Consumer Behavior

INTRODUCTION TO THE COURSE

SEMESTER 6TH

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We will Study this Course in 8 Modules
1. Module 1: Introduction to the Study of Consumer Behavior(Buyer behavior)
◦ What is consumer behavior?
◦ Definition and types of consumers.
◦ Why we study consumer behavior.
◦ Consumer behavior as a field of study.
◦ Consumer buying decision making process
2. Module 2: Market Research and Consumer Behavior.
◦ How market research relates to consumer behavior.
◦ How consumer behavior relates to market research.
◦ What are the tools for market research in order to know about consumer behavior

3. Module 3: Marketing Segmentation, Targeting and Positioning.

◦ How do we segment market.
◦ How do we target market.
◦ How do we position.
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We will study this course in 8
Modules…
4. Module 4: The Consumer Decision Making Process.
◦ What is the consumer decision making process.
◦ What stages it has ( Need, Information search, Alternatives, purchase, Post-purchase)

5. Module 5: Models of Consumers.

◦ Basic and some general Models which contribute to consumer behavior.

6. Module 6: Psychological Influences on Consumer Decision

Making.
◦ Needs, wants, motivation, emotions, perceptions, personality
◦ How these factors influence consumer decision making.

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We will study this course in 8
Modules…
7) Module 7: Sociological Influences on Consumer Decision Making.
◦ Friends, Family, Social class, culture, subculture, cross culture, Opinion leaders.
◦ What is influence of these factors on customer decision making.

8) Module 8: Diffusion of Innovation.

◦ How new products get diffused to the market/public.
◦ How consumer adopt them.

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Consumer Behavior
C H A P T E R 1 : I N T R O D U C T I O N TO T H E S T U D Y O F C O N S U M E R B E H AV I O R
LECTURER: MOHIUDDIN DALIL

SEMESTER 6TH

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What we will study in module 1
1. What is consumer behavior?
2. Definition and types of consumers.
3. Consumer activates.
4. Consumer responses.
5. Why we study consumer behavior.
6. Consumer behavior as a field of study.
7. Consumer buying decision making process.

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What is Consumer Behavior
1) Every individual has his own needs and wants and they are unique in them selves.
2) The marketer helps to satisfy those needs and wants through offerings.
3) For a firm to survive, compete and grow, it is essential to identify the needs and wants of
customers and provide the desired satisfaction better than competitors.
4) To provide desired satisfaction, marketer needs to know customer very well. Marketer should
delight customer in this age.
5) Here marketer needs Consumer Behavior. ( it emerged as separate field of study in 1960)

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What is Consumer Behavior
Definition of Consumer Behavior
Consumer behavior entails all consumer activities associated with the purchase, use, and
disposal of goods and services, including the consumer’s emotional, mental, and behavioral
responses that precede, determine, or follow these activities.

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A) Who is consumer?
A consumer is someone who consumes or uses the goods, and the customer is someone
who purchases the commodity and makes the payment. 
The term “consumer” can describe either individual or organizational consumers.
1) Individual Consumer
Individual consumers purchase goods and services to satisfy their own personal needs
and wants.
2) Organizational consumer

Organizational consumer purchase goods and services in order to:

• Produce other goods or services
• Resell them to other organizations or to individual consumers
• Help manage and run their organization

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A) Who is consumer?…
Organizational Consumer May be
1) For Profit Organizations ( Manufacturers, Wholesalers…)
2) Non-For Profit Organizations ( Charites, Governmental Institutions…)
Our focus here in this course is on individual consumers
Customer = Client, buyer

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B) Consumer Activities
A) Purchase Activities
1. Purchase activities are those through which consumers acquire goods and services.
2. Purchase activities also include everything done leading up to the purchase, such
as gathering and evaluating information about the product or service and choosing
where to make the purchase.
3. The purchase method and any additional services desired— home delivery and
installation, and warranties, for instance—also influence purchase activities.
4. So too are factors unique to the situation, such as the atmosphere of a store, the
design of a website, the reason for the purchase, and the amount of time the
consumer devotes to the buying decision.

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B) Consumer Activities…
B) Use Activities
1. Use activities describe where, when, and how consumption takes place.
2. For example, do consumers immediately consume the product after purchase, like an
ice cream cone or a haircut,
3. Or do they delay consumption, such as when they buy new clothing for as future
occasion or an airline ticket?
4. Is the product consumed as part of a special event, such as going on vacation or
attending a wedding, or as part of a special occasion, such as a holiday or birthday?
5. Is the entire product consumed before disposal, such as a movie theater ticket or a
battery, or is some left unconsumed, such as chewing gum or ink remaining in a toner
cartridge?

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B) Consumer Activities…
C) Disposal activities
1.Disposal activities are the ways consumers get rid of products and/or packaging after
consumption, and include discarding products, recycling, reuse, and resale.

2.E.g. Discarding product: Battery | recycling: Plastic, Paper | Reuse : Rechargeable

battery | Resale : Refrigerator

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C) Consumer Responses
Central to our definition of consumer behavior are consumers’ emotional, mental, and
behavioral responses to goods and their marketing. Three kind of responses are there
A) Emotional/Affective responses
1. Emotional responses (also called affective responses) reflect a consumer’s emotions,
feelings, and moods.
2. For example, when a consumer buys his first car, both excitement and uncertainty are
probably among his affective responses.
B) Mental/Cognitive responses
3. Mental responses (also referred to as cognitive responses) include a consumer’s
thought processes, opinions, beliefs, attitudes, and intentions about products and
services.

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C) Consumer Responses…
C) Behavioral Responses
1. Behavioral responses include a consumer’s overt decisions and actions during the
purchase, use, and disposal activities identified earlier

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Consumer Behavior as a Field of
Study
1. Consumer behavior is a social science that draws on theories and concepts
of Psychology, Sociology, Anthropology, Economics, and Statistics.
2. Study of consumer behavior emerged in the late 1940s when many firms
shifted from a selling orientation to producing goods that consumers actually
needed and wanted.
3. This change in focus was the beginning of the marketing concept, the idea
that firms should discover and satisfy customer needs and wants in an
efficient and profitable manner, while benefiting the long-term interests of
society.
4. Today, the marketing concept is a core philosophy for many successful
organizations. As for the future, the field of consumer behavior is likely to
emphasize satisfying basic customer needs and wants.

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Why We Study Consumer Behavior?
1) Consumer Differentiation
◦ In marketing, consumer differentiation is a way to distinguish a consumer
from several other consumers.
◦ This helps to make a target group of consumers with the same or similar
behavior.
◦ Consumer differentiation will help to tailor your strategies to the needs of
varying customer groups.
◦ When consumer differentiation is done, you can expand the width and
breadth of your services.
◦ You will be able to effectively serve a wider group of people.

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Why Study Consumer Behavior?...
2) Retention of Consumers
◦ Consumer behavior is not just important to attract new customers, but it is
very important to retain existing customers as well.
◦ When a customer is happy about a particular product, he/she will repeat the
purchase.
◦ Therefore, marketing the product should be done in such a way that it will
convince customers to buy the product again and again.
◦ Thus, it is very evident that creating customer and retaining them is very
important.
◦ This can be done only by understanding and paying attention towards the
consumer’s behavior.

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Why Study Consumer Behavior?...
3) Design Relevant Marketing Program/Campaigns
◦ Understanding consumer behavior allows you to create effective marketing
campaigns.
◦ Each campaign can speak specifically to the separate group of consumers
based on their behavior.
◦ A study of consumer behavior enables the marketers to understand what
motives consumers to make purchases. Furthermore, the same motive can be
utilized in advertising media to stir the desire to make a purchase.
◦ Moreover, marketers should take decisions regarding the brand logo, packing
and gifts on the basis of consumer behavior.

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Why Study Consumer Behavior?...
4) Predicting Market Trend ( What we can sell)
◦ Consumer behavior analysis will be the first to indicate a shift in market trend.
◦ By conducting consumer behavior study, a company saves a lot of resources
that might otherwise be allocated to produce a product that will not be sold
in the market.
◦ For example, in summer a brand will not waste its resources for producing a
product that will not sell in summer.

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Why Study Consumer Behavior?...
5) Competition
◦ One of the most important reasons to study consumer behavior is to find out
answers to some of the questions:
◦ Is the customer buying from your competitor?
◦ Why is a consumer buying from your competitor?
◦ What features attracts a consumer to your competitor products?
◦ What gaps are your consumers identifying in your products when compared to your competitors?
◦ Studying consumer behavior facilitates in understanding and facing competition.
Based on consumers’ expectations, your brand can offer competitive advantages.

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Why Study Consumer Behavior?...
6) Innovate New Products
◦ Companies consistently strive hard to improve the success rate of their new products or new
ideas.
◦ One of the most important ways is to conduct sound and thoughtful consumer behavior
study.

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Consumer Buying Decision Making
Process

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Thank You

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