Consumer behavior can be defined as how individuals and groups select, purchase, use, and dispose of goods and services to satisfy their needs and wants. It is influenced by cultural, social, personal and psychological factors. Understanding these factors is important for marketers to develop effective marketing strategies. Consumer decision making involves problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.

1. CONSUMER BUYING
BEHAVIOUR

2. Page  2
WHAT IS CONSUMER BEHAVIOUR?
 Consumer Behaviour can be defined as the sum total of how
individuals and groups recognize and determine their needs
and how they purchase and experience goods and services to
meet those needs.
 It includes:-
 What
 Where
 Why
 When
 How

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Marketing Strategy
 Marketing Strategy is basically the answer to the question,
How will we provide superior customer value to our target
customer?
 Product
 Price
 Communication
 Distribution
 Service

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Role of Consumer Behaviour in Marketing Strategy
 Marketing strategy
 Design, implementation, and control of a plan to influence
exchanges to achieve organizational objectives

5. Design
 In consumer markets, these are designed to
 Increase chances of favorable thoughts and feelings of particular
products, services and brands among consumers
 Increase chances of trial and purchase
 Developed by manufacturers, retail stores, and other direct
marketers to
 Increase chances of favorable thoughts and feelings among
consumers about purchasing from them
 Increase chances of actual purchase
 Developed by companies that make funds available for purchase
to
 Increase chances of usage of services offered by consumers
5

6. Implementation
 Marketing strategies involve developing and presenting
marketing stimuli directed at selected target markets to
influence
 What they think
 How they feel
 What they do
 Essence of marketing strategy is to understand markets,
develop and implement superior strategies to attract and hold
them profitably
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7.  Powerful force on consumers and society at large
 The power of marketing and the ability of consumer research and
analysis to yield insight into consumer behavior should not be
discounted or misused
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8. Consumer Perception
 According to S.P. Robbins: Perception may be defined as a process by
which individuals organise and interpret their sensory impressions in order
to give meaning to their environment.
 According to Joseph Reitz, “Perception includes all those processes by
which an individual receives information about his environment- seeing,
hearing, feeling, tasting and smelling”
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9. FACTORS IFLUENCING PERCEPTION
 Factors in Perceiver (Internal Factors)
a. Needs and Motives
b. Self-concepts
c. Beliefs
d. Past Experience
e. Current Psychological State
f. Expectations
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10.  Factors in the Target or Perceived (External Factors)
a. Size
b. Intensity
c. Frequency
d. Status
e. Contrast
 Factors in The Situation
a. Physical Setting
b. Social Setting
c. Organizational Setting
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11. Elements of Perception
 Sensation
When a person is exposed to any of the marketing stimuli or an ad, the first reflex is
initiate in him is known as sensation.
Example: when a person come across a beautiful ad of a Mercedes Benz on the
centre spread of a magazine.
 Absolute Threshold
the absolute threshold is the amount of intensity needed to detect a difference
between something and nothing.
Example: Suppose you are driving on the highway and a billboard is in the
distance. A billboard might have the most entertaining copy ever written, but this
genius is wasted if the print is too small for passing motorists to see it from the
highway.
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12.  Differential Threshold/ JND
The minimal difference that can be detected between two similar stimuli is called
the differential threshold or the Just Noticeable Difference.
Example: Hindustan Unilever increases the price of a 1.5kg package of Surf Excel
Blue Detergent from Rs. 110 to Rs. 120.
 Subliminal Perception
Suppose a person sitting at a movie and is exposed to messages like Eat popcorn
and Drink Coke. However, each message is shown on the screen for only a fraction
of a second, so short a time that you are not consciously aware of them.
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13. Influence of Perception on CBB
 Selective Distortion:
It is changing or twisting currently received information. It occurs when a person
receives information inconsistent with personal feelings or beliefs.
 Selective Retention:
In this, a person remembers information inputs that support personal feelings and
beliefs and forgets inputs that do not.
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14. CONSUMER LEARNING
 According to E. R. Hilgard, Learning is a relatively permanent change in behaviour
that occurs as a result of prior experience.
 The process of acquiring the ability to respond adequately to a situation which may
or may not have been previously encountered.
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15. COMPONENTS OF LEARNING
 Motivation
 Cues
 Response
 Reinforcement
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16. THEORIES OF CONSUMER LEARNING
 Behavioural/ Connectionist learning Theory
Classical Conditioning: Ivan Pavlov A Russian Physiologist Experiment
Operant Conditioning: In which desired voluntary behaviour leads to a reward or
prevents puishments
 Cognitive Learning Theory
The importance of perception, problem solving and insight
 Social Learning Theory
Learning comes from watching models- presents, teachers, peers, motion pictures,
television performers, bosses. An extension of operant consequences
 Involvement Theory
importance of sort of things in his or her life.
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17. INFLUENCE OF LEARNING ON CB
 Recognition and Recall
 Cognitive Responses to Advertising
 Attitudinal and Behaviuoral Measures Brand Loyalty
 Brand Equity
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18. INFORMATION PROCESSING
 Just as a computer processes information received as input, so too does the
human mind process the information it receives as input.
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19. INFORMATION PROCESSING AND MEMORY STORES
 Sensory Store
 Short-Term Store
 Long-Term Store
 Rehearsal and Encoding
 Retention
 Retrieval
 Interferences
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20. CONSUMER MOTIVATION
According to Dalton E. Mcfarland, Motivation refers to the way in which urges,
drives, desires, aspirations, and striving or needs direct, control or explain the
behaviour of human beings.
Key elements:
Intensity
Direction
persistance
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21. Motives
 According to William J. Stanton, A motive may be defined as a drive or an urge for
which an individual seeks satisfaction.
 According to Berelson and Steiner, A motive is the inner state that energizes
activities or moves and that directs or channels behaviour to work goals.
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22. MASLOW’S NEED PRIORITY MODEL/
MASLOW’S HIERARCHY OF NEEDS THEORY
 There are two types of needs – Basic and Secondary or acquired.
 Basic needs are important for survival where as secondary needs are not so
important.
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23. 23
Self
Actualization
Esteem Needs or Ego
Needs (Prestige, Status,
Self Respect
Social Needs (Affection,
Friendship, Belonging)
Safety and Security Needs
( Protection, Order,
Stability)
Basic Physiological
Needs (Food, Water, air,
shelter)

24.  Maslow has further classified the needs as lower order needs and higher order
needs.
 First two needs in the hierarchical order are lower needs and rests three are higher
order needs.
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25. INFLUENCE OF MOTIVATION ON CONSUMER BEHAVIOUR
 Functional Motives
 Aesthetics/ Emotional Motives
 Social Motives
 Situational Motives
 Curiosity Motives
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26. INVOLVEMENT
 Consumer involvement refers to the degree of information processing or extent of
importance that consumer attaches to a product. The degree of involvement has a
very significant effect on consumer behaviour. When more expensive products are
to be purchased, the consumer gets more involvement in purchase process but he
may not be equally involved in a product which is less expensive.
 High Involvement
 Low Involvement
26

27. Factors Influencing Consumer Involvement
 Previous Experience
 Interest
 Perceived Risk of Negative Consequences
 Situation
 Social Visibility
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28. CONSUMER ATTITUDE
 According to Bem, Attitudes are likes and dislikes.
 According to Allport, Attitude is learned predispositions to respond to an object or
class of object in a consistently favourable or unfavourable way.
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29. Nature of Attitude
 Attitude have an object
 Attitudes have Direction, Degree and Intensity
 Attitude have Structure
 Attitudes are learned
 Attitudes are Predispositions
 Attitudes have a Relationship with behaviour
 Attitudes are Consistent
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30. INFLUENCES OF ATTITUDE ON CB
 Negative Learned Attitude
 Positive Learned Attitude
 Negative Experience Attitude
 Positive Experience Attitude
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31. Personality
 The term personality has been derived from Latin word PERSONARE which means
to speak through. Personality is used in terms of influencing others through
external appearance.
 According to Schiffman and Kanuk, Personality can be defined as those inner
psychological characteristics that both determine and reflect how a person
responds to his or environment.
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32. Nature of Personality
 Impact behaviours and actions
 Psychological and Physiological
 Personality Reflects Individual Differences
 Personality is consistent and Enduring
 Personality can change
32

33. EXTERNAL INFLUENCES
 Group Behaviour
 Social Class
 Opinion Leaders
 Reference Groups
 Family
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34. Group Behaviour
 According to David H. Smith, “A group is a set of two or more individuals who are
jointly characterised by a network of relevant communications, shared sense of
collective identity and one or more shared dispositions with associated normative
strength”.
34

35. Nature of Groups
 Two or More Persons
 Collective Identity
 Interaction
 Shared Goal Interest
35

36. Social Group Influencing on Consumer Behaviour
 Family
 Reference Groups
 Opinion Leaders
 Roles and Status
36

37. Social Class
 Social Class is defined as the division of members of a society into a hierarchy of
distinct status classes, so that members of each class have relatively the same
status and members of all other classes have either more or less status
37

38. Social Class Categories
 Upper- Upper Class
 Lower-Upper Class
 Upper-Middle Class
 Lower-Middle Class
 Upper-Lower Class
 Lower-Lower Class
38

39. Social Class Influence on CB
 According to the types of social classes
39

40. Applications of Social Class Influences
 Advertising
 Market Segment
 Distribution
 Product Development
40

41. Opinion Leaders
 Opinion leaders are individuals whose ideas and behaviour serve as a model to
others. Opinion leaders communicate messages to a primary group, influencing the
attitudes and behaviour change of their followers.
 Opinion Leader is a process by which the opinion leader informally influences the
actions or attitude of others, who may be opinion seekers of opinion recipients.
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42. Characteristics of Opinion Leadership
 Higher Social Status:
Opinion leaders have approximately the same social class position as non-leaders,
although they have higher social status within the class.
 Media Exposure:
 Knowledge
 Social/ Gregarious
 Innovator
 Familiar
 Individuated
42

43. Types of Opinion Leaders
 Generalized Opinion Leaders
 Market Mavens
 Surrogate Buyers
 Purchase Pals
43

44. Influence of Opinion Leadership
 Product-Involvement
 Self-Involvement
a. Gaining Attentions
b. Showing Connoisseurship
c. Having Inside Information
d. Suggesting Status
e. Spreading the Gossips
f. Seeking Confirmation
g. Asserting Supiority
 Other Involvement
 Message Involvement
44

45. Reference Group
 Reference group can be defined as actual or imaginary, institutions, individuals or
groups having significant relevance on the target individual’s evaluations,
aspirations or behaviour.
 A reference groups is an individual(s) or group(s) that influences the shaping of an
individual’s opinion, belief, attitude and/or behaviour.
 Some of them are Normative Reference Group and Comparative Reference
Group.
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46. Types of Reference Group
 Friendship Group
 Shopping Group
 Work Groups
 Virtual Groups or Communities
 Brand Communities
 Consumer Action Groups
46

47. Influence of Reference Groups
 Compliance: Necessity of the beliefs and values considered
 Identification: Group beliefs and values followed while living in group
 Internationalization: Group Beliefs and Value can be the same at individual level
47

48. Culture
 Culture is everything that is socially learned and shaped by the members of a
society.
 Culture is a society’s personality.
 Culture is the sum total of learned beliefs, values and customs that serve to direct
the consumer behaviour of members of a particular society.
 Beliefs consists of the very large number of mental or verbal statements (i.e. I
believe…) that reflect a person’s particular knowledge and assessment of
something (another person, a store, a product, a brand)
 Values also are beliefs. Values differ from other beliefs.
 Customs are covert modes of behaviour that constitute culturally approved or
acceptable ways of behaving in a specific situations. Customs consist of everyday
or routine behaviour. Thus, while beliefs and values are guides for behaviour,
customs are usual and acceptable ways of behaving.
48

49. Factors Affecting Culture
 Social Factors:
a. Reference Groups
b. Family
C. Roles and Status
 Personal Factors:
a. Age and stage in the lifecycle
b. Occupation and Economic Circumstances
c. Personality and Self-concept
d. Lifestyle and Values
49

50. Role of Culture in Influencing Consumer Behaviour
 The impact of culture is so natural and automatic that influence on behaviour is
usually taken for granted.
 Culture can exist and sometimes reveal itself at different perceived or subjective
levels. There are three levels of subjective culture are as follow:
Level1. Supranational
Level2. National
Level3. Group
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51. SUBCULTURE
 Subculture is defined as broad groups of consumers within a society’s culture
having similar values which distinguish them from the rest of society
 Subculture can be distinctive because of the age, ethnicity, class, location and/or
gender of the members.
 The qualities that determine a subculture as distinct may be linguistic, aesthetic,
religious, political, sexual, geographical or combination of factors.
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52. Types of Subculture
 Nationality Subculture
 Religious Subculture
 Geographic and Regional Subculture
 Racial Subculture
 Age Subculture
 Gender as a Subculture
52

53. Role of Subculture in Influencing CB
53

54. FAMILY
 Family is defined as two or more persons related by blood, marriage, or adoption
who reside together.
 Although families sometimes are referred to as households, not all households are
families.
 Example: a household might include individuals who are not related by blood,
marriage or adoption. Such as unmarried couples, family friends, roommates.
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55. Family Specific Characteristics
 Mobility
 Geographical Location
 Children
 Marriage
55

56. Types of Family
 Married Couple
 Nuclear Couple
 Extended Family
56

57. Functions of Family
 Economic Well-being
 Emotional Support
 Suitable Family Lifestyle
57

58. Family Life Cycle & Marketing Strategy
 Bachelorhood
 Honeymooners
 Parenthood
 Post Parenthood
 Dissolution
58

59. CONSUMER DECISION-MAKING
 Introduction:
 The key to influencing the purchase process are understanding purchase
intention and the situational influences.
59

60. Buying Role of Consumers
 Initiator
 Influencer
 Decider
 Gatekeeper
 Buyer
 User
60

61. Consumer Decision Making Process
 Problem/ Need Recognition
 Information Search
 Evaluation of Alternatives
 Purchase Decision
 Post Purchase Behaviour
61

62. Diffusion Of Innovation
 According to Rogers, Diffusion is a process by which an innovation is
communicated through certain channels over time among the members of a social
system.
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63. Diffusion Process
 Innovation
 Communication Channels
 Social System
 Time
63

64. Consumer Adoption Process
 Stages in Consumer Adoption Process
 Awareness
 Comprehension
 Attitude
 Legitimation
 Trial
 Adoption
64

65.  Categories of Adopters
 Innovators
 Early Adopters
 Early Majority
 Late Majority
 Laggards
65

66. Situational Influences
 Nature of Situational Influences
 Message Communication Situation
 Purchase Situation
 Usage Situation
 Disposition Situation
66

67. ORGANIZATIONAL BUYING
 Organizational/industrial/businessOrganizational/industrial/business
buying can be defined as the decision-buying can be defined as the decision-
making process by which formalmaking process by which formal
organizations establish the need fororganizations establish the need for
purchase products and services andpurchase products and services and
identify, evaluate and choose amongidentify, evaluate and choose among
alternative brands and suppliers.alternative brands and suppliers.
67

68. Objectives of Organizational Buying
 Non-Task Objectives
 Task Oriented Objectives
 Cost
 Quality
 Service
68

69. Organizational Buying Process
69
Post Purchase
Evaluation
Purchase Routine
Selection
Supplier
Selection
Proposal
Solicitation
Supplier Search
Product
Specification
General Need
Description
Problem
Recognition

70. Buying Centre/Decision Making Units
A buying centre includes all those persons in an
organization who become involved in the purchase
decision.
Identifying Key Members of Buying Centre:
1. Top Management Persons
2. Technical Persons (functions)
3. Buyers/Purchasers (Purchase or Materials
Department)
4. Accounts/Finance Persons
5. Marketing Function 70

71. Role of Buying Centre
Initiators
Users
Buyers
Influencers
Deciders
Approvers
Gate-Keepers
71

72. Consumerism: An Application of Consumer Behaviour
 Consumerism is a social force within the environment
designed to aid and protects the consumers by exerting legal,
moral and economic pressures on business.
 Consumerism is a social movement seeking to augment the
rights and powers of the buyers in relation to sellers.
 Let the seller beware or Caveat Venditor in comparison to the old age
Caveat Emptor or Let the buyer beware.
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73. Importance of Consumerism
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Improvement in
Supply
Educating Consumer
Better Relation with
Customers
No Unfair Trade
Practices
Better Support of
Government
Producers Rating
Product Rating
Liaison with Government
and Producers

74. Obstacles in Growth of Consumerism
Lack of LeadershipLack of Leadership
IlliteracyIlliteracy
Difficulty in Disseminating ConsumerDifficulty in Disseminating Consumer
EducationEducation
Cumbersome Legal ProcessCumbersome Legal Process
Lack of Effective Implementation ofLack of Effective Implementation of
Legislative MeasuresLegislative Measures
74

75. Factors Contributing to Consumerism
 Globalization
 New Organizational Technologies
 Unprecedented Market Competition
 Misleading and Deceptive Advertising
 Unfair Trade Practices
75

76. Thank You
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