Unit 1 - Introduction

1
CONSUMER BEHAVIOUR
INTRODUCTION
CHAPTER 1 - INTRODUCTION
Introduction, concept and need for studying consumer behaviour – a

managerial and consumer perspective - applications of consumer behaviour
knowledge, consumer behaviour and marketing management – market
segmentation & consumer behaviour - current trends in consumer
behaviour.
Introduction and concept of consumer
Who is a Consumer ?
Is there a difference between consumer and customer?

Is there a difference between consumer
and customer?
A customer is the individual/business/organization which buys the offering from

the seller via a financial transaction or monetary exchange.
In simple terms – Customer is the buyer of the offering.
A consumer is an individual who is the end-user of the product/service offered by a

business.
In simple terms – Consumer is the end-user who consumes the offering.
What is Consumer Behaviour?
 Consumer Behaviour is a branch which deals with the various

stages a consumer goes through before purchasing products or
services for his end use.
Example
 Vani and Rani went to buy dresses for themselves.

 The store manager showed them the best dresses
available with him.
 Vani immediately purchased two dresses but Rani
returned home empty handed.
 The dresses were little too expensive for Rani
 In this case, Vani and Rani had similar requirements
but there was a huge difference in their taste, mind
set and ability to spend.
Definition of Consumer Behaviour
Definition of Consumer Behaviour According to American Marketing

Association , consumer behaviour can be defined as "the dynamic interaction of
affect and cognition, behaviour, and environmental events by which human
beings conduct the exchange aspects of their lives.”
Meaning of Consumer Behaviour
 Consumer behaviour is the study of individuals, groups, or

organizations and the processes they use to select, secure, use,
and dispose of products, services, experiences, or ideas to satisfy
needs and the impacts that these processes have on the
consumer and society.
 The study of consumer behaviour explains as to:
Who buys product or services?

How do they buy products or services?
Where and when do they buy them ?
How often do they buy them ?
When do they buy them?
Why do they buy them ?
How often do they use them?
Difference between individual
consumer buyer and
organizational buyer
Applications to CB knowledge
Understanding of consumer behavior is essential for the long run success of any
marketing program .Some of marketing activities were consumer behavior
knowledge is important are:
1. Market opportunity analysis

2. Target market selection
3. Marketing mix determination
Market opportunity analysis
It involves analyzing the market to identify unsatisfied needs and wants.- The
analysis begins with a study of general market trends such as consumers lifestyle
and income levels which suggests unsatisfied needs and wants.

Marketing mix determination
Market opportunity analysis results in the selection of target market i.e. distinct
groupings of consumers who have unique wants and needs.- E.g.: Colgate-
Palmolive company segment consumers according to their lifestyle pattern and
personalities to identify a unique group of consumers for a certain type of
deodorant soap.

Market opportunity analysis
Marketing Mix variables are :

Product
Price
Place
Promotion
Need for understanding
consumer behaviour
1. Shorter product life cycles
2. Evolving consumer preferences
3. Environmental concerns
4. Changing lifestyles
5. Faster technology adoptation

Importance of Consumer Behaviour
1. Importance of consumer behaviour:

2. production policies
3. Price policies
4. Decision regarding channels of distribution
5. Decision regarding sales promotion
6. Exploiting marketing opportunities
7. Consumer do not always act or react
predictably
8. Highly diversified consumer preferences
9. Rapid introduction of new products
Factors influencing
Consumer Behaviour
I n d i v i d u a l Stimuli Environmental stimuli
cognitive thinking processes culture
consumer personal Social class

characteristics
Influence groups
Situational variable influences

Applications of consumer behaviour
knowledge- consumer behaviour and
marketing management
1. for making better marketing campaigns
2. To sustain in the market
3. To understand the everchanging marketing

environment
4. To know your customer well and to provide a

better product
Market segmentation and consumer
Behaviour
What is market segmentation?
On what basis do you segment the

market?
Market Segmentation Strategies
Consumer Behaviour Patterns
Customer behaviour patterns

Buying behaviour patterns are not synonymous with buying habits.
Habits are developed as tendencies towards an action and they
become spontaneous over time, while patterns show a predictable
mental design. Each customer has his unique buying habits, while
buying behaviour patterns are collective and offer marketers a
unique characterization. Customer behaviour patterns can be
grouped into:
1. Place of purchase
2. Items purchased
3. Time and frequency of purchase
4. Method of purchase
Marketing management and
consumer Behaviour
Consumer behaviour refers to the purchasing behaviour of

final customer or individual or household who buys goods & services
for personal use. Customer behaviour is very important as it supports
product positioning development of effective marketing strategy
enhancement of long-term customer relationship.
Current trends in Consumer
Behaviour
1. Convergence of Digital and Physical Shopping
2. A New Definition of Beauty
3. The Role of “Influence” Will Become Even

Greater
4. Demand for Eco-Friendly, Low Plastic Options
5. Time Saving Becomes a Premium Service

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1

Introduction, concept and need for studying consumer behaviour – a

Is there a difference between consumer and customer?

A customer is the individual/business/organization which buys the offering from

A consumer is an individual who is the end-user of the product/service offered by a

 Consumer Behaviour is a branch which deals with the various

 Vani and Rani went to buy dresses for themselves.

Definition of Consumer Behaviour According to American Marketing

 Consumer behaviour is the study of individuals, groups, or

Who buys product or services?

1. Market opportunity analysis

Marketing Mix variables are :

1. Shorter product life cycles

2. Evolving consumer preferences

5. Faster technology adoptation

1. Importance of consumer behaviour:

I n d i v i d u a l Stimuli Environmental stimuli

cognitive thinking processes culture

consumer personal Social class

Situational variable influences

1. for making better marketing campaigns

2. To sustain in the market

3. To understand the everchanging marketing

4. To know your customer well and to provide a

What is market segmentation?

On what basis do you segment the

Customer behaviour patterns

Consumer behaviour refers to the purchasing behaviour of

1. Convergence of Digital and Physical Shopping

2. A New Definition of Beauty

3. The Role of “Influence” Will Become Even

4. Demand for Eco-Friendly, Low Plastic Options

5. Time Saving Becomes a Premium Service

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