The document discusses consumer behavior, distinguishing between customers (those who purchase) and consumers (those who use products). It highlights the importance of understanding the buying process, including factors like motivation, perception, and societal influences that affect consumer decisions. Additionally, it emphasizes the complexities of international marketing and the varied factors that influence consumer adoption of new products.

2.  Consumer Behavior:
The buying behavior of final consumers,
individuals & households who buy goods &
services for personal consumption.

3.  Customers vs. Consumers:
Customer: customer means who purchases the product
from the marketer or from the retailer or from the
wholesaler. Here we don’t bother about who uses the
product.
Consumer: consumer means who uses the product of
course purchased by the customer. Here we consider
finally who is going to use the product we call them as
consumer.

4.  The Ultimate Consumer:
Those individuals who purchase for the purpose
of individual or household consumption.

6. Significance in Daily Lives:
 Much of our time spent directly in the
Marketplace, shopping or engaging in other
activities.

to
A large amount of additional time is spent
thinking about products & services, talking
friends about them.
 Seeing or hearing advertisements about
them.

7. Consumers are often studied because certain
decisions are significant affected by their
behavior or expected actions. For this reason,
Consumer behavior is said to be “Applied
Discipline”.

8. Advertising Managers, product managers,
product designers and many others in profit-
oriented businesses are interested in
understanding consumers in order to be more
effective at their tasks and earn more profit for
their Organizations.

9. Consumers collectively influence
economic and social conditions
within an entire society.

10. Consumer purchases are highly influence by two factors.

11. Ñ CharacterisÊcs of Consumer behavior

12. Motivation
Motive or (drive) A need
that is sufficiently
pressing to direct the
person to seek satisfaction
of the need.

13. Perception
The process by which
people select, organize
and interpret information
to from a meaningful
picture of world.

14. Learning
Changes in an
individual’s behavior
arising from experience.

15. Beliefs
A descriptive thought or
conviction that a person
holds about something.

16. A ttitude
A person’s relatively
consistent evaluation,
feelings and tendencies
towards an object or an
idea.

17. Ñ CharacterisÊcs of Consumer behavior

18. Age and life
cycle

19. Occupation

20. Economic Situation

21. Ñ CharacterisÊcs of Consumer behavior
Sub
I Cultural
J Factors culture

22. Culture
The set of basic
values, perceptions,
wants and behavior
by a member of
society from family
and other important
institution

23. Sub-Culture
A group of people
with shared value
system based on
common life
experiences and
situation.

24. Social Class
Relatively
permanent and
ordered divisions in
a society whose
members share
similar values,
interests and
behavior.

25. Ć 1s ‹i l“ ‹ Ć I t? i“ •. I l Ć '» ‹ )!” Ć ‹ › !i • i-1 1
it
Ü l“1 C' I» * 1 ( ) i“
status
Roles in
buying process

26. 
26
The consumer market buy goods for their
personal consumption.
 Consumer vary tremendously in Age,
Income, Education, Taste & other factors.
 Buyers may pass quickly or slowly through
these stages and much depends on the nature
of buyer, the product, and the buying situation.

27.  A new product, a good service or idea that
is perceived by some potential customers
as new.
 Adoption Process, the mental process
through which an individual passes from
first learning about an innovation to final
adoption
27

28. 
28
Awareness: Consumer becomes aware of new
product, but lacks information about it.
 Interest: Consumer seeks information about
the new product.
 Evaluation: Consumer considers whether
trying new product makes sense.

29. 
29
Trial: Consumer tries new product on a small
scale.
 Adoption: Consumer decides to make
regular use of the new product.

30. 
30
Innovators (2.5%): They try new product or
adopts a new idea.
 Early Adopters (13.5%):Opinion leaders in their
communities.
 Early Majority (34%):They adopt new idea
before average person.

31. 
31
Late Majority (34%):They adopt idea after
a majority of people have tried it
 Laggards (16%):They adopt when it
becomes tradition.

32. 32

33. Divisibility
Can the
innovation be
used on a
trial basis?
Complexity
Is the
innovation
difficult to
understand or
use?
Communicabilit
y Can results be
easily observed or
described to others?
Compatibilit
y Does the
innovation fit the
values and
experience of the
target market?
Relative Advantage
Is the
innovation
superior to
existing
products?
33

34. 
34
It is difficult enough for companies
marketing within the borders of a single
country. For operating in many countries,
understanding & serving the needs of
consumers can be daunting.
 Although some countries may have some
things in common ,their values, attitudes and
behaviours often vary greatly. So, international
marketers must understand their differences
and adjust their products & marketing
program accordingly.

35. 
35
Shaking heads from side to side means ‘NO’
in most countries but ‘YES’ in Bulgaria &
SriLanka.
 In South America, southern Europe & many
Arab countries ,touching another person is a
sign of warmth & friendship. In the Orient, it
is considered an invasion of privacy.

36. 
36
In Norway or Malaysia, it is rude to leave
something on your plate when eating but in
Egypt, it is rude not to leave something on
your plate..

37. Buying
Decisio
n
37
Influence
r
Initiato
r
User
Buyer Decider

38. The person who first suggests or thinks of the idea
of buying a particular product or service.
38
INFLUENCER
A person whose views or advice carry some
weight in making the final buying decision.

39. The person who ultimately makes a buying decision
or any part of it- whether to buy, what to buy, how
to buy or where to buy .
39
Buye
r
The person who makes an actual purchase.
User
The person who consumes or uses a
product or service.

40. Behavior
Purchase
Decision
P
o
s
t
p
u
r
c
Need
Recognition
Evaluation
40
of Alternatives
Information
Search

41. The first stage of the buyer decision in which
the consumer recognizes a problem or
need.
41

42. The stage of the buyer decision process
in which the consumer aroused to
search for more information; the
consumer may simply have heightened
attention or may go into active
information search.
42

43.  Personal Sources:
(family, friends, neighbors etc)
 Commercial Sources:
(Advertising, Sales people, Dealers etc)
 Public Sources:
(Mass Media, Consumer Rating Organization)
 Experimental Sources:
(Handling, Examining, Using the product)

44. The stage of the buyer decision process
in which the consumer uses information to
evaluate alternative brands in the choice
set.
44

45. The stage of the buyer
decision process in which the
consumer actually buys the
product.
45

46. The stage of the buyer decision process in
which the consumer take further action after
46
the purchase, based on their satisfaction or
dissatisfaction.

47.  Sigmund Freud(1856-1939)
sought to explain:
 People are largely unconscious about the real
psychological forces shaping their behaviour
 As persons grows, repressing many urges
47
 Urges are never eliminated or under perfect
control Why?

48. 
48
B/c they emerge:
• in dreams
• in slips of tongue
•
•
•
in neurotic – worried about smthg.
obsessive behaviour – mind is filled with one particular thing
ultimately in psychoses – mental illness that effects the
whole personality

49. 
49
Various ‘project techniques’ to throw the ego off
guard for e.g.,
 1) word associations
 2) sentence completion
 3) picture interpretation
 4) role playing

50. • Interesting & odd conclusions from researchers about
buyer’s mind regarding certain purchases
•
•
•
For e.g.,
A/c to one classic study concluded:
Consumer resist ‘prunes’ b/c they’re
wrinkled and remind people of sickness and
old age
- Motivation research remains a useful tool
for marketers seeking a deeper understanding
of consumer behaviours
51

51.  Abraham Maslow(1908-1970 ) sought to
explain:
 Why people are driven by particular needs at
particular times?
 Why does one person spend much time and
energy on:
 Personal safety ?
 On gaining the esteem of others?
52

52.  Human needs are
arranged in
Hierarchy
i.e.
“From the most
pressing to the
least pressing”
From Bottom to Top
52

53. 
53
In order of importance they are:
r Physiological needs (hunger, thirst)
Daily usage commodities, for e.g.*wheat *milk *water
etc.
2. Safety needs (security, protection)
* Health Protection *Insurances *Provident
Funds etc.
i Social needs (sence of belonging, love)
How s/he is seen in:
* Get togethers * Festivals *
Attending Parties

54. å
54
Esteem needs: (self-esteem, recognition,
status)
• Occupation & Designation?
• Part of organization & his/her performance?
• Shaping Livings standards accordingly

55. 5. Self-actualization needs:
(Self-development & realization)
55
•
•
•
Self-development
Latest happenings in the art world?
Do I invest my money in starting a business?
What are the trends to make ROI’s?
•
•
Realization
How to minimize risks?!
Why not to invest in a running business?

56. 
56
Perception:
“To form a meaning full picture of the world”
Two people with similar motivation might act
quite differently
For e.g.
*Buyer A of Stereo System considers a fast talking sales person loud or
insincere.
* Buyer B of Stereo System considers the same person intelligent &
helpful.
Why perceptions are different of Buyer A & B?

57.  B/c of the Flow of Information through our five
senses:
•Sight
•Sound
•Smell
•Touch
•Taste
These five senses receives in an individuals way using:
* Short-term memory * Long-term memory
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58. 
58
Three perceptual processes:
Selective exposure - consumer’s attention
For e.g., a person exposed to more than 1500 ads a day – be
precise/specific.
. Selective distortion – understanding consumer’s
mindsets
For e.g., Nike Australia’s Annual sales from 500K to 1.3M in reducing
their joggers prices.
10. Selective retention – retain info. that supports
people’s attitude & beliefs.
For e.g., Nokia makes mobile sets for all age, group peoples.

59. SUBLIMINAL PERCEPTION – CAN CONSUMERS
BE AFFECTED WITHOUT KNOWING IT?
59
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