Noida Institute of Engineering and Technology, Greater Noida

Consumer Behavior

Unit: I

Subject Name:
Consumer Behavior Faculty Name
Dr. Anjali Saluja
Course Details Assistant professor
(PGDM 3rd Trimester)

Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I
1
3/8/2023
 Prerequisite and Recap

• Marketing Mix
• Meaning of Consumer

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 2
 Brief Introduction about the subject with videos

• https://www.slideshare.net/SwatiSood4/consumer-
behaviour-16366816
• https://www.slideshare.net/lalitsharmabhardwaj/consu
mer-behaviour-ppt-127855880
• https://www.slideshare.net/PuspanjaliBhandari/introd
uction-to-consumer-behavior-78483029

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 3
 Unit Objective(s)

• To enable the students to understand the concepts of

Consumer Behavior
• Provide understanding about the applications of
Consumer Behavior.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 4
 Topic objectives
• Topic objectives
• Students will be able to know the following concepts:
• Introduction to Consumer
• Types of Consumer
• Characteristics of Consumer Behavior,
• Importance/Need of Consumer Behavior,
• Factor affecting Consumer Behavior,
• Application of Consumer Behavior with Marketing
prospect.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 5
 Topic Outcomes
• Topic Outcomes
1. Understand knowledge of consumer behaviour can
be applied to marketing.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 6
 Consumer Behavior (CO1)

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.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 7
 Consumer Behavior (CO1)

According to Philip Kotler

“Consumer buying behaviour is “the study of how

individual, groups and organisation select, buy,
use and dispose of goods and services, ideas or
experiences to satisfy their needs and wants.”

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 8
 Characteristics of Consumer Behavior (CO1)

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 9
 Importance/Need od study Consumer Behavior (CO1)

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 10
 Types of Consumer (CO1)

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 11
 Types of Consumer (CO1)

Faculty Name: Dr. Anjali Saluja Subject

3/8/2023 code and abbreviation: PGDM 033 Unit 12
Number: I
 Types of Consumer Behaviour (CO1)

Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I
3/8/2023 13
 Types of Consumer Behaviour (CO1)

Complex buying
.
Customers with complex purchasing patterns are more likely to
purchase costly, expressive and risky assets. Before making a
substantial investment in this kind of transaction, the buyer may
extensively research the product. This consumer behaviour is evident
when a customer buys a car or real estate.
Dissonance-reducing buying
When consumers engage in dissonance-reducing purchasing
behaviour, they actively participate in decision-making but struggle to
distinguish between the various brands' offerings. When a customer
worry they might regret their decision, dissonance can happen. Before
making a purchase, they gather information from multiple sources and
compare to evaluate all the available options.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 14
 Types of Consumer Behaviour (CO1)

Habitual buying
This type of. consumer behaviour is evident when the product is
inexpensive, and the purchase is rare. Consequently, the consumer's
interest and investment are less in the product type or brand. In this
market, consumers rarely consider complex factors before making a
purchase. Instead, they purchase from their choice of company or any
other readily available. Instead of brand loyalty, habitual buying
practice typically depends on the convention or brand familiarity.
Variety-seeking
When a consumer engages in variety-seeking behaviour, they simply
want more options available. Most of the time, when a consumer
switches products or brands, it is out of boredom, interest or a desire
to try a different one.

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 Buying Motives (CO1)

.
Buying Motives are those influences and
considerations which provide the impulse
to buy, induce action or determine choice
in the purchase of goods and services.

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 Buying Motives (CO1)

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 17
 Buying Motives (CO1)

.
Product Buying Motives:
Product buying motives refer to those influences and reasons,
which prompt (i.e. induce) a buyer to choose a particular
product in preference to other products. They include the
physical attraction of the product (i.e. the design, shape,
dimension, size, colour, package, performance, price etc. of the
product) or the psychological attraction of the product (i.e. the
enhancement of the social prestige or status of the purchaser
through its possession), desire to remove or reduce the danger
or damage to life or body of the possessor, etc. In short, they
refer to all those characteristics of a product, which induce a
buyer to buy it in preference to other products.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 18
 Buying Motives (CO1)

. Product Buying Motives:

A. Promotional
When a buyer decides to purchase a product without thinking over the
matter logically and carefully (i.e., without much reasoning), she is said to
have been influenced by emotional product buying motives. Emotional
product buying motives include the following:
1. Pride or Prestige:
Pride is the most common and strongest emotional buying motive. Many
buyers are proud of possessing some product (i.e., they feel that the
possession of the product increases their social prestige or status).
2. Affection:
Affection or love for others is one of the stronger emotional buying motives
influencing the purchasing decisions of the buyers. Many goods are
purchased by the buyers because of their affection or love for others.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 19
 Buying Motives (CO1)

.
3. Comfort or desire for comfort:
Desire for comfort (i.e., comfortable living) is one of the important
emotional buying motives. In fact, many products are bought comfort. For
instance, fans, refrigerators, washing machines, cushion beds, etc. are
bought by people because of their desire for comfort.
4. Ambition:
Ambition is one of the emotional buying motives. Ambition refers to the
desire to achieve a definite goal. It is because of this buying motive that,
sometimes, customers buy certain things.
5. Hunger and thirst:
Hunger and thirst are also one of the important emotional buying motives.
Foodstuffs, drinks, etc. are bought by the people because of this motive.

Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I
3/8/2023 20
 Buying Motives (CO1)

B. Rational Product Buying Motives:

When a buyer . decides to buy a certain thing after careful
consideration (i.e. after thinking over the matter consciously and
logically), s/he is said to have been influenced by rational product
buying motives. Rational product buying motives include the
following:
1. Safety or Security:
Desire for safety or security is an important rational buying motive
influencing many purchases.
2. Economy:
Economy, i.e. saving in operating costs, is one of the important
rational buying motives.
3. Relatively low price:
Relatively low price is one of the rational buying motives. Most of the
buyers compare the prices of competing products and buy things,
which are relatively cheaper.
3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 21
 Buying Motives (CO1)

.
4. Suitability:
Suitability of the products for the needs is one of the rational buying
motives. Intelligent buyers consider the suitability of the products
before buying them.
5. Durability of the product:
Durability of the product is one of the most important rational
buying motives. Many products are bought by the people only on the
basis of their durability.

Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I
3/8/2023 22
 Buying Motives (CO1)

Patronage . Buying Motives:

Patronage buying motives refer to those considerations or
reasons, which prompt a buyer to buy the product wanted
by him from a particular shop in preference to other
shops. In other words, they are those considerations or
reasons, which make a buyer, patronise a particular shop
in preference to other shops while buying a product.

Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I
3/8/2023 23
 Buying Motives (CO1)

A. Emotional. Patronage Buying Motives:

When a buyer patronises a shop (i.e. purchases the things required by
him from a particular shop) without applying his mind or without
reasoning, he is said to have been influenced by emotional patronage
buying motives. Emotional patronage buying motives include the
following:
1. Appearance of the shop:
Appearance of the shop is one of the important emotional patronage
buying motives. Some people make their purchases from a particular
shop because of good or attractive appearance of the shop,
2. Display of goods in the shop:
Attractive display of goods in the shop also makes the buyers
patronise a particular shop.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 24
 Buying Motives (CO1)

3. Recommendation
. of others:
Recommendation of others also constitutes one of the important
emotional patronage buying motives. Some people purchase their
requirements from a particular shop because that shop has been
recommended to them by others, i.e., by their friends and relatives.
4. Prestige:
Prestige is one of the emotional patronage buying motives of the
buyers. For instance, some people consider it a prestige to take coffee
from a five-star hotel.
5. Habit:
Habit is also one of the important emotional patronage buying
motives. Some people make their purchases from a particular shop
for the simple reason that they have been habitually making their
purchases from that shop.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 25
 Buying Motives (CO1)

B. Rational Patronage
. Buying Motives:
When a buyer patronises a shop after careful consideration (i.e. after much logical
reasoning and careful thinking) he is said to have been influenced by rational
patronage buying motives. Rational patronage buying motives include the following:
1. Convenience:
Convenient location proximity of a shop is one of the considerations influencing the
purchases of many buyers from a particular shop. Many buyers, usually, buy their
requirements from a near-by shop, as it is convenient to them to make their purchases.
2. Low price charged by the shop:
Price charged by the shop also influences the buyers to patronise a particular shop. If
the price charged by a shop for a particular product is relatively cheaper, naturally,
many people will make their purchases from that shop.
3. Credit facilities offered:
The credit facilities offered by a store also influence the buying of some people from a
particular shop. People who do not have enough money to make cash purchases every
time prefer to make their purchases from a shop which offers credit facilities.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 26
 Buying Motives (CO1)

4. Services offered:
.
The various sales and after-sale services, such as acceptance of orders through phone,
home delivery of goods, repair service, etc., offered by a shop also induce the buyers to
buy their requirements from that shop. Rational buyers are, often, influenced by the
various services or facilities offered by the shop.
5. Wide choice:
Wide choice of goods offered by a shop is one of the rational considerations making the
buyers patronise a particular shop. People generally prefer to make their purchases
from a shop, which offers wide choice (i.e. wide varieties of goods).

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 27
 Factor Affecting Consumer Behaviour (CO1)

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 28
 Factor Affecting Consumer Behaviour (CO1)

1) Cultural factors – Culture forms the ideas, beliefs, values and behaviour of a person
.
living in a particular region. People living with each other in an area are influenced by
each other. Culture has a powerful influence on individuals with guidelines and rules
acceptable to them.
In each culture, Sub-cultures exist which share their value system based on common
life experiences and situations. They include nationalities, religions, racial groups, caste
and regions.
Social class refers to a group in a culture whose members have same values, lifestyles,
preferences and behaviours. They depict distinct brand preferences based on quality,
lifestyle, etc. This classification is not solely based on income group, but a mix of
various variables like occupation, income, education, wealth, lifestyle, etc.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 29
 Factor Affecting Consumer Behaviour (CO1)

2) Social factors – Man being a social animal, his behaviour is derived from the people he
.
lives and interacts with. These also affect his/her thinking and preferences. These factors are
reference groups, family, role and status in the society.
Reference groupis a group within the society where a person socialises and belongs.These
are the source of his values, beliefs, attitude and behaviour. These are family, office staff,
neighborhood, a sports club, etc. For Example, a decision making on buying a vehicle gets
largely influenced by the reference group.
Family members strongly influence buyer behaviour. There is a very open and close
interaction within a family. Marketing people tend to study the family behaviour most often,
because for purchasing most of the products a family is involved in decision making.
Roles and Statuses – A person being a social animal is part of a group like family, clubs,
etc. In a group every person has a role and a status. In family, a person can be an elder,
eldest child, youngest child, etc. Each of these persons has a role to perform and a status in
the family.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 30
 Factor Affecting Consumer Behaviour (CO1)

3) Personal Factors – personal factors include a person’s age, job and income, lifestyle,
personality and self-image.
We buy different products over our lifetime with the change in age. For
example, Preference for a vehicle changes with our age.
A persons Job and income also has great influence on the products he buys. A person
working in a management role will prefer branded accessories, travel first class, etc.
Lifestyle – people often adopt certain lifestyle depending on their goal in life. For example,
educated, wealthy, happy, etc. Lifestyle refers to attitude, belief, interest, and opinion a
person exhibits with respect to himself and the world around him.
Personality and self-image – Personality refers to certain traits in a person that
distinguishes him from others. A person can have a personality wherein he/she is confident,
introvert and doesn’t likes to socialize much.

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 31
 Factor Affecting Consumer Behaviour (CO1)

4) Psychological factors – there are four psychological factors that influence buying
behaviour – motivation, perception, learning, and beliefs and attitudes.
Motivation – A need becomes a motive when it continuously encourages a person to
act.
Perception – once a person has a motive to make a purchase he is influenced by his
perception which is the analysis of the information he has gathered. Perception can be
based on knowledge, opinion or faith.
Learning – a person changes his preferences basis his experience. If a person has a
good experience with a certain brand, the brand image is positively reinforced. When
buying a product he may check for the same brand. Marketers influence customers
based on the learning categories – drives, cues, responses and reinforcements.
Beliefs and attitudes – A belief is a feeling or a thought about something that may be
rational or irrational. (“I believe in bad omen). An attitude refers to beliefs expressed
in words or behaviour. (“I hate junk food”).

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 32
 Application of CB with marketing prospect (CO1)

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 33
 MCQ s
1. The buying process starts when the buyer recognizes a _____
A. Product or Service
B. Shop or Market
C. Need or Problem
D. Money or Status
2. If performance meets consumer expectations, the consumer is _________.
A. Satisfied
B. Dissatisfied
C. Delighted
D. Happy
3. CDM stands for ________
A. Consumer Development Model
B. Consumer Decision Mix
C. Consumer Decision Making
D. Consumer Development Matrix

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 34
 MCQ s
4. When goods and services are purchased for use in the production or assembling
of products that are sold and supplied to others is known as ______
A. Individual Buyer Behaviour
B. Business Buyer Behaviour
C. Consumer Buyer Behaviour
D. Secondary Buyer Behaviour
5. ____________is displayed by a person while buying milk.
A. Selective Buying Behaviour
B. Routinized buying behaviour
C. Extnsive buying behaviour
D. Credence buying behaviour
6. Any individual who purchases goods and services from the market for his/her end-
use is called a..................
A. customer
B. purchaser
C. consumer
D. all these

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 35
 MCQ s

7. ------------ is nothing but willingness of consumers to purchase products and services

as per their taste, need and of course pocket.
A. consumer behaviour
B. consumer interest
C. consumer attitude
D. consumer perception

8. ------------- is a branch which deals with the various stages a consumer goes through
before purchasing products or services for his end use.
A. consumer behaviour
B. consumer interest
C. consumer attitude
D. consumer perception
9. -------------- refers to how an individual perceives a particular message
A. consumer behaviour
B. consumer interest
C. consumer attitude
D. consumer interpretation
3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 36
 MCQ s

10. “----------- is the action and decisions process or people who purchase goods and
services for personal consumption.”
A. consumer behaviour
B. consumer interest
C. consumer attitude
D. consumer interpretation
11.
________________ emphasize(s) that profitable marketing begins with the discovery
and understanding of consumer needs and then develops a marketing mix to satisfy
these needs.
A. the marketing concept
B. the strategic plan
C. the product influences
D. the price influences

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 37
 MCQ s

12. ________________ is one of the most basic influences on an individual’s needs,

wants, and behaviour.
A. brand
B. culture
C. product
D. Price

13. In terms of consumer behaviour; culture, social class, and reference group
influences have been related to purchase and _______________.
A. economic situations
B. situational influences
C. consumption decisions
D. physiological influences

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 38
 MCQ s

14. Many sub-cultural barriers are decreasing because of mass communication, mass
transit, and a ___________________.
A. decline in the influence of religious values
B. decline in communal influences
C. strong awareness of brands in the market
D. strong awareness of pricing policies in the market

15. ___________ develop on the basis of wealth, skills and power.

A. economical classes
B. purchasing communities
C. competitors
D. social classes
Answer» D. social classes

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 39
 References

• 1. Hawkins, Best and Coney: Consumer Behaviour, Tata McGraw Hill, New
Delhi .
• 2. Schiffman, L.G. and Kanuk, L.L.: Consumer Behaviour, Prentice Hall of
India,
• 3. Laudon, David L and Bitta Albert J Della: Consumer Behaviour, Tata
McGraw Hill, New .
• 4. Mowen, John C: Consumer Behaviour, Macmillan, New York .
• 5. Assael, H: Consumer Behaviour and Marketing Action, South Western,
Ohio .

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 40
 References

3/8/2023 Faculty Name: Dr. Anjali Saluja Subject code and abbreviation: PGDM 033 Unit Number: I 41