Define consumer behavior

“The behavior that consumers

display(shows) in
searching for,
purchasing, using,
evaluating and
disposing of products and services
that they expect will satisfy their
needs.”
- Schiffman and Kanuk
 Define consumer behavior
• Consumer Behavior Defined

“as of the processes involved when

individuals or groups select, purchase,
use, or dispose of products, services,
ideas, or experiences to satisfy needs
and desires” (Solomon, 1996).
Consumer behavior defined as

the decision process and physical

activity engaged in when
evaluating, acquiring, using or
disposing of goods and services."
- Loudon and Bitta
 WHO IS A CONSUMER
ç A person who has indicated his or her willingness to obtain goods
and/or services from a supplier with the intention of paying for
them.

Someone who has purchased goods and/or services for

personal consumption
A person or group of people, such as a household, who are
the final users of products or services. The consumer's use is
final in the sense that the product is usually not improved
by the use.
 Difference b/w consumer & customers
• Consumer

The consumer is the end user of a product and actually uses

the product.

• An example of a consumer is the patron of a grocery store.

The patron buys groceries from the store to eat the food.
The grocery store bought those food items from farmers,
manufacturers and other vendors, so that it could sell these
items to consumers. The grocery store is the customer of
the farmers, and the patrons are the consumers of the
grocery store.
• Customer
The customer is an organization or person that purchases
a product but is not the end user of the goods.

• For example, assume a customer is the purchasing

department of an organization. Each department of the
organization places an order for goods or services that it
needs, such as paper for the administrative department.
The purchasing department finds a manufacturer that
sells the product and orders the product. The purchasing
department is the customer but the administrative
department is the consumer.
 Consumer behavior roles

• 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.
What are Nature/Characteristics of Consumer Behavior?
•Consumers are heterogeneous in nature

•Consumer behavior or buyer behavior is the process by which individuals decide

whether, what, when, from whom, where and how much to buy.

•Consumer behavior comprises both mental and physical activities of a consumer.

•It covers both visible and invisible activities of a buyer.

•Buyer behavior is very complex.

•Buyer behavior is very dynamic (changes sequencly).

•An individual’s behavior is influenced by internal and external factors.

•It is an integral part of human behavior.

•In many cases, it is the sum total of the behavior of a number of persons.

•It is influenced by a number of marketing stimuli offered by the marketer.

•It involves both psychological and social process.
•Consumer behavior is basically social in nature.
 Consumer movement in India
• Consumer movement in the present form came into being only in
the 1930's in the West and only in the 60's in India.

• The basic idea behind the consumer protection movement is

protection of the right of consumers

• The consumer movement exercises a considerable influence on the

socio-economic environment of business.

• In a country like India where there is a high percentage of illiteracy

among people, where people are less informed and where critical
goods are always in short supply, the Government has a
significant role in safeguarding the interests of consumers by
promoting a climate of fair competition and preventing exploitation
of consumers
 CONSUMER MOVEMENT
Consumer movements arose out of the following:
• Dissatisfaction of the consumers as many
unfair practices were being indulged in by
the sellers.
• There was no legal system available for
consumers to protect them from exploitation
in the market place .
The consumer movement highlights the following four fundamental rights of
consumers.
1. Right to Safety:
To be protected against the marketing of goods which are hazardous to health or
life?

2. Right to be informed:
To be protected against fraudu­lent, deceitful or grossly misleading information, ad­
vertising, labeling or other practices and to be given the facts needed to make an
informed choice.

3. Right to Choose:
To be assured access to a variety of products and services at competitive prices and
in those industries in which Government regulations are substituted, to be assured
satisfactory quality and service at fair price.

4. Right to be Heard:
To be assured that consumer interests will receive full and sympathetic
consideration in the formulation of Government policy and fair and expeditious
treatment in its administrative tribunals
 Consumer movement in india

• Consumer protection means safeguarding the interest and rights

of consumers.

• In other Words, it refers to the measures adopted for the protection

of consumers from unscrupulous and unethical malpractices by the
business and to provide them speedy redressal of their Grievances.

• The most common business malpractices leading to consumer

exploitation are given below.
• (a) Sale of adulterated goods i.e., adding something inferior to the
product being sold.
• (b) Sale of spurious goods i.e., selling something of little value
instead of the real product.
• (c) Sale of sub-standard goods i.e., sale of goods which do not
confirm to prescribed quality standards.
•  (d) Sale of duplicate goods.
• (e) Use of false weights and measures leading to
underweight.
• (f) Hoarding and black-marketing leading to scarcity and
rise in price.
• (g) Charging more than the Maximum Retail Price (MRP)
fixed for the product.
• (h) Supply of defective goods.

• (I) Misleading advertisements i.e., advertisements falsely

claiming a product or service to be of superior quality,
grade or standard.
• (j) Supply of inferior services i.e., quality of service lower
than the quality agreed upon.
 CONSUMER RIGHT’S
• Right to safety.
• Right to information.
• Right to choose.
• Right to heard.
• Right to redressed .
• Right to consumer education.
• Right to healthy environment .
• Right to basic needs.
 RIGHT TO
1. The conumer has the right to be informed

INFORMATION
about the quality, quantity, potency,
purity, standard and price of goods so as
to protect the consumer against unfair
trade practices.

2. Consumer should insist on getting all the

information about the product or service
before making a choice or a decision.
Consumer can then complain and ask for
compensation or replacement if the
product proves to be defective in any
manner.

3. This enables the consumer to act wisely

and responsibly and also enable him to
desist from falling prey to high pressure
selling techniques.
 RIGHT TO CHOOSE
1. The consumer has right to be assured,
wherever possible of access to variety
of goods and services at competitive
price. In case of monopolies, it means
right to be assured of satisfactory
quality and service at a fair price. It
also includes right to basic goods and
services. This is because unrestricted
right of the minority to choose can
mean a denial for the majority of its
fair share.
2. This right can be better exercised in a
competitive market where a variety of
goods are available at competitive
prices. Any consumer who recieves a
service in whatever capacity,
regardless of age, gender and nature
of service, has the right to choose
whether to continue to recieve the
service.
RIGHT TO SAFTEY
1. The conumers have the right to be protected
against the marketing of goods and
services, which are hazardous to life and
property. Producers need to strictly follow
the required safety rules and regulations.
There are many goods and services that we
puchase that require special attention to
safety. For example, pressure cookers have
a safety valve whih , if it is defective, can
cause a serious accident.

2. The manufacturers of the safety valve have

to ensure high quality. The purchased goods
and services availed of should not only meet
their immediate needs, but also fulfill long
term interests. Before purchasing,
consumers should insist on the quality of
the products as well as on the guarantee of
the products and services. They should
preferably purchase quality marked products
such as ISI, AGMARK, etc.
 RIGHT TO SEEK REDRESSAL
Consumers have the right to seek redressal
against unfair trade practices or
unscrupulous exploitation. It also includes
right to fair settlement of the genuine
grievances of the consumer. Consumers
must make complaint for their genuine
grievances.

Many a times their complaint may be of

small value but its impact on the society as
a whole may be very large.
They can also take the help of
consumer organizations in seeking
redressal of their grievances. A
consumer can claim compensation
for damage caused by any product or
service.
He/She can file a case in the consumer
court against the shopkeeper or
manufacturer.
RIGHT TO CONSUMER EDUCATION

The right to acquire the

knowledge and skill to be an
informed consumer throughout
life. Ignorance of consumers,
particularly of rural consumers, is
mainly responsible for their
exploitation.
They should know their rights
and must exercise them. The
government or other organisation
should make attempts to educate
citizens about various aspects of
consumer welfare.Only then real
consumer protection can be
achieved with success.
 Consumers have the right:

 To the satisfaction of basic needs

 To safety
 To be informed
 To choose
 To be heard
 To redress (to correct something that is unfair or
wrong)
 To a healthy environment
• The RIGHT to satisfaction of basic needs: To have
access to basic essential goods and services;
adequate food, clothing, shelter, health care,
education and sanitation.
• The RIGHT to be informed: To be given the facts
needed to make an informed choice, and to be
protected against dishonest or misleading advertising
and labeling.
• The RIGHT to get truthful and honest information
about the goods and services which are purchased.
• The RIGHT to choose between products of different
qualities and prices, which are required to satisfy our
needs: Personal demands, taste and others factors, of
course, affect prices.  It is the consumer’s right to choose
a level of quality and performance equal to the price
which he/she is prepared to pay.

• The RIGHT to safety in goods and services bought:  The

right to expect that household products and children’s
toys, when used according to manufacturer’s
instructions, will not explode, set houses on fire, or cause
personal harm or injury in any way.

• The RIGHT to be heard:  To complain to a retailer if one is

dissatisfied about a product or service. To have consumer
interests represented in the making and execution of
government policy, and in the development of products
and services.
• The RIGHT of redress:  means the right to a fair
settlement of just claims.  It includes the right to
receive compensation for misrepresentation,
shoddy goods or unsatisfactory services.

• The RIGHT to Consumer Education: means the right

to acquire the knowledge and skills to be an
informed and assertive consumer.
• The RIGHT to a Healthy Environment: means the
right to a physical environment that will enhance
the quality of life.  It includes protection against
environmental dangers over which the individual
has no control.
• The Consumer has the RESPONSIBILITY to protect
himself/herself  by:
• Shopping carefully and wisely
• Understanding the terms of the sale
• Reading and following instructions
• Getting guarantees in writing
• Saving receipts
• Asking questions at point of sale
• Keeping informed about new products
 Define consumerism

• a modern movement for the protection of the

consumer against useless, inferior, or
dangerous products, misleading advertising,
unfair pricing, etc.
Or
• protection of the interests of consumers
Or
• Consumerism is an organized movement of
citizens and government to strengthen the
rights and power of buyers in relation to
sellers
 Definition of consumerism
• Consumerism refers to the wide range of
activities of government business and
independent organizations designed to
protect rights of the consumers
•The consumer is exposed to many hazardous - physical,
environmental and exploitation due to unfair trade
practices.

•The consumer needs protection against products which

are unsafe for consumption such as drugs and
adulterated food products and products which may cause
injury such as defective electrical appliances.

•Consumer needs protection against mal-practices and

deceit by sellers.

•Consumer should have adequate rights and right of

recourse to redressal measures against defaulting
businessmen
 Examples of Consumerism acts
Some of them are as follows:-
1. Drug and Cosmetics Act, 1940
2. 2. Prevention of Food Adulteration Act, 1954
3. 3. Essential Commodity (supply) Act, 1955
4. 4. Monopolies and Restrictive Trade
Practices Act, 1969
5. 5. Standard of Weights and Measures Act,
1976
6. 6. Consumer Protection Act, 1986
NEEDS OF CONSUMERISM AND CONSUMER MOVEMENT

•Exploitation of consumer
•Poverty & illiteracy among consumer
•Ineffective consumer laws
•Information gap
• Providing consumer education.
• Providing consumer protection.
• Building pressure on government .
• Arranging consumer protection programmes.
• Organizing public opinion.
• Providing guidance to consumer.
• Consumer awareness
 Benefits of consumerism:
 Consumer education
 Product research & inform consumer
 economic growth,
 competition between companies
 diversity of choices,
 people generally have a variety of options
when buying products
 companies try to produce safe and reliable
products
Steps/Process Consumer Buying Behavior

Problem Recognition

Internal Search

Information Search

External Search

Evaluation of Alternatives

Abandon /Postpone
Purchase Decision

Post Purchase Evaluation