst the awareness
set and has not established preferences amongst the
group of brands.
 4. The purchase process is more of a recurring purchase
and it involves only a moderate effort on part of the
consumer.
 Examples: A laptop replacing a desktop.

28.  1.The consumer is well informed and
experienced with the product or service offering.
 2.The consumer is aware of both the decision
criteria as well as the various brands available.
 3.The purchase process involves no effort on part
of the consumer. It is simple and the process is
completed quickly; purchases made out of habit.
These are routine purchases. Examples: Staples,
Cold drinks, Stationery etc.

29. Sl.
No
Parameters High
consumer
efforts
Moderate
consumer
efforts
Low
consumer
efforts
1 Consumer Involvement High Medium Low
2 Time taken to make decisions High Low to high Low
3 Information gathering Yes Yes No
4 Information sources Many Few Few or none
5 Awareness and
knowledge of Decision criteria
No No Yes
6 Awareness and knowledge of
Alternative brands avaiable
Somewhat Yes Yes
7 Evaluative criteria Complex Moderate Simple
8 Brands considered Many Few One (repeat
purchase)

30.  1. Physical behavior
 2. Symbolic Learning and problem Solving
 3. Affective Learning

31.  1. Physical behavior
 We learn many physical behaviors to respond
to a situation e.g. learn to walk , talk ,
interact with others, and also the method of
responding to various purchase situations.
 Consumers learn certain physical activity
through the process of , imitation. They
mimic the behavior of other individual such
as celebrities.

32.  2. Symbolic Learning and problem Solving
◦ Thinking involves the mental manipulation of symbols
representing the real world to form meanings.
◦ This leads to insight (that is relationships of products
with problems)
◦ For example we may be interested in buying an alarm for
car due to but after some insight knowledge that our car
is always in secured parking we may decide not to waste
money and spend it for some thing else.

33.  Affective Learning
 People learn to like and value certain elements
and dislike others from their environment.
 This means that consumers learn many of their
wants, needs, motives as well as what products
satisfy these needs.
 Learning also influence the consumers in
developing a favorable or unfavorable attitudes
towards some product.

34.  A Brand includes a name, sign, symbol, logo
etc which is used to distinguish the
product/service with competitors .
 It conveys a promise: Ex

35. Sl.No Brand Promise
1 Maruti 800 Economical, Fuel efficient car for higher
middle class customers
2 Maruti Zen Rich, Young upwardly mobile people
3 Cielo Family car of the young rich
4 Contessa,
Maruti zen
Cielo
Corporate cars
5 Mercedez Benz Car of the super rich
6 Tata sumo Utility vehicle for rough-n-tough conditions

36. Brand loyalty in the commitment of the consumers
towards a brand to make repeat purchases again and
again.
 Brand loyalty is a result of consumer behavior and is
affected by a person's preferences.
 Loyal customers will consistently purchase products
from their preferred brands,
 Companies will often use different marketing
strategies to cultivate loyal customers, be it is
through loyalty programs (i.e. rewards programs) or
trials and incentives (ex. samples and free gifts).

37. 1. Hard Core Loyals
2. Soft Core Loyals
3. Shifting Loyals
4. Switchers

38.  1. Hard core Loyals: very committed,
undivided loyalty, speak for the brand.
 2. Soft core Loyals: Loyal to 2 to 3 brands,
divided loyalty.
 3. Shifting Loyals: shifting nature from one
brand to other.
 4. Switchers: No loyalty, fickle minded, keeps
on changing

39.  Perception is how we see the world around
us.
Schiffman and Kanuk:
“Perception is a process by which individuals
selects, organizes and interprets stimuli into
a meaning and coherant picture of the world”.

40. Perceiver
Receiving
Stimuli
Selecting
Stimuli
Organizing
Stimuli
Reacting to
stimuli
Checking
stimuli
Inter
preting
stimuli
Object
Situation

41. 1. Receiving Stimuli: sense organs
(eye,ear,nose,skin,tongue) receive stimuli
internally from within and externally from
environment
2. Selecting Stimuli: Response will not be for all
stimuli. To respond, stimuli needs to be
selected.

42. 3. Organizing Stimuli: Process of arranging bit
of information into a meaningful whole is
organizing.
4. Interpreting Stimuli:
a) Perceptual set (Previously held beliefs)
b) Attribution (Individuals give reasons for their
behavior)

43. c) Stereo Typing: (People follow the group)
d) Halo Effect (Attributing good qualities whom
we like and bad qualities whom we dis-like)
e)Perceptual Context (context in which object
is placed)
f) Perceptual Defence (Tendency to put defence
when confronted with unacceptable stimuli

44. g) Implicit Personality Theory
(Human traits are associated with one another
Ex: hard working with honesty)
h)Projection (People tend to see their traits in
others)

45. 5. Checking Stimuli: perceiver of stimuli
verifies whether his interpretations was
correct or not.
6. Reacting to Stimuli:
Reaction could be favorable or unfavorable

47. •Motivation - Nature, motivational strategies,
theories and their relevance, marketing
strategies based on motivational conflict.
•Personality - Psycho-analytical neo-Freudian
and social approaches to personality
•Understanding consumer diversity, Brand
personality, Self and self image.

48. “Forces that make people behave in particular
ways. It encompasses pressures and
influences that trigger channelized and
sustained consumer behavior”
“Inner drive that is sufficiently pressing and
directing a person to seek satisfaction of a
need”

49.  “Motivation is the driving force for human
behavior guided by Cognition (Thinking
process), Learning, Group and cultural
influences”
 “Purpose of mans motives, values, attitudes,
needs, emotions and behavior is to Protect,
satisfy & enhance”

50. Features:
1. Needs are never fully satisfied.
2. New needs comes when old needs are
satisfied.
3.Extent of fulfillment of needs affects
human behavior.
4.Non fulfillment of a need may influence
the need negatively.
5.Needs vary among individuals.

52. Maslow’s Theory of Needs:
Hierarchy in Human Needs:
According to Maslow human beings try to satisfy five types of
needs:
a. The physiological needs:
Basic needs like food, clothing, water, shelter.
Top the hierarchy,
They enjoy the highest level of motivation till they are
satisfied.

53. Maslow’s Theory of Needs:
b. The Safety needs:
Next in hierarchy only after psychological
needs.
It is a need to be free from physical danger
and self protection.

54. Maslow’s Theory of Needs:
c. The Social needs
Man is a social human being
Expects to belong and accepted by various
groups
Look forward for belongingness and love from
people around

55. Maslow’s Theory of Needs:
d. The Self-Esteem needs
 Concerned with fulfilling needs relating to
self-respect, self-confidence, personal worth
etc.
 Prestige, power/control etc., in human beings

56. Maslow’s Theory of Needs:
e. The Self-actualization needs:
Need to develop intrinsic capabilities
Need to enhance potentialities
Need to become what is possible.

57.  Motivational conflict is one important source
of frustration.
 It results when two or more motives drive
behaviour towards incompatible goals.
(Contradicting goals)
 “Psychologists treated conflict in terms of
positive tendencies to approach certain goals
and negative tendencies to avoid others.”

58.  Are you trying to avoid (negative) or achieve (positive)
outcome?
 What would be an outcome for a consumer to avoid? (too
many calories, fat content, high price, unclean clothes)
or
 to pursue? (good taste)
 In Reality, Many Outcomes are in Conflict
 Eg: high calorie food which tastes great! leads to need for
low calorie food which tastes great leading to fake fat.

59.  They identified four major ways in which
these tendencies could oppose one another
and, thus, defined four major types of conflict
as :
 (i) Approach-approach conflict
 (ii) Avoidance-avoidance conflict
 (iii) Approach-avoidance Conflict
 (iv) Multiple approach-avoidance

60.  (i) Approach-Approach:
 In this type of conflict, a person is faced with
two attractive alternatives, only one of which can
be selected.
 EX: There are two courses that you want to take,
but they are scheduled for the same time.
Approach-approach conflicts are usually easy to
resolve. You choose one course and decide to
take the other next semester.
 Approach- approach conflict become serious
only if the choice of one alternative means the
loss of an extremely attractive alternative.

61. (ii) Avoidance-avoidance Conflict:
 A second type of conflict, avoidance-avoidance,
involves two negative goals and is a fairly
common experience.
 EX:
 A boy must do his arithmetic homework which he
dislikes or get a spanking.
 A student must spend the next two days studying
for an examination or face the possibility of
failure.
 A woman must work at a job she intensely
dislikes or take the chance of losing her income.

62.  (iii) Approach-avoidance Conflict:
 Approach-avoidance, is often the most difficult to resolve
because, in this type of conflict, a person is both attracted
and repelled by the same goal object. Because of the positive
valence of the goal, the persons approach it; but as it is
approached the negative valence becomes stronger.
 People in these conflicts approach the goal until the negative
valence becomes too strong, and then they back away from it.
Often however, the negative valence is not repellent enough
to stop the approach behaviour.
 In such cases, people reach the goal, but much more slowly
and hesitatingly than they would have without the negative
valance; and until the goal is reached, there is frustration.
Even after the goal is reached, an individual may feel uneasy
because of the negative valence, attached to it. Whether a
person is frustrated by reaching a goal slowly or by not
reaching it at all, emotional reactions such as fear, anger,
resentment commonly accompany approach-avoidance
conflicts.


63.  (iv) Multiple Approach Avoidance Conflicts:
 Many of life’s major decisions involve multiple
approach- avoidance conflicts, meaning that several
goals with positive and negative valences are
involved.
 Suppose a woman is engaged to be married;
suppose, further, that the goal of marriage has a
positive valence because she loves the man she will
be marrying. Suppose, on the other hand that
marriage is repellent to her because it will mean
giving up an attractive offer of job in another city.
 With respect to her career, the woman is attracted to
new job, but also repelled by the problems it will
create for her marriage.

64.  Derived from a Latin word “Persona” Meaning
Mask which the Greek actors wore while
acting.
According to MUNN
“Personality is the most characteristic
integration of an individuals structure, modes
of behavior, interest, attitudes, capacities,
abilities and aptitude”.

65. 2.According to Gordon Allport
 “Personality is the dynamic organization
within the individual of those psycho-
physical systems that determine his unique
adjustment to his environment”.

66.  1. Individual Differences
 2. Consistent and Enduring
 3. Change in Personality

67.  1. Freudian Theory
 2. Neo-Freudian Theory

68.  Sigmund Freud Theory is known for
psychoanalytic theory
 It is the corner stone of modern psychology
 It states that “Unconscious needs or drives
are at the heart of human motivation and
personality”
 Human personality consists of three
interacting systems ID, SUPER EGO AND EGO

69.  1. ID: “Source of all driving psychic energy
and innate to man, his instincts, needs and
desires and impulses that demands
immediate gratification.”
 But, man in bound by social norms.
 He cannot express his impulse.

70.  2. Super-ego: “Internal representative of
traditional values & customs”.
 It is the moral sense and conscience of
personality

71.  3. Ego: “ It is the planner, thinker and the
executor of personality”
 It controls and re-directs ID so that
gratification is achieved through reality
principles.

72. Neo-Freudians (Alfred Adler, Harry Stack
Sullivan and Karen Horney) Disagreed
personality theory of Freud
According to Neo-Freudians social
relationships are fundamental to the
formation and development of personality

73.  According to Alfred Adler “human beings
seek to attain various rational goals which he
calls as life style. He emphasizes on the
individuals efforts to overcome feelings of
inferiority and to strive for superiority”.

74. According to Harry Stack Sullivan
“People continuously attempt to establish
significant and rewarding relationships with
others. He stressed on the individuals efforts
to reduce tension such as anxiety”.

75. According to Karen Horney “individuals can be
classified into three personality groups.
Complaint, Aggressive and Detached”.(CAD)
Complaint individuals move towards others.
Aggressive individuals move against others and
Detached individuals move away from others.

76.  The global marketplace is a celebration in
diversity. People differ not only among
cultures, but within cultures.
 Once newcomers sought assimilation
(Culture of a group resembles that of
another group culture) they now value
transnationalism.
 Multiculturism has become a major contributing
factor to the diversity of consumer behavior.

77.  Consumers differ not only in the usual
ways, but also in their activities and
interests, their preferences and opinions,
the foods they eat and the products they
buy.
 How do they know which people to target,
where and how to locate them, and what
message would be most effective? Through
consumer research.

78.  The cultural diversity of India manifests itself in
the 29 states (geographical territories) of the
country through food habits, languages spoken,
religious practices within the same religion and
the lifestyles of consumers.
 About 72.2% of the Indians live in over 6,38,596
hamlets (Human settlements) and only 1,00,000
of these hamlets have a population of more than
3,500) add to the cultural diversity.
 While around 54% of Indians earn less than one
dollar per day, there are consumers who
consume brands like Tag Heuer, Mont Blanc,
Mercedes Benz, Louis Vuitton, Baskin-Robbins
and Tropicana.

79.  There are around 15 million small retail
outlets (called as kirana shops) and modern
retailing in the form of supermarkets and
hypermarkets are steadily growing in major
metropolitan cities and tier two cities.
 “Marketers need to build a sound business
model after taking into consideration the
psychographics and cultural diversity aspects
of consumer segments.”

80.  Brand personality is nothing but personification of brand.
 It is a means of assigning human traits to a brand so as to
achieve differentiation.
 For instance:
 Allen Solley brand speaks about personality and makes the
individual who wears it stand apart from the crowd.
 Infosys represents uniqueness, value, and intellectualism.
 Dove as honest, feminist and optimist;
 Hewlett Packard brand represents accomplishment,
competency and influence).

81.  Brand personality needs to be differentiated
from brand image.
 Brand image are the tangible thoughts about
(physical and functional) the benefits and
attributes of a brand.
 Brand personality is the emotional
associations of a brand with the consumers
mind.

82.  Self-concept, is the totality of our beliefs,
preferences, opinions and attitudes organized
in a systematic manner, towards our personal
existence.
 Simply put, it is how we think of ourselves
and how we should think, behave and act our
various life roles.

83.  The self-concept theory holds many assumptions about
our personal judgment towards our selves. Here are some
of them:
 1. Self-concept is learned:
 One of the very basic assumptions of this theory is that no
person is born with a self-concept. Self-concept is
believed to have been develop as a person grows old.
 This means that our perceptions towards our selves can be
shaped and can be altered, and can also be affected by
environmental factors.
 In this sense, self-concept is actually a product of
socialization and development. A person may have a
perception of himself different from what other people
thinks of him.
 For example, an individual feels that he is generous while
others see him as a selfish person.

84.  2. Self-Concept is organized.
 A person may have numerous views about
himself. He may think that he is kind, patient,
loving and caring, or selfish, cruel, rude and
stubborn.
 No matter how many different perceptions a
person has on him , still, there is one
perception that facilitates all of these
insights, causing one organized self-concept.

85.  3. Self-concept is dynamic.
 As a person faces different situations and new
challenges in his life, his insight towards himself may
constantly change depending on the way he responds
to such life changes.
 We see things depending on our self-concept. We
behave according to how we see ourselves in a
situation.
 Therefore, self-concept is a continuous development
wherein we tend to let go of the things and ideas that
are not congruent to our self-concept, and we hold
on to those that we think are helpful in building a
more favorable perception of our personal existence.