Consumer Behavior
Unit 1
Introduction to CB and Consumer Decision Making Process
Did any of these ever happened to you?
1. You went to a mall to see what season’s sale offer in 2024 and
shopped nothing.
2. You went to a mall to kill some time before Fighter’ show and spent
1500 bucks.
3. You were scrolling Myntra on Saturday night and buy two white
sneakers.
4. You get pocket money on 1st and do not spend a penny till 5 but you
spend all your money by 6th 1AM.
5. You accompany your friend to Hypermarket, He shops for Rs300; And
you end up shopping of Rs1300.
6. You spend 2 hours filling your cart and you leave the cart at POS.
7. Sitting at Salon Chair satisfied with your hair cut/beard trim, but starts
hating it after first wash.
8. Stocked a crème/shampoo because your favourite influencer endorsed it
and you researched well on ingredients but did not use it third time.
9. Paid more than usual price to buy something.
10. You have created a wishlist of products, you will buy after 5-10 years.
If none of the situation mentioned in the previous slides has ever
happened to you
Voila!
You are a Smart Customer
Also, A hard nut to crack!!
Consumer Behavior
Consumer + Behavior
Who are Consumers?
Consumers are the one, who basically consumes the product.
Who basically uses the product.
End User
Ultimate User
Who are Customers?
Who basically buys the product.
Who basically pays for the product.
Who gets the customisation done to product.
Touch Point
Customers Vs Consumers
Customer Consumer
They PAY and BUY They USE
Usually occurs first Consumer comes later in picture
Customer can, himself/herself be Consumer Consumer
Decider, Buyer Suggests the need, Decider, Buyer, User
Concept of Consumer Behavior
Schiffman and Kanuk (1997) defined consumer behavior as
“the behaviour that consumers display in searching for
purchasing, using, evaluating and disposing of products,
services and ideas.”
According to Engel, Blackwell, and Mansard, ‘Consumer
Behavior is the actions and decision processes of people who
purchase goods and services for personal consumption.’
As per Walters and Paul, “Consumer Behavior is the process
whereby individuals decide What, When, Where, How And From
Whom to purchase goods and services”.
Consumer Behaviour entails 5Ws and 1h about 1 Product.
Significance of studying Consumer Behavior
1. Customer is the King.
2. Market consists of Different Segment with different tastes and
preferences.
3. Current Trend in Tastes and Preferences.
4. Reasons of change in Tastes and Preferences.
5. Enhance Customer Satisfaction.
6. To build Brand Equity.
7. For Pricing Policy.
8. To avoid Market Failure.
Origin Disciplines of CB
1. Psychology
2. Sociology
3. Anthropology
4. Ethnology
5. Economics
6. Marketing
Why do People become Customers
1. Domestic Use
2. Industrial Purpose
3. Gifting
Buying Roles
1. Initiator: the person who first suggests or thinks of the idea of
buying the particular product or service.
2. Influencer: a person whose views influence other members of the
buying center in making the final decision.
3. Decider: the person who ultimately determines any part of or the
entire buying decision-whether to buy, what to buy, how to buy, or
where to buy.
4. Buyer: the person who handles the paper work of the actual
purchase.
5. User: person(s) who consumes or uses the product or service.
6. Gatekeeper: person(s) who controls information or access.
Buyer and Institutional Customer
Do we know about these two??
Can we differentiate among two??
Individual Buying Vs Organisation Buying
1. Market Size
2. Buying Objective
3. Decision Making
4. Product and Market Research
5. Order Size
6. Price Elasticity Impact
7. Number of Customer
Digital Natives
Digital natives are people who have grown up under the
ubiquitous influence of the internet and other modern information
technologies. Digital natives think, learn, and understand the
world around them differently from people who have not been as
subjected to modern technology.
4 Different Types Of Consumer
Behavior
Complex Buying Behavior
Dissonance-reducing Buying Behavior
Habitual Buying Behavior
Variety Seeking Behavior
Complex Buying Behavior
When customers are actively involved in the purchasing decision
process and are aware of the significant differences between the various
brands. Before making purchasing decisions, consumers conduct
extensive research, gather information, and evaluate alternatives.
Dissonance-reducing buying behavior
This type of behavior happens when people make expensive or risky
purchases and then feel uncomfortable or confused about their decision.
Consumers may seek reassurance, information, or feedback from others
to reduce confusion.
Habitual buying behavior
This happens when customers make purchases with minimal decision-
making and marketing efforts or information search. Based on prior
experiences, they have developed brand and customer loyalty also
buying habits, and they may buy things out of habit, convenience, or
familiarity.
Variety-seeking buying behavior
This type of behavior happens when customers are not deeply involved
in the purchase decisions but seek variety or uniqueness in their
purchases. They may most often change brands or products to satisfy
their curiosity or need for variety.
Low Involvement Buying VS High Involvement Buying
Have you ever come across such statement
Thar is not a Car, It is an Emotion!
Also, Do you feel something
when they claim Mahindra’s Thar
is
100%
Made in India
Yes!! Because Human is Rational
Depending upon reasoning and conditioning,
Humans are able to understand and comprehend.
Consumer Decision Making Process
Need Search Evaluation of
Recognition Activation Alternatives
Final Purchase Post Purchase
Decision Behavior
Need Recognition
Identification of Need
When somebody realises the need.
When People start looking for the product.
When because of Ad Exposure, Social Pressure, Learning about the
product, change in occupation/hobby/lifestyle; someone feels to buy
something
Searching of Alternatives
When individuals start searching for the product, which may
fulfil/satisfy their needs.
People search for options of buying.
Evaluation of Alternatives
When people compare different products/brands on basis of some
criterion.
Evoked Set/Consideration Set consists of list of brands, which
customer considers while buying. Evaluation Set is the
parameters/parameter upon which consideration set is being
evaluated.
Final Purchase Decision
After evaluating the products, people decide upon final product/brand
and:
Variants
Payment Options
Delivery Options
Store Location
Service Availability
Post Purchase Behaviour
After using the product/service, it either leads to satisfaction or dis-
satisfaction.
Satisfied customer gradually become Loyal Customer because of
frequent purchase.
Dis-satisfied customer practices:
1. eWOM/ Negative WOM
2. Sales off
3. Disposes off the product
4. Brand Switch
Are we aware of these Terms??
• Fad Products
• Fast Forward Fashion
• Bumps in PLC
• Seasonal Sales
• Tastes and Preferences
Tastes and Preferences
Depending upon Conditioning, Learning, Attitude, Socio-economy
group, Education and Occupation people develop different tastes and
preferences.
Means End Theory
Introduced by Gutman (1982), Means end theory asserts that
personal values drive consumers' decisions about choosing a
product or service.
consumers see products as a means to important ends and try to
explain how the selection of a product or service facilitates the
achievement of desired end-states
Role of CB in Research
1. Market Segmentation
2. Study of Buying Trends
3. Study of Consumption Pattern
4. Study of Evaluation Criterion
5. Study of Ad-effectiveness
6. Study of Price Elasticity
Retail Therapy
The act of buying special things for yourself in order to feel better
when you are unhappy
Do we have idea about Chic Products??
Do we still remember Behavioural Segmentation??
Can we relate CB with STP???
VALS and CB
Actualisers
Believers
Achievers
Strivers
Experiencers
Strugglers
How do you select products while buying?
Why do you buy certain brands?
When we go to buy products, What do we look into, How do we
compare??
When stuck among two brands, what is the criterion to choose one??
Determinants of Decision Making
1. Economic
2. Psychological
3. Sociological
Economic Determinants
1. Personal Income
2. Family Size
3. Family Income
4. Social Status
5. Consumer Credit
Psychological Determinants
1. Motivation
2. Perception
3. Learning
4. Attitude
5. Personality
Sociological Determinants
1. Family
2. Reference Group
3. Opinion Leader
4. Social Class
Why do you buy certain brands?
How do you select products while buying?
Why do you buy certain brands?
When we go to buy products, What do we look into, How do we
compare??
When stuck among two brands, what is the criterion to choose one??
Disjunctive Decision Rule
Disjunctive Decision Rule is a non-compensatory approach to
decision-making for consumers.
Customers considers selected product attributes that are
important to the consumer.
Conjunctive Decision Rule
When using the conjunctive decision rule, consumers will seek
a combination of select product attributes which all must meet a
minimum score
Means End Decision Making
The means-end approach is based on a theory that product and
service attributes are associated with laddering consequences, or
product benefits and risks, and even the personal values the product
can help consumers fulfill.
