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1. CONSUMER BEHAVIOUR
What products and services do we buy?
Why do we buy?
How often do we buy?
Fromwhere do we buy etc?
Are the issues which are dealt with in the discipline of consumer behavior
DEFINITION:-
Consumer behavior can be defined as these acts of individuals (consumers)
directly involved in obtaining, using and disposing of economic goods and services
including the decision processes that precede and determine these acts.
IMPORTANCE OF CONSUMER BEHAVIOUR FOR MARKETERS
1. Consumer behavior is helpful in understanding the purchasebehavior and
preferences of different consumers. As consumerswediffer in terms of our
sex, age, education, income, occupation, family set-up, religion, nationality,
social status.
2. To successfully marketto different market segments, the marketneeds
appropriatemarketing strategies which wecan be design only when he
understands thefactors which accountfor these differences in consumer
behavior and tastes.
3. In today’s world of rapidly changing technology, consumer tastes are also
characterized by fastchanges. Consumer behavior provides invaluableclues
and guidelines for marketers on new technological frontiers which they
should explore. For example- CTV in lieu of B/W TV
4. Consumer behavior is a process and purchaseforms onepart of this
process. Thereare various psychologicaland environmental factors which
influence this process, to the extent that the marketer can understand and
manipulate the influencing factors, he can predict the behavior of
consumers.

2. Thus the importance of consumer behavior lies in the fact that the behavior
can be understood and influenced to ensurea positive purchasedecision. The
marketing manager’s interestlies exactly here i.e. to ensurethat his marketing
strategy results in purchaseof the product.
TYPES OF CONSUMERS
All consumers can be classified as
 Personal
 Organizational
All individuals fall into the category of personalconsumer.
All business organizations, governmentagencies and bodies, non business
organizations such as hospitals, temples, and trusts are organizationalconsumers
of goods and services purchased for running the organizations.
BUYER VERSUS USER
Often the person who purchases the productis not the person who actually
consumes or uses the product.
Question – Who should be the subjectof study in consumer behavior?
Should we study buyer or consumer?
Many companies play safe and focus their promotion at both the user and the
buyer. For example- Maggi Noodles- Mother and Children

3. A SIMPLE MODEL OF CONSUMER BEHAVIOUR
I
N
P
U
T
External Influences
Marketing Stimuli Other Stimuli
 Product - Economic
 Price -Technological
 Promotion -Political
 Channel of distribution -Social
Process
Consumer Decision Making
Buyer Characteristics Buyer Decision
 Psychological
 Personal& -Process
 Cultural characteristics
O
U
T
P
U
T
Consumer Decisions & Actions
 Productchoice
 Brand choice
 Dealer choice
 Purchasetiming
 Purchaseamount
EXAMPLE- “A SIMPLE MODEL OF CONSUMER BEHAVIOUR”
You are on your way ‘home’ fromwork after a hot, long, tiring day.
 On the way you see a hoarding/ kiosk for a cola drink which promises to be
cool, refreshing and tasteful.
 This hoarding/kiosk provides you a stimulus to stop at the nearest cold
drink shop and drink a cola.
 All three brands (Pepsi, Cokeand Thums Up) are available at the shop at a
certain price.
 You can recall some association with each of the three brands fromthe
advertisements. You haveseen on media viz T.V., hoardings, newspapers,
magazines.

4. You buy a particular brand of cola and consume.
 The initial stimulus for this purchaseand consumption was provided by the
hoarding.
 This was further backed-up by other stimuli such as productdisplay in the
shop, watching other consumers buy a particular brand, a pop material,
earlier satisfaction with a given brand etc.
 Your responseto these stimuli results in the purchaseof a particular brand.
In between the process of receiving these stimuli and responding to
them, you went through a decision making process.
The stimuli, the process of decision making and responseconstitute
a simple model of consumer behavior.
DETAILED MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR
Cultural
Social
Culture Personal
Reference Groups Age & Life cycle Psychological
Sub-culture stage Motivation
Family Occupation Perception
Social Class Income Learning
Role & Statuses Lifestyle Beliefs & Buyer
Personality Attitudes
MOTIVE
When a need is sufficiently pressing, it directs the person to seek its satisfaction,
it is known as motive.
Primary Needs or motives
These are physiological needs which we are
born with. For example- need for air, water,
clothing & shelter.

5. Secondary Needs
These are our acquired needs, which we havedeveloped in responseto the
society & environmentwe live in. for example- need for power, prestige, esteem,
affection, learning, status etc.
MASLOW’S HIERARCHY OF NEEDS
Self
Actualization
Self Fulfillment
Ego Needs, Prestige, Status,
Success, Self respect
Social Needs, Affection, Friendship,
Belonging etc
Safety & Security Needs, Protection,
Stability etc
Physiological Needs
Food, water, Air, Shelter, Sex etc
Same product- Many segments- example- Bicycle
One- for community
Second- Recreational/Leisure Need
Third- Needof a healthaid

6. Fourth- for converting intorickshaw/cart
Example- Generally consumers tendtoperceivethe quality of perfumes onthe
basis of
 Package
 Brand name
 Price &
 Manufacturer’s image
PERCEPTION
Itcan be described as “how we see the world around us”
The different sights, sounds, smells, tastes & sensations thatwe feel are known as
stimuli. Each person recognizes, selects, organizes & interprets these stimuli in his
own individual manner based on his needs, values & expectations and this is
known as perception since each individual’s needs, motives and expectations are
unique. Thereforeeach individual perception is unique.
Perception helps to explain the phenomenon of why differentindividuals respond
differently to the samestimulus under the same condition.
As a marketing manager you are providing stimulus to your consumers through
the physicalshape, color, size, fragrance, feel, producttaste, packaging,
ads/commercials.
But we all have an in built, screening systemwhich helps us to ‘select’ &
‘recognize’ only the relevant stimuli & ignore all the others.
There are three aspects of perception:-
 Selective exposure
 Selective distortion
 Selective retention

7. SELECTIVE EXPOSURE
People are more likely to notice stimuli which relate to their immediate needs.
For the marketer, the implication is that he has to carefully and accurately identify
his potential customers sinceother customers arenot at all likely to notice the
stimuli having identified the potential customers, the marketer has to ensurethat
the stimuli are interesting enough to attract and hold their attention.
SELECTIVE DISTORTION
When you attempt to fit information to suityour own ideas or personalmeaning
the process is known as Selective Distortion. Thus a marketer may find that his
messageis often not received in the intended manner but it is twisted in different
ways by different consumers.
For example- Washing machines (Punjab), hair dye(goat- Rajasthan), Refrigerator
(for storing goods & services)
SELECTIVE RETENTION
People forget much of the stimuli which they receive and only retain that
information which reinforces their values and decision.
LEARNING
New Born- instinctive behavior
Adult- learned behavior
For example- housewifehas need for cutting down cooking time- PressureCooker
Influencing stimuli-
 Various advertisements
 Positive feedback (friend)
 Window display
 Discount

8. She buys and is satisfied with its performanceher responseto pressurecooker is
reinforced. Satisfied housewifemay settle for another productof same company
(say oven) i.e. generalization of response.
Consumers can be made to learn the desired behavior through an interplay of
motives, stimuli cues, responses and reinforcements.
BELIEFS AND ATTITUDES
A person’s belief- cooking oil ‘X’ has lowestfat content. Belief based on real facts
or notion or opinion- the person has.
A belief is a ‘descriptive’ thoughtthat a person has about something. The belief
that the customer has about a brand is important. Therefore it determine his
behavior towards buying and using the belief constitute the brand image and if
the customer has the wrong belief he is likely to generate negative image about
the brand.
The marketer mustensure that consumer haveall relevant and correct
information about the brand to facilitate formation of a positive image.
Attitude is defined as a mental, emotional or rational predisposition with regard
to a fact, state, person or an object. In the context of consumer behavior weare
studying the attitude of buyers towards all the relevant attributes of a productor
services as well as the marketer and markets.
Attitude is formed on the basis of learning, knowledge, information, education,
upbringing, thinking, lifestyle, experience, predisposition, belief, faith, outlook,
communication, observation, etc. Itcan be good or bad, optimistic or pessimistic,
positive or negative, broad or narrow friendly or unfriendly & so on. Itmay be
consistent, may change with severalexternal factors like time or environment,
may be influenced or even can influence another attitude.

9. DETAILED MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR
PERSONAL FACTORS
DEMOGRAPHIC FACTORS AND LIFESTYLESTAGE
Age influences and buyer’s decision the need for different products and services
changes with age.
 Babies and children need productlike milk powder, baby foods and toys.
 Young adult’s need- clothes, recreational and educational facilities,
transportation and a hostof other age and fashion related products.
 The first factor influencing a buyer’s decision is his age need for different
products changes with age.
 There are certain physiological differences between men and women which
result in their having different consumption needs. For example:- women
need certain specialized medical facilities, clothes and cosmetics. Their
requirement is different fromthat of men.
 Consumption behavior is also influenced by the specific stage of the family
life cycle.

10. DEMOGRAPHIC FACTORS AND LIFECYCLE STAGE
STAGE IN LIFE CYCLE BUYING/BEHAVIOUR PATTERN
Single stage- young, unmarried people, living
away from home
Few financial burdens. Spend on rent, food
very basic kitchen equipment/furniture
stereo systems etc
Young children newly married.
No children
Better off financially now, wife is usually
working, highest purchase rate, spend on
furniture, durables such as refrigerator, gas
stoves, vacation etc.
Full Nest- Ⅰ
Youngest child under-6
Spend maximum on home purchases,
interested in new products, influence by
advertising. Buy T.V., baby foods, cough,
medications, toys etc
Full Nest- Ⅱ
Youngest child over-6
Some wives return to work, better financial
position, buy large sized packs, education,
bicycles, house purchasing
Full Nest- Ⅲ
Old married couple with dependent children
Financial position still better, spend on
education, better furniture, cars, appliances
etc.
Empty Nest- Ⅰ
Older married couples, no children at home,
have head still working
Spend on travel, recreation, health care, self
improvement, home improvement etc
Empty Nest- Ⅱ
Older married, no children at home, head
retired
Drastic reduction in income, buy medical
appliances, Medicare products for health
Solitary survivor Likely to sell home, but income still good
Working Reduced income, spend on medical products

11. EDUCATION AND OCCUPATION
Education widens a person’s horizons, refines his tastes and makes his outlook
more cosmopolitan.
Occupation also shapes the consumption needs people following specialized
occupations such as- photography, music, carpentry etc need special tools and
equipment.
Further the status and role of a person within an organization affects his
occupation behavior. For example- chief executive buys 3 piece suits of best
fabric; handmade leather briefcasejunior manager in sameorganization may also
buy similar things- but compromises on quality.
INCOME
The income which a person earns is an extremely importantinfluence on his
consumption behavior. He may aspire to buy certain goods and services but his
income may become a constraint. Person’s attitude towards spending vs saving
and his borrowing power arealso important.
 Small size packaging in sachets is meant for LIG customers.
 Luxury products aremore income sensitive than necessities.
PERSONALITY
Personality is sumtotal of an individual’s psychologicaltraits, characteristics,
motives, habits, attitudes, beliefs and outlooks. Personality is the very essence of
individual differences in consumer behavior. Personality is defined as those inner
psychologicalcharacteristics that both determine and reflect how a person
responds to his environmental stimuli. Personality is enduring and ensures that a
person’s responsesareconsistentover time.
Different types of personalities can be classified and each type responds
differently to the samestimuli and personality can be used to identify and predict
that response.

12. For example- Charms cigarettes used by young, modern, carefree personality.
Potential marketer segment students and other young people.
Surf’s Lalitaji- A middle class traditional forthrightand objective housewifefor
appeal to a potential customer of surf.
LIFESTYLE
Lifestyles are defined as patterns in which people live; as expressed by the
manner in which they spend money and time on various activities and interests.
Lifestyle is a function of our motivations learning, attitudes, beliefs and opinion,
social class, demographic factors, personality etc.
Life style is measured by a technique known as psychographics. Itinvolves
measuring consumer’s responses to activities, interests and opinions (AIO) along
with collecting information on demographic factors.
LIFESTYLE DIMENSIONS
ACTIVITIES INTERESTS OPINIONS DEMOGRAPHICS
Work Family Themselves Age
Hobbies Home Social issues Education
Social Job Politics Income
Vacation Community Business Occupation
Entertainment Recreation Economics Family Size
Club Membership Fashion Education Dwelling
Community Food Products Geography
Shopping Media Future City Size
Sports Achievements Culture Stage in life cycle

13. Garden Vareli, Raymonds, Vimal textiles have based their promotional strategies
on lifestyles.
DETAILED MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR
CULTURAL FACTORS
 Culture-
The study of culture encompasses all aspects of asociety suchas its religion,
knowledge, language, laws, customs, traditions, music, art, technology, work
patterns, products etc. All these factors makeupthe unique distinctive
personality of eachsociety.
1. Formal learning
In which parents and elders teachchildrenthe proper way tobehave.
2. Informal Learning
In which we learnby imitating the behavior of our parents, friends, filmactors/
artists inaction.
3. Learning
In which instructions are givenabout the specific methodby whichcertain
things have to be done such as printing, dancing, singing etc.
Through a marketer caninfluence all the 3 types of learning throughhis
company’s advertising strategy. It is informal learning whichis most amenable
to such influences.
The kind of products and advertising appeals that canwork effectively ina
society dependlargely onits cultural background.
For Eg:- In Americansociety, individualism, freedom, achievement, success,
material, comfort, efficiency and practically are the values. Products/services
which fulfill these values are successfully marketedinAmerica.

14. In Indian society- conformity, spiritualism, respect for elders, traditionalismand
educationare few dominant cultural values.
However our society is undergoing acultural metamorphosis, some major
cultural shifts have far reaching consequences for the introductionof a vast
variety of new products and services. Some of these changes are-
 Convenience
 Education
 Physical appearance
 Materialism
Convenience
Withmore women joining the work force there is anincreasing demandfor
products like gas stoves, mixies, washing machine, precookedfood, fast food
outlets etc.
Education
People inour society today wishto acquire relevant educationandskills that
would helpimprove their career prospects, somany professional/career
orientedcentresare coming up.
Physical Appearance
Physical fitness, goodhealthand smart appearance are on a premium today so
slimming centres andbeauty parlors are mushrooming in major cities.
 Sub Culture
A subculture is an identifiable distinct, cultural groupwhichwhile following the
dominant cultural values of the overall society alsohas its own beliefs, values
and customs that set themapart from other members of the same society.

15. Sub cultural category Illustrativesubculture
Nationality Indian, Pakistani, Sri Lankan
Religion Hinduism, Sikhism, Islam, Christianity
Race Black, white, Asian
Age Young, middle aged, elderly
Sex Female, male
Occupation Farmer, teacher, doctor
Social class South, north, western
Geographic location South, north, eastern, westernIndia
These subcultures offer readymade market segments tothe marketer whocan
positionhis products tomeet the specific needs, motivation, perceptions and
attitudes of eachsub culture. However the marketer may needtomodify both
his product and advertising appeal tosuit their specializedneeds.
Each member of a society is a member of several groups( suchas elderly,
keralite, Christian, female, teacher.)
Social Class
Social classes canbe definedas relatively permanent andhomogeneous
divisions ina society whichindividuals or families sharing same values, life
styles, interestsandbehavior can be categorized. Social class is aconcept based
on distributionof status andthe categories are usually rankedina hierarchial
order ranging from low to high status. Social status is anidea basis for
segmenting the market.

16. Major social classes andtheir dominant characteristicsandbuying behavior
patterns
Social class Distinguishing
characteristics
Dominant consumption
patterns
UpperUpper Elite of society,aristocrats, or top industrialists,
inheritedwealth;well knownfamily background;
spend money lavishlybut in discreet,
conservative taste.
Spendon property, homes,best
educationfor children,frequent
foreignvacations, antiques,
jewellery,custommade cars
Lower Upper Top professionals,businessmanwhohave
earnedrather than inheritedmoney,style and
taste is conspicuousand flamboyant, theyseek
professionswhichwill reflecttheirstatus
Spendon large homeswith
flashyand expensive décor,best
educationfor children,
importedcars, latesthousehold
gadgets,5-star hotels.
UpperMiddle Professional careeristscomingfrom middle class
valuesof respectable buyingconformity,
emphasisis on good education,style is gracious
& careful.
Spendon buying quality
products, irrespective ofthe
category of product it is quality
which is the most important
feature,color TV, VCR, Maruti
car are some of the products
associatedwith this class.
Lower Middle White collar workerssuch as office workers,
small businessman,traders,value neatnessand
cleanlinessandwant theirhome and professions
to reflectthis
Spenda great deal of time
shoppingaround for best
bargain, they buy refrigerator,
B/W TV, scooter, motor cycle
etc
UpperLower Poorly educated,semi- skilledfactoryworkers,
they comprise the largestsocial class segment.
Their major motivationis security,purchase
decision,oftenimpulsive aboutexhibitsa high
degree ofbrand loyalty
B/W TV, gas stove,ceilingor
table fan are bought but largely
on hire purchase basis, if
available
Lower Lower Oftenuneducated,at the bottom of the society
and working as unskilledlabor, live from day to
day basis with little planningfor future.
Buy only the basic necessitiesof
life usuallybuy loose and
unbrandedproducts have no
comprehensionandvalue of
brands.

17. SOCIAL FACTORS
Reference Groups
The consumer’s decisiontopurchase and use certainproducts and services is
influencednot only by psychological factors, his personality andlife style, but
also by the people around him withwhom he interacts andvarious social
groups he belongs to.
A groupis definedas two or more people who interact toachieve individual or
common goals.
The 3 categories of groups are-
 Primary & Secondary groups- A primary group is one with which an
individual interacts ona regular basis and whose opinionis of importance
to him.
For eg:- family, neighbours, close friends, colleguesandco-workers
Secondary groups are those withwhichan individual interacts only
occasionally and does not consider their opinionvery important.
 Formal & Informal groups- Rotary, lions, Jaycees are well knownsocial
groups in our society. A formal group has a highly definedstructure,
specific roles andauthority positions andspecific goals. Aninformal group
is loosely definedand may have no specifiedroles andgoals. For eg-
meeting neighbours over lunchonce in a month, for friendly exchange of
news.
 Membership&Symbolic groups- A membershipgroupis one to which a
personbelongs or qualifies for membership. All workers ina factory
qualify for membershiptothe labour union. Symbolic group is one in
which an individual aspires tobelong but is not likely tobe recognizedas
a member. A head clerk inan office may act as if he belongs to the top
management group by adopting their attitudes, values andmodes of
dress etc.

18.  Reference groups- are usedin advertising toappeal todifferent market
segments, groupsituationwithwhichpotential customers canidentify
are used topromote products and services. Hiddeninthis appeal in the
subtle inducement tothe customer toidentify himself withthe user of
the product in question. The three types of reference groupappeals are
celebrities, experts andcommon man.
celebrities Filmstars & sport Heroes
experts Doctors, accountants, lawyers
Common man Lalitaji (surf)
Indirect reference groups comprise thoseindividualsor groups with
whom an individual does not have any direct face to face contact suchas
filmstars, TVstars, sportsmen, politician.
Direct reference groups are ones whichexert asignificant influence on
consumer’s purchase decisionandbehavior can be classifiedas
 Family
 Friendshipgroups
 Formal shopping groups
 Consumer actiongroups
 Work groups
Family – two families shape an individual’s consumption behavior.
1. Family of orientationis the family in whichan individual is born, consists
of parents, brothers andsisters.
2. Family of procreationconsists of consumer’s spouse andchildren. Within
the family, different members play different roles, marketers want tofind
out exactly the role playedby individual member. For eg- traditionally
wife purchases food, clothing and other householdsundries, Husband

19. plays a dominant role inthe purchase of automobiles/insurance children
are also beginning toexert their influenceonfamily purchase decisions.
TV, music system, personal computersetc.
Roles
An individual may participate inmany groups has positionwithineach
group can be definedinterms of activitieshe is expectedtoperform. For
eg:-
At workplace At home
Individual manager Spouse/parents
Requires 3 piece suit, tie,
leather shoes
Jeans/T-Shirt/Kurta
Pyjama
Reason To reflect status Informal/comfort
Status
Each role a personplays has a status whichis relative prestige according
to society. People buy and use products whichreflect their status.
Group Norms
The norms of a group are the implicit rules of conduct and behavior that
are expectedof its member.
For eg:- multinational company in India
Normfor office wear is shirt/tie eveninsummer
Marketers needtoidentify the various groups towhichpotential
consumers belong tomarket the products required.
Conformity
This implies that members of a group have adoptedattitudes and
behavior patterns that are consistent withthe group’s norms. Inthe

20. context of consumer behavior it refers tothe percentage of members who
knowingly use the same brand of product.
Opinion leaders
Apart from family, a consumer is influencedby the advice he receives
from his friends, neighbours, relativesandcollegues about what products
and services he shouldbuy.
This process of influencing is knownas the opinion leadershipprocessand
is describedas the process by which the opinionleaders normally
influences the actions andattitudes of others.
The advice of opinion leaders is sought incase of specific products. People
who have acquiredconsiderable knowledge andexperience inaparticular
fieldare consideredas opinionleaders inthat area.
Advertisers/marketers are thereforeconcernedwithreaching opinion
leaders.
Diffusion of Innovation
The acceptance of new products, brands and ideas is known as the
diffusionof innovation. Marketers are concernedwithspreador diffusion
of this innovation.

21. CONSUMER BEHAVIOR- DECISION
DECISION
In betweenthe stage of receiving the stimuli andresponding toit, the consumer
goes through the process of making his decision.
A decisionis the selectionof an alternative out of the several number of
alternatives available.
LEVELS OF CONSUMER DECISIONS
As a buyer are consumer, we are all the time making decisions suchas
1. What product to buy
2. Which brand tobuy
3. From where
LEVELS OF PURCHASERELATED CONSUMER DECISIONS FOR PERSONAL
TRANSPORT
ALTERNATIVE
2 wheel or 4 wheel vehicle
POWER DRIVEN
Scooter, motor cycle, moped, car, jeep
Brand level Scooter Car
Bajaj, Honda, Kinetic Maruti, Chevrolet
Motor cycle Jeep
Yamaha, Hero Honda, Bajaj M&M, Tata Sumo
Moped
Kinetic, Lunaetc

22. Type of Retail Outlet
 Company showroom, exclusive brand dealer outlet
 Multinational branddealer outlet
 Dealer outlet near home/recommended
 Dealer outlet withservicing facility
PROCESS OF DECISION MAKING
Making a decisionis arational and conscious process inwhichthe consumer
evaluates eachof the available alternativestoselectthe best amongst them.
Each decisionyou make involves anelaborate mental thought process, adegree
of active reasoning, thoughon the surface it may not always seentobe so.
For eg:- Daily Bread- Decisionvariable, brandquantity, retail outlet
Sofa set- Decisionvariable, far more innumber
 Readymade/made to order
 From shop/to be built at home
 Type of material and design
Three factors-
1. Involvement
2. Alternativedifferentiation
3. Time pressure
Which influence the degree of active reasoning undertakenby the consumer in
his process of decisionmaking.
INVOLVEMENT
When a product is perceivedtobe of great personal importance tothe
customer, suchas personal clothing, or its purchase involves agreat deal of
money or risk viz jewellery, car , home, company shares the level of

23. involvement is likely tobe very highthe consumer is likely tospenda great deal
of time before arriving at the final decision. Incontrast whenbuying items
which do not reflect muchon the consumer’s personality or their purchase
involves small amounts of money or the risk associatedwiththemis not high,
the degree of involvement of the consumer is likely tobe low.
For eg:- toilet soap, toothbrush. Biscuits, shoe polishetc.
TIME PRESSURE
When we are under pressure tomake a decisionquickly we cannot afford to
spenda long time finding out about the various products or brands. We
probably buy whichever is readily available
For eg:- purchase of car tyre/tube under emergency onthe road whenit bursts
and purchase when we needto buy tyres.
DIFFERENTIATION
When the consumer perceivesthat the various alternativeswhichare available
are very different fromone another in terms of their features andbenefits
offered, he is likely tospendmore time in gathering informationandevaluating
these different features.
On the other hand, in case of products which are not very different fromone
another either interms of their features or benefits offered, the consumer is
bound to perceive themas being almost the same and buy the first available
product/brandwhich satisfies his minimumexpectations.
TYPES OF PURCHASEDECISION BEHAVIOR- THREETYPES OF BUYING BEHAVIOR
 Routinisedresponse behavior
 Limitedproblemsolving
 Extended problemsolving
ROUTINISED RESPONSE BEHAVIOR (RRB)
This occurs whenthe consumer already has some experience of buying and
using the product. Consumers donot give much thought or time. When buying

24. such products and already have a preferredbrand. The degree of involvement in
buying suchproducts is low. Frequently purchasedandlowcost products such
as razor blades, coffee powder, toothpaste, soap, soft drinks etc fall in this
category.
Marketers dealing inproducts involving RRBmust ensure the satisfactionof
existing customers by maintaining consistent quality serviceandvalue.
LIMITED PROBLEM SOLVING (LPS)
In this type of buying behavior, the consumer is familiar withthe product and
the various brands available, but has no establishedbrand preferrance. The
consumer would like togather additional informationabout the brands to
arrive at him brand decision.
For eg:- Brandedrefinedoils (shopkeeper’s view)
LPS alsotakes place when a consumer encounters anunfamiliar brand ina
known product category. For eg:- Saffola
The marketer’s task ina situationwhere he is introducing anew brand in a well
known product category is to designa communicationstrategy that gives
complete informationonall the attributes of the brand thus increasing the
consumer’s confidence andfacilitating his/her purchase decision.
EXTENSIVE PROBLEM SOLVING (EPS)
EPS occurs when the consumer is encountering anewproduct category. He
needs informationon both the product category as well as the various brands
available in it.
The marketing strategy for suchbuying behavior must be suchthat it facilitates
the consumer’s informationgathering/learning process about the product
category and his own brand.
The marketer must be able toprovide his consumer witha very specific/unique
set of positive attributesregarding his ownbrandso that the purchase decision
is made in his favor.

25. The concept of EPS is most applicable tonew products. The product may be new
at the generic product concept level (magi noodles) or it may be an established
product concept but newfor a particular consumer (tribal exposedtoconcept of
toothpaste).
STAGES IN THE BUYER DECISION PROCESS
In making a purchase decisionthe consumer goes throughthe five stages of
1. Problemrecognition
2. Pre-purchase informationsearch
3. Evaluationof alternatives
4. Purchase decision
5. Post purchase behavior
However, incase of routine purchases, the consumer may skipthe second&
thirdstages and straight away go the stage of purchase decision.
 Problemrecognition- the buying process starts withthe buyer recognizing
a need or a problem
 Pre-purchase informationsearch- External &Internal
Internal- refers torecalling relevant informationstoredinthe memory.
External- refers todeliberateandvoluntary seeking of information,
recognizedthe product/brandunder considerationwhichcanbe from-
1. Personal sources- family, friends, colleagues, neighbors
2. Commercial sources- advertisements, retailers, salesperson
3. Public sources- seeing others, consumer informationcentres
EVALUATION OF ALTERNATIVES
Commonly usedcriteria
 Product attribute

26.  Relative importance
 Brand image
 Attitudestowards the different brands/alternatives under consideration
The stage of the buying decisionprocess gives the marketer achance to modify
his product offering inkeeping withthe relative importance attachedtoeach
attribute by various consumer segments, altering beliefsandattitudes about his
own brand and calling attentiontoneglectedproduct attributes.
PURCHASE DECISION
Consumer end up buying a brand which is not his most preferredbecause of
 Shopkeeper’s influence
 Preferredbrandnot available
 Attractiveincentive onother brand
POST PURCHASE BEHAVIOR
After purchasing the product if consumer finds that its performance/utility
matches up to his expectation, satisfactionoccurs.
Satisfactionwill reinforcecustomer’s perceivedfavorable image of the brand
which can get extendedtothe entire range of products manufacturedby the
company.
Customer may alsostrongly recommendthe brand toothers. However, if the
product is not upto his expectation, dissatisfactionresults. The customer may
decide tostopbuying other products of the company and informpeople known
to him/her about the poor quality performance of the product.