1) The document discusses the nature, scope, and applications of consumer behavior. It defines consumer behavior as the decision process and activities involved in evaluating, acquiring, using, and disposing of goods and services.
2) The scope of consumer behavior includes the decision process, individual determinants like motivation and learning, and external influences. It examines consumer behavior from problem recognition through post-purchase evaluation.
3) Understanding consumer behavior is important for marketers to influence factors that affect purchase decisions and maintain business growth. The document provides an overview of key concepts in consumer behavior.
This document discusses consumer behavior, which is defined as how individuals select, purchase, use, and dispose of products and services to satisfy their needs. Understanding consumer behavior is important for developing effective marketing strategies around pricing, product design, segmentation, targeting, positioning, and promotion. The document outlines some key factors that influence consumer decisions, including product attributes, price, brand, store image, preferences, culture, and social class. It also describes different types of consumer behavior such as habitual, variety-seeking, and high involvement.
Importance & scope of Consumer BehaviourRoneet Kumar
The document outlines a framework for studying consumer behavior that includes three main sections: the decision process represented by the inner circle, individual determinants in the middle circle, and the external environment in the outer circle. Understanding consumer behavior is important for marketers to adapt to changing consumer needs and tastes, regulate consumption and economic stability, develop efficient marketing strategies, and effectively segment and target markets.
Definition , nature , scope , applications of cbsaurabhmahajan54
INTRODUCTION: Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
DEFINITION:1. According to Engel, Blackwell, and Mansard:-
‘Consumer behavior is the actions and decision processes of people who purchase goods and services for personal consumption’.
2.According to Louden and Bitta:-
‘Consumer behavior is the decision process and physical activity, which individuals engage in when evaluating, acquiring, using or disposing of goods and services’.
NATURE OF CONSUMER BEHAVIOR :
1.PROCESS:-Consumer behavior is a systematic process relating to buying decisions of the customers. The buying process consists of the following steps:
a.Need identification to buy the product.
b.Information search relating to the product.
c.Listing of alternative brands.
d.Evaluating the alternative (cost-benefit analysis)
e.Purchase decision.
f. Post-purchase evaluation by the marketer.
The document outlines the course outcomes and units for a consumer behavior course. On completion of the course, learners will be able to identify, explain, use, differentiate, appraise, and create in relation to concepts of consumer behavior. The course covers 6 units, including introduction to consumer behavior, consumer decision making process, models of consumer behavior, sociological influences, psychological influences, and interdisciplinary nature of consumer behavior.
This document provides an overview of a study on consumer purchase decision involvement and advertisement involvement in branded apparel. The study has three objectives: 1) To assess the degree of consumer purchase decision involvement and advertisement involvement in branded apparel. 2) To examine the impact of purchase decision involvement and advertisement involvement on purchase decisions. 3) To analyze how purchase decision involvement and advertisement involvement differ across socio-demographic groups when purchasing branded apparel. The study will use surveys, regression analysis, and ANOVA to collect primary data and test hypotheses related to the objectives. Understanding consumer purchase behaviors can help marketers better design marketing strategies tailored to different consumer groups.
Lifestyle and consumer behaviour, difference between consumer and customer, types of consumer, consumer behaviour, importance of consumer behaviour, factors influencing consumer behaviour, cultural factors, social factors, personal factors ets.
This document discusses consumer behavior, which is defined as how individuals select, purchase, use, and dispose of products and services to satisfy their needs. Understanding consumer behavior is important for developing effective marketing strategies around pricing, product design, segmentation, targeting, positioning, and promotion. The document outlines some key factors that influence consumer decisions, including product attributes, price, brand, store image, preferences, culture, and social class. It also describes different types of consumer behavior such as habitual, variety-seeking, and high involvement.
Importance & scope of Consumer BehaviourRoneet Kumar
The document outlines a framework for studying consumer behavior that includes three main sections: the decision process represented by the inner circle, individual determinants in the middle circle, and the external environment in the outer circle. Understanding consumer behavior is important for marketers to adapt to changing consumer needs and tastes, regulate consumption and economic stability, develop efficient marketing strategies, and effectively segment and target markets.
Definition , nature , scope , applications of cbsaurabhmahajan54
INTRODUCTION: Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
DEFINITION:1. According to Engel, Blackwell, and Mansard:-
‘Consumer behavior is the actions and decision processes of people who purchase goods and services for personal consumption’.
2.According to Louden and Bitta:-
‘Consumer behavior is the decision process and physical activity, which individuals engage in when evaluating, acquiring, using or disposing of goods and services’.
NATURE OF CONSUMER BEHAVIOR :
1.PROCESS:-Consumer behavior is a systematic process relating to buying decisions of the customers. The buying process consists of the following steps:
a.Need identification to buy the product.
b.Information search relating to the product.
c.Listing of alternative brands.
d.Evaluating the alternative (cost-benefit analysis)
e.Purchase decision.
f. Post-purchase evaluation by the marketer.
The document outlines the course outcomes and units for a consumer behavior course. On completion of the course, learners will be able to identify, explain, use, differentiate, appraise, and create in relation to concepts of consumer behavior. The course covers 6 units, including introduction to consumer behavior, consumer decision making process, models of consumer behavior, sociological influences, psychological influences, and interdisciplinary nature of consumer behavior.
This document provides an overview of a study on consumer purchase decision involvement and advertisement involvement in branded apparel. The study has three objectives: 1) To assess the degree of consumer purchase decision involvement and advertisement involvement in branded apparel. 2) To examine the impact of purchase decision involvement and advertisement involvement on purchase decisions. 3) To analyze how purchase decision involvement and advertisement involvement differ across socio-demographic groups when purchasing branded apparel. The study will use surveys, regression analysis, and ANOVA to collect primary data and test hypotheses related to the objectives. Understanding consumer purchase behaviors can help marketers better design marketing strategies tailored to different consumer groups.
Lifestyle and consumer behaviour, difference between consumer and customer, types of consumer, consumer behaviour, importance of consumer behaviour, factors influencing consumer behaviour, cultural factors, social factors, personal factors ets.
1. Understanding consumer behavior involves appreciating the factors that influence consumer decision making, including individual influences, group influences, situational influences, and marketing influences.
2. There are different stages in the consumer decision process, including problem recognition, information search, information evaluation, purchase decision, and post-purchase evaluation.
3. Marketers can help consumers at each stage of the decision process, such as demonstrating problems at the problem recognition stage, providing product information at the information search stage, and providing reassurance at the post-purchase evaluation stage.
Meaning and nature of buyer behavior, differences between consumer buying and organizational buying in terms of characteristics and process, Strategic use of consumer behavior knowledge in marketing and public policy decisions. Modern Consumerism and the global consumer movement
The document discusses the scope and importance of studying consumer behavior. It notes that consumer behavior research examines cognition, affect, and behavior in consumption as well as individual and environmental determinants. The field is interdisciplinary, drawing from psychology, sociology, economics, and other domains. It also studies consumption behaviors at both the individual and group level. Understanding consumer behavior is important for identifying market opportunities, selecting target markets, and developing effective marketing strategies.
This document discusses consumer behavior and its importance for marketers. It defines consumer behavior as the process people go through to search for, select, purchase, use, and dispose of products and services. Consumer behavior is influenced by various systematic factors and differs between individuals and products. It is vital for marketers to understand consumer behavior in order to better target consumers and improve products and services. Studying consumer behavior allows marketers to gain insights into attitudes, culture, lifestyles, experiences, and decision making that influence product use.
1) The document discusses factors that influence consumer decision making, including social factors (culture, social class, reference groups), marketing influences (product, price, promotion, place), situational influences (physical, social, time, purchase reason, mood), and psychological influences (motivation, perception, learning, attitudes and beliefs).
2) It explains that culture and subculture, social class, and reference groups shape purchase decisions and that marketing mix elements like price, product features, advertising also sway consumers.
3) Situational factors such as the environment, other people present, time constraints, purpose of shopping, and mood temporarily impact buying behavior. Psychological drivers like needs, perspectives, knowledge, and mindsets under
This document discusses several models of consumer buying behavior:
- Traditional models include the economic, learning, psychological, and sociological models.
- Contemporary models include the Howard-Sheth model, Nicosia model, Engle-Kollat-Blackwell model, EBM model, and organizational buying models.
- The Nicosia model explains consumer behavior as a system with stimuli as input and behavior as output across four fields: consumer/firm attributes, search/evaluation, purchase, and post-purchase.
This document discusses several models of consumer behavior:
1) The Nicosia Model which shows the relationship between a firm's attributes, a consumer's attributes, and the consumer's decision making process.
2) The Howard-Sheth Model which views consumer behavior as a rational problem solving process influenced by stimuli and resulting in actions. It identifies inputs, constructs, and outputs in the consumer's decision process.
3) The Engel-Kollat-Blackwell Model which is a highly comprehensive, multi-stage model that treats the individual as a system and recognizes intervening variables between initial inputs and final outputs. It takes into account psychological and environmental factors.
The document discusses consumer and business buying behavior. It identifies several factors that influence consumer purchasing decisions, including cultural, social, and personal factors. It also outlines the key stages in a business's purchasing process, from problem recognition to performance review. Several major influences on business buyers are identified, such as environmental, organizational, interpersonal, and individual factors.
Overview of Consumer Behaviour
Understanding Consumer Behavior- Meaning and Concept of Consumer and Customer, Consumer Learning,
Different Models in Consumer Behavior, Consumer Decision making process-Concept of Consumer Decision;
Levels of Consumer Decision Making; Consumer Decision Making Model, Changing Indian Consumer
Behavior-Drivers of Change; Changing Consumer Trends; Rural Consumer Behavior; New Consumption
Patterns, Organisational Buying Behaviour
The document discusses several models of consumer behaviour, including Lawson's model of buying behaviour, factors that influence consumer behaviour, and the buyer decision process. It also covers behaviourist and cognitivist theories of consumer behaviour, and discusses models like the Engel-Kollat-Blackwell model, Howard & Sheth model, and Maslow's hierarchy of needs model.
Consumer Behaviour _E-Notes-1 (Introduction,Significance,Ethical Marketing,Co...Venkat. P
Introduction and overview to study of Consumer Behaviour – Definition of Consumer Behaviour – Significance – Development of the concept & The discipline of Consumer Behaviour – Marketing impact on Consumers – Marketing ethics and Social Responsibility – Understanding consumer and Market Segments.
Industrial buying behavior refers to the study of motives, actions, and influences on industrial buyers when purchasing goods and services. It is a complex process that involves multiple members and considerations. Several internal and external factors influence organizational buying behavior, including economic, political, organizational, interpersonal, and individual factors. Industrial buying differs from consumer buying in that it involves purchasing large capital goods, materials, and services for business use rather than individual consumption.
Consumer behavior examines how individuals are targeted by marketers and how they make purchasing decisions. It involves three stages: external influences that create product awareness; the decision-making process where psychological factors shape how consumers search for and evaluate options; and post-decision behavior like initial and repeat purchases and evaluations. Marketers seek to understand consumer diversity while also identifying commonalities to effectively promote products through the four P's - product, price, place, and promotion - while consumers are influenced by social and cultural factors like family, class, and subcultures.
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
This Presentation covers the Decision-making process in three parts as
2.1Decision Making- Buying Motives, Buying Roles, Definition, Types of decisions
2.2Consumer Decision Making, Implications for a Marketer, Compensatory and Non-compensatory decision rules
2.3 Levels of Decision making- (i) Extensive problem solving (EPS) (ii) Limited problem solving (LPS) (iii) Routinized problem solving (RPS) or routinized response behavior.
Consumerism,Consumer Rights & Consumer Protection Act 1986Venkat. P
Roots of Consumerism – Consumer Safety and Information – Environmental Concerns – Consumer Privacy – Consumer Protection Act 1986; Central and State Consumer Protection Councils, Consumer Disputes Redressal Agencies and Forum, National Consumer Disputes Redressal Commission
This document summarizes several models of consumer decision making:
1. The Stimulus-Response Model of Buyer Behavior focuses on motivators, determinants, and the effects of communication channels on consumer buying processes.
2. The Sheth-Newman Gross Model of Consumption Values proposes that functional, social, conditional, emotional, and epistemic values influence consumer choices.
3. Additional models discussed include the Solomon Model of Comparison Process, Nicosia Model of firm-consumer interactions, Howard-Sheth Model of extensive, limited, and habitual problem solving, and the Engel-Kollat-Blackwell Model of information input, processing, decision stages, and decision variables.
The document outlines the consumer research process, which includes 6 major steps: 1) defining research objectives, 2) collecting secondary data, 3) designing primary research studies, 4) collecting primary data, 5) analyzing the data, and 6) preparing a report of findings. It discusses collecting both secondary data from internal and external sources, as well as designing primary research through quantitative methods like surveys and experiments or qualitative methods like in-depth interviews and focus groups. The process concludes with sampling and collecting data, analyzing the results, and reporting key findings.
In the highly specialised study of “BUSINESS MANAGEMENT”, today, the function of “MARKETING MANAGEMENT” plays a very critical role. This is because this functional area of management :
(1) “EARNS” the revenue, &
(2) “WORKS” in the close proximity with the public or persons outside the organisation.
Controlling these two attributes to have the desired benefits are the most difficult part of the management, because none of these two are within the direct control of the marketers.
This doesn’t mean that the other functional areas are not important, but they are not “DIRECTLY” involved in the activities mentioned above.
Similarly, within the study of Marketing Management, the “Consumers” or the “Customers” play a very critical role as these are the people who finally BUY the goods & services of the Organisation, and the firm is always on the move to make them buy so as to earn revenue.
The document discusses an event study conducted by a financial analyst to test the semi-strong form of market efficiency. The analyst examined 4 companies that announced dividend increases and calculated the characteristic lines for each company based on weekly returns over the prior 6 years. Abnormal returns were then calculated for each company over the 4 weeks before and after the announcement date. The average abnormal returns and cumulative average abnormal returns were close to zero, supporting the semi-strong form hypothesis that the market incorporated the information of the dividend increases prior to the official announcement.
1. Understanding consumer behavior involves appreciating the factors that influence consumer decision making, including individual influences, group influences, situational influences, and marketing influences.
2. There are different stages in the consumer decision process, including problem recognition, information search, information evaluation, purchase decision, and post-purchase evaluation.
3. Marketers can help consumers at each stage of the decision process, such as demonstrating problems at the problem recognition stage, providing product information at the information search stage, and providing reassurance at the post-purchase evaluation stage.
Meaning and nature of buyer behavior, differences between consumer buying and organizational buying in terms of characteristics and process, Strategic use of consumer behavior knowledge in marketing and public policy decisions. Modern Consumerism and the global consumer movement
The document discusses the scope and importance of studying consumer behavior. It notes that consumer behavior research examines cognition, affect, and behavior in consumption as well as individual and environmental determinants. The field is interdisciplinary, drawing from psychology, sociology, economics, and other domains. It also studies consumption behaviors at both the individual and group level. Understanding consumer behavior is important for identifying market opportunities, selecting target markets, and developing effective marketing strategies.
This document discusses consumer behavior and its importance for marketers. It defines consumer behavior as the process people go through to search for, select, purchase, use, and dispose of products and services. Consumer behavior is influenced by various systematic factors and differs between individuals and products. It is vital for marketers to understand consumer behavior in order to better target consumers and improve products and services. Studying consumer behavior allows marketers to gain insights into attitudes, culture, lifestyles, experiences, and decision making that influence product use.
1) The document discusses factors that influence consumer decision making, including social factors (culture, social class, reference groups), marketing influences (product, price, promotion, place), situational influences (physical, social, time, purchase reason, mood), and psychological influences (motivation, perception, learning, attitudes and beliefs).
2) It explains that culture and subculture, social class, and reference groups shape purchase decisions and that marketing mix elements like price, product features, advertising also sway consumers.
3) Situational factors such as the environment, other people present, time constraints, purpose of shopping, and mood temporarily impact buying behavior. Psychological drivers like needs, perspectives, knowledge, and mindsets under
This document discusses several models of consumer buying behavior:
- Traditional models include the economic, learning, psychological, and sociological models.
- Contemporary models include the Howard-Sheth model, Nicosia model, Engle-Kollat-Blackwell model, EBM model, and organizational buying models.
- The Nicosia model explains consumer behavior as a system with stimuli as input and behavior as output across four fields: consumer/firm attributes, search/evaluation, purchase, and post-purchase.
This document discusses several models of consumer behavior:
1) The Nicosia Model which shows the relationship between a firm's attributes, a consumer's attributes, and the consumer's decision making process.
2) The Howard-Sheth Model which views consumer behavior as a rational problem solving process influenced by stimuli and resulting in actions. It identifies inputs, constructs, and outputs in the consumer's decision process.
3) The Engel-Kollat-Blackwell Model which is a highly comprehensive, multi-stage model that treats the individual as a system and recognizes intervening variables between initial inputs and final outputs. It takes into account psychological and environmental factors.
The document discusses consumer and business buying behavior. It identifies several factors that influence consumer purchasing decisions, including cultural, social, and personal factors. It also outlines the key stages in a business's purchasing process, from problem recognition to performance review. Several major influences on business buyers are identified, such as environmental, organizational, interpersonal, and individual factors.
Overview of Consumer Behaviour
Understanding Consumer Behavior- Meaning and Concept of Consumer and Customer, Consumer Learning,
Different Models in Consumer Behavior, Consumer Decision making process-Concept of Consumer Decision;
Levels of Consumer Decision Making; Consumer Decision Making Model, Changing Indian Consumer
Behavior-Drivers of Change; Changing Consumer Trends; Rural Consumer Behavior; New Consumption
Patterns, Organisational Buying Behaviour
The document discusses several models of consumer behaviour, including Lawson's model of buying behaviour, factors that influence consumer behaviour, and the buyer decision process. It also covers behaviourist and cognitivist theories of consumer behaviour, and discusses models like the Engel-Kollat-Blackwell model, Howard & Sheth model, and Maslow's hierarchy of needs model.
Consumer Behaviour _E-Notes-1 (Introduction,Significance,Ethical Marketing,Co...Venkat. P
Introduction and overview to study of Consumer Behaviour – Definition of Consumer Behaviour – Significance – Development of the concept & The discipline of Consumer Behaviour – Marketing impact on Consumers – Marketing ethics and Social Responsibility – Understanding consumer and Market Segments.
Industrial buying behavior refers to the study of motives, actions, and influences on industrial buyers when purchasing goods and services. It is a complex process that involves multiple members and considerations. Several internal and external factors influence organizational buying behavior, including economic, political, organizational, interpersonal, and individual factors. Industrial buying differs from consumer buying in that it involves purchasing large capital goods, materials, and services for business use rather than individual consumption.
Consumer behavior examines how individuals are targeted by marketers and how they make purchasing decisions. It involves three stages: external influences that create product awareness; the decision-making process where psychological factors shape how consumers search for and evaluate options; and post-decision behavior like initial and repeat purchases and evaluations. Marketers seek to understand consumer diversity while also identifying commonalities to effectively promote products through the four P's - product, price, place, and promotion - while consumers are influenced by social and cultural factors like family, class, and subcultures.
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
This Presentation covers the Decision-making process in three parts as
2.1Decision Making- Buying Motives, Buying Roles, Definition, Types of decisions
2.2Consumer Decision Making, Implications for a Marketer, Compensatory and Non-compensatory decision rules
2.3 Levels of Decision making- (i) Extensive problem solving (EPS) (ii) Limited problem solving (LPS) (iii) Routinized problem solving (RPS) or routinized response behavior.
Consumerism,Consumer Rights & Consumer Protection Act 1986Venkat. P
Roots of Consumerism – Consumer Safety and Information – Environmental Concerns – Consumer Privacy – Consumer Protection Act 1986; Central and State Consumer Protection Councils, Consumer Disputes Redressal Agencies and Forum, National Consumer Disputes Redressal Commission
This document summarizes several models of consumer decision making:
1. The Stimulus-Response Model of Buyer Behavior focuses on motivators, determinants, and the effects of communication channels on consumer buying processes.
2. The Sheth-Newman Gross Model of Consumption Values proposes that functional, social, conditional, emotional, and epistemic values influence consumer choices.
3. Additional models discussed include the Solomon Model of Comparison Process, Nicosia Model of firm-consumer interactions, Howard-Sheth Model of extensive, limited, and habitual problem solving, and the Engel-Kollat-Blackwell Model of information input, processing, decision stages, and decision variables.
The document outlines the consumer research process, which includes 6 major steps: 1) defining research objectives, 2) collecting secondary data, 3) designing primary research studies, 4) collecting primary data, 5) analyzing the data, and 6) preparing a report of findings. It discusses collecting both secondary data from internal and external sources, as well as designing primary research through quantitative methods like surveys and experiments or qualitative methods like in-depth interviews and focus groups. The process concludes with sampling and collecting data, analyzing the results, and reporting key findings.
In the highly specialised study of “BUSINESS MANAGEMENT”, today, the function of “MARKETING MANAGEMENT” plays a very critical role. This is because this functional area of management :
(1) “EARNS” the revenue, &
(2) “WORKS” in the close proximity with the public or persons outside the organisation.
Controlling these two attributes to have the desired benefits are the most difficult part of the management, because none of these two are within the direct control of the marketers.
This doesn’t mean that the other functional areas are not important, but they are not “DIRECTLY” involved in the activities mentioned above.
Similarly, within the study of Marketing Management, the “Consumers” or the “Customers” play a very critical role as these are the people who finally BUY the goods & services of the Organisation, and the firm is always on the move to make them buy so as to earn revenue.
The document discusses an event study conducted by a financial analyst to test the semi-strong form of market efficiency. The analyst examined 4 companies that announced dividend increases and calculated the characteristic lines for each company based on weekly returns over the prior 6 years. Abnormal returns were then calculated for each company over the 4 weeks before and after the announcement date. The average abnormal returns and cumulative average abnormal returns were close to zero, supporting the semi-strong form hypothesis that the market incorporated the information of the dividend increases prior to the official announcement.
Marketers benefit by understanding how consumers take consumption decisions which enables them to formulate suitable marketing strategies. It becomes even more fascinating to gauge consumer behavior drawing insights from various disciplines like psychology, sociology, anthropology and economics. Know more about Consumer Buyer Behaviour in this slide presentation.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This Slideshare is the sole Property of the Welingkar School of Distance Learning – Reproduction of this material , without prior consent, either wholly or partially will be treated as a violation of copyright.
The efficient market hypothesis proposes that security prices reflect all available information. It comes in three forms: weak (only past prices), semi-strong (all public information) and strong (all information). Evidence supports weak and semi-strong forms, showing prices adjust to new public information. The hypothesis implies that fundamental analysis and technical analysis may not identify mispriced securities. It also provides support for low-cost index funds. While influential, the hypothesis makes assumptions and some strategies have achieved above-average returns.
This document summarizes the efficient market hypothesis (EMH) in three sentences:
The EMH states that market prices fully reflect all available public information and adjust instantly to new information. It has three forms - weak, semi-strong, and strong - with each form incorporating more types of information. Most research supports the weak and semi-strong forms, finding that historical data and public information are reflected in prices, but the strong form is not supported as non-public information can be used to earn excess returns.
In this presentation, we will understand what kind of product and services consumer buy, the motive of buying, buying frequency and various other factors. We will also discuss about types of consumers, importance, and growth and consumer scenario in India.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
The document discusses consumer buying behavior and the factors that influence consumer purchase decisions. It outlines a simple model of consumer behavior involving marketing stimuli, the buyer's black box of characteristics and decision making processes, and the buyer's response. It then discusses the psychological, social, cultural, and personal characteristics affecting consumer behavior and lists the stages in the buyer decision process.
consumer behavior and utility maximization JosHua455569
1. The document discusses consumer behavior and the concept of utility maximization. It defines consumer behavior as how individuals, groups, and organizations select, buy, use, and dispose of goods and services to satisfy their needs and wants.
2. It also defines utility as the satisfaction gained from consuming goods and services. Utility maximization means making choices that provide the highest level of consumer satisfaction within a budget. Consumers maximize utility by determining which combination of goods provides the greatest benefit.
3. The document outlines factors that influence consumer behavior like culture, social factors, personal characteristics, and psychology. It emphasizes the importance of understanding consumer behavior for marketers in today's customer-oriented market.
Consumer Behavior_Unit 1- AS PER syallbus.pptxSumanMaurya43
This document provides an overview of a course on consumer behavior. It discusses key topics that will be covered in the course, including definitions of consumer behavior, differences between consumers and customers, factors that influence consumer behavior, applications of understanding consumer behavior, and the impact of the internet and e-commerce on consumer behavior. It also explains the importance and need for studying consumer behavior to help marketers better understand customers.
The document discusses consumer behavior, defining it as the study of how individuals make decisions to spend resources on consumption. Consumer behavior is influenced by internal factors like cognition, affect, and behavior as well as external environmental factors. It is a complex process that marketers must understand in order to effectively segment, target, position, and design products for consumers. The key is providing value to satisfy consumer needs and wants better than competitors. Studying consumer behavior helps marketers analyze opportunities and threats, implement marketing strategies, and improve standards of living through consumption.
Consumer behavior involves understanding why, what, who, when, and how consumers make purchasing decisions. It is influenced by internal factors like motivation, emotion, perception, and attitude, as well as external factors like culture and groups. Understanding consumer behavior allows businesses to create better marketing strategies by speaking directly to consumer needs and influencing their decision making process.
This document provides an overview of consumer behaviour concepts including definitions of consumer behaviour, differences between consumers and customers, factors influencing consumer behaviour in India, and the consumer movement and protection in India.
Some key points covered are: the meaning of consumer behaviour is defined as activities people undertake when purchasing goods for personal use; a consumer uses products while a customer purchases products; factors influencing Indian consumers include changing demographics, westernization and celebrity influence; the consumer movement originated due to issues like food shortages and adulteration and led to the establishment of consumer protection laws and agencies in India.
The document provides information about a consumer behavior course taught by Mahesh Singh Badal. It defines key terms like consumer, consumer behavior, and discusses the importance of understanding consumer behavior for businesses. It also outlines the nature and scope of consumer behavior, highlighting that it is influenced by various individual and environmental factors and varies across products, regions and individuals. Understanding consumer behavior helps with market segmentation, developing marketing strategies and designing effective marketing mixes. The study of consumer behavior draws from various disciplines like psychology, sociology, economics and is important for both business and non-profit organizations.
ABID HUSSAIN SINDHU. HCBF. Research on Customer Behavior564251
This document provides an overview of research conducted on customer buying behavior. It begins with an acknowledgement of the faculty member who oversaw the research project. It then includes a table of contents outlining the various sections of the report. The sections cover topics such as the different types of customer buying behavior, who constitutes a customer, how to study consumer behavior, factors that influence consumer behavior including cultural, social, and personal factors. Maslow's hierarchy of needs is also discussed along with the consumer buying process and how technology is changing consumer behavior in the digital age.
Consumer Decision Making Process and Changing Indian Consumers and its Impact,Consumer Profiling for a Consumer Durable product like LCD, LED, Smart Phone, etc
Consumer behavior is the study of how, why, when, and where people buy products. It examines individual and group decision-making processes. Consumer behavior is influenced by internal factors like needs, motives, attitudes as well as external factors like culture, social groups, and the environment. Studying consumer behavior helps businesses better understand customer satisfaction and make strategic decisions around pricing, marketing, and product development. There are different types of consumer behavior depending on factors like a person's involvement in purchase decisions and differences between product options.
The document discusses when and why marketers may consider using negative statements about their own products in advertising. It analyzes the psychological perspective behind negative marketing and how it can be a feasible strategy. Two case studies are presented: Nestle used negative marketing in a Yorkie chocolate bar campaign, and a Kodak printer ad also used ambiguous negative messaging. The impact of these campaigns and how negative statements can achieve marketing objectives like raising awareness are explored. Examples must illustrate the strategy's use and effects on brand consumption and image.
1. The document outlines key concepts in microeconomics including theories of consumer behavior, themes of microeconomics like limited resources and unlimited wants, and the differences between positive and normative economics.
2. It discusses theories of consumer behavior including the utility theory which says satisfaction diminishes with additional consumption, and the indifference curve theory which explains consumer preferences for different combinations of goods.
3. The scope of consumer behavior is defined as understanding consumption patterns related to what, why, when, where, and how often consumers buy goods and services.
Consumer behavior all material Prepared by karventhan karventhanps
The document outlines Mahatma Gandhi's philosophy on customer service. It states that a customer is the most important visitor and the purpose of a business. A business depends on customers, not the other way around, and customers should be served with respect rather than as a favor.
A STUDY OF CONSUMER BUYING PREFERENCE TOWARDS LAPTOPS WITH SPECIAL REFERENCE ...Manik Mukherjee
This document discusses consumer buying behavior and preferences. It begins by defining consumer behavior as the study of how consumers search for, purchase, use, and dispose of products and services. It then discusses some key factors that influence consumer behavior, including perception, learning, and personality. It also discusses organizational buying behavior and the organizational buying decision process. Finally, it provides an industry profile on the laptop computer industry, discussing key laptop components and specifications that consumers consider when making purchasing decisions.
The document discusses key aspects of consumer behavior that are important for marketers to understand. It defines consumer behavior as the study of how individuals make decisions to spend their available resources on consumption-related items. Understanding consumer behavior allows marketers to determine what products are needed in the market, how best to present goods to consumers, and influences on consumer decision making from groups. The study of consumer behavior is vital for companies to make effective production, pricing, distribution, and promotional decisions.
The document provides an acknowledgement and abstract for a project on consumer behavior and purchasing decisions related to laptops.
The acknowledgement thanks various individuals who provided support and guidance in completing the project, including the director of the institute, a professor who provided guidance and support, and fellow students.
The abstract introduces the topic of studying the factors that influence consumers' purchase decisions of laptops and whether there are differences among consumer groups (stayers, satisfied switchers, dissatisfied switchers) in the importance given to these factors. It also discusses understanding the attitudes of these three customer groups to help with retention and loyalty strategies.
This document provides an introduction to consumer behavior. It defines consumer behavior as the actions and decision-making processes of individuals who purchase goods and services for personal use. It also defines a customer as someone who purchases products, while a consumer is the end user of goods and services. The document discusses the nature and characteristics of Indian consumers, noting they are a heterogeneous group with a young demographic, aspirational nature, value consciousness, and diversity in religion, dress, food, and more. It also outlines factors that influence consumer behavior like personality, motivation, family, culture and advertising.
Kavya Gupta BBA 1st Sem of JIMSVKII has given a brief description of Retail Consumer Behavior in the slide share.
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The document discusses the concept of buyer behavior and the factors that influence it, including cultural factors like culture and subculture, social factors like reference groups and family, and personal factors like age, occupation, and lifestyle. It also examines psychological factors affecting buyer behavior such as perception, motivation, beliefs, and attitudes. Understanding these influences on buyer behavior is important for marketers to better target customers and develop effective marketing strategies.
1. Consumer Behaviour-Nature,
UNIT 1 CONSUMER BEHAVIOUR- Scope and Applications
NATURE, SCOPE AND
APPLICATIONS
Objectives
After studying this unit you should be able to:
• define consumer behaviour
• describe the nature of consumer behaviour
• explain the scope of consumer behaviour
• outline the broad areas of application of consumer behaviour especially in the
area of marketing.
Structure
1.1 Introduction
1.2 Nature of Consumer Behaviour
1.3 Who is a Consumer?
1.4 What is the Decision Process?
1.5 Scope of Consumer Behaviour
1.6 Decision Process
1.7 Individual Determinants
1.8 External Environment
1.9 Applications of Consumer Behaviour in Marketing
1.10 Summary
1.11 Key Words
1.12 Self-assessment Questions
1.13 Further Readings
1.1 INTRODUCTION
The reason for a business firm to come into being is the existence of a consumer who
has unfulfilled needs and wants. To fulfil these consumer needs an organization is set
up. In your professional capacity you may also be a part of one such business
organization. But as part of the organization, have you ever wondered about who are
the consumers of your products and services? Why do these consumers buy your
brand and not that of the competitors? How do your consumers perceive your product
fulfils their needs? After having bought your product do they feel satisfied or
dissatisfied? And how are these feelings reflected in their behaviour as consumers?
It is important to the survival and growth of your organization that you regularly raise
such questions and attempt to find answers to them. It is only through such a process
of questioning and seeking that you can be sure of keeping your firm on the growth
path. A thorough knowledge of your consumers and an understanding of their
behaviour (as consumers) are essential if you wish to continue to remain in business.
This and the following units in this book provide you an insight into the subject of
consumer behaviour. After having read this unit you would be able to spell out who
are consumers, why they behave in the manner that they do, what influences their
behaviour and how you as a marketer can manipulate the influencing factors in your
favour. This is the most important aspect of consumer behaviour which has practical
action implications for each business firm. Once having understood the behaviour of
consumers and knowing that their behaviour can be influenced, you can initiate a
number of steps to do so. This unit covers the nature, scope and applications of
consumer behaviour. 5
2. Consumer Behaviour-Issues
and Concepts 1.2 NATURE OF CONSUMER BEHAVIOUR
Consumer behaviour can be defined as:
"The decision process and physical activity engaged in when evaluating, acquiring,
using or disposing of goods and services."
This definition raises a few queries in our minds-what or who are consumers? What
is the decision process that they engage in? Answers to these questions help define
the broad nature of consumer behaviour.
1.3 WHO IS CONSUMER?
A "consumer" is anyone who typically engages in any one or all of the activities
described in our definition. Traditionally consumers have been defined very strictly
in terms of economic goods and services, i.e. goods and services wherein a monetary
transaction is involved. However, over time this concept has been widened to include
goods and services where a monetary exchange is not involved. Thus, the services of
voluntary organizations have also been included in this definition, and users of the
services of these organizations are also viewed as consumers. The logic behind this
approach is that consumers of free service also engage in the same kind of decision
process and physical activity as consumers of economic goods and services. A
"customer" is one who actually purchases a product or service from a particular
organization or shop. A customer is always defined in terms of a specific product or
company.
However, the term consumer is a far wider term encompassing not only the actual
buyer or customer but also all its users, i.e. consumers. There are two situations when
this distinction between consumers and customers may occur, i) when the service or
product is provided free, and ii) when the customer is not the actual user of the
product or is only one of the many users. The second situation needs greater
elaboration as it is of critical significance for us.
Very often, the actual customer making a purchase may not be doing so for himself
or herself. For instance, in case of a father buying a box of crayons for his four-year
old daughter, the customer is the father but the actual user of consumer is his
daughter. Another case may be where a father is buying a TV for the family
members. The father is the customer but all the family members are the consumers.
The two vital elements to remember in all consumer situations are a) the influence on
purchase from other people and b) the roles taken on by different people in consumer
behaviour situations.
In the instance of the father buying crayons for his daughter, the latter may not have
had influence at all on the purchase; the father is the decision maker and buyer and
the daughter is the user. In case of the father buying a TV for his family, it is quite
likely that the wife and children may have exerted considerable influence on the
decision. The father is simply, the buyer, while other family members may be
influencers and all. including the father, are users. Table 1, 1 presents one way of
classifying the roles that people can take on in the context of consumers behaviour.
Table 1.1
Some Consumer Behaviour Roles
Role Description
Initiator The person who determines that some need or want is not being met.
Influencer The person who intentionally/unintentionally influences the decision
to buy the actual purchase and/or use of product or service.
Buyer The person who actually makes the purchase.
User The person who actually uses or consumes the product or service.
You will read more about the different buying roles and their influence on family
decision making in Unit 9 of this course. These buying roles may vary in different
buying situations. While studying consumer behaviour we have to keep in mind all
the various consumer roles that can possibly be taken on. But in practical terms it
may be very difficult to study all these roles. Therefore, the emphasis of study is on
one role that of the buyer. The reason for this is that this is the only part of the
6 behaviour which is overt and visible.
3. It is only through the buyer, whom we can easily identify, that we can attempt to Consumer Behaviour-Nature,
study the influences exerted on the purchase by other role players. Scope and Applications
Activity 1
i) Name five products in which you are both the buyer and user. Try and identify
the influence, if any, exerted by another person in your purchase decision.
Product Influencer/Influence
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ii) Name three products purchased by your family in which you played the, role of
influencer. Can you specify the nature of influence.
Product Influence exerted by you
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1.4 WHAT IS THE DECISION PROCESS?
We have defined consumer behaviour as the "decision process" and "physical
activity" engaged in by individuals. The physical activity which we focus upon in the
course of consumer behaviour is that of making the purchase, as explained in the
previous section. But there are a number of influences affecting the purchase and a
number of individuals maybe involved in exerting these influences. So the purchase
action that is visible to us maybe the result of a interplay of a number of complex and
hidden variables which may have influenced the ultimate purchase activity. The final
purchase is just one activity in the entire series of physical and mental activities that
may have occurred in this whole process. Some of these activities may precede the
purchase while others may take place later. But because all these activities exert
influence on the purchase they are considered a part of consumer behaviour, more
specifically a part of the decision process.
Let us go back to the example of a father, we call Mr. Bannerjee. buying a TV for his
family. It is possible that the consumer behaviour involving mental processes and
activities may have taken place in the following sequence and manner. Mr.
Bannerjee's teenage daughter, sees a new colour TV at her friend's house. She then
raises the issue of buying a colour TV to replace then existing black and white TV.
The family discusses the issue and agrees that it is indeed time they bought a colour
TV. The next day Mr. Bannerjee discusses the matter with his friend and colleague,
Mr. Chandra. He visits Mr. Chandra's home to see for himself the quality of the EC
colour TV that he has. Mrs. Bannerjee also finds out more about the various brands,
prices and quality of different brands, from her sister who recently purchased a
colour TV. Her sister has a Crown TV and recommends the same. Meanwhile Mr.
Bannerjee's daughter checks out the brands of TVs that her various friends have at
their respective homes and concludes that BPL is the best. In the next few days the
entire Bannerjee family makes it a point to carefully study any advertisements of
colour TV that appear in the newspaper, magazine or TV. At all social occasions they
raise the question of which is the best colour TV to buy amongst their friends and
relatives and mentally, mark the different positive and negative points of different
brands. Within two weeks the Bannerjees have collected enough information to take
a decision to buy BPL, but they need more specific information. So one evening they
visit two dealer outlets in their neighbourhood market to find out more about prices.
They find that the BPL TV is rather expensive and beyond their budget. So they
settle for Crown which was recommended by quite a few of their friends and the
price is affordable too. Moreover, the dealer offered them a special five per cent
discount and a free antenna alongwith free installation. The information that this
company would soon he offering a VCR at a reasonable price clinched the decision 7
in favour of Crown.
4. Consumer Behaviour-Issues The activity and thought process which resulted in the final purchase of TV started
and Concepts well before the actual purchase took place and was spread over a period of two to
three weeks. This entire process forms part of consumer behaviour.
Depending on the nature of product or service in question, the mental decision
process accompanying the physical act of purchase may vary from very simple to
extremely complex, and from being instantaneous in nature to time consuming and
elaborate. But they all constitute consumer behaviour. Thus, not only the overt,
observable physical behaviour exhibited in the art of making a purchase, but all the
accompanying, preceding and following mental processes and activities also are an
integral part of consumer behaviour.
In case of the stock of regular brands of toilet soap being depleted at home, its
purchase needs no elaborate decision process or activity of comparison and
evaluation. Rather the purchase decision is almost an automatic one.
Activity 2
Recall the purchase of a consumer durable in your family. Describe the decision
process and physical activities, preceding the purchase undertaken by the various
members of the family.
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1.5 SCOPE OF CONSUMER BEHAVIOUR
The scope of a subject refers to everything that is studied as part of that subject.
When we set out to explain the scope of consumer behaviour we need to refer to all
that which forms part of consumer behaviour.
The scope of consumer behaviour has been briefly touched upon in the previous
section wherein it was explained that how consumer behaviour includes not only the
actual buyer and his act of buying but also the various roles played by different
individuals and the influence they exert on the final purchase decision. In this section
we shall define and explain the scope of study of consumer behaviour.
To define the scope of a subject it is important to set parameters or a framework
within which it shall be studied. Figure 1.1 presents one such framework for studying
consumer behaviour. This framework is made up of three main sections-the decision
process as represented by the inner-most circle, the individual determinants on the
middle Circle and the external environment which is represented by the outer circle.
The study of all these three sections constitutes the scope of consumer behaviour.
Here, we shall dwell on these constituents of the framework only briefly as they are
explained in detail in the following units.
1.6 DECISION PROCESS
The decision process as depicted in the Figure 1.1 comprises a series of steps. The
first step is when the consumer becomes aware of the fact that he has a problem. The
8 problem maybe that he has run out of toothpaste or that he needs new sofa for the
5. Consumer Behaviour-Nature,
Scope and Applications
Figure 1.1: A simplified framework for studying consumer behaviour
drawing room or that he needs to engage the services of an accountant to help him
with his tax planning. Problem recognition thus occurs when the consumer
recognizes that he has an unfulfilled need. The desire to fulfil this need triggers off
the other steps of information; search and evaluation and finally result in the purchase
process.
However, not all situations of problem recognition automatically lead to the next step
of information search and evaluation. A consumer may recognize the need for a
vehicle to cover the long distance from his home to office and back. But if he doesn't
have the means to buy a vehicle for himself, then his need would remain a need, and
despite his recognition of the problem, the ensuing steps will not take place. The
constraints can be lack of availability or lack of ability to buy.
Only if there are no constraints preventing further behaviour, the consumer will set
out to search for information relevant to the problem. The information search can
take place without the consumer even being aware of it or it may take the form of a
deliberate, prolonged search. To replenish the stock of toothpaste, a regular customer
knows from memory and past experience the brand, the package size he wishes to
buy, and the place from where he would like to buy. Of course, if it is a first time
customer for toothpaste then he, would search for information from the external
environment, such as his friends, shopkeepers, and advertisements. Having gathered
the relevant information, the consumer needs to evaluate it to arrive at the decision
regarding which toothpaste best fulfils his need.
Having arrived at the decision, he set's out to make the purchase. At this point the
consumer has to make a choice regarding which outlet to by from. After the purchase
when the consumer uses the product he either feels satisfied with-it and concludes
that he has made the right decision or the feels dissatisfied and decides that his
decision was not correct. This dissatisfaction-set in motion a search for alternative
choices and fresh evaluation. It is thus a continuing cycle of decision process.
Activity 3
Recall the last time you purchased toilet soap, a book for your leisure reading and a
dinner at a restaurant. Try and spell out the various physical and mental activities 9
which you indulged in
6. Consumer Behaviour-Issues at each stage of the decision process, starting from problem recognition. (For
and Concepts instance, the problem recognition in case of toilet soap occurred when you had to go
on an official tour and needed necessary toileteries to carry along. So you write "need
to go on tour" in front on problem recognition and under the heading toilet soap, in
the matrix given below.) Similarly you would fill in all the details in case of the three
purchase decisions.
(Hint: After dinner at a restaurant, wherein you are satisfied with the food and
service, you may tell the manager what an enjoyable evening you had and make a
mental note of the restaurant so that the next time you decide to visit a restaurant, you
consider this as one of the possibilities. On the other hand, if you found the food to be
of poor quality and the service slow and inefficient, you may like to make a written
complaint in the customer hook. And also you strike off this restaurant from your
mental list of alternatives.)
1.7 INDIVIDUAL DETERMINANTS
Consider the case of two sisters brought up in one family environment with exactly
the same educational background living in one house and yet exhibiting very
different tastes and purchase decisions. While one is regular consumer of Dettol
Soap, India Today and buy's ready-made garments the other sister uses only Lux
International, reads Stardust and buys hi-fashion clothes from boutiques. What is it
that accounts for the vast differences of consumer behaviour in the situation of these
two sisters? The answer to this can be found in the factors defined in the middle
circle of Figure 1.1 i.e., personal motivation and involvement, attitudes, self-concept
and personality, learning, memory and information processing.
Motivation and Involvement
All of us are consumers, within a given society all of us have the same alternatives to
choose from and yet no two consumers may exhibit identical consumer behaviour.
The reason for this is that each one of us is a unique individual with a unique set of
needs, desires and motivation. Motivation is that internal force which arouses or
activates some need and provides direction of behaviour towards fulfilment of the
need. A motivation maybe physiological in nature directed towards fulfilment of
biological needs such as hunger and thirst other motivations are psychological in
nature focussing on the satisfaction of psychological desires such as the desire for
seeking status, job satisfaction, or achievement. Everyone has both physiological and
psychological motivations, but we each fulfil them in different ways. One consumer
satisfies his thirst by drinking water, the second quenches it by having a Thums Up,
the third drinks Bisleri Mineral Water while a fourth prefers soda. For one consumer,
buying a Delux Maruti car is a way of seeking status, another satisfies his want for
status by becoming a member of the best club in town, while for a third having a
credit card is a status symbol.
The reason why we adopt different methods of satisfaction of our motivations is
because of the differing level of personal involvement in various activities.
Involvement refers to the personal relevance or importance of a product or service that
a consumer perceives in a given situation. For a professional photographer the choice
of a camera is a consumer behaviour situation of involvement because the camera is his
most important professional tool. The photographer would be motivated to buy the best
possible camera, irrespective of the price tag. For another consumer, a camera is just a
means of recording important family events and just about any camera which is
convenient to handle would fill the need.
High involvement leads to a highly motivated state of mind as in case of the
professional photographer. High involvement and high motivation lead to a consumer
behaviour process which is distinctly different from that of a low involvement and
10 low motivation.
7. Attitudes Consumer Behaviour-Nature,
Attitudes are our learned predispositions towards objects, people and events. Scope and Applications
Attitudes guide our orientation towards these. It is our attitudes which influence how
we respond to different products and services. Attitudes are not inborn or innate in
us. Rather they are learnt from people around us.
Till a few years ago most housewives had a negative attitude towards frozen,
dehydrated or instant food. But today, with more women joining the work force, such
products are viewed as a convenience and instant, quick to cook meals are looked
upon favourably. Similarly, our attitude towards saving is undergoing radical
changes. Instead of saving and leading a simple, frugal life, people prefer to have a
better lifestyle today rather than save for tomorrow.
Our attitudes influence our purchase decisions and consumer behaviour. An attitude
which is averse to risk taking will never make for a consumer investing his money in
shares and stocks, such a consumer would always prefer `safe' investments even if
though rate of return may be comparatively lower.
Personality and Self-concept
Personality is the sum total of the unique individual characteristics that make each
one of us what we are.
It provides a framework within which a consistent behaviour can be developed. Self-
concept or self-image is the way we perceive ourselves in a social framework. We
always tend to buy only those products and services which we think fit or match with
our personality.
Marketers also try to give a distinct image or personality to their products which is as
close as possible to that of the target consumers. Gwalior Suitings uses Nawab of
Pataudi for promoting its suitings, to project an image of class and exclusivity and
perceives that this image would match well with the self-concept of their target
consumers.
Learning and Memory
Everyday we are exposed to a wide and diverse range of information. But we can
barely recall a small fraction of it the next day.
We only remember that which is of relevance and importance to us, or where we
have a motivation to remember. Consider a situation where a family is viewing a TV
programme and the accompanying advertisements. Out of the 15-20 advertisements,
the seven year old daughter may remember the advertisement for Barbie dolls, the
husband (who drives the car) may remember the advertisement of radial car tyres and
the wife may remember the advertisement for a new model of mixer-grinder. This is
because each one of them has a motivation for different products.
Our motives, attitudes and personality act as filters by letting in only relevant
information and keeping 'all other information out. Surely we would see the product,
hear its jingle on the radio but chances are it will not register in our minds. We will
remember it only for a short while and then forget it.
This is known as selective retention. We retain in our memories only selective
information. You will learn more about these individual influences on consumer
behaviour in Unit 8 of this course.
Information Processing
This refers to the process and activities which consumers engage in while gathering,
assimilating and evaluating information. As discussed in' the previous paragraphs, we
only attend to selective information. The manner in which we assimilate and evaluate
this selective information is determined by our motives, attitudes and personality and
self-concept. Thus the same information maybe evaluated in a different manner by
two different individuals and the ensuing response may also be very different. A half-
filled glass elicits the response "a half-empty glass from, one consumer while another
reacts by saying it is "half-full".
Activity 4
Suppose you have wolf Rs.15, 000 in a lottery. The following optional uses of the
money are available to you.
i) Buying a VCR
ii) Go on a holiday with your family/friends
iii) Buy shares 11
8. Consumer Behaviour-Issues iv) Buy a personal computer for use in the house
and Concepts
v) Buy a membership to a club
vi) Deposit it in a fixed deposit account.
Rank the above options in order of your preference. Try and analyse how your
personal motives, attitudes personality affected your ranking. Now put the same
question to a colleague in your office/friend/spouse. Is the response different from
yours?
Try and explain the response in terms of the determinants of individual behaviour
explained in this section.
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1.8 EXTERNAL ENVIRONMENT
As shown in Figure 1.1 the external environment is made up of six specific
influences and all other remaining influences are covered under the heading `other
influences'.
Cultural Influences
The first of the influences is that of cultural variables. Culture is defined as the
complex, sum total of knowledge, belief, traditions, customs, art, morals, law and any
other habits acquired by people as members of a society. Culture of one society
differs from that of another. Many of our actions, and behaviour as consumers stem
from our cultural background for instance, the emphasis on saving schemes oriented
towards saving for a daughter's marriage or the preferred attitude towards gold as a
form of saving are the result of our unique cultural influence.
Sub-cultural Influences
Within a given culture, there are many groups or segments of people with distinct
customs, tradition and behaviour, which set them apart from other people. All Indians
share one common cultural heritage, but the Hindu Brahmins of Tamil Nadu are very
different from the Hindu Bengalis of Calcutta in the same way as Kashmiri Hindus
are different from the Hindus of Gujarat. Each of these people, within one cultural
mainstream, have uniquely distinct sub-cultures. They have their style of dress, food
habits, religious traditions and rites all of which have implication for the marketer.
Sumeet Mixer and Grinder developed special heavy duty motor to withstand
continuous running required for grinding rice for dosa, vada, idli-staple food items of
the South Indian cuisine. Similarly, marketers of spices need to modulate taste and
formulation according to the consumers taste, which varies from state to state.
Social Class Influences
Social class is a group consisting of a number of people who share more or less equal
position in a society. Within a social class people tend to share same values, beliefs,
and exhibit similar patterns of behaviour and consumption. Some social classes are
ranked as higher and lower. Social classes differ from one society to another, and
their standing in society may also change over time. Social classes may be defined by
parameters such as income and occupation. The belongingness to a social class
influence dicisions such as choice of residence, type of holiday, means of
entertainment and leisure.
Social Group Influences
A social group is a collection of individuals who share some common attitudes and a
sense of relationship as a result of interaction with each other. Social groups may be
primary where face-to-face interaction take place frequently, such as families, work
groups and study groups. Secondary groups are those where the relationship is a
more formalized and less personal in nature. Examples of primary groups are
associations of professionals members of a political party, and social groups such as
Rotory, Lions, Jaycees etc.
12
9. The behaviour of individuals as consumer is greatly influenced by other members of Consumer Behaviour-Nature,
the group. If executives of an office normally wear a safari suit to work, it is most Scope and Applications
likely that a newcomer to the office would tend to conform to this pattern of dressing,
even though he may have been dressing very differently in his earlier work situation.
The change over to kurta-pajama once an individual joins politics is another example
of how social group influences consumer behaviour. Unit 9 of this course will give
you a more detailed exposure to social and cultural influences on buyer behaviour.
Family Influences
Family is a social group which can be defined as a primary group. It needs to be
studied in great detail as it is one of the strongest sources of influences on consumer
behaviour.
The first and strongest influence on a child is that of his family and he imbibes many
behavioural patterns from other family members subconsciously and these tend to
stay with him even after attaining adulthood. Further, within a family many decisions
are made jointly with various members exerting different degree of influence. The
changing structure of families as the joint family system gradually gives way to
single nucleus families also influence the consumer behaviour.
Personal Influences
Each individual is influenced by the family, social class, sub-cultural and cultural
group to which he belongs, and yet has his own distinct personality which influences
his decisions and behaviour as a consumer. The probability of trying a new product
or a new brand will depend on the type of personality of the consumer. The process
of evaluation of different products and different brands will vary from person to
person. For one, price may be the most important parameter in making the decision to
buy a water geyser, for another it is convenience, and for yet another it may be the
status symbol value.
Other Influences
All other influences not covered in any of the other specific influence headings are
covered here. National or regional level events, situational factors or any other
external influences are included here. Cricket test matches always lead consumers to
buy TV sets and transistor radios. The hosting of Asiad '82 in New Delhi brought in
its wake tremendous awareness and interest in sports. All such-events have both
temporary and permanent influences on consumer behaviour. During the period of
the event, there is increased emphasis on buying goods and services related to the
event. After the event is over, as in case of Asiad, because the infrastructure for
sports has been created, an interest amongst the people been kindled; sporting events
are now held regularly with more people participating. All this leads to greater
consumption of sports goods.
Situational variables such as product display, price reduction offers, free gift offers,
also influence consumer behaviour. Seeing an attractive offer, a free mug with a new
brand of coffee, a regular user of a rival brand may be tempted to try the new brand,
As you would observe in Fig 1.1 the various factors in individual determinants and
external environment are separated by broken lines, This is done to denote the fact
that each of these specific factors influence and in turn are influenced by each other,
Further you would notice that there is an arrow starting from external environment
and passing through individual determinants upto the decision process. This indicates
that external environmental factors do not affect the decision process directly, but
filter through individual determinants to influence the decision process.
1.9 APPLICATIONS OF CONSUMER BEHAVIOUR IN
MARKETING
Marketing is defined as "human activity directed at satisfying needs and wants
through exchange processes". Thus the beginning of marketing lies in identifying
unsatisfied human needs and wants and understanding the ensuing activity which
people engage in to fulfil these. And that, as we have described, is the realm of
consumer behaviour. Consumer behaviour and marketing go hand-in-hand. Trying to 13
do the latter without an understanding of the former in akin to firing a shot in the dark.
10. Consumer Behaviour-Issues Consumer behaviour has a number of applications in the area of marketing as described
and Concepts in the following paragraphs.
1 Analyzing Market Opportunity: Study of consumer behaviour helps in identifying
needs and wants which are unfulfilled. This is done by examining trends in income,
consumers lifestyles and emerging influences. The trend towards increasing number of
working wives. and greater emphasis on leisure and convenience have signalled the
emerging needs for household gadgets such as vacuum cleaner, washing machine and
mixer grinder. Tortoise Mosquito repellant coils and Good Knight electrical repellants
were marketed in response to a genuinely felt need of the people. Its rapidly rising sales
graph is an indication of how well the product has satisfied the consumer's need.
2 Selecting the Target Market: The study of the consumer trends would reveal
distinct groups of consumers with very distinct needs and wants. Knowing who these
groups are, how they behave, how they decide to buy enables the marketer to market
products/services especially suited to their needs. All this is made possible only by
studying in depth the consumer and his purchase behaviour.
A study of potential consumers for shampoo revealed that there was a class of consumers
who would like to use shampoo only on special occasions and who otherwise use soap to
wash their hair. Further, this consumer class would not afford to spend more than three or
four rupees on shampoo. Having identified this target market, companies with leading
brands launched their shampoos in small sachets containing enough quantity for one
wash and priced just at two or three rupees.
3 Determining the Product Mix: Having identified the unfulfilled need slot and
having modified the product to suit differing consumer tastes, the marketer now has to
get down to the brass tacks of marketing. He has to determine the right mix of product,
price promotion and advertising. Again consumer behaviour is extremely useful as it
helps find answers to many perplexing questions.
Product: The marketer has the product that will satisfy hitherto unfulfilled consumer
need, but he must decide the size, shape and attributes of the product. He must figure out
whether it is better to have one single product or a number of models to choose from.
Does the product require any special kind of packaging? Does it need any guarantee or
after sales service? What associated products and services can be offered alongside?
Maggi Noodles were first launched in the most common flavours such as masala and
capsicum. Having succeeded with these, other flavours such as garlic and sambhar were
launched with the objective of appealing to specific regional tastes. However, these
flavours did not succeed. Recently, exotic flavour such as prawns has been launched. All
these are attempts to modify the product by adding special features, attributes which
might enhance the product appeal to the consumers.
The study of consumer behaviour also guides the marketer in making decisions regarding
packaging. Pan Parag was first introduced in tins. But study of consumer behaviour
revealed that people wanted smaller packing which they could conveniently carry on their
person and in response to this the individual pouches were introduced. Further study of
consumers revealed a problem with, these pouches. Once opened and kept in the purse or
pocket, the pan masala would spill out of the pouch into the purse or pocket. To
overcome this problem, Pan Parag has now launched a pouch with a zip. You eat as much
as you want, zip up the packet and put it in your pocket without fear of spillage and
wastage.
The study of consumer needs revealed the need for a water storage facility. in the kitchen
and bathroom but which didn't occupy floor space. In response to this need, Sintex added
the overhead indoor loft tank to their existing range of outdoor. roof top water storage
tanks.
Price: What price should the marketer Charge for the product? Should it be the same as
that of the competing product or lower or higher? Should the price be marked on the
product or left to the discretion of the retailer to charge what he can from the customer?
Should any price discounts be offered? What is the customer perception of a lower or
higher price? Would a lower price stimulate sales? Or is a lower price associated with
poor quality?
These are the kinds of questions facing a marketer when taking a decision regarding
pricing. The marketer has to determine the price level which makes the image of the
14 product and which also maximises the sales revenue. For doing so he must understand the
way his product
11. is perceived by consumers, the criticality of the price as a purchase decision variable and Consumer Behaviour-Nature,
how an increase or decrease in price would affect the sales. It is only through continuous Scope and Applications
study of consumer behaviour in actual buying situations that the marketer can hope to find
answers to these issues.
Distribution: Having determined the product size, shape, packaging and price, the next
decision the marketer has to make is regarding the distribution channel. What. type of
retail outlets should sell the products? Should it be sold through all the retail outlets or
only through a selected few? Should it be sold through existing outlets which also sell
competing brands or should new outlets selling exclusively your brand of product be
created? How critical is the location of the retail outlets from the consumers' viewpoint?
Does the consumer look for the nearest convenient location or is he willing to travel some
distance for buying the product?
The answers to all these questions can only be found when the marketer has a good
understanding of the consumers' needs which are being fulfilled by his product and the
manner in which consumers arrive at the dicision to buy. A few years ago, Eureka Forbes
introduced a vacuum cleaner in the Indian market. It was not only launch of a new brand,
but rather a launch of a new product concept. No retail outlets were selling vacuum
cleaners very few consumers knew much about the product and fewer still were willing to
buy it. Under these circumstances, the company decided to sell the product only through
personal selling with the salesman calling on the consumer at his home. Here the salesman
had enough time to explain, demonstrate and convince the'prospective customer about the
utility of the vacuum cleaner. In a retail outlet situation, all this would just not have been
possible. The retailer has neither the time nor the detailed knowledge required to sell such
a new product concept. This distribution strategy of Eureka Forbes, based on a very fine
understanding of the consumer behaviour, has yielded good sales results. The product
concept is well accepted in the urban markets and today the vacuum cleaner, in addition to
personal selling is also. sold through some selected retail outlets.
Promotion: The marketer here is concerned with finding the most effective methods of
promotion which will make the product stand out amongst the clutter of so many other
brands: and products, which will help increase the sales objective and yet be within the
budget. This is possible only when the marketer knows who his target consumers are,
where are they located, what media do they have access to, what is their preferred media
and what role does advertising play in influencing the purchase decision?
Today, TV is the most powerful advertising medium in the country. And many brands
spend the greater part of their promotion and advertising budget on TV. Brands regularly
advertised on TV soon become well recognized names. But as a marketer you have to
question the suitability of any specific medium in case of your specific product and
budget. Suppose your product is sold in only a few geographical markets you may decide
to avoid TV altogether and concentrate on point of purchase promotion and local
advertising through local newspaper, hoardings and wall paintings.
In so many cases of industrial product media advertising is very negligible, instead,
brochures or leaflets containing detailed product specification and information are directly
mailed to the actual consumer, and sometimes followed up by a salesman making a call to
clinch the deal. This is primarily because buyer behaviour and informational needs of
industrial buyers are very different from that of consumer buying. You will study
organisational buying behaviour in detail in Unit 3 of this block. But you can make these
decisions only when you know your consumer and understand his behaviour.
4 Use in Non-profit and Social Marketing: The knowledge of consumer behaviour is
also useful in the marketing of non-profit or social or governmental services of institution
such as hospitals, voluntary agencies, law enforcement and tax collection agencies.
The income tax authorities have always been perceived in negative manner by the
common man who fears them and views them in a suspicious light. To overcome this poor
image, advertisements on TV and in newspapers and magazines are regularly released,
wherein a friendly, helpful image is sought to be projected. Moreover, there is greater
dissemination of information regarding the rights and responsibilities of the taxpayer.
Similarly, Delhi Police is trying to overcome the problem of poor image by projecting
itself as always alert and available for help through regular newspaper advertisements.
Activity 5 15
In your own work experience, can you identify some decisions regarding product pricing,
12. Consumer Behaviour-Issues distribution and promotions, which were based on the knowledge of consumer behaviour.
and Concepts What was/were these decisions?
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1.10 SUMMARY
This Unit attempts to introduce you to the subject of consumer behaviour and all that
which is studied as part of this.
Consumer behaviour comprises the entire spectrum of activities and processes which
individuals engage in when buying, using, acquiring or disposing of goods and
services. The purchase is only one part of this range of activities. The focus of study
in consumer behaviour is the individual making the purchase, but sometimes he may
be purchasing on behalf of somebody else. To get a complete picture it is necessary
to include both the buyer and user in the realm of consumer behaviour. The study of
consumer behaviour is concerned with the decision process involved in a purchase.
This process may comprise physical and mental activities preceding and following
the purchase event.
During this decision process, the consumer is influenced, by a variety of factors.
These influencing variables can be broadly divided into two categories, namely,
individual determinants and external variables. These were briefly touched upon in
this Unit and shall be explained in greater detail in later units.
An understanding of consumer behaviour is of critical importance to all persons
engaged in any form of marketing activity, its importance stems from the fact that i)
behaviour of consumers can be understood, ii) the behaviour can be influenced, and
iii) the marketer can manipulate these influencing variables to his advantage.
Consumer behaviour is also applicable in case of non-commercial, non-profit
marketing. "Run for your country" and other such runs organized on special
occasions such as India completing 40 years of Independence, used various types of
appeals in order to motivate the maximum participation. Organizations such as Red
Cross, Blood Banks, Heart Foundation, Indian Cancer Society, UNICEF, etc. all use
an understanding of consumer behaviour to market their services, sell their products
(greeting cards in case of UNICEF), and to motivate people to donate, get regular
health check-ups.
1.11 KEY WORDS
Decision Process: The sequence of mental and physical activities and processes
receding and following an actual purchase action.
Individual Determinants: The specific variables unique to each individual, which
influence his behaviour as a consumer. These variables are psychological in nature,
External Environment: All the variables emanating from the society within which
an individual lives and interacts and which bear a strong influence on his consumer
behaviour.
1.12 SELF-ASSESSMENT QUESTIONS
1) Given below is a list of products and services, some or all of which you would
have purchased or used in your capacity as a consumer:
a) Scooter/Motorcycle/Car
16 b) An expensive suit/saree for a very important social occasion
13. c) Gas stove/electrical oven Consumer Behaviour-Nature,
Scope and Applications
d) Two-in-one transistor-cum-cassette recorder/player
e) Services of a doctor
f) Membership of a Society/Club/Union
g) Carpet for the drawing room
Try to recall and identify the roles played by different people around you in
influencing the first time purchase of these. Would the same roles be played by
the same people if you went in for a repeat purchase?
2) Till a few years ago, the ready-made clothes market in India was limited to a
few companies offering men's shirts and trousers in a few instances. But today,
Vimal, Bata, Madura Coats and many other big companies have launched entire
ranges of ready to wear garments for men and women. Can you identify some
key variables of individual determinants and external environment responsible
for this change?
1.13 FURTHER READINGS
Bennelt, Peter D. and Kassargian, Harold H. - Consumer Behaviour, Prentice Hall of
India.
Britt, Stuart Handerson, "Experiment in Consumer Behaviour" John Wiley and Sons.
Chisnall, Peter, "Marketing, A Behavioural Analysis," McGraw Hill and Co.
Engel James 7, Kollat, David T. and Miniard, Paul W. "Consumer Behaviour”,
Hillsade, Dryden Press, 1986.
Schifmann, Leon G. and Kanuk, Leslie Lazar, Prentice Hall of India, Third Edition.
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