Consumer behavior involves how individuals search for, purchase, use, and dispose of products and services. It is influenced by cultural, social, psychological, and personal factors. Marketers must understand consumer behavior to effectively target, position, and appeal to consumers. Advertising plays an important role in influencing consumer behavior by creating brand awareness, image, and loyalty. For advertising to be effective, it must understand consumer needs, target the appropriate audience, and convey the right message about a product's benefits.

2. CONSUMER BEHAVIOUR
• Behaviors that consumers display in searching for,
purchasing, using, evaluating and disposing of
products and services.
• Focused on how an individual consumers or
households make decisions to spend their available
resources ( Time, Money, Effort ) on consumption
related items.
• Study of When, Why, How and Where people do or
do not buy a product.
• A blend of psychology, Sociology, Social anthropology
and economics.

3. CONSUMER BEHAVIOUR AND
MARKETING

4. • Marketing is the art and science of influencing
consumer behaviour.
• Every aspect of marketing is tied to consumer
behaviour.
• Marketer need to understand the psychology of the
consumers.
• Customer value is the difference between all the
benefits derived from a total product and all the costs
of acquiring those benefits.
• Customer value requires the organisation to do a
better job of anticipating and reacting to customer
needs than the competitor.

5. • Buying behaviour includes
 Recognition of the problem (need to be met)
search for information
consideration of alternatives
purchase, consumption, disposal
• Marketers must be aware of the buying process
and consumer influences to be effective in
appealing to, and meeting consumer needs
• Marketers should also aim to create value in the
mind of the consumer by understanding what the
consumer values

7. MARKET SEGMENTATION
• Finding out what kind of consumers with
different needs exist.
• Consumers grouped according to their similar
needs and characteristics.
• These market segments are described in terms
of demographic, geographic location and
media preferences.

9. TARGETING
• Preferred segment based on ability to meet
the needs of this group.
• Choice depends on
• How well the segment is served by other
manufacturers ?
• How large is the segment
• Do the organisation has the strength to appeal
to a particular group of consumers.

10. POSITIONING
• How consumers perceive your product in
relation to others in the market
• Achieved through understanding the
customers and applying relevant marketing
mix strategies

11. MARKETING STRATEGY
• How an organisation will provide superior
customer value to a target market
• This requires the formulation of consistent
marketing mix which includes
 Product
 Price
 Promotions
 Place
 Service

12. THE PRODUCT
• Product is anything a consumer acquires or
might acquire to meet a perceived need
• Consumers generally buy for need satisfaction
not for physical product attributes.

13. PRICE
• Price is the amount of money paid to obtain
the right to use the product.
• Price sometimes serves as a signals of quality.

14. PROMOTION
• Marketing promotions includes advertising,
sales force, public relations packaging and any
other signals that the firm provides about
itself and the product.

15. DISTRIBUTION
• Distribution means having the product available where target
customers can buy it. This is essential to the product’s success.
• Good channel decision requires a sound knowledge of where
target customers shop for the product.

16. CONSUMER BEHAVIOUR AND ADVERTISING

17. Factors affecting consumer behavior
• Cultural and social • Psychological
influences influences
– Culture – Perception
– Social Class – Learning
– Reference groups – Motives
– Family – Attitudes
– Demographics – Lifestyles
– Geography

18. Cultural and social influences
• Culture
– Based on norms and values
• Norms – boundaries a culture establishes for behavior
• Values - broad preferences concerning appropriate
courses of action or outcomes
– Directly influences buying behavior

19. Cultural and social influences
• Social Class
– Determined by factors like income , wealth,
education, occupation, family prestige, value of
home, and neighborhood
– It is assumed that people in one class buy
different products for different reasons.

20. Cultural and social influences
• Reference Groups
– Collection of people used as a guide for behavior
in specific situations.
– Reference groups have three functions
• They provide information
• They serve as comparison
• They offer guidance

21. Cultural and social influences
• Family
– Family consists of two or more people who are
related by blood, marriage or adoption and live in
the same household.
– Family helps develop a lifestyle (how you spend
time and money and the kinds of activities you
value)

22. Cultural and social influences
• Demographics
– Are statistical, personal, social and economic
characteristics of a population including
• Age
• Gender
• Education
• Income
• Occupation
• Race/ ethnicity

23. Cultural and social influences
• Geographic location
– Difference in buying behavior exists between
different regions
– Buying behavior also differs urban areas and rural
areas.

24. Psychological Influences
• Perception
– The process by which we receive information
through our five senses and assign meaning to it.
• 3 sets of influences shape perception
– The physical characteristics of the stimuli
– The relationship of the stimuli to the surroundings
– The person’s state of mind.
• Some stimuli are selected over others
• Selective perception
– Screening out some information that does not interest us and
retaining that information that interests us.

25. Psychological Influences
• Selective exposure
– Seeking information that is in line with our beliefs, values,
experiences, biases, attitudes.
• Selective distortion
– Changing the meaning of information that is conflicting with
our beliefs
• Selective retention
– The process we go through to retain information

26. Psychological Influences
A little exercise

27. Activity - Perception

28. Activity - Perception

29. Activity - Perception

30. Activity - Perception

31. Activity - Perception

32. Activity - Perception

33. Activity - Perception

34. Activity - Perception

35. Activity - Perception

36. Activity - Perception

37. Activity - Perception

38. Activity - Perception

39. Activity - Perception

40. Activity - Perception

41. Activity - Perception

42. Activity - Perception

43. Activity - Perception

44. Activity - Perception

45. Activity - Perception
• Write down the ads which you remember.
• Write the reason for remembering every add.
• Discuss in class.

46. Psychological Influences
• Learning
– Perceptions lead to learning
– We learn something that we perceive and attach
meaning to it.
– Cognitive learning
• Perception -> Problem solving -> Insight
– Behavioral conditioning
• Classic conditioning
– Pairing one stimulus with another that already is
associated with a response
– e.g. associating sound of bell with end of school day
• Operant conditioning
– Voluntary occurrences of behavior that are then
rewarded , ignored or punished.

48. When you use a mobile while you drive, your head is somewhere else

49. Psychological Influences
• Motivation and Needs
– Motive
• An internal force that forces you to behave in a particular
way.
• Advertisers study buying motives.
– Need
• Basic forces that motivate us to do something
• Primary needs: requirements to maintain life
• Secondary: Acquired needs in response to our culture and
environment.
• Needs change over time.

50. When did you last buy and why?

51. Psychological Influences
• Attitudes
– A learned feeling you hold towards an object, a person
or an idea that leads to a particular behavior.
– Attitudes are resistant to change.
– Attitudes are learned, hence can be changed or
replaced.
– Attitudes may be positive or negative, weak or strong.

52. Psychological Influence
• Lifestyle
– The way a person spends his time and money and
the activities he likes to perform.

53. Role of consumer Behavior in
Advertising
• Advertisements play an essential role in creating an image of
a product in the minds of consumers.
• Advertising is basically a type of communication.
• It attempts to persuade potential customers to purchase or
consume a product or service.
• It is designed in such a way that it creates and reinforces
brand image and brand loyalty.
• Advertisements must be catchy and communicate relevant
information to consumers.

54. Contd…
• Understanding the needs of the consumer is really important
when it comes to creating the right advertisement for the
right audience.
• Advertising is usually important for triggering the first time
purchase of the product.
• it is only through advertisements; individuals are able to
connect with your brand.
• Identify your target audience. The advertisement in some way
must touch the hearts of the end-users for them to buy the
product.
• The advertisement must show what the product is all about. It
should, in a way give some kind of information about its price,
benefits, usage, availability.

55. • Mercedes, I phone advertisement ought to be classy
for people to recognize these products as status
symbols.
• Advertisements meant for younger people (college
goers, young professionals) ought to be colourful and
trendy for them to be able to relate themselves with
the product.
• Advertisements for insurance plans, medical
benefits, hospitals ought to be sensible as they
convey much serious information and target a
mature segment of individuals altogether.