A CUSTOMER IS THE MOST IMPORTANT VISITOR ON
OUR PREMISES,
HE IS NOT DEPENDENT ON US,
WE ARE DEPENDENT ON HIM.
HE IS NOT AN INTERRUPTION ON OUR WORK, HE IS
THE PURPOSE OF IT.
HE IS NOT AN OUTSIDER ON OUR BUSINESS
HE IS A PART OF IT.
WE ARE NOT DOING HIM A FAVOUR BY SERVING
HIM,
HE IS DOING US A FAVOUR BY GIVING US THE
OPPORTUNITY TO DO SO.
MAHATMA GANDHI

Consumer Behaviour
 The term Consumer Behavior, individual buyer
behavior, end user and consumer buying behavior all
stands for the same.
 It includes the study of what they buy, why they buy it,
when they buy it, where they buy it, how often they
buy it, and how often they use it.

Consumer behaviour refers to the actions of consumers in
the market place& underlying motives for those actions.
 Marketers need to understand why customer buy a
particular goods & services they will be able to
determine-
 Which products are needed in the market place,
 How best to present the goods to the consumers. product
 It attempts to understand the buyer decision making
process, both individually and in groups. It also tries to
assess influences on the consumer from groups such as
family, friends, reference groups, and society in general.

Consumer Behaviour

Consumer Behaviour

Consumer Behaviour

Concept of Consumer Behavior
 Consumer Behaviour is the study of the following
elements:
Why and why not a consumer buys product?
When a consumer buys a product?
How a consumer buys a product?
 The people do or do not buy a product.

Difference between Consumer and
customer
 Generally, a consumer refers to individuals who buy for themselves or
their family (hence the term 'consumerism' in economics and politics),
whereas a customer can also mean the retailer or person who buys
from the manufacturer, etc. for ultimate sale to others.
The one who buys the product is called a customer and the who uses
the product is called a consumer.
 A consumer is anyone who typically engages in any one or all of the
activities mentioned in the definition. Traditionally, consumers have
been defined very strictly in terms of economic goods and services
wherein a monetary exchange is involved. This concept, over a period
of time, has been broadened. Some scholars also include goods and
services where a monetary transaction is not involved and thus the
users of the services of voluntary organisations are also thought of as
consumers. This means that organisations such as UNICEF, CRY, or
political groups can view their public as "consumers".

Definition
 “Consumer Behavior is the process and activities
people engage in when searching for, selecting,
purchasing, using, evaluating, and disposing of
products and services so as to satisfy their needs and
desires.”
Belch and Belch

Characteristics of Consumer
Behavior.
 Information search
 Brand Loyalty
 Price Elasticity of Demand.

Scope of Consumer Behavior
 ‘What’ the consumers buy: goods and services
 ‘Why’ they buy it: need and want
 ‘When’ do they buy it: time: day, week, month, year,
occasions etc.
 ‘Where’ they buy it: place
 ‘How often they buy’ it: time interval
 - ‘How often they use’ it: frequency of use .

Significance of Consumer
Behavior.
The Study of Consumers’ Behavior is vital in framing production
policies, price policies, decisions regarding channels of distribution
and decisions regarding sales promotion.
 Production Policies
 Price Policies
 Decision regarding channels of distribution
 Decision regarding sales promotion
 Exploiting Marketing Opportunities of competitors
 Consumer do not always act or react Predictably
 Consumer preference are changing and becoming highly diversified.
 Rapid Introduction of New Products
 Implementing the “Marketing Concepts”

Dimensions of Consumer Behavior
who buy
when they buy
how they buywhere they buy
why they buy

Factors affecting consumer
behavior
1. Psychological factors
2. Sociological factor
3. Economic factor

1. Psychological Factor
a) Motivation – motivation is a willing to achieve a certain goal,
motivation could be effected because of consumer financial
circumstances.
b) Perception - what perception consumer have about a certain product
c)Knowledge & Education Level - Every consumer takes decision
according to their knowledge and education level so consumer
behavior can change if they feel new information about a product. So
knowledge and education is an important factor for consumer to buy a
product or hiring services
d) Attitude - consumer attitude suggest how they are motivated towards
a product
e)Life Style – how consumer give value of their life and what way life they
spending.
f) Culture – culture is an external influence, how we live and what we
consume.
g)Group Membership – another external influence factors , often
consumer belong to many other groups which may affect consumer
decision making

2. Sociological factor - A lot of sociological factor could
affect consumer behaviour like Family life, age,
education level, good and bad sociological influences.
3. Economic Factor - Economic factor is a significant
factor in consumer behavior , a lot of consumer can
suffer because of poor economic conditions.

 The Internal Influences of CB
 1)Psychological factors
 a=> Motivation
 b =>Perception
 c=>Learning
 d =>Beliefs and Attitude
 2)Personal factors
 a=>Age and Life Cycle Stage
 b=>Occupation and Economic
 c=>Circumstances
 d =>Personality
 e =>Life style
 f =>Self image

State the External Influences of
CB
1. Socio-cultural Influences
 culture
 Sub culture
 cross culture
2 Social class
 Upper class
 Middle class
 Working class
 Lower class.
3 Family
4. Reference Group
5. Roles and Status

Applications of knowledge of
consumer behavior in marketing
decisions
 Analyzing market opportunity
 Selecting the target market
 Determining the marketing mix
 Product ( ex : Maggi)
 Package
 Price
 Promotion
• Use in Non-profit and Social Marketing

Attractive packing to attract the
customers

Pricing Strategy

Promotional activities