MODULE I: INTRODUCTION

Introduction to Consumer Behaviour (CB): Nature and

Importance of CB, application of CB in Marketing, Consumer
Decision Making Process: Problem recognition – Information
Search Process and Evaluation – Purchasing process – Post
Purchase Behaviour.

INTRODUCTION:-
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.
Marketers expect that by understanding what causes the
consumers to buy particular goods and services, they will be
able to determine—which products are needed in the
marketplace, which are obsolete, and how best to present
the goods to the consumers.
The study of consumer behaviour formally investigates
individual qualities such as demographics, personality
lifestyles, and behavioural variables (such as usage rates,
usage occasion, loyalty, brand advocacy, and willingness to
provide referrals), in an attempt to understand people's
wants and consumption. Also investigated are the influences
on the consumer, from groups such as family, friends, sports,
and reference groups, to society in general, including brand-
influencers and opinion leaders.
 Consumers are those individuals who purchase
commodities for deriving utilities and using them to satisfy
their needs.

DEFINITION:-
American Marketing Association, "the dynamic
interaction of affect and cognition, behaviour, and
environmental events by which human beings conduct the
exchange aspects of their lives."

Kotler & Armstrong, “The buying behaviour of final

consumers, individuals and households who buys goods and
services for personal consumption.”

Engel, Blackwell & Mansard “Consumer Behaviour is the

actions and decision processes of people who purchase goods
and services for personal consumption”.

Louden and Bitta, ‘Consumer BUnehaviour is the

decision process and physical activity, which individuals
engage in when evaluating, acquiring, using or disposing of
goods and services’.

NATURE OF CB:-
1. Influenced by various factors:
The various factors that influence the consumer
behaviour are as follows:
a. Marketing factors such as product design, price,
promotion, packaging, positioning and distribution.
 b. Personal factors such as age, gender, education and
income level.
c. Psychological factors such as buying motives,
perception of the product and attitudes towards the
product.
d. Situational factors such as physical surroundings at
the time of purchase, social surroundings and time
factor.
e. Social factors such as social status, reference groups
and family.
f. Cultural factors, such as religion, social class—caste
and sub-castes.

2. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change
over a period of time depending on the nature of products.
For example, kids prefer colourful and fancy footwear, but as
they grow up as teenagers and young adults, they prefer
trendy footwear, and as middle-aged and senior citizens they
prefer more sober footwear. The change in buying behaviour
may take place due to several other factors such as increase
in income level, education level and marketing factors.

3. Varies from consumer to consumer:

All consumers do not behave in the same manner.
Different consumers behave differently. The differences in
consumer behaviour are due to individual factors such as the
nature of the consumers, lifestyle and culture. For example,
some consumers are technoholics. They go on a shopping and
spend beyond their means.
They borrow money from friends, relatives, banks, and
at times even adopt unethical means to spend on shopping of
advance technologies. But there are other consumers who,
despite having surplus money, do not go even for the regular
purchases and avoid use and purchase of advance
technologies.

4. Varies from region to region and country to county:

The consumer behaviour varies across states, regions
and countries. For example, the behaviour of the urban
consumers is different from that of the rural consumers. A
good number of rural consumers are conservative in their
buying behaviours.
The rich rural consumers may think twice to spend on
luxuries despite having sufficient funds, whereas the urban
consumers may even take bank loans to buy luxury items
such as cars and household appliances. The consumer
behaviour may also varies across the states, regions and
countries. It may differ depending on the upbringing,
lifestyles and level of development.

5. Information on consumer behaviour is important to the

marketers:
Marketers need to have a good knowledge of the
consumer behaviour. They need to study the various factors
that influence the consumer behaviour of their target
customers.
 The knowledge of consumer behaviour enables them to
take appropriate marketing decisions in respect of the
following factors:
a. Product design/model
b. Pricing of the product
c. Promotion of the product
d. Packaging
e. Positioning
f. Place of distribution

6. Leads to purchase decision:

A positive consumer behaviour leads to a purchase
decision. A consumer may take the decision of buying a
product on the basis of different buying motives. The
purchase decision leads to higher demand, and the sales of
the marketers increase. Therefore, marketers need to
influence consumer behaviour to increase their purchases.

7. Varies from product to product:

Consumer behaviour is different for different products.
There are some consumers who may buy more quantity of
certain items and very low or no quantity of other items. For
example, teenagers may spend heavily on products such as
cell phones and branded wears for snob appeal, but may not
spend on general and academic reading. A middle- aged
person may spend less on clothing, but may invest money in
savings, insurance schemes, pension schemes, and so on.

8. Improves standard of living:

 The buying behaviour of the consumers may lead to
higher standard of living. The more a person buys the goods
and services, the higher is the standard of living. But if a
person spends less on goods and services, despite having a
good income, they deprives themselves of higher standard of
living.

9. Reflects status:
The consumer behaviour is not only influenced by the
status of a consumer, but it also reflects it. The consumers
who own luxury cars, watches and other items are considered
belonging to a higher status. The luxury items also give a
sense of pride to the owners.

IMPORTANCE OF CB:-

Understanding consumer behaviour is essential for a

company to find success for its current products as well as
new product launches. Every consumer has a different
thought process and attitude towards buying a particular
product. If a company fails to understand the reaction of a
consumer towards a product, there are high chances of
product failure.
Due to the changing fashion, technology, trends, living
style, disposable income, and similar other factors, consumer
behaviour also changes. A marketer has to understand the
factors that are changing so that the marketing efforts can be
aligned accordingly.
1. Consumer Differentiation:
In marketing, consumer differentiation is a way
to distinguish a consumer from several other consumers. This
helps to make a target group of consumers with the same or
similar behaviour.
Though you have a targeted customer demographic in
your business, you can still have variations between
individual customers. Each group of consumers are different
and their needs and wants differ from other groups.  When a
marketer is knowledgeable about differentiation of each
group of consumers, he can design separate marketing
programme.
Consumer differentiation will help to tailor your
strategies to the needs of varying customer groups. When
consumer differentiation is done, you can expand the width
and breadth of your services. You will be able to effectively
serve a wider group of people.

2. Retention of Consumers:
“Consumer behaviour is of most importance to
marketers in business studies as the main aim is to create and
retain customers”. 
Consumer behaviour is not just important to attract new
customers, but it is very important to retain existing
customers as well. When a customer is happy about a
particular product, he/she will repeat the
purchase. Therefore, marketing the product should be done
in such a way that it will convince customers to buy the
product again and again.
 Thus, it is very evident that creating customer and
retaining them is very important. This can be done only by
understanding and paying attention towards the consumer’s
buying behaviour.

3. Design Relevant Marketing Programme:

Understanding consumer behaviour allows you to create
effective marketing campaigns. Each campaign can speak
specifically to the separate group of consumers based on
their behaviour.
For example, while targeting kids market, you may have
to look out for venues such as TV ads, school programme and
blogs targeting young mothers. You will need to take
different messaging approaches for different consumer
groups. 
A study of consumer behaviour enables the marketers to
understand what motives consumers to make purchases.
Furthermore, the same motive can be utilized in advertising
media to stir the desire to make a purchase.
Moreover, marketers should take decisions regarding the
brand logo, coupons, packing and gifts on the basis of
consumer behaviour. 

4. Predicting Market Trend:

Consumer behaviour analysis will be the first to indicate
a shift in market trend. For example, the recent trend of
consumers is towards environment friendliness and
healthy food.  This changing market trend was observed by
many brands including McDonalds.  Based on the consumer
behaviour, McDonald’s brought healthy food options. 
By conducting consumer behaviour study, a company
saves a lot of resources that might otherwise be allocated to
produce a product that will not be sold in the market. For
example, in summer a brand will not waste its resources for
producing a product that will not sell in summer. Based on
consumer behaviour the company decides on production
strategy which will save on warehouse costs and marketing
costs.

5. Competition:
One of the most important reasons to study consumer
behaviour is to find out answers to some of the questions:
 Is the customer buying from your competitor?

 Why is a consumer buying from your competitor?

 What features attracts a consumer to your competitor

products?
 What gaps are your consumers identifying in your

products when compared to your competitors? 

Studying consumer behaviour facilitates in
understanding and facing competition. Based on
consumers’ expectations, your brand can offer
competitive advantages. 

6. Innovate New Products:

We all know some of the big names such as New Coke,
Crystal Pepsi, Colgate Kitchen Entrées, Samsung Galaxy
Note7, Watermelon Oreo, Google Glass, HP Touch Pad,
Amazon Fire Phone, Nike Fuel Brand, Trump University,
Burger King’s Satisfries, Apple Watch? Yes, they all failed!!
The sad truth is that most new products and new ideas
end up in failure. There is an estimate of new product
failures – they range  from 33% to 90% based on the kind of
industry.
Companies consistently strive hard to improve
the success rate of their new products or new ideas. One of
the most important ways is to conduct sound and thoughtful
consumer behaviour study. 
With the help of consumer behaviour
analysis, Nike realized that most of its target audience is not
professional athletes, but many of them were striving to be
more like them. So at the 2012 Olympics in London, Nike
introduced a campaign to encourage athletics called  ‘Find
Your Greatness’. It aimed to promote the aspirations of being
an athlete, not just with high-performing athletes, but
wanted to include all people regardless of their physical
capability. The campaign was well planned and was data-
driven, of course, carefully analyzed before taking any
action. This message inspired many consumers and had
enormous appeal for target consumers.  

7. Stay Relevant in the Market

When the world is changing as rapidly as it is happening
today, the biggest challenge we all face is staying relevant to
our target market. And do you know what is the main reason
behind the rapid changes? It is the ever-changing behaviour
of our customers.
 Today’s consumers have greater choices and
opportunities, which means they can easily switch to a
company that offers better products and services.  
“The pre-eminent skill required to shift ahead in the
twenty-first century is the ability to see and seize.” -Adamson
and Steckel, authors of Shift Ahead.
Losing relevance will only cost the company its market
share. Haven’t we seen Sony Walkman failing to stay relevant
in the digital music era, and the taxi industry doom with no
preparedness to battle the UBER uprise!!

8. Improve Customer Service

Consumers require different levels of customer service,
and understanding the differences within your customer base
will help you provide the most appropriate service for
individual needs.
For example, if you own an electronics store, high school
or college students who buy a new laptop are more likely to
understand the features they’re looking for than a person
buying his first computer. With the first demographic, your
service goal will be to provide information about the latest
trends in technology, while with the second demographic,
you’ll need to spend more time educating the customer,
finding out what his specific needs are, and even teaching
him how to use the features of his new electronic device.

TYPES OF CONSUMER BUYING BEHAVIOUR:-

Types of consumer buying behaviour are determined by:

(1) Level of involvement in purchase decision.

Importance and intensity of interest of consumer in a product
in a particular situation.
(2) Buyers level of involvement determines why he/she
is motivated to seek information about a certain products
and brands but virtually ignores others.

High involvement purchases—Honda Motorbike, highly

priced goods, products visible to others, and the higher the
risk the higher the involvement.

Types of risk are as follows:

(i) Personal risk;
(ii) Social risk; and
(iii) Economic risk.

The four types of consumer buying behaviour are:

(i) Routine Response/Programmed Behaviour – Buying
low involvement frequently purchased low cost items; need
very little search and decision effort; purchased almost
automatically. Examples include soft drinks, snack foods, milk
etc.
(ii) Limited Decision Making – Buying product
occasionally. When you need to obtain information about
unfamiliar brand in a familiar product category, perhaps.
Requires a moderate amount of time for information
gathering. Examples include Clothes—know product class but
not the brand.
(iii) Extensive Decision Making/Complex – High
involvement, unfamiliar, expensive and/or infrequently
bought products. High degree of
economic/performance/psychological risk. Examples include
cars, homes, computers, education.
Spend a lot of time seeking information and deciding.
Information from the companies MM; friends and relatives,
store personnel etc. Go through all six stages of the buying
process.
(iv) Impulse Buying, No Conscious Planning – The
purchase of the same product does not always elicit the same
Buying Behaviour. Product can shift from one category to the
next.

For Example:
Going out for dinner for one person may be extensive
decision making (for someone that does not go out often at
all), but limited decision making for someone else. The reason
for the dinner, whether it is an anniversary celebration, or a
meal with a couple of friends will also determine the extent
of the decision making.

FACTORS INFLUENCING CONSUMER BEHAVIOUR:-

Consumer behaviour is affected by a number of factors.
They can be classified into cultural, social, personal, and
psychological factors.
I. CULTURAL FACTORS:
1. Culture:
Cultural factors have a deep influence on buyer
behaviour. Culture is the basic determinant of a person’s
wants. It refers to a set of learned beliefs, values, attitudes,
morals, customs, habits and forms of behaviour that are
shared by a society. These are transmitted from generation to
generation.
Culture is always alive, moving, and ever-changing.
Culture shapes the pattern of consumption and pattern of
decision-making. Food habits, religious practices, the way we
dress are all influenced by culture.
Examples:
(a) Toothpowder usage is in line with traditional mouth-
washing habits. The person applies toothpowder to his index
finger and rubs it on the teeth. Hence, the reason for the
popularity of the toothpowder.
(b) Many companies have come out with religious
calendars with illustrations of their products and such
calendars are preserved for a long time.

2. Sub-Culture:
Each culture consists of smaller sub-cultures that
provide more specific identification and socialisation for its
members.
There are four types of subcultures:
(a) Nationality groups such as Chinese, Irish, Polish, etc.,
(b) Racial groups such as Blacks, Whites, etc.,
 (c) Geographical groups such as North Indian, South
Indian, etc.,
(d) Religious groups such as Christians, Muslims, Hindus,
etc. – While Brahmins prefer to go for higher education
and take up employment, Vaishyas are engaged in
trading activities. Caste decides a person’s status and
power in society. During elections, the candidates
depend upon the people belonging to the same caste.

3. Social Classes:
These are divisions in the society which are hierarchically
ordered and whose members share similar values, interests,
and behaviour. There are three distinct social classes- upper,
middle and lower classes. Lower classes show limited sense
of choice making. Each class differs in their patronisation, the
reading habits, clothing habits, etc. Upper class consumers
want products and brands that depict their social status.
Middle-class consumers shop carefully, read advertisements
and compare prices before they buy.
For Example, a family from a higher class may wish to
eat in a five-star hotel. A middle- class family may opt for a
cost-effective restaurant.

II. SOCIAL FACTORS:

1. Reference Groups:
Reference groups are the social, economic, or
professional groups that have a direct or indirect influence on
the person’s attitudes or behaviours. Consumers accept
information provided by their peer groups on the quality,
performances, style, etc. These groups influence the person’s
attitudes; expose them to new behaviours and lifestyles;
create pressures on the individual.
A family, a circle of friends, a local club, an athletic team
and college living groups are examples of small reference
groups. When a member is satisfied with a product, he
becomes the salesman of the product. He influences other
members of the group. The consumer develops positive
opinion towards a product or service based on admiration
(Cricket players) and aspiration (Film stars) or empathy. The
consumers think that, if he uses it, it must be good, if I use it,
I will be like him. Example- Many marketers have used film
stars to promote consumer goods.

2. Family:
Family constitutes the most influential group on one’s
attitudes. Personal values, attitudes, and buying habits have
been shaped by family influences. The members of the family
play different role such as influencer, decider, purchaser, and
user in the buying process.
A person acquires an orientation towards religion,
politics, and economics and a sense of personal ambition,
does not interact with the parents, still their influence in the
unconscious behaviour can be significant. A person’s
behaviour is also influenced by his/her spouse and children.
With a great exposure to more information through
various media of communication, teenagers are occupying a
major role in decision-making. In Indian urban families, wife is
the purchasing agent. In case of expensive products, there is
a joint decision-making. For example,
Husband dominance- Life insurance, automobiles,
television.
Wife dominance- Washing machines, carpenting,
kitchenware
Equal- Housing, vacation, outside entertainment.
Example- Johnson & Johnson products are advertised to
mothers and not to small children who actually are the
consumers.
The three-generation family (husband, wife, at least one
child and at least one grand parent) is very common in rural
areas-The head of the family plays a major role in buying
decisions. Example- Purchase of Television, Insurance,
Ornaments, etc. Even marriages are settled by elders.

3. Roles and Status:

Roles and Status are factors which also influence
decision making. Roles are the activities of the person in a
group. A woman plays the role of wife, mother and sister in a
family. She plays the role of an employee in an organisation.
She may also play the role of a secretary of an association.
Each role carries a status. People will choose products
that will communicate their status to the society. Example-
An executive working in a multinational bank may prefer
branded shirts/trousers, expensive watches, perfumes and
drive a car to reach office.

III. PERSONAL FACTORS:

 A buyer’s decisions are also influenced by personal
characteristics, notably the buyer’s age and life-cycle stage,
occupation, economic circumstances, lifestyle, and
personality and self- concept.

1. Lifecycle:
People buy different goods and services over their
lifetime. The life-cycle of a person begins with child birth,
shifts to dependent infancy, adolescence, teenage,
adulthood, middle-age, old age and then ends with death.
Under each stage people’s buying behaviour is different.
Under the first three stages, decisions are not made by the
consumer.
They are totally dependent on others. In the next stage,
buyers not only make their decisions but also influence
others’ buying decisions. In the later stages of life-cycle, they
are back to the early stages. Example- With exposure to TV,
school-going children have started influencing buying
decisions with regard to biscuits, chocolates, soft drinks, toys
and marketers are targeting this segment.

2. Occupation:
A person’s behaviour depends upon his occupation. A
company’s Managing Director will prefer expensive suits, air
travel, separate cottage, etc. A worker would prefer
economic dresses, bus travel, etc. The occupation of a person
decides his ability to buy. Hence, his need-satisfaction
depends on his occupation, which provides him the means.
3. Economic Circumstances:
Occupation gives rise to the economic circumstances. A
person may have high desire to buy so many things. All his
needs do not become wants. This is the result of his
purchasing power. People’s economic circumstances refer to
their spendable income, savings, assets, borrowing power
and attitude towards spending versus saving.
Example- the Indian middle- class has grown in
prosperity and consumption of items such as kitchen
appliances, TV, refrigerators, washing machines, ready-made
garments, jewellery is growing.

4. Lifestyle:
Lifestyle may be defined as the pattern or way of living
of a person which will be indicated through the person’s
activities, interests, and opinions. A person may reside in an
HIC flat. He may have costly furniture. He shall buy his
clothing’s only from Raymond’s. He may have his dinner only
in five-star hotels. His hobby may be playing billiards. With
the above activities, we can understand the lifestyle of a
person. Hence, he will choose according to his lifestyle.

5. Personality:
Personality is defined as the person’s distinguishing
psychological characteristics that lead to relatively consistent
and enduring responses to his or her environment.
Personality is described in terms of such traits as self-
confidence, dominance, autonomy, deference, sociability,
defensiveness and adaptability. A person to maintain his
personality will decide his purchase accordingly. He buys
products and services that reflect his image.
Example- Rural youth may buy tea and namkeen and
urban youth buy popcorn and soft drinks.
Personality is a complex psychological concept. Its
primary features are self-concept, roles and levels of
consciousness. The self-concept refers to how a person sees
himself and how he believes others to see him at a particular
time. Self-concept has three parts- (1) the idealised self —
what you would like to be? (2) The looking glass self — how
you think others see you? and (3) Self-self — your own
concept of what you are like.
Each individual plays many roles — loving father or
mother, affectionate wife, friendly co-worker, efficient
executive, wise home-manager, and so on. The buying
behaviour is influenced by the particular role upon which a
buyer is concentrating at a given time. Personality traits such
as dominance, adventure someness, sociability, friendliness,
responsibility, aggressiveness, dependence, etc., can indicate
how people behave.

IV. PSYCHOLOGICAL FACTORS:

1. Motivation:
Motivation is the driving force which makes the person
act. Motivation is the drive to act, to move, to obtain a goal
or an objective. A human being is motivated by needs. When
these needs are backed by purchasing power it becomes a
want. Buyer behaviour, hence, is stimulated by motivation.
2. Perception:
A motivated person is ready to act. How the motivated
person actually acts is influenced by his or her perception of
the situation. To perceive is to see, to hear, to touch, to smell,
and to sense something an event or relation and to organise,
interpret and find meaning in the experience.
Our senses perceive the colour, shape, sound, smell,
taste, etc., of this stimulus. Our behaviour is governed by
these physical perceptions. Perception has been obtained by
social psychologists as the ‘complex process’ by which people
select, organise and interpret sensory stimulation into a
meaningful and coherent picture of the world.
People can emerge with different perceptions of the
same object because of three perceptual processes- Selective
attention, selective distortion, and selective retention.
All persons are not alike. They see the world in their own
special ways. For instance, all the members of the family have
viewed a particular product advertisement in the television.
The members may interpret the same in different ways.
Example- Even to-day many consumers prefer to deal with
Nationalised Banks/LIC as they feel that private companies
may not reliable in the long run.

3) Learning:
Learning describes changes in an individual’s behaviour
arising from experience. Learning refers to changes in
behaviour brought about by practice or experience. Almost
everything one does or thinks is learned. Learning is the
process of acquiring knowledge about products, their
benefits and methods of usage and also disposal of product
after use. Example- Product demonstration is a very effective
method to convince the consumer. Products like paints,
pressure cookers, fertilisers are promoted through
demonstration.

4) Belief:
A belief is a descriptive thought that a person holds
about something. These beliefs may be based on knowledge,
opinion, or faith. They may or may not carry emotional
change. An attitude describes a person’s enduring favourable
or unfavourable cognitive evaluations, emotional feelings,
and action tendencies towards some object or idea.
In simple words, attitude is an emotionalised pre-
disposition or inclination to respond positively or negatively
in a consistent way towards similar objects. For example,
once a consumer has developed a brand loyalty, it is hard to
change his attitudes and beliefs towards the brand.
Attitudes are the result of experiences. Attitudes interact
with perception, thinking, feeling, and reasoning. Example-
Many health conscious people believe that Cola drinks are
harmful and they prefer lassi, lime juice, cocoanut water or
even mineral water.
Thus, we find that there are many forces acting on
consumer behaviour. A person’s purchase choice is the result
of the complex forces of cultural, social, personal, and
psychological factors.
APPLICATION OF CB IN MARKETING:-

Consumer behaviour principles are applied in many areas of

marketing as discussed below:

Analysing market opportunity: 

Consumer behaviour study helps in identifying the
unfulfilled needs and wants of consumers. This requires
examining the trends and conditions operating in the
marketplace, consumers' lifestyles, income levels and
emerging influences. This may reveal unsatisfied needs and
wants. The trend towards increasing number of dual income
households and greater emphasis on convenience and leisure
have led to emerging needs for household gadgets such as
washing machine, mixer grinder, vacuum cleaner and
childcare centres etc. Mosquito repellents have been
marketed in response to a genuine and unfulfilled consumer
need.

Selecting target market:

A review of market opportunities often helps in
identifying distinct consumer segments with very distinct and
unique wants and need. Identifying these groups, learning
how they behave and how they make purchase decisions
enables the marketer to design and market products or
services particularly suited to their wants and needs. For
example, consumer studies revealed that many existing and
potential shampoo users did not want to buy shampoo packs
priced at Rs.60 or more and would rather prefer a low priced
sachet containing enough quantity for one or two washes.
The finding led companies to introduce the shampoo sachet
which became a good seller.

Marketing-mix decisions:
Once unsatisfied needs and wants are identified, the
marketer has to determine the right mix of product, price,
distribution and promotion. Here too, consumer behaviour
study is very helpful in finding answers to many perplexing
questions.
Product: The marketer designs the product or service
that would satisfy unfulfilled needs or wants. Further
decisions regarding the product concern to size, shape and
features. The marketer has also to decide about packaging
important aspects of service, warranties and accessories etc.
Nestle first introduced Maggie noodles in masala and
capsicum flavours. Subsequently, keeping in view the
consumer preferences in some regions, the company
introduced garlic, Shabhar and other flavours.
Price: The second important component of marketing
mix is price. Marketers must decide what price to charge for
the product or service. These decisions will influence the flow
of revenue to the company. Should the marketer consumer
price sensitive and would a lower price stimulate sales?
Should there be any price discounts? Do consumers perceive
lower price as being indicative of poor quality? To answer
such questions, the marketer must understand the way the
company's product is perceived by consumers, the
importance of price as a purchase decision variable and how
different price levels would affect sales. It is only through
consumer behaviour study in actual buying situations that the
marketer can hope to find answers to these important issues.
Distribution: The next decision relates to the distribution
channel, that is, where and how to offer products and
services for sale. Should the products be sold through all the
retail outlets or only through selected ones? Should the
marketer use only the existing outlets, which also sell
competing brands, or should new exclusive outlets selling
only the marketer's brands be created? Is the location of
retail outlets important from consumers' point of view?
Should the company think of direct maketing?  The answer to
these question are furnished by consumer behaviour
research. 
Promotion: Promotion is concerned with marketing
communications to consumers, the more important methods
are advertising, personal selling, sales promotion, publicity
and direct marketing. The marketer has to decide which
method would be most suitable to effectively reach the
consumers. Should it be advertising alone or should it be
combined with sales promotion? The company has to know
the target consumers, their location, what media do they
have access to and what are their media preferences, etc. In
most cases of industrial products there is very little or no
advertising. Brochures containing technical specifications are
often posted to the clients and the salespeople make follow-
up visits. Consumer products get the maximum share of
advertising. Pharmaceutical industry exclusively use personal
selling for prescription drugs. Insurance companies use both
advertising and personal selling.

Use in Social and Non-profits Marketing:

Consumer behaviour studies are useful to design
marketing strategies by social, governmental and not-for-
profit organisations to make their programmes such as family
planning, awareness about AIDS, crime against women, safe
driving, environmental concerns and other more effective.
UNICEF (greeting cards), Red Cross and CRY etc. make use of
consumer behaviour understanding to sell their services and
products and also try to motivate people to support these
institutions.

BUYING MOTIVES OF CONSUMERS:-

Buying motive is the urge or motive to satisfy a desire or

need that makes people buy goods or services. Behind every
purchase there is a buying motive.
It refers to the thoughts, feelings, emotions and
instincts, which arouse in the buyers a desire to buy an
article. A buyer does not buy because s/he has been
persuaded by the salesman, but s/he buys for the aroused
desire in him or her. Motives should be distinguished from
instincts.
A motive is simply a reason for carrying out a particular
behaviour and not an automatic response to a stimulus,
whereas instincts are pre-programmed responses, which are
inborn in the individual and involuntary. Thus hunger is an
instinct whereas desire to purchase pizza is a buying motive.
According to Prof. D. J. Duncan, “Buying Motives are those
influences or considerations which provide the impulse to
buy, induce action and determine choice in the purchase of
goods and services.” Buying motives are can be divided by
the following way:

PRODUCT BUYING MOTIVES:

Product buying motives refer to those influences and
reasons, which prompt (i.e. induce) a buyer to choose a
particular product in preference to other products. They
include the physical attraction of the product (i.e. the design,
shape, dimension, size, colour, package, performance, price
etc. of the product) or the psychological attraction of the
product (i.e. the enhancement of the social prestige or status
of the purchaser through its possession), desire to remove or
reduce the danger or damage to life or body of the possessor,
etc. In short, they refer to all those characteristics of a
product, which induce a buyer to buy it in preference to other
products.
Product buying motives may be sub-divided into two
groups, viz., (1) emotional product buying motives and (2)
rational product buying motives.
A. Promotional Product Buying Motives:
When a buyer decides to purchase a product without
thinking over the matter logically and carefully (i.e., without
much reasoning), she is said to have been influenced by
emotional product buying motives. Emotional product buying
motives include the following:
1. Pride or Prestige: Pride is the most common and
strongest emotional buying motive. Many buyers are proud
of possessing some product (i.e., they feel that the possession
of the product increases their social prestige or status). In
fact, many products are sold by the sellers by appealing to
the pride prestige of the buyers. For instance, diamond
merchants sell their products by suggesting to the buyers that
the possession of diamonds increases their prestige or social
status.
2. Emulation or Imitation: Emulation, i.e., the desire to
imitate others, is one of the important emotional buying
motives. For instance, a housewife may like to have a silk
saree for the simple reason that all the neighbouring
housewives have silk sarees.
3. Affection: Affection or love for others is one of the
stronger emotional buying motives influencing the purchasing
decisions of the buyers. Many goods are purchased by the
buyers because of their affection or love for others. For
instance, a husband may buy a costly silk saree for his wife or
a father buy a costly watch for his son or daughter out of his
affection and love.
4. Comfort or desire for comfort: Desire for comfort (i.e.,
comfortable living) is one of the important emotional buying
motives. In fact, many products are bought comfort. For
instance, fans, refrigerators, washing machines, cushion beds,
etc. are bought by people because of their desire for comfort.
5. Sex appeal or sexual attractions: Sex appeal is one of
the important emotional buying motives of the buyers.
Buyers buy and use certain things, as they want to be
attractive to the members of the opposite sex. Men and
women buy cosmetics, costly dresses, etc., because of this
emotional motive, i.e., sex appeal.
6. Ambition: Ambition is one of the emotional buying
motives. Ambition refers to the desire to achieve a definite
goal. It is because of this buying motive that, sometimes,
customers buy certain things. For instance, it is the ambition
that makes many people, who do not have the facilities to
pursue their college education through regular colleges,
pursue their education through correspondence courses.
7. Desire for distinctiveness or individuality: Desire for
distinctiveness, i.e., desire to be distinct from others, is one of
the important emotional buying motives. Sometimes,
customers buy certain things, because they want to be in
possession of things, which are not possessed by others.
Purchasing and wearing a particular type of dress by some
people is because of their desire for distinctiveness or
individuality.
8. Desire for recreation or pleasure: Desire for recreation
or pleasure is also one of the emotional buying motives. For
instance, radios, musical instruments, etc. are bought by
people because of their desire for recreation or pleasure.
 9. Hunger and thirst: Hunger and thirst are also one of
the important emotional buying motives. Foodstuffs, drinks,
etc. are bought by the people because of this motive.
10. Habit: Habit is one of the emotional considerations
influencing the purchasing decision of the customers. Many
customers buy a particular thing because of habit, (i.e.
because they are used to the consumption of the product).
For instance, many people purchase cigarettes, liquors, etc.
because of sheer habit.

B. Rational Product Buying Motives:

When a buyer decides to buy a certain thing after careful
consideration (i.e. after thinking over the matter consciously
and logically), s/he is said to have been influenced by rational
product buying motives. Rational product buying motives
include the following:
1. Safety or Security: Desire for safety or security is an
important rational buying motive influencing many
purchases. For instance, iron safes or safety lockers are
bought by the people because they want to safeguard their
cash, jewelries etc., against theft. Similarly, vitamin tablets,
tonics, medicines, etc., are bought by the people because of
this motive, i.e. they want to safeguard their health and
protect themselves against diseases.
2. Economy: Economy, i.e. saving in operating costs, is
one of the important rational buying motives. For instance,
Hero Honda bikes are preferred by the people because of the
economy or saving in the operating cost, i.e. petrol costs.
 3. Relatively low price: Relatively low price is one of the
rational buying motives. Most of the buyers compare the
prices of competing products and buy things, which are
relatively cheaper.
4. Suitability: Suitability of the products for the needs is
one of the rational buying motives. Intelligent buyers
consider the suitability of the products before buying them.
For instance, a buyer, who has a small dining room, naturally,
goes in for a small dining table that is suitable, i.e. that fits in
well in the small dining room.
5. Utility or versatility: Versatility or the utility of a
product refers to that quality of the product, which makes it
suitable for a variety of uses. Utility of the product is one of
the important rational buying motives. People, often,
purchase things that have utility, i.e. that can be put to varied
uses.
6. Durability of the product: Durability of the product is
one of the most important rational buying motives. Many
products are bought by the people only on the basis of their
durability. For instance, buyers of wooden furniture go in for
teak or rosewood table, though they are costlier, as they are
more durable than ordinary wooden furniture.
7. Convenience of the product: The convenience of the
product (i.e. the convenience the product offers to the
buyers) is one of the important rational product buying
motives. Many products are bought by the people because
they are more convenient to them. For instance, automatic
watches, gas stoves, etc., are bought by the people because
of the convenience provided by them.
PATRONAGE BUYING MOTIVES:
Patronage buying motives refer to those considerations
or reasons, which prompt a buyer to buy the product wanted
by him from a particular shop in preference to other shops. In
other words, they are those considerations or reasons, which
make a buyer, patronise a particular shop in preference to
other shops while buying a product.
Patronage buying motives also may be sub-divided into
two groups viz. a) Emotional patronage buying motives and b)
Rational patronage buying motives.

A. Emotional Patronage Buying Motives:

When a buyer patronises a shop (i.e. purchases the
things required by him from a particular shop) without
applying his mind or without reasoning, he is said to have
been influenced by emotional patronage buying motives.
Emotional patronage buying motives include the following:
1. Appearance of the shop: Appearance of the shop is
one of the important emotional patronage buying motives.
Some people make their purchases from a particular shop
because of good or attractive appearance of the shop,
2. Display of goods in the shop: Attractive display of
goods in the shop also makes the buyers patronise a
particular shop.
3. Recommendation of others: Recommendation of
others also constitutes one of the important emotional
patronage buying motives. Some people purchase their
requirements from a particular shop because that shop has
been recommended to them by others, i.e., by their friends
and relatives.
4. Imitation: Imitation also is one of the emotional
patronage buying motives influencing the purchases of
buyers. Some people make their purchases from a particular
shop just because other people make their purchases from
that shop.
5. Prestige: Prestige is one of the emotional patronage
buying motives of the buyers. For instance, some people
consider it a prestige to take coffee from a five-star hotel.
6. Habit: Habit is also one of the important emotional
patronage buying motives. Some people make their
purchases from a particular shop for the simple reason that
they have been habitually making their purchases from that
shop.

B. Rational Patronage Buying Motives:

When a buyer patronises a shop after careful
consideration (i.e. after much logical reasoning and careful
thinking) he is said to have been influenced by rational
patronage buying motives. Rational patronage buying
motives include the following:
1. Convenience: Convenient location proximity of a shop
is one of the considerations influencing the purchases of
many buyers from a particular shop. Many buyers, usually,
buy their requirements from a near-by shop, as it is
convenient to them to make their purchases. Similarly,
convenient working hours of the shop also influence the
purchases of good many buyers. For instance, if a shop works
for a longer period of time every day and even on Sundays, it
will be very convenient to the buyers. As such, many buyers
may make their purchases from such a shop.
2. Low price charged by the shop: Price charged by the
shop also influences the buyers to patronise a particular
shop. If the price charged by a shop for a particular product is
relatively cheaper, naturally, many people will make their
purchases from that shop.
3. Credit facilities offered: The credit facilities offered by
a store also influence the buying of some people from a
particular shop. People who do not have enough money to
make cash purchases every time prefer to make their
purchases from a shop which offers credit facilities.
4. Services offered: The various sales and after-sale
services, such as acceptance of orders through phone, home
delivery of goods, repair service, etc., offered by a shop also
induce the buyers to buy their requirements from that shop.
Rational buyers are, often, influenced by the various services
or facilities offered by the shop.
5. Efficiency of salesmen: The efficiency of the salesmen
employed by a shop also influences the people in patronising
a particular shop. If the employees are efficient and are
capable of helping the buyers in making their purchases,
people naturally would flock to such a shop.
6. Wide choice: Wide choice of goods offered by a shop
is one of the rational considerations making the buyers
patronise a particular shop. People generally prefer to make
their purchases from a shop, which offers wide choice (i.e.
wide varieties of goods).
 7. Treatment: The treatment meted out by a shop to the
customers is one of the rational considerations influencing
the buyers to patronise a particular shop. Usually, people
would like to purchase their requirements from a shop where
they get courteous treatment.
8. Reputation of the shop: Reputation of the shop for
honest dealings is also one of the rational patronage buying
motives. Usually, people would like to make their purchases
from a store having reputation for fair dealings.

CONSUMER DECISION MAKING PROCESS / CONSUMER

BUYING BEHAVIOUR:-

5 STEPS PROCESS OF CDM:-

1. Problem recognition: Recognizes the need for a service or
product
2. Information search: Gathers information
3. Alternatives evaluation: Weighs choices against comparable
alternatives
4. Purchase decision: Makes actual purchase
5. Post-Purchase evaluation: Reflects on the purchase they
made

The consumer decision-making process can seem

mysterious, but all consumers go through basic steps when
making a purchase to determine what products and services
will best fit their needs. 
Think about your own thought process when buying
something––especially when it’s something big, like a car.
You consider what you need, research, and compare your
options before taking the plunge. Afterwards, you often
wonder if you made the right call. 
If you work in sales or marketing, make more of an
impact by putting yourself in the customer’s shoes and
reviewing the steps in the consumer decision-making process.

Generally speaking, the consumer decision-making

process involves five basic steps. Start to understand the
unique decision process of your customers with this decision
flowchart template.

1. Problem Recognition:
The first step of the consumer decision-making process
is recognizing the need for a service or product. Need
recognition, whether prompted internally or externally,
results in the same response: a want. Once consumers
recognize a want, they need to gather information to
understand how they can fulfil that want, which leads to step
2.
But how can you influence consumers at this stage?
Since internal stimulus comes from within and includes basic
impulses like hunger or a change in lifestyle, focus your sales
and marketing efforts on external stimulus. 
Develop a comprehensive brand campaign to build
brand awareness and recognition––you want consumers to
know you and trust you. Most importantly, you want them to
feel like they have a problem only you can solve.
Example: Winter is coming. This particular customer has
several light jackets, but she’ll need a heavy-duty winter coat
if she’s going to survive the snow and lower temperatures.

2. Information Search
When researching their options, consumers again rely on
internal and external factors, as well as past interactions with
a product or brand, both positive and negative. In the
information stage, they may browse through options at a
physical location or consult online resources, such as Google
or customer reviews.
Your job as a brand is to give the potential customer
access to the information they want, with the hopes that they
decide to purchase your product or service. Create a funnel
and plan out the types of content that people will need.
Present yourself as a trustworthy source of knowledge and
information. 
Another important strategy is word of mouth––since
consumers trust each other more than they do businesses,
make sure to include consumer-generated content, like
customer reviews or video testimonials, on your website.
Example: The customer searches “women’s winter coats”
on Google to see what options are out there. When she sees
someone with a cute coat, she asks them where they bought
it and what they think of that brand.

3. Alternatives Evaluation
At this point in the consumer decision-making process,
prospective buyers have developed criteria for what they
want in a product. Now they weigh their prospective choices
against comparable alternatives.
Alternatives may present themselves in the form of
lower prices, additional product benefits, product availability,
or something as personal as color or style options. Your
marketing material should be geared towards convincing
consumers that your product is superior to other alternatives.
Be ready to overcome any objections––e.g., in sales calls,
know your competitors so you can answer questions and
compare benefits.
Example: The customer compares a few brands that she
likes. She knows that she wants a brightly colored coat that
will complement the rest of her wardrobe, and though she
would rather spend less money, she also wants to find a coat
made from sustainable materials.

4. Purchase Decision:
This is the moment the consumer has been waiting for:
the actual purchase. Once they have gathered all the facts,
including feedback from previous customers, consumers
should arrive at a logical conclusion on the product or service
to purchase.
If you’ve done your job correctly, the consumer will
recognize that your product is the best option and decide to
purchase.
Example: The customer finds a pink winter coat that’s on
sale for 20% off. After confirming that the brand uses
sustainable materials and asking friends for their feedback,
she orders the coat online.

5. Post Purchase Evaluation:

This part of the consumer decision-making process
involves reflection from both the consumer and the seller. As
a seller, you should try to gauge the following:
 Did the purchase meet the need the consumer
identified?
 Is the customer happy with the purchase?
 How can you continue to engage with this
customer?
Remember, it’s your job to ensure your customer
continues to have a positive experience with your product.
Post-purchase engagement could include follow-up emails,
discount coupons, and newsletters to entice the customer to
make an additional purchase. You want to gain life-long
customers, and in an age where anyone can leave an online
review, it’s more important than ever to keep customers
happy.
CONSUMER BEHAVIOUR MODEL:-

It is very important for a company to know and

understand the consumers’ response towards different
product features, prices and advertising appeals, as well as
their effect on the product getting a competitive edge over
the other products. Stimulus response model of buyer
behaviour is the starting point in this respect.

The Models of Consumer Behaviour are:-

1] Traditional Models
Economic model
Learning model / Pavlovian Model
Psychoanalytic model / Freud’s Model
Sociological model
2] Contemporary Models
The Howard Sheth Model of Buying Behaviour
The Nicosia Model
The Engel – Kollat – Blackwell Model
Engel, Blackwell and Miniard (EBM) Model
Webster and Wind Model of Organisational Buying
Behaviour
The Sheth Model of Industrial Buying
3] Marshallian Model

1) TRADITIONAL MODELS:
The early or traditional models were developed by
economists with a view to understand economic systems.
Economics helps to understand how scarce resources are
allocated among unlimited wants and needs. The first four
Models give a general view in terms of the Economic model,
Learning model, Psychoanalytic model and the Sociological
model.
i. Economic Model:
According to the economic model of buyer behaviour,
the buyer is a rational man and his buying decisions are
totally governed by the concept of utility. If he has a certain
amount of purchasing power, a set of needs to be met and a
set of products to choose from, he will allocate this amount
over the set of products in a very rational manner with the
intention of maximizing the utility or benefits.
Economic model is based on certain predictions of
buying behaviour.
1. Price effect – Lesser the price of the product, more
will be the quantity purchased.
2. Substitution effect – Lesser the price of the substitute
product, lesser will be the quantity of the original product
bought.
3. Income effect – More the purchasing power, more will
be the quantity purchased
ii) Pavlovian Model / The Learning Model
This model is named after the Russian physiologist Ivan
Pavlov. In his experiments, Pavlov sounded a bell and then
immediately applied a meat paste to the dogs’ tongues,
which caused them to salivate.
The dogs associated the bell sound (the conditioned
stimulus) with the meat paste (the unconditioned stimulus)
and, after a number of pairings, gave the same unconditioned
response (salivation) to the bell alone as they did to the meat
paste.
 In a consumer behaviour context, an unconditional
stimulus might consist of a well- known brand symbol (such
as – the Microsoft windows software programme) which
implies technological superiority and trouble-free operation
(the unconditional response).

iii. Psychoanalytical Model:

This model draws mainly from Freudian Psychology.
According to this model, the individual consumer has a
complex set of deep seated motives that drive him towards
certain buying decisions. The buyer has a private world with
all his hidden fears, suppressed desires and totally subjective
longings. His buying action can be influenced by appealing to
these desires and longings.
From the marketing point of view this means that buyers
will be influenced by symbolic factors in buying a product.
Motivational research has been involved in investigating
motives of consumer behaviour so as to develop suitable
marketing implications accordingly. Marketers have been
using this approach to generate ideas for developing products
– design, features, advertising and other promotional
techniques.

iv. The Sociological Model:

According to this model the individual buyer is a part of
the institution called society. Since he is living in a society, he
gets influenced by it and in turn also influences it in its path
of development. He is playing many roles as a part of various
formal and informal associations or organisations such as a
family member, as an employee of a firm, as a member of a
professional forum and as an active member of an informal
cultural organisation. Such interactions leave some
impressions on him and may play a role in influencing his
buying behaviour.
Intimate groups comprising of family, friends and close
colleagues can exercise a strong influence on the lifestyle and
the buying behaviour of an individual member. The peer
group plays a very important role in acting as an influencing
factor especially in adopting particular lifestyles and buying
behaviour patterns. The group generally has an informal
opinion leader, whose views are respected by the group. This
leader is able to influence the individual member’s lifestyle
and buying decisions.
Similarly, depending on the income, occupation and
place of residence etc., each individual member is recognised
as belonging to a certain social class. As a member of a
particular class, he may enjoy certain status and prestige.
Further, each class has its own standards of lifestyle and
buying behaviour pattern. So an individual member will adopt
the role suitable to conform to the style and behavioural
pattern of the social class to which he/she belongs.
The marketers, through a process of market
segmentation can work out on the common behaviour
patterns of a specific class and group of buyers and try to
influence their buying pattern.

2) CONTEMPORARY MODELS
With the evolution of the consumer behaviour study,
newer approaches were used to understand what influences
consumer behaviour. These were said to be contemporary
models.
These contemporary models or views differed from the
earlier models mainly because they focused on the decision
process adopted by consumers and borrowed concepts from
behavioural sciences field. Some of these models have been
discussed hereunder.

i. The Howard Sheth Model of Buying Behaviour:

The Howard-Sheth model provides an integrating
framework for a very sophisticated comprehensive theory of
consumer behaviour. The model tries to represent the
rational brand choice behaviour by buyers when faced with
situations involving incomplete information and limited
abilities.
The model refers to three levels of decision making:
a. Extensive Problem Solving: The initial stages of
decision making when the buyer has little information about
brands and has not yet developed a well-defined and
structured criteria to make a selection from the various
products (choice criteria).
b. Limited Problem Solving: In a slightly more advanced
stage choice criteria which is well defined but the buyer is not
clear and undecided on the set of brands which will best
serve him. In this situation, the consumer is uncertain on the
‘best brand’ which will suit him (or her).
c. Routinized Response Behaviour: The stage when
buyers have well defined choice criteria along with strong
predispositions towards one brand. In such a situation, there
is hardly any confusion in the consumer’s mind and he is
ready to purchase a particular brand with little evaluation of
alternatives.
The model has borrowed the learning theory concepts to
explain brand choice behaviour when learning takes place as
the buyer moves from Extensive Problem Solving to
Routinized Problem Solving behaviour.

ii. The Nicosia Model:

 In the past few years marketing scholars have built buyer
behaviour models taking the marketing man’s point of view.
The Nicosia model is one such buyer behaviour model. It is
also said to be a systems model, because the human being is
analysed as a system, with stimuli as the input to the system
and the human behaviour as an output of the system.
This model was developed by Francesco Nicosia, an
expert in consumer motivation and behaviour. Nicosia was
one of the pioneers, who attempted to bring into focus the
more complex decision process undertaken by consumers
rather than the act of purchase itself. The Nicosia model tries
to explain buyer behavior by establishing a link between the
organisation and its (prospective) consumer.
The model suggests that messages from the first
influences the predisposition of the consumer towards the
product or service. Based on the situation, the consumer will
have a certain attitude towards the product. This may result
in a search for the product or an evaluation of the product
attributes by the consumer. If the above step satisfies the
consumer, it may result in a positive response, with a decision
to buy the product otherwise the reverse may occur.
The Nicosia model, groups the above activity
explanations into four basic areas:
1. Field one has two sub areas – The consumers attribute
and the firm’s attributes. The advertising message sent from
the company will reach the consumer’s attributes. Depending
on the way, the message is received by the consumer, a
certain attribute may develop. This newly developed attribute
becomes the input for Area two.
2. The second area or area two- is related to the search
and evaluation, undertaken by the consumer, of the
advertised product and also to verify if other alternatives are
available. In case the above step results in a motivation to
buy the product/service, it becomes the input for third area.
3. The third area explains how the consumer actually
buys the product.
4. And area four is related to the uses of the purchased
items. This fourth area can also be used as an output to
receive feedback on sales results by the organization.
Evaluation of the Model and its Limitations:
The model can be said to be the pioneering efforts by
Nicosia to identify the decision making process carried out by
consumers. It is noteworthy to observe that the model has
viewed consumers to be involved in an active role and that
they move from general product knowledge towards specific
brand information (knowledge), while being involved in a
purchase behaviour.
However the model is said to have certain limitations. To
mention a few-
Firstly, the flow is not complete and does not mention
the various factors internal to the consumer.
Secondly, the assumption about the consumer being
involved in the decision process with no predispositions
about the various brands (or firms involved) is restricting.
And thirdly, the firm’s attributes and consumer
attributes mentioned in the model seem to be overlapping.
Inspite of the limitations the model can be said to be a
pioneering effort on the part of Nicosia to influence those
who are involved in trying to understand consumer
behaviour.

iii. The Engel – Kollat – Blackwell Model:

This model talks of consumer behaviour as a decision
making process in the form of five step (activities) which
occur over a period of time.
iv. Engel, Blackwell and Miniard (EBM) Model:
This model is a development of the original Engel, Kollat
and Blackwell model first introduced in 1968. It shares certain
things with the Howard-Sheth model. Both have similar scope
and have the same level of complexity. Primarily the core of
the EBM model is a decision process, which is augmented
with inputs from information processing and other
influencing factors also.

v. Webster and Wind Model of Organisational Buying

Behaviour:
This is a complex model developed by F.E. Webster and
Y. Wind, as an attempt to explain the multifaceted nature of
organisational buying behaviour. This model refers to the
environmental, organisational, interpersonal and individual
buying determinants, which influence the organisational
buyer(s). These determinants influence both the individual
and group decision making processes and consequently the
final buying decisions.
The environmental determinants comprise of the
physical and technological factors, economic, political, legal
and socio cultural environmental factors. These are external
factors which cannot be controlled, but an understanding of
the same may be crucial to succeed.
The organisational determinant is based on Harold
Leavitt’s four elements of buying organisation namely-people,
technology, structure and task. This is seen in ‘Buying Centre’,
mentioned. The buying concepts emphasise the fact that a
number of people participate in the buying decision process
including individuals and groups from the various functional
areas in the organisation.
 An individual may be involved in one or more buying
roles during organisational buying these roles could be of:
(a) Users- The ultimate users who often initiate the
buying process and help in defining specifications.
(b) Influencers- They may or may not be directly
connected with the decision, but their views or
judgments of a product or a supplier carry a lot of
weightage.
(c) Buyers- People who negotiate the purchase.
(d) Deciders- People who take the actual/decision (they
may be formal or informal decision makers).
(e) Gate Keeper- The person who regulates the flow of
information.
This model is a valuable contribution and helps in
revealing the whole range of direct and indirect influences,
which affect the organisational buying behaviour. However,
the limitation is that this model provides only a static
representation of a dynamic situation.

vi. The Sheth Model of Industrial Buying:

This model concentrates on the purchasing process and
highlights the importance of four main factors:
I. The expectations of the individuals making up the
DMU (Decision Making Unit).
II. The characteristics of both the product and the
organization.
III. The nature of the decision making process.
IV. The situational variables.

3) MARSHALLIAN MODEL:
This model is based on the assumption that consumers
have complete knowledge of their wants and of all available
means to satisfy them. This model is based on the law of
diminishing marginal utility. This model states that
expenditures vary directly with income (price effect); lesser
the price of the substitute product, lesser will be the utility of
the product first bought (substitution effect); and more
quantity will be purchased when a person’s income is
increased (income effect).
The main criticism of this model is that it assumes the
homogeneity of the market and similarity of buyer behaviour.
It ignores the aspects such as motivation, perception,
learning, attitude and socio cultural factors.

BLACK BOX MODEL:-

The black box model of consumer behaviour identifies

the stimuli responsible for buyer behaviour. The stimuli
(advertisement and other forms of promotion about the
product) that is presented to the consumer by the marketer
and the environment is dealt with by the buyer’s black box.
The buyer’s black box, comprises two sub components - the
buyer’s characteristics and the buyer decision process.
The black box theory is fairly popular method to describe
psychology. It is not possible to open the human mind to look
inside, we can only do something to the mind. The art of
understanding human psyche in terms of stimulus and
response.
The black box theory is of mental consciousness, which
states that the mind is fully understood once the inputs and
outputs are well defined, and binds this with a radical
skepticism regarding the possibility of ever successfully
describing the underlying structure, mechanism, and
dynamics of the mind.
 Example - 1 : Discount offers – During discount seasons,
Malls, and stores are filled with customers thinking they will
get high price products in cheap and this thinking of the
customers let them spend more as they actually want.  But
discounts varies from brand to brand. No-one knows how
they decide the amount of discounts to be given. They all are
busy in buying. This is black box approach of companies to
sell more of their items because of consumers thinking and
behaviour.
Example - 2 : Coding- Many companies outsource any
coder or give its IT related work on a contract basis. They
don’t know what coding they are doing what applications
they are using, but they are only interested in the output of
what they had done. It’s a black box model in which company
gives data to coder and get output but unaware what
happened in between.