Consumer Behavior
© Dr. Pushpendra Khandelwal
Know the Consumer (Questions)
(Understanding Consumer)
• Why do the consumers buy your product / Service?
• Why do these consumer buy your brand / service not the competitor's brand ?
• How do consumer perceive brand of your product / service, which fulfills their need. ?
• Are they satisfy or dissatisfy with your product / Service ?
• How are emotional and rational feelings influence their buying behavior ?
• What are those physical activities, which are involved in buying process.
© Dr. Pushpendra Khandelwal
Nature of Consumer Behavior
• Consumer Behavior can be Defines as….
“ The Decision process and physical activities engaged in evaluating,
acquiring, using or disposing of goods and services”
Psychological
Physical Behavior
Behavior
© Dr. Pushpendra Khandelwal
Pattern of viewing the print advertisements
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© Dr. Pushpendra Khandelwal
([Link])
Pattern of viewing the Digital advertisements
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Nature of Consumer Behavior
• The Definition raises a few questions in our mind……….
• What or who are our consumers.
• What is the decision process they are engaged in.
© Dr. Pushpendra Khandelwal
Consumer v/s Costumer
• There is a situations where distinction between consumer and
costumer occurs
• When customer is not the actual user of the product / service or is the only
one of the many user.
© Dr. Pushpendra Khandelwal
The Definition (Consumer Behavior)
Any person who is physically and psychologically engaged in an activity
of evaluation, accruing, using or disposing of goods and services”
© Dr. Pushpendra Khandelwal
The Rules of Consumer Behavior
• Initiator :- Any person who determines that some need or want is not being met.
• Influencer :- The person who intentionally / unintentionally influence the decision
to buy or the actual purchase and or use of product or services.
• Buyer / Customer :- the person who actually makes the purchase.
• User / Consumer :- The person who actually uses or consume the product o
service.
© Dr. Pushpendra Khandelwal
Most Important
Decision Making step in buying
Process
Process
Role of
Advertisement
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([Link])
Consumer Decision Making
Process
© Dr. Pushpendra Khandelwal
([Link])
© Dr. Pushpendra Khandelwal
([Link])
© Dr. Pushpendra Khandelwal
([Link])
Factors (Stimulus) affecting Buyers Behavior
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Internal Environment
• Motivation and Involvement
• Attitude
• Personality and Self-Concept
• Learning and Memory
• Information Processing
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Motivation and Involvement
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Motivation and Involvement
Having Food
• Type of motivation
1. Physiological
2. Psychological
Dine out in 5 Star
Hotel
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Involvement
The level of involvement reflects how personally important the product or service to be purchased is to
the consumer, how interested the consumer is in consuming a product and how much information he
wants before making a purchase decision. While making such purchases, consumers display high or
low involvement.
© Dr. Pushpendra Khandelwal
Attitudes
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Attitudes
Our learned predisposition towards objects, people and events
Self Service or à la carte Service by Others or table d'hôte
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Personality and Self-concept
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Personality and Self-concept
© Dr. Pushpendra Khandelwal
Personality and Self-concept
Personality is the sum total of the unique individual characteristics
that make each one of us what we are.
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Personality and Self-concept
© Dr. Pushpendra Khandelwal
Personality and Self-concept
© Dr. Pushpendra Khandelwal
Learning and Memory
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Learning and Memory
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Learning and Memory
© Dr. Pushpendra Khandelwal
Learning and Memory (Saffola)
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Learning and Memory (Fortune)
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Learning and Memory
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Learning and Memory
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Learning and Memory (Coca Cola)
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Information Processing
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Information Processing
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Information Processing
© Dr. Pushpendra Khandelwal
Information Processing
© Dr. Pushpendra Khandelwal
Information Processing
© Dr. Pushpendra Khandelwal
External Environment
• Cultural Influence
• Sub-Cultural influence
• Social Class Influence
• Social Group Influence
• Family Influence
• Personal Influence
• Other Influence
© Dr. Pushpendra Khandelwal
Cultural Influence
“The set of basic values, perception, wants and behavior of society , family and other
important institution”
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Cultural Influence (Cadbury)
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Cultural Influence (Paper Boat)
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Sub-Cultural influence
“A group of people with shared value system based on common life experience and situation”
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Sub-Cultural influence
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Social Class Influence
“Relatively permanent and ordered division in a society whose members share similar
value, interest and behavior”
Tata Nano
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Social Class Influence
“Relatively permanent and ordered division in a society whose members share similar
value, interest and behavior”
© Dr. Pushpendra Khandelwal
Social Class Influence
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Social Group Influence
“Two or more people who interact to accomplish individual or mutual goals”
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Family Influence
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Personal Influence
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Personal Influence
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Other Influence
© Dr. Pushpendra Khandelwal
Consumer Black Box Model
A model used in the study of the buying behaviour of consumers; the model assumes that what takes place in the
consumer's 'black box' of the consumer's mind can be inferred from a study of observed stimuli and responses.
Internal Factors
Buying Process
External Factors
© Dr. Pushpendra Khandelwal
([Link])
Stimuli Buyer’s Thinking Process Buyer’s Response
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([Link])
Type of Consumer
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Type of Consumer
• Seasonal Consumers
• Personal Consumers
• Organizational Consumer
• Impulse Buyers
• Need Based Consumers
• Discount Driven Consumers
• Habitual Consumer
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Seasonal Consumers
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Seasonal Consumers
Source : Economic Review 2016, State
Planning Board
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Organizational Consumer
(Institutional Buyer)
Organizational consumers purchase products for organizations, governments or businesses, They
often buy in bulk and may place long-term recurring orders.
© Dr. Pushpendra Khandelwal
Organizational Consumer
(Institutional Buyer)
© Dr. Pushpendra Khandelwal
([Link])
Organizational Consumer
(Institutional Buyer)
© Dr. Pushpendra Khandelwal
Personal Consumers
These types of consumers are individual consumers who purchase goods for the
sole purpose of personal, family or household use.
• Going to the supermarket and shopping for goods which are to be used in the
house
• Purchasing a car that you intend to use personally
• Purchasing clothes for personal use from a clothing mall
• Purchasing a mobile phone for personal communication.
© Dr. Pushpendra Khandelwal
Impulse Buyers
Impulse buyers are consumers who make unplanned buying decisions.
© Dr. Pushpendra Khandelwal
Need Based Consumers
Need based consumers are those types of consumers who buy goods and
services when they need them and not any other time.
© Dr. Pushpendra Khandelwal
Discount Driven Consumers
Discount driven consumers are the type of consumers who purchase goods and services primarily
for the discounts on offer.
© Dr. Pushpendra Khandelwal
Habitual Consumer
Habitual consumers are those who feel compelled to use certain
brands or types of goods
© Dr. Pushpendra Khandelwal