PROGRAM NAME - M.B.A.

COURSE NAME - Basics of Marketing

UNIT NO. – IV
UNIT NAME – Consumer Behavior

PRESENTED BY- Dr. Yogita Gupta.

Topics to be covered.
• Meaning & importance of consumer behavior,
• Comparison between Organizational Buying behavior and consumer
buying behavior
• Buying roles,
 Meaning & importance of consumer behavior
• Consumer behavior is the process whereby individuals decide what, when, where, how
and from whom to purchase goods and services.--- Walters and Paul.
• Consumer behaviour as “The dynamic interaction of cognition, behaviour and
environmental events by which human beings conduct the exchange aspect of their
lives. --- American Marketing Association (AMA)
Consumer behaviour can be defined as “activities people undertake when obtaining,
consuming, and disposing of products and services” is provided and detailed.
• Obtaining “activities leading up to and including the purchase or receipt of a product”.
• Consuming “how, where, when, and under what circumstances consumers use
products”.
• Disposing “how consumers get rid of products and packaging”.
 Importance of Consumer Behaviour

Design
Improve
Consumer Retention of Relevant Predicting Innovate New Stay Relevant
Competition Customer
Differentiation Consumers Marketing Market Trend Products in the Market
Service
Program
One of the most important
Consumer behavior reasons to study consumer Consumers require
analysis will be the behavior is to find out answers When the world is different levels of
Understanding to some of the questions:
consumer behavior first to indicate a With the help of consumer changing as rapidly as it is customer service, and
In marketing, Consumer allows you to create shift in market  Is the customer buying from behavior analysis, Nike realized happening today, the understanding the
your competitor? biggest challenge we all
consumer behavior is not effective marketing trends. that most of its target audience is face is staying relevant to
differences within
 Why is a consumer buying not professional athletes, but your customer base
differentiation i just important campaigns. Each
from your competitor?
our target market. And
will help you provide
campaign can speak many of them were striving to be do you know what is the
s a way to attract new specifically to  What features attract a more like them. So at the 2012 main reason behind the the most appropriate
to distinguish a customers, but a separate group of consumer to your Olympics in London, Nike rapid changes? It is the service for individual
For example, the competitor's products? introduced a campaign to ever-changing behavior needs.
consumer from it is very consumers based on
recent trend of of our customers.
their behavior.  What gaps are your encourage athletics called ‘Find
important to consumers is toward
several other consumers identifying in Your Greatness'. It aimed to
retain existing environment- your products when promote the aspirations of being For example, if you own an
consumers. friendliness electronics store, high school
customers as For example, while compared to your an athlete, not just with high- or college students who buy a
This helps to well. When a targeting the kid's and healthy food. competitors? performing athletes but wanted to new laptop are more likely to
understand the features
make a target market, you may have This changing include all people regardless of they’re looking for than a
customer is to look out for venues market trend was their physical capability. The Losing relevance will only person buying his first
group of happy about a such as TV ads, school observed by many Studying consumer behavior campaign was well planned and cost the company its computer. With the first
facilitates understanding and market share. Haven’t we demographic, your service goal
consumers with particular programs, and blogs brands was data-driven, of course, seen Sony will be to provide information
facing competition. Based on carefully analyzed before taking
the same or product, he/she targeting young including McDonald consumers’ expectations, any action. This message inspired
Walkman failing to stay about the latest trends in
technology, while with the
mothers. You will s. Based on relevant in the digital
similar will repeat the need to take different consumer
your brand can offer many consumers and had music era, and the taxi
second demographic, you’ll
need to spend more time
competitive advantages.
behavior. purchase. messaging behavior, McDonald’
enormous appeal to target industry doom with no
preparedness to battle
educating the customer,
finding out what his specific
approaches for consumers. needs are, and even teaching
s brought healthy the UBER uprise!! him how to use the features of
different consumer food options. his new electronic device.
groups.
 Comparison between Organizational Buying behavior and consumer buying behavior
• The consumer behavior is more with impulse buying and unplanned purchase and organizational buying behavior is more with
rational and planned purchase.
• The individual or consumer buys makes a purchase to satisfy the personal need. There would be no reselling of commodities
and services. Organization buys commodities for business and reselling purposes.
• The quantity of the goods and services of consumer buyers is small. Organizational buyers buy products and services in
a large quantity.
• Consumers may or may not have the market knowledge while making the buying decision. Organizational buyers make
purchase decisions after rational thinking and gathering the market information.
• Consumer buying is where the final consumer buys goods and services for the personal consumption. In other words consumer
buying means the day to day purchases by individuals to satisfy their daily needs. Organizational buying involves purchasing
goods and services to produce another good with the intention of reselling it to final consumers to earn profits. The organizational
buying is also known as business buying.
• Consumer markets contain of many small scale buyers where as business markets consist of few large buyers. As an example
consumer market for clothing would be every individual who purchases their clothing needs at a small scale and business market
for clothing would be retailers who purchase cloths from manufacturers for reselling at a large scale.
• In a consumer market consumers demand for goods when they recognize their needs. As a result the demand for a good created
in large scale. The demand for goods in business market is derived from the summation of the demand for goods in the consumer
market. As an example the business market demand for clothes (the quantity purchased by the clothing retailer) depends of the
quantity demanded by the final consumer of clothing.
• Demand for goods in consumer markets is heavily affected by the changes in the prices where it can be concluded that consumer
market demand is price elastic. Demand for goods in business markets are not affected by the price changes in short run where
Buying Roles

The decision making unit of a buying organization is called

its buying center – all the individuals and units that play a
role in the business purchase decision making process.
This group includes the actual users of the product or
service , those who make the buying decision, those who
influence the buying decision , those who do the actual
buying and those who control buying information
 Kinds Of Buying Roles
1. Initiators – Those who request that something be purchased. They may be users or others in the
organization. For example- for office equipment's , the initiative may be taken by administrative department.
2. Users – Those who will use the product or services .In many cases the users initiate the buying proposal and
help define the product requirements.
3. Influencers – People who influence the buying decision . They often help define specification and also
provide information for evaluating alternatives. Technical persons are generally important influencers.
4. Deciders – People who decide on product requirements or on suppliers and those who have authority to
select the suppliers. For major purchase , the final decision will be taken by top management.
5. Approvers –People who authorize the proposed action of deciders and buyers.
6. Buyers –People who have formal authority to select the supplier and arrange the purchase terms. Buyers
paly their major role in selecting vendors and negotiating. In more complex the buyers might include high
level managers.
7. Gatekeepers- People who have the power to prevent sellers or information from reaching members of the
buying center. For example – purchasing agents , receptionists may prevent salespersons from contacting
THANK YOU