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Consumer Buying
Behaviour
Jyostna Jain
Consumer
Buying
Behaviour
 Consumer buying behavior refers to the actions and
decisions individuals take when purchasing goods or
services for personal use
Consumer
Involvement
 Consumer involvement refers to degree of information
processing or extent of importance that a consumer
attaches to a product.
 The degree of involvement has a very significant effect
on consumer behavior.
 When more expensive products are to be purchased,
the consumer gets more involved in purchase process
but he may not be equally involved in a product which
is just a rupee or two priced
High
involvementVS
Low
involvement
 High involvement implies a significant level of interest,
often associated with expensive, complex, or
emotionally resonant purchases, requiring thorough
research and careful consideration.
 Low involvement, on the other hand, characterizes
purchases that are routine, inexpensive, and require
minimal effort or deliberation.
High Involvement Examples:
•Buying a house: This is a major financial decision with long-term implications, requiring extensive
research, multiple viewings, and negotiation.
•Purchasing a car:Similar to buying a house, a car is a significant investment with many factors to consider,
including model, features, price, and financing.
•Choosing a wedding dress:This is a highly emotional and symbolic purchase with significant social and
personal implications, requiring careful consideration of style, fit, and budget.
Low Involvement Examples:
•Buying groceries:Routine purchases like milk, bread, or eggs are typically low-involvement decisions,
made with minimal thought or research.
•Purchasing candy or snacks:These impulse buys are often made without much prior thought or planning.
•Choosing a brand of toothpaste or soap:These are often habitual purchases where consumers stick with
familiar brands, and little effort is put into comparing alternatives.
Cognitive
VS
Emotional
Cognitive Consumer Behavior:
 Focus: Logic, reason, and information processing.
 Decision-making: Involves evaluating product features,
comparing alternatives, and making rational choices based on facts
and figures.
 Marketing implications: Highlighting product features, providing
detailed information, and appealing to consumers' desire for value
and functionality.
Emotional Consumer Behavior:
 Focus: Feelings, moods, and sentiments.
 Decision-making: Involves making choices based on emotions,
personal experiences, and gut feelings. .
 Marketing implications: Creating emotional connections with
consumers, building brand loyalty through storytelling, and using
sensory marketing to evoke positive feelings.
Buying a Car (High Involvement Product):
•Cognitive Factors:
• Fuel Efficiency: Researching miles per gallon (MPG) to save on gas costs.
• Safety Ratings: Checking crash test results (e.g., NCAP ratings) to ensure family safety.
• Reliability: Looking up consumer reports and reviews for common mechanical issues and
maintenance costs.
• Price and Budget: Comparing prices across different dealerships and models to get the
best value within a set budget.
• Features: Evaluating features like cargo space, infotainment system, and connectivity based
on practical needs.
•Emotional Factors:
• Status/Image: Choosing a luxury brand to feel successful or project a certain image.
• Excitement: Feeling a thrill during a test drive, or the anticipation of owning a new car.
• Freedom/Adventure: Associating a particular SUV or sports car with a lifestyle of
adventure or independence.
• Nostalgia: Buying a specific classic car because it reminds them of their youth or a
cherished memory.
• Fear of Missing Out (FOMO): Purchasing a car during a limited-time sale to avoid missing
a "great deal."
Optimizing
VS
Satisficing
Optimizing:
 Goal: To find the absolute best or optimal solution among all available options.
 Process: Involves extensive research, comparison, and evaluation of
alternatives.
 Characteristics: May involve spending significant time and effort to identify
the perfect choice.
 Example: A consumer meticulously researching different models, features, and
prices of laptops before making a purchase.
Satisficing:
 Goal:To find a solution that meets the minimum acceptable criteria, rather than
the absolute best.
 Process:Involves setting an aspiration level and choosing the first option that
meets that level.
 Characteristics:Saves time and effort by not pursuing the absolute best option.
 Example:A consumer choosing the first restaurant they see that has a
vegetarian option, without comparing menus at other restaurants.
Compensatory
andNon-
compensatory
decision-making
 Compensatory strategies allow a weakness on one
attribute to be offset by a strength on another, while
non-compensatory strategies do not allow for such
trade-offs.
 Compensatory models consider the overall product
offering, while non-compensatory models focus on
specific, non-negotiable criteria.
 Non-compensatory strategies involve setting minimum
standards or cutoffs for each attribute. If an option
doesn't meet the minimum standard for even one
attribute, it's eliminated from consideration, regardless
of its performance on other attributes.
Examples of Compensatory decision making
Buying a Car: You're looking for a new car. Car A is a bit more expensive than Car B, but it has
significantly better fuel efficiency and a longer warranty. In a compensatory decision, you might decide
that the superior fuel efficiency (a strength) compensates for the higher price (a weakness), and you
choose Car A.
Choosing an Apartment: An apartment might be further from work (a negative) but has a significantly
lower rent and more amenities (positives).You might decide the lower rent and amenities make up for
the longer commute.
Examples of Non-compensatory decision making:
Example: Buying a Smartphone: You decide you will only consider smartphones with a battery life of
at least 10 hours and a camera resolution of at least 12 megapixels and a price under $500. If a phone
has an amazing camera and is cheap but its battery life is only 8 hours, you immediately eliminate it.
Vacation:You might choose a destination if it has world-class beaches OR incredible historical sites,
even if it's not known for its nightlife or shopping.
Motivation
Motivationistheinternaldrivethat
compelsanindividualtotakeaction
tosatisfyanunfulfilledneedor
want.It'sthe"why"behind
consumerbehavior.
 Role in Consumer Buying Decisions:
 Need Recognition: Motivation starts with the recognition of a need.
This could be a basic physiological need (hunger, thirst) or a
psychological need (status, belonging, self-expression). Marketers
often trigger or highlight these needs.
 Example: A consumer in Boisar, experiencing the monsoon season,
feels a strong need for a reliable waterproof backpack
(safety/practicality need) to protect their belongings during daily
commute or travel.
 Live Example (current trend): The increasing awareness about health
and fitness post-pandemic motivates many in Maharashtra to sign up
for gym memberships or buy home exercise equipment to satisfy
their need for well-being and self-improvement.
 Goal-Directed Behavior: Once a need is recognized, the consumer
is motivated to find ways to satisfy it.This leads to information
search and evaluation of alternatives.
 Example: The individual wanting a waterproof backpack starts
researching brands online, visits local stores in Boisar, and compares
features and prices.
Maslow Need Theory
Attitudes
Anattitudeisalearned
predispositiontorespondina
consistentlyfavorableor
unfavorablewaytowardanobject,
idea,person,orbrand.Theyare
relativelystableanddifficultto
change.
 Role in Consumer Buying Decisions:
 Favorable vs. Unfavorable Predisposition: Attitudes
guide consumers towards or away from certain
products or brands. A positive attitude towards a brand
makes a purchase more likely; a negative one makes it
less likely.
 Example: If a consumer has a positive attitude towards
Reliance Digital due to past good experiences with their
customer service, they are more likely to visit it first when
buying a new appliance.
 Many consumers today hold a strong positive attitude
towards sustainable and eco-friendly products.This
might lead them to choose organic vegetables from local
vendors or brands that use recyclable packaging, even if
they are slightly more expensive.
Consumer Buying Behaviour.pptx for mms sem 3
Perception
Perceptionistheprocessbywhich
individualsselect,organize,and
interpretinformationtoforma
meaningfulpictureoftheworld.It's
abouthowconsumers"see"or
makesenseofmarketingstimuli.
 Role in Consumer Buying Decisions:
 Selective Attention: Consumers are bombarded with information.They
selectively pay attention to stimuli that are relevant to their needs or
interests.
 Example: A resident of Boisar planning a summer vacation will suddenly start
noticing advertisements for travel packages to Goa or Himachal Pradesh,
while ignoring ads for home décor.
 A person actively looking to buy a new EV (Electric Vehicle) will perceive
and process every piece of information related to EVs – news articles,
charging station locations, government subsidies – far more readily than
someone not in the market.
 Selective Distortion: Consumers often interpret information in a way that
supports their existing beliefs or attitudes.
 Example: If a consumer believes that "local street food" is generally
unhygienic, they might interpret a minor stomach upset after eating out as
confirmation of their belief, even if the cause was unrelated.
 Selective Retention: Consumers tend to remember information that aligns
with their existing beliefs and forget information that contradicts them.
 Example: A loyal "Jio" user is more likely to remember positive news about
Jio's 5G rollout and forget any negative reports about network glitches.
Learning
Learninginconsumerbehavior
referstochangesinanindividual's
behaviorarisingfromexperience.It
involvesacquiringknowledge,skills,
beliefs,andattitudesthrough
exposureandpractice.
 Role in Consumer Buying Decisions:
 Experience and Repetition: Consumers learn from past purchasing experiences (both
positive and negative), product use, and exposure to advertising.
 Example: A positive experience with Amazon's fast delivery service for a purchase will
reinforce the likelihood of future purchases from Amazon. Conversely, a poor experience
with a local laundry service will lead to avoidance.
 Many individuals have learned the convenience and efficiency of online payment apps
like UPI (Google Pay, PhonePe). A positive first experience encourages them to use it for
almost all their transactions, from buying groceries to paying bills.
 Stimulus Generalization: Consumers often generalize their positive experiences with
one product or brand to other similar products or brands, especially those under the
same brand umbrella.
 Example: If a consumer is happy with Tata Tea, they might be more inclined to try Tata Salt
or Tata Sampann dals, generalizing their positive perception of the Tata brand to its other
products.
 Stimulus Discrimination: Consumers learn to distinguish between similar stimuli and
choose specific brands over others.
 Example: While there are many fast-food chains, a consumer might have learned through
experience and taste preferences that only McDonald's provides the specific taste and
experience they prefer for burgers.
 Reinforcement and Punishment: Positive experiences (reinforcement) lead to repeat
behavior. Negative experiences (punishment) lead to avoidance.
 Observational Learning: Consumers also learn by observing others (friends, family,
celebrities) and their consumption patterns.
 Example: A teenager might start using a particular skincare brand because their favorite
Bollywood celebrity endorses it on Instagram or because their friends are using it and
getting good results.
Stage Description Example
Need Recognition
Realize a
problem/need
Laptop not
working need
→
a new one
Information Search
Explore options
via reviews,
friends, etc.
WatchYouTube
reviews, search
Flipkart, ask
friends
Evaluation
Compare
brands/features
Compare HP vs
Lenovo vs Apple
Purchase Decide and buy
Buy Lenovo due
to specs +
student discount
Post-Purchase
Evaluate
satisfaction
Happy with
purchase,
recommend to
peers
Consumer Decision Making Process
Marketers tailor campaigns to influence
each stage:
• Google Ads / Influencers for
awareness.
• Detailed product pages for
information.
• Comparison tools and reviews for
evaluation.
• Offers and EMI schemes for
purchase.
• Customer service & feedback
collection for post-purchase.
Prospect
Theory (DanielKahneman
&AmosTversky)
 Prospect Theory explains how people make decisions
between alternatives that involve risk. Instead of making
purely rational decisions, consumers are more sensitive to
losses than to gains.
 Eg:losing 100 feels worse than gaining 100 feels good.
₹ ₹
 Impact on Consumer Psychology:
Consumers avoid risk when a gain is likely (risk-averse).
Consumers take risk when avoiding a loss (risk-seeking).
 🔹 Example:
 A shopper may avoid spending 1,000 on a new skincare
₹
product — even if it promises great results — because the
risk of losing that money feels stronger than the
potential gain of better skin.
 But, if a product says “Buy now or price increases
tomorrow,” consumers may rush to buy it to avoid the loss.
Endowment
Effect
 The Endowment Effect is a psychological bias where
people value something more just because they own
it — even if they only got it recently or it’s not that
special.
Examples of Endowment Effect
Personalized Products
•You design your own t-shirt online (pick color, add
name).
•Even before receiving it, you feel it’s more valuable
than a regular store t-shirt.
✅ Customization gives a sense of ownership,
triggering the Endowment Effect.
Free Trial Subscriptions
•You get a 30-day free trial of Amazon Prime.
•After using it for a month — fast delivery, Prime Video, deals — you start liking it.
•When the trial ends, you’re willing to pay for it even though earlier you might have said, “I
don’t need Prime.”
✅ Why? Because now it feels like yours, and you don’t want to lose it.
•Zomato & Swiggy:Use push notifications like: “Hurry! 100 off only for 1 hour!” — leveraging
₹
Prospect Theory.
•Apple:Once you use an iPhone and personalize it (apps, data, settings), you're less likely to switch
brands — the Endowment Effect keeps you loyal.
•Myntra:Shows a countdown timer and “Only 2 left in stock” to create loss aversion.
Influenceon
Diffusionof
Innovation
•Relative Advantage: How much better is the innovation compared
to existing solutions? The greater the perceived advantage (e.g., in
terms of efficiency, cost-effectiveness, or social prestige), the faster
its adoption.
•Compatibility: How consistent is the innovation with existing
values, experiences, and needs of potential adopters? If it aligns
well, adoption is quicker.
•Complexity: How difficult is the innovation to understand and use?
Simpler innovations are adopted more readily.
•Triability: Can the innovation be experimented with on a limited
basis? Allowing for trials reduces perceived risk and encourages
adoption.
•Observability: Are the results of the innovation visible to others?
When the benefits are clear and easily demonstrated, it encourages
others to adopt
The9xEffect
The"9xEffect"isaconceptthatexplains
whymanynewproductsand
innovationsfailtogaintractiondespite
seemingsuperiortoexistingalternatives.
Itstatesthatforanewproductto
succeed,itneedstobeperceivedasnine
timesbetterthanthecurrentsolution.
Example:Air Fryer Fries
 Company's Perception (3x Better):
 The air fryer manufacturer sees their product as revolutionary for fries.They
envision perfectly crispy fries with almost no oil, making them healthier and
guilt-free.They highlight the convenience, less mess, and the ability to enjoy a
"fried" indulgence without the deep-fryer drawbacks.They believe it's easily
3x better than the old way.
 Consumer's Initial Perception (3xWorse / 3x Better Old):
 Deep Fryer User: "My deep-fried fries are the crispiest! An air fryer can't
possibly give me that same crunch without all the oil. It sounds like a glorified
convection oven, and my oven already makes 'baked' fries that are just okay.
Plus, it's another appliance to buy and find space for." They might perceive
the air fryer fries as less authentic or crispy, and the effort to learn a new
appliance as a cost.
 Oven Baker: "I already bake my fries for health.They're not super crispy, but
they're easy. Does this air fryer really do that much better? Is it worth the cost
and counter space for marginally crispier fries?"
 The 9x Overcoming Point:
 For the air fryer to achieve mass adoption for fries, it had to consistently
deliver results that were undeniably crispy (approaching deep-fried
crispness) AND significantly healthier/easier to clean. Only when people
saw demonstrable proof (through friends, reviews, social media videos) that
air fryer fries could be genuinely crispy, without the greasy mess and health
concerns of deep frying, did they start to switch.The perceived benefits had
to be overwhelmingly superior to the comfort and familiarity of their existing
methods, overcoming that combined 3×3=9 bias.
CapturingValue
fromInnovation
1.Intellectual Property (IP) Protection:
Secure patents, copyrights, trademarks, and trade secrets to protect your innovation from
imitation and gain exclusive rights. This creates a temporary monopoly, allowing you to
charge premium prices or license your technology.
o Example: Pharmaceutical companies heavily rely on patents for new drugs. The patent
period allows them to recoup their significant R&D investments before generic versions
can enter the market.
2.Innovative Business Models:
Change how you deliver value to customers and how you generate revenue. This can be
more powerful than just a new product.
o Examples:
o Subscription Models (e.g., Netflix, Adobe Creative Cloud): Instead of one-time
purchases, customers pay recurring fees for access to a service or software. This
provides predictable revenue streams and fosters long-term customer relationships.
o Freemium Models (e.g., Spotify, Dropbox): Offer a basic version of your
product/service for free to attract a large user base, then charge for premium
features or enhanced functionality.
3.Strategic Pricing:
Align your pricing with the perceived value your innovation delivers. This can involve
dynamic pricing, tiered pricing, or value-based pricing.
o Examples:
o Dynamic Pricing (Airlines, Ride-sharing): Adjust prices based on real-time
demand, supply, and other factors to maximize revenue.
o Value-Based Pricing (High-tech B2B software): Price based on the quantifiable
benefits (e.g., cost savings, increased revenue) the customer gains from using the
innovation, rather than just the cost of production.
Consumer Buying Behaviour.pptx for mms sem 3
Womeninworkforce
anditsImpacton
ConsumerBehaviour
 Increased Disposable Income and Purchasing Power
 Shift in Decision-Making Dynamics within Households
 Changes in Product and Brand Preferences
 Evolving Shopping Habits and Channels
 Impact on Marketing and Advertising Strategies
Examples:Cosmetics and Makeup: While traditional
use was limited, working women are more likely to
purchase a wider range of makeup for daily use,
including foundations, concealers, lipsticks, and
eyeliners.
Examples
 Fusion Wear (Indo-Western): Many brands now offer a blend of Indian and Western styles, like kurtis
paired with denims or ethnic jackets over Western tops, catering to the need for comfortable yet
professional attire.
 Online Grocery Platforms: Apps like BigBasket, Zepto, and Blinkit are heavily used for grocery
shopping, saving commute time and allowing for ordering at any hour.
 Daycare and Preschools: Demand for quality childcare facilities has surged.
 Personal Loans and Credit Cards: Used for various purposes, from managing expenses to funding
personal aspirations.
 Instant Mixes: Sales of instant idli, dosa, gulab jamun, and other traditional Indian dish mixes have
surged. Brands like MTR, Gits, and Ashirvaad have seen high demand for these products.
 RoboticVacuum Cleaners: Brands like Eureka Forbes, iRobot, and Xiaomi have found a market for
robotic vacuums that can clean homes with minimal supervision.
Declining
MiddleClass
 A "declining middle class" means that this middle part
of the ladder is getting smaller. More people are either
falling into the poorer group, or a few are moving into
the richer group, but the solid middle is shrinking.This
often happens because their incomes aren't growing as
fast as the cost of living (like food, rent, education).
Example:Before: A middle-class family might regularly buy
branded chips, expensive juices, or go to a nice restaurant every
weekend.
Now: They might switch to cheaper, local brands for snacks, make
juices at home, or reduce eating out to once a month or only for
special occasions. They'll definitely buy food and pay rent, but
those "extras" get cut.
 Instead of buying a new smartphone every year, they'll use their
old one for much longer, or buy a cheaper model.
Example
• When you open Amazon or Flipkart, the "Recommended for you" section isn't random. It's AI
suggesting things based on your past shopping, what similar users bought, and current trends.
Similarly, Netflix suggests movies you might like, and Spotify curates "Discover Weekly"
playlists.
• A health app powered by AI might suggest a specific supplement or a diet plan based on your
activity levels, dietary habits, and stated goals, or even prompt you to reorder something you
usually buy monthly.
• Lenskart's virtual try-on for spectacles, or a furniture retailer's app that lets you see how a sofa
would look in your living room using your phone's camera.
• If you ask Alexa to "order a pizza," it might default to Domino's or Pizza Hut based on your past
orders or its own partnerships, rather than letting you browse all local pizza places.This gives
the assistant platform immense power.
BrandCulture
vs
Material
Makers
•Material Makers: These are the companies or processes that produce the
physical goods or deliver the tangible services. They focus on functionality, quality
of materials, manufacturing efficiency, logistics, and the literal creation of the
product.
•Example: A textile manufacturer that weaves fabric for clothes, or a company that
assembles smartphones. Their primary concern is the physical attributes and
production.
•Brand Culture: This refers to the shared values, beliefs, attitudes, practices,
and emotional connections that define a brand. It's the "personality" and "soul" of
the brand, extending beyond the product itself. It's about why a brand exists, what it
stands for, and how it interacts with the world. It encompasses the internal company
culture as well as the external perception.
•Example: For Apple, the "material makers" create the iPhones. But the "brand
culture" is about innovation, sleek design, user experience, exclusivity, and a
certain lifestyle that loyal customers identify with. It's about being a "think different"
brand.
RoleofStories,Images,and
AssociationsinCreating
BrandsasCulturalArtifacts
 Stories: Stories provide context, emotion, and a human
element to a brand.They explain the "why" behind the
brand, its origins, its challenges, its triumphs, and its impact.
Stories that highlight the brand's commitment to social
causes, sustainability, or community (e.g.,Tata Tea's "Jaago
Re" campaigns addressing social issues in India).
 Images are powerful, instant communicators of brand identity,
personality, and aspirations. They create immediate
recognition and emotional resonance. Iconic logos like the
Nike swoosh, Apple's bitten apple, or the Amul Girl (in India)
become shorthand for entire sets of values and associations.
 Associations: Brands build associations by linking
themselves with ideas, feelings, lifestyles, people, or other
entities that consumers already value. Associating with a
respected athlete (e.g.,Virat Kohli for Puma/MRF) or actor
can transfer their admired qualities to the brand.
Brand Values: Reputational, Relationship, Experiential, Symbolic
• ReputationalValue: This refers to the value derived from a brand's standing, trustworthiness, and credibility in the market
Example: Tata Group in India has immense reputational value built over decades of ethical practices, quality products, and
community involvement. Consumers trust a "Tata" product or service implicitly, whether it's salt, steel, or software.This value
reduces perceived risk for the consumer.
• RelationshipValue: This value stems from the emotional connection, loyalty, and sense of belonging a consumer feels with a
brand. It's built through consistent positive interactions, personalized experiences, and community building.
Example: Starbucks (even globally, but relevant in India) builds relationship value through its "third place" concept, personalized
orders, loyalty programs, and community initiatives. Customers feel a personal connection, not just to the coffee, but to the brand
experience.
• ExperientialValue:This value comes from the direct, sensory, and often emotional experiences consumers have when
interacting with a brand's products, services, or environments. It's about the "feel" and the "journey."
Example: Royal Enfield motorcycles offer a distinct experiential value in India. It's not just about transport; it's about the thump of
the engine, the feel of the ride, the camaraderie of fellow riders, the sense of adventure, and the vintage aesthetic. Symbolic
Value:This refers to the value a brand holds as a symbol of identity, status, aspirations, or values for the consumer. It's about what the
brand represents to the individual and to society.
• Symbolic Value: This refers to the value a brand holds as a symbol of identity, status, aspirations, or values for the consumer. It's
about what the brand represents to the individual and to society.
Example:
• Luxury Brands (e.g., LouisVuitton, Rolex): Often carry high symbolic value, representing wealth, status, and success.
Owning them communicates a certain identity.
• Patagonia: Holds symbolic value for consumers who identify with environmental sustainability and outdoor adventure.
Wearing Patagonia signals these values.
• Mahindra Thar: In India, owning a Thar often symbolizes ruggedness, adventure, and a certain aspirational lifestyle,
transcending its function as just an SUV.
BrandStorytelling:
ForgingEmotional
Connection
•Memory: Emotions are powerful anchors for memory.
People remember how a brand makes them feel more than
what it does.
•Trust & Loyalty: When consumers feel an emotional
connection, they develop trust. This trust translates into
loyalty, making them more likely to choose that brand
repeatedly, even over cheaper alternatives.
•Differentiation: In a crowded market, emotional resonance
is a strong differentiator. It gives the brand a unique
personality and voice that stands out.
•Advocacy: Emotionally connected customers are more
likely to become brand advocates, sharing their positive
experiences with others.
•Beyond Logic: Many purchasing decisions are driven by
emotion, then rationalized. A good story taps into those
underlying feelings.
Example (India): Tata Tea's "Jaago Re" (Wake Up) campaign. Their ideological message is not
just about tea, but about awakening social consciousness and encouraging active citizenship.The
ads often depict everyday scenarios where people need to "wake up" to social issues like
corruption, voting, or road safety.This connects with Indian consumers who value social
responsibility.
Dairy Milk's "Kuch Achha Ho Jaye, Kuch Meetha Ho Jaye" (Let Something Good Happen, Let
Something Sweet Happen) campaign: While not a single character, the characters in their ads
are often ordinary people celebrating small joys or making a difference.They encourage everyday
moments of sweetness and happiness, making consumers feel good about sharing Cadbury.
Surf Excel's "Daag Acche Hain" (Stains Are Good) campaign: The conflict is the societal
pressure to keep clothes spotless vs. allowing children to explore and learn, even if it means
getting dirty. Surf Excel positions itself as the solution, removing the conflict by ensuring stains are
no barrier to learning and fun.The message: "If there are stains, it means life is happening.“
They don't just show glue sticking things; their plots are often absurd, humorous, and memorable
narratives (e.g., the Fevicol bus carrying too many people, or the unshakeable egg).The "plot" of
these mini-stories is always about something being impossibly strong or stuck, leading to a
humorous resolution, showcasing the product's ultimate strength in a dynamic and unforgettable
way.
UseofHumor,Fear,
Romance,Ironyas
StorytellingDevicesto
ResonatewithConsumers
 Humor:Creates positive associations, makes a brand memorable,
and breaks down barriers. Laughter makes people feel good.
Coke's "Open Happiness" campaigns often use lighthearted,
humorous scenarios to show how a Coke brings joy and connection.
 Fear:Highlights a potential negative outcome if the consumer
doesn't use the product/service, or emphasizes the need for
protection/security. It creates urgency. Insurance ads often depict
scenarios of unforeseen illness, accidents, or financial distress to
underscore the need for their policies.
 Romance:Evokes feelings of love, desire, connection, and
aspiration. It can be about romantic love, self-love, or even the love
for a certain lifestyle. Tanishq jewelry ads often tell stories of love,
marriage, and family bonds, making their jewelry pieces symbolic
of these emotions
 Irony:Presents a contrast between expectation and reality, often
with a humorous or thought-provoking twist. It can be subtle or
overt, adding depth and intelligence to a story. Atta Noodles
Conscious
marketing
 It is a holistic marketing strategy rooted in a brand's
commitment to ethical practices and positive societal
impact. It's about demonstrating genuine care for
people and the planet, not just profit
 Brands in the garment industry that ensure ethical
working conditions and fair wages for their factory
workers, often getting third-party certifications. Some
handicraft brands work directly with artisan
communities, ensuring they benefit directly from their
craft.
 Companies offering refill stations for cleaning
products or personal care items (like The Body Shop,
Ecover). Brands creating products from recycled Tetra
Paks (e.g., benches, trays) or upcycled apparel waste.
Reducing the Carbon Footprint of the Supply Chain
1. Optimizing Transportation:
1. Route Optimization: Using software to plan the most efficient delivery routes, minimizing distance traveled and fuel consumption.
2. Consolidation: Combining shipments to fill trucks/containers more efficiently, reducing the number of trips.
3. Modal Shift: Switching from high-emission transport (e.g., air freight) to lower-emission alternatives (e.g., rail, sea freight) where
feasible.
4. Greener Fleets: Investing in electric vehicles (EVs) or vehicles powered by cleaner fuels for last-mile delivery and logistics.
2. Sustainable Sourcing and Supplier Engagement:Local Sourcing: Sourcing raw materials and components from closer to manufacturing
facilities to reduce transportation distances.Sustainable Suppliers: Partnering with suppliers who themselves have strong environmental
practices, use renewable energy, or have lower carbon footprints.Transparency & Data Sharing: Requiring suppliers to report their emissions
data to identify hotspots and work collaboratively on reduction goals
1. .
3. Efficient Manufacturing and Operations:
1. Renewable Energy: Shifting factories and warehouses to renewable energy sources like solar, wind, or hydro power.
2. Energy Efficiency: Implementing energy-saving technologies and practices in production (e.g., efficient machinery, LED lighting).
3. Waste Reduction: Minimizing waste during manufacturing processes and maximizing recycling.
4. Eco-Friendly Packaging:
1. Minimal Packaging: Reducing the amount of packaging material used.
2. Recycled Content: Using packaging made from recycled materials.
3. Biodegradable/Compostable Packaging: Switching to materials that break down naturally.
4. Reusable Packaging: Implementing systems for reusable crates or containers in the supply chain.
5. Circular Economy Principles:
1. Product Design for Durability & Repairability: Designing products that last longer and can be easily repaired, extending their lifespan.
2. Take-Back Programs: Offering programs for customers to return old products for recycling or refurbishing.
3. Using Recycled Content in New Products: Closing the loop by incorporating post-consumer recycled materials into new products
Review
Questions
 High/Low Involvement Products: You are marketing
manager for two products: A new brand of packaged atta
(flour) and a new model of electric car. Explain how the
level of consumer involvement (high vs. low) would differ
significantly for these two products. Describe two distinct
marketing strategies you would employ for each product,
specifically addressing their involvement levels to
influence consumer decision-making
 An Indian family is planning to buy their first
refrigerator.They have identified the need but are now in
the "information search" and "evaluation of alternatives"
stages.Describe three different sources of information
they are likely to consult (internal and external). How can
a refrigerator brand effectively influence their evaluation
process to be chosen over competitors during this stage?
Review
Questions
 A consumer wants to buy a new smartphone but is overwhelmed
by the number of choices.They decide to use a digital assistant
(e.g., Google Assistant, Alexa) for help.How can AI and digital
assistants navigate this consumer's choices and influence their
purchase decision? Discuss how this might reduce the traditional
role of brand recognition for certain consumers. Provide an
example.
 Select an Indian brand and describe how it uses "conflict" as a
driving force in its brand story to resonate with consumers.
What is the perceived conflict, and how does the brand position
itself as the solution or hero in that narrative?
 A prominent Indian food delivery company (e.g., Swiggy,
Zomato) wants to visibly reduce the carbon footprint of its
supply chain. Suggest two practical strategies this company can
implement to achieve this, focusing on different stages of their
supply chain. How would they communicate this effort to their
environmentally conscious customers?

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Consumer Buying Behaviour.pptx for mms sem 3

  • 2. Consumer Buying Behaviour  Consumer buying behavior refers to the actions and decisions individuals take when purchasing goods or services for personal use
  • 3. Consumer Involvement  Consumer involvement refers to degree of information processing or extent of importance that a consumer attaches to a product.  The degree of involvement has a very significant effect on consumer behavior.  When more expensive products are to be purchased, the consumer gets more involved in purchase process but he may not be equally involved in a product which is just a rupee or two priced
  • 4. High involvementVS Low involvement  High involvement implies a significant level of interest, often associated with expensive, complex, or emotionally resonant purchases, requiring thorough research and careful consideration.  Low involvement, on the other hand, characterizes purchases that are routine, inexpensive, and require minimal effort or deliberation.
  • 5. High Involvement Examples: •Buying a house: This is a major financial decision with long-term implications, requiring extensive research, multiple viewings, and negotiation. •Purchasing a car:Similar to buying a house, a car is a significant investment with many factors to consider, including model, features, price, and financing. •Choosing a wedding dress:This is a highly emotional and symbolic purchase with significant social and personal implications, requiring careful consideration of style, fit, and budget. Low Involvement Examples: •Buying groceries:Routine purchases like milk, bread, or eggs are typically low-involvement decisions, made with minimal thought or research. •Purchasing candy or snacks:These impulse buys are often made without much prior thought or planning. •Choosing a brand of toothpaste or soap:These are often habitual purchases where consumers stick with familiar brands, and little effort is put into comparing alternatives.
  • 6. Cognitive VS Emotional Cognitive Consumer Behavior:  Focus: Logic, reason, and information processing.  Decision-making: Involves evaluating product features, comparing alternatives, and making rational choices based on facts and figures.  Marketing implications: Highlighting product features, providing detailed information, and appealing to consumers' desire for value and functionality. Emotional Consumer Behavior:  Focus: Feelings, moods, and sentiments.  Decision-making: Involves making choices based on emotions, personal experiences, and gut feelings. .  Marketing implications: Creating emotional connections with consumers, building brand loyalty through storytelling, and using sensory marketing to evoke positive feelings.
  • 7. Buying a Car (High Involvement Product): •Cognitive Factors: • Fuel Efficiency: Researching miles per gallon (MPG) to save on gas costs. • Safety Ratings: Checking crash test results (e.g., NCAP ratings) to ensure family safety. • Reliability: Looking up consumer reports and reviews for common mechanical issues and maintenance costs. • Price and Budget: Comparing prices across different dealerships and models to get the best value within a set budget. • Features: Evaluating features like cargo space, infotainment system, and connectivity based on practical needs. •Emotional Factors: • Status/Image: Choosing a luxury brand to feel successful or project a certain image. • Excitement: Feeling a thrill during a test drive, or the anticipation of owning a new car. • Freedom/Adventure: Associating a particular SUV or sports car with a lifestyle of adventure or independence. • Nostalgia: Buying a specific classic car because it reminds them of their youth or a cherished memory. • Fear of Missing Out (FOMO): Purchasing a car during a limited-time sale to avoid missing a "great deal."
  • 8. Optimizing VS Satisficing Optimizing:  Goal: To find the absolute best or optimal solution among all available options.  Process: Involves extensive research, comparison, and evaluation of alternatives.  Characteristics: May involve spending significant time and effort to identify the perfect choice.  Example: A consumer meticulously researching different models, features, and prices of laptops before making a purchase. Satisficing:  Goal:To find a solution that meets the minimum acceptable criteria, rather than the absolute best.  Process:Involves setting an aspiration level and choosing the first option that meets that level.  Characteristics:Saves time and effort by not pursuing the absolute best option.  Example:A consumer choosing the first restaurant they see that has a vegetarian option, without comparing menus at other restaurants.
  • 9. Compensatory andNon- compensatory decision-making  Compensatory strategies allow a weakness on one attribute to be offset by a strength on another, while non-compensatory strategies do not allow for such trade-offs.  Compensatory models consider the overall product offering, while non-compensatory models focus on specific, non-negotiable criteria.  Non-compensatory strategies involve setting minimum standards or cutoffs for each attribute. If an option doesn't meet the minimum standard for even one attribute, it's eliminated from consideration, regardless of its performance on other attributes.
  • 10. Examples of Compensatory decision making Buying a Car: You're looking for a new car. Car A is a bit more expensive than Car B, but it has significantly better fuel efficiency and a longer warranty. In a compensatory decision, you might decide that the superior fuel efficiency (a strength) compensates for the higher price (a weakness), and you choose Car A. Choosing an Apartment: An apartment might be further from work (a negative) but has a significantly lower rent and more amenities (positives).You might decide the lower rent and amenities make up for the longer commute. Examples of Non-compensatory decision making: Example: Buying a Smartphone: You decide you will only consider smartphones with a battery life of at least 10 hours and a camera resolution of at least 12 megapixels and a price under $500. If a phone has an amazing camera and is cheap but its battery life is only 8 hours, you immediately eliminate it. Vacation:You might choose a destination if it has world-class beaches OR incredible historical sites, even if it's not known for its nightlife or shopping.
  • 11. Motivation Motivationistheinternaldrivethat compelsanindividualtotakeaction tosatisfyanunfulfilledneedor want.It'sthe"why"behind consumerbehavior.  Role in Consumer Buying Decisions:  Need Recognition: Motivation starts with the recognition of a need. This could be a basic physiological need (hunger, thirst) or a psychological need (status, belonging, self-expression). Marketers often trigger or highlight these needs.  Example: A consumer in Boisar, experiencing the monsoon season, feels a strong need for a reliable waterproof backpack (safety/practicality need) to protect their belongings during daily commute or travel.  Live Example (current trend): The increasing awareness about health and fitness post-pandemic motivates many in Maharashtra to sign up for gym memberships or buy home exercise equipment to satisfy their need for well-being and self-improvement.  Goal-Directed Behavior: Once a need is recognized, the consumer is motivated to find ways to satisfy it.This leads to information search and evaluation of alternatives.  Example: The individual wanting a waterproof backpack starts researching brands online, visits local stores in Boisar, and compares features and prices.
  • 13. Attitudes Anattitudeisalearned predispositiontorespondina consistentlyfavorableor unfavorablewaytowardanobject, idea,person,orbrand.Theyare relativelystableanddifficultto change.  Role in Consumer Buying Decisions:  Favorable vs. Unfavorable Predisposition: Attitudes guide consumers towards or away from certain products or brands. A positive attitude towards a brand makes a purchase more likely; a negative one makes it less likely.  Example: If a consumer has a positive attitude towards Reliance Digital due to past good experiences with their customer service, they are more likely to visit it first when buying a new appliance.  Many consumers today hold a strong positive attitude towards sustainable and eco-friendly products.This might lead them to choose organic vegetables from local vendors or brands that use recyclable packaging, even if they are slightly more expensive.
  • 15. Perception Perceptionistheprocessbywhich individualsselect,organize,and interpretinformationtoforma meaningfulpictureoftheworld.It's abouthowconsumers"see"or makesenseofmarketingstimuli.  Role in Consumer Buying Decisions:  Selective Attention: Consumers are bombarded with information.They selectively pay attention to stimuli that are relevant to their needs or interests.  Example: A resident of Boisar planning a summer vacation will suddenly start noticing advertisements for travel packages to Goa or Himachal Pradesh, while ignoring ads for home décor.  A person actively looking to buy a new EV (Electric Vehicle) will perceive and process every piece of information related to EVs – news articles, charging station locations, government subsidies – far more readily than someone not in the market.  Selective Distortion: Consumers often interpret information in a way that supports their existing beliefs or attitudes.  Example: If a consumer believes that "local street food" is generally unhygienic, they might interpret a minor stomach upset after eating out as confirmation of their belief, even if the cause was unrelated.  Selective Retention: Consumers tend to remember information that aligns with their existing beliefs and forget information that contradicts them.  Example: A loyal "Jio" user is more likely to remember positive news about Jio's 5G rollout and forget any negative reports about network glitches.
  • 16. Learning Learninginconsumerbehavior referstochangesinanindividual's behaviorarisingfromexperience.It involvesacquiringknowledge,skills, beliefs,andattitudesthrough exposureandpractice.  Role in Consumer Buying Decisions:  Experience and Repetition: Consumers learn from past purchasing experiences (both positive and negative), product use, and exposure to advertising.  Example: A positive experience with Amazon's fast delivery service for a purchase will reinforce the likelihood of future purchases from Amazon. Conversely, a poor experience with a local laundry service will lead to avoidance.  Many individuals have learned the convenience and efficiency of online payment apps like UPI (Google Pay, PhonePe). A positive first experience encourages them to use it for almost all their transactions, from buying groceries to paying bills.  Stimulus Generalization: Consumers often generalize their positive experiences with one product or brand to other similar products or brands, especially those under the same brand umbrella.  Example: If a consumer is happy with Tata Tea, they might be more inclined to try Tata Salt or Tata Sampann dals, generalizing their positive perception of the Tata brand to its other products.  Stimulus Discrimination: Consumers learn to distinguish between similar stimuli and choose specific brands over others.  Example: While there are many fast-food chains, a consumer might have learned through experience and taste preferences that only McDonald's provides the specific taste and experience they prefer for burgers.  Reinforcement and Punishment: Positive experiences (reinforcement) lead to repeat behavior. Negative experiences (punishment) lead to avoidance.  Observational Learning: Consumers also learn by observing others (friends, family, celebrities) and their consumption patterns.  Example: A teenager might start using a particular skincare brand because their favorite Bollywood celebrity endorses it on Instagram or because their friends are using it and getting good results.
  • 17. Stage Description Example Need Recognition Realize a problem/need Laptop not working need → a new one Information Search Explore options via reviews, friends, etc. WatchYouTube reviews, search Flipkart, ask friends Evaluation Compare brands/features Compare HP vs Lenovo vs Apple Purchase Decide and buy Buy Lenovo due to specs + student discount Post-Purchase Evaluate satisfaction Happy with purchase, recommend to peers Consumer Decision Making Process Marketers tailor campaigns to influence each stage: • Google Ads / Influencers for awareness. • Detailed product pages for information. • Comparison tools and reviews for evaluation. • Offers and EMI schemes for purchase. • Customer service & feedback collection for post-purchase.
  • 18. Prospect Theory (DanielKahneman &AmosTversky)  Prospect Theory explains how people make decisions between alternatives that involve risk. Instead of making purely rational decisions, consumers are more sensitive to losses than to gains.  Eg:losing 100 feels worse than gaining 100 feels good. ₹ ₹  Impact on Consumer Psychology: Consumers avoid risk when a gain is likely (risk-averse). Consumers take risk when avoiding a loss (risk-seeking).  🔹 Example:  A shopper may avoid spending 1,000 on a new skincare ₹ product — even if it promises great results — because the risk of losing that money feels stronger than the potential gain of better skin.  But, if a product says “Buy now or price increases tomorrow,” consumers may rush to buy it to avoid the loss.
  • 19. Endowment Effect  The Endowment Effect is a psychological bias where people value something more just because they own it — even if they only got it recently or it’s not that special.
  • 20. Examples of Endowment Effect Personalized Products •You design your own t-shirt online (pick color, add name). •Even before receiving it, you feel it’s more valuable than a regular store t-shirt. ✅ Customization gives a sense of ownership, triggering the Endowment Effect. Free Trial Subscriptions •You get a 30-day free trial of Amazon Prime. •After using it for a month — fast delivery, Prime Video, deals — you start liking it. •When the trial ends, you’re willing to pay for it even though earlier you might have said, “I don’t need Prime.” ✅ Why? Because now it feels like yours, and you don’t want to lose it. •Zomato & Swiggy:Use push notifications like: “Hurry! 100 off only for 1 hour!” — leveraging ₹ Prospect Theory. •Apple:Once you use an iPhone and personalize it (apps, data, settings), you're less likely to switch brands — the Endowment Effect keeps you loyal. •Myntra:Shows a countdown timer and “Only 2 left in stock” to create loss aversion.
  • 21. Influenceon Diffusionof Innovation •Relative Advantage: How much better is the innovation compared to existing solutions? The greater the perceived advantage (e.g., in terms of efficiency, cost-effectiveness, or social prestige), the faster its adoption. •Compatibility: How consistent is the innovation with existing values, experiences, and needs of potential adopters? If it aligns well, adoption is quicker. •Complexity: How difficult is the innovation to understand and use? Simpler innovations are adopted more readily. •Triability: Can the innovation be experimented with on a limited basis? Allowing for trials reduces perceived risk and encourages adoption. •Observability: Are the results of the innovation visible to others? When the benefits are clear and easily demonstrated, it encourages others to adopt
  • 22. The9xEffect The"9xEffect"isaconceptthatexplains whymanynewproductsand innovationsfailtogaintractiondespite seemingsuperiortoexistingalternatives. Itstatesthatforanewproductto succeed,itneedstobeperceivedasnine timesbetterthanthecurrentsolution. Example:Air Fryer Fries  Company's Perception (3x Better):  The air fryer manufacturer sees their product as revolutionary for fries.They envision perfectly crispy fries with almost no oil, making them healthier and guilt-free.They highlight the convenience, less mess, and the ability to enjoy a "fried" indulgence without the deep-fryer drawbacks.They believe it's easily 3x better than the old way.  Consumer's Initial Perception (3xWorse / 3x Better Old):  Deep Fryer User: "My deep-fried fries are the crispiest! An air fryer can't possibly give me that same crunch without all the oil. It sounds like a glorified convection oven, and my oven already makes 'baked' fries that are just okay. Plus, it's another appliance to buy and find space for." They might perceive the air fryer fries as less authentic or crispy, and the effort to learn a new appliance as a cost.  Oven Baker: "I already bake my fries for health.They're not super crispy, but they're easy. Does this air fryer really do that much better? Is it worth the cost and counter space for marginally crispier fries?"  The 9x Overcoming Point:  For the air fryer to achieve mass adoption for fries, it had to consistently deliver results that were undeniably crispy (approaching deep-fried crispness) AND significantly healthier/easier to clean. Only when people saw demonstrable proof (through friends, reviews, social media videos) that air fryer fries could be genuinely crispy, without the greasy mess and health concerns of deep frying, did they start to switch.The perceived benefits had to be overwhelmingly superior to the comfort and familiarity of their existing methods, overcoming that combined 3×3=9 bias.
  • 23. CapturingValue fromInnovation 1.Intellectual Property (IP) Protection: Secure patents, copyrights, trademarks, and trade secrets to protect your innovation from imitation and gain exclusive rights. This creates a temporary monopoly, allowing you to charge premium prices or license your technology. o Example: Pharmaceutical companies heavily rely on patents for new drugs. The patent period allows them to recoup their significant R&D investments before generic versions can enter the market. 2.Innovative Business Models: Change how you deliver value to customers and how you generate revenue. This can be more powerful than just a new product. o Examples: o Subscription Models (e.g., Netflix, Adobe Creative Cloud): Instead of one-time purchases, customers pay recurring fees for access to a service or software. This provides predictable revenue streams and fosters long-term customer relationships. o Freemium Models (e.g., Spotify, Dropbox): Offer a basic version of your product/service for free to attract a large user base, then charge for premium features or enhanced functionality. 3.Strategic Pricing: Align your pricing with the perceived value your innovation delivers. This can involve dynamic pricing, tiered pricing, or value-based pricing. o Examples: o Dynamic Pricing (Airlines, Ride-sharing): Adjust prices based on real-time demand, supply, and other factors to maximize revenue. o Value-Based Pricing (High-tech B2B software): Price based on the quantifiable benefits (e.g., cost savings, increased revenue) the customer gains from using the innovation, rather than just the cost of production.
  • 25. Womeninworkforce anditsImpacton ConsumerBehaviour  Increased Disposable Income and Purchasing Power  Shift in Decision-Making Dynamics within Households  Changes in Product and Brand Preferences  Evolving Shopping Habits and Channels  Impact on Marketing and Advertising Strategies Examples:Cosmetics and Makeup: While traditional use was limited, working women are more likely to purchase a wider range of makeup for daily use, including foundations, concealers, lipsticks, and eyeliners.
  • 26. Examples  Fusion Wear (Indo-Western): Many brands now offer a blend of Indian and Western styles, like kurtis paired with denims or ethnic jackets over Western tops, catering to the need for comfortable yet professional attire.  Online Grocery Platforms: Apps like BigBasket, Zepto, and Blinkit are heavily used for grocery shopping, saving commute time and allowing for ordering at any hour.  Daycare and Preschools: Demand for quality childcare facilities has surged.  Personal Loans and Credit Cards: Used for various purposes, from managing expenses to funding personal aspirations.  Instant Mixes: Sales of instant idli, dosa, gulab jamun, and other traditional Indian dish mixes have surged. Brands like MTR, Gits, and Ashirvaad have seen high demand for these products.  RoboticVacuum Cleaners: Brands like Eureka Forbes, iRobot, and Xiaomi have found a market for robotic vacuums that can clean homes with minimal supervision.
  • 27. Declining MiddleClass  A "declining middle class" means that this middle part of the ladder is getting smaller. More people are either falling into the poorer group, or a few are moving into the richer group, but the solid middle is shrinking.This often happens because their incomes aren't growing as fast as the cost of living (like food, rent, education). Example:Before: A middle-class family might regularly buy branded chips, expensive juices, or go to a nice restaurant every weekend. Now: They might switch to cheaper, local brands for snacks, make juices at home, or reduce eating out to once a month or only for special occasions. They'll definitely buy food and pay rent, but those "extras" get cut.  Instead of buying a new smartphone every year, they'll use their old one for much longer, or buy a cheaper model.
  • 28. Example • When you open Amazon or Flipkart, the "Recommended for you" section isn't random. It's AI suggesting things based on your past shopping, what similar users bought, and current trends. Similarly, Netflix suggests movies you might like, and Spotify curates "Discover Weekly" playlists. • A health app powered by AI might suggest a specific supplement or a diet plan based on your activity levels, dietary habits, and stated goals, or even prompt you to reorder something you usually buy monthly. • Lenskart's virtual try-on for spectacles, or a furniture retailer's app that lets you see how a sofa would look in your living room using your phone's camera. • If you ask Alexa to "order a pizza," it might default to Domino's or Pizza Hut based on your past orders or its own partnerships, rather than letting you browse all local pizza places.This gives the assistant platform immense power.
  • 29. BrandCulture vs Material Makers •Material Makers: These are the companies or processes that produce the physical goods or deliver the tangible services. They focus on functionality, quality of materials, manufacturing efficiency, logistics, and the literal creation of the product. •Example: A textile manufacturer that weaves fabric for clothes, or a company that assembles smartphones. Their primary concern is the physical attributes and production. •Brand Culture: This refers to the shared values, beliefs, attitudes, practices, and emotional connections that define a brand. It's the "personality" and "soul" of the brand, extending beyond the product itself. It's about why a brand exists, what it stands for, and how it interacts with the world. It encompasses the internal company culture as well as the external perception. •Example: For Apple, the "material makers" create the iPhones. But the "brand culture" is about innovation, sleek design, user experience, exclusivity, and a certain lifestyle that loyal customers identify with. It's about being a "think different" brand.
  • 30. RoleofStories,Images,and AssociationsinCreating BrandsasCulturalArtifacts  Stories: Stories provide context, emotion, and a human element to a brand.They explain the "why" behind the brand, its origins, its challenges, its triumphs, and its impact. Stories that highlight the brand's commitment to social causes, sustainability, or community (e.g.,Tata Tea's "Jaago Re" campaigns addressing social issues in India).  Images are powerful, instant communicators of brand identity, personality, and aspirations. They create immediate recognition and emotional resonance. Iconic logos like the Nike swoosh, Apple's bitten apple, or the Amul Girl (in India) become shorthand for entire sets of values and associations.  Associations: Brands build associations by linking themselves with ideas, feelings, lifestyles, people, or other entities that consumers already value. Associating with a respected athlete (e.g.,Virat Kohli for Puma/MRF) or actor can transfer their admired qualities to the brand.
  • 31. Brand Values: Reputational, Relationship, Experiential, Symbolic • ReputationalValue: This refers to the value derived from a brand's standing, trustworthiness, and credibility in the market Example: Tata Group in India has immense reputational value built over decades of ethical practices, quality products, and community involvement. Consumers trust a "Tata" product or service implicitly, whether it's salt, steel, or software.This value reduces perceived risk for the consumer. • RelationshipValue: This value stems from the emotional connection, loyalty, and sense of belonging a consumer feels with a brand. It's built through consistent positive interactions, personalized experiences, and community building. Example: Starbucks (even globally, but relevant in India) builds relationship value through its "third place" concept, personalized orders, loyalty programs, and community initiatives. Customers feel a personal connection, not just to the coffee, but to the brand experience. • ExperientialValue:This value comes from the direct, sensory, and often emotional experiences consumers have when interacting with a brand's products, services, or environments. It's about the "feel" and the "journey." Example: Royal Enfield motorcycles offer a distinct experiential value in India. It's not just about transport; it's about the thump of the engine, the feel of the ride, the camaraderie of fellow riders, the sense of adventure, and the vintage aesthetic. Symbolic Value:This refers to the value a brand holds as a symbol of identity, status, aspirations, or values for the consumer. It's about what the brand represents to the individual and to society. • Symbolic Value: This refers to the value a brand holds as a symbol of identity, status, aspirations, or values for the consumer. It's about what the brand represents to the individual and to society. Example: • Luxury Brands (e.g., LouisVuitton, Rolex): Often carry high symbolic value, representing wealth, status, and success. Owning them communicates a certain identity. • Patagonia: Holds symbolic value for consumers who identify with environmental sustainability and outdoor adventure. Wearing Patagonia signals these values. • Mahindra Thar: In India, owning a Thar often symbolizes ruggedness, adventure, and a certain aspirational lifestyle, transcending its function as just an SUV.
  • 32. BrandStorytelling: ForgingEmotional Connection •Memory: Emotions are powerful anchors for memory. People remember how a brand makes them feel more than what it does. •Trust & Loyalty: When consumers feel an emotional connection, they develop trust. This trust translates into loyalty, making them more likely to choose that brand repeatedly, even over cheaper alternatives. •Differentiation: In a crowded market, emotional resonance is a strong differentiator. It gives the brand a unique personality and voice that stands out. •Advocacy: Emotionally connected customers are more likely to become brand advocates, sharing their positive experiences with others. •Beyond Logic: Many purchasing decisions are driven by emotion, then rationalized. A good story taps into those underlying feelings.
  • 33. Example (India): Tata Tea's "Jaago Re" (Wake Up) campaign. Their ideological message is not just about tea, but about awakening social consciousness and encouraging active citizenship.The ads often depict everyday scenarios where people need to "wake up" to social issues like corruption, voting, or road safety.This connects with Indian consumers who value social responsibility. Dairy Milk's "Kuch Achha Ho Jaye, Kuch Meetha Ho Jaye" (Let Something Good Happen, Let Something Sweet Happen) campaign: While not a single character, the characters in their ads are often ordinary people celebrating small joys or making a difference.They encourage everyday moments of sweetness and happiness, making consumers feel good about sharing Cadbury. Surf Excel's "Daag Acche Hain" (Stains Are Good) campaign: The conflict is the societal pressure to keep clothes spotless vs. allowing children to explore and learn, even if it means getting dirty. Surf Excel positions itself as the solution, removing the conflict by ensuring stains are no barrier to learning and fun.The message: "If there are stains, it means life is happening.“ They don't just show glue sticking things; their plots are often absurd, humorous, and memorable narratives (e.g., the Fevicol bus carrying too many people, or the unshakeable egg).The "plot" of these mini-stories is always about something being impossibly strong or stuck, leading to a humorous resolution, showcasing the product's ultimate strength in a dynamic and unforgettable way.
  • 34. UseofHumor,Fear, Romance,Ironyas StorytellingDevicesto ResonatewithConsumers  Humor:Creates positive associations, makes a brand memorable, and breaks down barriers. Laughter makes people feel good. Coke's "Open Happiness" campaigns often use lighthearted, humorous scenarios to show how a Coke brings joy and connection.  Fear:Highlights a potential negative outcome if the consumer doesn't use the product/service, or emphasizes the need for protection/security. It creates urgency. Insurance ads often depict scenarios of unforeseen illness, accidents, or financial distress to underscore the need for their policies.  Romance:Evokes feelings of love, desire, connection, and aspiration. It can be about romantic love, self-love, or even the love for a certain lifestyle. Tanishq jewelry ads often tell stories of love, marriage, and family bonds, making their jewelry pieces symbolic of these emotions  Irony:Presents a contrast between expectation and reality, often with a humorous or thought-provoking twist. It can be subtle or overt, adding depth and intelligence to a story. Atta Noodles
  • 35. Conscious marketing  It is a holistic marketing strategy rooted in a brand's commitment to ethical practices and positive societal impact. It's about demonstrating genuine care for people and the planet, not just profit  Brands in the garment industry that ensure ethical working conditions and fair wages for their factory workers, often getting third-party certifications. Some handicraft brands work directly with artisan communities, ensuring they benefit directly from their craft.  Companies offering refill stations for cleaning products or personal care items (like The Body Shop, Ecover). Brands creating products from recycled Tetra Paks (e.g., benches, trays) or upcycled apparel waste.
  • 36. Reducing the Carbon Footprint of the Supply Chain 1. Optimizing Transportation: 1. Route Optimization: Using software to plan the most efficient delivery routes, minimizing distance traveled and fuel consumption. 2. Consolidation: Combining shipments to fill trucks/containers more efficiently, reducing the number of trips. 3. Modal Shift: Switching from high-emission transport (e.g., air freight) to lower-emission alternatives (e.g., rail, sea freight) where feasible. 4. Greener Fleets: Investing in electric vehicles (EVs) or vehicles powered by cleaner fuels for last-mile delivery and logistics. 2. Sustainable Sourcing and Supplier Engagement:Local Sourcing: Sourcing raw materials and components from closer to manufacturing facilities to reduce transportation distances.Sustainable Suppliers: Partnering with suppliers who themselves have strong environmental practices, use renewable energy, or have lower carbon footprints.Transparency & Data Sharing: Requiring suppliers to report their emissions data to identify hotspots and work collaboratively on reduction goals 1. . 3. Efficient Manufacturing and Operations: 1. Renewable Energy: Shifting factories and warehouses to renewable energy sources like solar, wind, or hydro power. 2. Energy Efficiency: Implementing energy-saving technologies and practices in production (e.g., efficient machinery, LED lighting). 3. Waste Reduction: Minimizing waste during manufacturing processes and maximizing recycling. 4. Eco-Friendly Packaging: 1. Minimal Packaging: Reducing the amount of packaging material used. 2. Recycled Content: Using packaging made from recycled materials. 3. Biodegradable/Compostable Packaging: Switching to materials that break down naturally. 4. Reusable Packaging: Implementing systems for reusable crates or containers in the supply chain. 5. Circular Economy Principles: 1. Product Design for Durability & Repairability: Designing products that last longer and can be easily repaired, extending their lifespan. 2. Take-Back Programs: Offering programs for customers to return old products for recycling or refurbishing. 3. Using Recycled Content in New Products: Closing the loop by incorporating post-consumer recycled materials into new products
  • 37. Review Questions  High/Low Involvement Products: You are marketing manager for two products: A new brand of packaged atta (flour) and a new model of electric car. Explain how the level of consumer involvement (high vs. low) would differ significantly for these two products. Describe two distinct marketing strategies you would employ for each product, specifically addressing their involvement levels to influence consumer decision-making  An Indian family is planning to buy their first refrigerator.They have identified the need but are now in the "information search" and "evaluation of alternatives" stages.Describe three different sources of information they are likely to consult (internal and external). How can a refrigerator brand effectively influence their evaluation process to be chosen over competitors during this stage?
  • 38. Review Questions  A consumer wants to buy a new smartphone but is overwhelmed by the number of choices.They decide to use a digital assistant (e.g., Google Assistant, Alexa) for help.How can AI and digital assistants navigate this consumer's choices and influence their purchase decision? Discuss how this might reduce the traditional role of brand recognition for certain consumers. Provide an example.  Select an Indian brand and describe how it uses "conflict" as a driving force in its brand story to resonate with consumers. What is the perceived conflict, and how does the brand position itself as the solution or hero in that narrative?  A prominent Indian food delivery company (e.g., Swiggy, Zomato) wants to visibly reduce the carbon footprint of its supply chain. Suggest two practical strategies this company can implement to achieve this, focusing on different stages of their supply chain. How would they communicate this effort to their environmentally conscious customers?