UNIT 3

CONSUMER BEHAVIOUR

CONSUMER BEHAVIOUR
More than a century ago, the father of our nation, Mahatma Gandhi had made a
visionary and deep meaningful statement at Johannesburg, South Africa at 1890 – “A
customer is the most important visitor on our premises. He is not dependent on us. We
are dependent on him. He is not an interruption on our work. He is the purpose of it
and not an outsider on our premises. He is the part of it.
We are not doing a favour by serving him. He is doing us a favour by giving us the
opportunity to do so”. Though this statement was not made in the marketing concept,
there is a lot of wisdom and insight into Mahatma’s words. Today all the firms are
engaged in the process of creating a life time value and relationship with their
customers. This chapter deals with studying consumer behavior as a related field of
marketing.

BUYER, CUSTOMER AND CONSUMER

CONSUMER BEHAVIOUR
Behaviour is the interaction with the ambient surrounding environment, inherent in
living creatures and mediated by their external and inner activeness. Thus consumer
behaviour is actions of consumers in the market place and the underlying motives for
those actions. Marketers expect that by understanding what causes consumers to buy
particular goods and services, they will be able to determine which products are
needed in the market place, which are obsolete and how best to present those goods to
the consumer.
The study of consumer behaviour is the study of how individuals make decisions to
spend their available resources ( time, money, effort ) on consumption related items.
In the words of Walters and Paul “ consumer behaviour is the process whereby
individuals decide what, when, where, how and from whom to purchase goods and
services.”
2.3 NEED OR IMPORTANCE OF STUDY OF CONSUMER BEHAVIOUR
The modern marketing management tries to solve the basic problems of consumers in
the area of consumption. To survive in the market, a firm has to be constantly
innovating and understand the latest consumer needs and tastes. It will be extremely
useful in exploiting marketing opportunities and in meeting the challenges that the
Indian market offers. It is important for the marketers to understand the buyer
behaviour due to the following reasons.
The study of consumer behaviour for any product is of vital importance to
marketers in shaping the fortunes of their organisations.
It is significant for regulating consumption of goods and thereby maintaining
economic stability.
It is useful in developing ways for the more efficient utilisation of resources of
marketing. It also helps in solving marketing management problems in more effective
manner.
Today consumers give more importance on environment friendly products. They
are concerned about health, hygiene and fitness. They prefer natural products. Hence
detailed study on upcoming groups of consumers is essential for any firm.
The growth of consumer protection movement has created an urgent need to
understand how consumers make their consumption and buying decision.
Consumers tastes and preferences are ever changing. Study of consumer
behaviour gives information regarding colour, design, size etc. which consumers
want. In short, consumer behaviour helps in formulating of production policy.
For effective market segmentation and target marketing, it is essential to have an
understanding of consumers and their behaviour.
2.4 TYPES OF CONSUMER BEHAVIOUR
There are four types of consumer behaviour. They are;
Complex Buying Behaviour: Consumers goes through complex buying behaviour
when they are highly involved in a purchase and aware of significant differences
among brands. Consumers are highly involved when the product is expensive, bought
infrequently, risky and self-expensive. Here consumers go through a rational/logical
thinking process to collect as much information as possible about the available
brands.
Behaviour exhibited while purchasing a car is an example of complex buying
behaviour.
Dissonance Reduction Buying Behaviour: Sometimes consumers are highly
involved in purchases but see little difference in the brands. After the purchase they
feel that the product does not perform to their expectations. They may thing about
alternative brand which has forgone in the brand selection process.
As a result, they feel some discomfort. This mental condition is known as Cognitive
Dissonance.
Variety Seeking Buying Behaviour: Here consumers have a lot more brand options
to choose. At the same time there are significant brand differences. Unit price of
product is low. Consumer involvement is also low. But consumer show brand
switching behaviour. They go on changing from one brand to another. They like
experiments for the sake of variety satisfaction. They exhibit variety seeking
behaviour in case of products like soap, detergents, toothpaste etc.
Habitual Buying Behaviour: In this situation consumers buy their products on
regular basis. Brand switching behaviour is quite common here. Variations among
brands are significant. Products are usually low priced. Gathering product knowledge
is not so important. Consumers show habitual buying behaviour in case of products
like salt, matches etc.

BUYING MOTIVES
It is the buying motives which induce a consumer to buy a particular product. A lady
may buy a sari for physical protection or for wearing something to look beautiful or as
a status symbol. Thus buying motive is a strong feeling, instinct, desire or emotion
that make the buyer to buy a product. According to
D J DUNCAN, “ buying motives are those influences or considerations which provide
the impulse to buy, induce action or determine choice in the purchase of goods and
services.” In short, a buying motive is the reasons why buyers buy.
TYPES OF BUYING MOTIVES
Buying motives are of four types.
Emotional and Rational motives.
Product and Patronage motives.
Inherent and Learned motives.
Psychological and Social buying motives.
EMOTIONAL AND RATIONAL MOTIVES
EMOTIONAL MOTIVES
When a consumer decides to buy without much logical thinking, his decision is said
to be emotional. Emotional buying motives are the motives which are affected by the
feeling of heart. The emotional motives are of the following types.
Sex or Romance Motive: Fancy clothes, cosmetics, perfumes etc. are in great
demand on account of the instinct of sex or a desire to attract the opposite sex. Men
dress in their best to appeal to women; and women put attractive jewellery, fancy
clothes, hairdos, pleasing perfumes and make-up in a modern style to appeal to men.
Some examples of appeals made are: “ Every woman has a right to look younger than
she is” “It gives your face a sex appeal”
Love of Others( Affection Motives):This motives plays a important part when
parents purchase all kinds of things for their children like toy, fancy garments, and
other presents and take insurance policies to make provision for their future.
Examples of its appeals are: “ Because you love them; protect them” “Wise mothers
give their family a nourishing breakfast”
Social Acceptance Motive: Every individual wants to have respect and
acceptance from the group to which he belongs. Taking advantage of this motive the
marketers use appeals such as: “ Your neighbours shops here- you should too” “ It
makes you nice to be near all days”
Vanity Motive: People like to feel important in the society, among friends, in
association and clubs, to achieve status symbols. Hence ladies purchase costly
costumes, jewellery or join expensive clubs, have expensive home decoration object.
Men purchases television, costly furniture, air conditioners, scooters, cars, perfumes
and other variety goods. Appeals are made as the following: