1 CB Introduction 2023.pptx

Dr. Rajesh K Satpathy
Consumer
Behaviour
CB CL-1 | KIM – H | 2023

Introduction
 The key to success for any business today lies in identifying
customer needs and providing desired satisfaction through a
mutually beneficial exchange of goods and services.
 In the complex and dynamic environment that organizations
experience today, marketers can no longer have a laid-back
attitudewith respect to their objectives and strategies.

Introduction
 Marketers need to be ‘customer-centric’ in orientation and
design their marketing programme accordingly.
 A comprehensive yet meticulous knowledge of consumers and
their consumption behaviour is essential for a firm to succeed.
 Herein lies the essence of consumer behaviour or buyer
behaviour, an interdisciplinary subject that emerged as a
separate field of study in the 1960s.
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TheInterdisciplinaryNatureofConsumerBehaviour
 Why does a consumer (or YOU) buy a product or brand?
 What motivates some customers to buy two-bedroom flats and others
to buy bungalows/condominiums?
 How does the colour of packaging affect the brand choices?
 Why do some consumers prefer shopping in malls and others in small
departmental stores?
 Why does a daughter prefer buyingbrands that her mother buys?
 Why do consumers think favourably of brands that are high on brand
equity?
 Why do some consumers make quick purchase decisions with respect
to a product or brand,and others take longerto do so?

TheInterdisciplinary NatureofConsumerBehaviour
The MOSQUITO ECONOMY: Over 7,25,000 deaths and an
INR 25,000 crore industry… Source:ET

In 1952, Keshav Vishnu Pendharkar founded the Vishnu Industrial Chemical
Company, or VICCO at a chawl in suburban Mumbai (then Bombay).

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Why do people buy such products or brands that
people in their peer groups possess?
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::Fact::
India today is just not only the global leading milk producer but has
also become the largest consumer of milk. Post forecasts India's 2022
production at 700,000 metric tons (MT), an increase of almost 3 per
cent above the USDA official 2021 figure of 680,000 MT.
Source:US Department of Agriculture

MarketersSpeak-1
India’s organised dairy segment has seen an annual growth of about 22
per cent over the last five years, and the segment is on track to account
for a quarter of the country’s dairy market by 2022, compared with 19
per cent this year,according to a report by CRISIL ratings.
‘Changing consumer preferences is the key reason for the organized
sector to grow at a faster pace. The rising purchasing power and
increasing health consciousness of the consumers have shifted their
preference towards branded products.
- Mr.AnujSethi
Director,CRISIL

 Why do people look upto ‘others’ while making
purchase decisions?
 Why does a person eat in an expensive place
when he /she is with friends? (especially when
he / she eats just anywhere when he / she is
alone)!!!
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 How do customs and traditions influence
what we buy and when we buy?
 How do changing lifestyles influence
customer choices and preferences?
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 How does a person prioritize his /her product
preferences?
 How does income affect consumer choice with
respect to products or brands?
 Why are some consumers more price-sensitive
than others?
 Why are some consumers deal-prone, and
always look for rebates and discounts?
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ElementsinConsumer Behaviour
Cognition Affect
Behaviour:
Acquiring
Consumer
Behaviour
Pre-Purchase:
Evaluating
alternatives
Post-Purchase:
Using,Disposing
Environment
Environment

::MarketingImplications::
 Studying the behaviour of consumers can help marketers design
their marketing strategies to reach the consumers and meet their
needsmoreeffectivelyandefficiently.
 It also aids them in analyzing the marketing environment and
identifying new opportunities, target marketing and designing
theperfectmarketingmix.

Consumer behaviour may be defined as “the interplay of forces that takes
place during a consumption process, within a consumer’s self and his /
her environment”,and has the following characteristics:
• This interaction takes place between three elements, namely Knowledge
(cognition),Feeling(affect),andAction(behaviour).
• It continues through pre-purchase activity to the post-purchase
experience.
• It includes the stages of evaluating, acquiring, using, and disposing of
goods and services.
DefiningConsumerBehaviour

The subject of consumer behaviour is viewed as an edifice or
association of the marketing concept, an important
orientation in Marketing Management.
The study helps YOU understand the internal (individual
determinants) and external (environmental factors) forces
that compel people to act out different consumption patterns
and behaviours.
Why study ConsumerBehaviour?

Consumer Behaviour is complex and compounded, and
explanation to behaviour relates to Economics, Psychology,
Sociology, Social Psychology, and Anthropology.
Other than the subject being an inter-disciplinary one, it also
deals with issues related to cognition, affect, and behaviour in
consumption patterns, against the backdrop of individual and
environmental determinants.
Nature and Scope of ConsumerBehaviour

The individual determinants pertain to an individual’s internal
self;they include psychological components such as…
• personalmotivationandinvolvement,
• perception,
• learningandmemory,
• attitudes,
• self-concept andpersonality, and
• decision-making.

Theenvironmental determinantspertainto external influences
surroundinganindividual;they include…
• sociological,
• anthropological,and
• economic components such as…
- family,
- social groups,
- reference groups,
- social class,
- culture, sub-culture and cross-culture, and
- national and regional influences.

‘What’ the consumers buy: goods and
services
‘Why’ theybuyit:need and want
‘When’ do they buy it (time): day, week,
month,year, and occasions
‘Where’ theybuyit:place
‘Howoften they buy’it:time interval
‘Howoften they use’it:frequency of use
The scope of ConsumerBehaviour
includes within its ambit the
answers to the following:

Basic
components/elements
of Consumer Behaviour
includes…
Consumers
Decision-making (Cognition And
Affect)
Actual purchase (Behaviour)
Exchange process
Individual determinants and
environmental influences
Buying roles

The three terms, ‘Customer’, ‘Client’, and ‘Consumer’ are often used
interchangeably.
This is because they all go through the buyer decision-making
processandtheyall buygoodsandservices.
However,thethreetermscanbedifferentiated.
Customer,
Client
and
Consumer

Consumerstoday havewider accessto information than ever before.
The consumer is powerful, ever-demanding, and often assertive. The power dynamics
hasshifted infavour of alargenumberof buyers, with varied needsandwants.
The earlier pattern of consumer decision-making, which was essentially socially
directed and collective in nature, has evolved into a system that is ‘Me and I’, rather
than ‘We and Us’. There hasbeen ashift towardsindividualism now.
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The keyto success is not‘customersatisfaction’,but‘customerdelight’.
The Changing Marketing Scenario
2023

Consumer behaviour is viewed as
the edifice of the marketing concept,
which is essentially, as we have seen
earlier,
acustomer-centredphilosophy.
The knowledge
behaviour would
of consumer
help formulate
appropriate
marketingstrategiesforafirm.
Application of
ConsumerBehaviour

 AnalysingtheMarketingEnvironment
 Segmentation,Targeting,andPositioning
 DesigningtheMarketingStrategy
 DesigningtheMarketingMix (The4P’s)
 Application in governmental and non-profit organizations and social
marketing
Consumer Behaviour has a number of Applications…

1. Consumer behaviour involves a process of exchange
between the buyer and the seller, mutually beneficial for
both.
2. Consumer behaviour is dynamic and interactive in nature.
3. The subject can be studied at micro or macro levels
depending upon whether consumer behaviour is analysed at
the individual level or at the group level.
Characteristics of Consumer Behaviourinclude the following:

4.The subject is interdisciplinary.
5.As a field of study, it is descriptive as well as analytical.
6.The subject is a Science as well as an Art.
7. Consumer behaviour is person-specific as well as
family-(household) specific.
Characteristics of Consumer Behaviourinclude the following:

1 CB Introduction 2023.pptx

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