Subject: Fundamental of marketing

Class: BBALLB
University Institute of Legal Studies
Prepared by : Ms. Divyapreet kaur
1

www.cuchd.in Campus: Gharuan, Mohali

 VISION

Consumer Behavior
.

2
www.cuchd.in Campus: Gharuan, Mohali
 Content
VISION

Meaning of Consumer Behavior

Definitions
Types of consumers
Significance
. of the study of consumer behavior
Determinants of consumer behavior
Problems in understanding consumer behavior
Effect of change in consumer behavior on marketing
Behavior of Indian consumers

3
www.cuchd.in Campus: Gharuan, Mohali
 VISION Behavior”
Meaning of “Consumer

The behavior of a person while making purchases may be

termed as consumer behavior.

.
According to Schiffman and Kanuk, the study of consumer
behaviour is the study of how individuals make decisions
to spend their available resources (i.e time, money and
efforts)

4
www.cuchd.in Campus: Gharuan, Mohali
 Determinants of Consumer
VISION Behavior

1.Economic
2.Sociological
3.Psychological
4.Personal
.
The Classified explanations of Determinant of Consumer
Behavior also known as “Theories” or “Models” of consumer Behavior
such as
1. Economic Theory of Consumer Behviour
2. Sociological Theory of Consumer Behviour
3. Psychological theory of Consumer Behavior
5
www.cuchd.in Campus: Gharuan, Mohali
 Determinants of Consumer
VISION Behavior

Economic Sociological Personal Psychological

Personal income Family Age Motivation

Disposable Income Reference groups Education Perception
.
Discretionary Income Opinion Leaders Occupation Image
Family income Social class Income Learning
Income expectation Culture Roles & status Attitude
Consumer’s liquid assets Family life cycle stage Beliefs
Consumer credit Personality
Standard of Living lifestyle
Government policy
Economic condition

6
www.cuchd.in Campus: Gharuan, Mohali
 1. Sociological factor
VISION

Family
.
Reference groups
Opinion Leaders
Social class
Culture

7
www.cuchd.in Campus: Gharuan, Mohali
 Family
VISION
The family is maybe the most influencing factor for an individual. It forms an
environment of socialization in which an individual will evolve, shape his personality,
acquire values. But also develop attitudes and opinions on various subjects such as
politics, society, social relations or himself and his desires.
But also on his consumer habits, his perception of brands and the products he buys.
We all kept, for many of us and for some products and brands, the same buying habits
and consumption patterns that the ones we had known in our family.
Perceptions and family habits generally have a strong influence on the consumer buying
behavior. People will tend to keep the same as those acquired with their families.
For example, if you have never drunk Coke during your childhood and your parents have
described it as a product “full of sugar and not good for health”. There is far less chance
that you are going to buy it when you will grow up that someone who drinks Coke since
childhood.
8
www.cuchd.in Campus: Gharuan, Mohali
 The member of family play different roles such as :
Initiator: the person who suggests buying a product or service
Influencer : the person whose point of view or advice will
influence
. the buying decision.
Decider : Is the person who finally take decisions as whether
to buy or not, what to buy, when to buy , where to buy and
how to buy.
Buyer : Is the person who actually buy the product.
User : Is the person who uses the product.

9
www.cuchd.in Campus: Gharuan, Mohali
 Reference Group VISION

The membership groups of an individual are social groups to

which he belongs and which will influence him. The membership
groups are usually related to its social origin, age, place of
residence,
. work, hobbies, leisure, etc..

10
www.cuchd.in Campus: Gharuan, Mohali
 c. Opinion Leaders VISION

Like reference group there is a person or opinion leaders or influential which play a
key role in influencing the buying behavior of the followers. He is innovator in the
group who first tries new ideas and goods then refers them to his followers . Such
persons are known as opinion leaders. Generally , film actors , actresses, Cricketers,
National players, Politicians , Religious personalities, social workers play the role of
opinion leaders.

Example when kapil dev says “palmolive da jawab nahi” then his fans ! Lovers prefer
to buy palmolive brand instead of others.

The beliefs ,preferences , attitudes , actions and behaviour of the opinion leader set
a trend and a pattern for others to follow in given stituations.
11
www.cuchd.in Campus: Gharuan, Mohali
 d. Social class VISION

Constitution of social class is determined by the income, authority ,power, ownership, lifestyles
,education ,consumption pattern etc. On the basis of we can classified in 3 classes 1) Rich class 2) Middle
Class and 3. poor class.

Social classes are defined as groups more or less homogenous and ranked against each
other according
. to a form of social hierarchy. Even if it’s very large groups, we usually find
similar values​​, lifestyles, interests and behaviors in individuals belonging to the same social
class.
We often assume three general categories among social classes : lower class, middle class
and upper class.
People from different social classes tend to have different desires and consumption
patterns. Disparities resulting from the difference in their purchasing power, but not only.
According to some researchers, behavior and buying habits would also be a way of
identification and belonging to its social class.
12
www.cuchd.in Campus: Gharuan, Mohali
 e. Culture VISION
Cultural factors are coming from the different components related to
culture or cultural environment from which the consumer belongs.
Culture and societal environment:
Culture is crucial when it comes to understanding the needs and
behaviors of an individual.
Throughout his existence, an individual will be influenced by his family,
. friends, his cultural environment or society that will “teach” him
his
values, preferences as well as common behaviors to their own culture.
For a brand, it is important to understand and take into account the
cultural factors inherent to each market or to each situation in order to
adapt its product and its marketing strategy. As these will play a role in
the perception, habits, behavior or expectations of consumers.

13
www.cuchd.in Campus: Gharuan, Mohali
 Sub Culture VISION
A society is composed of several sub-cultures in which people can
identify. Subcultures are groups of people who share the same
values ​based on a common experience or a similar lifestyle in general.
Subcultures are the nationalities, religions, ethnic groups, age groups,
gender of the individual, etc..
.
The subcultures are often considered by the brands for the
segmentation of a market in order to adapt a product or a
communication strategy to the values ​or the specific needs of this
segment.

14
www.cuchd.in Campus: Gharuan, Mohali
 2. EconomicVISION
Factor
These determinants or factor refers to personal income, disposable
income, discretionary income of the consumer , the rate of increase in
income , the degree of economic inequality , regional imbalances ,
inflation
. etc.

1. Government policy : the policy of the government also have an

impact on the consumer behavior. If government imposes more taxes
the consumer will be left with less income to spend , which effect the
consumer behaviour.

15
www.cuchd.in Campus: Gharuan, Mohali
 Personal , discretionary & disposable Income
VISION
The personal income of a person is determinant of his buying behaviour. The gross personal
income of a person consists of disposable income and discretionary income.

The disposable personal income refers to the actual income (i.e. money balance) remaining
at the disposal of a person after deducting taxes and compulsorily deductible items from the
gross income.
. An increase in the disposable income leads to an increase in the expenditure
on various items. A fall in the disposable income, on the other hand, leads to a fall in the
expenditure on various items.

The discretionary personal income refers to the balance remaining after meeting basic
necessaries of life. This income is available for the purchase of shopping goods, durable
goods and luxuries. An increase in the discretionary income leads to an increase in the
expenditure on shopping goods, luxuries etc. which improves the standard of living of a
person.
16
www.cuchd.in Campus: Gharuan, Mohali
 Family income VISION

Family income refers to the aggregate income of all the members of a

family. Family income influences the buying behaviour of the family. The
surplus family income, remaining after the expenditure on the basic
needs of the family, is made available for buying shopping goods,
.
durables and luxuries.

17
www.cuchd.in Campus: Gharuan, Mohali
 Standard of Living VISION

Standard of living : The consumer behaviour has the impact of the

established standard of living to which he is accustomed. Even if
consumer income goes down, the consumer spending will not come
.
down proportionately because, it is very difficult to come down from an
established standard of living. On the other hand, rise in income tends
to improve upon the established standard of living. In case the income
falls, the short-fall is made good by borrowings to a certain over a short
period of time.

18
www.cuchd.in Campus: Gharuan, Mohali
 Income expectationVISION

Income expectations are one of the important determinants of

the buying behaviour of an individual. If he expects any increase
in his income, he is tempted to spend more on shopping goods,
.
durable goods and luxuries. On the other hand, if he expects any
fall in his future income, he will curtail his expenditure on
comforts and luxuries and restrict his expenditure to bare
necessities.

19
www.cuchd.in Campus: Gharuan, Mohali
 Consumer credit VISION

Consumer credit refers to the credit facility available to the consumers

desirous of purchasing durable comforts and luxuries. It is made
available by the sellers, either directly or indirect у through banks and
other financial institutions. Hire purchase, instalment purchase, direct
.
bank loans etc are the ways by which credit is made available to the
consumers.
Consumer credit influences consumer behaviour. If more consumer
credit is available on liberal terms, expenditure on comforts and luxuries
increases, as it induces consumers to purchase these goods, and raise
their living standard.

20
www.cuchd.in Campus: Gharuan, Mohali
 Consumer liquid AssetVISION

Liquid assets refer to those assets, which can be converted

into cash quickly without any loss. Liquid assets include
cash in hand, bank balance, marketable securities etc If an
.individual has more liquid assets, he goes in for buying
comforts and luxuries. On the other hand, if he has less
liquid assets, he cannot spend more on buying comforts
and luxuries.

21
www.cuchd.in Campus: Gharuan, Mohali
 3.Psychological factor
VISION

The Psychological Factors are the factors that talk about the psychology of
an individual that drive his actions to seek satisfaction. Some of the
important Psychological Factors are:

22
www.cuchd.in Campus: Gharuan, Mohali
 3. a ) Motivation VISION

The level of motivation influences the buying behaviour

of the consumers. It is very well explained by Maslow
through his need hierarchy theory comprising of basic
needs, security needs, social needs, esteem needs and
self-actualization needs. Usually, the basic needs and the
security needs are more pressing needs than the other
and hence, these needs become a motive that directs the
consumer behavior to seek satisfaction
23
www.cuchd.in Campus: Gharuan, Mohali
 3. a ) Motivation VISION
NEEDS AND MOTIVES
• Need Imbalance between a consumer’s actual and desired
states.
• Motive Inner state that directs a person toward the goal of
satisfying a need.
Maslow’s Hierarchy of Needs
• Developed by psychologist Abraham H. Maslow
• Identifies five levels of human needs.
• Person must at least partially satisfy lower-level needs before
higher-level needs affect behavior.
24
www.cuchd.in Campus: Gharuan, Mohali
 Maslow hierarchy theory
VISION

25
www.cuchd.in Campus: Gharuan, Mohali
 Perception VISION
Perception is the process whereby stimuli are received and interpreted by the individual
and translated in to a response. Every individual and translated into a response. Every
individual perceives the message through
his eyes, ears, nose , skin and mouth (i.e to perceive is to see , hear , smell , touch an
sense internally) .
Perception
. is the process through which an individual selects, organizes and
interprets the information he receives in order to do something that makes
sense. The perception of a situation at a given time may decide if and how
the person will act.
Depending to his experiences, beliefs and personal characteristics, an individual will have a
different perception from another.
Each person faces every day tens of thousands of sensory stimuli (visual, auditory,
kinesthetic, olfactory and gustatory). It would be impossible for the brain to process all
consciously. That is why it focuses only on some of them.
. 26
www.cuchd.in Campus: Gharuan, Mohali
 Learning VISION

Learning is through action. When we act, we learn. It

implies a change in the behavior resulting from the
experience. The learning changes the behavior of an
individual as he acquires information and experience.
For. example, if you are sick after drinking milk, you had a
negative experience, you associate the milk with this state
of discomfort and you “learn” that you should not drink
milk. Therefore, you don’t buy milk anymore.
Rather, if you had a good experience with the product, you
will have much more desire to buy it again next time.

27
www.cuchd.in Campus: Gharuan, Mohali
 Attitudes & Beliefs VISION
A belief is a conviction that an individual has on something.
Through the experience he acquires, his learning and his external
influences (family, friends, etc..), he will develop beliefs that will
influence his buying behavior.
While an attitude can be defined as a feeling, an assessment of an
.
object or idea and the predisposition to act in a certain way
toward that object. Attitudes allow the individual to develop a
coherent behavior against a class of similar objects or ideas.
Beliefs as well as attitudes are generally well-anchored in the
individual’s mind and are difficult to change. For many people,
their beliefs and attitudes are part of their personality and of who
they are.

28
www.cuchd.in Campus: Gharuan, Mohali
 Personality VISION

The Behaviour of every individual differs from another. Every

lifestyle selects their own personality.
The personality develops with certain unique feature called
.
traits.
The traits are different are different in individuals to individual .
The important personality traits are : self confidence ,dominance
, competitiveness , aggressiveness , etc.

29
www.cuchd.in Campus: Gharuan, Mohali
 Life Style VISION

It has been observed that consumers coming from different cultures , sub
cultures ,
social classes , Occupations etc. bear different lifestyle.
The lifestyle of a person represents his activities , interest , opinion and
demographic
. features.

Activities : work , hobbies ,vocations

Interests : family , home , Job , community etc
Opinions : themselves , social issues , politics etc.
Demographics : age , income , education etc.

30
www.cuchd.in Campus: Gharuan, Mohali
 4. Personal
VISION Factor
1.Age –Age is an important factor for segmenting the market as well
As well as to influence the consumer behaviour. The need and
requirements of an individual change with the change in age.
The requirements of children are different from those of teenagers
.
and adults.
2.Education – It widens a person’s horizon . An educated person is
more inclined towards advertisements than less educated one.
Needs, Habits , buying motives ,buying preferences , knowledge
,awareness ,decision making power all changes with change in
level of education.
31
www.cuchd.in Campus: Gharuan, Mohali
 VISION

3. Occupation – the occupation of a person decides the consumption

pattern. A person normally buys goods that suit his occupation. The needs
of an individual largely relate to his work. For example , a teacher would
buy simple clothes , scooter , cooler , telephone connection , books and
.stationery etc.
4. Income – Income the most important factor which may influence the
consumer demand. There are many products in the market which the
consumers want to buy but his income may become a constraint.
5. Roles & Status – A person plays many great roles in his life. His roles changes
with the position he folds in a group family, friends , colleagues , organization
etc.
Each role carries a status. People choose products that confirm to their role and
status in the society.
32
www.cuchd.in Campus: Gharuan, Mohali
 VISION

Example ---
In a role of son , as a bachelor the person is more carefree in his dressing. He
may .buy boyish looking clothes but after marriage as a husband he may opt
for slightly mature clothes and after being father to a child he may
Start purchasing sober colors and designs.

33
www.cuchd.in Campus: Gharuan, Mohali
 Consumer Buying Process
VISION

1.Need Recognition
2.Information search
3.Evaluations of alternatives
4.Purchase
. Decision
5.Post Purchase Experience
6.Repeat Purchases
Or
Discontinue of purchase

34
www.cuchd.in Campus: Gharuan, Mohali
 Consumer Buying Process
VISION

35
www.cuchd.in Campus: Gharuan, Mohali
 Consumer Buying Process
VISION

Nothing like a real example to better

understand the five stages of the Consumer
Buying Decision Process. Maybe this
situation
. sounds familiar to you.
Stage 1 – Need recognition: It’s sunday
night. You’re hungry (internal physiological
stimuli) and there is nothing in the fridge.
You will order food (statement of need).

36
www.cuchd.in Campus: Gharuan, Mohali
 Consumer Buying Process
VISION

Nothing like a real example to better

understand the five stages of the Consumer
Buying Decision Process. Maybe this
situation
. sounds familiar to you.
Stage 1 – Need recognition: It’s sunday
night. You’re hungry (internal physiological
stimuli) and there is nothing in the fridge.
You will order food (statement of need).

37
www.cuchd.in Campus: Gharuan, Mohali
 Consumer Buying Process
VISION

Nothing like a real example to better

understand the five stages of the Consumer
Buying Decision Process. Maybe this
situation
. sounds familiar to you.
Stage 1 – Need recognition: It’s sunday
night. You’re hungry (internal physiological
stimuli) and there is nothing in the fridge.
You will order food (statement of need).

38
www.cuchd.in Campus: Gharuan, Mohali
 Consumer Buying Process
VISION

Nothing like a real example to better

understand the five stages of the Consumer
Buying Decision Process. Maybe this
situation
. sounds familiar to you.
Stage 1 – Need recognition: It’s sunday
night. You’re hungry (internal physiological
stimuli) and there is nothing in the fridge.
You will order food (statement of need).

39
www.cuchd.in Campus: Gharuan, Mohali
 Consumer Buying Process
VISION

Stage 2 – Information search: You already

have ordered to the Indian restaurant in
your street last month (internal
information). A friend recommended a
.
pizzeria in your neighbourhood (external
information from environment). And this
morning you’ve found a flyer for a sushi
restaurant in your mailbox (external
information from advertising).

40
www.cuchd.in Campus: Gharuan, Mohali
 Consumer Buying Process
VISION

Stage 3 – Alternative evaluation: You have a

bad opinion of the Indian restaurant since
you’ve been sick the last time (inept set).
The
. pizzeria is both recommended by your
friend and also happens to be a well-known
brand (positive perception – evoked set). As
for the sushi restaurant, it got good reviews
on Tripadvisor (positive perception – evoked
set).
41
www.cuchd.in Campus: Gharuan, Mohali
 Consumer Buying Process
VISION

Stage 4 – Purchase decision: After

evaluating the possibilities, you’ve decided
to choose the well-known pizza delivery
chain.
. In addition, a new episode of your
favorite TV show is broadcasted tonight on
TV.

42
www.cuchd.in Campus: Gharuan, Mohali
 Consumer Buying Process
VISION

Stage 5 – Post-purchase behavior: The pizza

was good (positive review). But you know
there was too many calories and you regret
a. little bit (mixed feelings about yourself).
The next time you will choose the sushi
restaurant. There is less fat in sushi than
pizza (next purchase behavior)!

43
www.cuchd.in Campus: Gharuan, Mohali
 THANKS &
.
ANY
QUERIES………………………
…..???????
44
www.cuchd.in Campus: Gharuan, Mohali