Session 1

CONSUMER BEHAVIOR-
An Overview
Key Concepts
Define consumer
behavior and explain its
elements
Diversity of the Indian
Market
Factors influencing
Consumer Behavior
Consumer Behavior Defined…
Reflects totality of
consumer’s decisions with
respect to the acquisition,
consumption, and disposition
of goods, services, time, and
ideas by (human) decision
making units (over time).
Defn. Contd..,
“Consumer behavior is the study of how, why and
what people do when they buy products or avail some
services. It attempts to understand the buyer decision
making process, both individually and in groups.”

“Consumer behavior is defined as the activities people

undertake when obtaining, consuming and disposing
of products and services”
A case on GLITZ, a
company involved in the
manufacture of Vermicelli
(pasta products)……………
Need for understanding Consumer Behavior
Shorter product life cycles
Evolving customer preferences
Environmental concerns
Changing life styles
Faster technology adoption
Consumer Diversity: India has a history of
thousands of years
One popular approach of dividing the Indian
market
India 1: ‘Elite’ – Value conscious consumer base

India 2: ‘Climbers’ – Largest size of consumer base

India 3: ‘Aspirants’ – Fastest growth driver of

Consumer base
Changing pattern of Indian Consumer
Industry
 Factors influencing consumer behavior
External Stimuli Buyer’s black box The final decision
Buyer Buyer decision
Marketing Environmental Characteristics process The choice of
stimuli stimuli Cultural Prob recog Product
Product Economic Social
Info search Brand
Price Social Personal
Evaluation Dealer
Place Political Psychological
Decision Quantity
Promotion Technological
Post – Purchase timing
Purchase
behavior
Cultural factors: culture & subculture
Culture is the most basic cause of a person’s
wants and behavior. Every group or society
has a culture and cultural influences on
buying behavior may vary greatly from
country to country.
Social factors: informal & formal groups,
family and social status

Social class
Reference group
 Primary group
 Family orientation

 Family of procreation

 Secondary group
 Tertiary groups

Role and status

Personal factors: age, lifecycle, personality,
lifestyle
Age and lifecycle stage
Occupation and economic condition
Personality and self concept
Lifestyle and status
Psychological factors:
Motivation, Perception,
Learning, Experience, Beliefs
Understanding the buying decision process
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