Introduction to Consumer Behaviour; Consumer Behaviour and Marketing Strategy; Consumer Involvement – Levels of involvement, and Decision Making Consumer Decision Process – Stages in Decision Process, Information Search Process; Evaluative Criteria and Decision Rules, Consumer Motivation – Types of Consumer Needs, Ways of Motivating Consumers. Information Processing and Consumer Perception. Consumer Attitudes and Attitude Change; Influence of Personality and Self Concept on Buying Behaviour, Psychographics and Lifestyles, Impuse Buying. Diffusion of Innovation and Opinion Leadership, Family Decision Making, Influence of Reference Group Industrial Buying Behaviour– Process and factors, Models of Consumer Behaviour – Harward Seth, Nicosia, E& D, Economic Model; Introduction to Consumer Behaviour Audit; Consumer Behaviour Studies in India

1. Consumer
Purchase
Decision
Motives
Personality
Needs
Perception
Learning
Attitudes
Business
Economic
Family
External Factors
Internal Factors
SIMPLE MODEL OF CONSUMER BEHAVIOR

2. External Influences in
Consumer Behavior

3. INTRODUCTION
 Consumer purchasing decisions are often affected by factors that are
outside of their control but have direct or indirect impact on how we live
and what we consume.
 Consumers are faced with many external influences, including an
individual’s culture, subculture, household structure, and groups that
he/she associates with.
 Marketers and business owners call these external influences because
the source of the influence comes from outside the person rather than
from inside.
 Today consumers are faced with an array of product selection, and
competition is fierce among companies. This is why your understanding
of consumer behaviour is vital to the success of your business.
 Both internal and external factors are inter connected and work together
to assist the consumer decision making process.

4. INFLUENCING FACTORS IN CONSUMER DECISION MAKING

5. GROUP BEHAVIOR
 Man is social animal who loves to be in groups. Groups
represent two or more individuals who share a set of norms,
values, or beliefs and interact to accomplish individual or mutual goal.
 Almost all consumer behavior takes place in a group setting of some sort.
 A group's norms cover usually all the important behavioural aspects for
the functioning of that group and breaking those rules can bring up
penalties.
 When do Group Exert Influence?- The group influence on an individual’s
buying behavior depends on three factors-
 Attitude towards the group: This includes Pride, Status, etc.
 Nature of the group: This includes, Cohesive, Frequently interacting,
Exclusive membership.
 Nature of the Product: This includes visibility of the product, Uniqueness
of the product.
 Examples: Hardly Davidson Bike group, Friends connection, Aluminas of an
institute, etc.

6. TYPES OF GROUPS

7. REFERENCE GROUP
 A reference group is any person or group that serves as a
point of comparison for an individual in forming either
general or specific values, attitudes, or a specific guide for behavior.
 In marketing prospective, reference group are groups that serve as a
frames of reference for individuals in their purchase or consumption
decisions.
 Often a distinction is made between group and reference group. Group
is defined as two or more individuals who share a set of norms, values,
or beliefs and have certain implicit and explicit relationship. Where as
reference group is one whose presumed perspective or values are being
used by an individual to take decisions.
 Examples: Shopping with friends, family, educational
decisions.

8. NATURE OF REFERENCE GROUP
Norms
Norms’ are
generally rules and
standards of
behavior.
Values
Values are shared
beliefs among
group
Roles
Roles are functions
that an individual
hold in a group.
Status
Status is the
achieved or
ascribed position
that the individual
holds.
Socialization refers
to the process by
which new
members learn the
groups system.
Power
A groups influence
on its member
behavior is closely
related to it power.

9. Positive
membership
Aspiration group
Disclaimant group Dissociative group
Membership Non-membership
Types of Membership
Positive
membership
Aspiration group
Disclaimant group Dissociative group
Primary
Secondary
Informal Formal
Anticipatory
Symbolic
Types of aspiration group
TYPES OF REFERENCE GROUP

10. TYPES OF REFERENCE GROUP
 An individual can be a member of a reference group such as the family
and would be said to be part of a membership group
 The same individual may aspire to belong to a cricket club and would be
said to be part of an aspiration group.
 A disclaimant group is one to which an individual may belong to or join
then reject the group’s values.
 Also an individual may also regard the membership in a specific group
as something undesirable and to avoidable. Such a group is a
dissociative group.
 Primary Informal group: It includes family, peer group, friends etc.
 Primary formal group: Business group, working colleagues etc.
 Secondary Informal group: Women kitty party, sports group, etc.
 Secondary formal: Only frequently meet are not so cohesive in nature.

11. CULTURE
 Culture influences consumers through the norms and values established
by the society in which they live.
 It is the broadest environmental factor that influences consumers
behavior.
 Culture is inculcated- It is passed down from one generation to another
through institutions such as family members and religion.
 As culture evolves, it may be possible to associate benefits of a product
or brand with new values or it may be necessary to change the product if
that value is no longer gratifying the society. Example: Movies, TV
serials, etc.
 Definition: “Culture as the complex whole that includes knowledge,
beliefs, art, law, morals, customs and any other capabilities and habits
acquired by humans as a member of a society.”

12. CHARACTERISTIC OF CULTURE
 Culture is invented: It cannot be viewed as something that
just exists and is waiting to be discovered. People are
responsible for inventing their culture.
 Culture is learnt: It is not biological feature or instinctive.
The process of learning cultural values begin early in life
largely through social interactions among families, friends etc.
 Culture is Shared: Culture by at large is shared by huge
group of human beings, generally religion, language, etc.
 Culture satisfies needs: Culture offers order, direction and guides
societies in all phases of life by providing tried and trusted ways of
meeting physiological, personal and social needs.
 Cultures are similar but different : There are certain similarities
among all cultures and many elements are present in all societies such
as cooking, dressing, etc.
 Culture is not static: Culture do change gradually and continuously.
These change however may be very slow or very fast.

13. SUB CULTURE
 A sub culture is a segment within a culture that share a set if meanings,
values or activities that differ in certain respects from those of the overall
culture.
 Sub culture analysis enables the marketing manager to focus on beliefs,
values, and customs shared by member of a specific sub group make
them desirable candidates for special marketing attention.
 Sub culture therefore can be defined as a distinct culture group that
exists within a layer, complex society as an identifiable segments in
terms of its beliefs customs and values.
 Therefore sub culture are relevant units of analysis for marketing
research.
 Sub culture tend to transfer their beliefs and values
from generation to generation. Example: Youths

14. Category Sub- Culture
Geography North Indian, South Indian, East Indian
Regional Gujarati, Marathi, Punjabi, Tamilians,
Malayalees, etc.
Age Children, Teenagers, Youth, Working
professional, etc.
Elderly
People
50 Plus.
Women Children, Teenagers, Youth, Married women,
etc.
Caste Muslims, Christians, Hindu, etc.
EXAMPLES FOR SUB CULTURE

15. FAMILY
 Family is defined as a group of two or more
people related by birth, marriage or adoption
and residing together.
 House hold is a family and any
unrelated person residing in the same house
and consuming food from a common kitchen
at least once a day. Eg: Hostel
 All families are households but all households are not families.
 An individual’s immediate family members play an essential role in
influencing his/her buying behaviour.
 Family consists of Parent, Siblings, Spouse, Grandparents, Relatives, etc.
 What an individual imbibes from his parents becomes his/her culture. What
he sees from his childhood becomes his habit or in other words lifestyle.
 Family by far is the most important reference group. It is also the most basic
consumption unit for most consumer goods.

16. FUNCTIONS OF FAMILY
Emotional
Support
Suitable
Life Style
Social
Relationships
Morals and
Ethical
Values
Religious
Values
Interpersona
l Skills
Economic
Well Being
Provides

17. FAMILY LIFE CYCLE STAGE
Bachelor stage Young, single person <35
Income Expense
Newly married Young couples no children
Income Expense
Full Nest I Young couples with <6 yrs
children Income Expense
Full Nest II Young couples with 6-12 yrs
children Income Expense
Full Nest III Old married couples with
dependent teenage Income Expense
Empty Nest I Old married couples with no
children living Income Expense
Solitary
Survivor
Older single person
Income Expense

18. Communication
targeted at Children
Communication
targeted at Parents
Influencer
(Children)
Initiator
(Parents,
Children)
Decision
Maker
(Parents,
Children)
Purchaser
(Parents)
User
(Parents,
Children)Information
Gathering
FAMILY/HOUSEHOLD DECISION MAKING PROCESS

19.  Some form of class structure or social stratification
has existed in all societies throughout human history.
 A consumer's social class refers to his or her standing
in society. It is determined by a number of factors,
including education, occupation and income.
 While income is an important indicator of social class,
the relationship is far from perfect since social
class is also determined by such factors as place
of residence, cultural interests and world-view.
 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.
 Social Class is often measured on the bases of: relative wealth, Power,
prestige.
SOCIAL CLASS

20. SOCIAL CLASS CATEGORY
Life-style Orientations & Purchasing Tendencies of the Different Social
Classes.
Social Class Life-style Orientation Purchasing Tendencies
Upper Class Good taste
Graceful living
Good Things in life
Individual expression
Interest in arts and culture
Quality merchandise
Expensive hobby and recreation
equipment
Travel
Art
Middle Class Respectability
Conformity
social esteem
Items in fashion
Items related to self presentation
Nice clothing, and home items.
Working Class Fun oriented
Focus on Possessions
Work related life
Newest appliances
Sporting events
Food items
Lower Class Close family relationships
Not interested in world affairs
Neighborhood oriented
Readily available products
Status symbols

21. “UPWARD PULL STRATEGY “- TARGETED AT MIDDLE CLASS
Middle
Class
Aspiration
s
To belong
to
upper-
middle
class
Prefer
Products
consumed
by upper-
middle
class
Positionin
g
Upper
class
symbolism
for middle
class
products

22. OPINION LEADERS HIP
 Opinion leaders are those people who, in a given situation, are able to exert
personal influence.
 They are the ones most likely to influence others through word-of-mouth
communication because others seek advice and information from them.
 Opinion leaders can influence the behavior
of consumers positive and negative towards
to the product.
 “Opinion leadership is the process by which
one person (the opinion leader) informally
influences the actions or attitudes or others,
who may be opinion seekers or merely opinion recipients.
 In marketing context opinion leaders are those people who have used the
product by them self.
 Young consumers often take the assistance of opinion leaders in there
purchase.
 Opinion leadership is category specific – an opinion leader in one product
category is often an opinion seeker in others.

23. OPINION LEADERSHIP FLOW OF INFORMATION

24. SITUATION IN WHERE OPINION LEADERS ARE CONSIDERED