1) Introduction to Consumer Behaviour

Meaning

Consumer behaviour is the study of how individuals, groups, or organizations choose, buy,
use, and dispose of goods and services to satisfy their needs and wants.

Definition

Consumer behaviour refers to the process and actions a consumer goes through while
deciding what to buy, why to buy, how to buy, when to buy, and where to buy a product.

Applications in Marketing

Consumer behaviour helps marketers:

●​ Understand needs and wants of customers.​

●​ Design suitable products that match expectations.​

●​ Decide price strategies based on consumer perception and ability to pay.​

●​ Choose the right place/distribution (online, retail stores, apps, etc.).​

●​ Create effective promotional messages that influence buying decisions.​

●​ Predict future buying trends to stay competitive.​

Current Trends in Consumer Behaviour

●​ Digital Buying Growth: Buying through apps, websites, social media shops.​

●​ Influencer Marketing: Consumers trust celebs, YouTubers, bloggers.​

●​ Eco-friendly Choices: Preference for sustainable, organic, recyclable products.​

●​ Review-Based Decisions: Customers check reviews, ratings, unboxing videos.​

●​ Personalized Marketing: Targeted ads based on browsing/search history.​

●​ Focus on Experience: Consumers value brand experience, packaging, after-sales

service.​
 ●​ 2) Consumer Behaviour Models

(a) Stimulus–Response Model

●​ Stimulus (S): External influence (advertisement, packaging, price, sales promotion).​

●​ Black Box (B): Human mind — internal factors like motivation, perception, attitude.​

●​ Response (R): Final buying decision (buy/don’t buy, brand choice, quantity).​

Formula:​
Stimulus → Black Box → Response

(b) Stages of the Buying Decision Process

1.​ Problem/Need Recognition: Feeling a need (e.g., hungry → want pizza).​

2.​ Information Search: Looking for options (ads, friends, reviews).​

3.​ Evaluation of Alternatives: Comparing brands (price, quality, features).​

4.​ Purchase Decision: Final choice and buying the product.​

5.​ Post-Purchase Behavior: Satisfied or dissatisfied (affects repeat purchase).​

(c) Marketers’ Influence on Decision-Making

Marketers can influence consumer decisions using:

●​ Discounts and offers​

●​ Attractive packaging and branding​

●​ Emotional ads and celebrity endorsements​

●​ Free samples and trials​

●​ Product placement in shows/movies​

●​ After-sales service, warranties​

(d) Howard–Sheth Model

Explains how consumers solve problems while buying products.

It includes 3 types of buying behaviour:

Type of Buying Meaning Example

Extensive Problem High involvement, expensive, risky Buying a car, laptop

Solving products, lots of information search

Limited Problem Some experience but need comparison Buying clothes,

Solving shoes, cosmetics

Routinized Response Habitual buying; low involvement Buying toothpaste,

Behaviour soap, milk

Quick Memory Tricks

●​ S-R Model: Think ‘SBR — Stimulus, Brain, Response’.​

●​ 5 Stages of Buying: NEEPP → Need, Explore, Evaluate, Purchase, Post-buy​

●​ Howard–Sheth: ERR = Extensive, Routine, Limited

1) Cultural Factors
a) Culture

●​ Culture refers to shared values, beliefs, customs, habits, and traditions learned from
society.​

●​ It shapes what we like, how we shop, what we eat, and how we live.​

●​ Example: Indians prefer spicy food; wearing ethnic clothes during festivals.​

b) Enculturation vs. Acculturation

Term Meaning Example

Enculturation Learning your own culture from Learning Indian festivals, languages
birth
 Acculturation Adapting to a new/foreign culture Indians adapting to Western fast food,
fashion

c) Subculture

●​ A smaller cultural group within a larger culture having its own values, beliefs, and
preferences.​

Major Sub-Cultural Categories in India:

●​ Religion-based: Hindus, Muslims, Christians, Buddhists​

●​ Region-based: Bengali, Punjabi, Tamil, Marathi​

●​ Language-based: Hindi speakers, Tamil speakers, etc.​

●​ Ethnic groups: Tribal groups, Anglo-Indians​

●​ Nationality/Lifestyle: Urban youth, rural consumers​

d) Social Class

●​ A division of society based on income, education, occupation, lifestyle, wealth.​

●​ People in the same class show similar buying behaviour.​

e) Social Stratification

●​ Ranking of people into categories (upper, middle, lower).​

●​ Influences preferences like brand choice, spending levels.​

Characteristics of Major Indian Social Classes:

Class Features Buying Behaviour

Upper Class High income, luxurious lifestyle Premium brands (cars, watches,
fashion)
 Middle Educated, value money, quality Branded but affordable products
Class conscious

Lower Low income, basic needs dominate Price-sensitive purchases, essential

Class goods

2) Social Factors
a) Reference Groups

Groups that influence a person’s attitudes and buying behaviour.

Types of Reference Groups

Type Influence Example

Normative Influence values & behaviour Family

Comparative Used for comparison Friends, aspirational

celebrities

Indirect Not directly seen but influence Sports stars, actors,

influencers

Factors Affecting Reference Group Influence

●​ Product visibility (public use vs private use)​

●​ Product type (luxury vs necessity)​

●​ Consumer personality (confident or insecure)​

●​ Social status of group members​

Consumer-Related Reference Groups

Group Influence

Friendship Groups Suggestions & trends

Shopping Groups Advice during purchase

 Work Groups Professional product choices (formal clothes,
gadgets)

Virtual Groups Instagram, WhatsApp groups, online reviews

Consumer Action Protect consumer rights (NGOs, activists)

Groups

Reference Group Appeals

Marketers use:

●​ Celebrity endorsements (Aspirational appeal)​

●​ Peer group ads (e.g., college students using a brand)​

●​ Expert testimonials (Doctors endorsing toothpaste)​

Opinion Leadership

●​ A person who influences others’ buying decisions because of knowledge, popularity,

or experience.​

●​ Examples: Tech reviewers, beauty bloggers, gym trainers.​

b) Family Influence

●​ Family is the strongest influence on buying behaviour.​

Family Life Cycle (FLC) & Buying Patterns

Stage Characteristics Common Purchases

Young Single Living alone/with parents Fashion, gadgets

Newly Married Dual income, no kids Vacations, electronics

Family with Kids Child expenses high Toys, health products, school
items

Older Married Kids grown, savings Furniture, property, investments

Retired Low income, health conscious Medicines, insurance

Roles & Status

●​ Roles: Expected behaviour in family (e.g., father decides finances, mother decides
groceries).​

●​ Status: Position in society; higher status buys premium brands.​

3) Personal Factors
Personal Factor Influence on Consumer Example
Behaviour

Age Needs change with age Toys for children, skincare for adults

Occupation Work affects purchases Businessmen buy formal wear; artists

buy creative tools

Economic Income affects spending Rich = luxury; Low income =

Circumstances necessities

Lifestyle Activities, interests, opinions Fitness lifestyle → gym wear, diet

products

Personality & People buy products Stylish person buys trendy brands
Self-Concept matching their image

Quick Memory Tips

●​ Culture = Learned; Enculturation = Own; Acculturation = Foreign​

●​ FLC = Single → Married → Kids → Older → Retired​

●​ Reference Groups: FSWVC = Friends, Shopping, Work, Virtual, Consumer groups​

●​ Personal Factors = A-O-E-L-P (Age, Occupation, Economic, Lifestyle, Personality)

Module III: Psychological Factors Influencing Consumer Behaviour — Easy

Detailed Notes
24) Motivation
Meaning

Motivation is the inner drive that forces a person to take action to satisfy a need or want (e.g.,
hunger motivates buying food).

Basic Process of Motivation

1.​ Need (felt deprivation)​

2.​ Drive/Tension (uneasiness)​

3.​ Goal/Action (buying)​

4.​ Satisfaction (need fulfilled)​

Example: Hunger → discomfort → order pizza → satisfaction.

Model of Motivation Process

Unfulfilled Need → Tension → Drive → Behaviour (purchase) → Goal Fulfilment →

Reduced Tension

Types of Motives
Type Meaning Example

Primary Motives Biological needs Food, water, sleep

Secondary Learned needs Prestige, love, status

Motives

Rational Motives Logical thinking Price, durability

Emotional Motives Feelings-based Fear, love, pride

Conscious Aware decisions Choosing healthy food

Motives
 Dormant Motives Hidden motives Buying luxury to show off

Buying Motives
Type Meaning Example

Emotional Product Motive Feelings for product Buying perfume to feel attractive

Rational Product Motive Logical product Buying energy-efficient appliances

choice

Emotional Patronage Emotional store Choosing a shop because of friendly

Motive choice staff

Rational Patronage Motive Logical store choice Choosing a store for discounts &
quality

Maslow’s Hierarchy of Consumer Needs

Visualised as 5 levels motivating consumer behaviour:

Level Need Examples (Consumer

Behaviour)

1. Physiological Basic needs Food, water, medicines

2. Safety Security & protection Insurance, bank savings, helmets

3. Social Love & belonging Social media apps, fashion, gifts

4. Esteem Status & respect Luxury brands, high-end cars

5. Personal growth Courses, travel, gym memberships

Self-Actualisation

25) Self Concept

Meaning

Self-concept is a person’s perception of who they are, influencing what they buy.
Self & Self-Image

●​ Self: Real identity.​

●​ Self-Image: How a person sees themselves.​

Multiple Selves

People have different selves in different roles (student, friend, professional), leading to different
buying behaviour.

Extended Self

People consider possessions as part of themselves (phone, clothes, car reflects personality).

Altering the Self

Consumers buy products to change or improve their identity (makeup, fitness products).

Virtual Self

Online identities (avatars, Instagram persona) influence purchases (filters, digital fashion,
gaming skins).

Gender Roles

Modern marketing supports role changes (men buying grooming products, women buying
gadgets).

26) Perception
Elements of Perception
Element Meaning Example

Sensation Receiving stimulus from Seeing a brand logo

senses

Absolute Threshold Minimum stimulus detected Lowest volume we hear

 Differential Threshold (JND) Minimum change detected Small price change
noticed

Dynamics of Perception
Process Meaning

Perceptual Selection Selecting certain info (ignore others)

Perceptual Organisation Grouping information (brand image)

Perceptual Interpretation Assigning meaning to stimulus (brand perception:

good/bad)

Example: A premium-looking package → perceived as high quality.

27) Learning
Meaning

Learning changes behaviour based on experience, repetition, and information.

Elements of Learning

●​ Motivation​

●​ Cues (signals/ads)​

●​ Response (buying action)​

●​ Reinforcement (satisfaction encourages repeat purchase)​

Learning Theories

1) Classical Conditioning

●​ Learning through association.​

●​ Example: Repeated music jingle + brand → memory of product.​

2) Instrumental/Operant Conditioning

●​ Learning through reward & punishment.​

●​ Example: Discounts encourage loyalty; bad quality stops purchase.​

3) Modelling / Observational Learning

●​ Learning by observing others.​

●​ Example: Buying what influencers/celebrities use.​

28) Attitude
Meaning

Attitude is a consumer’s consistent favourable or unfavourable feeling toward a product or

brand.

Tri-Component Attitude Model

Component Meaning Example

Cognitive Beliefs/knowledge “Nike shoes are durable.”

Affective Feelings “I like Nike.”

Conative (Behavioural) Intentions “I plan to buy Nike shoes.”

Attitude Models
Model Focus Meaning

Attitude-Toward-Object (ATO) Product Attitude based on rating features (price,

attributes quality)

Attitude-Toward-Behaviour Action of buying Evaluates the act of buying a product

Theory of Reasoned Action Social influence Attitude + social norms → behaviour
(TRA)

Theory of Trying to Consume Trying vs Focuses on trying to buy, even if not

success successful

How Attitudes Are Learned

●​ Direct experience with product​

●​ Influence of family, friends​

●​ Advertisements, social media​

●​ Personality and learning​

●​ Brand reputation & reviews​

✔ Quick Memory Hacks

●​ Motives: P-S-R-E-C-D (Primary, Secondary, Rational, Emotional, Conscious, Dormant)​

●​ Maslow: P-S-S-E-S (Physio, Safety, Social, Esteem, Self)​

●​ Learning: Classical = Association; Operant = Reward; Modelling = Watching​

●​ Attitude = CAB (Cognitive, Affective, Behavioural)

1) Introduction to Organizational Buying Behaviour

●​ Organizational buying refers to purchasing done by businesses, industries,
institutions, and government for production, resale, or daily operations.​

●​ Unlike individuals, organizations buy in large quantities, logically, and with formal
procedures.​
Organizational Buyers vs. Consumers
Feature Organizational Buyers Individual Consumers

Purpose Purchase for resale, production, or Personal/household use

business use

Buying Logical, systematic, based on cost & Emotional + rational

Decision efficiency

Quantity Large volume Small quantity

Buyers Group decision (team) Individual or family

involved

Process Formal: tenders, contracts, negotiation Informal: simple purchase

Relationship Long-term supplier relationship Short-term, brand switching

common

2) Factors Influencing Business Buying

Factor Type Examples

Environmental Market demand, competition, technology, economy, government policies

Organizational Company objectives, budget, policies, hierarchy

Interpersonal Power, authority, conflict, cooperation among members

Individual Age, education, personality, experience of decision makers

Product-Related Price, quality, reliability, technical specifications

3) Types of Business Buying Situations

Type Meaning Examples

New Task First-time purchase, high research, risk New machinery or software

Straight Routine reorder without change Office stationery, cleaning

Rebuy supplies
 Modified Reorder with change in supplier, price, Changing laptop brand for
Rebuy quality, or quantity employees

4) Organizational Decision-Making Units (DMU)

Also called Buyers’ Centre — Group involved in business purchase decisions.

Roles in DMU
Role Function Example

Users Use the product Employees using computers

Initiators Identify need IT department asks for new software

Influencers Provide technical opinion Engineers suggest brand specifications

Buyers Negotiation & purchase Purchase manager

Deciders Final authority General Manager/CEO

Gatekeeper Control information flow Receptionists, technical staff approving

s proposals

5) Stages of Buying Process in Organizations

Stage Description Example

1. Problem/Need Recognition Identify business need Need new machines

2. General Need Description Decide product features Required capacity, size

3. Product Specification Technical details written Detailed specification

prepared

4. Supplier Search Finding vendors (tenders) Searching suppliers

5. Proposal Evaluation & Compare quotes, Select vendor with best offer
Supplier Selection negotiate

6. Order Routine Specification Finalise order terms, Sign purchase contract

delivery, price
7. Performance Review Assess supplier, product Evaluate after usage to
quality reorder/modify

✔ Memory Tricks

●​ Types of Buying: N-S-M (New task, Straight rebuy, Modified rebuy)​

●​ DMU Roles: U I I B D G → (Users, Initiators, Influencers, Buyers, Deciders,

Gatekeepers)​

●​ Process Steps: R – D – S – S – E – O – R​
(Recognize → Describe → Specification → Supplier Search → Evaluation → Order →
Review)​