Consumer Behaviour

Complete Study Notes — MBA 2024-26

Prof. Nitika Sharma | IILM | Term 2

All 36 Sessions Covered · Easy Language · Exam-Ready Concepts · Real Examples

MODULE 1: Foundation of Consumer Behaviour & Intrinsic

Influences (Sessions 1–5)

SESSION 1 — Introduction to Consumer Behaviour

What is Consumer Behaviour (CB)?
Consumer Behaviour is the study of how people BUY, USE, and DISPOSE of products and services —
and WHY they make those choices.

It covers everything from why you choose Maggi over Top Ramen, to why you pick Zomato over Swiggy,
to why you spend ■15,000 on Nike shoes.

Example: When you decide to buy a new phone, you look at price, brand, reviews, what your friends
use — all of this is consumer behaviour.

Why is CB Important for Marketers?

Without understanding CB, marketers are just guessing. Understanding CB helps them:

• Create products people actually want (e.g. Jio created affordable data because Indians wanted cheap
internet)
• Write ads that connect emotionally (e.g. Fevicol ads — funny, memorable, Indian)
• Price products correctly (e.g. ■1 sachets for shampoo for rural India)
• Choose the right place to sell (e.g. D-Mart sells offline because its buyers prefer physical stores)

Scope and Applications

CB is used in: advertising, product design, pricing strategy, packaging, retail layout, digital marketing,
public policy (like anti-smoking campaigns), and even healthcare.

Brief History of CB
 • 1950s: Focus was only on economics — rational buyer who always maximises value.
• 1960s–70s: Psychology entered — emotions, motivation, perception matter.
• 1980s–90s: Social factors (culture, family, peer groups) recognised.
• 2000s–now: Digital behaviour, big data, AI, social media — huge shift.

Today's Digital Consumer

The Indian consumer today researches online before buying offline (ROPO — Research Online,
Purchase Offline). They compare prices on Amazon, read reviews on Flipkart, ask friends on WhatsApp,
then buy from local store or app.

Example: Someone buys a washing machine after watching YouTube reviews, comparing on Flipkart,
and then buying from the nearest Vijay Sales store.

CB is Interdisciplinary
CB borrows from multiple fields:

• Psychology: Why do we want things? (motivation, emotions)

• Sociology: How do groups influence us? (peer pressure, family)
• Economics: How do prices affect decisions?
• Anthropology: How does culture shape buying? (why South Indians buy gold differently than North
Indians)
• Marketing: How can we use all this to sell better?

Consumers Impact Marketing and Vice Versa

It's a two-way street. Consumers change their behaviour → Marketers adapt. Marketers launch new
products → Consumer behaviour changes.

Example: UPI launched by NPCI changed how India pays. Now people don't carry cash. Marketers
had to add QR codes everywhere — even at vegetable stalls.

SESSION 2 — Consumer Needs, Motivation & Behaviour Models (Part 1)

Who is the Consumer?
A consumer is anyone who buys or uses a product. The BUYER and USER can be different people.

Example: A mother buys Maggi for her child. Mother = buyer. Child = user. Both are consumers.

Consumer Needs and Motivation

A NEED is something you lack and want to fulfil. MOTIVATION is the inner force that drives you to
satisfy that need.

Example: You feel thirsty (need) → you feel driven to buy water or Limca (motivation) → you buy it
(behaviour).

Types of Motives
1. UTILITARIAN MOTIVE — buying for practical benefit.
Example: Buying Eno for acidity relief — purely functional.
2. HEDONIC MOTIVE — buying for pleasure, fun, or emotional satisfaction.
Example: Buying Ferrero Rocher just because it feels luxurious.
3. NORMATIVE MOTIVE — buying because social norms or expectations push you.
 Example: Buying an expensive gift for a wedding because 'it's expected'.

Maslow's Hierarchy of Needs

Abraham Maslow said humans fulfil needs in order from bottom to top:

1. Physiological Needs — food, water, sleep. Example: Buying rice, dal, water bottles.
2. Safety Needs — security, health, protection. Example: Buying health insurance, helmet, burglar
alarm.
3. Social/Love Needs — belonging, friendship. Example: Joining a gym club, wearing brands friends
wear.
4. Esteem Needs — respect, status, recognition. Example: Buying an iPhone, wearing branded
clothes.
5. Self-Actualisation — reaching full potential. Example: Paying for a music course, buying art supplies.
Key point: Marketers use this to position products. iPhone = Esteem. Surf Excel (clean clothes for kids)
= Love/Social.

McClelland's Theory of Needs

McClelland identified 3 key needs:

• Need for Achievement (nAch) — desire to excel. Example: MBA students buying books, prep apps.
• Need for Power (nPow) — desire to influence others. Example: Buying a premium car to show
authority.
• Need for Affiliation (nAff) — desire to belong. Example: Buying the same brand as your peer group.

D2C Brands and Consumer Motivation

D2C (Direct-to-Consumer) brands like Mamaearth, boAt, Sugar Cosmetics sell directly via apps/websites
without middlemen. They appeal to consumers who want:

• Personalisation (hedonic + esteem needs)

• Transparency and authenticity (trust need)
• Better prices (utilitarian need)
Example: Mamaearth targets young parents who want 'safe, toxin-free' products for babies — a mix of
safety need + social norm (good parent = good products).

SESSION 3 — Motivation, Involvement & Motivational Conflicts

Consumer Involvement
Involvement = how much thought and emotion a consumer puts into a purchase.

• HIGH INVOLVEMENT: expensive, risky, or personally important purchases.

Example: Buying a house, car, laptop — you research for weeks.
• LOW INVOLVEMENT: cheap, routine, low-risk purchases.
Example: Buying salt, biscuits, soap — you just grab it off the shelf.

Why Involvement Matters for Marketers

• High involvement → Use detailed ads with lots of information (e.g. car brochures, bank EMI details).
• Low involvement → Use simple, catchy, repetitive ads (e.g. Parle-G jingle — you remember it without
trying).
Motivational Conflicts
Sometimes two motives clash. There are 3 types of conflict:

1. APPROACH-APPROACH: Two good options, must pick one.

Example: You want to eat pizza AND biryani but can only order one.
2. APPROACH-AVOIDANCE: One option has both good and bad sides.
Example: You want a pizza (temptation) but you're on a diet (fear). Same product, conflicting feelings.
3. AVOIDANCE-AVOIDANCE: Two bad options, must pick the lesser evil.
Example: You don't want to go to the dentist (pain), but you also can't ignore the toothache (pain).
Marketing use: Colgate's 'no more excuse to avoid dentist' ad resolves avoidance-avoidance conflict.

SESSION 4 — Personality, Self-Perception & Brand Personality

What is Personality?
Personality = the unique psychological traits that make a person respond consistently to situations. It is
STABLE over time.

Example: If you're always adventurous, you'll consistently try new restaurants, new travel destinations,
new gadgets.

OCEAN Model (Big Five Personality Traits)

O — Openness: Curious, creative, open to new experiences. Example: Trying exotic food, buying indie
brands.
C — Conscientiousness: Organised, disciplined. Example: Comparing prices before buying, planning
purchases.
E — Extraversion: Social, outgoing. Example: Buying things for parties, social events.
A — Agreeableness: Kind, cooperative. Example: Buying gifts for others, preferring ethical brands.
N — Neuroticism: Anxious, emotionally unstable. Example: Buying health products out of fear.

Self-Perception (Self-Concept)
How you see yourself affects what you buy. There are two parts:

• ACTUAL SELF: Who you are right now. Example: A middle-income person buying value brands.
• IDEAL SELF: Who you want to be. Example: Same person buying a premium brand to feel
aspirational.
Marketers target the IDEAL SELF. Fair & Lovely (now Glow & Lovely) sold 'fairness' because many
Indians ideally wanted to look fair.

Diffusion of Innovation Model (Rogers)

This explains how new products spread through society:

1. Innovators (2.5%) — First to try. Risk-takers. Example: First to buy a new smartwatch brand.
2. Early Adopters (13.5%) — Influencers, opinion leaders. Example: Tech YouTubers reviewing new
phones.
3. Early Majority (34%) — Follow after seeing others. Example: Buying UPI after seeing friends use it.
4. Late Majority (34%) — Sceptical, adopt after most have. Example: Elders joining WhatsApp in
2018-19.
5. Laggards (16%) — Last to adopt. Example: People still using feature phones.
Brand Personality
Just like people, brands have personalities. Jennifer Aaker identified 5 brand personality dimensions:

• Sincerity: Honest, warm. Example: Amul — wholesome, down-to-earth Indian brand.

• Excitement: Daring, adventurous. Example: Mountain Dew — 'Darr ke aage jeet hai'.
• Competence: Reliable, intelligent. Example: HDFC Bank — trustworthy, professional.
• Sophistication: Glamorous, upper-class. Example: Louis Vuitton, Taj Hotels.
• Ruggedness: Outdoorsy, tough. Example: Royal Enfield — rough, adventurous riders.

SESSION 5 — Lifestyle, Values & Psychographics

Lifestyle
Lifestyle = how a person lives — their Activities, Interests, and Opinions (AIO). It's more than income; it
includes choices about how to spend time and money.

Example: Two people earning ■1 lakh/month — one spends on travel and gadgets (explorer lifestyle),
another saves and invests (cautious lifestyle). Same income, different lifestyle.

Psychographics
Psychographics = segmenting people based on lifestyle, values, personality, and attitudes (not just
age/income).

Example: [Link] targets 'health-conscious urban millennials' — this is psychographic segmentation,

not just demographic.

Values
Values are deep beliefs about what is important in life. They shape long-term behaviour.

• Traditional values: family, religion, savings. Example: Buying gold jewellery for daughter's wedding.
• Modern values: experience, convenience, sustainability. Example: Buying from eco-friendly D2C
brands.
India is changing: Young India values experiences over possessions ('experiences economy'). That's
why Zomato, MakeMyTrip, PVR are growing.

VALS Framework (Values and Lifestyles)

Groups consumers into types like: Innovators (high resources, open), Thinkers (rational, mature),
Achievers (career-focused), Experiencers (young, impulsive), Believers (traditional), Strivers
(status-seekers), Makers (practical), Survivors (limited resources).

Marketers use VALS to target the right group. A luxury car brand targets Achievers and Innovators.

MODULE 2: External Influences — Social & Cultural Settings

(Sessions 6–9)

SESSION 6 — Opinion Leadership, Reference Groups, WOM & Diffusion

Reference Groups
 A reference group is any group that influences your attitudes and behaviour. You compare yourself to
them.

• MEMBERSHIP GROUP: Groups you belong to. Example: Your MBA batch, your family.
• ASPIRATIONAL GROUP: Groups you want to belong to. Example: Wanting to dress like startup
founders.
• DISSOCIATIVE GROUP: Groups you don't want to be associated with. Example: Avoiding brands
seen as 'too cheap' or 'too old'.
Marketers use aspirational groups heavily. Virat Kohli endorsing MRF, Puma — people aspire to be
like him.

Opinion Leaders
Opinion leaders are people whose opinions others trust and follow. They don't have to be celebrities.

Example: Your tech-savvy friend who always knows the best phone to buy is an opinion leader in your
group. YouTube reviewers like Technical Guruji are digital opinion leaders.

Word of Mouth (WOM) and eWOM

WOM = recommendations passed person to person. The most trusted form of marketing.

eWOM = online reviews, social media posts, YouTube comments, Zomato ratings.

Example: Zomato's rating system is pure eWOM. People trust 4.2 stars more than any ad. Negative
eWOM spreads faster — one bad review can damage a restaurant for months.

Influencer Marketing in India

India's influencer marketing industry reached ■3600 crore in 2024. Brands use micro-influencers
(10k–100k followers) and mega-influencers for different goals.

Example: Sugar Cosmetics uses Instagram beauty influencers to reach young women. More trusted
than a TV ad.

UPI as Diffusion of Innovation

UPI spread from innovators (early fintech users in 2016) to now being used by vegetable sellers and
auto-rickshaw drivers. Classic Rogers' diffusion in real India.

SESSION 7 — Family, Society & Social Standing

Family as an Influence
Family is the MOST IMPORTANT social influence on consumer behaviour. We learn what to buy, how to
buy, and what to value from family.

Example: If your parents always bought Tata products (trust), you'll likely trust Tata brands too.

Family Decision Roles

• Initiator: Who first suggests buying. Example: Child says 'I want a PS5'.
• Influencer: Who shapes the decision. Example: Elder sibling says 'Xbox is better'.
• Decider: Who makes the final call. Example: Father decides what to buy.
• Buyer: Who physically buys. Example: Mother goes to store.
• User: Who uses it. Example: Child uses the gaming console.
 Marketers must identify WHO to target. Kinder Joy targets both child (user) and mother
(buyer/decider).

Family Life Cycle (FLC)

Buying changes at different life stages:

• Bachelor stage: Gadgets, entertainment, travel

• Newly married: Furniture, appliances, holidays
• Full nest (young children): Baby food, toys, schools
• Empty nest (children grown): Travel, health products, investments

Social Class in India

India's consumer classes:

• Elite/High class: Luxury brands, premium products (■10L+ annual income)

• Upper middle class: Aspirational brands, branded goods
• Middle class: Value for money — biggest segment, most hotly contested
• Lower income: Price-sensitive, sachets, local brands
Example: HUL sells Dove to upper middle, Lux to middle class, and Lifebuoy to lower income — same
company, different products for different social classes.

SESSION 8 — Changing Society, Demographics & Stratification

Demographics
Demographics = measurable population characteristics: age, gender, income, education, family size,
occupation.

Key India Consumer Trends (2024-25)

• India has 600 million+ internet users. More than double the US population.
• 65% of India's population is below 35 — young consumer base.
• Rural India consuming more branded products than ever (Bharat market).
• Women's purchasing power rising — 50% of all D2C buyers are women.
Example: Myntra's 40% of sales come from tier 2 and tier 3 cities. Bharat is the new battleground.

Changing Society Values

• Shift from joint families to nuclear families → more individual purchases.
• Women working → dual income households → more spending power.
• Urbanisation → exposure to brands, faster adoption of new products.
• Gen Z values: Sustainability, authenticity, digital-first, no BS marketing.

Social Stratification
Society is layered. Your social position determines what you buy, how you buy, and what brands you
aspire to. In India, caste, class, region, and religion all stratify society and affect buying.

SESSION 9 — Cross-Cultural Variations, Subcultures & Situational

Influences
Culture
Culture = shared values, beliefs, customs, and norms passed down through generations. It is the
INVISIBLE hand guiding buying behaviour.

Example: In India, gold is a cultural symbol of wealth and tradition. During Dhanteras, gold sales spike
— this is culture driving buying behaviour.

Subculture
Subculture = a smaller group within a culture that shares distinct values. Examples in India: Punjabis,
South Indians, Gen Z, gamers, fitness enthusiasts.

Example: South India's subculture values coconut oil, filter coffee, silk sarees — very different
consumption patterns from North India.

Cross-Cultural Variations
What works in one country may fail in another.

Example: IKEA entered India and had to redesign products — smaller apartments, more need for
storage, different colour preferences. They also added more 'Indian' food to their cafeteria (samosas!).
IKEA adapted to Indian culture.

Hofstede's Cultural Dimensions

• Power Distance: India = HIGH. Hierarchy is respected. Celebrities and authority figures sell well.
• Collectivism vs Individualism: India = Collectivist. Family opinion matters. 'Family pack' sells better.
• Uncertainty Avoidance: India = Medium. Some risk-taking, but prefer familiar brands.

Situational Influences
The SITUATION you're in changes what you buy:

• Physical environment: You buy more in a well-lit, pleasant-smelling store (why malls have air
fresheners).
• Time pressure: Rushed buying = impulsive, less price-sensitive. Swiggy Instamart wins on urgency.
• Social surroundings: Buying wine at a dinner party = different from buying alone at home.
• Purpose: Buying a gift vs buying for yourself = completely different choices.

MODULE 3: Perception, Positioning, Attitude & Learning

(Sessions 10–19)

SESSION 10 — Consumer Perception: Exposure & Sensory Marketing

What is Perception?
Perception = the process by which we SELECT, ORGANISE, and INTERPRET sensory information to
create a meaningful picture of the world.

Same reality, different perception. Example: Two people look at the same price tag of ■999 — one sees
'affordable', another sees 'expensive'. That's perception.

The Perceptual Process — 3 Stages

 Stage 1 = EXPOSURE → Stage 2 = ATTENTION → Stage 3 = INTERPRETATION

Stage 1: Exposure
Exposure happens when our senses (sight, sound, smell, taste, touch) come into contact with a
marketing stimulus.

Example: Seeing a Swiggy ad on Instagram = exposure. Smelling fresh bread outside a bakery =
sensory exposure.

Sensory Marketing
Brands deliberately trigger senses to create positive associations:

• Sight: Colour, packaging. Red = urgency (Zomato red). Green = natural (Patanjali).
• Sound: Jingles, store music. Slow music in stores = people spend more time and money.
• Smell: Singapore Airlines uses a signature fragrance on their flights. Many Indian sweet shops pump
smell outside.
• Touch: Premium packaging feels heavy — makes product feel more valuable (Apple boxes).
• Taste: Free samples at Big Bazaar or Costco — tasting increases buying.

Sensory Thresholds
• ABSOLUTE THRESHOLD: The minimum stimulus level needed to be noticed. Below this = not
detected.
Example: A billboard in small font placed 500 metres away won't be noticed — below absolute
threshold.
• DIFFERENTIAL THRESHOLD (JND — Just Noticeable Difference): The minimum CHANGE in
stimulus needed to be detected.
Example: If you raise price of Parle-G by ■1, people won't notice (below JND). If you reduce pack size
by 10g, people may notice (above JND).

Weber's Law
The larger the original stimulus, the larger the change needed to be noticed.
POSITIVE JND: Make improvements noticeable. Example: New, improved Ariel detergent — must
show visible difference.
NEGATIVE JND: Make price increases or size reductions NOT noticeable. Example: Shrinkflation —
Lays chips bag got smaller but price stayed same.

Subliminal Perception
Subliminal stimuli are below the level of conscious awareness. The brain processes them without you
knowing.

Example: Brief 1/3000th second flashes of 'Drink Coca-Cola' in movies reportedly influenced thirst.
Controversial — mostly a myth, but marketers still use subtle logo placements.

SESSION 11 — Perception Stage 2: Attention

What is Attention?
Attention = the amount of mental processing given to a stimulus. We CAN'T pay attention to everything
— we are highly selective.
Why Attention is Hard to Get
An average person sees 5,000+ ads per day. The brain filters most out. This is called PERCEPTUAL
OVERLOAD.

Factors That Influence Attention

STIMULUS FACTORS (from the ad/product):

• Size: Bigger ads get more attention. Full-page ad vs quarter-page.

• Colour: Colour ads recalled more than black-and-white.
• Movement: Animated banners, moving billboards grab more attention.
• Position: First and last pages of a magazine get most attention.
• Novelty: Unexpected, unusual ads stand out. Amul's witty topical ads always get noticed.
INDIVIDUAL FACTORS (from the consumer):

• PERCEPTUAL VIGILANCE: We notice things relevant to us. If you're pregnant, you suddenly notice
all baby product ads.
• PERCEPTUAL DEFENCE: We block out things we don't want to see. Heavy smokers ignore
anti-smoking ads.
• ADAPTATION: We tune out stimuli we see too often — this is why brands need fresh campaigns.

Marketing Application
• Use variety in advertising to avoid adaptation.
• Use surprise, humour, or controversy to break through clutter.
Example: Zomato's quirky push notifications ('Your biryani is waiting') break through notification clutter
because they're funny and personal.

SESSION 12 — Perception Stage 3: Interpretation (Part 1)

What is Interpretation?
Interpretation = giving meaning to the stimulus you've noticed. We organise and make sense of
information based on our past experiences, expectations, and knowledge.

Gestalt Principles of Perception

'Gestalt' means 'whole' in German. Consumers see the complete picture, not just parts.

• FIGURE AND GROUND: Our eyes separate an object (figure) from its background (ground). Logos
are designed as 'figure'.
Example: Fedex logo has an arrow hidden in the negative space between E and X.
• GROUPING: We group similar things together.
Example: Products displayed together imply they go together — shampoo next to conditioner.
• CLOSURE: We fill in missing information to complete an image.
Example: An incomplete logo (like WWF's panda) — our mind fills in the rest.

Schema and Stereotypes in Perception

A SCHEMA is a mental framework. When we see something, we match it to our existing schemas.

Example: You see a product in green packaging with leaf imagery — your schema says
'natural/organic'. Marketers use this heavily.
SESSION 13 — Interpretation Part 2: Perceived Risk, Quality & Value
Perceived Quality
Perceived quality is NOT actual quality — it's what the consumer THINKS the quality is based on cues.

Intrinsic cues: Physical product features (taste, texture). Example: Thicker cream feels more premium.
Extrinsic cues: Price, brand name, packaging, country of origin.
Example: 'Made in Japan' or 'Imported' signals quality to Indian consumers even if the actual quality is
same as local products.

Perceived Risk
Consumers feel RISK when making purchases. Types of perceived risk:

• Financial risk: 'What if I waste money?' Example: Trying an expensive restaurant.

• Performance risk: 'What if it doesn't work?' Example: Buying a no-name phone brand.
• Social risk: 'What will people think?' Example: Wearing an unfashionable brand.
• Physical risk: 'What if it harms me?' Example: Buying unknown cosmetics.
• Time risk: 'What if I waste time returning it?' Example: Online shopping from new site.
Marketers REDUCE perceived risk by: offering free returns, money-back guarantee, celebrity
endorsements, strong brand name, customer reviews.

Perceived Value
Perceived Value = What you get (benefits) minus What you give up (cost, effort, time).

Example: Ola vs auto-rickshaw. Ola costs more but offers AC, tracking, and no haggling — perceived
value is higher for many urban users.

Price-Quality Relationship
Many consumers believe higher price = higher quality. Brands USE this to their advantage.

Example: Bata sells shoes from ■500 to ■5000. The ■5000 shoes may not be proportionally better,
but consumers perceive them as premium.

SESSION 14 — Perceptual Maps: Positioning & Repositioning

What is a Perceptual Map?
A perceptual map is a visual diagram showing how consumers perceive competing brands on two
important dimensions (like price vs quality, or modern vs traditional).

How to Create a Perceptual Map

Step 1: Choose two attributes that matter to consumers (e.g. price and quality).
Step 2: Survey consumers to rate brands on these attributes.
Step 3: Plot brands on the map — X-axis is one attribute, Y-axis is the other.
Step 4: Look for gaps — empty spaces on the map = unmet consumer needs = business opportunity.

Example: Indian Car Market Perceptual Map

X-axis: Price (Low to High). Y-axis: Luxury (Basic to Premium).

• Maruti Alto = Low price, Basic — bottom left

 • Hyundai Creta = Mid price, Mid-premium — centre
• Mercedes E-Class = High price, High luxury — top right
• 'Affordable luxury' gap? — Tata Nexon EV is trying to fill it.

Repositioning
Repositioning = moving your brand's position in consumers' minds.

Example: Old Spice was seen as an 'old man's brand'. Repositioned with humorous, absurdist ads
targeting young men. Now perceived as cool and fun.
India example: Surf Excel moved from 'cheapest detergent' to 'Daag achhe hain' (stains are good) —
repositioned as a premium brand supporting childhood experiences.

SESSION 15 — Consumer Learning (Part 1): Theories & Applications

What is Consumer Learning?
Learning = any change in behaviour resulting from experience. Consumers LEARN what to buy, from
whom to buy, and when to buy.

Elements of Learning
• Motivation: Need to learn (want to buy a laptop, start learning about specs).
• Cues: Stimuli that guide learning (ads, store displays, friends' advice).
• Response: What the consumer does (buys, enquires, ignores).
• Reinforcement: Positive experience confirms the learning (if laptop is great, you'll buy same brand
again).

Classical Conditioning
Learning through ASSOCIATION. Pair something neutral with something that naturally causes a
response.

Pavlov's experiment: Bell (neutral) + Food (causes salivation) → Eventually Bell alone causes salivation.

In marketing: Brand (neutral) + Positive emotion (celebrity/music/beautiful imagery) → Brand alone

evokes positive emotion.

Example: Kinder Joy. Paired with children's joy, surprise, fun. Now children associate Kinder Joy with
happiness purely through conditioning.
Example: McDonald's uses happy music + smiling families + Ronald McDonald = you feel happy just
seeing the golden arches.

UCS, UCR, CS, CR Explained Simply

• UCS (Unconditioned Stimulus): naturally causes response. Example: Celebrity face → admiration.
• UCR (Unconditioned Response): natural response. Example: Feeling of aspiration.
• CS (Conditioned Stimulus): neutral thing being paired. Example: Brand logo.
• CR (Conditioned Response): learned response to the brand. Example: Seeing brand logo → feeling
aspirational.

Operant Conditioning (Instrumental Conditioning)

Learning based on REWARDS and PUNISHMENTS.
 • Positive reinforcement: Good experience → repeat purchase. Example: Coffee tastes amazing → buy
same brand.
• Negative reinforcement: Removes a bad feeling → drives purchase. Example: Painkiller removes
headache → you buy it again.
• Punishment: Bad experience → avoid. Example: Poor customer service → never return to that
restaurant.
Loyalty programmes = operant conditioning. Starbucks stars, Zomato Pro, Amazon Prime — reward
you for repeated buying.

SESSION 16 — Evaluation (Internal Exam Session)

This session is an assessment/evaluation session. Use it to revise Modules 1–3 concepts covered so
far. Focus on: Motivation theories, Perception stages, Learning theories, Personality models.

SESSION 17 — Consumer Learning Part 2: Memory, Cognitive Learning &

Technology
Cognitive Learning
Cognitive learning = learning through THINKING, REASONING, and PROBLEM SOLVING — not just
conditioning. The consumer actively processes information.

Example: You research 10 phones, read reviews, compare specs, watch YouTube — this is cognitive
learning before buying.

Consumer Memory
• SENSORY MEMORY: Very brief — seconds. We process millions of stimuli but only a few enter
working memory.
• SHORT-TERM (WORKING) MEMORY: Limited capacity — 7 ± 2 chunks of info at a time. Marketers
use chunking.
Example: Phone numbers chunked as 98765-43210 are easier to remember than 9876543210.
• LONG-TERM MEMORY: Permanent storage. Strong emotions, repetition, and personal relevance
drive info into LTM.
Example: You remember Amul's ads from childhood. They're stored in LTM through repetition and
emotion.

Reinforcement and Brand Recall

Nielsen (2023) found that in emerging media, brand recall is the biggest driver of ad effectiveness.
Brands must be recalled — not just recognised.

Recall = you can name the brand without seeing it. Recognition = you identify it when you see it. Recall
is harder but more powerful.

Technology's Effect on Learning

• Algorithm-driven learning: YouTube, Instagram suggest content based on what you've previously
engaged with — you learn what to want from recommendations.
• User-generated content teaches consumers what products are like before buying.
• Virtual try-ons (Lenskart, Nykaa) let consumers 'experience' before buying.
SESSION 18 — Consumer Attitude Formation & Change
What is an Attitude?
Attitude = a LEARNED predisposition to behave consistently positively or negatively towards an object
(brand, product, ad).

Key: Attitudes are LEARNED (not innate), they are CONSISTENT, and they PRE-DISPOSE behaviour
(don't always determine it).

Tri-Component Attitude Model (ABC Model)

Every attitude has three parts:

A — AFFECTIVE: Feelings/emotions about the object. 'I love Maggi.'

B — BEHAVIORAL (Conative): Intention to act. 'I will buy Maggi.'
C — COGNITIVE: Beliefs/knowledge. 'Maggi is a quick, tasty snack.'
Example: A consumer's attitude toward Nykaa: Cognitive (I know it sells genuine cosmetics), Affective
(I love their app and branding), Conative (I buy from them every month).

Multi-Attribute Attitude Model (Fishbein)

Overall attitude = sum of (belief about each attribute × importance of that attribute).

Example: Choosing between two phones. Phone A: camera (9/10 belief × 5 importance) + battery
(7/10 × 4) = 45+28 = 73. Phone B: camera (7 × 5) + battery (9 × 4) = 35+36 = 71. Choose Phone A.

Cognitive Dissonance
After buying something expensive, you feel UNCOMFORTABLE if you start doubting your choice. This
discomfort is cognitive dissonance.

Example: You bought a ■1 lakh MacBook. Later your friend says 'Dell is better for the price.' You feel
uneasy — that's dissonance. You'll then look for info confirming MacBook was the right choice.
Marketers reduce post-purchase dissonance by: post-purchase emails ('Great choice!'), good warranty,
customer care, testimonials.

Attribution Theory
Attribution = how consumers explain why things happen.

• Internal attribution: 'I chose the wrong product (my fault).'

• External attribution: 'The brand misled me (their fault).'
If a shampoo doesn't work, do you blame yourself for expecting too much, or blame the brand for false
promises? This affects repeat purchase.

SESSION 19 — Case Study Presentations (Module 3)

This is a group presentation session on Module 3 concepts. Topics: perception stages, perceptual maps,
learning theories, attitude models. Prepare case-based presentations with real brand examples.
MODULE 4: Consumer Decision Making & Research (Sessions
20–29)

SESSION 20 — Consumer Decision Making Process Part 1

The 5 Stages of Consumer Decision Making
Every purchase goes through these stages (though speed varies):

Stage 1: PROBLEM/NEED RECOGNITION

Stage 2: INFORMATION SEARCH
Stage 3: EVALUATION OF ALTERNATIVES
Stage 4: PURCHASE DECISION
Stage 5: POST-PURCHASE BEHAVIOUR

Stage 1: Problem/Need Recognition

The process begins when a consumer recognises a difference between their ACTUAL state and their
DESIRED state.

Example: Your old phone breaks (actual state). You want a working smartphone (desired state). Gap =
need for new phone.
Internal stimulus: Need arises from within. Example: Hunger → want food.
External stimulus: Something external triggers need. Example: Swiggy ad at 10 PM triggers hunger
craving.

Types of Consumer Decisions

• COGNITIVE: Deliberate, rational, high involvement. Example: Buying a house, car, expensive laptop.
• HABITUAL: Low thought, routine purchase. Example: Buying the same brand of milk every week.
• AFFECTIVE: Emotion-driven. Example: Buying a Hallmark card because it 'feels right'.
• CONTEXTUAL: Situation-specific. Example: Buying an umbrella because it's suddenly raining.

High vs Low Involvement

High involvement (Car, house, laptop): Consumer spends lots of time searching, comparing, and
evaluating.

Low involvement (Chips, soap, pen): Quick decision, mostly habit or impulse.

Example: Spinny (used car platform) — buying a used car is HIGH involvement. Consumers research
thoroughly, take test drives, compare prices, check reviews — massive pre-purchase search.

SESSION 21 — Decision Making Part 2: Information Search, Evaluation &

Post-Purchase
Stage 2: Information Search
After recognising a need, consumers search for information.
• INTERNAL SEARCH: Recall from memory. 'I've used Dove before, it was good.'
• EXTERNAL SEARCH: Active search from outside sources.
- Personal: Ask friends, family
 - Commercial: Ads, brand websites
- Public: Consumer reviews, news, social media
- Experiential: Try the product (free samples)
Example: Buying a refrigerator → Google for brands, YouTube for reviews, visit Croma, ask relatives,
compare on Amazon — extensive external search.

Consideration Set
From all brands known, the consumer creates a shortlist called the CONSIDERATION SET (also called
evoked set).

Example: When buying headphones, you consider: boAt, Sony, JBL, Realme. You've filtered out
hundreds of brands.
Goal: Be in the consumer's consideration set. You can't win if you're not even being considered.

Stage 3: Evaluation of Alternatives

Consumer uses evaluative criteria (attributes they care about) to compare options.

Example: Comparing laptops on: price, RAM, battery, brand reputation, weight. Each person has
different criteria depending on their use.

Stage 4: Purchase Decision

Consumer decides to buy. But TWO factors can intervene between intention and actual purchase:

1. Other people's attitudes: 'Your friend says the phone model you chose had bad reviews'.
2. Unexpected situation: Price increase, stock out, better deal elsewhere.
Example: You decide to buy Realme 12 Pro, but at the store the salesperson shows you an ongoing
EMI offer on Samsung → purchase decision changes.

Stage 5: Post-Purchase Behaviour

After buying, the consumer compares actual performance vs expectations.

• SATISFIED: Tells others (WOM), repurchases, becomes loyal.

• DISSATISFIED: Complains, returns product, negative reviews, switches brand.
• COGNITIVE DISSONANCE: Doubt/anxiety about whether they made the right choice.
Example: After buying an expensive Dyson vacuum cleaner, if it works amazingly → satisfaction →
loyalty. If it breaks within 3 months → dissatisfaction → negative reviews on Amazon.

SESSION 22 — Consumer Decision Making in the Digital World

How Technology Changed Decision Making
The traditional 5-stage funnel is now non-linear. Consumers jump between stages constantly.

Example: You see a reel on Instagram (exposure), Google the product, check Amazon reviews, go to
the brand's website, abandon cart, get retargeted ad on Facebook, finally buy from Myntra on sale.

ZMOT — Zero Moment of Truth (Google)

ZMOT = the research consumers do ONLINE before making a purchase. 88% of consumers research
online before buying offline.

Example: Before buying a TV from Croma, you've already read 15 reviews, watched 3 YouTube
videos, and compared prices on 4 sites. That's ZMOT.
Digital Influences on CB
• Social proof: Ratings, reviews, likes, shares.
• Personalisation: Amazon's 'Customers also bought' triggers need recognition.
• FOMO: Flash sales, limited time offers, 'Only 2 left in stock'.
• Influencer content: Authentic recommendations feel more trustworthy than ads.
• Dark patterns: Confusing UI designed to make you accidentally buy/subscribe.

SESSION 23 — Consumer Behaviour Models 1: Howard-Sheth & Nicosia

Howard-Sheth Model of Buying Behaviour
This model explains how a buyer processes inputs and arrives at a purchase decision. It has 4 major
components:

1. INPUTS: Stimuli from marketing (price, quality, service, brand) and social environment (family,
peers, social class).
2. INTERNAL VARIABLES: Perceptual constructs (how info is received) and learning constructs (how
decisions are made — motives, attitude, intention).
3. OUTPUTS: Attention, comprehension, attitudes, intention, actual purchase.
4. EXOGENOUS VARIABLES: External factors that affect the process — importance of purchase, time
pressure, financial status, culture.
Simple way to remember: Inputs go in → Internal processing happens → Output (purchase) comes out
→ External factors (context) moderate the whole thing.
Three types of buying behaviour in this model:

• Extensive Problem Solving (EPS): High involvement, unfamiliar product. Example: First car purchase.
• Limited Problem Solving (LPS): Somewhat familiar. Example: Switching shampoo brand.
• Routinised Response Behaviour (RRB): Habitual, automatic. Example: Buying same brand of tea
every week.

Nicosia Model
This model focuses on the RELATIONSHIP between the firm (marketer) and the consumer. It shows
buying as a circular, ongoing process.

4 Fields:

Field 1: Company attributes (the ad/message) + Consumer attributes (predispositions) → Consumer's

ATTITUDE is formed.
Field 2: Consumer SEARCHES for information and evaluates alternatives.
Field 3: Consumer is MOTIVATED to buy → ACT of purchase.
Field 4: FEEDBACK — experience with product feeds back to both consumer (learning) and company
(sales data).
Key insight: The relationship is circular. Every purchase generates feedback that affects future
behaviour and future marketing.

SESSION 24 — Consumer Behaviour Models 2: EKB Model & Bettman's

Model
Engel-Kollat-Blackwell (EKB) Model
A comprehensive model showing the entire decision process. Key components:

• INPUT: Marketing stimuli + non-marketing stimuli (family, culture)

• INFORMATION PROCESSING: Exposure → Attention → Comprehension → Acceptance →
Retention
• DECISION PROCESS: Need recognition → Search → Alternative evaluation → Choice → Outcomes
• VARIABLES INFLUENCING DECISION: Individual (personality, lifestyle) + Social (culture, family)
The EKB model is the most comprehensive 'textbook' model of consumer decision making. Good for
exams — draw it as a flowchart.

Bettman's Information Processing Model

Bettman focused on how consumers PROCESS information while making decisions. Key ideas:

• Limited capacity: The brain has limited processing power — we take shortcuts.
• Decision strategies (HEURISTICS): Simple rules we use to make decisions quickly.
- Price heuristic: 'More expensive = better quality'
- Brand heuristic: 'I'll always buy Samsung'
- Country of origin: 'German cars are reliable'
• Consumers switch strategies depending on how much effort they want to put in.
Example: When buying groceries in a hurry, you use brand heuristic (grab the familiar brand). When
buying a laptop, you use a compensatory strategy (weigh all attributes).

SESSION 25 — Consumer Research Part 1: Methods & Questionnaire

Design
Why Consumer Research?
Marketers can't just assume what consumers want. Research reveals REAL needs, pain points, and
motivations.

Example: When McDonald's launched McAloo Tikki for India, they first researched Indian food
preferences — no beef, vegetarian options. Without research, they'd have failed.

Types of Research
PRIMARY RESEARCH: Data collected fresh for your specific purpose.
SECONDARY RESEARCH: Data already collected by someone else (government reports, industry
studies, published research).

Qualitative Methods
Deep, exploratory, understanding the 'WHY'. Small samples. Non-numerical.

• Focus Groups: 8-12 people discuss product/brand guided by moderator. Good for: testing new
concepts, understanding perceptions.
Example: P&G; holds focus groups with Indian mothers before launching a new Pampers variant.
• In-depth Interviews: One-on-one deep conversations.
• Observation: Watching consumers in natural settings without interfering.
Example: IKEA sends researchers to observe how Indian families actually use furniture at home.
 • Projective Techniques: Consumers project feelings onto ambiguous stimuli (word association,
sentence completion).

Quantitative Methods
Numerical data, large samples, statistical analysis, good for 'HOW MANY' and 'HOW MUCH'.

• Surveys/Questionnaires: Most common. Online or offline.

• Experiments: Test cause and effect. Example: A/B testing two versions of a webpage.
• Observation with measurement: Eye-tracking in stores to measure where people look.

Questionnaire Design — Key Principles

• Clear, simple language — no jargon.
• Start with easy, non-threatening questions.
• Avoid leading questions ('Don't you think Amul is the best?').
• Use Likert scales (Strongly Agree to Strongly Disagree) for attitudes.
• Keep it short — long surveys have low completion rates.

SESSION 26 — Consumer Research Part 2: Digital Methods, Social

Listening & AI
Netnography
Netnography = ethnography conducted online. Observing consumer conversations, reviews, and
communities on the internet to understand behaviour.

Example: A food brand monitors Reddit's r/IndianFood, Quora answers, and food blogs to understand
what Indian consumers really think about their product.

Social Listening
Social listening = using tools to track what people are saying about your brand, industry, and competitors
on social media in real-time.

Tools: Sprinklr, Brandwatch, Hootsuite Insights, Talkwalker

Example: After a Bollywood actor wears a particular brand's shoes, the brand sees a 300% spike in
social mentions → immediately ramps up production.

Digital Research Methods vs Traditional

Digital advantages: faster, cheaper, larger scale, real-time data, access to passive behavioural data
(what people DO vs what they SAY).

Traditional advantages: deeper insights, body language and emotions captured, better for complex
emotional topics.

Big Data Analytics in Marketing

Big data = massive datasets from transactions, social media, app usage, GPS, etc. When analysed,
reveal powerful consumer patterns.

Example: Amazon uses purchase history, browsing data, and cart data of millions of users to predict
what you'll want to buy next. Their recommendation engine drives 35% of total revenue.

AI in Consumer Research
 • Sentiment analysis: AI reads thousands of reviews and classifies them as positive/negative/neutral.
• Chatbot conversations: Analysed to understand common customer pain points.
• Predictive analytics: Predict which customers will churn, who will buy next.
Example: Flipkart uses AI to predict demand during Big Billion Days and stock the right products in the
right warehouses.

SESSION 27 — Mining Consumer Insights & Ethics in Research

From Data to Insight
Data alone is useless. The magic is in the INSIGHT — the 'so what' from the data.

Data → Information → Insight → Marketing Action

Example: Data shows 70% of female customers who buy moisturiser also buy sunscreen. Insight:
They're skincare-conscious. Action: Bundle moisturiser + sunscreen, train salespeople to recommend
together.

Tools for Mining Insights

• Cross-tabulation: Finding patterns by comparing variables.
• Regression analysis: Finding cause-effect relationships.
• Cluster analysis: Grouping similar consumers.
• Conjoint analysis: Understanding trade-offs consumers make.
• Sentiment analysis: AI-powered analysis of text.

Ethical Considerations in Consumer Research

• Informed consent: Consumers must know they're being researched.
• Privacy: Personal data must be protected.
• No deception: Don't mislead respondents about purpose.
• Data security: Research data must be kept secure.

Digital Personal Data Protection Act (DPDPA) 2023 — India

India's new data privacy law (2023) that governs how companies collect, store, and use personal data.

Key requirements:

• CONSENT: Must get explicit consent before collecting data.

• PURPOSE LIMITATION: Data can only be used for the purpose it was collected for.
• DATA MINIMISATION: Collect only the data you actually need.
• RIGHT TO ERASE: Consumers can ask companies to delete their data.
• DATA PRINCIPAL: The consumer is the 'data principal' — they own their own data.
Example: A food delivery app can collect your address to deliver food (valid purpose). They CANNOT
sell your address to a real estate company without fresh consent.

SESSIONS 28 & 29 — Case Studies and Group Presentations

These sessions involve real-world business case analysis and presentations. Apply the consumer
research methods, decision-making models, and behaviour frameworks studied in this module to real
companies and scenarios.
MODULE 5: Practitioners' Approach — CB for Marketers (Sessions
30–36)

SESSION 30 — Communication Strategies for Marketers

How Marketers Communicate to Influence Consumers
Communication is how marketers send messages to consumers to shape perception, attitude, and
behaviour.

The Communication Process

Sender (Brand) → Message → Encoding → Channel (TV/Social/Print) → Decoding → Receiver
(Consumer) → Feedback

Noise can disrupt at any stage (too many competing messages, wrong channel, unclear message).

Key Communication Strategies

1. EMOTIONAL APPEALS: Target feelings — fear, love, humour, nostalgia.
Example: Surf Excel 'Daag achhe hain' — emotional appeal of childhood freedom and motherly love.
2. RATIONAL APPEALS: Target logic — facts, features, data.
Example: Colgate '12 hours protection' — specific, factual claim.
3. FEAR APPEALS: Negative consequences of NOT buying.
Example: LIC insurance ads showing family's insecurity without coverage.
4. HUMOUR: Makes ads memorable and likeable.
Example: Amul's topical humorous hoardings. Everyone looks forward to them.
5. CELEBRITY ENDORSEMENT: Transfer of celebrity's associations to brand.
Example: Ranveer Singh for Manyavar — youthful, celebratory, aspirational.

Elaboration Likelihood Model (ELM)

Two routes to persuasion:

• CENTRAL ROUTE: Consumer is motivated and able → processes arguments carefully → rational
evaluation. Example: Detailed comparison ad for a laptop.
• PERIPHERAL ROUTE: Low motivation/ability → persuaded by simple cues (celebrity, music,
packaging). Example: Fairness cream ad with no real argument, just beautiful person.
High involvement products: Use central route. Low involvement: Use peripheral route.

SESSION 31 — Ethics, Social Responsibility & Consumer Wellbeing

Marketing Ethics
Ethics = doing what is RIGHT, not just what is LEGAL. Marketers face ethical dilemmas constantly.

Common Ethical Issues in Marketing

• FALSE/MISLEADING ADVERTISING: Claims that are technically true but misleading.
 Example: '0% trans fat' product still has saturated fat. Technically true but consumers think it's healthy.
• TARGETING VULNERABLE GROUPS: Marketing junk food, tobacco, or gambling to children or
addicts.
India example: CBSE crackdown on coaching institutes that promised 'top rank guarantee' —
misleading students and parents.
• GREENWASHING: Claiming environmental benefits that don't exist.
Example: A brand printing 'eco-friendly' on plastic packaging that isn't recyclable.
• DARK PATTERNS: UI/UX designed to trick users into unwanted purchases or subscriptions.
• PRICE GOUGING: Raising prices unreasonably during crises (COVID-era sanitiser prices).

Consumer Wellbeing
Marketers have a RESPONSIBILITY to consider consumer wellbeing, not just short-term sales.

Example: Tobacco companies know cigarettes kill, but continue marketing. Is maximising shareholder
value worth consumer health damage?
Societal marketing concept: Companies should consider long-term consumer and societal welfare, not
just immediate needs.

Example: Maggi's 2015 lead contamination crisis — Nestlé had to choose between protecting brand
(by hiding data) vs consumer safety (by withdrawing product). They withdrew — right but costly choice.

Market Regulation in India

• ASCI (Advertising Standards Council of India): Self-regulatory body for ad standards.
• FSSAI: Food Safety and Standards Authority — regulates food marketing claims.
• Consumer Protection Act 2019: Gives consumers right to seek redressal for misleading ads.
• DPDPA 2023: Protects consumer data privacy.

SESSION 32 — Segmentation, Targeting & Positioning (STP)

Why STP?
You've now understood the consumer. Now you must use that knowledge to SELL to them. You can't
sell everything to everyone. STP helps you focus.

Step 1: Market Segmentation

Segmentation = dividing the total market into distinct groups (segments) of consumers who share similar
needs, characteristics, or behaviours.

Types of segmentation:

• DEMOGRAPHIC: Age, gender, income, education. Example: Horlicks for kids, Horlicks Women for
women.
• GEOGRAPHIC: Location-based. Example: Selling AC units in summer-heavy markets (Rajasthan,
Gujarat).
• PSYCHOGRAPHIC: Lifestyle, personality, values. Example: [Link] targeting health-conscious
millennials.
• BEHAVIOURAL: Purchase occasion, usage rate, loyalty. Example: Heavy vs light vs non-users of a
brand.

Step 2: Targeting
 Targeting = choosing WHICH segment(s) to focus on.

• MASS MARKETING: Same product for everyone. Example: Amul milk.

• DIFFERENTIATED: Different products for different segments. Example: HUL (Dove, Lux, Lifebuoy for
different segments).
• CONCENTRATED/NICHE: One specific segment. Example: Only Bikes targeting two-wheeler
buyers.
• MICRO-TARGETING: Hyper-personalised, individual-level. Example: Netflix recommendation
algorithm.

Step 3: Positioning
Positioning = crafting a clear, distinctive, desirable place for your brand in the consumer's mind.

POSITIONING STATEMENT formula: 'For [target segment], [brand] is the [category] that provides [key
benefit] because [reason to believe].'

Example: For health-conscious young Indians, Oats is the breakfast cereal that provides sustained
energy because it's made with 100% whole grain oats.
Types of positioning:

• Attribute: Volvo = Safety.

• Benefit: Head & Shoulders = Dandruff-free.
• User: Harley-Davidson = For rebels and freedom-seekers.
• Against competitor: 7Up = 'The Uncola'.
• Value/Price: D-Mart = 'Ready for beautiful living' (everyday low price).

SESSION 33 — Contemporary Topics: Hyperconsumption, Personalisation

& Consumer Trends
Hyperconsumption
Hyperconsumption = excessive buying beyond what you need, driven by desire for experiences, status,
or constant novelty.

Example: Buying a new phone every year even when your current one works fine. Fast fashion —
buying clothes constantly due to trends.
Problem: Hyperconsumption leads to environmental damage, debt, reduced wellbeing. Sustainable
brands (like The Souled Store's 'wear it more' campaign) are pushing back.

Hyper-Personalisation
Using real-time data and AI to deliver individualised messages, products, and experiences to each
consumer.

Example: Spotify's 'Wrapped' — tells each user their personalised music story. Deeply personal,
massively shared. Perfect hyper-personalisation.
Example: Amazon shows you different homepage to what your friend sees, based on your unique
browsing/purchase history.

Key Consumer Trends in India 2025

• QUICK COMMERCE (q-commerce): 10-minute delivery (Blinkit, Swiggy Instamart, Zepto). Changed
expectations — consumer now wants EVERYTHING instantly.
 • PREMIUMISATION: Middle India upgrading to premium products. Example: Buying premium
branded snacks, better coffee, premium smartphones.
• CONSCIOUS CONSUMERISM: People buying based on values — sustainability, local, ethical.
Example: Buying Khadi, supporting local artisans.
• EXPERIENTIAL CONSUMPTION: Preferring experiences over objects. Concerts, travel, dining
experiences over gadgets.
• BHARAT vs INDIA: Tier 2/3 cities emerging as growth engines. Very different preferences, price
sensitivity, and digital behaviour.
• HEALTH AND WELLNESS: Post-COVID India obsessed with immunity, fitness, mental health. Huge
growth in health foods, fitness apps.

McKinsey State of Consumer 2025

Global trends: Consumers are more value-conscious, digital-native, experience-hungry, and ethically
aware. They expect personalisation AND privacy simultaneously — a major tension for marketers.

SESSIONS 34 & 35 — Capstone Project: [Link] Live Business Challenge

These sessions involve a LIVE business challenge from [Link]. Students present their consumer
research findings, segmentation analysis, and marketing strategy recommendations to industry leaders.
This is the final capstone — apply EVERYTHING learned in the course.

How to prepare:
• Conduct primary + secondary research on [Link]'s target consumers.
• Use CB frameworks: STP, consumer journey map, attitude models, perception analysis.
• Identify consumer insight (the big WHY behind behaviour).
• Recommend a marketing strategy backed by data.
• Present professionally to industry leaders — they give real feedback.

SESSION 36 — Doubt Clearing, Recap & Career Roadmap

Final session — revision of all modules, doubt clearing, and discussion on career paths in consumer
behaviour: market research analyst, brand manager, UX researcher, consumer insights lead, digital
marketing strategist.

QUICK REVISION: Key Theories & Concepts at a Glance

Motivation Theories
• Maslow: 5 levels — Physiological → Safety → Social → Esteem → Self-actualisation
• McClelland: Achievement, Power, Affiliation
• Motives: Utilitarian (practical), Hedonic (pleasure), Normative (social)

Perception
• 3 stages: Exposure → Attention → Interpretation
 • JND: minimum change needed to notice difference (Weber's Law)
• Positive JND (make improvement noticeable) vs Negative JND (hide reduction)
• Gestalt: Figure-ground, Grouping, Closure

Learning
• Classical conditioning: Pair neutral with positive → neutral gets positive response (Pavlov)
• Operant conditioning: Reward = repeat behaviour, Punishment = avoid
• Cognitive learning: Active thinking and problem solving

Attitude
• ABC Model: Affective (feel) + Behavioral (intend) + Cognitive (believe)
• Cognitive Dissonance: Post-purchase doubt
• Fishbein: Attitude = sum of (belief × importance) for each attribute

Decision Making
• 5 stages: Need recognition → Info search → Evaluation → Purchase → Post-purchase
• Types: Cognitive, Habitual, Affective, Contextual
• Models: Howard-Sheth, Nicosia, EKB, Bettman

Research Methods
• Qualitative: Focus groups, interviews, observation, netnography
• Quantitative: Surveys, experiments, big data
• DPDPA 2023: India's data privacy law — consent, purpose limitation, right to erase

STP
• Segmentation: Demographic, Geographic, Psychographic, Behavioural
• Targeting: Mass, Differentiated, Concentrated, Micro
• Positioning: Place brand meaningfully in consumer's mind

Key India Examples to Remember

• UPI = Diffusion of Innovation (Innovators → Laggards)
• Amul = Sincerity brand personality + Classical conditioning (jingle)
• Mamaearth = D2C, safety need, millennial values
• IKEA India = Cross-cultural adaptation
• Zomato = eWOM, social proof, digital decision making
• Maggi = Classical conditioning + cognitive dissonance in 2015 crisis
• Blinkit/Instamart = Quick commerce, instant gratification trend

All the Best for Your Exams!

Consumer Behaviour — MBA 2024-26 | Prof. Nitika Sharma | IILM