Meaning of Consumer Behaviour, Features and Importance • Types of Consumer (Institutional & Retail), Diversity of consumers and their behaviour- Types Of Consumer Behaviour • Profiling the consumer and understanding their needs • Consumer Involvement • Application of Consumer Behaviour knowledge in Marketing • Consumer Decision Making Process and Determinants of Buyer • Behaviour, factors affecting each stage, and Need recognition.

1. Unit 1
Consumer Behaviour
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3. CONSUMER BEHAVIOUR
Consumer behaviour is the study of how individual
customers, groups or organizations select, buy, use,
and dispose ideas, goods, and services to satisfy their
needs and wants.
It refers to the actions of the consumers in the
marketplace and the underlying motives for those
actions.
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5. According to Engel, Blackwell, and Mansard, ‘consumer behaviour is
the actions and decision processes of people who purchase goods
and services for personal consumption’.
According to Louden and Bitta, ‘consumer behaviour is the decision
process and physical activity, which individuals engage in when
evaluating, acquiring, using or disposing of goods and services’.
According to Belch and Belch "consumer behaviour 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".
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6. FEATURES
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7. PROCESS
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8. Undergoes a constant change:
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9. Varies from consumer to consumer
Varies from region to region and country to county
Information on consumer behaviour is important to the marketers
Leads to purchase decision
Varies from product to product
Improves standard of living
Reflects status
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10. IMPORTANCE OF CB
Highly diversified consumer
preferences
Rapid introduction of new
products
Rapid introduction of new
products
Production policies
Price policies
Decision regarding channels of
distribution
Decision regarding sales promotion
Exploiting marketing opportunities
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11. Types of Consumer (Institutional &
Retail)
RETAIL CONSUMER (BUYS GOODS FOR SELF CONSUMPTION
OR FOR GIFTING A FRIEND)
ORGANISATIONAL CONSUMER (BUYS GOODS AND SERVICES
TO RUN THEIR ORGANISATIONS)
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12. Stages of consumer buying decision process
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13. Determinants of consumer buying behavior./
factors affecting each stage
Cultural factors
Social factor
Personal factors
Psychological factors
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14. CULTURAL FACTORS
Culture: culture affects a lot the consumer buying behavior. It is the
family values, beliefs, perceptions and preferences affect the
consumer buying behavior.
Subculture: the culture includes subculture in it include nationality,
religious group, and communities etc. which affect the consumer
behavior.
Social class: it means to divide the society in different social classes,
the members of different social class has different likings.
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15. SOCIAL FACTORS
Family: the members of family also affect the buying behavior of consumer. Family
includes of:-
Influencer- the person who senses the need to buy a product.
Decider- the person who takes final decision to buy the product.
User- the person who finally uses the product.
Reference group: family alone does not affect the consumer buying behavior but also
the group outside the family also affects the consumer behavior. It includes the persons
with whom we interact like friends, neighbors, co- workers etc.
Role and status: role played by the person in the society are so many. Like a person
plays the role of son, husband, brother, father, businessman etc. in his life. So the
consumer buying behavior depends upon the role played by him.
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16. PERSONAL FACTORS
Age and life style: the consumer buying behavior changes with the change in the age. Like very
small child need toys to play with them and when they grow they need games, computer etc.
thus, liking of consumer changes with the age.
Occupation: occupation also affects the consumer behavior to buy the goods. Like an worker
needs simple clothes while his boss needs expensive designer suits to wear.
Income: the income also affects the consumer buying behavior because if the person is rich he
can buy anything which he wants to buy but for a poor person it is not be easy to buy the things
which are beyond his pocket.
Life style: it is the way of living of the person. Like some people like luxury livings while some in
simple living.
Personality: personality includes extrovert or introvert which also affects the consumer buying
behavior.
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17. PSYCHOLOGICAL FACTORS
Motivation: when the buyer’s need is raised to a particular level they become
the motives which mean “I want to achieve this” which ultimately affect the
consumer buying behavior.
Perception: this is how the consumer receives, selects and organizes the
information which helps him in buying the goods.
Learning: learning experience is helpful in affecting consumer buying behavior.
Beliefs and attitude: belief means the opinion or mind set relating to a particular
object; attitude means the feeling of buyer towards the object. So the marketer
should keep in mind the beliefs and attitude of the consumer.
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18. CONSUMER INVOLVEMENT
Low involvement
High involvement
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19. LOW INVOLVEMENT
Low involvement products, as the name suggests, are
products where the consumer does not need to think too
much before purchasing the product.
There is not much risk involved in low involvement
purchase, as a result of which decision making is much
faster.
Most FMCG products can be classified as a low involvement
product.
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21. Low price
A soap has a very less price and mostly all soaps perform the same function.
Hence, Soaps are low involvement purchase.
Low risk factor
A consumer will think very less when purchasing chips or chocolates for himself
but he might think longer and in depth when purchasing a watch for himself or
his loved ones.
Not much differentiation
If Bisleri is not available, the customer will buy Aquafina or any other mineral
water brand that is available.
Brand switching
Availability and distribution
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22. Impulse buying
Chocolates are kept at checkout counter in FMCG stores. Similarly accessories
are kept at checkout counters in Mobile stores or in stores of consumer
durables. If you need the accessory, you might buy it on impulse, because many
accessories can also be characterised as low involvement purchase.
Repeat purchase
I have always used head and shoulders as a shampoo. So i always purchase the
same. Purchasing a shampoo from the market is a no brainer for me. But if i am
going to purchase something new for the first time, i might think a bit more. Still
i won’t think of purchasing a shampoo as much as purchasing a new laptop or a
new car.
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23. high involvement
A high involvement product is a product where extensive thought process is involved and the
consumer considers a lot of variables before finally making a purchase decision. Many times,
high involvement purchases involve multiple buyers or multiple influencers who influence a
single buyer.
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25. High price
Differentiation is important
Brand recall and valuation
Look at speakers of Bose which are considered as high involvement
products mainly because of their premium price in a category where
there are cheap speakers as well.
Customer perceived risk
A team of purchase managers decides to buy a state of the art
equipment for their factory. This is a B2B high involvement purchase.
Naturally, because the company is spending a huge amount for the
new equipment, they have the fear that the machine should be high
performing and efficient, else all the money and time invested will
be wasted.
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26. Available Information / Company communications
After sales service
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27. Application of Consumer Behaviour
knowledge in Marketing
PROJECT
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28. Types Of Customers based on Consumer
Behavior
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Need-based customers
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Loyal customers
Loyal customers Discount customers
These are the types of customers who
never buy a product on full price. They
always look for a discount on the product
they want to buy. Such customers never
shop for anything off-sale. These types of
customers make the biggest portion of total
customers of a company. Discount
customers are the least loyal customers
and they easily move on when getting
better offers by some other company.
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Impulsive customers
Potential customers
These types of customers need a little
bit of encouragement and attention
before buying your product. To deal
with such customers, you should
show them some value and assist
them by providing information about
the products they are interested in.
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New customers
Wandering customers
The most common example of these types
of customers is a group of college students
come to kill time in malls. They enter any
store and make queries about the random
products. You should never spend a lot of
time on them. However, providing them with
insightful information can convert them into
potential future customers.
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32. Profiling the consumer and
understanding their needs
A customer profile basically tells you everything about a customer, his demography, geography,
psychological thinking, behavioral aspects etc.
Making a customer profile is important for a company because any company wants to reach
a target market.
Therefore, to reach the target market, the company needs to understand the target customer
profile which can be influenced through various marketing means.
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33. How to create a Customer Profile for your
target customers?
Demographics Standard of Living Geographical Region
Geographical Region Purchase History
After collating all the necessary information, the management can have an
online database containing such information.
In just one click, they shall be able to access and fetch the required customer profile data and
carry out their further activities.
On the whole, a strong and concrete profile of customers is integral to the acceptability of the
product by the targeted consumers and the success of the brand, in the long run. It is the central
pillar of the brand building.
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