Consumer

Behavior
The most important thing is to
Forecast where consumers are
Moving and be in front of them
-Philip Kotler
Group 4
Noopur Shah
Nitesh Sah
Rahul Joshi
Vinay Bansal
Vishal Gupta
Gargi Gupta
WHEN TO BUY?
WHY TO BUY?
HOW TO BUY? WHERE TO BUY?
CONSUMER
BEHAVIOR
Consumer Behavior
STUDY OF INDIVIDUALS, GROUPS OR ORGANIZATIONS; THEIR DECISION
MAKING PROCESS & ITS IMPACT ON CONSUMER & SOCIETY
CULTURE
S
O
C
I
A
L

FAMILY
Attitude
FACTORS AFFECTING
PURCHASE DECISION
Consumer Behavior
PURCHASE DECISION PROCESS
Post Purchase Behavior
Purchase Decision
Evaluation of Alternatives
Information Search
Need Recognition
Consumer Behavior
Need Recognition
Marketing helps
consumers recognize (or
create) an imbalance
between present status and
preferred state
When a current product isnt
performing properly

When the consumer is running
out of an product

When another product seems
superior to the one currently used
Consumer Behavior
The information search stage
Internal search
for frequently purchased products
scanning one's memory to recall previous experiences
External search
when past experience or knowledge is
insufficient
the risk of making a wrong purchase
decision is high, and/or the cost of
gathering information is low.
Personal sources
(friends and family)
Public sources (rating
services like Consumer
Reports, online
feedback)
Marketer-dominated
sources (advertising
or sales people)
Brands from which buyer can choose
Consumer Behavior

go back to your past purchase what were the specific
internal and external sources of information that influenced
your decision?

how do you determine (and rate) the credibility of these
sources?

what specific information influenced you?
EVALUATION OF ALTERNATIVES &
PURCHASE DECISION
Consumer Behavior
Post Purchase Behavior
Consumer Behavior
Purchase
Usage
Evaluation
Satisfaction
Committed
Customers
Repeat
Customers
Increased
Use
Brand
Satisfaction
Discontinued
Use
Post purchase
Dissonance
Product
Disposal
Non-Use
Complaint
Behavior
Indian Consumer Market
Diversified
Economic
Status
Language
Region
Social
Status
Religion
Consumer Behavior
Challenges in Indian Consumer Market
Before Liberalization
Foreign Goods - Superior
Poor Quality Product by Indian
Companies
Spirituality and Culture
Choice Constraint
Controlled Prices
After Liberalization
Indian Goods are GOOD
Good Quality Product by Indian
Companies
Modernization
Income Constraints
Limited control on Prices, sector
and product specific like Pharma
Consumer Behavior
Consumer Behavior
Economic Growth
Employment Opportunities
10 years average GDP 8%
Rising Income of middle class

Motivated Society
Attraction towards foreign goods
Personal Ambitions
Flexibility to modernize
Changing Preferences
Savings for Electronics, Durables, Child Education
Travel and Entertainment
Work hard, earn more
Market Attraction
Market Scope
0
5
10
15
20
25
30
35
40
45
1
7
1
8
12
6
12
2
18
17
13
41
7
22
1996
2006
(%age of Indians who own or use)
Market Scope
0
10
20
30
40
50
60
70
Children's
Education
Electronic &
Durables
Travel &
Entertainment
63
29
21
62
60
40
Increasing Consumers Saving Goals
1996
2006
(%age of Indians who identified these as among their goals)
Marketers Strategy
Customization of
products as per
consumer values
Indigenization
Joint Ventures with
Indian Companies
Consumer Behavior


How Big is Tall

Forethought Marketing
Advent of Evocative Labels
Companies use labels like Super Size,
Value Size, Double Gulp, Whopper etc. to
make their products stand out.

To discourage consumers from making
direct brand comparisons, businesses
create ambiguous portion sizes like Tall,
Sixteen, and Power.

Forethought Marketing
Study on Consumer
Perception of product sizes
14 product labels including conventional sizes
like small, medium, large and newly invented
sizes like super quencher and big kids were
given to consumers.

Consumers were asked to arrange the labels
in order.

Consumers had clear ideas about product
sizes.
Forethought Marketing
The Big Gulp
Playing with Customers Mind
Variants of Big Gulps
Forethought Marketing
Perception affecting
behaviour
Two groups were served similar sizes under
different labels of medium and large.

Group given portion labelled medium
ate 35 % more than those whose portions
were labelled as large.

Forethought Marketing
Perception of the word Tall
Forethought Marketing
Conclusion
The study revealed that customer perception of a
label influences customer consumption and hence
companies should strategically label their products.

Forethought Marketing
THANK YOU


Forethought Marketing