This ppt would be useful for those wants to understand the internal factors affecting consumer behavior.

1. Prepared By
Mathew Lawrence

2. A CUSTOMER IS THE MOST IMPORTANT VISITOR ON OUR PREMISES,
HE IS NOT DEPENDENT ON US, WE ARE DEPENDENT ON HIM.
HE IS NOT AN INTERRUPTION ON OUR WORK, HE IS THE PURPOSE
OF IT.
HE IS NOT AN OUTSIDER IN OUR BUSINESSHE IS A PART OF IT.
WE ARE NOT DOING HIM A FAVOUR BY SERVINGHIM,HE IS DOING
US A FAVOUR BY GIVING US THE OPPORTUNITY TO DO SO.
-Mahatma Gandhi

3.  Introduction to the concept
 Definition of Consumer Behavior
 Factors influencing CB
 Types of Consumer Behavior
 Application of CB with Marketing prospect
 Individual aspects of CB
 Motivation
 Involvement
 Personality
 Perception
 Learning
 Attitude

4.  Consumer is the cause & purpose of all
production and marketing activities.
 Consumer behaviour is the study of when,
why, how, and where people do or do not
buy a product.
 Customer behaviour study is based on consumer buying
behaviour, with the customer playing the three distinct roles
of user, payer and buyer.
 CB determines a firm’s profitability. Further profitability is
established into loyal customer.
 Companies that develop a fuller understanding
of consumers will be better able to develop
marketing strategies to meet their needs.

5.  “Consumer behavior is the process whereby individuals
decide what, when, where, how and from whom to purchase
goods and services.”- Walters and Paul
 In another words, consumer behaviour can be define as the
behaviour of individuals or groups in regards to
acquiring, using and disposing of products, services, ideas
or experiences.
 CB blends elements from psychology,
social anthropology and economics.
Psychology: study of behavior and mental possess.
Social anthropology: study of people in relation to their culture.
Economics: study of people’s consumption of goods and service.
 Research has shown that consumer behaviour is difficult to
predict, even for experts in the field.

6.  Social factors- family, roles and status, ref. groups
 Economic factors- size of family, disposable Income
propensity to consume, consumer credit.
 Cultural factors- values, Beliefs, arts
 Personal factors- age, occ., life style, personality
 Physiological factors- basic needs

7.  Friendly/co-operative buyer
 Timid/reserved/shy buyer
 Silent buyer
 Undecided buyer
 Price or quality conscious
buyer
 Argumentative buyer
 Suspicious buyer  Impatient buyer
 Bargain buyer
 Impulsive buyer
 Over-cautious buyer
 Slow-thinking buyer
 Rude/ill-mannered buyer
 Clever/intelligent buyer

8. From the marketing point of view, understanding consumer
behaviour is crucial to successful delivery of firms’ offering
in the market place.
 Market-Opportunity Analysis: this involves examining trends
and conditions in the marketplace to identify consumers’ needs
and wants that are not being fully satisfied.
 Target Market Selection: this has to do with identifying distinct
groupings of consumers who have unique wants and needs and
the selection of segment that matches the firm’s strength and
offer better opportunities.
 Marketing- Mix Determination: this involves developing and
implementing a strategy for delivering an effective combination
of want-satisfying features to consumers within target market.
 Marketing strategy: understanding of consumer behaviour is
needed in strategic marketing activities. This is because
marketing strategies and tactics are based on explicit or implicit
beliefs about consumer behaviour.

9. Consumer behaviour can be define as the behaviour of
INDIVIDUALS or groups in regards to acquiring, using and
disposing of products, services, ideas.
Personality
Perception
Learning
Involvement
Motivation Attitude

10.  Motivation: Motivation is the driving force
among individual consumers that impel them to
action.
 Definition: Motivation may be defined as psychological
forces that determine the direction of person’s
behaviour, a person’s level of effort, and a person’s level
of persistence in the face of obstacles.
 In another words, motivation is the process that account
for an individual intensity, direction, and persistence of
effort towards attaining a goal.
 A motive is a construct representing an unobservable inner
force that stimulates and compels a behavioral response
and provides specific direction to that response.

11.  Maslow’s Motive Hierarchy
Self
Education, Vacation, etc.
Actualizat
Esteem
ion Furniture, Liquor, Hobbies,
Cars, Mobiles, etc.
Belongingness Personal
grooming, entertainment, Clo
thing, etc.
Insurance, Retirement
Safety
investment, seat
belts, sunscreen
lotion, etc. Rice, Water,
Wheat,
Physiological
Medicines, etc.

12.  Involvement: Involvement is a reflection of strong motivation
in the form of high perceived personal relevance of a
product or service in a particular context.
 In other words, involvement consists of
differences in the intensity of interest with
which consumers approach their dealings
with the marketplace.
 Involvement can vary in individuals depending on different
situations
 Involvement is related to some form of arousal.
Involvement can be of 3 types

13. Routinised response behaviour: In routinised
response, we buy things as a routine. These are
products of daily use which keep buying almost every
now and then.
Low Involvement Decision: These are decision in
which some involvement is necessary .These are
higher value products and involve certain amount of
risk. These products are not bought everyday but
after a few years or considerable period of time.
High Involvement Decision Making: These
decisions are very important as these products are
of very high value and involve a lot of risk and are
bought once in a life time or few times in a life
time.

14.  Personality can be described as the psychological
characteristics that both determines and reflect
how a person responds to his or her environment.
 How Personality is help full in marketing: Because no two
people are exactly the same, marketers can look for certain
similar personality traits in different consumers. These
consumers can then be grouped together based on this
identified personality.
 Product Personality includes:
manly, adventurous, sporting, stylish, mature, etc.
 Colour can influence our emotions, our actions and how we
respond to various people, things and ideas.
 Brand personality means assigning human personality
traits/characteristics to a brand so as to achieve differentiation.
These characteristics signify brand behaviour through individuals
representing the brand.

15.  Nature/characteristics of Personality.
Personality reflects individual differences: Because the inner
characteristics that constitutes an individuals personality are a
unique combination of factors, no two individuals are exactly
alike Example: Hero Honda- Splender and Hero Honda- Karizma
Personality is consistent and enduring: Personality is a set of
response tendencies that are consistent and endure over time.
Consistency means that the characteristics contributing to an
individual's personality ten to carry over to a variety of
situations. Examples: Raymonds, Maruti 800.
Personality is subject to change: Personality is,
however, subject to change over time, in response
to situations and events in life and, also, as part
of a gradual maturing process.
Examples: Godrej shaving creams, Mc Donald’s.

16.  Perception is defined as the process by which an
individual selects, organize and interprets stimuli
into a meaningful and coherent picture of the world.
 It can be described as “how we see the world around us”. In
general, perception is gathering information through our
senses, which are seeing, hearing, touching, tasting, smelling
and sensing.

17. Elements of Perception:
 Sensation: Sensation is the immediate and direct response of
the sensory organs to stimuli. Examples of stimuli (i.e. sensory
inputs) include products, packaging, brand
names, advertisement.
 Absolute Threshold: The lowest level at which an individual
can experience a sensation is called threshold. The point at
which a person can detect and differentiate between
something and nothing is that persons absolute threshold for
that stimulus. Example : 200gms to 150gms, change in quality.

18. Elements of Perception:
 Subliminal Perception: Stimuli that are too weak or too brief
to be consciously seen or heard may nevertheless be strong
enough to be perceived by one or more receptor cells. This
stimuli is beneath the threshold.

19.  Learning can be viewed as a relatively permanent change in
behavior occurring as a result of experience.
 From a marketing perspective, however, consumer learning can
be thought of as the process by which individuals acquire the
purchase and consumption knowledge and experience that they
apply to future related behavior.
 Consumer learning is a process; that is, it continually evolves
and changes as a result of newly acquired knowledge.
 Both newly acquired knowledge and personal experience serve
as feedback to the individual and provide the basis for future
behavior in similar situations.

20. Elements of Learning:
 Motivation: Motivation is based on needs and goals. Motivation
acts as a spur to learning. The degree of relevance, or
involvement, determines the consumer’s level of motivation to
search for knowledge or information about a product or service.
 Cues: In the marketplace, price, styling, packaging, advertising,
and store displays all serve as cues to help consumers fulfil their
needs in product-specific ways. Cues serve to direct consumer
drives when they are consistent with consumer expectations.
Marketers must be careful to provide cues that do not upset those
expectations.
 Response: How individuals react to a drive or cue-how they
behave constitutes their response.
 Reinforcement: Reinforcement increases the likelihood that a
specific response will occur in the future as the result of
particular cues or stimuli

21.  Consumer attitude is a learned predisposition to
respond in a consistently favourable or un-
favourable manner with respect to a given
object.
 Thus, an attitude is the way we think, feel, and act
toward some aspect of our environment.
 Attitude occurs within and are affected by situations. By
situations it means events or circumstances that at a particular
point in time, influence the relationship between an attitude and
behavior.
 By keeping in touch with changing
consumer attitudes, marketers are better able to appeal to
consumers through their marketing messages and appeals.

22. Product/Service Situations Attitude
D Cold Total Running Nose I’ve got an important meeting
in 2hrs….
Hyuandi Cars Buying a new I would like to buy a new car
car for my family….
LIC Insurance Life Now that I am father I want
Insurance to make sure that my family
is provided for…
Spice Jet Family My cousin is getting married
wedding and I want to be there.

23. Identify the reason and the birth or changes on any product
with respect to the behavioral change among consumers?
Latest Improvements:
Neuro marketing: The neuro marketing concept was developed by psychologists
at Harvard University in 1990. The technology is based on a model whereby the
major thinking part of human activity (over 90%), including emotion, takes
place in the subconscious area that is below the levels of controlled awareness.
For this reason, the perception technologists of the market are very tempted to
learn the techniques of effective manipulation of the subconscious brain
activity.