Module 1
Global Consumer Behavior
"Take Care of Consumer Needs, the
consumers, in return, will take care of
your needs"
CUSTOMER
CONSUMER
BEHAVIOUR
Definition of Customer
Definition of Customer
A person who buys goods or services in a
shop, restaurant, etc.
Definition of Consumer Behavior
Definition of Customer
Consumer Behavior is the study of how individual
customers, groups or organization select, buy, use
and dispose ideas, goods, and services to satisfy
their needs and wants.
Need for Understanding Consumer Behaviour
Definition of Customer
Any marketer, to study consumer behaviour has
become so essential for the following things.
Shorter product life cycles. e.g. changing customer
needs, mobile phones & electronics etc.
Evolving consumer preferences. (Health - Colgate
Herbal toothpaste)
Environmental concerns (HUL, Surf excel launched
a washing powder variant that uses less water to
clean clothes
Need for Understanding Consumer Behaviour
Definition of Customer
Any marketer, to study consumer behaviour has
become so essential for the following things.
Changing lifestyles.
Faster Technology adoption (Online Facilities
available|)
Live Example
How consumers think, feel, reason and select
among different alternatives.
How consumers are influenced by their
environment.
The behaviour of consumers while shopping or
making any choice decisions.
Live Example
Scope of Consumer Behaviour
Consumer behavior is a crucial aspect of marketing
that involves understanding the needs, preferences,
and decision-making processes of consumers.
The scope of consumer behavior is broad and
encompasses various aspects of marketing, such as
product development, pricing, promotion, and
distribution.
Scope of Consumer Behaviour
Product Development
Pricing
Promotion
Distribution
Evolution of Consumer behaviour as
a Branch of Study ?
Internal Influences on Consumer Behavior
Perception: How individuals interpret and make sense of their surroundings affects their
purchasing decisions. Factors like sensory perception (sight, smell, taste, touch, and sound)
and psychological perception (how people perceive brands and products) can impact
consumer behavior.
Motivation and Needs: Consumers are driven by various needs, such as physiological (food,
water), safety, social (belonging, friendship), esteem (self-esteem, status), and self-
actualization. These needs motivate consumers to seek products and services that fulfill
them.
Attitudes and Beliefs: Consumer attitudes and beliefs are formed by past experiences,
cultural background, and social influences. Positive attitudes towards a product or brand
can lead to higher likelihood of purchase, while negative attitudes can deter consumers.
Learning and Memory: Consumers learn from their experiences with products and brands.
Positive experiences can lead to repeat purchases and brand loyalty, while negative
experiences can result in avoidance behavior. Memory also plays a role in how consumers
recall and evaluate products when making decisions.
Internal Influences on Consumer Behavior
Lifestyle and Personality: Consumers' lifestyles and personalities influence their
preferences and buying behaviors. Different personality traits may lead
individuals to seek out specific products or brands that align with their self-
concept.
Emotions and Mood: Emotional states and moods can impact consumer
behavior. For instance, individuals in a positive mood may be more open to trying
new products, while those in a negative mood might seek comfort purchases.
Perceived Risk: Consumers often perceive different levels of risk associated
with purchasing products or services. These risks include financial risk,
performance risk, social risk, and psychological risk. The perception of risk can
influence purchase decisions and the amount of information-seeking behavior.
External Influences on Consumer Behavior
Culture and Subculture
Social Factors
Reference Groups
Social Class
Marketing and Advertising
Economic Factors
Technology and Media
Regulation and Legislation
Environmental Factors
Situational Factors
Roles of the Customer: User, Payer, and Buyer
User is Neither Payer Nor
Buyer ?
Roles of the Consumer: User, Payer, and Buyer
User is Neither Payer Nor Buyer
In Some cases, the user is distinct from both the payer
and the buyer roles of the consumer.
For e.g. Parents typically pay for and actually buy most
of the products their children use.
Pet foods are one product category and veterinary
care one service category where the user is definitely
different from a buyer and a payer.
Roles of the Customer: User, Payer, and Buyer
User is Payer But Not
Buyer ?
Roles of the Customer: User, Payer, and Buyer
User is Payer But Not Buyer ?
In Other cases, the user is also a payer, but not a
buyer.
For e.g. In the financial markets, stockbrokers act as
agents for clients who enlist them to buy stocks of
various companies.
In business markets, an office assistant may purchase
office supplies for someone else's use that are paid for
by the department budget.
Roles of the Customer: User, Payer, and Buyer
User is Buyer But Not
Payer ?
Roles of the Customer: User, Payer, and Buyer
User is Buyer But Not Payer ?
The user may be a buyer but not a payer of goods or
services.
A household example of this situation is a customer
taking medical treatment at a hospital whose invoice is
then reimbursed by an insurance company.
Roles of the Customer: User, Payer, and Buyer
User is Buyer and Payer ?
Roles of the Customer: User, Payer, and Buyer
User is Buyer and Payer ?
Finally, the user may also be both the buyer and the
payer for a product or service, combining all three
roles into a single person or department.
Most consumers purchase and pay for products for
their personal use, such as a clothing, watches, airline
tickets, haircuts etc..)