NAME: SHRUTI GUPTA​

ID NO.: MU18BBA097
EMAIL:SHRUTIGUPTA42985@GMAIL.COM​
PRESENTATION
ON
MODULE 1
“CONSUMER
BEHAVIOR”
 CONSUMER BEHAVIOR:-
• Consumer behavior 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.
NATURE OF CONSUMER BEHAVIOR:
 1. Systematic process :
Consumer behavior is a systematic process relating to buying decisions of the
customers.
The buying process consists of the following steps :
• Need identification to buy the product
• Information search relating to the product
• Listing and evaluating the alternative
• Purchase decision
• Post purchase evaluation by the marketer
 
2. Influenced by various factors :
Consumer behavior is influenced by a number of factors the factors that
influence consumers include marketing, personal, psychological, situational,
social and cultural etc.

3. Different for different customers :

All consumers do not behave in the same manner. Different consumers behave
differently. The different in consumer behavior is due to individual factors such
as nature of the consumer's lifestyle, culture etc.
 4.Different for different products :
Consumer behavior is different for different products there are some consumers
who may buy more quantity of certain items and very low quantity of some other
items.

5.Vary across regions :

The consumer behavior vary across States, regions and countries. For instance,
the behavior of urban consumers is different from that of rural consumers.
normally rural consumers are conservative (traditional) in their buying behavior
IMPORTANCE OF CONSUMER BEHAVIOR :
1. Production Policies:
The study of consumer behavior effects production policies of enterprise.
Consumer behavior discovers the habits, tastes and preferences of consumers and
such discovery enables and enterprise to plan and develop its products according
to these specifications. It is necessary for an enterprise to be in continuous touch
with the changes in consumer behavior so that necessary changes in products
may be made.
2. Price policies:The buyer behavior is equally important in having price policies.
The buyers of some products purchase only because particular articles are
cheaper than the competitive articles available in the market.
3. Decision regarding channels of distribution:
The goods, which are sold and solely on the basis of low price mast and
economical distribution channels. In case of those articles, which week TV sets,
refrigerators etc. Must have different channels of distribution. Thus, decisions
regarding channels of distribution are taken on the basis of consumer behavior
4. Decision regarding sales promotion: Study of consumer behavior is also vital in
making decisions regarding sales promotion. It enables the producer to know
what motive prompt consumer to make purchase and the same are utilized in
promotional campaigns to awaken desire to purchase.
5. Exploiting marketing opportunities: Study of consumer behavior helps the
marketers to understand the consumers needs, aspirations, expectations,
problems etc. This knowledge will be useful to the marketers in exploiting
marketing opportunities and meeting the challenges of the market.
MODEL OF CONSUMER DECISION MAKING :
(A) Economic View or Model : This model assumes that a consumer is rational
person and he takes rational decisions. He compares various products, evaluates
its benefits and disadvantages, and then makes a purchase decision on the basis
of information collected. He is aware of all product alternatives and is capable of
ranking products in terms of benefits and disadvantages. However this model is
considered unrealistic as people are limited by skills, habits, existing values and
perceptions and they are not always rational when making a purchase decision.
(B) Passive View or Model : This model assumes that the consumers take
decisions according to the promotional efforts of the marketers and respond
directly to the sales and advertisement appeals offered by the marketers. It is
opposite to the economic model, as it assumes people will evaluate a product
depending upon how it is promoted and positioned in the market. However this
model is also unrealistic as the consumers are capable of collecting and evaluating
information about product alternatives and then making a purchase.
(C) Cognitive View or Model –
The cognitive view is the best of the four models of consumer decision making.
This model states that the consumers make decisions on the basis of their own
interests and understanding of the market demand and not according to their
rational needs or promotional efforts of the marketers. Every marketer must help
consumers to develop a short-cut decision rules that shorten the decision making
process and lead to instant purchases.
(D) Emotional View or Model –
The Emotional model states that all consumers are emotional and act upon their
emotions while making a purchase decision. Consumers make more impulsive
purchases when they relate themselves with a product or service. They take less
time to think whether the product is necessary for them or not, but develops
negative or positive emotions related with the product. Hence products that bring
negative emotions are avoided and products that bring positive emotions in a
consumer are bought by him.
GUIDED BY:-
SANJAY YADAV SIR

SUBMITTED BY:-
SHRUTI GUPTA
MU18BBA097
BBA 5th semester​