CONSUMER

BEHAVIOR
NOTES
CONSUMER BEHAVIOR

Paper Code: BBA/II/304

UNIT – I Introduction to consumer behavior: definition, factors influencing

consumer behavior, marketing strategies and consumer behavior, consumer
decision making process, importance of consumer behaviour; Indian consumers
and their characteristics.

UNIT – II Attitude - models and theories of attitude, tri-component attitude

model, behaviour intention model and change in attitude; Personality and self-
concept: nature of personality, theories of personality (Freudian, Jungian, Neo-
Freudian and Trait theory), personality and understanding consumer diversity.

UNIT – III Environmental influence: definition of culture, characteristics of

culture, dynamism in culture, relevance of sub culture and cross culture on
consumer behaviour; Indian culture and sub culture; Marketing strategies and
problems related to cross culture. Social class – definition, determinants of social
class, objective approach, composite –variable indices, social class mobility,
applications of social class to consumption, family and life style, significance,
family life cycle stages; Family-buying influences, applications of AIO studies.
UNIT – IV Consumer decision making: four views of consumer decision
making; types of consumer purchasing decision; Basic models of decision
making Engle-Kollatt-Blackwell model, Howard– Sheth model, Nicosia model;
e-business and its effect on consumer decision making.

Text Books:

1. Consumer Behavior, Ramanuj Majumdar, Prentice Hall Of India Suggested

Reading:

2. Consumer Behavior Leon G. Schiffman, Leslie Lazar Kanuk, Prentice Hall Of

India

3. Consumer Behavior Dr. S.L. Gupta and Sumitra Paul, Sultan Chand and Sons
Educational Publishers

4. Consumer Behavior Henry Assael (HA) Asian Books Private Ltd

UNIT – I

Introduction to consumer behavior: definition, factors influencing consumer

behavior, marketing strategies and consumer behavior, consumer decision
making process, importance of consumer behaviour; Indian consumers and their
characteristics.

1. Introduction to consumer behavior:

Consumer Behaviour
The study of consumer behavior describes what products and brands consumers
buy, why
they buy them, when they buy them, where they buy them, how often they buy
them, how
often they use them, how they evaluate them after the purchase, and whether or
not they
buy them repeatedly. The term consumer behaviour, individual buyer behaviour,
end user
behaviour and consumer buying behaviour all stands for the same. Consumer
behaviour is
the study of how individuals, groups and Organisation select buy, use and dispose
of goods
and services, ideas or experiences to satisfy their needs and wants
Meaning:

Consumer behavior is the study of how individual customers, groups or

organizations select, buy, use, and dispose ideas, goods, and services to
satisfy their needs and wants. It refers to the actions of the consumers in the
marketplace and the underlying motives for those actions.

Marketers expect that by understanding what causes the consumers to buy

particular goods and services, they will be able to determine—which
products are needed in the marketplace, which are obsolete, and how best to
present the goods to the consumers.

Definition:

1. According to Engel, Blackwell, and Mansard, ‘Consumer behaviour

is the actions and decision processes of people who purchase goods and
services for personal consumption’.

2. According to Louden and Bitta, ‘Consumer behaviour is the decision

process and physical activity, which individuals engage in when evaluating,
 acquiring, using or disposing of goods and services’.

Studying consumer behavior is important because it helps marketers understand

what influences consumers’ buying decisions.

By understanding how consumers decide on a product, they can fill in the gap in
the market and identify the products that are needed and the products that are
obsolete.

Studying consumer behavior also helps marketers decide how to present their
products in a way that generates a maximum impact on consumers.
Understanding consumer buying behavior is the key secret to reaching and
engaging your clients, and converting them to purchase from you.

A consumer behavior analysis should reveal:

 What consumers think and how they feel about various alternatives
(brands, products, etc.);
 What influences consumers to choose between various options;
 Consumers’ behavior while researching and shopping;
 How consumers’ environment (friends, family, media, etc.) influences
their behavior.
Consumer behavior is often influenced by different factors. Marketers should
study consumer purchase patterns and figure out buyer trends.

In most cases, brands influence consumer behavior only with the things they can
control; think about how IKEA seems to compel you to spend more than what
you intended to every time you walk into the store.
So what are the factors that influence consumers to say yes? There are three
categories of factors that influence consumer behavior:

1. Personal factors: an individual’s interests and opinions can be influenced

by demographics (age, gender, culture, etc.).
2. Psychological factors: an individual’s response to a marketing message
will depend on their perceptions and attitudes.
3. Social factors: family, friends, education level, social media, income, all
influence consumers’ behavior.

1.1 Factors influencing consumer behavior:-

The factors which influence consumer behaviour

A large number of factors influence our behaviour. Kotler and Armstrong (2008)
classify these as:

1. Psychological (motivation, perception, learning, beliefs and

attitudes)

2. Personal (age and life-cycle stage, occupation, economic

circumstances, lifestyle, personality and self concept)

3. Social (reference groups, family, roles and status)

4. Cultural (culture, subculture, social class system).

In a general scenario, we’ve got five main factors that determine consumer
behavior, i.e these factors regulate if a target customer purchases a product or not.
These factors are namely Psychological, Social, Cultural, Personal, and
Economic factors.
1. Psychological Factors

Interestingly, human psychology is actually an integral factor that influences

consumer behavior although these factors aren’t exactly easy to measure. A few
integral psychological factors driving the behavior of consumers are :

 Motivation

Motivation actually becomes a considerable defining factor influencing a

person’s buying behavior. A popular motivation theory is Maslow's theory
of hierarchy of needs in which he developed a model that lays the foundation
for 5 different levels of human needs where he lays the base with
psychological needs and moves on to safety needs, social needs, esteem
needs and finally heading to self-actualization needs. Amongst these
requirements, our basic requirements and security needs are generally put
above all needs.

For instance, The U.S. Army’s famous “Be All You Can Be” slogan and
advertising campaigns encouraged young adults to join the army (self-
actualization).

Be All That You Can Be In The Army commercial 1982

 Perception
Our perception is shaped when we gather information regarding a product
and examine it to generate a relevant image regarding a certain product.
 Whenever we see an advertisement, review, feedback or promotion
regarding a product, we form an image of that item. As a result, our
perception plays an integral role in shaping our purchasing decisions.

Being in the times where we are gathering constant information by

simultaneously surfing through the Internet, watching TV, and exploring
through our cell phones, the perception we gain through all these resources
plays a definite role in regulating our consumer behavior.

 Learning
Every time we purchase a product we get a deeper knowledge about it
through experience. This learning mainly depends on our experience,
knowledge, and skills.
This learning can either be cognitive or conditional. While in cognitive
learning, we use our knowledge for finding satisfaction and fulfilling his
needs with the item we purchase, conditional learning is where we get
constantly exposed to a situation, enabling us to respond towards it.

For instance, we all seek resources through nonexperiential learning as we

read reviews for books and products on platforms like Amazon, learn about
film reviews through platforms like Rotten Tomatoes, and explore
restaurants through Yelp.

 Attitudes and Beliefs

We’ve all got certain attitudes or beliefs that consciously or subconsciously
prompt our purchasing decisions. For instance, while your friend who
believes caffeine is adverse for one’s health may prefer tea, you who believe
that caffeine energizes us, may prefer coffee. Our attitude and what we
believe influence our behavior towards a product and also play a key role in
 shaping the product’s brand image. So understanding a consumer’s attitude
and belief becomes useful for marketers to design their marketing
campaigns.

2. Social Factors

We are all social animals so of course our purchasing decisions are impacted to
some extent by the people around. We are constantly working on imitating other
human beings, longing to fit in our surroundings. As a result social factors
influence our buying behavior regarding items. Some of these factors include :

 Family
Our families actually have a considerable role to play in impacting our
purchasing behavior. We form an inclination or aversion towards certain
products from our childhood by observing our families use that product and
persist in using those products as we grow up.

For instance, if our family members are fond of Papa Jones, we would
subconsciously end up choosing Papa Jones over say, Pizza Hut or
Domino’s.

 Reference Groups
Reference groups are basically groups of people with whom we associate
ourselves. These include clubs, schools, professional or playgroups,
churches, and even acquaintances or a group of friends, etc. The people in
the reference groups normally have a common pattern of purchasing and an
opinion leader who influences them in terms of their buying behavior.
  Roles and status
We are all of course influenced by the role that we hold in society. The
higher position we hold, the more our status affects what and how much we
purchase. For instance, the CEO of a company and a normal employee
would have a varied buying pattern.

3. Cultural factors

We all have our values and ideologies that are shaped by the values and ideologies
of the society we exist in and the community we belong to. Our behavior is
consciously or subconsciously driven by the culture followed by that particular
community.

For instance, let’s take the example of McDonald's India

India has a massive consumer base with McDonald’s has adjusted its menu to
match the tastes and preferences of the local community in whose vicinity it
resides. For instance, on account of cows being sacred and widely worshipped in
India, chicken has been put in place of beef. The fast-food corporation introduced
McCurry Pan in India, a baked menu item consisting of curried vegetables.

A few significant cultural factors include :

 Culture
Our cultural factors are basically basic requirements, values, wants
behaviors, and preferences that are observed and absorbed by us from our
close family members as well as other significant people around us.
  Subculture
Amongst a cultural group, we have several subcultures. These groups share
a common set of values and beliefs. They can consist of people from varied
nationalities, religions, caste, and geographies. An entire customer segment
is formed by this customer segment.

We’ve taken an easy example of Burger King here. In their advertising

strategy, the platform wished its “Ramadan Kareem” implying to have a
generous Ramadan.

Burger King has adapted to the Muslim culture and created its advertisement
in Ramadan style by showing a mostly eaten burger, presented in the shape
of a crescent moon.

Social Class
Each society all over the globe is defined and known by some form of social
class. This social class is determined collectively by our family
backgrounds, occupation, education, and residence location. Our social
class is another component holding the reins for consumer behavior.

4. Personal Factors

Alongside social, psychological, and cultural factors, we all have factors that are
personal to us that influence our choices. These factors vary from person to
person, introducing varied perceptions and behavior.

Some of these personal factors include:

 Age
Age is one of the primary factors that impact our preferences. The vibrant
and flashy purchasing choices of a teenager would obviously differ from
what an elderly person purchases. Meanwhile, we have middle-aged people
who are naturally more focused on purchasing properties, houses, or
vehicles.

For instance, as Baby Boomers proceed for retirement they are targeted by
marketers with messages regarding prescription drugs as well as other health
care items such as home, financial security, or insurance, all of which are
relevant issues with regard to their age.

 Income
Our income definitely impacts our purchasing behavior. The higher our
income, the more purchasing power we hold and vice versa. Higher
disposable income compels us to spend more on luxurious items while a
lower or mediocre income makes us spend more on our basic needs like
education, groceries, and clothing.

 Occupation
Our occupation largely steers our purchasing decision making. We all tend
to purchase the items that are relevant or suitable for our profession. For
instance, a businessman would have a different clothes purchasing pattern
in comparison to an artist.

 Lifestyle
Our way of life is one of the most powerful influencers that controls our
choices. Our lifestyle dominates our buying behavior quite significantly.
 Suppose we are on a diet then the products we purchase will also
complement our diet, from food, weighing scale to using protein.

For instance, Oprah Winfrey’s brand has been developed to charm women
that are socially conscious seekers, readers, idealists, self-helpers, working
women, who work towards achieving balance and self-fulfillment.

5. Economic Factors

The purchasing quirks and decisions of the consumer largely rely upon the market
or nation’s economic circumstances. The more that a nation is prosperous and its
economy stable, the larger will be the money supply of the market and the
consumer’s purchasing power.

A strong, healthy economy brings purchasing confidence while a weak economy

reveals a strained market, marked by a weakened purchasing power and
unemployment.

Some significant economic factors include:

 Personal Income:
Our personal income is the criteria that dictate the level of money we will
spend on buying goods or services. There are primarily two kinds of
personal incomes that a consumer has namely disposable income and
discretionary income.

Our disposable income is mainly the income that remains in hand after
removing all necessary payments such as taxes. The greater the disposable
 personal income the greater would be the expenditure on several products,
and the same would be the case when it is the other way round.

Meanwhile, our discretionary personal income would be the income that

remains after managing all the basic life necessities. This income is also
used when it comes to purchasing shopping goods, durables, luxury items,
etc. An escalation in this income leads to an improvement in the standard
of living which in turn leads to greater expenditure on shopping goods.

 Family Income:
Our family income is actually an aggregate of the sum total of the income
of all our family members. This income also plays a considerable role in
driving consumer behavior. The income that remains after meeting all the
basic life necessities is what is then used for buying various goods, branded
items, luxuries, durables, etc.

 Income Expectations:
It's not just our personal and family income that impacts our buying
behavior, our future income expectations also have a role to play. For
instance, if we expect our income to rise in the future, we would naturally
spend a greater amount of money in purchasing items. And of course, in
case we expect our income to take a plunge in the near future, it would have
a negative influence on our expenditure.

 Consumer Credit:
The credit facilities at our behest also impact our purchasing behavior. This
credit is normally provided by sellers, either directly or indirectly via banks
or financial institutions. If we have flexible credit terms as well as accessible
 EMI schemes, our expenditure on items is likely to increase and in less
flexible credit terms would result in the opposite.

 Liquid Assets:
Even the liquid assets we’ve maintained influence our purchasing behavior.
In case you are wondering, these are the assets that get promptly converted
into cash such as stocks, mutual funds, our savings or current accounts. If
we have more liquid assets, there is a greater likelihood of us spending more
on luxuries and shopping items. Lesser liquid assets meanwhile result in
lesser expenditure on these items.

 Savings:
The savings generated from our personal income are also regulating our
buying behavior. For instance, if we take the decision of saving more from
our income for a certain period of time, our expenditure on goods and
services would be lesser and for that period and if we wish to save less, our
expenditure on such items would increase.

1.2 Marketing strategies and consumer behavior: -

If you want to know how to sell more, then you better know why customers buy."

-Steve Ferrante

As any business runs from the revenue they generate, and revenue is a direct
outcome from the consumer, it becomes precisely crucial to understand the
consumer. The concept of marketing advocates that in order to make and
maximise their profit an organisation should satisfy their customers' needs.
Before we analyse the relationship between the consumer behaviour and the
marketing strategy of an organisation, we need to first understand what customers
buy and how they use it, where customers buy, when customers buy, how
customers choose, why they prefer a product, how they respond to marketing
programs and would they buy the product again?

What customers buy and how they use it

The most basic answer to 'what' a customer buys, is benefits. A consumer's choice
isn't very much affected by the product brand; all he sees are the benefits of the
product. For instance, a customer buys a soap for the sole purpose of cleansing,
it doesn't matter to him in the first place if it's a branded soap or a normal soap.
The reason that he buys some branded soap is because of the other values and
benefits the product has to offer, like good smell, lasting freshness, etc.

Elements for Marketing Strategy

There are three stages for the development of any marketing strategy namely;
consumer affect and cognition, consumer behaviour and the consumer
environment.

Here, affect refers to feeling responses, whereas cognition refers to thinking about
those responses. Consumers can either have one of the feelings or can have both
affect and cognition during the making of the purchase decision.
Consumer Behaviour & Marketing Strategy

Consumer behaviour is dynamic in nature. Thoughts, feelings and actions of an

individual consumer, targeted consumer groups and the society at large constantly
change. This hereby makes the making of any marketing strategy much more
difficult yet exciting. Consumer behaviour involves a lot of interaction, let itbee
interactions among people's thinking, feelings, actions or interactions with the
environment. Here, the marketers need to understand three simple yet
complicated things:

1. What products and brands mean to the consumers?

2. What consumers must do to purchase and use them?
3. What influences shopping, purchase and consumption?

More on this, consumer behaviour involves exchanges; exchanges between

people giving up of something of value and receiving something in return;
something like consideration. Here, the role of marketer is to create exchanges by
formulating and implementing multiple marketing strategies.

The affect and cognition from the wheel of consumer analysis can help a marketer
decide what type of customers need to be targeted, and what should be the
positioning of the brand in the minds of the customer. This in fact, is the most
critical and vulnerable for the premium brands to create their USPs.

Profferingly, most marketing strategies are based on the analysis of the business
market, as the consumers are influenced by the environment they live in.

The another benefit of consumer behaviour is that mostly in the retail industry it
can help in understanding and deciding how to alter maybe the layout of the store
so that it is easier for the customer to make decisions and also helps the marketer
in pushing the customer to purchase often. Another reason of what makes the
understanding of consumer behaviour important in the implementation of any
marketing strategy is understanding the background of the customer, his
demographic factors.

Marketing strategy can be proffered to as the designing, implementing and

controlling a plan that influences exchanges to achieve organisational goals. In
the consumer market, marketing strategy is designed to:

1. Increase chances of favourable thoughts and feelings of particular

products, services and brands among consumers.
2. Increase chances of trail and purchase.

Marketing strategies are developed by manufacturers, retail stores, catalog

retailers, e-tailers and other direct marketers to:

1. Increase chances of favourable thoughts and feelings among consumers

about purchasing on them.
2. Increase the chances of actual purchase.

Marketing strategies are again developed by companies that make funds available
for purchase to increase the chances of usage of services offered by consumers.

Marketing strategies involve developing and presenting marketing stimuli

directed at selected markets to influence:

1. What consumers think?

2. How consumers feel?
3. What consumers do?

The very essence of any marketing strategy is understanding the markets, develop
and implement superior strategies to attract and hold them profitably.
The power of marketing and the ability of consumer research and analysis is to
yield insight into consumer behaviour should not be discontinued or misused.

Marketing strategies queries Consumer Behaviour can answer

1. Which consumers are likely to buy this product and our brand, what are
they like, how are they different from consumers who don't buy, and how
do we reach them?
2. What criteria are consumers likely to use to decide which products and
brands to purchase? What will be the consumer decision entail, and what
will influence it?
3. Is brand image, convenience, price, particular product attributes, or other
criteria most important to consumers of this product?
4. What strategies should be used to encourage consumers to purchase our
brand and not purchase those of competitors?
5. How do consumes process information about products and how can this
process be influenced to increase the chances that consumers will have
favourable impression offer brand?
6. What do consumers think and feel about our brand versus competitive
brands? What can be done to improve their opinion of our brand?
7. How can we increase the chances that consumers will process information
about our brand and come up with a favourable impression?
8. What behaviours do consumers have to perform to purchase and use this
product and our brand? How can we increase the frequency with which
consumers purchase and use this product that could give us a competitive
advantage?
9. In what situations are consumers likely to purchase and use this product
and our brand? How can the number of these situations be increased? What
environmental factors influence purchase and use?
 10. What price are consumers willing to pay for our product and still believe
they are getting good value? Should sales promotion be used and, if so,
which ones and how should they be timed?
11. What can we do to satisfy and even delight consumers with our brand so
that they become loyal customers?
12. How can we delight consumers of our brand and also meet the needs of
owners, employees, suppliers, channel members, society and other
stakeholders?

To conclude consumer behaviour has direct implications on the classical product

mix-the 4Ps.

Consumer Behaviour helps in marketing of various goods which are in scarcity.

Business organizations across globe try to influence consumer by encouraging

them to buy products and services. This is done by studying about the needs of
the consumer and creating appropriate strategies so that consumer buys products.
There are several marketing strategies used for influencing consumer behavior
which affects the buying decision.

The first thing to be kept in mind while building strategies for marketing products
is communicating with consumers emotionally. This can be done by giving
promotional material in order to get attention of consumer. It has been found that
consumers are attracted to products that create emotions in the form of joy and
surprise.

1.4 Consumer decision making process: -

The consumer decision making process is the process by which consumers
become aware of and identify their needs; collect information on how to best
solve these needs; evaluate alternative available options; make a purchasing
decision; and evaluate their purchase.

Understanding the consumer decision making process is important to any

business, but eCommerce businesses have a unique opportunity to optimize
it. Because online shoppers generate so much more data than those in brick-and-
mortar stores, online retailers can use that data to implement conversion strategies
for every stage of the process.

The 5 Stages of the Consumer Decision Making Process — And How to

Optimize

It’s important to note that the consumer decision making process has many
different names, including but not limited to the buyer journey, buying cycle,
buyer funnel, and consumer purchase decision process. But all the names
essentially refer to the same thing: The journey a customer goes through when
making a purchase.

So, here’s a breakdown of what happens in each step:

1. Need recognition (awareness): The first and most important stage of the
buying process, because every sale begins when a customer becomes aware
that they have a need for a product or service.
2. Search for information (research): During this stage, customers want to
find out their options.
3. Evaluation of alternatives (consideration): This is the stage when a
customer is comparing options to make the best choice.
4. Purchasing decision (conversion): During this stage, buying behavior
turns into action – it’s time for the consumer to buy!
 5. Post-purchase evaluation (re-purchase): After making a purchase,
consumers consider whether it was worth it, whether they will recommend
the product/service/brand to others, whether they would buy again, and
what feedback they would give.
Now, to show you how these stages of the buying decision process play out in
real life, here are consumer buying process examples that outline each of the steps
and ways for your eCommerce brand to maximize results during each stage.

1. Need recognition (awareness)

The need recognition stage of the consumer decision making process starts when
a consumer realizes a need. Needs come about because of two reasons:

1. Internal stimuli, normally a physiological or emotional needs, such as

hunger, thirst, sickness, sleepiness, sadness, jealousy, etc.
2. External stimuli, like an advertisement, the smell of yummy food, etc.
Even if the core cause is vanity or convenience, at the most basic level, almost all
purchases are driven by real or perceived physiological or emotional needs. The
causes for these stimuli can be social (wanting to look cool and well dressed) or
functional (needing a better computer to do work more effectively), but they
speak to the same basic drivers.

We buy groceries because without food in the house, we’ll be hungry. We buy
new clothes because we’ll be cold, or we feel like everyone else has the latest
handbag of the season, and we don’t want to be left out.

Example: Looking for a new camera

Think about it: Why does someone start looking for a new camera? Likely, their
old camera isn’t working well anymore, or they simply want a nicer camera.
Maybe they have a vacation coming up. Or maybe they want to give the camera
as a present to their sister, who just had her first child.
How in the world is this related to a physiological need? Simple. Without a
camera, they won’t be able to document special moments; therefore, they have an
emotional desire to save these moments so that they are happy and not sad.

This emotional desire is the internal stimuli in this situation. Sure, a camera isn’t
a life necessity keeping them from surviving, but it does solve a core emotional
need.

What happens after someone identifies a need? They begin looking for a solution!
Which brings us to the next step in the customer journey: searching for
information.

2. Search for information (research)

As soon as a consumer recognizes a need and begins to search for an answer, you
must be there to help! And where do consumers generally go to look for answers
today? Google!

Example: Researching cameras

Now that the customer has realized a need to get a new camera, it’s time to find
solutions to his problem. In this stage, it’s imperative that you are visible to the
consumer searching for an answer.

Here are some things a consumer may be searching for:

 Best cameras 2020

 What is the best affordable camera?
 Which cameras are top-rated?
The amount of information a customer needs to search for depends on how much
he already knows about the solutions available, as well as the complexity of
choices. For example, let’s say there’s someone looking for a camera as a gift,
and he has no idea which type of camera he wants, or what features he needs.
He will need more information than someone who already knows exactly the type
of camera he wants to buy, but just needs to find the right product and the right
way to purchase it.

The amount of searching necessary is entirely dependent on the situation, and it

can vary widely.

So how do customers search for information? By using internal information (their

previous knowledge of a product or brand) as well as external information
(information about a product or brand from friends or family, reviews,
endorsements, press reviews, etc.).

The biggest way you can optimize your online business during the need
recognition and awareness stage is by making sure you show up in search results
— and that what the consumer sees makes an impression.

Strategies to optimize during the research stage

First, make sure you’re optimizing your eCommerce storefront to rank for the
keywords that matter to your brand. For a complete guide on eCommerce SEO,
check out our guide here.

Once you know how to strategize your SEO, you’ll want to make sure your results
are well optimized to convert. User-generated reviews can help you to build brand
awareness during the research stage. In fact, it’s one of the most effective ways
to do it.

Reviews can help your store get seen in search results by increasing the likelihood
of your store showing up for long-tail keywords. Reviews improve SEO because
they give your online business a steady source of keyword rich, relevant content.

So when someone opens up their laptop and starts searching for a new camera,
reviews will help you be there:
Online businesses that use reviews see an increase in search traffic. You can
leverage reviews in Google Rich Snippets and Product Listing Ads so that if a
customer searches in Google, you’ve added credibility to your listing. Businesses
that show reviews in their search results stand out from the competition!

3. Evaluation of alternatives (consideration)

Now that the consumer has done research, it’s time to evaluate their choices and
see if there are any promising alternatives. During this phase, shoppers are aware
of your brand and have been brought to your site to consider whether to purchase
from you or a competitor.

Consumers make purchase decisions based on which available options best match
their needs, and to minimize the risk of investing poorly, they will make sure
there are no better options for them.

Their evaluation is influenced by two major characteristics:

1. Objective: Features, functionality, price, ease of use

2. Subjective: Feelings about a brand (based on previous experience or input
from past customers)
Example: Comparison shopping for a camera

If you’re a camera seller or brand, your goal in the consideration stage is to

convince customers your camera is the best choice. And the most effective way
to do that is to keep them on your site longer and find ways to earn their trust.

Consumers will first weigh the objective characteristics of your camera. Does it
have all the features I want? Is it easy to use? Is it in my budget? Then, the
subjective consideration will kick in: Do other people think it has all the features
it should? Has anyone else who bought it expressed any difficulty with learning
how to use it? Is it generally considered a good value for the money?

You only have one shot – so you need to make the most of it. Of course, it’s
important that your site is informative, your prices are competitive, your value is
clear, etc. But if you’re identical to a competitor in every single way, the word of
previous customers is what will set you apart.

Strategies for optimizing in the consideration stage

In this stage, use reviews and user-generated content examples on your site to
increase engagement and boost customer trust.

The first place you need to have reviews is on your home page, so as soon as
customers land on your site, they see content from past buyers. You also need to
display reviews on your product pages, so customers looking for information can
see trustworthy input from past buyers.

Additionally, using reviews in a home page carousel reduces bounce rate while
increasing time spent on site and page views. That boost in engagement increases
the likelihood that customers will learn more about your store and leave your site
with a positive memory of your brand.

Reviews also help kick start the navigation to other product pages. Make sure to
get reviews on a wide variety of products in order to increase click throughs from
category pages into product pages.

Also, community questions and answers are another powerful type of user-
generated content that can help answer shoppers’ questions so that they have no
reason not to buy from you.
4. Purchasing decision (conversion)

Alright, now it’s money time. This is the stage when customers are ready to buy,
have decided where and what they want to buy, and are ready to pull out their
credit cards.

But wait! Not so fast. You can still lose a customer at this stage. This is the stage
when the purchasing experience is key – it’s imperative to make it as easy as
possible.

Example: Abandoning checkout for a camera

Let’s say your potential customer has gotten to the checkout stage of his purchase,
and has second thoughts: What if the recipient wants a different camera? What if
this camera is missing a key feature that the recipient would want? How difficult
will it be for the recipient to return the camera if it doesn’t meet their needs?

This shopper will likely abandon his cart, and go back to the research stage.
Maybe he’ll end up back on your site, but maybe he won’t. Your goal at this stage
is to get him to complete the purchase now, so you don’t lose him forever.

Strategies for optimizing in the conversion stage

Many businesses choose to display reviews on checkout pages. This can be

effective if done correctly. You need to focus on building trust, but don’t distract
the customer from completing the purchase.

If you want to display user-generated content during checkout, use site reviews
rather than customer photos or product reviews, and make sure they aren’t
clickable. You want to focus on building trust and not distracting.
5. post-purchase evaluation (re-purchase)

In this stage of the consumer purchase decision process, consumers reflect on

their recent purchase. They think about how they feel about it, if it was a good
investment, and most importantly, if they will return to the brand for future
purchases and recommend the brand to friends and family.

In this stage, you need to have a post-purchase strategy to increase the likelihood
that customers will engage with your brand again in the future. Return customers
account for 1/3 of a store’s total income on average, so make sure you’re not
missing out on this super valuable opportunity to increase your eCommerce
conversion rate by turning shoppers into repeat buyers.

Example: Getting feedback and encouraging repeat purchases

In the camera example, the customer has already bought from your brand and
they’re evaluating their purchase. This is usually when they will leave a review
about their experience. This is also when they are at their most engaged with your
brand, and they can be susceptible to strategies that encourage long term
engagement.

At this stage, you want to ensure that customers buy again, and you want to
encourage them to leave UGC that helps other buyers in the future.

1.4 Importance of consumer behaviour;

Understanding consumer behavior in the market is a crucial aspect of modern

business. From making purchasing decisions to influencing others, it is the study
of factors that play a role in the choices, actions, and attitudes of buyers. By
analyzing this behavior, companies can better understand their customers and
make strategic business decisions that lead to increased sales and profits.
Consumer behavior research helps companies identify customers’ needs,
preferences, and motivations that drive their purchasing decisions. By gaining
insights into why customers buy certain products or services, businesses can
develop effective marketing strategies to meet their demands and
improve customer satisfaction. Understanding consumer behavior fosters a
deeper understanding of customers and ensures long-term sales stability.
Consumer behavior is of most importance to marketers in business studies as the
main aim is to create and retain customers,” says Professor Theodore Levitt
(Kumar, 2004). Consumer behavior is not just important to attract new customers,
but it is very important to retain existing customers as well.

The basic underlying objective of Marketing is to sell goods and services to as

many people as possible to make more profit. Earlier it was relatively easy to
fulfil the objective, but at present time it has become very challenging to do so as
consumers are getting bombarded with a huge pool of information about the
products or services being offered. It has become a necessity to undergo proper
research to sell a product or service or to convince consumers to buy a product or
service. Below Mentioned are some of the points highlighting the value of the
Study of Consumer Behaviour.

1. Staying relevant in the Market:

Looking at the rapid changes happening in the current situation, one of the biggest
challenge being faced by the Organisation right now is staying relevant in the
Market. One of the main reason for this rapid change is the constant shift in
consumer behaviour. Consumers today have an enormous supply of information
resulting in rapid switches between different products different companies etc. to
Overcome the issue, it is of great importance to regularly study consumer
behaviour to get to know the changes in consumer attributes to stay relevant in
the market.

2. To Create and Retain Customers:

According to Professor Theodore Levitt one of the main aims of consumer
behaviour is to create and retain customers. If the consumers are satisfied with
the product, he or she will buy the same product again. Therefore, the product
should be marketed by an organisation in such a way that it convinces a customer
to buy the product. Consumer behaviour helps marketers in this regard to know
what ticks the consumers the first time to buy a particular product and what
satisfies them enough to keep buying the particular product or services again and
again.

3. Innovate new Products:

In an organisation, continuous strive for improvement in success rate largely

depends on the innovation in the offered product or services line. To accurately
predict and ace innovation, the need for study of Consumer behaviour is a must.
Researching the same not only enables to make new products/services satisfying
the needs and wants of consumers but also to tweak the present line of offerings
to fulfil the consumer's needs and demands.

4. To Optimize Marketing Strategies:

The theories and concepts of Consumer behaviour help marketers to optimize

their sales and to create efficient marketing strategies. Moreover, these theories
provide marketers with information on the consumer’s behaviour on expenditure.
The study helps to know what influences the consumers to spend more money on
a product. These two factors ultimately help decision makers to plan strategies
that should be practised by the marketers for successful marketing of a product.

5. Improve Customer Service

Each individual consumer will have individual and different customer service
needs, understanding this distinct difference between each consumer's needs
requires an extensive and detailed consumer behaviour study. It will not only help
to bifurcate different types of consumers but will also help to target each group
based on different strategies.

1. To design production policies,

2. Know the effect of price on buying,

3. Exploit the market opportunities,

4. Design marketing mix,

5. Implement STP strategies,

6. Helps in understanding diversified preference,

7. Understanding of various roles played by consumer,

8. Results in consumer satisfaction.

Conclusion

In a nutshell, consumer behaviour plays an important role for sales folks or

marketers. As products are made to cater to consumer’s needs and demands, the
products should be carefully marketed for the successful achievements of
organizational goals. The study of consumer behaviour helps in analysing
different factors that have an influence on the buying decision of the consumers.
Consumer behaviour analysis has emerged as an important tool to understand
customers. By looking into consumer psychology and the forces behind customer
buying behaviour, companies can craft new products, marketing campaigns
and increase profitability.

1.5 Indian consumers and their characteristics.

Indian consumers are marked by great diversity; diversity in religion, language,
culture, tradition, dress, food-habit, custom etc. The people of India belong to
different religious groups—Hindus, Muslims, Christians, Sikhs, Jains, Buddhists
and Parsee. Further there are sects, sub-sects, castes and sub-castes.

Classification of Indian Consumers:

The classification of Indian consumers based on economic status is suitable for
the present study. Accordingly, we may divide Indian consumers into four
classes—Wealthy Class, Middle Class, Lower Middle Class and Poor Class.

1. Wealthy Class:
The senior successful top business executives drawing salary of Rs. one lakh or
more per month fall in this class. The persons in this group often believe in
showing their new acquired richness. They buy high priced cars, house, get best
education for their children and get treatment in the best hospitals etc. This class
wants to have best enjoyment of life and looks for the future of their family.

2. Middle Class:
The next class according to economic status is middle class, whose mean income
in India varies between Rs. 10,000 and Rs. 20,000 per month, though some have
higher income. They are mostly junior executives. They are white collar- or
workers but also include blue collar persons and small traders.

These people have great ambition to move-up and is one of the biggest class in
every society. Sometimes, they are called cream of the society. They are generally
well educated or technical hands and always try to improve their skills so that
they can move up. They want respectability in the society and therefore on certain
occasions they spend more than their capacity.

Most of them spend some time for worshiping their faith and participate in
religious and social functions. They take all possible care that their children do
well in competitive admission tests of medical, engineering, management and
other professional courses.

3. Lower Middle Class:

Though their purchasing power is low, their size is very large. NCEAR has found
that 75% of the purchases, like, cooking oil, tea, detergent cake, bath soap, tooth
powder, footwear, transistors, mobile phones, etc. are made by this class. In
recent years, this group is receiving the benefits of several social, educational and
economic programmes. Over time, a good part of this group may advance
economically and join the upper middle class. Already, a good part of this group
is a part of the upper middle class.

4. The Poor Class:

The ‘below the poverty line’ (BPL) is large in size. They are consumers of un-
brand products. However, this class is coming up and emerge as consumers of
branded consumer products.

Indian consumers are also associated with values of nurturing, care and affection.
Product which communicate feelings and emotions gel with the Indian
consumers. Consumers undertake complex buying behavior when they are highly
involved in a purchase and perceive significant differences among brands.

The Indian consumer market divides itself into urban and rural parts, attracting
marketers worldwide to invest in the country. Three main groups may distinguish
the characteristics of the Indian consumer market:
 The enormous middle class
 The relatively large affluent class
 The small economically disadvantaged group
There are a lot of corporations that believe India is one of the markets from which
future growth is to emerge, affecting the future of consumption in fast-growth
consumer markets. The favourable demographic mix of India’s consumer
market and increased income will serve as the key drivers of the future of India
in the world marketplace.
Characteristics of the Indian consumer market
Consumers are purchasers who acquire products and services for personal use
rather than selling. However, not all customers have the same likes, preferences,
and purchasing behaviours, owing to the unique characteristics of the Indian
consumer market. Market segmentation is the practice of dividing and
identifying major client groupings. It includes demographic, psychographic,
behavioural, and geographic factors.
When a trademark is used to identify a product or service as belonging to a
particular brand or firm, it is referred to as a service mark. One of India’s most
defining characteristics is the presence of a strong feeling of awareness in its
marketplace. It suggests that a customer has gotten more acquainted with a
particular brand of goods and feels that these items are authentic and of higher
quality when he acts in this way.
Customers’ behaviour is often characterised by a propensity to bargain, as seen
by the behaviour of consumers who purchase goods. Purchasing things at a lesser
price than the one given by the provider is something that they are interested in.
Customer behaviour in India is similar to that of their American counterparts in
that they do not follow a regular pricing plan. The practice of bargaining is still
quite popular in India’s markets, where it has been for centuries, which will
affect the future of India in the world marketplace.
When it comes to pricing, buyers are more concerned with price than the variety
of things on offer. It leads them to choose goods that are too pricey as a
consequence. It seems that consumers are starting to purchase higher-quality stuff
at a higher price, indicating the beginning of a slight change in the future of
India in the world marketplace.
The consumption pattern is shifting because of increased educational attainment,
more affluence and improved quality of life, and a need for greater comfort and
convenience. Fridges, tape recorders, coolers, sewing machines, and other home
equipment are increasingly being purchased by low- and middle-income families
alike.
The adoption of new reasons for purchasing has increased at an alarmingly quick
pace due to the credit market, which includes guarantees and warranty facilities
available on the market. The availability of these facilities makes it feasible for
trade and commerce to flourish and thrive in modern times.
As more purchasers become aware of their legal responsibilities, the number of
transactions increases. They have begun to publicise their issues via the media
and by submitting formal complaints to the appropriate authorities and
organisations, among other methods. A consumer court may be used to register a
complaint against a corporation and seek compensation for any damages or losses
sustained as a result of the complaint.

UNIT – II
Attitude - models and theories of attitude, tri-component attitude model,
behaviour intention model and change in attitude; Personality and self-
concept: nature of personality, theories of personality (Freudian, Jungian,
Neo-Freudian and Trait theory), personality and understanding consumer
diversity.

Attitude - models and theories of attitude, tri-component attitude model,

behaviour intention model and change in attitude;

2.1 Attitude: -

An attitude is a general and long-lasting positive or negative opinion or feeling

about a person, object, or problem. Attitudes are developed through direct
experiences, social influence, or media exposure. They are built on three pillars:
emotions, behaviour, and cognition. Furthermore, evidence suggests that attitudes
develop as a result of psychological needs (motivational foundations), social
interactions (social foundations), and genetics (biological foundations), though
this last idea is new and controversial. Attitude formation occurs in a person in a
variety of ways. The instrumental method is used to shape attitudes.

Attitude is a mental and neutral state of readiness organized through experience,

exerting a directive or dynamic influence upon individual’s response to all objects
and situations with which it is related. (G.W. Allport) Attitude as an enduring
organization of motivational, emotional, perceptual and cognitive processes with
respect to some aspect of the individual’s world (Krech and Crutchfield) Attitude
is a tendency or predisposition to evaluate an object or symbol of that object in a
certain way (Katz and Scotland)

An attitude is defined as, "a learned pre-disposition to respond in a consistently

favorable or unfavorable manner with respect to a given object". (Katz and
Scotland) In simple words, an "attitude" is an individual's point of view or an
individual's way of looking at something. To be more explicit, an "attitude" may
be explained as the mental state of an individual, which prepares him to react or
make him behave in a particular pre-determined way. It is actually acquired
feeling.

Attitude is the combination of beliefs and feelings that people have about specific
ideas, situations or other people. Attitude is important because it is the mechanism
through which most people express their feelings. In effect attitude is used in a
generic sense, as to what people perceive, feel and express their views about a
situation, object or other people. Attitude cannot be seen, but the behaviour can
be seen as an expression of attitude.

1.3 Model of Attitude:-

1. Tri-Component Model
According to tri-component attitude model, attitudes consist of three major
components, a cognitive component, an affective component, and a behavioral
component. These three components are illustrated in Figure and discussed as
follows:

Initiator Component Component Attitude

Manifestation

Stimuli: Products Affective Emotions or feelings Overall

situations, retail about specific orientation
outlets, sales attributes or overall towards object
personnel, object
advertisement and
Cognitive Belief about specific
other attitude
attributes or overall
objects
object

Behavioral Behavioral intentions

with respect to specific
attributes or overall

 Affective Component: A consumers‟ emotions or feelings about a

particular product or brand constitute the affective component of an
attitude. These emotions and feelings are evaluative in nature, because of
this nature, an individual rate an object either “favorable” or “unfavorable”.
When a consumer „likes‟ or „dislikes‟ a product, it is an evaluation based
on a vague, general feeling without cognitive information or beliefs about
the product. Or, it may be the result of several evaluations of the product’s
performance on each of several attributes. Affect laden experiences also
manifest themselves as emotionally charged states (e.g., happiness,
 sadness, shame, disgust, anger, distress, and guilt). Such emotional states
may enhance or amplify positive or negative experiences. A consumer’s
affective reaction to a product may change as the situation changes. Due to
unique motivations and personalities, past experiences, reference groups,
and physical conditions, the individuals may evaluate the same belief
differently.
 Cognitive Component: The cognitive component consists of a
consumer’s beliefs about an object. It includes the knowledge and
perceptions that are acquired by a combination of direct experience with
the attitude object and related information from various sources. This
knowledge and resulting perceptions commonly take the form of beliefs.
The total configuration of beliefs about a brand represents the cognitive
component of an attitude towards as product.
 Behavioral / Conations Component: This represents one’s tendency to
respond in a certain manner toward an object or activity. According to some
interpretations, the cognitive component may include the actual behavior
itself. In pure marketing terms it relates to the consumer’s intention to buy.
That is, behavioral intentions. A series of decisions to purchase or other
brand to friends would reflect the behavioral component of an attitude.

Theories of Attitude
Attitude Formation Theory

The attitude formation theory explains how a person’s attitude develops and why
a person may have a particular attitude, or how that attitude came to exist.
Psychology is particularly interested in attitude formation since attitudes
frequently direct behaviour.
The attitude formation theory has four theories used most often to describe
attitude formation:

 Social-judgement theory

 Cognitive Consistency theory

 Self-perception theory

 Functional theory

Social-Judgement Theory

This theory of attitude change states that the amount of persuasion is proportional
to how far the message’s supported stance differs from a person’s attitude. When
a communication advocates a position that is neither acceptable nor undesirable,
it is most likely to persuade.

Cognitive Consistency Theory

According to a subset of social psychology theory, people are primarily driven

by maintaining unity or consistency among their cognitions. The consistency
theory was initially applied to work behaviour by Abraham K. Korman in 1970,
after being introduced by Fritz Heider, Leon Festinger, and others.

Korman’s thesis is founded on two premises: a sense of balance and a self-image

norm. According to the hypothesis, workers will engage in and find pleasant
actions that enhance their mental balance. They will be motivated to perform in
a manner compatible with their self-image.

Self-Perception Theory

According to the self-perception theory, people’s attitudes and preferences are

determined by how they interpret the significance of their conduct. Critcher and
Gilovich investigated whether people make conclusions about their views and
preferences based on their mind wandering, an unobservable action.

Functional Theory

According to the functional attitude theory (FAT), beliefs and attitudes impact
various psychological functions. Many processes, such as being utilitarian
(useful), social, connected to values, or reducing cognitive dissonance, can be
influenced by attitudes. They can be beneficial and assist people in interacting
with the world. Smith, Bruner, and White (1956) and Katz (1960) created separate
and independent typologies of human attitudes regarding the purposes they
believed the attitudes fulfilled in the late 1950s when psychoanalysis and
behaviourism ruled supreme as the emphases of psychological studies.

Formation of Attitude in Organisational Behaviour

Individuals acquire attitudes from various sources, but it is important to note that
attitudes are acquired rather than inherited. Our reactions to individuals and
situations change throughout time. Direct experience and social learning are two
key influences on attitudes.

There are three categories in the formation of attitudes in organisational

behaviour:

 Job satisfaction

 Job Involvement

 Organisational commitment

Conclusion

We now know that various factors impact attitudes, including needs, social
learning, group relationships, personality traits, and cultural influences. We have
discussed the process of altering one’s mindset. We also looked into the function
of group reference, evolving group ties, persuasive communication, and
personality characteristics in affecting attitudinal change. We discussed the
importance of communicator traits and how they influence attitude change in
persuasive communication. Consequently, we now have a thorough
understanding of attitude formation and changing one’s perspective.

behaviour intention model change in attitude;-

Behavioral intention - This refers to the motivational factors that influence a

given behavior where the stronger the intention to perform the behavior, the more
likely the behavior will be performed. Subjective norms - This refers to the belief
about whether most people approve or disapprove of the behavior.

The Theory of Planned Behavior (TPB) started as the Theory of Reasoned Action
in 1980 to predict an individual's intention to engage in a behavior at a specific
time and place. The theory was intended to explain all behaviors over which
people have the ability to exert self-control. The key component to this model is
behavioral intent; behavioral intentions are influenced by the attitude about the
likelihood that the behavior will have the expected outcome and the subjective
evaluation of the risks and benefits of that outcome.

The TPB has been used successfully to predict and explain a wide range of health
behaviors and intentions including smoking, drinking, health services utilization,
breastfeeding, and substance use, among others. The TPB states that behavioral
achievement depends on both motivation (intention) and ability (behavioral
control). It distinguishes between three types of beliefs - behavioral, normative,
and control. The TPB is comprised of six constructs that collectively represent a
person's actual control over the behavior.
1. Attitudes - This refers to the degree to which a person has a favorable or
unfavorable evaluation of the behavior of interest. It entails a consideration
of the outcomes of performing the behavior.
2. Behavioral intention - This refers to the motivational factors that influence
a given behavior where the stronger the intention to perform the behavior,
the more likely the behavior will be performed.
3. Subjective norms - This refers to the belief about whether most people
approve or disapprove of the behavior. It relates to a person's beliefs about
whether peers and people of importance to the person think he or she
should engage in the behavior.
4. Social norms - This refers to the customary codes of behavior in a group
or people or larger cultural context. Social norms are considered normative,
or standard, in a group of people.
5. Perceived power - This refers to the perceived presence of factors that may
facilitate or impede performance of a behavior. Perceived power
contributes to a person's perceived behavioral control over each of those
factors.
6. Perceived behavioral control - This refers to a person's perception of the
ease or difficulty of performing the behavior of interest. Perceived
behavioral control varies across situations and actions, which results in a
person having varying perceptions of behavioral control depending on the
situation. This construct of the theory was added later, and created the shift
from the Theory of Reasoned Action to the Theory of Planned Behavior.
Limitations of the Theory of Planned Behavior

There are several limitations of the TPB, which include the following:

 It assumes the person has acquired the opportunities and resources to be

successful in performing the desired behavior, regardless of the intention.
 It does not account for other variables that factor into behavioral intention
and motivation, such as fear, threat, mood, or past experience.
 While it does consider normative influences, it still does not take into
account environmental or economic factors that may influence a person's
intention to perform a behavior.
 It assumes that behavior is the result of a linear decision-making process,
and does not consider that it can change over time.
 While the added construct of perceived behavioral control was an
important addition to the theory, it doesn't say anything about actual control
over behavior.
 The time frame between "intent" and "behavioral action" is not addressed
by the theory.
The TPB has shown more utility in public health than the Health Belief Model,
but it is still limiting in its inability to consider environmental and economic
influences. Over the past several years, researchers have used some constructs of
the TPB and added other components from behavioral theory to make it a more
integrated model. This has been in response to some of the limitations of the TPB
in addressing public health problems.

Personality and self-concept: nature of personality, theories of personality

(Freudian, Jungian, Neo-Freudian and Trait theory), personality and
understanding consumer diversity.

Personality and self-concept: nature of personality,:-

To understand a buyer needs and convert them into customers is the main purpose
of the consumer behavior study. To understand the buyer habits and his priorities,
it is required to understand and know the personality of the buyer.

Personality signifies the inner psychological characteristics that reflect how a

person reacts to his environment. Personality shows the individual choices for
various products and brands. It helps the marketers in deciding when and how to
promote the product. Personality can be categorized on the basis of individual
traits, likes, dislikes etc.

Though personality is static, it can change due to major events such as death, birth
or marriage and can also change gradually with time. By connecting with the
personality characteristics of an individual, a marketer can conveniently
formulate marketing strategies.
Self Concept

Self concept is defined as the way, in which we think, our preferences, our beliefs,
our attitudes, our opinions arranged in a systematic manner and also how we
should behave and react in various roles of life. Self concept is a complex subject
as we know the understanding of someone’s psychology, traits, abilities
sometimes are really difficult. Consumers buy and use products and services and
patronize retailers whose personalities or images relate in some way or other to
their own self-images

Traditionally, individuals are considered to be having a single self-image which

they normally exhibit. Such type of consumers are interested in those products
and services which match or satisfy these single selves. However, as the world
became more and more complex, it has become more appropriate to think of
consumers as having multiple selves.

What is Self-Concept?

The below are some of the major aspects of Self-concept

Self-Concept is Organized

We all have various views about ourselves. We all may think we are kind, calm,
patient, selfish, rude and what not. It doesn’t matter what perception you have
about yourself, but the one perception that facilitates all these insights is
organized self concept. When a person believes in something that matches his
self concept he sticks to his view and does not agree to change the same and even
if does, it takes a lot of time.

Self Concept is Learned

It is believed that self concept is learned and no person is born with a self concept.
It develops as and when we grow old. Our self concept is built when we meet
people socially and interact with them. We are the ones who shape or alter our
self concept and its quite natural that we may have a self concept different for
ourselves as compared to what people think about us.

For example − If an individual thinks, he is very generous and helpful, it may

not necessarily be the case with others. Others may see him as a selfish person.

Self Concept is Dynamic

Our self concept in life is not constant and it may change with instances that take
place in our lives. When we face different situations and new challenges in life,
our insight towards things may change. We see and behave according to the things
and situations.

Thus, it is observed that self concept is a continuous development where we let

go things that don’t match our self concept and hold on those things that we think
are helpful in building our favorable perception.

Self concept is the composite of ideas, feelings, emotions and attitudes that a
person has about their identity and capabilities.

nature of personality,:-

The word personality itself stems from the Latin word 'personal', which refers to
a theatrical mask worn by performers in order to either project different roles or
disguise their identities. At its most basic, personality is the characteristic patterns
of thoughts, feelings, and behaviors that make a person unique. It is believed that
personality arises from within the individual and remains fairly consistent
throughout life.

Nature of Personality:
Personality has many meanings. In consumer studies, personality is defined as
consistent responses to environmental stimuli or we can also say patterns of
behaviour that are consistent and enduring. An individual’s personality helps
marketers to describe consumer segments as it provides for orderly and
coherently related experiences and behaviour.

Personality characteristics may be a basis for product positioning. For example,

one segment of the market may die because they want to stick to the group norms
and therefore uses diet product. In contest another segment is on diet because of
internal need.

Determinant of Personality in Psychology

1 Biological Factors-

1. Body Built,
2. Physical defect,
3. Physical attractiveness,
4. Health Conditions

2 Psychological Factors
1 Intellectual Determinants
2 Emotional Determinants
3 Excessive Love and Affection
4 Self-disclosure
5 Aspiration and Achievements
6 Achievements
7 Goal Setting
3 Environmental Factors
1 Social Acceptance
2 Social Deprivation
3 Educational Factors
4FamilyDeterminants
5 Emotional Climate of Home and Ordinal Position
6 Size of the Family

Trait Theory

Traits are the features of an individual or tendency of an individual in a particular

manner. Traits help in defining the behavior of consumers. According to the Trait
theorists, an individual’s personality make-up stems out of the traits that he
possesses, and the identification of traits is important.

Following are the few of the most common traits −

 Outgoing
 Sad
 Stable
 Serious
 Happy go lucky
 Relaxed
 Self assured
 Practical
 Imaginative

Trait theory is representative of multi-personality theories. Trait theory is based

on certain assumptions, such as traits which are certainly stable in nature and a
limited number of traits are common to most of the people.
According to the Trait theorists, an individual’s personality make-up stems out of
the traits that he possesses, and the identification of traits is important. The trait
theories can be of two broad categories, viz., Simple trait theories and general
trait theories.

Simple Trait Theories

In simple trait theories, a limited number of traits are identified, and people are
categorized and classified on the basis of these traits.

General Trait Theories

In general trait theories, a large variety of traits are identified.

The Psychoanalytic Theory of Freud

Sigmund Freud, the father of psychology, became famous with his

psychoanalytic theory of personality. In fact, the theory is regarded as the
cornerstone of modern psychology. Sigmund based his theory on certain
assumptions which is as follows −

Unconscious needs or drives lie at the heart of human motivation and personality.

The socialization process that takes place within people in a social set up has a
huge impact on individual behavior. Freud explained much of how the psyche or
the mind operates, and proposed that, human psyche is composed of parts within
our awareness and beyond our awareness.

He said that all behavior within an individual cannot be explained, much lies in
the subconscious.

 Id − According to Freud’s psychoanalytic theory of personality, the

id operates based on the pleasure principle, which stresses on
immediate fulfillment of needs. The id is the personality component
made up of unconscious psychic energy which satisfies basic urges,
needs, and desires.
  Ego − Ego is that state of awareness which thinks of you as separate
from the other. It always thinks of the glories of the past and hopes
of the future and focuses on guiltiness. It always thinks of what was
and what could be.
 Super Ego − The superego provides guidelines for making
judgments. It is the aspect of personality that holds all our moral
standards and ideals that we acquire from both parents and society.
Neo-Freudian Theory

There were a group of psychologists who believed that social interaction and
resultant relationships formed the basis for the growth and development of
personality. Here, they disagreed with their contemporary, Freud, who believed
that personality was −

 Biological and rooted in genetics, and

 Was groomed as a result of early childhood experiences. This group
of researchers who laid emphasis on the process of socialization
came to be known as the Neo. To form a personality, social
relationships are very important.

Based on this, consumers are classified into three personality types −

 Complaint Personalities − They prefer love and affection and so

they move towards them and so they prefer known brands.
 Aggressive Personalities − They tend to move against others and
they show off their need for power, success etc which is quite
manipulative.
 Detached Personalities − They are not much aware of brands and
are more self reliant and independent.

Marketers also tend to use Neo-Freudian theories while segmenting markets and
positioning their products.
personality and understanding consumer diversity.

A greater understanding of the need to go beyond conventional notions of

diversity and take a wider variety of elements that affect customer behavior. Into
accounts that recently emerged are age, gender, sexual orientation,
socioeconomic level, and cultural background; these are a few examples of these
elements in businesses and marketers. This must now be negotiated as a market
becomes more complex and diversified, which has significant ramifications.

Understanding Diversity
It is vital to define "diversity" before we can address future research on diversity
issues in consumer psychology. Diversity is the term used to describe the
variations between people and groups, including socioeconomic level, gender,
age, race, ethnicity, and sexual orientation. Due to the possibility that people
from diverse origins have varied wants, values, and interests, these disparities
can substantially impact consumer behavior.

Diversity of Consumer Behaviour mainly studies the variety of nature of

Consumer, their characteristics, preferences and change. Consumers are diverse
in nature. They can be divided into main two types – Personal and Organizational
and both are different from each other based on their purpose and buying
preferences.

These differences influence consumers' preferences, values, and attitudes toward

products and services. For instance, a consumer's personality traits can affect their
buying decisions, as some individuals may be more impulsive or risk-taking than
others.
 UNIT – III

Environmental influence: definition of culture, characteristics of culture,

dynamism in culture, relevance of sub culture and cross culture on consumer
behaviour; Indian culture and sub culture; Marketing strategies and
problems related to cross culture. Social class – definition, determinants of
social class, objective approach, composite –variable indices, social class
mobility, applications of social class to consumption, family and life style,
significance, family life cycle stages; Family-buying influences, applications
of AIO studies.

Environmental influence: definition of culture, characteristics of culture,

dynamism in culture, relevance of sub culture and cross culture on consumer
behaviour; Indian culture and sub culture; Marketing strategies and
problems related to cross culture.

Culture plays a pivotal role in shaping consumers' attitudes and preferences. It

influences their likes, dislikes, and overall evaluation of products and brands.
Cultural values, social norms, and traditions often dictate what is considered
acceptable or desirable within a particular society.

Cultural factors comprise of set of values and ideologies of a particular

community or group of individuals. It is the culture of an individual which
decides the way he/she behaves.

In simpler words, culture is nothing but values of an individual. What an

individual learns from his parents and relatives as a child becomes his culture.

Example - In India, people still value joint family system and family ties. Children
in India are conditioned to stay with their parents till they get married as compared
to foreign countries where children are more independent and leave their parents
once they start earning a living for themselves.

Cultural factors have a significant effect on an individual’s buying decision.

Every individual has different sets of habits, beliefs and principles which he/she
develops from his family status and background. What they see from their
childhood becomes their culture.

How Does Culture Influence Consumer Behavior?

Culture exerts a profound influence on consumer behavior through various
mechanisms. Let’s explore some ways in which culture shapes consumers’
choices:

1. Perception and Interpretation

Culture shapes the way individuals perceive and interpret information. It
influences their cognitive processes, including attention, memory, and
comprehension. For example, cultural norms and values can affect how
consumers perceive advertisements, products, and pricing. Understanding these
cultural nuances helps marketers develop targeted and culturally sensitive
campaigns.

2. Attitudes and Preferences

Culture plays a pivotal role in shaping consumers’ attitudes and preferences. It
influences their likes, dislikes, and overall evaluation of products and brands.
Cultural values, social norms, and traditions often dictate what is considered
acceptable or desirable within a particular society.
Marketers who align their offerings with these cultural preferences are more
likely to resonate with their target audience.

3. Buying Behavior and Decision-Making

Culture significantly influences consumers’ buying behavior and decision-
making processes. Factors such as individualism versus collectivism, risk
aversion, and the importance of social validation vary across cultures and impact
consumer choices. Understanding these cultural differences helps marketers
tailor their marketing strategies to appeal to specific cultural segments effectively.

4. Consumer Identity and Self-Expression

Culture shapes individuals’ sense of identity and self-expression. Consumers
often seek products and brands that align with their cultural identity or allow them
to express certain values or affiliations.

By understanding the cultural significance attached to certain products, marketers

can create meaningful connections with their target consumers.

SUBCULTURE
Subculture is a group that shares certain beliefs, values, and customs and exists
within a larger society. A subculture can stem from a person’s ethnicity, religion,
geographic location, age, or gender. Older consumers—who represent a
subculture based on age—are a lucrative market segment because the American
population is aging faster than the birth rate and life expectancy has been rising.
Subcultures are based on sociocultural and demographic variables, such as
nationality, religion, geographic locality, ethnicity, age, and gender. When
marketers single out a subculture, they must often modify the product to better
meet the needs of the targeted consumers and also change the marketing message
to suit the subculture’s values and tastes. A society’s cultural profile includes two
elements: (1) The unique beliefs, values, and customs of specific subcultures;
and (2) the core cultural values and customs that are shared by most of the
population, regardless of specific subcultural memberships. Subcultural analysis
enables marketers to identify the sizeable and subcultural segments.
RELIGIOUS SUBCULTURES
The United States reportedly has more than 200 different organized religious
affiliations (or subcultures). Of this number, Protestant denominations, Roman
Catholicism, Islam, and Judaism are the principal organized religious faiths. The
members of all these religious groups at times are make purchase decisions that
are influenced by their religious identity. Commonly, consumer behavior is
directly affected by religion in terms of products that are symbolically and
ritualistically associated with the celebration of various religious holidays.
Targeting specific religious groups with specially designed marketing programs
can be profitable.

REGIONAL SUBCULTURES
The United States is a large country, one that includes a wide range of climatic
and geographic conditions. Given the country’s size and physical diversity, it is
only natural that many Americans have a sense of “regional identification” when
comparing and describing themselves to others (e.g., “he is a true Southerner”).
Anyone who has traveled across the United States has probably noted many
regional differences in consumption behavior, especially when it comes to food
and drink. For example, a “mug” of black coffee typifies the West, whereas a
“cup” of coffee with milk and sugar is preferred in the East. There also are
geographic differences in the consumption of staple foods, such as bread.
Specifically, in the South and Midwest, soft white bread is preferred, whereas
on the East and West coasts, firmer breads (rye, whole wheat, and French and
Italian breads) are favored. Regional differences also include brand preferences.
A national brand is a brand that is available in all fifty states, although the market
shares of most brands vary among geographic regions. While geographic
differences in sales and market share are common for many brands of consumer
packaged goods in the United States, brands in nations, many smaller nations do
not exhibit similar regional differences. study of Indian consumers found that
regional differences stemming from various geographic, topological, and cultural
factors—including values, motives, and lifestyle—were important determinants
of both consumption and nonconsumption behaviors. study of Indian consumers
found that regional differences stemming from various geographic, topological,
and cultural factors—including values, motives, and lifestyle—were important
determinants of both consumption and nonconsumption behaviors

AGE (GENERATIONAL) SUBCULTURE

According to the U.S. Census, there are 317 million Americans. Figure 12.8
shows the generational classification of the U.S. population and the proportion
of each generation. Each generation is a distinct subculture and market segment,
because its members have unique priorities and purchase patterns. The
consumption patterns and impact of technology on the following age (or
generational) subcultures: Generation Z, Generation Y, Generation X, Baby
Boomers, and older Americans.
Generation Z: Persons Born from 1997 to the Present
Generation Z (Homeland Generation, Digital Natives) is the cohort of people
born from 2000 to the present day. Members of Gen Z are highly “connected,”
having had lifelong exposure to and use of communication and media
technology like the Internet, instant messaging, text messaging, and mobile
phones.

Teens and Tweens

This generation consists of two markets: Teens are those aged 13 to 17 and
tweens are aged 8 to 12. Marketing to teens and tweens means targeting lucrative,
elusive, and fickle customers. Marketers must understand a variety of lifestyles
that morph into and out of each other and change quickly and unpredictably.
Teens and tweens are not alike. Teens are more independent in their behavior
and less reliant on their parents than tweens are for day-to-day decisions. Teens
are beginning to develop the characteristics and behaviors of adulthood, while
tweens still share many traits with their younger siblings. Families are more
important to tweens in terms of their social lives as well.
Generation Y: Born Between 1980 and 1996
Generation Y (Echo Boomers, Millennials) are people born between 1980 and
1996. However, some include people born in the late 1970s and late 1990s in
this cohort. Gen Y members grew up with technology and embraced it. They are
attracted to higher levels of stimulation and are bored easily. They are more
confident than other generations were at their age, because of growing up in
child-centric households, a youth-oriented society, and the American emphasis
on self-esteem. As consumers, they want faster product turnover, personally
relevant promotions, and interactive marketing platforms. Many want to design
their own products, build and manage their own networks, and rate products.
Millennials are the largest users of cell phone and text messaging.

Generation X: Born Between 1965 and 1979

Generation X (Xers) consists of about 50 million individuals born between 1965
and 1979. As consumers, they represent a market with a spending power in
excess of $1 trillion. They do not like labels, are cynical, and generally do not
want to be singled out and marketed to. Unlike their parents, the Baby Boomers,
they are in no rush to marry, start a family, or work excessive hours to earn high
salaries. For Generation X consumers, job satisfaction is typically more
important than salary.
Baby Boomers: Born Between 1946 and 1964
The term Baby Boomers refers to the age segment of the population that was
born between 1946 and 1964. These 78 million or so baby boomers represent
more than 40% of the
U.S. adult population, which makes them a much sought-after market segment.
In comparison, during the 19 years that followed the 19 years of the baby boom,
only 66 million Americans were born (many refer to the “baby bust” of the
1970s).
In addition to their generation’s size, baby boomers are marketers’ most desirable
target market because of several reasons:
1. They constitute about 50% of all those in professional and managerial
occupations and more than one-half of those have at least one college degree. 2.
They are a large and distinctive age category (the term “Baby Boomers” was
probably the first distinct and universally recognized name of an American
generation). 3. They frequently make similar purchase decisions that influence
entire categories of consumer goods.
Baby boomers enjoy buying for themselves, for their residences, and for others.
They are consumption oriented. As baby boomers age, the nature of the products
and services they need or desire changes.

Older Consumers
America is aging. A large proportion of the baby boomers have already turned
60, with plenty more to come in the next decade. It should also be kept in mind
that “later adulthood” (i.e., those who are 50 years of age or older) is the longest
adult life stage for most consumers (i.e., often 29 or more years in duration). This
is in contrast to “early adulthood” (i.e., those who are 18 to 34 years of age), a
stage lasting 16 years; and “middle adulthood” (i.e., those who are 35 to 49 years
of age), a stage lasting 14 years. Remember that people over the age of 50
constitute about one-third of the adult U.S. market.

GENDER SUBCULTURES
Gender plays an important role with respect to shopping motives. Female
shoppers tend to be more prone to such shopping motives as uniqueness and
assortment seeking, social interaction, and browsing. Women are more loyal to
local merchants than their male counterparts. This suggests that local merchants
could use such insights to create advertising messages that are gender specific.
It is also important to note that women generally control a substantial portion of
the a household’s expenditures and the family’s spending. Because of this,
women are frequently a household’s “chief purchasing officer” or “chief financial
officer.” Consumer Products and Gender Roles
Within every society, it is quite common to find products that are either
exclusively or strongly associated with the members of one sex. In the United
States, for example, shaving equipment, cigars, pants, ties, and work clothing
were historically male products; bracelets, hair spray, hair dryers, and sweet-
smelling colognes generally were considered feminine products. For most of
these products, the sex role link has either diminished or disappeared.

Depictions of Women in Media and Advertising

Many women feel that the media and advertising create an expectation of
beauty that most women can never achieve. Consequently, they want the
“definition” of beauty to change. Dove has responded to this concern in its
ongoing advertising campaign that has been challenging the “traditional
portrayal of beauty” and offering a realistic portrayal of women.
Working Women
Many marketers are interested in women who work outside of the home,
especially married working women. They recognize that married working
women are a large and growing market segment—one whose needs differ from
those of women who do not work outside the home (frequently self-labeled
“stay-at-home moms”). It is the size of the working woman market that makes it
so attractive: Nearly 60% of American women (16 years of age and older) are in
the labor force; more than half of all women with children under the age of one
are working; and more than three-quarters of these women are mothers with
children at home.
When the time spent on everything that a working woman has to accomplish in
a day is added together (e.g., work, child care, shopping, cooking), it constitutes
a very long day!\

Marketing strategies and problems related to cross culture:-

The term cross-cultural marketing refers to the process of creating and
implementing marketing strategies that are tailored to the needs and preferences
of consumers from a culture that is different from the marketer's own culture or
from the culture of its main customer base.

International marketing is a strategic decision that involves developing a

marketing blend strategy grounded on the characteristics of an implicit foreign
request. In simpler terms, it's how associations should design and convey their
dispatches if they want to sell their goods and services in a foreign request.
Cultural differences make this process more complicated and thus should be the
starting point of preparing a strategy. Cultural differences in marketing form the
fundamentals of the transitional marketing blend.

Cultural differences in marketing should admit primary attention when dealing

with goods or services internationally, as the artistic terrain changes from one
country to the other. This means that transnational companies must understand
the culture of a specific state before dealing with the products.

Here are some significant cross-cultural factors that affect consumer behavior and
marketing strategy:

Language

Languages are some of the major artistic differences in marketing that companies
ought to understand before they sell their products and services in a foreign
country. Preliminarily, grave miscalculations have passed during restatement,
which has led to unsuccessful campaigns. One of the most memorable disturbing
miscalculations in trans-national marketing happened when General Motors
campaigned for their buses by the brand name "Nova" which in South American
native languages translates to "It won’t go". These miscalculations do not help
capture market share. Therefore, companies need to pay attention to language and
restatements to avoid business failure.

Purchasing power

Pricing strategies are not only essential for profitability but also important in
marketing. It is common knowledge that some economies have an advanced
purchasing power than others. For instance, people in the United States have an
advanced purchasing power than those in Africa. This plays a significant part in
how products and services should be priced in a specific market. Thus, you have
to come up with a strategic marketing plan that will make people exercise their
high purchasing capability.

Consumption habits

Before selling your products, you need to determine whether individualities in a

specific country make individualistic or collaborative buying opinions. This will
help you to formulate a marketing approach that appeals to the personality and
buying patterns of the whole society. You must also understand the cerebral and
social factors impacting the buying opinions.
Demographics

As in domestic marketing, age and other demographics significantly contribute

to differences in marketing strategies to opt. For instance, in developing
countries, literacy rates among senior citizens are veritably low. Therefore, you
may decide to target your marketing communication not directly at this
demographic group, especially when indulging in digital marketing. The
dominant demographic groups in a country must be understood thoroughly before
formulating marketing strategies. This will help your company communicate with
and appeal to the majority of the customer base.

Taste and preferences

Eating habits are further important artistic differences in marketing that trans-
national companies need to understand. For a food dealing company, it is
essential to understand the eating habits of a particular region before curating a
menu. For instance, McDonald’s and other fast-food companies had to start
offering vegetarian products in India to cater to the huge proportion of the
vegetarian population.

Religion

Religious beliefs are important artistic differences in marketing that should be

considered when dealing with foreign requests. They impact how a particular
society perceives colorful products and services. Organizations have to
understand the impact of religion and its part in society. For illustration, in
Muslim countries, marketing temporal women’s outfits might be off as the
religion in these countries requires women to dress in a modest way which is
largely regulated. Some marketing dispatches have been in disagreement with
religious groupings since their dispatches were offensive towards a particular
religion. Religion is a critical aspect that companies need to understand before
they can start selling their products on the transnational stage.

Extreme artistic differences in marketing are prohibited. Still, companies should

make sure that they completely understand all the artistic factors before they can
formulate and roll out their marketing strategies. Expansive exploration would
help a transitional company to understand what's good and bad in different
countries and regions. Most of the companies that have been good at the
transitional stage have done so by creating a product or a service that will be
accepted in a particular region.

Social class – definition, determinants of social class, objective approach,

composite –variable indices, social class mobility, applications of social class
to consumption, family and life style, significance, family life cycle stages;
Family-buying influences, applications of AIO studies.

Social Class:-

social class, also called class, a group of people within a society who possess the
same socioeconomic status. Besides being important in social theory, the concept
of class as a collection of individuals sharing similar economic circumstances has
been widely used in censuses and in studies of social mobility.

Social class plays a significant role in consumer behavior as it influences

individuals' preferences, aspirations, purchasing decisions, and brand loyalty. It
provides insights into consumer motivations, values, and consumption patterns,
helping businesses tailor their marketing strategies effectively.

determinants of social class

Social class indicators include income, wealth, occupation, education, lifestyle
choices, and social networks. These factors provide insights into an individual's
social class position and associated consumer behavior.

Following are the main criteria (attributes) used in the determination of social
class:

(1) Wealth and Income:

Possession of substantial amounts of wealth is the main characteristic
distinguishing the upper class from other class groups in society. Persons having
more wealth and income generally have higher social position and respect in
society. Wealth and income (money), though necessary for upper-class position,
yet one’s class position is not directly proportional to his income.

A prostitute has less social status than a professor though her income is far greater
than the professor. In spite of all its weaknesses, wealth and income are an
important determinant of social class, partly because of the way of life it permits
or enforces (a social class is basically a way of life), and partly because it suggests
about one’s family life and way of life.

Upper-class children have a better chance, and for their grandchildren, a secure
upper-class status is practically assured. Wealth and income, over a period of
time, usually gains upper-class status. In his analysis of class divisions, Karl Marx
argued that social class is based entirely on wealth.

(2) Occupation:
Occupation is an exceedingly important aspect of social class and as such it is
another determinant of class status. It is a well-known fact that some kinds of
work are more honourable than others, e.g., doctors, engineers, administrators,
professors and lawyers hold a higher position than a car mechanic or manual
worker.
The high-prestige occupations generally receive the higher incomes, yet there are
many exceptions. Occupation is also one of the best clues to one’s way of life,
and therefore to one’s social class membership. It affects many other facets of life
(values, beliefs, marital relations) other than determining the social class.

(3) Education:
There is a close reciprocal relationship between social class and education. To get
a higher education one needs money plus motivation. Upper-class children
already have money for the finest schools and colleges. They also have family
tradition and social encouragement. One’s amount and kind of education affects
the class rank he will secure. Thus, education is one of the main levers of a man’s
social class.

(4) Prestige:
It refers to the respect and admiration with which an occupation is regarded by
society. Prestige is independent of the particular person who occupies a job.
Sociologists have tried to assign prestige rankings to various occupations. Besides
wealth, occupation and education, there are certain other criteria which help a
person to attain higher social status in the society.

These are family background, kinship relations, location of residence etc., but
education, occupation and expanded income are the most fairly visible clues of
social class. With these are associated most of the other behaviour characteristics
which make one ‘belong’. Most of the social scientists have used these three
criteria in dividing people into social classes for research purposes.

social class mobility applications of social class to consumption,,

Social class refers to a hierarchical division of society based on economic, social,

and cultural factors. It encompasses various aspects, such as income, wealth,
occupation, education, and lifestyle. The social class provides a framework for
understanding individuals’ positions within society and their associated behaviors
and preferences.

Class Structure and Hierarchy

Social class is typically stratified into different levels, forming a hierarchical
structure. At the top, we have the upper class, composed of individuals with
significant wealth, prestigious occupations, and extensive educational
backgrounds.

Below them, we find the middle class, which is further divided into upper-middle
and lower-middle classes based on income, occupation, and lifestyle. Finally, the
working class comprises individuals engaged in manual labor and lower-paying
jobs.

Social Mobility and Class Changes

Social mobility refers to the movement of individuals or groups between different
social classes. It can occur upward (upward mobility) or downward (downward
mobility) in response to factors such as education, employment opportunities, or
economic circumstances. While social mobility exists, it is not equally accessible
to everyone, and certain barriers can impede individuals from changing their
social class.

Social Class and Consumer Behavior

Influence on Purchase Decisions
Social class significantly influences consumer purchasing decisions. Individuals
from different social classes have distinct tastes, preferences, and buying
behaviors. For example, consumers belonging to the upper class may seek luxury
products that showcase their status, while those from the working class may
prioritize affordability and functionality.

Lifestyle Choices and Consumption Patterns

Social class also affects individuals’ lifestyle choices and consumption patterns.
Different social classes have unique values, interests, and activities, which
translate into their consumption behaviors. For instance, the upper class may
engage in high-end leisure activities and luxury travel, while the working class
might focus more on practical and cost-effective options.

Brand Preferences and Loyalty

Consumer behavior is heavily influenced by social class when it comes to brand
preferences and loyalty. Individuals from specific social classes often align
themselves with certain brands that resonate with their values, aspirations, and
self-perception. Brand loyalty is fostered when brands successfully cater to the
needs and aspirations of a particular social class.

Dimensions of Social Class

Income and Wealth
Income and wealth are crucial dimensions of social class. Income refers to the
money individuals earn regularly, while wealth represents their accumulated
assets and net worth. These factors directly impact an individual’s access to
resources, quality of life, and consumption patterns.
Occupation and Education
Occupation and education also play significant roles in determining social class.
Prestigious occupations, such as doctors, lawyers, or corporate executives, are
often associated with higher social class positions. Education, particularly higher
education, can provide individuals with better employment prospects and
opportunities for social mobility.

Lifestyle and Social Networks

Lifestyle and social networks are additional dimensions that contribute to social
class. Lifestyle encompasses an individual’s values, interests, activities, and
consumption behaviors. Social networks refer to the people with whom
individuals associate, including family, friends, colleagues, and acquaintances.
These dimensions shape an individual’s social identity and influence their
consumer behavior.

family and life style, significance, family life cycle stages;

Family lifestyle refers to the way that families live and their attitude, knowledge,
and habits.

The concept of the family life cycle has gained popularity in the last few
decades due to its relevance in the consumer decision-making process. For
example, as a person grows older, his buying choices depend less on his own
needs and more on his family’s collectively.

Marketers by understanding the stage of a person in the family life cycle can
anticipate their needs and can shape marketing strategies according to them.
Furthermore, as stated by William (2018), the family life cycle model helps to
profile the consumer, using which the businesses can determine which set of
audiences they should appeal to.

Formally the family life cycle can be defined as the series of stages typically
through which most of the family progresses, with different characteristics of
the stages (Fingerman, Smith and Berg, 2011). These characteristics are related
to their demographics such as:

 marital status

 size of the family

 age of the family members

 employment status of the head of the family

 income level

 disposable income.

Family life cycle stages

The family life cycle can be conceptualized as the progression that involves
various stages. Different authors have segregated it into different stages. For
this article, the most comprehensive one has been chosen which is as follows.
 Figure 1:
Family life cycle stages (Evans, Jamal and Foxall, 2006)

Stage 1: Bachelor stage

At this stage of the life cycle, people are young and their earnings are relatively
low since most of the bachelors are just beginning their careers. They have few
financial responsibilities and thus tend to have relatively high discretionary
incomes. People in this stage are characterized as being more interested in
appearance. Therefore they tend to spend more on fashionable items such as
clothing and electronic gadgets. Impulsive and premium buying is a common
characteristic of this group. This group also tends to spend more on food,
entertainment and vacations.

In addition to this in some cases, they establish their residence away from their
family and sometimes require the purchase of furniture and household
appliances. However, a major underlying fact is that all these purchases tend
to be non-systematic and minimal since possessions restrict their freedom of
movement. Overall it can be concluded that there is a presence of individuality
at this stage of the family cycle (Omazic, 2016).
Stage 2: Newly married couple

With marriage comes responsibilities, therefore the requirement for resources

changes. This group can be considered to be in a better financial position due
to the absence of children. One of the major characteristics of this stage is that
people in this stage tend to have the highest purchase rate, particularly for
consumer durables. Their purchases tend to include refrigerators, television,
stereos, sensible and durable furniture, and vacations. Furthermore, they may
also start investing to build reserves for their future. Thus the marketers of
such goods and financial services tend to target them (Wells and Gubar, 2007).

Stage 3: Full nest 1 (Young married, with child)

When the first child is born, the full nest 1 stage begins. The arrival of a child
brings major changes in a family’s consumption pattern. At this stage, money
is majorly directed towards buying baby furniture, toys, medicines, vitamins,
baby food, and baby clothing. Furthermore, the increased family size may
necessitate more space which requires the family to move into a bigger home.
New parents explore baby products extensively before purchasing, therefore
advertising helps them. In addition to this, in many cases, the mother may need
to quit her job, which can cause a significant reduction in family income. This
leads to a sense of dissatisfaction in the couple with their financial position
and decreased disposable income (Raj and Chandrasekar, 2013).

Stage 4: Full nest 2 (older, married, with children)

In this stage of the family life cycle, the family’s financial position tends to
start improving, possibly due to advancement in careers. With this improved
financial positioning, families still tend to remain new product-oriented but are
now less influenced by advertisements since they have more buying
experience. In this stage, the families tend to buy more food items, children’s
clothing, bicycles for the children, sports equipment for them, and so on.
Furthermore, at this stage, the children start going to school so expenses in
terms of their school fees, books, and stationary increase. The families also
start saving for the future education of their children (Barnhill, 2011).

Stage 5: Full nest 3 (older, married with dependent children)

In this stage, the family income continues to grow and their financial position
becomes more stable. This type of family has a high expenditure on consumer
durables, mainly because there is a need to replace older items. However, they
are more resistant to advertisements since they have become more experienced
buyers now and are harder to entice. This group tends to buy items such as
tasteful furniture, automobiles, non-necessary appliances, magazines, dental
services, and luxury items (Plagnol and Easterlin, 2008).

Stage 6: Empty nest (older, married, with no dependent children)

At this stage of the family cycle, children are no longer living with their
parents. Thus with no burden of child-related expenses, the family’s financial
position stabilizes and their savings tend to accumulate. The couple is now free
to purpose their wants and desires and thus hobbies become an important
source of satisfaction for them. More is now spent on luxury, self-improvement
items, medical care, and health products. Furthermore, expenses are done on
homeownership and home improvement (William, 2018).

Stage 7: Solitary survivor

This stage of the family life cycle involves retired people living alone after the
death of their partner. Thus, their life tends to become lonely and their income
reduces significantly due to retirement. This tends to bring drastic changes in
their consumption pattern and living style. Healthcare services become an
important factor in their life.
applications of AIO studies.

The evaluation of the AIO is most useful in planning the marketing strategy, as it
can help identify the group with a lifestyle towards which a product will be
destined. You can also develop a new point of view of an already existing market,
creating new strategies, as well as positioning the product in the market.

The measurement of the AIO is used by sellers as a research tool to determine the
influences on consumer behavior and adjust them to consumer markets, being a
very useful element within digital marketing. Researchers ask respondents to
indicate the degree to which they agree or disagree with a number of statements
about their activities, interests, and opinions. The responses received are always
demographically linked.

Activities, interests and opinions are a series of measurable psychographic

variables that involve the interests and beliefs of consumers.

Activities, interests, and opinions—or AIOs—are the characteristics of an

individual used by researchers to create their psychographic profile. When
combined with quantifiable characteristics such as age, income or education
level, an AIO profile provides a great understanding of what an individual likes
and dislikes as a consumer. Product-specific activities, interests, and opinions,
rather than general AIOs, are typically used in the development of new products
to predict consumer response to those products.

UNIT – IV

Consumer decision making: four views of consumer decision making; types

of consumer purchasing decision; Basic models of decision making Engle-
Kollatt-Blackwell model, Howard– Sheth model, Nicosia model; e-business
and its effect on consumer decision making.
Consumer decision making: four views of consumer decision making;

Consumer Decision Making refers to the process under which consumers go

through in deciding what to purchase, including problem recognition,
information searching, evaluation of alternatives, making the decision and post-
purchase evaluation.

Consumers decisions are the results of their life-style, which in turn is influenced
by the marketing activities, culture, sub-culture, values, social status,
demographics, family type, emotions, personality traits, motives, perception, and
learning. Information search and then processing it, links these influences to
consumers.

Consumer decisions result from perceived problems (as for example, being
thirsty) and opportunities (like, being in a market place). Consumer problems
arise in specific situations and may trigger one or more levels of the consumer
decision-making process.

Consumer Decision Making refers to the process under which consumers go

through in deciding what to purchase, including problem recognition, information
searching, evaluation of alternatives, making the decision and post-purchase
evaluation.

Reasons behind Consumer Decisions:

In the present world, a consumer has a lot of options while taking any decision.
But basically the consumer has five decision dimensions.

These are as follows:

1. What to buy?
2. How much to buy?

3. Where to buy?

4. When to buy?

5. How to buy?

Models or 4 Views of Consumer Decision Making

The changing market environment provides the impetus for a careful study of
consumer decision making or buyer behaviour. The term ‘model’ generally refers
to a general ‘view’ or perspective as to when and why individuals behave as they
do. In buying and consuming a variety of goods and services, consumers are
pursuing a sets of motives.
Though need satisfaction is the underlying motive source of all consumption
activity, an understanding of needs and processes that influence the formation and
satisfaction of such needs will help the marketer to devise suitable marketing
programmes.
Here we will examine the various models of consumers in terms of the
following four views:
1. An Economical View or Model:
Traditionally, economics has been considered to be the mother discipline of
marketing. Economists believe that consumers derive some utility (a feeling of
satisfaction) from consuming a particular product and so their consumption
activity will be directed towards pursuing maximisation of utility.
That’s why if given a certain amount of purchasing power, and a set of needs and
tastes, a consumer will allocate his expenditure over different products at given
prices rationally so as to maximise utility. Economists also postulate that the
utility from the consumption of a certain product diminishes as the quantity of the
product consumed increases (based on the Principle of Diminishing Marginal
Utility).
According to this model it is also possible to make a number of predictions about
the behaviour of buyers in terms of the price effect, income effect and substitution
effect. While these predictions are useful, questions are being raised on the
assumption of rationality in the behaviour of buyers.
The criticism by consumer researchers is based on a number of reasons. They
argue that in reality, the consumer may not be- (a) aware of the various product
alternatives or (b) in a position to evaluate all the advantages and disadvantages
related to the various product alternatives so as to rank them accordingly. Thus
in the absence of all the possible sufficient, and accurate information, it will not
be possible for the consumer to make the so called rational or perfect decision.
It has been criticised that the economic view is too idealistic and simplistic. It is
being argued that consumers in reality behave very differently and do not
maximise their decisions in terms of economic considerations such as price-
quantity relationships, marginal utility or indifference curves. Very often the
consumer will settle down for a ‘satisfactory’ decision and not necessarily the
best one though it will be a ‘good enough’ decision.

2. The Passive View or Model:

Unlike the rational economic view of man, the passive view portrays the
consumer as someone who is basically carried away by the promotional and self-
oriented efforts of the marketer. As per the passive view, consumers are perceived
to be impulsive who take irrational purchase decisions and are influenced by the
promotional offers of the marketers.
The passive model is criticized as it fails to take a pragmatic view of the
consumers. It is argued that in a buying situation, the consumer will be involved
in a decision making process wherein he seeks information on the product,
evaluates all the alternative brands and then makes a selection based on the brand
which provides him maximum satisfaction. At times the consumer’s purchase
decision is also based on emotions or moods. So it is wrong to assume that the
consumer will be passive while taking purchase decisions.
3. A Cognitive View or Model:
As a consumer, man is usually involved in thinking and problem solving. He is
constantly involved in an active search for goods and services which will not only
satisfy his needs but enrich his life also. As per the cognitive view consumers are
involved in an information seeking and processing method.
They try to gather all the necessary information from various sources, such as a
trusted friend, or an expert and so on. Once he feels that he has sufficient
information, so as to make a ‘satisfactory choice decision’, he will cease to gather
more information and will ultimately decide on his purchase intention.
This model of man as a thinker, views consumer as an information processor.
And all the focus is on the processes by which consumers seek and evaluate
information about the concerned brands and the respective retail outlets.
The advertisement on Panasonic can work as a cognitive appeal to customers
seeking information for purchasing high end television. The ad provides
information on the technology benefits in terms of V-Real Technology, Advanced
Smart Sound Speaker System and HDAVI control offered by the Panasonic brand
of TV Series.
Thus according to the cognitive model of consumer, the above mentioned ad will
make the consumer think on the benefits of Panasonic. The consumer will finally
take the purchase decision based on his satisfaction of the information received.
In other words the problem solving view or model of consumer talks of a person
who in the absence of the total information or knowledge of all the available
product alternatives, would actively seek ‘satisfactory information and thereby
attempt to make satisfactory decisions accordingly.
4. An Impulsive or Emotional View of Consumer:
Another aspect of consumer decision making is that they can be emotional or
impulsive while taking purchase decisions. Very often, we, as consumers are
involved in purchases made on impulse or on a whim.
For such emotional buying, the consumer may not undergo the usual process of
carefully searching, evaluating and then deciding on the brand or outlet to
purchase from Rather he is more likely to purchase the product (brand) based on
a whim or an impulse. Such consumer decisions are said to be ’emotionally
driven’.
For emotional or impulse purchases, in the absence of a search for pre-purchase
information, it is the mood and feelings of the consumer which will decide on the
emotional purchase decision. Emotional decisions could be rational to some
extent also. That is, the consumer may take an emotional decision to purchase a
product but he will be rational while deciding or choosing one brand over another.
This type of behaviour is displayed while making purchases of apparel, gifts,
selecting holiday destinations or toys (for children). In all the above situations,
the final decision may be made on the basis of emotion.
Advertisers are projecting, their products or services in a way to appeal to the
emotions of the particular target market. Such emotional appeals can be seen in
the advertisements of Johnson and Johnson baby products, Huggies diaper, Wipro
Baby Soft, Fisher Price toys and so on.
Related to consumers emotions and feeling is the ‘mood’ of the person. Mood
may be defined as a feeling state or state of the mind. The basic difference
between an emotion and a mood is that the former is a response to a particular
environment, while mood is an unfocused, pre-existing state-already present,
when the consumer gets motivated or experiences a positive feeling about an
advertisement, or the retail outlet or brand or a product.
Moods play an important role in consumer decision making. Very often it is the
mood of the consumer which influences his decisions related to when to shop,
where to shop, in whose company to shop etc. It has been observed that even
within the shopping environment, the interior decor, the attitude of the sales
persons, the type of services provided etc. could affect the shoppers mood and
influence the consumer’s decision on how long to shop and on how often to go to
that shop.
Realising this now retailers and dealers are creating a positive store image. This
is likely to have a positive impact and influence on the consumer’s mood and
decision to purchase.

Basic models of decision making Engle-Kollatt-Blackwell model, Howard–

Sheth model, Nicosia model;

The Engel Kollat Blackwell Model is a consumer behavior model of the cognitive
process that helps to predict what customers are going to buy.

In 1968 Engel, Blackwell and Kollat developed a model of the consumer buying
decision process in five steps: Problem/need recognition, information search,
evaluation of alternatives to meet the need, purchase decision and post-purchase
behavior.

The Engel Kollat Blackwell Model of Consumer Behavior or consists of four

distinct stages;

1. Problem recognition: the consumer will recognise a difference between his

or her actual state and what the ideal state should be. This may occur on account
of external stimuli.

2. Information search: Initially the information available with the consumer

may be consistent to other beliefs and attitudes held by him or her. While being
involved in an information seeking or search stage, the consumer will try to gather
more information from various sources. The individual gets exposure of the
stimuli which may catch his or her attention, be received and stored or retained
in memory. This method of information is selective in nature and the consumer
will accept the information, which is conclusive to what is perceived by them.

3. Alternative evaluation: Now the individual will evaluate the alternate brands.
The methods used for evaluating the various products will depend on the
consumer’s underlying goals, motives and personality. The consumer also has
certain predetermined beliefs about the various brands in terms of the
characteristics associated with the different brands.

4. Choice: the consumer’s choice will depend on his or her intention and attitude.
The choice will depend on normative compliance and anticipated circumstances.
Normative compliance relates to the extent to which the consumer is influenced
by other people like friends, family members etc.
5. Outcome: The outcome may either be positive or negative.

Howard– Sheth model,

John Howard and Jagadish Sheth put forward the Howard Sheth model of
consumer behavior in 1969, in their publication entitled, ‘The Theory of buyer
Behaviour’.

The Howard Sheth Model is a sophisticated integration of the various social,

psychological, and marketing influences on consumer choice into a coherent
sequence of information processing. It aims not only to explain consumer
behavior in terms of cognitive functioning but to provide an empirically testable
depiction of such behavior and its outcomes (Howard 1977).

The logic of the Howard Sheth model of consumer behavior summarizes like this.
There are inputs in the form of Stimuli. There are outputs beginning with attention
to a given stimulus and ending with purchase. In between the inputs and the
outputs, there are variables affecting perception and learning. These variables are
termed ‘hypothetical’ since they cannot be directly measured at the time of
occurrence.

The Howard Sheth model of consumer behavior posits that the buyer's journey is
a highly rational and methodical decision-making process. In this model,
customers put on a “problem-solving” hat every step of the way — with different
variables influencing the course of the journey.

The Howard Sheth Model of Consumer Behavior was put forward by John
Howard and Jagadish Sheth in the year 1969.

The model is an integrated form of factors like social, psychological, cultural

influences on consumer choices into a coherent sequence. It focuses on
explaining consumer behavior in terms of cognitive functioning and observed
testable depiction of such behavior and its outcomes.

The idea of the Howard Sheth model of consumer behavior goes like: The inputs
are in the form of Stimuli. The outputs are reaction with attention to a given
stimulus and ending with purchase. In between the inputs and the outputs, there
are variables affecting perception and learning. These variables are termed
‘hypothetical’ since they cannot be directly measured at the time of occurrence.

The model defines decision making in three levels:

  Extensive problem solving: This is the stage in which consumer
doesn’t have any preferences about the products and seeks
information about all the brand options available in the market.
 Limited problem solving: This is the stage where the consumers
know what they want to purchase and also have partial knowledge
about the market.
 Habitual response behavior: In this stage, the consumer has a
definite choice about the brands and products and he decides by
looking in at the characteristics of each product in the market.
The variables in the Howard Sheth Model are:

 Inputs: The input variables consist of three distinct types of

information sources in the buyer’s environment. The marketer in the
form of product or brand information furnishes physical brand
characteristics (significative stimuli) and verbal or visual product
characteristics (symbolic stimuli).
These are delivered to the consumer in the form of impersonal sources like mass
media communications and advertising. The companies have no control over
these. The third type is provided by the consumer’s social environment (family,
reference group, and social class).

This social source is personal and again the marketer has no control over this
source. All three types of stimuli provide inputs concerning the product class or
specific brands to the specific consumer.

 Perpetual and learning constructs: The model’s central part deals

with the psychological variables involved when the consumer is in
the process of making a decision. Some of the influencing factors
 are perceptual in nature and are linked with how the consumer
receives and understands the information from the various aspects
of the model.
 Outputs: The outputs are basically the reactions of the consumers
depending on how they react to the perceptual and learning
variables.
 Exogenous variables: These are the external factors affecting
consumer buying behavior and are directly not a part of the model.
However, sometimes these factors are of great importance and
include factors like consumer personality traits, religion, and time
pressure.

Nicosia model;

Nicosia's model consists of four 'fields', beginning with the communication of

information to affect the consumer's attitude (influenced by firm attributes and
consumer attributes, notably consumer predispositions), followed by a search and
evaluation process, a decision, and outcomes in terms of behaviour, consumption.

Nicosia's Model of Consumer Decision Process

This model elaborates on customers' decision-making phases before purchasing
products or services. It is written in the style of a comprehensive computer flow
chart. The model can be reduced for clarity by grouping its many aspects into
fields and subfields. The model's many components are linked via direct and
feedback loops. As a result, the marketing organization impacts the target
customers. Customers, in turn, influence the marketer's subsequent decisions
through the repercussions of the marketer's actions. This procedure continues.
The model's key fields and subfields are as follows −

Marketing Communications Affecting Consumer Attitude

Marketing communications encompass mass media and personal
communications, products, pricing, and distribution. Consumer attitudes and
perceptions are influenced by exposure to these traits. These impacts on
customers are determined by their traits (such as values, personality, and
cumulative experiences). After absorbing the marketer's inputs, the customer
constructs his attitudes as inputs for the following field.

Consumer's Search and Evaluation

Consumer research and evaluation occur before the consumer is prompted to buy
the product. He obtains further information and compares the qualities of rival
goods. The evaluation criteria change due to prior consumer experiences and
marketer inputs in the form of a marketing mix.
Purchase Action
This is Nicosia model field 3—the buyer shops for the product after being
prompted to buy the brand. The selection of an honest merchant is also made
here.

Consumption Experience and Feedback:

After acquiring a product, the customers' experience with its consumption might
affect them in various ways. The negative experience may prevent him from
making a future purchase and reduce his attitude and assessments of the goods.
The favorable encounter may encourage him to remain loyal to the product. In
any event, the sector gives valuable input to marketers. The marketer may fine-
tune the marketing inputs for the following cycle using this feedback.

At first view, Nicosia's model appears straightforward and apparent.

Nevertheless, its usefulness rests in integrating the body of knowledge in the
domain of consumer behavior that existed before its formation. It also elucidates
how non-action factors in the environment associated with consumers cause
actions at the consumer's end. The model's flowcharting method significantly
systematizes the model's presentation. Nevertheless, it also limits the variety of
options available to customers. These restrictions may even be unreasonable.
This type of circumstance limits the model's breadth and adaptability.

e-business and its effect on consumer decision making.

E-Business (electronic business) is any process that a business organization

conducts over a computer-mediated network. Business organizations include any
for-profit, governmental, or nonprofit entity. Their processes include production-
, customer-, and internal- or management-focused business processes.
The term "e-business" was first used in the 1990s following the launch of the first
web browser. The 1990s were characterized by the emergence of the internet,
which led to the emergence of e-commerce platforms such as eBay and Amazon.
These two companies are excellent examples of e-businesses.

Online Reviews

According to a study by Marketing Land, about 90% of people read online

reviews before buying a product. The online reviews, whether positive or
negative, are the most source of finding out about the products of the company.

E-commerce is providing the various benefits to the consumers, as they can get
the products and services of their own choices through the social interaction on
the internet. The companies are focused on to increase the satisfaction, in order
to provide them with the increased level of satisfactions, thus, technology
acceptance model by the companies are impacting in the mind of the consumer.
The companies like Amazon are using the web technology for the social
interactions so that customers through the use of the Internet can continue to
increase the sales. The customers, in the countries ‘go online’ for the e-commerce.
In order to focus on the e-commerce impact on the consumer’s shopping
experience, the study did the analysis of the business model of Amazon, as
Amazon through the distribution of products is focused on the purchase intentions
of the consumer.

Impact of Internet on Consumer Behavior

The impacts on shopper behavior are regularly made between outside and inside
components. Outside components are come from the natural conditions; inner
variables are ordinarily from the consumer’s intellect. There are numerous
variables may impact consumer’s behaviors. Agreeing to Warner, the outside
impacts might separate into five segments: Socioeconomics, socio-economics,
innovation and open approach; culture; sub-culture; reference bunches; and
promoting. The inner impacts are an assortment of mental forms, which
incorporate states of mind, learning, recognition, inspiration, self image, and
semiotics (Malcolm). In expansion to these, (N., 1983)also proposed that the
customers have two sorts of thought processes while shopping, which is
utilitarian and non-functional. The utilitarian thought processes are generally
about the time, shopping place and consumer’s needs, which may well be like
one-stop shopping to save time, the nature of shopping put such as free parking
place, lower fetched of items and accessible to select from broadly run of items.
The non-functional thought processes are more related to culture or social values,
such as the brand title of the store. The conventional shopping is essentially about
the client to buy their needs. This behavior will be impacted by the seller’s
publicizing and promotion which draws in clients goes there and buys products,
a short time later a portion of modern items will be taken home and be utilized.

Internet Shopping

Web shopping and conventional shopping are sharing numerous similitude’s, at

the same time, it still exists a few contrasts between them, such as the Web
shopping may give comfort and intuitively services, and the conventional
shopping might allow clients more comfortable shopping environment and great
quality of items (Lee K. and Chung N., 2000). Both viewpoints of shopping
centers are attempting to progress their services by learning commutatively from
each other, such as conventional shopping centers give more parking spaces,
more counters, and closer to private region in arranges to progress services in
comfort; Web shopping centers receive virtual reality and 3D methods to move
forward the introduction of items.

Within the following areas, the study would give the nature of web shopping at,
to begin with, at that point the E-commerce web location will be demonstrated to
comprehend the substance of web shopping, after that, online security, protection,
and belief will be talked about. All of these common outlines and talks
approximately the web shopping will give a foundation to the think about and
offer assistance to building the establishment of scholarly inquires about.

Ecommerce gives consumers access to information, the ability to shop on

different devices and the option to share their experiences with others, which has
completely altered their expectations and the way they shop.

How E-Commerce Is Affecting Consumer Buying Behaviour: The Latest Trends

And Statistics

The shopping behaviour of consumers has seen a drastic change over the past
couple of years. The pandemic brought a shift in the e-commerce consumer
behaviour, a shift that was well on its way already and affected consumer buying
behaviour as well as e-buying behaviour as a whole.

People from all around the world realized the importance and convenience of
online shopping and e-buying, changing consumer buying behaviour and
making e-commerce take off drastically during the pandemic. As everyone
struggled to come to terms with the lockdowns and restrictions, e-buying
behaviour became a go-to for everyone.

Covid-19 left people with little choice but to shop online, and soon, whatever
hesitance they might have had before seemed to fade away as e-commerce
changed consumer behaviour faster than anyone anticipated.

The pandemic acted as a catalyst to bring the change in buyer behaviour more
quickly as people had no choice but to shop online during the lockdowns all
across the world. E-commerce businesses of all types soared as people became
more comfortable ordering everything online instead of going to a brick-and-
mortar store.

As an e-commerce business, it is crucial that you know and understand all the
latest consumer buying trends and the effects they can have on your business.
Let’s have a more detailed look into some of the latest statistics regarding e-
commerce consumer behaviour.