COURSE: B.

Com
SEMESTER: VITH
SUBJECT: PRINCIPLES AND PRACTICES OF MARKETING
UNIT II
Meaning and Definition
Market segmentation consists of sectioning the target market into smaller groups that share similar characteristics, such as age, income,
personality traits, behaviour, interests, needs or location.
These segments can be used to optimize products, marketing, advertising and sales efforts products and services. In this way they can introduce a
more personalized message with the certainty that it will be received successfully.
Market Segmentation is the strategy of dividing markets in order to Conquer them.” Alan. A. Robert
“Market Segmentation consist of taking the total heterogeneous market for a product and dividing into several sub-markets or segments
each of which tends to be homogenous in all signification aspects.” Prof. William Stanton
NEEDS OF MARKET SEGMENTATION Market Segmentation helps the marketers to bring together individuals with similar choices and interests
on a common platform. Marketers have found market segmentation to be a most effective technique from the following reasons:
1. Effective utilization of marketing resources
2. Better understanding of customer needs
3. Better understanding of customer needs
4. Accurate measurement of goals and performance
MARKET SEGMENTATION OBJECTIVES There are different market segmentation objectives. Here we tell you what each of them are:
 Product: Creating successful products is one of the main objectives of organizations and one of the reasons why they conduct market
research.
 Price: Another objective of market segmentation is to establish the right price for your products. Identifying which is the public that will be
willing to pay for it.
 Promotion: It helps you to target the members of each segment and select them in different categories so that you can direct your strategies
appropriately.
 Place: The ultimate goal of segmentation is to decide how you offer a product to each group of consumers and make it pleasant to them.
IMPORTANCE OF MARKET DISADVANTAGES OF MARKET SEGMENTATION STEPS TO IMPLEMENT A MARKET
SEGMENTATION SEGMENTATION STRATEGY
1. Understand Potential Consumers 1. Market Segmentation is more costly.  Define the Target market
2. A more effective Marketing 2. It is a Time Taking Process  Identify Expectation of Target Audience
Programme 3. The firm must maintain increased buffer  Create Sub-group
3. Understand Competition stock for normal demand and increased  Review the needs of the Target Audience
4. Better allocation of Resources safety stock for unpredicted demand.  Name your Market Segment
5. Maximum Customer Satisfaction 4. It increases the managerial cost.  Marketing Strategies
6. Improved Profitability  Review the Behaviour
7. Benefit of Specialisation  Size of the Target Market
CONCEPT OF MARKET SEGMENTATION
1. UNDIFFERENTIATED MARKETING CONCEPT:- When marketers/producers produce fully standardized products and their close
substitutes are not available, marketers do not divide the market into various segments.
2. DIFFERENTIATED MARKETING CONCEPT:- In differential marketing strategies company prepares different marketing-mix strategies
for the different product because consumer’s demand is diversified.
3. CONCENTRATED MARKETING APPROACH:- In this approach marketer follows one product one segment principle.
4. MASS MARKETING CONCEPT:- It is advocated that an economic system has limited resources and purchasing power.
5. TARGET MARKETING CONCEPT:- It is the modern marketing concept. It helps the marketer to clearly identify the markets. This
approach is also known as the Rifle Approach.
6. SEGENTED MARKET CONCEPT:- It is just opposite to mass market concept. This concept is applicable under affluent conditions, where
the majority behaviour of consumers.
7. GLOBAL MARKET CONCEPT:- Global market concept is developed as a modern marketing concept
TYPES OF MARKET SEGMENTATION
GEOGRAPHIC SEGMENTATION Geographic segmentation consists of creating different groups of customers based on geographic boundaries.
The needs and interests of potential customers vary according to their geographic location, climate and region, and understanding this allows you
to determine where to sell and advertise a brand, as well as where to expand a business.
DEMOGRAPHIC SEGMENTATION Demographic segmentation consists of dividing the market through different variables such as age, gender,
nationality, education level, family size, occupation, income, etc.
PSYCHOGRAPHIC SEGMENTATION Psychographic segmentation consists of grouping the target audience based on their behaviours, lifestyle,
attitudes and interests.
BEHAVIOURAL SEGMENTATION Behavioural segmentation focuses on specific reactions, i.e. the consumer behaviours, patterns and the way
customers go through their decision-making and purchasing processes.
PRODUCT SEGMENTATION It is done on the basis of product characteristics that are capable of satisfying certain needs of customers.
TARGET MARKETING Target Marketing involves breaking a market into segments and then concentrating our marketing efforts on one or a few
key segments consisting of the customers whose needs and desires most closely match our product or service offering.
MARKET TARGETING Market targeting is a process of selecting the target market from the entire market. Target market consists of
group/groups of buyers to whom the company wants to satisfy or for whom the product is manufactured, price is set, promotion efforts are made
and distribution network is prepared.
It involves basically two action:- 1. Evaluating market segment 2. Selecting market segment
MARKET POSITIONING Market positioning refers to the process of establishing the image or identity of a brand or product so that consumers
perceive it in a certain way.
TOPIC:- MARKETING SEGMENTATION
LONG QUESTION- 6 What are the characteristics and benefits of market segmentation? Explain the bases of
market segmentation. (2018)
SHORT QUESTION
Q. 6 a) Meaning of Market Segmentation
Ans. Market segmentation consists of sectioning the target market into smaller groups that share similar characteristics, such as
age, income, personality traits, behaviour, interests, needs or location.
Q. 6 b) Define market segmentation according to the Philip Kotler.
Ans. Market Segmentation is sub dividing of a market into distinct and increasing homogeneous sub-group of consumers where
any group can conceivably be selected as a target market to be met with a distinct marketing-mix.
Q. 6 c) Write the Five Characteristics of market segmentation.
Ans. 1. Be measurable 2. Be Substantial 3. Be accessible 4. Be Unique 5. Be durable
Q. 6 d) Write the four need of market segmentation.
1. Effective utilization of marketing resources
2. Better understanding of customer needs
3. Better understanding of customer needs
4. Accurate measurement of goals and performance
Q. 6 e) Write the four importance of market segmentation.
Ans. 1. Understand Potential Consumers
2. A more effective Marketing Programme
3. Understand Competition
4. Better allocation of Resources
Q. 6 f) Write the four disadvantages of market segmentation.
1. Market Segmentation is more costly.
2. It is a Time Taking Process
3. The firm must maintain increased buffer stock for normal demand and increased safety stock for unpredicted demand.
4. It increases the managerial cost.
Q. 6 g) Write the name of all five bases of Market Segmentation.
Ans. 1. Demographic segmentation
2. Geographic segmentation
3. Psychographic segmentation
4. Behavioural segmentation
5. Socio Economic segmentation
Q. 6 h) Define the Product Segmentation
Ans. Product segmentation is done on the basis of product characteristics that are capital satisfying certain needs of customers.
Q. 6 i) Define the volume Segmentation.
Ans. In the case of volume segmentation marketer segments market on the basis of volume of purchase like bulk purchaser, regular
purchaser, medium purchaser, one time purchaser.
Q. 6j) Define the Demographic segmentation.
Ans. Marketer divides the market on the bases of demographic factors like age, sex, educational standard, income level, family size,
marital status etc.
Q. 6 k) Define Socio-Economic Segmentation.
Ans. Socio-Economic segmentation of markets is directly concerned with analysis of buyer’s ability to buy.
Q. 6 l) Define Benefit segmentation.
Ans. Benefit segmentation marketer classifies buyers according to the benefits they get from the product.
Q. 6 m) Define the Geographic Segmentation..
Ans. When a producer or marketer divides the target market into different geographical units; like City Size, Area of Density, States,
Regions, Nations etc.
Q. 6 n) Define the Psychographic segmentation.
Ans. In this segmentation a marketer or producer divide the market into sub-group on the basis of psychological characteristics like
personality, perceptions, attitudes, opinions etc.
Q.6 o) Define Undifferentiated Marketing.
Ans. When marketers/producers produce fully standardized products and their close substitutes are not available, marketers do
not divide the market into various segments.

TOPIC : CONSUMER BEHAVIOUR

 Consumer
Any individual who purchases goods and services from the market for his/her end-use is called a consumer. In simpler words a
consumer is one who consumes goods and services available in the market.
Consumer Interest
Every customer shows inclination towards particular products and services. Consumer interest is nothing but willingness of
consumers to purchase products and services as per their taste, need and of course pocket.
Meaning and Definition
The study of consumer behaviour is the study of how individuals make decisions to spent their available resources (time, money,
efforts) on consumption related items. It includes the study of ‘what are the products they buy? Why they buy them/’ How they
buy’, When they buy them’, ‘where they buy’ and how often they use it.
“ This whole behaviour of a person while making purchases may be termed as consumer behaviour.” - Goethe
“It is the process whereby individuals decide whether, what, when, where, how and from whom purchase goods and
services.” C.G. Walter and G.W. Paul
NATURE OF CONSUMER BEHAVIOUR SCOPE OF CONSUMER IMPORTANCE OF CONSUMER BEHAVIOUR
BEHAVIOUR
1. Consumer behaviour is the part of 1. Consumer behaviour and 1. Modern Marketing Philosophy: It concern
human behaviour. This cannot be marketing management. with modern marketing philosophy identify
separated. consumer’s needs and satisfy them more
2. Consumer behaviour and Non-
effectively competitors.
2. Learning the consumer is difficult Profit and Social Marketing.
and complex as it involves the study of 2. Goal Achievement: Thus, consumer behaviour
3. Consumer behaviour and
human beings. Each individuals behaves helps in achieving marketing goals.
Government Decision Making.
differently when he is placed at
3. Development of Marketing Programme: The
different situation. 4. Consumer Behaviour and
programme can be more relevant if it is based on
Demarketing.
3. A consumer’s behavior is always the study of consumer behaviour.
changing in nature. The taste and 5. Consumer Behaviour and
4. Improving Marketing Programme
preference people vary. Consumer Education.
Gradually: Based on current market trends, the
4. Consumer behaviour is influenced by marketer can make necessary changes in
psychological, social and physical marketing programme to adjust with market.
factor.
5. Useful for Middlemen: The study of consumer
5. Consumer Behaviour is a continuous behaviour helps the middlemen and salesmen to
process as it involves the process starts perform their tasks effectively in order to meet
before the buying and continuing after consumer’s needs and wants successfully.
purchasing.
6. Predicting Market Trend: Consumer
behaviour can also help in forecasting the future
trends
7. Consumer Differentiation: Consumer
behaviour study provides details about consumer
differentiations.
8. Dynamic Nature of Market: It helps the
marketer to be dynamic, alert, and active in order
to satisfy consumers much better and sooner than
competitors.
FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR

Economic Determinants Personal Determinants

Psychological DeterminantsSociological Determinants
Personal Income Motivation Family Age and Stage in the Life
Family Income Perception Reference Groups cycle
Income expectations in Future Learning Opinion Leader Occupation and Economic
Consumer Credit Attitudes Social Class and Caste Circumstance
Standard of Living Personality Standard of Living Lifestyle
Personality and Self-concept

TOPIC: CONSUMER BEAVIOUR

LONG QUESTION- 7 What do you understand by consumer behaviour? Discuss the nature. What are the importance of studying the
consumer behaviour? Explain the major determinants of consumer behaviour.
SHORT QUESTION
Q. 7 a) Meaning of consumer.
Ans. Any individual who purchases goods and services from the market for his/her end-use is called a consumer. In simpler words a consumer is one who consumes
goods and services available in the market..
Q. 7 b) Meaning of consumer behaviour
Ans. The study of consumer behaviour is the study of how individuals make decisions to spent their available resources (time, money, efforts) on consumption
related items.
Q. 7 c) Define consumer behaviour according to Philip Kotler.
Ans. Consumer Behaviour is the study of how individuals, groups and organisational select, buy, use and dispose of goods, service, ideas and experiences to satisfy
their needs and wants.
Q. 7 d). Write any four nature of consumer behaviour.
Ans. 1. Consumer behaviour is the part of human behaviour. This cannot be separated.
2. Learning the consumer is difficult and complex as it involves the study of human beings. Each individuals behaves differently when he is placed at different
situation.
3. A consumer’s behavior is always changing in nature. The taste and preference people vary.
4. Consumer behaviour is influenced by psychological, social and physical factor..
Q. 7. e). Write the four scope of consumer behaviour.
Ans. 1. A sound understanding of consumer behaviour is essential to the long run success of any marketing program.
2. A clear understanding of the consumer behaviour and decision making process will assist these efforts.
3. Many agencies at all levels of government are involved with regulating business practices for the purpose of protecting consumer’s or users, of these service.
4. Consumer also stand to benefit directly from orderly investigation of their own behaviour. This can occur on an individual basis or as part of more formal
educational programs.
Q. 7 f). Write the seven importance of consumer behaviour.
Ans. 1. Modern Marketing Philosophy: It concern with modern marketing philosophy identify consumer’s needs and satisfy them more effectively competitors.
2. Goal Achievement: Thus, consumer behaviour helps in achieving marketing goals.
3. Development of Marketing Programme: The programme can be more relevant if it is based on the study of consumer behaviour.
4. Improving Marketing Programme Gradually: Based on current market trends, the marketer can make necessary changes in marketing programme to adjust
with market.
5. Useful for Middlemen: The study of consumer behaviour helps the middlemen and salesmen to perform their tasks effectively in order to meet consumer’s needs
and wants successfully.
6. Predicting Market Trend: Consumer behaviour can also help in forecasting the future trends
7. Consumer Differentiation: Consumer behaviour study provides details about consumer differentiations.
Q. 7 g) Meaning of consumer.
Ans. Any individual who purchases goods and services from the market for his/her end-use is called a consumer. In simpler words a consumer is one who consumes
goods and services available in the market..
Q. 7 h) Meaning of consumer behaviour
Ans. The study of consumer behaviour is the study of how individuals make decisions to spent their available resources (time, money, efforts) on consumption
related items.
Q. 7 i) Define consumer behaviour according to Philip Kotler.
Ans. Consumer Behaviour is the study of how individuals, groups and organisational select, buy, use and dispose of goods, service, ideas and experiences to satisfy
their needs and wants.
Q. 7 j) Write the name of four determinates of consumer behaviour
Ans. 1. Economic Factor
2. Personal Factor
3. Social Factor
4. Psychological Factor
Q. 7 k) Write the economical determinates.
Ans. 1. Personal Income:- Consumer Behaviour changes according to continuous rise in income.
2. Family Income:- In joint family the buyer behaviour is influenced by the family income.
3. Income expectation in future:- Future expectation of consumer determines consumer behaviour.
4. Consumer Credit:- A consumer behaviour depends upon the availability of credit.
5. Standard of living:- Standard of living has impact on consumer behaviour.
Ques. 7 l). Write the social determinates.
Ans. 1. Reference groups Under social factors reference groups have a great potential of influencing consumer behaviour.
2. Family The behaviour of a consumer is not only influenced by their motivations and personalities but also their families and family members who can two or
more people living together either because of blood relationship or marriage.
Role and status People who belong to different organizations, groups or club members, families play roles and have a status to maintain.
Ques. 7 m). Write the personal determinates.
Ans. 1. Age and life cycle stage Age of a consumer and his life cycle are two most important sub factors under personal factors.
2. Occupation Occupation of a consumer is affects the goods and services a consumer buys.
3. Financial or economic situations Everything can be bought and sold with the help of money.
4. Life style People originating from different cultures, sub cultures, occupations and even social class have different styles of living.
5. Self concept and personality Every individual is different and have different and distinct personalities. Their distinct personalities and distinct physiology effects
their buying decisions.
Ques. 7 n). Write the psychological determinates.
Ans. 1. Motivation Motivation is activating the internal needs and requirements of the consumer. It can also be described as goals and needs of the
consumers. Motivation arouses and directs the consumers towards certain goals.
2. Perception Perception is sensing the world and the situations around and then taking a decision accordingly. Every individual look as the world and the
situations differently.
3. Learning and experience Learning is the research of products and services before the consumer takes the decision of buying a product. Learning and self-
educating these days is done online and also in groups.
4. Attitude and beliefs Attitude is a consumer’s favorable and unfavorable emotional condition or emotional feeling, also its tendency of reaction to certain actions
and behaviours.
TOPIC : BUYING PROCESS / STAGES
CONSUMER BUYING BEHAVIOUR
Buying Behaviour is the decision processes and acts of people involved in buying and using products.
NEED TO UNDERSTAND:
 why consumers make the purchases that they make?
 what factors influence consumer purchases?
 the changing factors in our society.
CONSUMER PROCESS DECISION PROCESS
Problem Recognition
OR
To notice wants/desires

Information search

Evaluation of Alternatives

Purchase Decision

Post-Purchase Behaviour

1. Problem Recognition(awareness of need)—Problem recognition or need recognition is a first step in decision-making process
in consumer buying process. The customer feels that some product is desired to satisfy the emerging need.
2.Information search—When need recognise, the consumer starts to learn about various products. Knowledge of products with
their characteristics and knowledge of market where to purchase the goods is gained.
3.Evaluation of Alternatives—Once the information searching process is complete, the evolution process starts. The evaluation
based on cost, warranty, brand image, subjective characteristics, quality of goods and service.
4. Purchase decision—In purchase decision the buyer choose the product or brand to be bought. Product availability may influence
which brand is purchased.
5. Post-Purchase Evaluation—Post Purchase behaviour is the reaction of consumer, it gives an idea of his likes and dislikes,
preference and attitudes and satisfaction level towards the product.
CONSUMER BEHAVIOUR MODELS
ECONOMIC THEORIES PSYCHOLOGICAL PSYCHO-ANALYTICAL SOCIO-CULTURAL
/MODELS THEORIES/MODELS THEORIES/MODELS THEORIES /MODELS

According to this model, the This model is based on the This model is developed by This theories was invented
buyer is rational animal and assumption that consumers Sigmund Freud. As per him by Thorstein Veblen in
his buying decisions are learn from past experience Personality has three basic 1899 and also known as
finalized on the basis of and their action on future dimensions the ‘id’, ‘ego’ and veblenian Model. According
utility of the product. occasions are modified in the ‘super ego’. The to this model the man is
accordance with past consumer behaviour is a primarily social animal and
Under this group there are
experience. These models are function of the interaction of his wants and behaviour are
two important theories:
also called as ‘Learning these three systems. largely influenced by group
1. Marginal utility Theories’. of which he is a member.
theory
2. Income and saving
theory
TOPIC: BUYING PROCESS/ STAGES
LONG QUESTION- 8 Define consumer behaviour. Discuss the nature and process of consumer behaviour.
SHORT QUESTION
Q. 8 a) Meaning of consumer.
Ans. Any individual who purchases goods and services from the market for his/her end-use is called a consumer. In simpler words
a consumer is one who consumes goods and services available in the market..
Q. 8 b) Meaning of consumer behaviour
Ans. The study of consumer behaviour is the study of how individuals make decisions to spent their available resources (time,
money, efforts) on consumption related items.
Q. 8 c) Define consumer behaviour according to Philip Kotler.
Ans. Consumer Behaviour is the study of how individuals, groups and organisational select, buy, use and dispose of goods, service,
ideas and experiences to satisfy their needs and wants.
Q. 8 d). Write any four nature of consumer behaviour.
Ans. 1. Consumer behaviour is the part of human behaviour. This cannot be separated.
2. Learning the consumer is difficult and complex as it involves the study of human beings. Each individuals behaves differently
when he is placed at different situation.
3. A consumer’s behavior is always changing in nature. The taste and preference people vary.
4. Consumer behaviour is influenced by psychological, social and physical factor..

Q. 8 e) Write the name of 5 step of consumer buying decision.

Ans. 1. Problem Recognition
.2. Information Search
3. Evaluation of Alternatives
4. Purchase Decision
5. Post Purchase Behaviour
Q. 8 f). Define Problem Recognition
Ans. Problem recognition or need recognition is a first step in decision-making process in consumer buying process. The customer
feels that some product is desired to satisfy the emerging need.
Q. 8 g). Define Information Search.
Ans. When need recognise, the consumer starts to learn about various products. Knowledge of products with their characteristics
and knowledge of market where to purchase the goods is gained.
Q. 8 h) Define Evaluation of Alternatives
Ans. Once the information searching process is complete, the evolution process starts. The evaluation based on cost, warranty,
brand image, subjective characteristics, quality of goods and service.
.Q. 8 i) Define Purchase decision
Ans. In purchase decision the buyer choose the product or brand to be bought. Product availability may influence which brand is
purchased.
.Q.8 j) Define Post-Purchase Evaluation
Ans. Post Purchase behaviour is the reaction of consumer, it gives an idea of his likes and dislikes, preference and attitudes and
satisfaction level towards the product.
HANDOUTS WITH POINTERS
 Market segmentation is the process of grouping buyers into different categories having common desire or needs.
 Market segmentation is a method of dividing a large market into smaller groupings of consumers.
 The concept of market segmentation was coined by Wendell R. Smith.
 Market segmentation helps the marketers to bring together individuals with similar choice and interests on common
platform.
 Market segmentation appeared with a new concept of marketing of 1940.
 A market that consists of individuals with similar product needs is homogeneous.
NEEDS OF MARKET SEGMENTATION
 Market segmentation the provides opportunity to the organisation to increase their customer reach and increase
profitability.
 Market segmentation helps the marketers to understand the needs of the target audience and adopt specific marketing
plans.
 Businesses can use segmentation to help on pricing decisions that maximizes sales while keeping customers happy.
 Paying attention to seasonal demand changes can help businesses time special deals to boost sales.
STEPS IN MARKET SEGMENTATION
 Segmentation refers to the process of creating small segments within a broad market to select the right target market for
various brands.
 The first and foremost step is to identify the target market.
 Segmentation helps the organisation decide on the marketing strategies and promotional schemes.
 Once the target market is decided, it is essential to find out the needs of the target audience.
 The product must meet the expectations of the individuals.
 The organisation should ensure their target market is well defined
 It is essential for the marketers to review the needs and preferences of individuals belonging to each segment and sub-
segment.
 Give an appropriate name to each segment.
 Devise relevant strategies to promote brands amongst each segment.
 It is essential to know the target market size.
 Review the behaviour of the target audience frequently
 In Undifferentiated Marketing when marketers/producers produce fully standardized products and their close
substitutes are not available, marketers do not divide the market into various segments.
 In Concentrated Marketing approach marketer follows one product one segment principle.
 Soci-Economic Marketing advocated that an economic system has limited resources and purchasing power.
 Targeting Marketing approach is also known as the Rifle Approach.
 Segented market concept is just opposite to mass market concept.
 Global market concept is developed as a modern marketing concept .
 The three steps process within market segmentation includes Segmentation, Targeting and positiong.
 Product positiong is about the perception of the product from the view of the competitors.
 Demography is related to human population.
 Segmentation of international markets on the basis of monetary regulation is an example of Political and legal factors
 Customer market division is done on basis of compulsive ambitions and outgoing customers classified as psychographic
segmentation.
 Target marketing represents a technique of market integration.
 Product differentiation is a product oriented strategy.
 Pricing is a primary form of competition.
 Market targeting is process of selecting the target market from the entire market .
 Socio-economic segmentation is directly concerned with analysis of buyers ability to buy.
 Behavioural Segmentation is based on the consumer response to his requirements.
 Benefits Segmentation marketer classifies buyers according to the benefits they get from the product.
 Volume segmentation marketer segments market on the basis of volume of purchase.
 Differentiated Marketing Concept is also called a several segment approach.
 Mass marketing concept is advocated that an economic system has limited resources and purchasing power.
 Segmented Market Concept marketer takes much attention on the majority behaviour of consumers.
 Liberalization policies bound to marketers to adopt Global Marketing Segmentation concept.
CONSUMER BEAVIOUR
 A customer is the most important visitor in our premises.
 The modern concept of Marketing considers the customer as the king.
 Satisfaction and happiness of customer is the mission of a business.
 The study of consumer behaviour is the study of how individual make decisions to spend their available resources on
consumption related items.
  Consumer Behaviour may be defined as the decisions process and physical activity individuals engage in when evaluating
acquiring using or disposing of goods and services.
 Consumer are known as the God of market.
 A satisfied customer brings profit consistently.
 Consumer behaviour is the part of human behaviour.
 Human behaviour decides what to buy, when to Buy.
 Consumer behaviour is dynamic in nature.
 Consumer behaviour is influenced by Psychological, Social and physical factors.
 A consumer may be loyal with a product due to its status values.
 The study of consumer behaviour is crucial for marketers.
 Consumers plays a vital role in growth of economy.
 Consumer behaviour focuses on how individuals make decisions to spend their available resources on consumption
related items.
 The term Demarketing refers to all such efforts to encourage consumers to reduce their consumption of a particular
product or service.
 Consumer also stands to benefit directly from orderly investigation of their own behaviour.
 The study of consumer behaviour is important in framing production policies, price policies, decisions regarding channels
of distribution and decision regarding promotional activities.
 The marketer who takes decision regarding brand, packaging, discount, gifts, etc. on the basis of consumer behaviour.
 It concerns with modern marketing philosophy identify consumer’s needs and satisfy consumers needs and satisfy them
more effectively than competitors.
 New product is developed in respect of needs and wants of the target market.
 The study of consumer behaviour is the base for developing a new product successfully.
 Based on consumers’ expectations, more competitive advantages can be offered.
 Consumer Behaviour study supplies the details about differentiations.
 Knowledge of consumer differentiations is a key for fit marketing offers with different groups of buyers.
 Consumer behaviour can also aid in projecting the future market trends.
 Meaningful marketing programme is instrumental in realizing marketing goals.
DETERMINANTES FACTORS
 Economic determinants are directly related with income sources of consumer.
 Any change in income will have change in consumer buying decision.
 The relationship between, size of family requirements, and aggregate income of family determines the buying behaviour
of the family members.
 Easy availability of consumer credit makes the consumer to spend more freely.
 Motivation refers to the drives, urges wishes or desire which initiate the sequence of events known as behaviour.
 Perception is the process by which the mind receives, organizes and interprets information.
 The personal factors of perceptions are his self- concept, need, span of apprehension, mental set and past experiences.
 Learning is the process of acquiring knowledge.
 Consumer behaviour is a process of learning because it is modified according to the consumer’s past experience.
 Learning has deep impact on consumer buying process.
 Attitudes refers to a pre-disposition to behave in a particular way when presented with a given stimulus and the attitude
towards people, place, products and things can be positive or negative.
 Personality consists of a person’s popularity, friendliness or charismatic style.
 Personality determines the consumer behaviour in selection of the brand and products purchased.
 Reference Group is a social and professional group that influences the individuals opinions, beliefs and aspirations.
 Opinion leader or influential play a vital role in influencing the buying behaviour of their followers.
 Marketer very often tries to catch hold of opinion leaders through aids and other means of communication.
 Social class and caste often influences consumer behaviour.
 Social Class has an impact on spending capacity, habits, quality and quantity of products.
 Personal Determinants include the buyer’s age and stage in the life cycle, occupation, lifestyle personality and self-
concept.
 The buying behaviour of consumers is determined strongly by their age-group and life cycle stage.
BUYING PROCESS / STAGES
 Perception is a psychological factor influencing consumer behaviour.
 Consumer behaviour is Micro in nature.
 Consumption Behaviour is Macro in nature.
 Emotional motives are internal motives.
 The person of the family who senses the need for the purchases, is known as Initiator.
 Consumer is a person who buys a product.
 Soci-Cultural Theories was invented by Thorstein Veblen.
 Soci-Cultural Theories was invented in 1899.
 Soci-Cultural Theories is also known as Veblenian.
  Ego is an equilibrating device that leads to socially acceptable behaviour
 The super ego presents the moral issues involved .
 Psycho-analytical model is developed by Sigmund Freud.
 The consumer behaviour is a function of the interaction of three systems.
 Id refers to the free mechanism that tends to strong motives.
 Learning Targets pace through trial and error in Stimulus response situations.
 Cues are the stimuli coming from marketing and social environment of the buyer information suggestions.
 A drive is a strong internal stimulus that impels an action.
 Response is the final stage which is needed to fulfill the drive or a need which was acting as a strong stimulus.
 A drives motivates a person for action to satisfy the need.
 Psychological Theories or Models based on the assumption that, consumers learn from past experience and their actions
on future occasions are modified in accordance with past experience.
 According to Economic Theory the buyer is rational animal and his buying decisions are finalized on the basis of utility
of the product.
 Psychological factors play an important role in understanding how consumers actually make their buying decisions.
ONE LINEAR QUESTIONS
1. What is a common goal of market segmentation?
Answer: To identify distinct groups within a market
2. What does 'target market' mean in marketing terms?
Answer: Specific group of consumers at whom a company aims its products
3. Which of the following best describes the term "market segmentation"?
Answer: Dividing a market into distinct groups
4. Which term refers to dividing a market into smaller segments based on demographics, psychographics, or behavior?
Answer: Segmentation
5. What does "positioning" in marketing refer to?
Answer: Creating an image or identity for a product in consumers' minds
6. In which phase do marketers typically analyze competitors' strengths and weaknesses?
Answer: Planning phase
.7. Anthropological factors that influences marketing belongs to
Answer: Social Forces
. 8. What are the psychological factor influencing consumer behaviour?
Answer: Motivation, Perception, Learning, Attitudes, Personality
.9. The major social classes and their dominant characteristics and buying behaviour pattern are given by:
Answer: Philip Kotler
10. A person who buys a product:
Answer: Buyer
11. Consumer behaviour covers the study of the activities of
Answer: Final Users
12. In modern marketing, on the basis of social class, the consumers may be categorized into:
Answer: Six Classes
13. The person who the family who senses the need for the purchase, is known is:
Answer: Initiator
14. Emotional motives are:
Answer:- Internal motives
15. ‘’Nothing is more difficult and therefore more precious, than to be able to decide.”
Answer: Napoleon
16. Perception is a part of:
Answer: Psychological Factors
17. Consumer behaviour is:
Answer: Micro in Nature
18. Consumption behaviour is
Answer: Macro in Nature
19. A market that consists of individuals with similar product needs is:
Answer: Homogeneous customers
20. Segmentation can be made on the basis of:
Answer: Geographic, Demographic, Psychological, Socio-Economic, Behaviourial, volume and Product
21. Market segmentation is the process of :
Answer: Sub-Dividing market into homogeneous customers
22. Market Segmentation is the process of dividing:
Answer: Homogenous Sub Section
23. When the Company follows one product one segment principles is:
Answer: Concentrated Marketing
24. Market segmentation appeared with a new concept of marketing in:
Answer: 1940
25. Segmentation is based on Income-group for:
Answer: Luxuries Products
26. Demographic is related to:
Answer: Human Population
27. Target Marketing represents a technique of:
Answer: Market integration
28. Product differentiation is a:
Answer. Product-oriented strategy
29. Geographic segmentation of the market consists of:
Answer: Religion, Climate, City Size
30. In effective target market, marketers should focus on:
Answer: Market Segmentation, Market Targeting,
31. Segmentation on the basis of values and attitudes and behavioral pattern is an examples of:
Answer: Cultural Factors
32. Targeting Affluent customers with luxurious goods is an example of
Answer: Income Segmentation
33. Segmentation of international markets on the basis of common languages, religious and customs is an example of:
Answer: Cultural factor
34. Segmentation of international markets on the basis of monetary regulation is an example of:
Answer: Income Segmentation
35. Customers market divisions is done on basis of compulsive ambitious and outgoing customers classified as:
Answer: Psychographic Segmentation
36. The three step process within market segmentation includes:
Answer: Segmentation, Targeting and Positiong
37. Concentrated Marketing is based around:
Answer: Focusing marketing efforts on one segment
38. Product Positioning is about:
Answer: The perception of the product from the view of the competitors
39. Mass marketing is about:
Answer: Developing products for deferent segments
40. Rifle Approach is based on
Answer Separate Marketing Strategies with specific targets
.41. When consumers are highly involved in their purchase and spend a lot of time researching
Answer Complex buying behavior
.42. When consumers are involved in an expensive purchase but don't see much difference between brands
Answer: Dissonance-reducing buying behavior
.43 When consumers buy the same thing repeatedly without much thought
Answer: Habitual buying behavior
.45. When consumers buy to try out new brands or styles
Answer: Variety-seeking behavior