Consumer Behaviour

Dr. Jay Prakash Verma

-
PhD.,MBA-PGDM, M.Com, UGC-NET
 CONSUMER BEHAVIOUR
• THE BEHAVIOUR THAT CONSUMERS DISPLAY IN
SEARCHING FOR, PURCHASING, USING,
EVALUATING, AND DISPOSING OF PRODUCTS AND
SERVICES THAT THEY EXPECT WILL SATISFY THEIR
NEEDS.

• STUDY OF HOW INDIVIDUALS MAKE DECISIONS TO

SPEND THEIR AVAILABLE RESOURCES <TIME…
MONEY…EFFORT> ON CONSUMPTION RELATED ITEMS.
 CONSUMER BEHAVIOUR
• 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

• STUDY OF THE PROCESSES BY WHICH CONSUMERS MAKE DECISIONS.

• MORE SPECIFICALLY, IT IS CONCERNED WITH HOW CONSUMERS
ACQUIRE, ORGANIZE AND USE INFORMATION TO MAKE
CONSUMPTION CHOICE.
CB : A SYNTHETIC FIELD OF STUDY
SOCIAL
PSYCHOLOGY PSYCHOLOGY

CONSUMER
BEHAVIOUR

ANTHROPOLOGY SOCIOLOGY

ECONOMICS
 STUDY OF CB
• Provides Insights Why Consumers Buy
Goods And Services
• How Their Purchase Decisions Are Made,
And,
• Factors That Influence Their Decision-
making Processes
 STUDY OF CB
To Marketers :
Knowledge of why and how Individuals make their Consumption Decisions

Help them in making better strategic marketing decisions

And, in predicting how consumers are likely to react to various

informational and environmental cues
 Impact Of Emerging Digital Technologies

• Consumers have more power than ever before.

• Consumers have access to more information than ever before.
• Marketers can and must offer more services and products than
ever before.
• The exchange between marketers and customers is increasingly
interactive and instantaneous.
• Marketers can gather more information about consumers more
quickly and easily. “Narrowcasting’
• Impact reaches beyond the PC based connection to the web.
 Challenges marketers face

• Mobile v/s Camera

• Hindustan Motors v/s Others
• Bajaj v/s Others
• LED v/s plasma v/s CRT
 Consumer Behaviour
Consumer behaviour 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.
Consumer Behaviour
• Emerged as a separate subject around 1960s.
• Interplay of forces that takes place during a consumption process,
within a consumer’s self and environment. 3 things:
• Cognition
• Affect
• Behaviour
• Continuous through pre-purchase and moves towards post-purchase.
• Entire ambit includes DMP.
Nature of CB
Subject deals with issues related to Cognition, Affect and Behaviour in
consumption against the backdrop of individual and environmental
determinants
Micro and Macro
Interdisciplinary
Dynamic
Involves process of exchange b/w buyers and sellers mutually beneficial
for both.
Disciplinary & Analytical field of study.
Science and Art
SCOPE:- What, Why, How much, Where, When, How often
Basic component
DM (Cognition and
Affect)

Actual purchase
activity (Behaviour)

Individual and
Environmental
determinants

Buying roles-
Initiator, Influencer,
Decider, User, Buyer
Application of CB

Analyse the environment

STP

Designing the Marketing Strategy

Designing Marketing Mix

Applicable also in Government, NPO, and Social Marketing.

Marketing Management Philosophies
• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Societal Marketing Concept
• Green Marketing
• Cause-Related Marketing
• De-Marketing
Production Concept
• Focus on Production
• View of consumers:
• They will buy as long as the product is available and affordable.
• Model T: I can sell any color as long as it’s black.
• Focus on production justified:
• Demand higher than supply
• Non-competitive product cost
Product Concept
• Focus on the product
• View of consumers:
• We have to have the best quality and the most features and they will
buy.
• Disadvantages:
• Consumers might not care about quality
• Consumers might not be willing to pay for the best quality
• Consumers might not be able to discern quality difference
• Consumers might prefer simplicity
Selling Concept
• Focus on selling
• View of consumers:
• We have to sell to them or else they won’t buy.
• Focus on selling justified:
• Introductory stages of product life cycle
• Unsought goods
Marketing Concept
• Focus on marketing
• Creating mutually rewarding exchange relationships
• Consumer needs and wants have priority
• View of consumers:
• They will buy if you fulfill their needs better than the competition.
Societal Marketing Concept

• Same as Marketing Concept plus an added concern for the

well-being of society
Buyer Roles

• Initiator
• Influencer
• Decider
• Buyer
• User
Types of Risk

• Functional or performance
• Financial
• Psychological
• Social
• Physiological
• Time
Cognitive Dissonance (CD)
• Cognitive Dissonance Occurs
• High Involvement Product
• Purchase activity is irrevocable
• Cannot return the Product
• Various alternatives have desirable features and all are
comparable.

• Customer’s tries to reduce Dissonance

• Rationalize, go to other satisfied customers, make friends buy
same product, etc.
Marketer should reduce CD

• More information
• Reassurance
• Warranty and Guarantee
• Follow up
Purchase, Post-purchase Processes and Marketing Strategy
• Encourage trial
• Encourage purchase and repeat purchase
• Increase brand loyalty
• Make efforts to increase customer satisfaction and decrease
dissatisfaction
• Create symbolic meanings for products
• Check if consumers make store-first or brand first decisions;
market accordingly
• Develop good relationship management strategies
 Marketing aimed at
creating strong, lasting
relationships with a core
group of customers by
Relationship
making them feel good
Marketing
about the company and by
giving them some kind of
personal connection with
the business.
 Portrayal of the Characteristics of
Relationship Marketing

The Firm provides The Customer provides

•Products/Services
•Repeat Purchase
•Individualized attention
•Increased Loyalty
•Continuous information Trust and
•Goodwill
•Price offers promises
•Positive word-of-mouth
•Customer services
•Lower costs for the firm
•Extras and perks, etc.
Gifting Behavior

Gifting is an act of symbolic communication, with explicit and implicit

meanings ranging from congratulations and love, to regret, obligation,
and dominance.
 Gifting Relationships
GIFTING
RELATIONSHIP DEFINITION EXAMPLE
Intergroup A group giving a gift to another A Diwali gift from one family
group to another family

Intercategory An individual giving a gift to a A group of friends chips in to

group or a group giving a gift to buy a new mother a baby gift
an individual

Intragroup A group giving a gift to itself or its A family buys an AC for itself
members as a Diwali gift

Interpersonal An individual giving a gift to Valentine’s Day chocolates

another individual presented by a boyfriend to a
girlfriend

Intrapersonal Self-gift A woman buys herself jewelry

to cheer herself up