Consumer Behavior

INTRODUCTION:
The last twenty-five years have shown an effective
development of intensive efforts and research
oriented toward a better understanding of human
behaviour concerning its consumption activity.
The knowledge and understanding of consumer
behaviour has become a basic task both at the
entrepreneurial and institutional levels. Firms have
realized that since consumers have adopted a-more
aggressive and demanding role, they have to
modify their attitudes. At an institutional level,
every Government has necessarily to be aware
about the quality standards of living and welfare
of the people, being consumption a major issue of
this awareness.
 Consumer behaviour is a psychological part of an
individual which makes the difference in
purchasing any goods, services and anything else.
The behaviour of any consumer depends on many
factors which are very important for any marketing
management team in any business or any
organization which deals in directly to
consumers. The study of consumer behaviour
involves search, evaluation, purchase,
consumption and post purchase behaviour of
the consumers and includes the disposal of
purchased products keeping environment and
personal characteristics in mind. It is the body of
knowledge which studies various aspects of
purchase and consumption of products and
services by individual.
 FACTORS INFLUENCING THE
CONSUMERS’ BEHAVIOUR:

Next we are talking about the factors which are

very important in relation to influences on
consumer behavior. We find the study of
Consumer Behaviour is quite complex, because
of many variables involved and their tendency
to interact with & influence one another. These
variables are divided into three major sections
that have been identified as the most important
general influences on Consumer behaviour.
Imagine three concentric circles, one at the outer
most, one in the middle & one at the inner most,
and they represent the following.
 1.External Environmental Variables
Influencing Behaviour :

These are the factors controlled by

external environments like the following
form the basis of external influences over
the mind of a customer (outer circle) :
Culture, and Sub-culture, Social Class, and
Social Group, Family, and Inter-Personal
Influences, Other Influences (which are
not categorised by any of the above six,
like geographical, political, economical,
religious environment, etc.)
 Major individual determinants of
Consumer Behaviour are portrayed in the
middle ring. These are the human mind
and its attributes. These variables are
personal in nature and they are influenced
by the above set of external factors and in
turn influence the way consumers proceed
through a decision making process
regarding products & services. They are:
Personality & Self-concept, Motivation &
Involvement, Perception & Information
Processing, Learning & Memory,
Attitudes.
 3.The Consumer Decision Making Process:
The buying decision comes as a product of the
complex interaction of the external factors and
the personal attributes. The inner most circle
denotes the consumer decision making process
regarding products & services, whose major
steps are: Problem Recognition, Information
Search, Evaluation of Application, Purchase
Decision, Post-Purchase behaviour. Once we
are aware about the factors which directly or
indirectly influence the shopping behaviour of
any consumer then it is better to know about
marketing and its related activities. Next
heading which we are going to discuss is
introduction of marketing and marketing
management.
 THE CONSUMER BUYING
BEHAVIOR PROCESS:

1. Buyer Recognition: the consumer

has to realize there is a problem or
need that needs to be fulfilled. The
effective marketer will identify
there is a difference between the
actual state of the consumer and the
desired state, and try to fulfill this
state of deprivation.
 buyer considers all the alternatives
present. For instance, according to the
example above, the customer would
look at all thirst quenchers such as fizzy
drinks, bottled water, juices and ice
lollies. The most information a
customer gains about alternatives is
through commercial sources, such as
advertisements and campaigns.
However information about intangible
products in the service industry would
mostly come from personal experience
or experience from others.
 3. Evaluation Of Alternatives: this is
where all the information is gathered and
evaluated to help make the purchasing
decision. These three stages are important,
for marketers to understand consumer
behavior and what influences purchasing
of a certain product category and brand.

4. Purchase Decision: this is the stage

where purchasing of the most preferred
alternative takes place. However the
product category, brand, reseller, timing
and quantity all play a role in the purchase
decision.
 5. Post Purchase Decision: Good marketers
maintain a good relationship with the customer
even after the purchase has been made. This is to
reduce any chance of cognitive dissonance that
the customer may experience with the
product. To reduce the negative effects of
ustomer
cognitive dissonance, good after sales services
could be provided along with effective
advertising. This will attract more customers via
word of mouth and generate repeat purchases. To
be cost effective marketers should remember
to target the potential customers of the
company's marketing mix. There is no point in
wasting time targeting those who will never
purchase your product. Therefore effective market
segmentation is extremely crucial.
 CONSUMER RESEARCH
METHODS:

Market research is often needed to

ensure that we produce what
customers really want and not
what we think they want. There
are two main approaches to
marketing.
 1. Primary Research: is research that you
design and conduct yourself. For example,
you may need to find out whether
consumers would prefer that your soft
drinks be sweeter or tarter. Research will
often help us reduce risks associated with a
new product, but it cannot take the risk away
entirely. It is also important to ascertain
whether the research has been complete. For
example, Coca Cola did a great deal of
research prior to releasing the New Coke, and
consumers seemed to prefer the taste.
However, consumers were not prepared to
have this drink replace traditional Coke.
 2. Secondary Research: involves
using information that others have
already put together. For
example, if you are thinking
about starting a business making
clothes for tall people, you don’t
need to question people about
how tall they are to find out how
many tall people exist—that
information has already been
published by the U.S.
THANK YOU
 THERE ARE FOUR MAIN APPLICATIONS OF
CONSUMER BEHAVIOR

1. Marketing Strategy: It is for making better

marketing campaigns. For example, by
understanding that consumers are more receptive to
food advertising when they are hungry, we learn to
schedule snack advertisements late in the afternoon.
By understanding that new products are usually
initially adopted by a few consumers and only
spread later, and then only gradually, to the rest of
the population, we learn that companies that
introduce new products must be well financed so
that they can stay afloat until their products become
a commercial success and it is important to please
initial customers, since they will in turn
influence many subsequent customers’ brand
choices.
 Accutane, a near miracle cure for
acne, was introduced. Unfortunately,
Accutane resulted in severe birth
defects if taken by pregnant women.
Although physicians were instructed to
warn their female patients of this, a
number still became pregnant while
taking the drug. To get consumers’
attention, the Federal Drug
Administration (FDA) took the step of
requiring that very graphic pictures of
deformed babies be shown on the
medicine containers.
 3. Social Marketing: It involves getting ideas
across to consumers rather than selling
something. Marty Fishbein, a marketing
professor, went on sabbatical to work for the
Centers for Disease Control trying to reduce the
incidence of transmission of diseases through
illegal drug use. The best solution, obviously,
would be if we could get illegal drug users to
stop. This, however, was deemed to be
infeasible. It was also determined that the
practice of sharing needles was too ingrained in
the drug culture to be stopped. As a result, using
knowledge of consumer attitudes, Dr. Fishbein
created a campaign that encouraged the cleaning
of needles in bleach before sharing them, a goal
that was believed to be more realistic.
4. Studying Consumer Behavior Make
Us Better Consumers: Common sense
suggests, for example, that if you buy a
64 liquid ounce bottle of laundry
detergent, you should pay less per
ounce than if you bought two 32
ounce bottles. In practice, however,
you often pay a size premium by
buying the larger quantity. In other
words, in this case, knowing this fact
will sensitize you to the need to check
the unit cost labels to determine if you
are really getting a bargain.
 OBJECTIVES: There are following
objectives

1.To analyse the role of consumers’

behavior in marketing management.

2.To analyse various research reviews

related to consumers’ behavior in
present marketing management.

3.To analyse influence & related

information of consumers’ behaviour in
present marketing management.
THANK YOU
 Psychographic
Segmentation – 5 factors
for Marketing
 Segmentation is used mainly to 
target a certain group from within
a population. Psychographic
segmentation is one which uses
peoples lifestyle, their activities,
interests as well as opinions to
define a market segment.
Psychographic segmentation is
quite similar to behavioral
 Psychographic segmentation.
But psychographic segmentation
also takes the psychological
aspects of 
consumer buying behavior into
accounts. These psychological
aspects may be consumers’
lifestyle, his social standing as
well as his AIO. Do refer more
to Activities, interests and
opinions about psychographic
segmentation.
 Here are some factors which help divide a
population based on psychographic
segmentation.

1) Lifestyle

There are various segments which have become

popular in retail but one of the most popular
segments is the lifestyle segment. Everyone has
different clothing habits based on their
lifestyle. The customer might be school going,
college going, office going or other. Thus by
lifestyle we mean, where does the customer
stand in his life cycle.  Similarly, the lifestyle of
a rural area customer might be different from
urban areas.
2) Activities interests and opinions about
psychographic segmentation

A subset of lifestyle, activities interests

and opinions also affect 
consumer buying behavior that is why
psychographic segmentation is important
for this type. Different customers might
have different activities and interests. I
might like the Harry potter books and you
might like Lord of the rings. But both of
us like reading! Similarly, Activities,
interests and opinions tell us a lot about a
customers’ psyche.
 3) Values attitudes and lifestyle

Another concept which is a subset

of the lifestyle segment is values
 attitudes and lifestyles. Each of us
carries a cultural value inherent
since birth because of where we
were raised. Our bringing up also
contributes to our lifestyle. As a
result, each customer has separate
values, attitudes and lifestyle.
 4) Social Psychographic
Segmentation

Different consumers fall in different
social classes. This depends mainly
on their buying power. The buying
power is affected by the 
background of the customer, his
income as well as his spending
habits. The customer will always
buy to maintain his social class.
 5) Personality Psychographic
Segmentation

Personality in psychographic
segmentation is dependent on both –
lifestyle as well as social class. A person
will have a rich personality only if he
has high buying power as well as the
taste in clothes to maintain such a
lifestyle. Thus the term “
Brand personality” came into effect.
The reason for that is that different
brands target different personalities.
 Subculture vs Culture

A subculture is a self-organized
tradition of shared interests,
lifestyles, beliefs, customs, norms,
style or tastes.
A culture is a shared social
tradition that may include language,
social norms, beliefs, art, literature,
music, traditions, pastimes, values,
knowledge, recreation, mythology,
ritual and religion.
THANK YOU
 Family Buying Influence on Consumer Behaviour

Family is a social group. It is also an earning,

consuming and decision-making unit. All purchases
are influenced by family members. Family is a
closely-knit unit, and the bonds in a family are more
powerful than in other groups. A reciprocal
influence operates in all family decisions. There are
three main influences which are father, mother and
other family members. Every member has his own
motives, beliefs and predisposition to the decision
process. Every member is influenced and influences
other family members. There is a reciprocal
influence exerted in the decision process other
family members. It becomes important for a
marketer to sort out all family influences, and
formulate a strategy for effective marketing.
 which young people acquire the skills,
knowledge and attitudes relevant to their
functioning as consumers. Interactions
take place in a family which develops
tastes, preferences, shopping styles, choice
of clothes to wear. How much money to
spend, where to buy from, what to use at
which occasions. The figure show a
consumer is socialised. There are a
number of background factors like the
age, sex, social class, etc. Then there are
the socialising agents from whom they
learn. These are media, family members,
peers and teachers.
These influence the learning mechanism
and the result is a socialised consumer.
Advertising and promotional activities
have a strong influence on consumer
socialisation. It can also be done by the
family members through:

Instrumental training: In this the parent

teaches the children the value of food,
which to consume which to keep away
from. What choice is to be made for
clothes, what products to refrain from.
How to avoid dysfunctional behaviour.
 Modeling: When a child learns
the behaviour by observing
others. It can be consciously or
subconsciously learnt. One such
example is smoking.

Mediation: To make the children

realise the facts by discussion, or
by demonstration, or by any other
method available.
 Inter-generational Influences
By this we mean that children learn
from their fathers and fore fathers. A
child is influenced through generations,
which develop religious and cultural
values. The attitudes are developed
towards sports, leisure, education,
social life. This is known as the
intergenerational carry over. Children
learn to use products and services used
by their family members, mostly
parents and grandparents and some take
pride in it too.
 Family Decision-making
In a family there is the
Instrument role: Taken by the
head of the family for the
achievement of special goals.
Expressive role: Undertaken
by the wife and other family
members to provide emotional
support
 over
Important buying roles are:
The instigator (initiator): Person who first
suggests the idea of a product/service and
initiates the purchase process.
The influencer: Person having
direct/Indirect influences, on final
purchase decision.
The decider: Person who makes the final
decision.
The purchaser (buyer): Person who
actually purchases the product, pays for it,
takes it home.
The consumer: User of goods/service.
Family Decision Stages
Problem recognition
Search for information
Evaluation of
alternatives
Final decision
Husband-wife influence studies,
classify consumer decisions as:
Wife-dominant
decisions, e.g., food, purchase of
groceries.
Husband-dominant
decisions, e.g., automobiles, life
insurance.
Syncratic decisions
(joint), e.g., vacations, choice of
schools for children.
Automatic decisions (unilateral)
Decisions may either be:
Consensual: Everyone in
the family may agree
with the desired
outcome.
Accommodative: Need
conflict resolution by
persuasion or bargaining.
 is obtained from:
Economic resources: Persons
making greater economic
contribution have more economic
power.
Cultural norms: In a male
dominated society husband has
greater powers.
Expert power: More knowledge a
person possess. Husband may know
more about cars wife may know
more about household items.
 Legitimate power: This depends
on the role the family members
play.
Bargaining power: Power through
give and take method.
Reward/referent power: Giving
rewards to others which are liked
and appreciated. 
Emotional power: Purchase
decisions are influenced by
emotions, sentiments and feelings
of one partner.
THANK YOU!
 Personality
signifies the inner psychological
characteristics that reflect how a
person reacts to his environment.
Personality shows individual
choices for various products and
brands. It helps the marketers in
deciding when and how to
promote the product. Personality
can be categorized on the basis of
individual traits, likes, dislikes, etc.
 Trait Theory
Traits are the features of an individual or tendency
of an individual in a particular manner. Traits help in
defining the behavior of consumers. According to
the Trait theorists, an individual’s personality make-
up stems out of the traits that he possesses, and the
identification of traits is important.
Following are the few of the most common traits −
Outgoing
Sad
Stable
Serious
Happy go lucky
Relaxed
Self-assured
Practical
Imaginative
 Self Concept
Self-concept is defined as
the way, in which we think,
our preferences, our beliefs,
our attitudes, our opinions
arranged in a systematic
manner, and also how we
should behave and react in
various roles of life.
 concept
Self-Concept is Organized
We all have various views about
ourselves. We all may think we are kind,
calm, patient, selfish, rude and what not.
It doesn’t matter what perception you
have about yourself, but the one
perception that facilitates all these
insights is an organized self-concept.
When a person believes in something
that matches his self-concept he sticks to
his view and does not agree to change the
same and even if it does, it takes a lot of
time.
 Self Concept is Learned
It is believed that self-concept is learned
and no person is born with a self-concept.
It develops as and when we grow old. Our
self-concept is built when we meet people
socially and interact with them. We are the
ones who shape or alter our self-concept
and its quite natural that we may have a
self-concept different for ourselves as
compared to what people think about us.
For example − If an individual thinks, he
is very generous and helpful, it may not
necessarily be the case with others. Others
may see him as a selfish person.
 Self Concept is Dynamic
Our self-concept in life is not constant and it
may change with instances that take place in
our lives. When we face different situations
and new challenges in life, our insight
towards things may change. We see and
behave according to things and situations.
Thus, it is observed that self-concept is a
continuous development where we let go of
things that don’t match our self-concept and
hold on those things that we think are helpful
in building our favorable perception.
Self-concept is the composite of ideas,
feelings, emotions, and attitudes that a person
has about their identity and capabilities.
THANK YOU!
Consumer Motivation &
Involvement –
Influences On Buying
Behavior
 Motivation and Consumer Involvement are two
crucial sides of the decision making pertaining to
the purchase of products. They are inseparable
attributes that influence the consumers to make
their decision to buy or not buy a product. A
motivated consumer gets involved in research and
analyses activities pertaining to his purchase
activity before taking the final decision. Any
consumer who gets initiated into the purchase
process feels motivated by many factors that are
internal and external in nature. Looking at
motivation and related theories would substantiate
the role of the same in consumer involvement in
an elaborate manner.
There are many Motivation Theories formulated to
chalk out the relationship between consumer
behavior and Motivation. Some such
 Theories are enlisted below for clear
understanding.
Maslow’s Theory of Motivation – Divides
motivation based on five types of needs which
are:
Physiological – Necessities like food, shelter,
physical pleasure and clothing
Social – Acquaintances, friendships, desire to be
loved
Safety – Self-security, the safety of one’s
belongings, safety pertaining to money and job,
etc.
Esteem – Status in terms of financial class,
prestige, ego satisfaction, etc.
Self-actualization – Feeling of fulfillment on all
aspects of life being lived
 – Divides motivation based on different
types of needs which are
Need to attribute causation – Attributing
the reason for a decision on self or others
Need for consistency – Displaying constant
patterns in all aspects of life
Need for cues – Providing cues that suit
consumer mindset who desires for a
particular lifestyle
Need to categorize – Categorizing products
value-wise or model-wise for ease of
decision making
Need for Novelty – Introducing new features
and characteristics in products and
experiences
 Need for Independence
– Consumers enjoy products that
express or makes them feel free
Need for Ego Defense – Going in
for famous brands to show off one’s
status symbol
Need for Self Expression
– Purchasing products that reveal
our self-identity and thoughts
Need for Reinforcement – Buying
products based on appreciations
from other consumers
 products ascertaining their high-
performance levels
Need for Modeling – Promoting a
product using amour personalities
Need for Affiliation – Using products
recommended by friends to get the
feeling of affiliation
Needs utilitarian in nature – Buying
products purely based on the utility
value
Needs Hedonistic in nature – Buying
products that offer more of physical
pleasures
 products approach consumers based
on one of the motivations mentioned
in the above lists, their involvement
levels are high. Let us have a
detailed look at Consumer
Involvement.
Definition of Consumer
Involvement
Consumer Involvement here refers
to the depth of interest in a product
or service displayed by consumers
through their behavior and approach.
 The aspect called Consumer
Involvement has many striking
characteristics. Key characteristics of
Consumer Involvement are:
Exerts high levels of influence over the
personal choice of consumers
Directly related to the self-concept
aspect of consumers
Arouses interest in consumers in one
form or the other
Involvement levels vary from one
customer and another depending on
The various factors surrounding them
 Levels of Consumer
Involvement
Consumer Involvement can
basically be classified into
three types based on the
level of intensity.
High Involvement
Low Involvement
Routine or least
Involvement
 High Involvement is witnessed in
consumers when the products bought
are of huge value. Products that
consumers buy probably once or
maximum twice in a lifetime fall
under this category. Consumers take a
lot of precautionary measures while
going in for buying such products in
order to avoid taking any sort of risk
post-purchase. Huge money is at
stake and so the care being taken by
consumers is also high.
 Low Involvement is
witnessed in customers who
go in for products that are
not purchased frequently but
is changeable after a few
years. Television sets,
refrigerators, wooden
almirahs, etc. fall in this
category.
 Routine or Least
Involvement – Products that
are purchased month on
month as a need fall under
this category. Consumers
generally stick to a brand as
far as the purchase of
products like toothpaste,
body soaps, and talcum
powder are concerned.
THANK YOU!
Organizational Buying
Behavior
Organizational Buying Behaviour is
a complex decision-making and
communication process involving
the selection and procurement of
products and services by
organizational buyers. Individuals,
organizations, or government
agencies that make a purchase
decision regarding raw materials,
products and services, components,
or finished goods are known as
organization buyers.
 Industrial Buyers – Purchase products on
behalf of their business or organization

Since the organizational buyers or industrial

buyers are motivated or influenced more by
profit objectives and less by personal motives,
therefore it is empirical to understand the buying
behavior of organizational buyers and formulate
marketing strategies for organization buyers that
are different from strategies for regular
consumers.
Usually, the buying decisions in an organization
are taken by the Buying center which may
consist of the top management or the members
of the procurement committee or any other
department.
 behavior
Every organization is unique – As different
organizations have different organizational
structures, organization cultures, values,
objectives, and resources. Therefore they also
have a unique set of needs, demands and exhibit
unique buying behavior.
There is a long time lag between efforts and
results – In the process of individual buying, the
time taken between a purchase decision and
sales transaction is shorter than industrial
buying. This is due to the extra formalities and
procedures that are to be followed in the
organizational buying process. For e.g. asking
quotations, evaluating tenders, preparing bulk
orders, etc.
 It is rational as well as emotional activity
– Due to the presence of human beings in the
purchase process, it gives rise to the emotional
element involved in buying. An industrial buyer
may select the quantity and quality of a product
on the basis of specified organization norms but
may choose dealer on the basis of his personal or
political affiliation or past experience with the
dealer.
It is a formal activity – Organization buying
involves a formal contract between the buyer
and seller. It is a formal activity that requires the
buyer to follow rules and procedures laid down
by the organization regarding the type, quality,
quantity, terms of payment, delivery time, etc.
while making a purchase decision.
 taken by a team of qualified personnel
also referred to as buying center where
each individual plays different buying
roles.
Other characteristics of organization
buying:
There are few industrial buyers and many
individual buyers.
Organization buyers usually buy in bulk.
The role of middlemen is reduced as the
buyers buy directly in bulk from
manufacturers.
Organizations generally have an inelastic
demand.
THANK YOU!
The 8 Principles of
Customer Delight
Delighting customers is
about more than just
meeting their needs in
the moment. It's about
building authentic
relationships that stand
the test of time.
 If a customer complains or is unhappy with your
product or service, don't be discouraged. If they
cared enough to share their feedback, you have
been given a great opportunity to better understand
what is needed to truly delight your customer base.
Customer delight is a core value at Porch.com. We
literally have this value painted on our walls. So
how do develop a culture that places an emphasis
on customer delight? Here are eight principles to
live by.
1. Always be timely
In today's business world, speed is essential. If your
company delays in responding to customers, you're
missing a huge opportunity to capture valuable
insights and feedback. Don't give your competitors
an opportunity to serve your customer better and
faster than you can.
 2. Always listen to your customers ...
The Lean Startup preaches that to build
something useful entrepreneurs need to
develop products and test them with real
customers. The same goes with serving your
customers and understand their needs. Listen
to customer feedback religiously. To this day,
I still read every piece of customer feedback
sent to our company and I make an effort to
share those insights across the company to
ensure we are continuously building the right
products and features. If you don't have a
"Feedback" link on your site that distributes
customer feedback to your entire leadership
team, add it.
 (not always what they want)
Henry Ford said it best when he
claimed, "If I had asked people what
they wanted, they would have said
faster horses." It's crucial to get real
customer feedback on their needs and
wants, but when it comes to building
products, use your own vantage point to
build something that's both realistic and
useful. Some of the greatest products
out there people didn't know they
wanted until they arrived, and now they
can't live without them.
 4. Give customers little things
when they don't expect it.
Uber and Lyft are continually
locked in a heated battle for
market share. Anyone who uses
their services knows the amount
of unexpected rewards or credits
they offer all the time. They know
that one way to a customer's heart
is showing them they care about
them more than the bottom line.
 5. Give customers a point of
contact
It's very important for
customers to know that they
have someone they can come
to with concerns or comments.
Giving them a specific person
as a point of contact at your
business humanizes the
relationship.
 6. Give customers space
As a customer yourself, have you
ever gotten too many emails
from a company? It can be
extremely frustrating and
harmful to a business-customer
relationship. Even for companies
with the best intentions in mind,
remember that sometimes it's
best to step back and give
customers space.
7. Have policies, but always be
flexible
With customer service, not every
situation is black and white. We
have policies for how we deal
with certain customer issues, but
the truth is, every situation is a
little different and it should be
treated as such. Always be open
to flexibility in order to please a
customer.
 will help them
Many times when customers call in
for support, they get told that their
problem is being fixed, but they
don't really know what that means.
People like to know what's going on
and if your customer has a problem
or issue with your company, explain
to them the steps you will take to
solve it. The transparency will be
appreciated.
THANK YOU!
 Question:
What have you
learned in our topic
from 1 topic up to the
st

last topic? Can you

briefly discuss or
summarize it?
 Thank you so much for
letting me share my
knowledge to you class, I
hope it will help you a lot
especially in a work proper
and studies, again thank you
it my pleasure to be your
professor or mentor.