Consumer Behavior Insights and Trends
Consumer Behavior Insights and Trends
1. Need recognition: The buying process typically begins with the recognition of a need
or a problem. The consumer realizes that there is a discrepancy between their
current state and desired state.
1. Global reach and expanded market: The Internet allows businesses to transcend
geographical boundaries and reach a global audience. It provides an opportunity to
expand customer base and target specific markets that would have been otherwise
inaccessible. With e-commerce platforms, businesses can sell products or services
online, enabling 24/7 availability and accessibility.
1. Protection against unfair trade practices: The act prohibits deceptive practices, false
advertising, and misleading information. It aims to prevent businesses from engaging
in practices that could harm consumers or exploit their lack of knowledge.
1. E-commerce and online shopping: With the rise of the Internet and mobile
technology, e-commerce has become increasingly popular. Consumers can now shop
online, compare prices, read reviews, and make purchases from the comfort of their
homes. The convenience and wide variety of choices have made online shopping a
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Q2) Explain family life cycle in detail and how it affects the purchasing decision.
The family life cycle refers to the progression of stages that individuals and families go
through as they age and undergo changes in their family structure, lifestyle, and needs. Each
stage of the family life cycle is characterized by different demographics, psychographics, and
purchasing behaviors. Understanding the family life cycle is important for marketers as it
helps them tailor their marketing strategies to effectively target consumers at different
stages. Here is a detailed explanation of the family life cycle and its impact on purchasing
decisions:
1. Bachelor stage: This stage typically includes young adults who are single, have
recently entered the workforce, and are establishing their independence. They often
focus on personal and career development, and their purchasing decisions are driven
by their own needs and preferences. They may spend on experiences, entertainment,
fashion, and technology. Marketers targeting this stage often emphasize individuality,
affordability, and trends.
2. Newly married couples: This stage includes couples who have recently married or
entered into a long-term committed relationship. They may be starting a new
household, and their purchasing decisions revolve around setting up their home.
They are likely to spend on furniture, appliances, home decor, and other household
necessities. Marketers targeting this stage often focus on products that cater to
newlyweds, home improvement, and building a shared life together.
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3. Full nest stage with young children: This stage typically involves couples with young
children living at home. They have additional responsibilities and expenses related to
raising and caring for their children. Their purchasing decisions are influenced by the
needs of their children, including baby products, toys, clothing, educational
materials, and healthcare. Marketers targeting this stage often emphasize
familyoriented messaging, safety, convenience, and value for money.
4. Full nest stage with teenage children: At this stage, the children are older and more
independent. Families may face increased expenses related to education,
extracurricular activities, transportation, and technology for their teenagers.
Purchasing decisions may include items such as electronics, school supplies, sports
equipment, and clothing. Marketers targeting this stage often focus on products and
services that cater to the evolving needs and preferences of teenagers and
emphasize convenience, quality, and value.
5. Empty nest stage: In the empty nest stage, couples have typically seen their children
move out of the home. They may have more disposable income and fewer financial
obligations related to their children. Purchasing decisions may include travel, leisure
activities, home renovations, downsizing, and investments. Marketers targeting this
stage often emphasize lifestyle, leisure, and experiences, as well as products and
services that cater to the changing needs of older adults.
6. Aging stage: This stage includes older adults who may be retired or nearing
retirement. Their purchasing decisions often revolve around healthcare, retirement
planning, housing options, travel, and leisure activities. Marketers targeting this stage
often focus on products and services that address the health and well-being of older
adults, financial planning, senior living options, and leisure activities suitable for their
age group.
It is important to note that these stages are not rigid and can overlap or vary depending on
cultural and individual factors. Additionally, individuals may experience non-traditional
family structures or skip certain stages altogether. Nevertheless, understanding the family
life cycle provides valuable insights into consumer behaviors, preferences, and needs,
allowing marketers to develop targeted strategies and effectively communicate the value of
their products or services at each stage.
b) What is the difference between customer and consumer? Explain importance of
reference group.
Customer and consumer are two distinct roles in the context of marketing. The key
differences between them are as follows:
Customer: A customer is an individual or entity that purchases a product or service from a
business. They are the ones who engage in the transaction and provide monetary
compensation in exchange for the product or service. Customers can be individuals,
organizations, or even other businesses. They are directly involved in the purchasing
decision and have the power to choose which products or services to buy.
Consumer: A consumer, on the other hand, is the person or entity who ultimately uses or
consumes the product or service. They may or may not be the same as the customer. The
consumer is the end-user, the one who benefits from the product or service, and derives
value or satisfaction from its usage. For example, a parent may be the customer who buys a
toy for their child, but the child is the consumer who actually plays with and enjoys the toy.
Importance of Reference Group:
A reference group refers to a group of people who serve as a source of comparison,
influence, and reference for an individual's attitudes, beliefs, values, and behavior. These
groups can have a significant impact on consumer decision-making and purchasing behavior.
Here are a few reasons why reference groups are important:
1. Social influence: Reference groups play a crucial role in shaping consumer behavior
through social influence. Individuals often seek social acceptance and conformity by
aligning their attitudes and behaviors with the norms and values of their reference
groups. They may adopt the opinions, preferences, and purchasing patterns of their
reference group members.
their reference groups can enhance their perception of a product's value, quality, and
desirability. Conversely, negative references can create doubts or reduce their
willingness to try or purchase a product.
Q3) Discuss differences beetween store and non store purchasing process.
The purchasing process can vary depending on whether it occurs in a physical store or
through non-store channels such as online shopping, phone orders, or catalogs. Here are the
key differences between the store and non-store purchasing processes:
Store Purchasing Process:
3. Immediate gratification: With store purchases, customers can obtain the product
immediately after making the purchase. They don't have to wait for shipping or
delivery, which can lead to instant gratification.
4. Personal interaction: In-store purchases allow for face-to-face interactions with sales
staff who can provide assistance, answer questions, and offer personalized
recommendations. This personal touch can enhance the shopping experience and
help customers make informed decisions.
5. Impulse buying: The physical presence in a store environment can lead to impulse
buying. Customers may be enticed by attractive product displays, promotions, or
sales pitches, resulting in unplanned purchases.
3. Delayed gratification: Non-store purchases often involve a waiting period for product
delivery. Customers need to wait for shipping or processing, which means they may
experience delayed gratification compared to in-store purchases.
1. Cognitive learning: This type of learning involves the acquisition of knowledge and
understanding through thinking, reasoning, and mental processes. It includes
learning through problem-solving, memory, perception, and information processing.
Cognitive learning plays a role in understanding product features, making purchase
decisions, and evaluating alternatives.
4. Social learning: Social learning involves learning from others through observation,
imitation, and modeling. Consumers learn by observing the behaviors and
experiences of reference groups, family members, friends, and influencers. Social
learning can influence preferences, attitudes, and purchase decisions through the
influence of others.
Consumer learning is essential for marketers as it helps them understand how consumers
acquire information, make decisions, and form attitudes toward products or brands. By
understanding the learning process, marketers can design effective communication
strategies, provide relevant information, and create positive experiences that facilitate
consumer learning and influence behavior.
b) Consumer attitude: Consumer attitude refers to an individual's overall evaluation,
perception, and feelings towards a product, brand, service, or marketing message. Attitudes
are shaped by a combination of cognitive, affective, and behavioral components. Here are
the key components of consumer attitudes:
2. Affective component: The affective component refers to the emotional and affective
responses that individuals associate with a product or brand. It involves feelings,
likes, dislikes, and emotions towards the product. Affective components of attitude
influence consumers' emotional attachment, brand loyalty, and their overall
satisfaction or dissatisfaction with the product.
Q4) What is attitude? What are the functions of it? Does attitude helps people in order to
have satisfaction? Explain.
3. Cognitive dissonance: Attitudes can help individuals cope with cognitive dissonance,
which is the discomfort experienced when there is a mismatch between attitudes
and behaviors. If someone has a positive attitude towards a product but experiences
dissatisfaction after the purchase, they may adjust their attitude to reduce cognitive
dissonance and justify their decision.
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Overall, attitudes can influence satisfaction by shaping expectations, guiding perception, and
providing a framework for evaluating experiences. Positive attitudes can lead to higher
satisfaction if they align with actual experiences, while negative attitudes can result in lower
satisfaction. Marketers and businesses strive to understand consumer attitudes and manage
them effectively to enhance satisfaction levels and foster long-term customer loyalty.
a) Consumer Beliefs: Consumer beliefs are the subjective thoughts and perceptions
that individuals hold about specific objects, products, brands, or concepts. They represent
an individual's understanding or knowledge about something based on information,
experiences, and social influences. Consumer beliefs can be factual or based on subjective
interpretations. Here are a few key points about consumer beliefs:
• Factual beliefs: Factual beliefs are based on objective information and evidence. For
example, a consumer may believe that a certain brand of smartphones has a
highresolution camera based on technical specifications and reviews.
• Inferential beliefs: Inferential beliefs are assumptions or conclusions drawn from
available information. They involve making inferences based on limited or indirect
evidence. For example, a consumer may believe that a brand of organic food is
healthier based on general assumptions about organic farming methods.
• Evaluative beliefs: Evaluative beliefs involve the subjective evaluation or judgment of
a product, brand, or concept. These beliefs are influenced by personal values,
preferences, and attitudes. For example, a consumer may believe that a luxury brand
represents prestige and status based on their personal values and societal influences.
Consumer beliefs play a crucial role in shaping attitudes, purchase decisions, and behaviors.
Marketers often aim to influence and shape consumer beliefs through advertising, product
claims, endorsements, and other marketing strategies.
b) Feelings: Feelings, also known as emotions, are subjective experiences that involve a
combination of physiological and psychological responses to stimuli or situations. They can
be positive, negative, or neutral and play a significant role in consumer behavior. Here are a
few key points about feelings in the context of consumer behavior:
• Emotional responses: Consumers often experience emotional responses when
interacting with products, brands, or marketing messages. These responses can
include joy, excitement, anger, sadness, fear, or surprise. Emotional responses can be
triggered by factors such as product design, brand image, advertising content, or
customer service experiences.
• Emotional branding: Marketers leverage emotions to create emotional connections
with consumers through emotional branding strategies. Emotional branding aims to
evoke specific emotions associated with the brand, such as happiness, nostalgia, or
empowerment. Emotional connections can lead to stronger brand loyalty and
positive associations with the brand.
• Influence on decision-making: Feelings can significantly influence consumer
decisionmaking. Emotions can shape preferences, alter perceived value, and impact
the evaluation of alternatives. For example, a consumer's positive emotional
response to
a product may lead to a higher willingness to pay or a stronger desire to make a
purchase.
Understanding consumer feelings and emotions is important for marketers as it helps them
create impactful marketing campaigns, design engaging customer experiences, and develop
products or services that resonate with consumers on an emotional level.
c) Changing Attitude: Changing attitudes refers to the process of modifying or altering
an individual's overall evaluation, perception, or feelings towards a particular object,
product, brand, or concept. Attitudes are not fixed and can change over time due to various
factors, such as new information, experiences, social influences, or personal growth. Here
are a few key points about changing attitudes:
• Cognitive dissonance: When individuals experience a mismatch between their
attitudes and behaviors, cognitive dissonance occurs. This discomfort can motivate
individuals to change their attitudes to align with their behavior or vice versa.
Marketers can leverage cognitive dissonance to influence attitude change by
providing information or experiences that reduce the perceived inconsistency.
• Persuasion and communication: Marketers often use persuasive communication
techniques to change attitudes. This can involve presenting compelling arguments,
providing evidence, using influential spokespersons, or appealing to emotions.
Effective communication can reshape or influence attitudes by presenting new
information or altering perceptions.
• Social influences: Social influences, such as peer pressure, social norms, or cultural
values, can play a significant role in attitude change. Individuals may adjust their
attitudes to conform to the beliefs and behaviors of their reference groups.
Marketers can leverage social influences by highlighting the acceptance or popularity
of a product among relevant reference groups.
• Personal experiences: Personal experiences can be powerful drivers of attitude
change. Positive or negative experiences with a product or brand can lead to shifts in
attitudes. Marketers can focus on creating positive experiences, addressing concerns,
and managing customer interactions to facilitate attitude change.
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Cultural values and norms: Culture shapes individuals' values and norms, which serve as
guidelines for behavior and decision-making. Cultural values reflect what a society
considers important and desirable, such as individualism, collectivism, materialism,
or environmental sustainability. Cultural norms define acceptable behavior and
influence consumption patterns, product preferences, and brand choices.
• Cultural influences on attitudes: Culture can shape attitudes towards specific
products, brands, or marketing messages. Attitudes are influenced by cultural beliefs,
traditions, and societal expectations. For example, cultural values related to health
and wellness may shape attitudes towards organic or natural products.
• Cross-cultural differences: Cultures vary across countries, regions, and even
subcultures within a society. Marketers must recognize and understand cross-cultural
differences to develop effective marketing strategies. Different cultures may have
distinct preferences, communication styles, and attitudes towards brands or
products. Adapting marketing efforts to align with cultural values and norms is crucial
for success in diverse markets.
• Cultural symbols and meanings: Culture provides a framework of symbols and
meanings that influence consumer behavior. Certain symbols may hold specific
cultural significance and influence attitudes towards products. Marketers often use
cultural symbols and meanings to communicate brand values, create associations,
and appeal to consumers' cultural identities.
Culture is deeply ingrained in individuals' identities and influences their attitudes, behaviors,
and purchasing decisions. Marketers need to conduct cultural analysis and develop culturally
sensitive strategies to ensure their products, messaging, and brand positioning resonate
with the cultural context of their target market. By understanding and respecting cultural
nuances, marketers can build stronger connections with consumers and enhance brand
appeal.
Q5) Explain Howard Sheth model with diagram.
The Howard-Sheth model, also known as the Howard-Sheth theory of buyer behavior, is a
psychological model that explains consumer behavior by considering various factors that
influence the decision-making process. Developed by John Howard and Jagdish Sheth in
1969, the model emphasizes the interaction between the consumer's psychological and
social factors, as well as the marketing stimuli that impact consumer behavior. Although the
original model does not include a specific diagram, I can explain the key components and
relationships of the Howard-Sheth model.
1. Input variables: These are the external influences that impact consumer behavior.
They include marketing stimuli and other external factors that shape consumers'
decision-making process. Marketing stimuli can be further classified into four
categories:
• Product: This includes the attributes, features, quality, and branding of the product or
service.
• Price: The price of the product or service, including discounts, promotions, and
perceived value.
• Promotion: The marketing communication efforts, such as advertising, personal
selling, sales promotion, and public relations.
• Place: The distribution channels and accessibility of the product or service.
In addition to marketing stimuli, input variables also consider social and environmental
influences, such as cultural norms, reference groups, family, and situational factors.
2. Psychological processes: These processes occur within the mind of the consumer and
are influenced by the input variables. The psychological processes consist of four key
elements:
• Perception: How consumers perceive and interpret marketing stimuli based on their
individual experiences, needs, and expectations.
• Learning: How consumers acquire knowledge and experience about the product or
service through exposure, comprehension, and retention.
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• Motivation: The internal drives and needs that influence consumer behavior and
decision-making. This includes needs such as physiological, safety, social, esteem, and
self-actualization.
• Attitude formation and change: How attitudes are developed and modified based on
the consumer's beliefs, values, and emotions towards the product or service.
These psychological processes interact and influence each other, forming the basis for
consumer decision-making.
Engel Blackwell - Miniard model classifies behaviour into 4 sections, viz, Input. Information
processing, Decision process and variable in Huening decision process. Explain in details.
1. Input: The Input section of the EKB model represents the external factors that
influence consumer behavior. These factors include the consumer's sociocultural
environment, marketing efforts, and the consumer's previous experiences. The Input
section can be further divided into three components:
• Stimuli: This component includes marketing stimuli, such as advertising, personal
selling, packaging, price, and distribution. These stimuli are designed to capture the
attention of consumers and influence their decision-making process.
• Individual factors: Individual factors refer to the personal characteristics of the
consumer, including demographics (age, gender, income), psychographics
(personality, lifestyle), and socioeconomic status. These factors shape the consumer's
perception and interpretation of marketing stimuli.
• Environmental factors: Environmental factors encompass the sociocultural context in
which the consumer operates. This includes cultural norms, social class, reference
groups, family influence, and situational factors. Environmental factors shape the
consumer's attitudes, values, and beliefs, which in turn influence their
decisionmaking process.
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2. Information Processing: The Information Processing section of the EKB model focuses
on how consumers acquire, process, and interpret information in the decisionmaking
process. It includes three key components:
• Exposure: Consumers are exposed to various stimuli through advertising, social
media, word-of-mouth, and other sources. Exposure determines which stimuli
consumers are aware of and pay attention to.
• Attention and Perception: Attention refers to the extent to which consumers allocate
their mental resources to process specific stimuli. Perception involves interpreting
and making sense of the stimuli based on previous experiences, attitudes, and
beliefs.
• Comprehension and Retention: Comprehension refers to how well consumers
understand the information they have been exposed to. Retention refers to the
ability to remember and recall information at a later stage when needed in the
decision-making process.
3. Decision Process: The Decision Process section of the EKB model describes the steps
consumers go through when making a purchase decision. It consists of five stages:
4. Variables in the Huening Decision Process: The Variables in the Huening Decision
Process section of the EKB model represent the factors that influence the
decisionmaking process and outcomes. It includes three variables:
• Product: Product-related variables such as product attributes, brand reputation, and
perceived quality play a significant role in consumer decision-making.
• Consumer: Consumer-related variables include individual characteristics, attitudes,
preferences, and motivations. These variables shape the consumer's decision-making
process and their responses to marketing stimuli.
• Decision: Decision-related variables encompass the decision-making context,
situational factors, and the specific characteristics of the decision itself. These
variables influence the consumer's choice and the outcome of the decision-making
process.
Overall, the EKB model provides a comprehensive framework for understanding the complex
process of consumer decision-making. It emphasizes the interplay between external
influences, information processing, and the decision-making process, while also considering
the specific variables that impact consumer behavior. The model assists marketers in
developing effective marketing strategies and understanding the factors that influence
consumers at each stage of the decision-making process.