Prof Javed

Consumer Behaviour is the study of how individuals make decisions to spend their
available resources(time,money,effort) on consumption related items. What they
buy? How they use and dispose the products? When they buy? Why they buy? Where t
hey buy,How often?
Cultural factors Social factors Personal factors Psychological factors
Individual buying pattern is affected by his culture Subculture has more specifi
c identification Culture affects buying behaviour Eggless cakes for Jains ,Alcoh
ol free products offered to Gulf countries. Purchase of gold on Padwa Indian cul
ture Marathi Ads are aired to cater to the vast majority of people in the state
French particular about their language
Family ,friends, formal social groups, colleagues, consumer action groups influe
nce the consumer buying behavior significantly. Family : Family of orientation o
ne s parents and siblings Family of Procreation-spouse and children Newly wed co
uples buy honeymoon packages Husbands have started taking keen interest in house
keeping , cooking due to rising proportion of working women
Reference groups They have a direct /indirect influence on a person s behavior P
rimary reference groups 1.Membership Group: Members of Swadeshi /Gandhigiri club
2.Aspirational group-whom one aspires to join ! 3.Disclaimant group- Being a me
mber dislikes the values 4.Avoidance /dissociative group- not a member and disli
kes their attitudes & behaviour
Secondary reference groups Opinion leaders special skills ,knowledge , personali
ty Identify media read /tuned to by opinion leaders E.g: kitchenware Housewife i
s the best opinion leader
Age Easy to digest and eat old age Low fat low calorie health conscious adults S
weet meat young adolescents Stage in lifecycle Divorce, remarriage , widowhood l
ife circumstances have an effect on consumer behavior.
Occupation and financial status Blue collared worker Lunch box, work clothes, wo
rk shoes. White collared executives laptop,travel,adventure Personality , self c
oncept, Lifestyle affect buying behavior e.g. Choice of apparel ,Real estate, ho
me appliances, automobiles Personality psychological characteristics that give e
nduring & consistent responses to the environment
Motivation : Why one buys and when? Perception : interpret information to create
meaningful picture of the world. Understanding Customer s perception would help
marketers creating a proper image around the brand (Positioning) Beliefs and at
titudes Learning test rides , free samples are aimed at changing attitudes towar
ds the product
Initiator gives the idea of purchasing the product Influencer- advices and influ
ences the purchase decision Decider a person who decides where ,when , how to bu
y a product Buyer actually purchases the product User final beneficiary who uses
the product Maintainer- repairs /services the product Disposer a person who dis
poses the product
Extensive problem solving buying behavior Expensive and infrequently purchased p
roducts Consumers collect a lot of data High involvement product Marketers must
differentiate their brand to stay ahead of competition Marketers must help custo
mers know the brand E.G : Washing machine, music system, automobiles
Routine buying behavior.

Routine purchases Low involvement products Salt In case the customer reaches for
the same brand, it is due to habit and not brand loyalty necessarily
Variety Seeking behavior Need for variety is felt by the consumer Brand switchin
g for variety than satisfaction reasons E.g: Cookies
Impulse buying behavior On the spot decision Instantaneous purchase Marketers lu
re customers through free gifts ,discounts. In store displays-danglers, banners,
cut outs Point of purchase communication Sensory Branding
Problem /need recognition Information search Evaluation of alternatives Purchase
decision Post purchase behavior
A person recognizes a need or a problem Internal stimuli Hunger External stimuli
-Ads Marketers need to identify stimuli that trigger needs
 1. 2.
Two levels of arousal Heightened attention : more receptive to information about
the product Active information search calls up friends ,visit stores. Sources o
f Consumer Information Personal sources- family ,friends ,neighbors Commercial s
ources- dealers, sales persons. Ads, displays Experiential sources- handling the
product ,free samples /test rides. Public sources media, Testing labs.
Awareness set total set of brands Contender set applies criteria like budget, pr
eferences. Choice set strong contenders form which he /she will purchase
Consumers seek bundle of benefits E.g : while buying a camera picture ,focus ,si
ze and speed Customers develop brand beliefs on every attribute of the brand. Cu
stomers believe that Olympus camera has better focus ,pocket friendly (Denim poc
kets) These set of beliefs enable consumers to develop Brand image
Factors affecting purchase decision Attitude of others-Purchase intention adjust
ment Unanticipated situational factors health , job , death of spouse. Perceived
risk money ,self confidence , Attribute uncertainty Decisions Brand vendor- qua
ntitytiming-payment
Concept of satisfaction /delight Cognitive dissonance when he does not get all t
he benefits he was looking for or competitor s brand offers his sought benefits
Reinforce: yehi hai right choice baby Educate the consumer for proper usage Wash
ing machines for making lassi in Punjab Disposal no harm to the environment-Koda
k , HP empty cartridges, Samsung damaged mobile handsets
Professionally and technically qualified buyers 0 or 1 level channel Performance
,reliability , durability Packaging is more protective than being promotional I
mpulse buying is rare Multiple buying influences Negotiations/tenders and biddin
g
Straight rebuy regular and routine purchases like consumables , tools, spares. M
odified rebuy specifications of products to be purchased change, need to look ou
t for new suppliers along with the existing suppliers . New task buying-complete
ly new products Process of Buying
Demographic o Industry which industry should we focus on? o Company size what si
ze companies should we focus on? o Location what geographical areas should we fo
cus on?
b. o o
Operating variables Technology what customer technology should we focus on? Usag
e status Should we focus on heavy, medium, light users or nonusers? Customer cap
abilities Should we focus on customers needing many or few services?
c.
o o
o
Purchasing approaches Highly centralized or decentralized purchasing organizatio
n Engineering dominated, financially dominated. Strong relationships or go after
most desirable companies. Leasing, service contracts, system purchase, sealed b
idding Companies seeking qualities, service, price purchasing criteria
d. o o o
Situational factors Urgency needing quick & sudden delivery or service. Specific
application certain application or all application. Size of order large or smal
l orders
e. o o o
Personal characteristics Buyer sellers similarity companies whose people & value
s are similar to ours. Attitude towards risk risk taking or risk avoiding compan
ies. Loyalty companies that show high loyalty to their suppliers.