Lecture Notes​

Consumer Behaviour

Module 3,4,5

Notes extracted from Book authored by JIM BLYTHE

Images extracted from articles available online

Module 3

[Link] OF LEARNING IN CONSUMER BEHAVIOUR

1. Perception - Elements in perception. a. Subliminal perception. b. Perceptual Interpretation –

Stereotyping in advertising. 2. Learning – Elements in Consumer Learning. 3. Behavioral &
Classical Theory. 4. Cognitive Learning.

Module 4

[Link] -ECONOMIC-CULTURAL DETERMINANTS OF CONSUMER BEHAVIOUR

1. Family - Role of family in Socialization & Consumption – FLC. 2. Culture – Role &
Dynamics. i. Subculture & its influence on consumption. ii. Changing Indian core values. iii.
Cross culture consumer perspective. 3. Social group- primary and secondary and the role of
Reference group & Consumer Behaviour. 4. Economic- social class as the economic 5.
determinants of consumer behaviour

Module 5

1. CONSUMER DECISION MAKING

a. Process of decision making.. b. Models of decision making. c. Opinion Leadership. 2.

Diffusion & Adoption Process. a. Process of decision making. b. Models of decision making. c.
Opinion Leadership. 3. Diffusion & Adoption Process.

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Module 3

1. Perception: Elements and Role in Consumer Behaviour

Perception is how consumers select, organize, and interpret sensory information to form a
meaningful picture of the world. Jim Blythe emphasizes that perception filters every marketing
message a consumer receives.

Elements of Perception

●​ Sensation: The response of sensory organs (sight, sound, smell, touch, taste) to marketing
stimuli such as advertisements, packaging, displays.
●​ Attention: The process of focusing on certain inputs while ignoring others. Brands
compete for consumers’ limited attention. Indian example: Bright, colourful
advertisements during Diwali capture attention due to their relevance.
●​ Interpretation: The assignment of meaning to sensory stimuli. Existing beliefs, cultural
factors, and expectations influence interpretation, which varies by individual.
●​ Organization: Consumers group or categorize information based on past experience – the
“figure-ground” principle (what stands out, what is background noise).

a. Subliminal Perception

●​ Defined as the unconscious absorption of marketing messages beneath the threshold of

awareness. For example, a logo subtly embedded in product placement during an IPL
cricket broadcast could register subconsciously and influence later brand choice.

Psychological research informs practical applications of subliminal perception, such as

marketing, advertising and SEO services. Understanding how subliminal cues affect consumers

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can be used to design more effective advertising campaigns and influence consumer behavior.

●​ Its effects are controversial, as consumers with strong brand preferences aren’t easily
swayed by subliminal messages. For impact, consumers must already be familiar with
and motivated towards the brand.

b. Perceptual Interpretation and Stereotyping in Advertising

Perceptual interpretation can lead to stereotyping—preconceived ideas based on social or

cultural labels.
In Indian advertising, stereotyping is often seen in portrayals of traditional gender roles (e.g.,
women as homemakers in detergent ads) or cultural festivals (e.g., Hindu family scenes during
festival sales).
Johnson’s Baby is a brand that makes baby products. But in most of the ads, only the
mother is shown taking care of the child. For example, when it is a soap product, the
mother bathes the child, or when it is an oil product, the mother massages the baby. It is
like only a mother is responsible for child-rearing, and the father plays no role in taking
care of the infant.

Kinder joy is a chocolate product, which is currently famous among children. In the
advertisement for this product, they show a pink kinder joy package for the girl and a blue one
for the boy. Moreover, the gifts opened by the girl are generally barbie dolls, rings, kitchen
related kits, sewing machines, and others which are considered to be enjoyed by girls only. And

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for boys, they put gifts like cars, superheroes, airplanes, transformers, and so on.

Fair and Lovely advertisements are probably the most stereotypical, with slogans like, “best
ever nikhar” and “fairness in 7 days”, “fairness cream”, and so on. That shows that all girls
should be fair to look beautiful and confident; which implies that girls who have darker skin tone
are not confident or are not good looking. There is a similar product called Fair and Handsome
for men, delivering the same message.

2. Learning – Elements in Consumer Learning

Learning describes the changes in a consumer’s behaviour caused by experience.
Four elements of consumer learning (drawn from Jim Blythe and standard theory):

●​ Motivation: The need or drive that spurs learning (e.g., Indian youth motivated to buy a
smartphone for online classes during lockdown).
●​ Cues: Stimuli that guide or direct consumer behaviour (e.g., an offer banner on Flipkart
indicating a sale is a cue).
●​ Response: The reaction to cues and motives (e.g., clicking “Buy Now”).

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 ●​ Reinforcement: Any feedback that strengthens the likelihood of repeated behaviour (e.g.,
positive experience with Zomato food delivery leads to repeat orders).

3. Behavioural & Classical Theory

a. Behavioural Theory

●​ Focuses on observable behaviours rather than internal mental processes.

●​ Consumers learn through interaction with the environment via conditioning.
●​ E.g., If buying a particular brand of shampoo leads to good hair results (positive
reinforcement), consumers repeat the purchase; if not, they switch brands.

b. Classical Theory (Classical Conditioning)

Based on Pavlov’s experiments: A neutral stimulus (like a jingle) is paired with a positive
response (happiness), eventually causing the response even if the stimulus stands alone.

In India, the Britannia “ting ting ti-ting” jingle creates instant brand recall and positive
feelings, influencing consumers at the point of purchase.
Marketers use repeated pairings in ads to build emotional connections and brand loyalty.

4. Cognitive Learning

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 ●​ Stresses internal mental processes like thinking, reasoning, and problem-solving.
●​ Consumers actively process information to make rational choices, especially for
high-value products.

●​ Indian example: When buying an appliance online, consumers compare features and
reviews—processing lots of information before making a decision, rather than relying
only on habit or simple cues.

Indian Examples in Context

●​ Sensation/Attention: Bollywood celebrities in ads for jewelry or mobile phones drive
attention due to cultural relevance.
●​ Stereotyping: Traditional roles in matrimonial or household product ads often reinforce or
challenge common stereotypes experienced by Indian viewers.
●​ Learning: Use of reward programs in Indian retail chains (such as Big Bazaar’s loyalty
program) reinforces purchase learning through consistent rewards and deals, driving
repeat behaviour.
●​ Cognitive Learning: The rise of online financial products in India sees consumers
comparing mutual funds or insurance policies across multiple platforms before investing.

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Module 4

Family: Role in Socialization & Consumption – Family Life Cycle

●​ Socialization Agent: Family is the primary and most influential agent of socialization. It
shapes early consumption behavior, preferences, and values such as brand loyalty, food
habits, or savings orientation.
●​ Roles within Family:

Influencer​ : Suggests brands/products.

Gatekeeper​ : Controls access to information/choices.

Decider​ : Makes final buying decision.

Buyer​ ​ : Executes the purchase.

User​ ​ : Actually consumes the product.

In Indian families, multiple generations may live together, increasing group influence.

●​ Family Life Cycle: Consumer needs and spending patterns shift as families progress
through stages: bachelorhood, newly married, full nest (children), empty nest (retired).
E.g., urban Indian couples prioritize electronics when newly married, but invest in
education or housing as the family grows

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Eg: Home appliance decisions often involve all major family members; “Parle-G – G means
Genius” ads appeal to both parents and children.

Culture: Role & Dynamics

●​ Culture is the set of values, beliefs, and practices shared by people and is a key shaper of
consumer norms, preferences, and buying habits.
●​ Dynamics:
●​ Language, rituals, festivals, and customs drive unique purchasing spikes in India
(e.g., festive shopping during Diwali, Eid, Pongal).
●​ Evolving gender norms foster greater female participation in decision-making
(e.g., women buying cars, real estate).
●​ i. Subculture & Its Influence: Subcultures (religion, region, language, age, profession)
define consumption micro-patterns. Hindu vs. Muslim festival foods, preference for
region-specific clothing, or youth adoption of global brands are key examples.
●​ ii. Changing Indian Core Values: Indian consumers have become:
●​ More individualistic yet remain family-oriented.
●​ Increasingly value convenience, quality, and sustainability.
●​ More tech-savvy, eco-conscious, and experimental in urban areas; price-sensitive
and traditional in rural.
●​ iii. Cross-Culture Consumer Perspective: Brands adapt marketing for different cultures,
recognizing the significance of values, norms, and symbols (e.g., McDonald’s vegetarian
menu for India, color symbolism in packaging)

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Example :Culture/Subculture: Ayushman Bharat health cards and products like Maggi
“Masala-ae-Magic” cater to regional tastes.
Reference Groups: Instagram influencers promoting organic beauty products drive youth
purchases.
Social Class: Tata Nano targeted first-time car buyers in lower-income segments, while Royal
Enfield appeals to aspirational urban youth.

Social Groups: Primary, Secondary, and Reference Groups

●​ Primary Groups: Immediate, direct interaction—family, close friends. These heavily
influence early habits, attitudes, and brand perceptions.
●​ Secondary Groups: Larger, more formal—colleagues, clubs, religious groups, social
networks.
●​ Reference Groups: Groups (real or imaginary) that an individual aspires to join or avoid.
Impact is felt through:
●​ Normative influence: Pressure to conform (e.g., students buying branded clothes
to fit in).
●​ Informational influence: Guidance for unfamiliar products (reviews from experts
or influencers).
●​ Indian Scenario: Bollywood celebrities, cricket icons, or local community leaders often
serve as reference points, shaping preference for brands in smartphones, cars, or fashion.

4. Economic and Social Class Determinants

Social Class: Defined by income, occupation, education, and lifestyle. Affects not only
purchasing power but also aspirations and self-image.

●​ Upper classes may buy luxury brands to showcase status.

●​ Middle classes seek value and reliability.
●​ Lower-income groups prioritize price, offers, and necessity products.

In India, a rising middle class with growing disposable income drives demand for branded goods,
insurance, and educational services.

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Class mobility is visible as many shift from rural to urban, or as dual-income households gain
importance.

Module 5

Consumer Decision Making

a. Process of Decision Making

The consumer decision-making process typically includes five stages:

1.​ Problem/Need Recognition​

The consumer becomes aware of a need or problem (e.g., needs a new phone due to a
damaged one).
2.​ Information Search​
The consumer collects information—ads, reviews, store visits, or advice from friends.
●​ In India, personal advice from family/friends (“word of mouth”) is highly valued.
3.​ Evaluation of Alternatives​
Consumers weigh different brands or products, comparing features, prices, and past
experiences.
●​ Example: Comparing Xiaomi, Samsung, and Realme smartphones.

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 4.​ Purchase Decision​
The consumer selects the most suitable product and vendor.
●​ Online discounts during Indian festivals (like Flipkart Big Billion Days) strongly
influence this stage.
5.​ Post-Purchase Evaluation​
The consumer assesses satisfaction. Positive experiences reinforce loyalty;
disappointment may lead to complaints or switching brands.

Opinion Leadership
Opinion leaders are individuals who informally influence others' purchase decisions:

●​ They are seen as credible, knowledgeable, and often share honest experiences.
●​ In India, film stars, cricket players (like Virat Kohli for MRF or Deepika Padukone for
Tanishq), or popular YouTubers frequently act as opinion leaders.
●​ Characteristics: Accessible, trusted, often early adopters within their circles.
●​ Marketers target opinion leaders to amplify word-of-mouth influence (e.g., free product
trials or social media campaigns).

Examples of Opinion Leadership:

●​ A tech enthusiast who shares their experiences with the latest gadgets with friends and
family.
●​ A foodie who recommends restaurants and cafes to their social circle based on their
dining experiences.
●​ A parent who shares advice on choosing the right school with other parents in their
community.

2. Diffusion & Adoption Process

The diffusion process studies how innovations (new products/services) spread in society;
adoption refers to individual consumer acceptance.

a. Adoption Process (Five Stages):

1.​ Knowledge/Awareness​
Consumer learns about the new product (e.g., TV ad for a new health drink).

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 2.​ Interest/Persuasion​
Consumer seeks more info (online reviews, peer recommendations).
3.​ Evaluation​
Consumer judges if the product fits their needs (e.g., is the new UPI app trustworthy?).
4.​ Trial​
Consumer tries the product (free samples, trial offers).
5.​ Adoption/Confirmation​
Consumer decides to fully use the product (buys, installs, or subscribes).
●​ Sometimes, "rejection" occurs—consumer abandons after trial.

b. Models of Diffusion

●​ Rogers’ Diffusion of Innovations classifies adopters as:

●​ Innovators → Early Adopters → Early Majority → Late Majority → Laggards.
●​ Marketers initially target innovators and early adopters to create buzz.
●​ In India, celebrity endorsements (e.g., Amitabh Bachchan for new banking apps) can
speed up diffusion.

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c. Opinion Leadership in Diffusion

●​ Opinion leaders play a pivotal role in both influencing early adoption and spreading
product information.
●​ Indian examples: Influential tech bloggers reviewing a new smartphone, local community
leaders endorsing government schemes.

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Stages of the Consumer Adoption Process

1. Product Awareness:

Product Awareness is the first stage in the consumer adoption process. It is the initial stage in
which consumers learn about the existence of new products and services. Promotional activities
such as advertising, direct communication, social media, recommendations from friends,
newspapers, TV, etc., and other types of communication can all be used to raise awareness.
During the awareness stage, consumers may have limited knowledge about the product.
Therefore, all this makes the customers familiar with the products of the marketers.

Product awareness is a step that marketers use to carry out their plans, marketing strategies, and
channels to attract potential customers toward their products and services. This stage is all about
informing the customers about the existence of the product and its availability in the market.
Once the customers become aware of the product, they start getting interested in it according to
their needs and preferences.

Consumers can move forward to other stages of the adoption process after they are aware of the
product, such as gaining an interest, rating, trying, and finally adopting it if it meets their
requirements and preferences. The first stage of the process is crucial because it serves as a
foundation for the rest of the other stages, and helps the customers further explore a product.

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2. Product Interest:

Product Interest is one of the key stages in the Consumer Adoption Process. At this stage,
customers show interest in learning more about a certain product or service. The stage of Product
Interest begins when customers start actively looking for information about the product, its
features, and benefits rather than just being aware of its existence. The consumers are willing to
invest their time and effort in gathering information about that product. They are interested in
understanding the characteristics and advantages of the product as well as how it will be able to
meet their demands.

To continue attracting customers and generating interest, marketers need to provide correct
information and material that will be helpful for the customers. This step includes the marketers
providing detailed product descriptions, videos, customer reviews, and demonstrations. The
customers may have several questions about the product, its availability, its pricing, or its
alternatives.

Marketers take advantage of this opportunity to educate the customers and provide useful
information, answer questions, and guide the customers toward the next stage of the adoption
process. To create interest among buyers, marketers can use several strategies such as content
marketing, online advertisement, product display, etc.

3. Product Evaluation:

Product Evaluation is an important stage in the Consumer Adoption Process, in which consumers
make decisions regarding the purchase of the product after they are made aware and are still
interested in that product. In this stage, the consumers carefully evaluate the product to see if it
satisfies their needs and matches their preferences. Product Evaluation is the stage in which
consumers consider various factors like quality, features, price, etc., and then critically analyse
the product based on the fulfilment of their needs or the situation. This stage gives the consumer
a more detailed and systematic analysis of the products and helps the customers decide whether
to make a purchase or not. This step not only gives details about the product but also informs the
customers about the risk involved so that they can compare, and seek out its alternatives.

There are a lot of strategies that can be used during the evaluation stage for the benefit of the
customers. Some of them include providing detailed information, reviews and feedback, keeping
the price transparent, ensuring that customer support is always ready to answer the problems of

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the customers by providing free samples, etc. These are a few of the steps that help the customers
gain trust in the brand or product and move forward to try and adopt them.

4. Product Trial:

Product Trial is the stage that comes after consumers have become aware of a product, shown
interest in it, and evaluated it. Once consumers have evaluated the product and feel confident in
their choice, some will proceed to the trial stage. If the product trial is successful, it can lead to
product adoption. When the customers try the product and find it good, they will give a positive
review for it and most likely make up their minds to purchase it. Further, they may even share
their experience with their friends, family, or any other person. This step can be really useful for
marketers to advertise their products in the form of free samples or even limited-time access to
these products. Therefore, marketers should come up with better trial experiences for their
customers. This is the stage in which the customers shift from thinking about the purchase to
using it. A successful trial can lead to a long-term customer.

5. Product Adoption:

This is the final stage of the Consumer Adoption process and represents the successful adoption
of a product. It is the stage in which the consumers have not only tried the product, but have also
implemented it in their lives and have become frequent users of the product. In product adoption,
the consumers have moved beyond the trial phase after being fully interested in it. Those
products have now become a part of their lives, and more likely to repeat the purchase, choosing
them over other similar products. Therefore, when a customer adopts a particular brand or
product, this leads to profit generation for the business and marketers.

Marketers should keep upgrading the features or enhancing the quality of the products to keep
the consumers satisfied and stay adapted to them. This step also includes reaching out to the
feedback given by the customers and making changes and improvements to it.

Therefore, adoption is the final goal of every business as they build life-long customers through
this process who are likely to remain loyal to the products they are willing to adopt. Effective
marketing strategies at this stage can help the customers to remain loyal by continuously
improving the product to meet their needs and preferences. It is also effective to attract new
customers. It's a dynamic process that requires marketers to keep on making upgrades and
improving their techniques of marketing.

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Dogmatism

Dogmatism, in the context of consumer behavior, refers to a personality trait characterized by

closed-mindedness and resistance to new information or experiences. Highly dogmatic
consumers tend to be rigid in their beliefs and preferences, favoring familiar products or brands
and exhibiting resistance to change or new options. This can manifest in various ways, including
brand loyalty, resistance to new products

Indian Core Values in Consumer Behaviour

The Power of Nostalgia In Modern Marketing
In an era of rapid digital evolution, where trends change overnight and consumer attention is more
fragmented than ever, nostalgia has emerged as a powerful tool for brands to reconnect with
audiences. By evoking memories of simpler times, familiar experiences, and shared cultural
moments, nostalgia marketing taps into deep emotional reservoirs that foster brand affinity and
long-term loyalty.

Many brands in India have successfully leveraged nostalgia by revisiting not just their own iconic
campaigns but also broader cultural moments that resonate deeply with audiences. The resurgence of
vintage aesthetics, classic jingles, and retro packaging reflects a growing consumer desire for
familiarity and comfort. Whether it’s drawing from 90s pop culture or refreshing a memorable TV
commercial, Indian brands have found innovative ways to reintroduce timeless elements to new-age
consumers.

A great example is the Cadbury Celebrations campaign, which originally captured the joy of an
unexpected celebration when a girlfriend ran onto a cricket pitch to applaud her boyfriend’s success.
This iconic moment was recreated a few years ago with a fresh perspective—the roles were reversed,
and this time, the boyfriend stormed the pitch to celebrate his girlfriend’s sporting victory. It’s a

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perfect case of nostalgia being reimagined for modern times, blending emotional recall with
contemporary values like gender equality.

Similarly, the beloved Nirma jingle continues to live on across generations. While the visuals
have been updated to appeal to today’s viewer, the core tune and messaging remain the same,
underscoring the power of consistency and emotional resonance. Another timeless example is the
Amul topical ad campaign, which for decades has captured the Indian zeitgeist with wit, cultural
relevance, and that unmistakable Amul girl. These are more than just ads—they’re shared
memories.

People are spending more time alone and online

The behaviors that consumers adopted for coping with life under COVID-19 lockdown—namely,
a reliance on digital connectivity and at-home activities—are now permanent parts of their daily
lives. Globally, consumers still spend their time and money differently than they did five years
ago. They’re more intent on immediate gratification and convenience and have a higher focus on
self than before.

Digital channels win users but not their trust

Consumers tell us that social media is their least trusted source when making buying decisions,
yet it’s where they interact with family and friends, who serve as their most trusted sources. Even
though trust in institutions and media is low, always-on social and digital channels subtly
influence consumers’ purchase decisions and brand perceptions.

Gen Z grows up and spends

Understanding Gen Z consumers and their spending behavior presents one of the single greatest
opportunities for consumer brands and retailers. Gen Zers (born between 1996 and 2010) are
projected to make up not only the largest generation but also the wealthiest in history.

Consumers lean local over global

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Over the past five years, we have seen disruptor consumer brands encroach on global,
multinational brands. That trend has evolved in 2025: As new global trade agreements take shape
and disruption continues, consumers are signaling the importance of buying local from their own
markets.

Personalisation as a mandate
Nowadays, customers demand an extremely personalised experience that fits their unique
requirements, interests, and preferences. As 2025 progresses, personalisation in advertising will
be an expectation rather than a differentiation. Thankfully, brands can provide these experiences
at scale because of the penetration of AI and data analytics.

Trust, authenticity, and sustainability

In a world inundated with content, trust has become the currency of successful advertising.
Consumers demand transparency, ethical practices, and value-driven communication from
brands. Storytelling that emotionally resonates is a powerful tool to build this trust. Authentic
narratives showcasing a brand’s purpose, coupled with clear and honest messaging, will be
essential to winning consumer loyalty. The era of flashy but hollow advertising is fading, making
way for meaningful connections.

Sustainability
Being environmentally conscious is no longer a niche; It has become mainstream and is followed
by millions if not billions of people. Brands that emphasise sustainability and exhibit a sincere
dedication to environmental responsibility are becoming more and more popular with consumers.
This change must be reflected in advertising and should emphasise real sustainability projects
above showy gestures or greenwashing. Ads that emphasise a company’s observable benefits to
environmental health are likely to be appreciated by discerning consumers.
Interactive and short-form content
By creating interesting, bite-sized content that quickly grabs attention, advertisers can capitalise
on the fact that short-form content platforms will dominate consumer attention spans in 2025.
Short format video platforms today engage close to 25 crore users and rake in approximately

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over $200 million in revenues (approximately INR 1,688 crores, approximately) every month.
Furthermore, interactive campaigns and gamification will offer opportunities for greater
engagement by motivating users to actively engage rather than only consume content. The Indian
consumer in 2025 will be a blend of digitally empowered, culturally rooted, and value-driven.

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