By Prof.
Shabista Booshan
SIMC -B
Consumer behavior is the
study of how individuals
make decisions to spend
their available resources
(time, money, effort) on
consumption related items
• Marketers to gauge and focus on :
• Who buys products or services
• How do they buy products or services
• Where do they buy them
• When do they buy them
• How often do they use them
Relevance of studying consumer behaviour:
• Customers' psychological and emotional gratification
• Adopt a customer culture
• Information and knowledge of buyer’s motives and habits
• Example : Lux: Soap of the stars, Property Ads
APPROACHES TO THE STUDY OF CONSUMER
BEHAVIOUR:
Different approaches to studying consumer behaviour are:
• Managerial approach – Micro - individual consumer- his or
her attitude, perceptions and lifestyles, purchase experience,
Focus is on purchase rather than consumption
Marketers are interested in this approach because all marketing strategy
is to satisfy the individual consumers need
• Holistic approach- Macro –consumption experience - No
emphasize on purchase decision
It focuses on consumption experience rather than purchasing process
• Balanced approach
APPLICATION OF CONSUMER BEHAVIOUR KNOWLEDGE IN
MARKETING (Management) DECISION:
Understanding of consumer behaviour is essential for the long run
success of any marketing program.
Some of marketing activities where consumer behaviour knowledge
is important are:
• Market-opportunity analysis
• Target market selection
• Marketing mix determination
Market opportunity analysis:
• It involves analyzing the market to identify unsatisfied needs
and wants.
The analysis begins with a study of general market trends
such as consumers lifestyle and income levels which suggests
unsatisfied needs and wants.
Example : Washing Machines, Mixer Grinders, modular
kitchens
Target market selection:
• Market opportunity analysis results in the selection
of target market i.e. distinct groupings of consumers
who have unique wants and needs.
Example: Shampoo sachets instead of shampoo bottles
• Market-mix determination: unsatisfied needs
and wants + distinct wants and needs = Market
mix determination
• Marketing mix variables are:
• Product
• Price
• Place
• Promotion
Models of Consumer Decision Making Process
There are three ways of analysing consumer buying decisions. They
are:
1. Economic models - quantitative
2. Psychological models - psychological and qualitative
3. Consumer behaviour models - blend of both economic and
psychological models.
Five-Stage Model of the Consumer Buying
Process
Trends in Consumer Behaviour
• Customer Demographic Trend
• Technological Trends
• Trends in public Policy
Examples: Free email by Sabeer Bhatia, Credit Cards by
Citi Bank, Reliance mobile connection
Customer Demographic Trend
• Declining Birth Rate
• Aging Population
• Women Opting to work
• Single individual household
• ‘Middle Class’ status shift
• Geographic Shifting
Technological Trends
Trends in Public Policy
• Ethical
• Economic
• Regional
Models of Consumer Behavior
• Traditional Models:
Economic model
Learning model
Psychoanalytic model
Sociological model
Activity