CONSUMER BEHAVIOUR - BBACO503A :- * Post-Purchase – Customer support, feedback systems, - Example - In rural India, traditional clothing (sarees, dhotis)

🌀 MODULE - 1 :- loyalty programs. still dominates, while urban elites prefer western brands.
💠 SECTION - A :- 🔰 Marketers shape consumer perceptions and guide choices 💠 SECTION - B :-
🔅Introduction to Consumer Behaviour towards their brand. 🔅 Social Factors
Consumer Behaviour is the study of how individuals, groups, 🔅Howard–Sheth Model of Consumer Behaviour Social factors play a very important role in shaping consumer
and organizations select, purchase, use, and dispose of goods, One of the most comprehensive models, it explains how behaviour. People are strongly influenced by the groups,
services, ideas, or experiences to satisfy their needs and consumers make decisions, especially under conditions of family, roles, and social status to which they belong. These
wants. It focuses on psychological (motives, attitudes, high involvement. It identifies three types of buying influences affect their needs, preferences, and purchase
perception), social (family, reference groups, culture), and behaviour: decisions.
personal (age, income, lifestyle) factors that influence buying 🔰Extensive Problem Solving 🔅Reference Groups
decisions. * Happens when the consumer faces a new purchase with It is a group of people that influences an individual’s attitudes,
In short, it answers: little knowledge. values, behaviour, and buying decisions.
* What consumers buy? * High involvement, high risk, lots of information search. 🔰 Types of Reference Groups:
* Why they buy? * Example: Buying a house, car, or laptop for the first time. - Normative Groups – The ones that directly influence day-to-
* When they buy? 🔰Limited Problem Solving day behaviour, e.g., family, close friends.
* How they buy? * Moderate involvement and familiarity with the product. - Comparative Groups – Aspirational groups that people
* Where they buy from? * Consumer has some knowledge but still needs compare themselves with, e.g., celebrities, successful
🔅Applications in the Area of Marketing comparison. professionals.
Consumer Behaviour knowledge is widely applied in * Example: Buying a new brand of smartphone or shoes. - Indirect Groups – Groups with which a person does not have
marketing for better decision-making: 🔰 Routinised Response Behaviour direct contact but still exerts influence, e.g., film stars,
🔰 Product Development * Habitual or repeated purchases with low involvement. athletes.
* Helps in designing goods/services that meet customer * Little effort in searching or evaluating. 🔅Factors Affecting Reference Group Influence:
needs. * Example: Buying soap, toothpaste, groceries. * Conformity (desire to fit in).
* Example: Smartphone companies offering AI cameras as 🌐 Significance: The model helps marketers decide whether to * Group size and cohesiveness.
consumers prefer better photography. focus on awareness (extensive), persuasion (limited), or * Nature of the product (luxury vs. necessity, public vs.
🔰 Pricing Strategy reinforcement (routinised) in their strategies. private).
* Understanding willingness-to-pay helps set optimal pricing. 🔅In summary: * Similarity between the group and the consumer.
* Example: Premium brands like Apple charge higher * The Stimulus-Response Model explains external influence on 🔅Consumer-Related Reference Groups
because of brand loyalty and perceived value. consumer decisions. Different types of groups that influence consumers:
🔰 Promotion and Communication * The Decision Process Stages outline how consumers move * Friendship Groups – Influence on casual purchases (food,
* Helps craft the right advertising message, media, and from problem recognition to post-purchase. clothing).
appeals (rational, emotional, celebrity endorsements). * Marketers influence every step through communication, * Shopping Groups – Friends/family who accompany
🔰 Market Segmentation & Targeting promotions, and after-sales service. consumers during shopping.
* Groups consumers by age, income, lifestyle, etc., for * The Howard-Sheth Model classifies consumer decisions into * Work Groups – Colleagues at the workplace influencing
precise marketing. extensive, limited, and routinised behaviours. lifestyle, fashion, gadgets.
🔰 Distribution Channels ❌❌❌❌❌❌❌❌❌❌❌ * Virtual Groups – Online communities, social media groups,
* Determines where consumers prefer to shop—online 🌀 MODULE - 2 :- influencers.
platforms, retail stores, malls, etc. 💠 SECTION - A :- * Consumer Action Groups – Groups formed to protect
🔰 Customer Relationship Management 🔅 Cultural Factors consumer rights and influence responsible consumption.
* Encourages long-term loyalty by understanding post- Consumer behaviour is strongly shaped by culture, which * Reference Group Appeals:
purchase behaviour and satisfaction. determines values, beliefs, customs, and consumption (i) Informational Appeal – Consumers accept information
🔅Trends in Consumer Behaviour patterns. provided by the group.
Consumer behaviour is dynamic, influenced by social, 🔅Culture (ii) Comparative Appeal – Consumers compare themselves to
technological, and cultural changes. Some recent trends * Definition: Culture is the complex set of shared values, aspirational groups.
include: beliefs, customs, and traditions that guide the behaviour of (iii) Normative Appeal – Groups set standards for acceptable
- Digital Shopping & E-commerce Growth – Consumers prefer members in a society. behaviour and consumption.
online shopping, quick delivery, and digital payments. * It influences what people want, how they consume, and why - Opinion Leadership:
- Eco-conscious & Sustainable Consumption – Growing they prefer certain products. * Opinion leaders are individuals who influence others’
preference for eco-friendly, organic, and cruelty-free products. * Example: In India, festivals like Diwali or Eid drive high sales purchase decisions due to their knowledge, expertise, or
- Experience-driven Consumption – Consumers value of sweets, clothes, and gifts. popularity.
experiences (travel, events, dining) more than material 🔅Enculturation & Acculturation * Example: Tech bloggers influencing gadget purchases.
possessions. 🔰 Enculturation: 🔅Family
- Influencer & Social Media Impact – Buying decisions are * The process by which an individual learns the culture of The family is the most important buying influence in
shaped by YouTubers, Instagram influencers, and online their own society (language, traditions, food habits). consumer behaviour.
reviews. * Example: A child in India learns to eat with hands or 🔰 Family Life Cycle Stages & Buying Patterns:
- Customization & Personalization – Brands offer tailored celebrate Holi through family traditions. 1. Bachelorhood – Spending on fashion, gadgets,
recommendations and personalized products. 🔰Acculturation: entertainment.
- Brand Loyalty & Emotional Attachment – Consumers stay * The process of adopting values or behaviours of another 2. Newly Married – Purchase of furniture, appliances,
loyal to trusted brands that align with their values. culture. vacations.
💠 SECTION - B :- * Example: Indians adopting Western fast-food habits (e.g., 3. Parenthood – High spending on housing, children’s
🔅Stimulus–Response Model of Consumer Behaviour McDonald’s, KFC). products, healthcare.
* This model views the consumer as a “black box” that Both processes affect consumer choices – whether traditional 4. Empty Nest – Travel, luxury products, savings for
responds to external stimuli. or global. retirement.
* Marketing Stimuli → Product, Price, Place, Promotion. 🔅Subculture 5. Solitary Survivor – Healthcare, security, basic consumption.
* Environmental Stimuli → Economic, Social, Cultural, * Within a dominant culture, smaller cultural groups exist with 🔰 Family Decision-Making Roles:
Technological factors. distinct characteristics called subcultures. - Initiator – Suggests the purchase.
* These stimuli enter the buyer’s black box (consumer’s * They provide opportunities for market segmentation. - Influencer – Gives opinions and alternatives.
characteristics, perceptions, motives, attitudes). * Major Sub-Cultural Categories in India: - Decider – Final authority in purchase.
* They result in Buyer Responses → product choice, brand (i) Religion – Hindus, Muslims, Christians, Sikhs → each has - Buyer – Person who actually purchases.
choice, dealer choice, purchase timing, purchase amount. different food, clothing, festivals. - User – Person who consumes/uses the product.
🔰 Marketers use this model to predict consumer actions by (ii) Region – South Indian (rice preference) vs. North Indian 🔅 Roles and Statuses
controlling marketing stimuli (e.g., discounts, advertisements). (wheat preference). * Each individual plays different roles in society – e.g., a
🔅Stages of the Buying Decision Process (iii) Language – Hindi-speaking vs. Bengali/Tamil speakers person may be a student, employee, and family member.
The consumer decision-making process typically involves five (influences media and packaging). * Every role carries a status (social esteem or prestige).
stages: (iv) Ethnic Groups – Tribal groups, Anglo-Indians, Parsis. * Consumers often buy products that reflect their status and
- Problem Recognition – Consumer realizes a need or problem (v) Age-based Subcultures – Youth culture (gadgets, fashion), reinforce their roles.
(e.g., hunger → need for food). elderly (healthcare products). * Example: A manager may buy formal clothing, a luxury car,
- Information Search – Internal (memory, past experience) and 🔅Social Class and branded accessories to reflect authority and success.
external (friends, advertisements, reviews). * Refers to a hierarchical division of society based on income, 💠 SECTION - C :-
- Evaluation of Alternatives – Comparing products on features, occupation, education, lifestyle, and prestige. 🔅Personal Factors
price, quality, brand image. * Influences buying preferences: Personal factors are individual characteristics that strongly
- Purchase Decision – Selecting the preferred option and * Upper class → branded luxury cars, designer clothes. influence consumer behaviour. Unlike cultural or social
deciding when/where to buy. * Middle class → value-for-money products, savings- influences, these are more internal and personal to the
- Post-Purchase Behaviour – Consumer evaluates satisfaction, oriented. consumer, shaping their preferences, choices, and buying
which affects future loyalty or complaints. * Lower class → focus on necessities. patterns.
🔰 Importance: This process helps marketers understand where * Example: A Mercedes car appeals to high-income groups as 🔅Age
and how to influence consumer choices. a status symbol. * Consumer needs and wants change across the life cycle.
🔅Marketers’ Influence on the Decision-Making Process 🔅Social Stratification in India * Children prefer toys, chocolates, cartoons.
Marketers can intervene at each stage of the buying process: India has a unique form of stratification influenced by caste, * Teenagers focus on fashion, gadgets, fast food.
- Problem Recognition – Through advertising that highlights class, religion, wealth, and education. * Adults spend on career, family needs, housing, and durable
problems or unmet needs (e.g., “Your skin needs care”). 🔰 Characteristics: goods.
* Information Search – By providing detailed product - Hierarchical – Higher vs. lower ranks in society. * Elderly consumers prioritize healthcare, comfort, and
information, brochures, influencer reviews, and online - Inherited & Universal – Social position often carried through security.
content. generations. 🔰 Example: A college student buys trendy clothes, while a
* Evaluation of Alternatives – Offering comparisons, free trials, - Affects Consumption – Rich vs. poor, urban vs. rural retired person may invest in medical insurance.
demonstrations. consumption patterns differ. 🔅 Occupation
* Purchase Decision – Discounts, easy financing, warranty, - Lifestyle Differences – Elite groups consume premium * Profession directly affects purchase behaviour.
availability. brands; lower-income groups prefer value products. * Business executives prefer formal clothing, cars, branded
gadgets.
* Skilled workers or labourers may buy functional and 🔰Safety Needs – Security, protection, insurance, savings. - Selective exposure – choosing what to pay attention to (e.g.,
affordable goods. 🔰Social Needs – Love, belongingness, friendship, family (social skipping ads).
* Doctors may invest in medical equipment, professional media, clubs, fashion). - Selective attention – noticing things that meet current needs
attire, and books. 🔰Esteem Needs – Status, recognition, achievement (luxury (e.g., a hungry person notices food ads).
🔰 Occupation influences status products and day-to-day cars, branded clothes). - Selective retention – remembering only relevant information
necessities. 🔰Self-Actualisation Needs – Personal growth, creativity, self- (e.g., keeping in mind a brand with a good discount).
🔅 Economic Circumstances expression (travel, art, higher education). 🔰Perceptual Organization
* Refers to the income level, savings, and purchasing power of - Visualised as a pyramid, showing how consumer motivation The brain organizes stimuli into meaningful patterns using
a consumer. grows from basic survival to self-fulfilment. principles like:
* High-income consumers buy luxury goods, branded 🌐 DIAGRAM: - Figure & ground – distinguishing an object from its
products, and services. Top → Bottom Pyramid Structure: background.
* Middle-income consumers focus on value-for-money 🔰 STEP 1 - Self-Actualisation Needs (Growth, Creativity, - Grouping – perceiving stimuli in groups (e.g., products
products. Purpose) arranged together).
* Low-income groups prioritize basic necessities and low-cost 🔰 STEP 2 - Esteem Needs (Status, Recognition, Respect) - Closure – filling in missing information to form a complete
alternatives. 🔰 STEP 3 - Social Needs (Love, Friendship, Belonging) picture (e.g., incomplete logos still recognized by consumers).
🔰 Example: A wealthy family may dine at five-star hotels, 🔰 STEP 4 - Safety Needs (Security, Stability, Health) 🔰Perceptual Interpretation
while a middle-class family may prefer affordable restaurants. 🔰 STEP 5 - Physiological Needs (Food, Water, Shelter, Sleep) Assigning meaning to stimuli. Two people can interpret the
🔅 Lifestyle 💠 SECTION - B :- same ad differently depending on experiences, attitudes, and
* Lifestyle reflects activities, interests, and opinions (AIOs) of a 🔅Self expectations. Example: A luxury car may be interpreted as a
consumer. * The concept of self refers to how a person perceives status symbol by one person but as wasteful by another.
* Two people with similar income may have different lifestyles themselves, their identity, and how they think others see 🔅Importance of Perception in Consumer Behaviour
– one may spend on travel and fitness, another on home them. * Determines brand image and positioning in the consumer’s
décor and electronics. * In consumer behaviour, self plays a major role because mind.
* Marketers use psychographic segmentation to target people often buy products that reflect or enhance their self- * Influences purchase decisions based on how consumers
consumers based on lifestyle. image. perceive product quality, price, and value.
🔰 Example: Fitness-conscious consumers buy gym 🔅Self-Image and Multiple Selves * Helps marketers design effective packaging, advertising, and
memberships, sports gear, and healthy food. * Self-image is the perception individuals have about promotions that grab attention and create positive
🔅 Personality & Self-Concept themselves (e.g., “I am modern,” “I am health-conscious”). associations.
Personality is the unique psychological traits (confidence, * Consumers often maintain multiple selves depending on 💠 SECTION - D :-
extroversion, innovation) that drive buying choices. situations: 🔅Learning
* Extroverts → trendy fashion, parties, social products. * Actual Self – How a person sees themselves. Learning refers to the changes in an individual’s behaviour
* Introverts → books, music, home entertainment. * Ideal Self – How they want to be. arising from past experiences, practice, or observation. In
Self-Concept refers to how consumers see themselves (self- * Social Self – How they think others perceive them. consumer behaviour, learning explains how consumers
image) and how they want others to perceive them (ideal * Expected Self – Who they believe they are likely to become develop brand preferences, product knowledge, and purchase
self). in the future. habits over time.
* People often buy products that reflect their identity. 🔰Example: A college student may see herself as studious 🔅Elements of Learning
🔰 Example: Someone who sees themselves as stylish may (actual self), stylish (ideal self), and friendly (social self). - Motivation - A strong drive or need that makes a person
prefer branded clothing; a person with an eco-friendly self- 🔅Extended Self respond (e.g., hunger motivates purchase of food).
concept may choose sustainable products. The extended self includes possessions, brands, and - Cues - Environmental stimuli that guide consumer response
❌❌❌❌❌❌❌❌❌❌❌ belongings that consumers use to express their identity. (e.g., advertisement, store display).
🌀 MODULE - 3 :- Products often become part of a person’s identity (e.g., - Response - The action taken by the consumer (buying,
💠 SECTION - A :- owning an iPhone, a car, or fashion accessories). rejecting, or trying a product).
🔅Motivation 🔰Four levels of extended self: - Reinforcement - If the purchase experience is satisfying, it
Motivation in consumer behaviour is the internal force that - Individual self (personal items like clothes, phone). strengthens the likelihood of repeat purchase (positive
drives purchase decisions. The process begins with a need, * Family self (house, furniture). reinforcement). Dissatisfaction weakens it (negative
creating tension and a drive that leads to behaviour aimed at - Community self (neighbourhood, social groups). reinforcement).
goal satisfaction. Motives can be primary/secondary, - Group self (religious or professional associations). - Retention - Learned behaviour is stored in memory and
rational/emotional, conscious/dormant, and they shape 🔅Altering the Self retrieved when making future buying decisions.
product and brand choices. Maslow’s hierarchy explains Consumers often buy products to change or improve their 🔅Learning Theories Relevant to Consumer Behaviour
consumer motivation as a progression from basic physiological self-image. 🔰Classical Conditioning (Behavioural Theory)
needs to self-actualisation, helping marketers design products 🔰Examples: * Developed by Pavlov.
and promotions targeting specific consumer motives. - Beauty and fitness products → improve physical self. * Learning occurs when a neutral stimulus (brand logo, jingle)
🔅Basic Process of Motivation - Education and skill training → improve intellectual self. is repeatedly paired with a stimulus that elicits a response
Motivation is the internal driving force that stimulates - Luxury items → enhance social self. (happiness, taste).
consumers to act and satisfy their needs. It starts with a need * Marketers use this by positioning products as image- * In marketing: A soft drink ad paired with fun and excitement
(felt deprivation), which creates tension (discomfort). The enhancing tools. → consumer associates’ brand with enjoyment.
individual then develops a drive to reduce this tension and 🔅Virtual Self 🔰Instrumental (Operant) Conditioning
takes action (buying behaviour) to achieve goal satisfaction. In the digital age, consumers create a virtual identity through * Learning through trial and error.
- Example: Feeling hungry (need) → tension → looking for social media, gaming avatars, and online communities. The * Positive outcomes (discounts, satisfaction) encourage repeat
food (drive) → buying a snack (action) → hunger satisfied virtual self may differ from the actual self, as individuals buying.
(goal). project the “ideal” version of themselves. * Negative outcomes (poor quality, bad service) discourage
🔅Model of the Motivation Process * Example: On Instagram, a person may showcase a purchase.
*Need → Tension → Drive → Behaviour → Goal Achievement glamorous lifestyle not fully matching their real life. * Example: Loyalty rewards programs reinforce continued
→ Feedback* 🔅Gender Roles buying.
* Need: Biological or psychological deficiency. * Gender influences how consumers perceive themselves and 🔰Modelling / Observational Learning
* Tension: State of discomfort due to unsatisfied need. their buying behaviour. * Consumers learn by observing others’ behaviour and
* Drive: Stimulus to reduce tension. * Traditionally, roles were divided (men → providers, women imitating.
* Behaviour: Action taken to fulfil the need. → homemakers), but modern trends show role reversal and * Influenced by family, peers, celebrities, social media
* Goal Achievement: Need satisfied, tension reduced. equality. influencers.
* Feedback: Determines future buying behaviour (repeat * Marketing now reflects progressive gender roles, such as * Example: A consumer buys a smartphone model after seeing
purchase or switching). men buying skincare or women purchasing automobiles. friends or influencers using it.
🔅Types of Motives * Gender identity is not only biological; it also includes 🔅Significance in Marketing
* Primary Motives – Innate, biological needs (food, water, cultural and psychological roles that influence consumption * Helps marketers design effective ads and promotional
shelter). patterns. strategies.
* Secondary Motives – Learned needs (status, belongingness, 💠 SECTION - C :- * Explains brand loyalty and habitual buying.
recognition). 🔅Perception * Encourages product trials through reinforcement (offers,
* Rational Motives – Based on logic (price, durability, Perception is the process by which an individual selects, free samples).
efficiency). organizes, and interprets sensory stimuli (such as sight, sound, * Guides in creating positive associations with the brand.
* Emotional Motives – Based on feelings (fear, love, pride, touch, taste, and smell) into a meaningful picture of the ❌❌❌❌❌❌❌❌❌❌❌
excitement). world. It goes beyond simple sensation — it’s about how
* Conscious Motives – Buyer is aware (buying a coat for consumers make sense of marketing messages, brands, and
winter). products.
* Dormant Motives – Hidden motives not immediately 🔅Elements of Perception
expressed (luxury purchase to show status). 🔰Sensation – The immediate response of sensory organs
🔅Buying Motives (eyes, ears, skin, nose, tongue) to stimuli. Example: Seeing a
🔰 Product Buying Motives bright advertisement or hearing a catchy jingle.
- Rational: Price, quality, durability, utility. 🔰Absolute Threshold – The minimum level of stimulation
- Emotional: Attraction, curiosity, pride, desire for beauty. required for a person to notice a stimulus. Example: The
🔰 Patronage Buying Motives (choice of seller/brand) lowest volume at which a consumer can hear a radio
- Rational: Good service, wide selection, convenience, fair advertisement.
price. 🔰Differential Threshold (Just Noticeable Difference – JND) –
- Emotional: Trust, personal relationship with seller, prestige of The minimum change in a stimulus required for a consumer to
store/brand. notice the difference. Example: A small change in the size of a
🔅Maslow’s Hierarchy of Needs (Consumer Motivation chocolate bar or price increase that goes unnoticed.
Theory) 🔅Dynamics of Perception
Maslow arranged human needs in a pyramid of five levels. 🔰Perceptual Selection
Consumers progress from lower-order to higher-order needs. Consumers are exposed to countless stimuli, but they only pay
🔰Physiological Needs – Food, water, clothing, shelter (basic attention to a few based on:
products).