Learning Objectives:

1.Estimate what and why of customer purchase

2.Judge customer decision making
3.Summarize influences on buyer behavior
Consumer Behavior:

Consumer behavior is the study

of how individuals, groups, and
organizations select, buy, use,
and dispose of goods, services,
ideas, or experiences to satisfy
their needs and wants.
What does the Customer buy?
What does the Customer buy?

a)High Involvement Products – colour TV

 High Price
 Complex Features
 Large Differences Between Alternatives
 High Perceived Risks
 Reflect Self-concept of Buyer
What does the Customer buy?
b)Low Involvement Products
 Does Not Reflect Buyer’s Self-concept
 Alternatives within the Same Product Class are Similar
 Frequent Brand Switching Behaviour
Buying Situations

a.Awareness about competing brands in a product group

b.Customer has a decision criteria
c.Customer is able to evaluate and decide on his choice

Routinised Response Behaviour or Straight Rebuy

Limited Problem solving or Modified Rebuy
Extensive Problem Solving or New Task
Buyer Motivations
•Economic Factors
•Psychological Factors
– Motivation – Maslow Need Hierarchy theory, Herzberg’s
two factor theory, McClelland’s theory of achievement
– Learning
– Perception
McClelland’s theory of
achievement
motivation
Learning Theory holds important insights to
Consumers Behaviour

Theory of Cognitive Dissonance – State of mental

disturbance arising out of post purchase or post consumption
purchase.
Dissonance gets heightened when:
a.Customer has plenty of choices or alternatives to choose
from
b.Each alternative is equally attractive
c.The buying situation is a high priced-high risk situation
d.The customer sees the product as reflecting his or her self-
concept
Perception

• Perception is the process by which we select, organize, and

interpret information inputs to create a meaningful picture of
the world.

– Selective Attention (Consumer cannot attend to all

communications so screen most stimuli out)

– Selective Distortion (Tendency to interpret information in a way

that fits our preconceptions)

– Selective Retention (Consumer retain information that support

their attitude & beliefs)
Consumer Decision Making

Roles in Consumer Decision Making

•Initiator
•Influencer
•Decider
•Buyer
•User
Buying Roles
The Consumer Decision-making Process
Influences on Buyer Behaviour
•Cultural Influences
Mc Donald don’t offer beef
products in India and in Saudi Arabia
Mc Donald outlets include separate
dining sections for both men& women.
• Social Influence

Reference group, which implies peers, relatives, neighbours

and friends influences a man’s behavior

• Opinion Leadership

Opinion leadership is the process through which a

person/group influences the actions, views, and attitudes of
others.
• Demographic Influences
Growth of Urbanisation in India

Self Concept
The self image could be an individual’s own perceived image actual
image based on how others perceive the individual

Psychographic Variables
- Lifestyle
Lifestyle refers to the beliefs, attitudes, interests and opinions,
that an individual has about himself, his family and the world.

Personality
Personality refers to psychological characteristics of individuals that
lead them to relatively consistent and enduring responses to their
environment
 Demographic environment
Current Population of India in 2017 1,349,697,478 (1.34 billion) As of
September 1, 2017

Total Male Population in India 696,983,777 (69.6 crore)

Total No of Females in India 652,713,700 (65.2 crore)
Sex Ratio 945 females per 1,000 males
Age structure
0 to 25 years 50% of India's current population
Currently, there are about 51 births in India in a minute.

• About 72.2% of the population lives in some 638,000 villages and

the rest 27.8% in about 5,480 towns and urban agglomerations
•The current population of India is 1,345,030,979 as of Thursday, August
31, 2017, based on the latest United Nations estimates.

•India population is equivalent to 17.86% of the total world population.

•India ranks number 2 in the list of 

countries (and dependencies) by population.

•The population density in India is 452 per Km2 (1,169 people per mi2).

•The total land area is 2,972,892 Km2 (1,147,839 sq. miles)

•32.8 % of the population is urban (439,801,466 people in 2017)

•The median age in India is 26.9 years.

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 Why Is Appealing to an Aggressive
Consumer a Logical Position for This
Product?
 Because its Consumer Seeks
to Excel and Achieve Recognition
 Personality
For example, Raymond advertises its fabrics with the tag ‘The
Complete Man.’

Parker Pens use Amitabh Bachchan as their brand ambassador to

project it as a status symbol.