NAME – VAISHNAVI CHAUDHARY

CLASS – S.Y. B.COM

ROLL.NO - KZBCU510

DIVISION - C
SUBJECT - ADVERTISMENT
TOPIC - CONSUMER BEHAVIOUR
 ACKNOWLEDMENT
I would like to express my special thanks of gratitude to my Advertisment teacher
who gave me the golden opportunity to do this wonderful project of Advertisment.
Who also helped me in completing my project. I came to know about so many new
things I really thankful to them.
 INDEX
S.NO TOPIC PAGE

1 INTRODUCTION 1

2 NATURE OF CONSUMER BEHAVIOUR 2-4

3 WHY IS CONSUMER BEHAVIOUR 5-7

IMPORTANT
8-10
TYPES OF CONSUMER BEHAVIOUR
4 11-12
WHAT AFFECTS CONSUMER BEHAVOIUR
5 13
CONCLUSION
6
 INTRODUCTION

Consumer behaviour 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.

The study of consumer behaviour assumes that the consumers are

actors in the marketplace. The perspective of role theory assumes that
consumers play various roles in the marketplace. Starting from the
information provider, from the user to the payer and to the disposer,
consumers play these roles in the decision process.

The roles also vary in different consumption situations; for example, a

mother plays the role of an influencer in a child’s purchase process,
whereas she plays the role of a disposer for the products consumed by
the family.
Nature of Consumer Behaviour

1. Influenced by various factors:

The various factors that influence the consumer behaviour

are as follows:

a. Marketing factors such as product design, price, promotion, packaging,

positioning and distribution.

b. Personal factors such as age, gender, education and income level.

c. Psychological factors such as buying motives, perception of the product and

attitudes towards the product.

d. Situational factors such as physical surroundings at the time of purchase,

social surroundings and time factor.

e. Social factors such as social status, reference groups and family.

2. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time
depending on the nature of products. For example, kids prefer colourful and fancy
footwear, but as they grow up as teenagers and young adults, they prefer trendy
footwear, and as middle-aged and senior citizens they prefer more sober footwear.
The change in buying behaviour may take place due to several other factors such
as increase in income level, education level and marketing factors.
3. Varies from consumer to consumer

All consumers do not behave in the same manner. Different consumers behave
differently. The differences in consumer behaviour are due to individual factors
such as the nature of the consumers, lifestyle and culture. For example, some
consumers are technoholics. They go on a shopping and spend beyond their means.

They borrow money from friends, relatives, banks, and at times even adopt
unethical means to spend on shopping of advance technologies. But there are other
consumers who, despite having surplus money, do not go even for the regular
purchases and avoid use and purchase of advance technologies.

4. Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For example,
the behaviour of the urban consumers is different from that of the rural consumers.
A good number of rural consumers are conservative in their buying behaviours.
The rich rural consumers may think twice to spend on luxuries despite having
sufficient funds, whereas the urban consumers may even take bank loans to buy
luxury items such as cars and household appliances. The consumer behaviour may
also varies across the states, regions and countries. It may differ depending on the
upbringing, lifestyles and level of development.

5. Varies from product to product:

Consumer behaviour is different for different products. There are some consumers
who may buy more quantity of certain items and very low or no quantity of other
items. For example, teenagers may spend heavily on products such as cell phones
and branded wears for snob appeal, but may not spend on general and academic
reading. A middle- aged person may spend less on clothing, but may invest money
in savings, insurance schemes, pension schemes, and so on.

6. Improves standard of living:

The buying behaviour of the consumers may lead to higher standard of living. The
more a person buys the goods and services, the higher is the standard of living. But
if a person spends less on goods and services, despite having a good income, they
deprives themselves of higher standard of living.

7. Reflects status:
The consumer behaviour is not only influenced by the status of a consumer, but it
also reflects it. The consumers who own luxury cars, watches and other items are
considered belonging to a higher status. The luxury items also give a sense of pride
to the owners.
Why is consumer behavior important?
Studying consumer behavior is important because it helps the 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 BIG BAZAAR 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.
Types of consumer behavior
1. Complex buying behavior

This type of behavior is encountered when consumers are buying an

expensive, infrequently bought product. They are highly involved in the
purchase process and consumers’ research before committing to a high-
value investment. Suppose buying new furniture or refridgerator for
your Home. This is complex buying.

2. Dissonance-reducing buying behavior

The consumer is highly involved in the purchase process but has

difficulties determining the differences between brands. ‘Dissonance’
can occur when the consumer worries that they will regret their choice.

Imagine you are buying a lawnmower. You will choose one based on
price and convenience, but after the purchase, you will seek
confirmation that you’ve made the right choice.

3. Habitual buying behavior

Habitual purchases are characterized by the fact that the consumer has
very little involvement in the product or brand category. Imagine
grocery shopping: you go to the store and buy your preferred type of
bread. You are exhibiting a habitual pattern, not strong brand loyalty.

4. Variety seeking behavior

In this situation, a consumer purchases a different product not because

they weren’t satisfied with the previous one, but because they seek
variety. Like when you are trying out new shampoos for themselves.
What affects consumer behavior?

1. Marketing campaigns
Marketing campaigns influence purchasing decisions a lot. If done right and
regularly, with the right marketing message, they can even persuade consumers to
change brands or opt for more expensive alternatives.

Marketing campaigns, such as Instagram Ads for work can even be used as
reminders for products/services that need to be bought regularly but are not
necessarily on customers’ top of mind (like an insurance for e.g.). A good
marketing message can influence impulse purchases.

2. Economic conditions
For expensive products especially (like houses or cars), economic conditions play a
big part. A positive economic environment is known to make consumers more
confident and willing to indulge in purchases irrespective of their financial
liabilities.

The consumer’s decision-making process is longer for expensive purchases and it

can be influenced by more personal factors at the same time.

3. Personal preferences
Consumer behavior can also be influenced by personal factors: likes, dislikes,
priorities, morals, and values. In industries like fashion or food, personal opinions
are especially powerful.

Of course, advertisements can influence behavior but, at the end of the day,
consumers’ choices are greatly influenced by their preferences. If you’re vegan, it
doesn’t matter how many burger joint ads you see, you’re not going to start eating
meat because of that.

4. Group influence
Peer pressure also influences consumer behavior. What our family members,
classmates, immediate relatives, neighbors, and acquaintances think or do can play
a significant role in our decisions.

Social psychology impacts consumer behaviour. Choosing fast food over home-
cooked meals, for example, is just one of such situations. Education levels and
social factors can have an impact.

5. Purchasing power
Last but not least, our purchasing power plays a significant role in influencing our
behavior. Unless you are a billionaire, you will consider your budget before
making a purchase decision.

The product might be excellent, the marketing could be on point, but if you don’t
have the money for it, you won’t buy it.

Segmenting consumers based on their buying capacity will help marketers

determine eligible consumers and achieve better results.
 CONCLUSION
It is a challenge for the organisations to ensure that clients are provided with the
best quality services. This promotes the psychological, physical and emotional
satisfaction of the clients. All customers’ aim at getting value for their money
when they purchase a product or on service rendered. Research established the
relationship between consumer emotion and consumer satisfaction in organisation
show that high levels of satisfaction increases brand loyalty. Consumers are faced
with an array of product selection and competition is fierce among companies. This
is why your understanding of consumer behaviour is vital to the success of your
business. Market is for the consumers not consumers are for the market .