CONSUMER BEHAVIOUR

To understand;
o What is consumer behaviour
o The nature and classification of consumer
behaviour
o The importance of consumer behaviour
LEARNING o The forces that drive change in consumer
OBJECTIVES
behaviour
o The Application of Consumer Behaviour
Principles to Strategic Marketing
o To take an overview of the consumer behaviour
scene in India
 WHO IS A CONSUMER ?

• Any individual who purchases goods and services from the

market for his/her end-use is called a consumer.
• In simpler words a consumer is one who consumes goods
and services available in the market.
 • Every customer shows inclination
towards particular products and
services.
• Consumer interest is nothing but
WHAT IS CONSUMER
INTEREST ? willingness of consumers to
purchase products and services as
per their taste, need and of course
pocket.
 WHAT IS CONSUMER BEHAVIOUR ?

• Consumer Behaviour is a branch which

deals with the various stages a consumer
goes through before purchasing products
or services for his end use.
 WHY DO WE NEED TO STUDY
CONSUMER BEHAVIOUR

• Because no longer can we take

the customer/consumer for
granted.
 WHY DO YOU THINK AN
INDIVIDUAL BUYS A
PRODUCT ?

• Need
• Social Status
• Gifting Purpose
WHY DO YOU THINK
AN INDIVIDUAL
DOES NOT BUY A
PRODUCT ?

• No requirement
• Income/Budget/Financial
constraints
• Taste
 IMPACT OF COVID 19 ON CONSUMER BEHAVIOUR

New—and everlasting—shopping habits

• The ever-increasing focus on health
• A rise in conscious consumption
• Growing love for local

Top 3 Things Indian Consumers Look Forward to post pandemic

Work-Life Balance
High Ambitions
Health and Stability
 Work Health and Shopping and
Rise of unemployment wellbeing consumption
On-the-go consumption Focus on health and hygiene Surge in e-commerce Preference for trusted bra
decline Remote working Acceleration of organic, natural, fresh Larger basket, reduced shopping frequency
Shift to stores closer to home
Fitness on demand E- Polarization of sustainability
pharmacy & e-doctor at scale
Learning Life at home
Spending on learning
Nesting at home
adjacancies
Surge in online
Remote learning “Home is recast as the new
“35% --> ~35% of Netflix coffee shop, restaurant, and
subscribers use it for entertainment center”
educational content”

Play and
Communications entertainmen
and information Preference for digital entertainme
In-person sampling decline Shift Entertainment channel shift (eg, cinem
in media consumption to streamin
Travel and mobility Additional play tim
“Disney Plus achieved in 5 months what to
Reduction in tourist spend and travel 7 years for Netfl
retail Increase in domestic tourism
 Steps Nature of question Example
1 What kind of consumers Teens, middle-aged,
buys it? elderly
INTRODUCTION
2 What products / services Do they prefer paste or
− TOOTHPASTE gel tooth
consumers buy?
EXAMPLE Paste or powder?
3 What makes customers Cavity protection,
•QUESTIONS THAT buy them? freshness, ailment
REFLECT THE CONSUMER
BEHAVIOUR 4 When are these bought? Say 1st week of every
month
5 From where do they buy Medical store, provision
it? store,
departmental store
6 How often are they Daily once, daily twice
used?
7 At what frequency do Fortnightly, monthly, bi-
they buy it? monthly
CONSUMER
BEHAVIOR
VARIES
 Soap

• Large Choice – Janta Soaps, Premium Soaps,

Antiseptic Soaps, Transparent Soaps, etc
• Brands – Lux, Lux International, Rexona, Godrej,
Savlon, Dettol, Lifebuoy, Hammam, Rexona,
Cinthol, Pears, Dove, Palmolive, Mysore Sandal,
etc.
LETS GO
THROUGH AN
EXAMPLE Customer Dilemma

• What soap to buy – type / brand

• Where to buy – chemist, general store, kirana, retail
• Frequency of purchase – once a week, month,
quarter
• Frequency of Use – daily [once], daily [several
times]
 • Consumers purchase products and services as and when
need arises.
• Perception also plays an important role in influencing the
buying decision of consumers.
• Buying decisions of consumers also depend on the following
factors:
• Messages, advertisements, promotional materials, a
consumer goes through also called selective exposure.
WHAT • Not all promotional materials and advertisements excite a
INFLUENCES consumer. A consumer does not pay attention to everything
CONSUMER he sees. He is interested in only what he wants to see. Such
BEHAVIOR behaviour is called selective attention.
• Consumer interpretation refers to how an individual
perceives a particular message.
• A consumer would certainly buy something which appeals
him the most. He would remember the most relevant and
meaningful message also called as selective retention. He
would obviously not remember something which has nothing
to do with his need.
 Behavior occurs either for the individual, or
group
Organization - people on the job
e.g., friends influence what
make decisions as to which
kinds of clothes a person wears
products the firm should use.\

SOME KEY POINTS

ON CONSUMER
BEHAVIOR
Consumer behavior involves the use/disposal of
products as well as the study of how they are
purchased.
Disposal - many environmental
Product use - great interest to
problems result from product
the marketer - influences how a
disposal (e.g., motor oil being
product is best positioned or
sent into sewage systems to
how we can encourage
save the recycling fee, or
increased consumption.
garbage piling up at landfills)
 • A buyer is not always the end user or the only
user of a product purchased
• A toy purchased by the parent is for the kid
C L A S S I F I C AT I O N O F • A toothpaste purchased is for more than
CONSUMERS one family member. Family here will be
a joint user
• Mother buying a beauty cream suggested
by her teenage daughter
• Father took household fire insurance
based on recommendation of his friend
 • Marketers must understand three natures
of consumers namely;
• User
• Buyer
• Influencer
C L A S S I F I C AT I O N O F • Marketers must decide at whom to direct
CONSUMERS
their promotional efforts − the user, buyer
or the influencer
• It will enable you to direct your
marketing efforts in the right direction
•Classification of Consumers
• Clarity regarding who is the buyer will enable
you to channelize your efforts towards say
• children’s magazine.
CLASSIFICATION OF CONSUMERS
• What is important for marketers to know is the
personal attachment with a product your
consumer has − more personal the product in
nature, it’s the user who decides e.g., mobile
phones − iPhone or Samsung; Desktop for son
as a student may get decided by the father as a
buyer depending on his financial capabilities
 IMPORTANCE OF CONSUMER BEHAVIOUR
Consumer

Marketer • Consumption related

behaviour
• Consumer buying process • Constraints
• Enables them to understand • Better understanding of
Key Drivers Value Propositions of
• Possible reactions to different marketers
stimuli • Factors affecting choice of
• Formulate strategy
brand/ product/ place of
• Reach out to customers in an
effective manner purchase / time of purchase
etc.
• Makes us wiser consumers
FORCES THAT DRIVE THE CHANGE IN CB
 • ENVIRONMENTAL CHANGES
• RISING PERSONAL DISPOSABLE
INCOME
• FACILITIES TO FINANCE
FORCES THAT PURCHASES
DRIVE THE • RISING RURAL WEALTH
CHANGE IN CB • SOCIAL AND CULTURAL FACTORS
• GLOBALISATION
• NUCLEAR FAMILIES
• URBANISATION
• DUAL INCOME HOUSEHOLDS
• BETTER VARIETY OF PRODUCTS
• MEDIA
 • a) Consumers have more power than ever
before.
• b) Consumers have access to more information
than ever before.
THE IMPACT OF • c) Marketers can offer more services and
THE DIGITAL products than ever before.
REVOLUTION • d) The exchange between marketers and
customers is increasingly interactive and
instantaneous.
• e) Marketers can gather more information about
consumers more quickly and easily.
• f) Impact reaches beyond the PC-based
company
•
 • 1. Physical, Psychological and
Sociological Buying Motives
• 2. Acquired and Inherent Buying Motives
• 3. Primary and Selective Buying Motives
CONSUMER • 4. Conscious and Dormant Buying
BUYING
Motives
MOTIVES
• 5. Rational and Emotional Buying
Motives
• 6. Product and Patronage Buying Motives

• https://www.economicsdiscussion.net/consumer-behaviour-2/
buying-motives/32326
IMPORTANCE OF KNOWING BUYING MOTIVES OF
CUSTOMERS

4. Facilitates
3. Facilitates
1. Success of 2. Facilitates to produce
pricing of
salesmanship product promotional
product
material

5. Facilitates
7. Efforts to
the selection
6. Creation make change
of
of goodwill in buying
distribution
motives
channels
 Type # 1. Utility: Every person wants to acquire maximum utility
from the limited income.
Type # 2. Fear: For example, a man buys insurance policy as he
fears from the death.
Type # 3. Desire for Money:
Type # 4. Love or Affection: For example – a man is motivated
buying a sweet for the parent , clothes and toys etc., for their
children.
BUYING Type # 5. Pride: Every person prefers listening his false praise.
MOTIVES (WITH Type # 6. Fashion: For example, DCM advertisement.
EXAMPLES)
Type # 7. Health:. For examples, vitamin tablets, a good diet and
tonic etc. In the context of children, this motive is more important.
Type # 8. Comfort and Convenience:. For example, fans, washing
machines, scooters, coolers and car etc.
Type # 9. Possession: Every person has a usual tendency to keep the
things under his possession. This motive inspires him to buy several
things like a building, automobile etc.
Type # 10. Curiosity: buyers under this motive buy a number of
things daily. Tourism, Media, Internet
 8 MAJOR DIFFICULTIES IN
JUDGING THE BUYING
MOTIVES

1. Illiteracy of customers.
2. Non-disclosure of motives by the customers knowingly.
3. Nature of customers – certain customers do feel shy to ask
for a hair dye from the seller.
4. Multiplicity of buying motives – a study reveals 600 kinds
of buying motives.
5. Change in buying motives with the change in age, income,
standard of living
6. Difficulty in identifying the specific buying motives as a
customer may have more than one buying motive at a time.
7. Lack of contact with each and every customer due to
geographical, economic or other difficulties.
8. Individual differences between persons and their buying
motives.
 7 O’S
F R A M EW O R K
FOR CONSUMER
BEH AV I O U R
 7 O’S FRAMEWORK FOR CONSUMER
BEHAVIOR

Occasion- When do
Object – What does
Occupants – Who is they Buy?
the Consumer Buy? Objective – Why is
the Consumer? Consumer Buying? For Example, Item
reason for the purchase
consumer’s overall profile in whose ticket size is
of the product, in terms For example, Complan
relation to geographic, high, such as television,
of the needs satisfied or is expected to increase
psychographic, demographic air conditioner, are
factors. benefits expected from the height of the child.
bought during Diwali or
the product.
New Year.

Outlet – Where do they Operations – How do Organization – Who is

Buy? they Buy? Involved?
For example: Before buying
For example: Do a laptop consumers often look It determines the
customers buy a mobile for the reviews of the latest management of the sources
phone from a retail laptops, as well as ask various of information which
outlet or online via questions from the company’s influence the buying
representatives to get assured
Amazon or Flipkart? of the product quality. decision of the consumer.
“CONSUMER BEHAVIOR IS DYNAMIC”

• How does the dynamic nature of

consumer behavior impact marketers?
• What marketplace trends contribute to the
dynamic nature of consumer behavior?
 1. WHY CONSUMER BEHAVIOR IS A FIELD OF STUDY.

2. WHAT DO RESEARCHERS WANT TO LEARN WHEN STUDYING

CONSUMER BEHAVIOR?

3. HOW CAN THIS INFORMATION BE USED AND BY WHOM?

• Consumer behavior sets into place a chain of reactions that changes their
lives, the lives of those around them, and the lives of people they don’t even
know.
• So due to the impact on society, the study of consumer behavior is important.
• It provides relevant knowledge for marketers seeking to understand
consumers, which can be used to encourage consumers to shop, buy, and
consume to create opportunity for businesses.
 EXPLAIN THE CONSUMER BEHAVIOR PROCESS
WITH
AN EXAMPLE OF A PRODUCT THAT YOU HAVE
RECENTLY PURCHASED.

• The process should include all the steps of the consumer behavior
process, which
• begins with your realization of their needs for the product and
• results in a perception of value gained from the product.
 L I S T S O M E B US I NE S S E S T H AT D E P E ND ON R E P E AT
B US I N E S S E S .

• the publishing business,

• dry cleaners,
• Grocery Stores
• Restaurants
• Barbers and all services
• CABS/ online food delivery and so on.
 LIST THE STRATEGIES BY WHICH A
RETAIL STORE CAN STRENGTHEN ITS
RELATIONSHIP WITH ITS CUSTOMERS.

• Introduction of membership cards for customers,

• communication of weekly offers or lucky draws to customers,
• authorization of special discounts for customers with membership
cards,
• and communication of daily alerts about offers to customers through
email and text messages.
 • Determine the impact of legislation on consumer behavior.
• For example, what was the impact on consumer behavior
following the bans on smoking in public places?
• What laws are specific to the state or city in which you live?
• Can restaurants or other establishments make their own rules
regarding smoking?
 CONSUMER SCENE IN INDIA

COMPARISION BETWEEN TWO GENERATIONS IN INDIA

PREVIOUS GENERATION TODAY’SGENERATION

• SECURITY • CONFIDENCE
• IDEALISM • PRACTICALITY
• RISK AVOIDANCE • RISK TAKING
• SAVING ORIENTED • INVESTMENT ORIENTED
• JOB SECURITY • JOB SATISFACTION
• POSTPONMENT OF • INSTANT GRATIFICATION
GRATIFICATION
• CONSIDERED • IMPULSIVE
DECISION
 CONSUMER SCENE IN INDIA
• What differentiate Indian consumers are the four core values

Family
Orientation

Indian Value
Class Consumer Seeking
Consciousness Values

Progress
Orientation
 • Family Orientation - being nuclear
does not mean being divided
• Value Seeking - not just the price
but price- quality combinations
CONSUMER • Progress Orientation - knows he can
SCENE IN INDIA conquer the world but his world
comes first
• Class Consciousness - accepts
where he belongs and then
strives to move upward
 CONSUMER SCENE IN INDIA

CONSUMER IS
MORE DEMANDING,EXPERIMENTATIVE AND
IS OPEN TO
NEW PRODUCTS AND IDEAS

FOR HIM VALUE IS NOT JUST PRICE BUT

PRICE - QUALITY COMBINATION

PROMOTION
RATIONAL & EMOTIONAL
EMPHASIS
APPEAL
 Today, it offers the biggest challenges to
marketers to understand the cultural
transformation going on and offer
products and services based on an
understanding of this new, emerging and
CONSUMER changing India and Indian consumers
SCENE IN
INDIA
Consumer buyer behaviour will play a
critical role in the success of many new
ventures entering India.
• https://youtu.be/wF41oVwGnK0
 T E N T RE N D S T HAT A RE ALT E R I NG CO N S UM E R
B E H AV I O R I N I N D I A

• Attitudes are changing as a result of rising incomes

and exposure to new ideas and technologies.
1.Information-Centered Shopping. People in Indian cities now treat
information gathering as an integral part of the shopping experience.

• Eighty-five percent of consumers check at least two data points (beyond

prices and discounts) when they’re buying something, and roughly 50% do
some sort of online research.

• Among the sorts of information that people look for are product reviews,
manufacturing and expiration dates, and how a product compares with
alternatives in terms of features.
2.Shopping to Stay Trendy. A desire to be in sync with the latest trends is
increasingly driving purchases among Indian consumers. More than 60% of
respondents said that in the past year, in at least one category, they had
purchased something because it was trendy and they felt like upgrading—not
necessarily because they needed a replacement.

3. Adoption of Time-Saving Products and Services. After signing a lease on

a new flat, a young couple in Delhi bought all their furniture online from
Urban Ladder, thus avoiding the need to make multiple shopping excursions
in the scorching summer heat.
• 4.A Full-On Embrace of Health and Wellness. Health consciousness has
seeped into the national conversation in recent years, and our survey shows
that 57% of consumers now spend on health and wellness

• 5. Growing Interest in Customized Products. Mass-produced offerings have

long dominated the Indian market. But in certain product categories, there’s
also now a belief that what one buys should reflect one’s individual
preferences and needs—even if one has to pay extra for the difference:

• 6. The Rise of the Female Decision Maker.

• 7.Valuing Experiences over Products. About four-fifths (77%) of the
respondents paid for three or more different types of experience last year.
Travel was the most common paid experience, and entertainment—including
concerts, plays, and movies

• 8. Exclusivity Adds Value

• 9. Renting over Buying.

• 10/ A Preference for Indian Brands over International Ones.

THANK YOU!