Unit 2

1. Concept, Importance & Scope of Consumer Behaviour

Concept of Consumer Behaviour

Consumer Behaviour is the study of how individuals or groups select, buy, use, and
dispose of products and services to satisfy their needs and wants.

It focuses on:

 Why consumers buy

 What they buy
 When and how often they buy
 How they evaluate products after purchase

Example:
A customer comparing OnePlus, Samsung, and iQOO smartphones before purchase shows
consumer decision-making behaviour.

Importance of Consumer Behaviour

1. Helps in Understanding Customers

Marketers can understand customer expectations, preferences, and buying motives.

Example:
Zomato studies ordering patterns to suggest restaurants.

2. Helps in Product Design and Innovation

Products are designed according to consumer needs.

Example:
Amul introducing lactose-free milk for health-conscious consumers.

3. Helps in Effective Marketing Strategies

Advertising, pricing, and promotion become more effective.

Example:
HUL uses different ads for urban and rural markets.

4. Customer Satisfaction and Retention

Satisfied customers become loyal customers.

Example:
Amazon Prime retains customers through fast delivery and easy returns.
Scope of Consumer Behaviour

1. Study of buyer behaviour

2. Study of buying decision process
3. Study of factors influencing behaviour
4. Study of post-purchase behaviour
5. Study of individual and group buying behaviour

Example:
Studying why families prefer SUVs over small cars in recent years.

2. Need for Studying Consumer Behaviour

The study of consumer behaviour is essential due to:

1. Changing Consumer Preferences

Tastes change due to lifestyle, income, and trends.

Example:
Shift from carbonated drinks to healthy juices.

2. Increasing Competition
Many brands compete for the same customer.

Example:
Flipkart vs Amazon using personalized offers.

3. Market Segmentation
Helps divide the market into meaningful segments.

Example:
Maruti Suzuki offering cars for different income groups.

4. Better Forecasting
Helps predict future demand.

Example:
Smartphone companies forecasting festive season sales.

5. Social Responsibility
Understanding ethical and environmental concerns.

Example:
Demand for eco-friendly packaging.
3. Attitude Formation and Measurement
Meaning of Attitude

Attitude is a person’s learned tendency to respond favorably or unfavorably towards a

product, brand, or idea.

Example:
Positive attitude towards Patanjali due to its Ayurvedic image.

Attitude Formation

Attitudes are formed through:

1. Personal Experience
Past usage experience.

Example:
Repeated good service from Swiggy builds a positive attitude.

2. Family and Friends

Opinions of close groups.

Example:
Friends influencing choice of smartphone brand.

3. Advertising and Media

Influences perception.

Example:
Emotional ads of Tata Tea – Jaago Re.

4. Social and Cultural Environment

Traditions and values.

Example:
Preference for ethnic wear during festivals.

Measurement of Attitude

Attitudes cannot be seen directly, so they are measured using scales:

1. Likert Scale
Measures agreement or disagreement.

Example:
“I prefer Amul over other dairy brands – Strongly Agree/Agree/Neutral…”
 2. Semantic Differential Scale
Measures feelings between two opposite words.

Example:
Good ___ ___ ___ Bad

3. Ranking Scale
Consumers rank brands.

Example:
Ranking smartphone brands based on preference.

4. Meaning and Nature of Personality

Meaning of Personality

Personality refers to the unique psychological characteristics that influence how a person
responds to the environment.

It includes traits such as:

 Confidence
 Aggressiveness
 Sociability
 Introversion or extroversion

Example:
Extroverts preferring bold fashion brands, introverts preferring simplicity.

Nature of Personality

1. Unique
Every individual has a different personality.
2. Consistent
Personality traits remain relatively stable.
3. Dynamic
Can change slowly with experience.
4. Influences Buying Behaviour
Personality affects brand choice.

Example:

 Adventurous personalities buying Royal Enfield bikes

 Conservative personalities preferring Maruti cars
5. Self-Concept
Meaning of Self-Concept

Self-concept is how an individual perceives and views themselves.

Consumers often buy products that match their self-image.

Example:
A professional buying formal branded clothing to match self-image.

Types of Self-Concept

1. Actual Self
How a person sees themselves.
2. Ideal Self
How a person wants to be.
3. Social Self
How others see the person.
4. Ideal Social Self
How the person wants others to see them.

Role of Self-Concept in Consumer Behaviour

1. Brand Choice
Consumers prefer brands matching self-image.

Example:
Apple users see themselves as innovative.

2. Brand Loyalty
Emotional attachment with brands.

Example:
Nike for sporty and confident personalities.

3. Lifestyle Products
Strong influence in fashion, cars, gadgets.

Example:
BMW as a status symbol.
INDIVIDUAL DETERMINANTS OF
CONSUMER BEHAVIOUR
Individual determinants are internal factors within a consumer that influence how they
perceive, learn about, and respond to marketing stimuli. Two important individual
determinants are Perception and Learning.

1. PERCEPTUAL PROCESS
Meaning of Perception

Perception is the process by which an individual selects, organizes, and interprets

information to form a meaningful picture of the world.

In marketing, perception is more important than reality, because consumers act on what
they perceive to be true.

Example: Many consumers perceive Apple iPhones as superior even when competitors offer
similar features.

Stages of Perceptual Process

1. Perceptual Selection

Consumers are exposed to many stimuli but notice only a few.

Types of perceptual selection:

(a) Selective Attention

Consumers notice only messages relevant to them.

Example: A person planning to buy a car pays more attention to car advertisements.

(b) Selective Distortion

Consumers interpret information in a way that supports their existing beliefs.

Example: A loyal Samsung user believes negative reviews about other brands but ignores
criticism of Samsung.
(c) Selective Retention

Consumers remember information that supports their beliefs.

Example: Remembering only positive ads of Amul and forgetting competitors’ ads.

2. Perceptual Organization

Consumers organize information to make sense of it.

(a) Figure and Ground

One message stands out (figure) while others fade into the background (ground).

Example: Brightly colored packaging on supermarket shelves.

(b) Grouping

Consumers group similar stimuli together.

Example: All luxury brands being grouped as premium products.

(c) Closure

Consumers fill in missing information.

Example: Logos like McDonald’s “M” needing no explanation.

3. Perceptual Interpretation

Consumers assign meaning to the information.

Example: High price is interpreted as high quality in luxury products.

Importance of Perception in Marketing

 Influences brand image
 Affects advertising effectiveness
  Helps in positioning and differentiation

Example: Colgate is perceived as a dentist-recommended toothpaste.

2. LEARNING PROCESS
Meaning of Learning

Learning is a process through which consumers acquire knowledge and experience that
leads to changes in behaviour.

Learning occurs through:

 Experience
 Information
 Observation

Example: A customer repeatedly buying from Amazon due to positive delivery experience.

Characteristics of Learning
 Learning is continuous
 Learning results in behavioural change
 Learning is experience-based

Theories of Consumer Learning

1. Classical Conditioning Theory

Learning occurs through association between stimuli.

Example:
Thums Up ads associating the drink with adventure and masculinity.

2. Operant Conditioning Theory

Learning occurs through rewards and punishments.

Example:
Cashback offers on Paytm encourage repeat usage.
3. Cognitive Learning Theory

Learning occurs through thinking and problem-solving.

Example:
Consumers comparing smartphone features online before purchase.

4. Observational Learning

Learning by observing others.

Example:
Buying clothes worn by celebrities or influencers.

Role of Learning in Consumer Behaviour

 Builds brand loyalty
 Encourages repeat purchase
 Influences brand switching

Example:
Positive learning experience with Tata products increases trust in other Tata brands.

Difference Between Perception and Learning

Basis Perception Learning

Meaning How consumers interpret stimuli Change in behaviour through experience

Nature Short-term Long-term

Example Perceiving brand as premium Repeated buying due to satisfaction