CONSUMER

BEHAVIOUR

CONSUMER BEHAVIOUR

Maruti Suzuki, Idea Cellular, Tanishq,

HP Ink Advantage, Surf Excel, Airtel,
Amazon, Just Dial

Consumer Behaviour
For the purpose of effective marketing it
is essential that one understands the
consumers mind. It ensures that the
right products are conceived, produced
and offered to the right consumers in the
right way.

Model of Buyer Behaviour

Study is on the basis of the following
factors
Marketing stimuli
Other stimuli
Buyers characteristics
Buyers decision process

Marketing stimuli
4Ps
Product
Price
Place
Promotion

Other Stimuli
PEST
Political factors
Economic factors
Social factors
Technological factors

Buyers characteristics

Cultural factors

Culture E.g: Kelloggs initial failure in India ,

sub-culture, social class, cultural indications

Social factors

Reference groups, Family, Roles and

statuses

.Buyers characteristics

Personal factors

Age and lifecycle, (critical events:

Seagrams imperial blue ad) occupation
and economic circumstances, lifestyle,
personality and self-concept

Psychological factors

Motivation
Learning
Beliefs and attitudes

Buying decision process

1.
2.
3.

Buying roles
Buying behaviour
Steps

Buying roles

Initiator
Influencer
Gatekeeper
Decider
Buyer
User

Buying behaviour
High involvement

Significant
differences
between brands

Few
differences
between brands

Low involvement

Complex buying
behaviour

Variety seeking
buying
behaviour

Dissonance
reducing
buying
behaviour

Habitual buying
behaviour

Five stage model of the consumers

buying process (Steps)

Problem recognition
Information search
Evaluation of alternatives
Purchase decision
Post-purchase behaviour

Source: Marketing Management by Philip

Kotler

ORGANISATIONAL
BUYING BEHAVIOUR

Organisational Buying
Behaviour

Marketing to organisational buyers also

termed as Business-to-Business (B2B)
Marketing

What a B2B marketer must focus

on?

Continuous and Reliable Product

Performance
Guaranteed Delivery
Technology fit
Price
After Sales Service
Company Sales Force

The Value Factor

Hierarchy of Customer Values

Anticipated Values

Desired Values

Unanticipated (Latent) Values

The Value Factor

Anticipated Values
Customer Satisfaction
Desired Values
Customer Delight
Unanticipated Values
Customer Bonding with the organisation

Rational Needs V/S Psychological

Needs
Rational Needs

Psychological Needs

Generally for
Industrial Goods

Generally for
Consumer Goods

Unique Selling
Proposition

Unique Emotional
Proposition

Understanding the Organisational

Buyer

Buying Motives
Size of the Buyer
Risks in purchases
Previous experience with supplier, vendor
image, suppliers standing within the
industry.
Concentration of Buyers
B2B marketing strategy is more focused with
an emphasis on Personal Selling.

Industrial Goods
Classification

Capital Goods like Plant and Machinery

and Office products.

Spare parts and Components.

Consumables like raw material,

lubricants and so on.

Roles in Buying Centre

Actual User

Influencer

Decider

Buyer

Gatekeeper

SEGMENTATION OF
INDUSTRIAL
MARKETS

Bases of segmenting Industrial

Markets

Size of the customer

Large Buyers, Medium-sized Buyers,
Small Buyers

Geographical Location

End Use

Bases of segmenting Industrial

Markets

Buyer Behaviour/Motivation or Purchase

Criteria
Price-Insensitive, Sensitive, Highly
Sensitive
Needs-Standardised or Customised

Multiple Bases for segmentation

Source: Marketing Management by Rajan

Saxena (Third Edition)
McGraw Hill Publications.