Consumer Behaviour

Dr. Swati Mukherjee

Lego
Lego
 LEGO Group is the manufacturer of LEGO toys, one of the
most popular brands of toys in the world. Lego Toys - 'The
Story of Playful Learning' describes the success story of the
LEGO Group.

 In 2005, the Denmark-based LEGO Group was one of the

world’s largest manufacturers of toys.
 The Group started its operations in 1932, making wooden
toys. Later it diversified into making plastic bricks, which
were introduced in the market as Automatic Binding
Bricks.
 Lego
 LEGO toys consisted of small plastic bricks of different
shapes and colors, which could be assembled into various
forms.
 Lego has been a toy targeted towards boys for many years.
 It was reported that only 9% of the primary users of the toy
were female.
 Upon seeing this, the company decided to come out with a
new product to entice more girls to play with Legos.
 Lego
 Lego sent out researchers to do a four year study involving
3,500 girls and their mothers. This market research included
studying the girls’ playing habits and extensive questioning
regarding what would make Legos more interesting for girls.

 Lego came out with a new line of toys on January 1st, 2012.
This line was called “Friends”.
 Lego
The brick colors for this line were changed to more
vibrant colors.
The packaging also changed, along with the figurines
included in the set.
Figurines were made to be slightly bigger to
accommodate accessories such as hairbrushes and
purses in their grips.
All of these changes were in line with what the
market research data found to be more appealing.6
Google Glass
 Google Glass
 Google Glass, a wearable technology device launched by
technology giant Google.

 Google Glass failed to capture the smart eyeglass technology

market segment and found difficult to sustain itself in the long
run.
 The failure of the device was a major debacle for Google.

 Google launched its ambitious Google Glass Explorer

program with the objective of building on the concept of
projecting digital information into the wearer’s field of vision.
 Google Glass
Critics pointed out that Google had made the mistake of
launching the prototype product without assessing customer
feedback and promoted it as a consumer device instead of
targeting the B2B audience, and said this was the reason for
its failure.

 Besides, its poor quality battery, bulky design, product flaws,

and privacy concerns seemed to be the major challenges for
Google Glass in a diversified competitive market. However,
the company committed to continuing the project by
launching its new enterprise edition of Glass in 2016.
Burger King
 Burger King
In August 2014, Burger King Worldwide Inc. (Burger King)
dropped ‘Satisfries’, the low fat French fries which it had
introduced less than a year earlier, from the menus of about
two-thirds of its restaurants across the US and Canada.

The move was attributed to poor sales and failure on the

part of the fast food giant to convince customers that
Satisfries were a healthier option than regular fries.
Burger King
According to Drew Kerr, President and CEO of Four
Corners Communications, Inc. , “People who consider
themselves in good or excellent health have not been
radically moved by Burger King’s efforts and in the long
run, it was unable to sustain itself with this demo
Burger King
 The failure of Satisfries was a major blow to the global fast
food giant which was struggling to provide better dining
experiences to customers by serving healthy fast food at its
restaurants.

 Burger King introduced the lower-calorie fries with the

objective of attracting more health-conscious consumers
and boosting its health-friendly image among the fast food
giants in the world.
Burger King
But critics questioned its claim about offering fewer
calories and a heathier fast food option than its rivals.

 The product also failed to satisfy consumers who were

not clear about the advantages of Satisfries compared to
the company’s regular fries.

Moreover, its overpricing, weak brand positioning, bad

marketing decision, wrong social media advertisements,
and lack of product differentiation among others, resulted
in the failure of Satisfries.
IKEA
IKEA is a Swedish Home furnishings company founded
by Ingvar Kamprad .
Creates affordable and trendy furniture.
Marketers realized Generation Y consumers prefer
furniture that is stylish, easy to clean, multifunctional and
portable.
IKEA uses bold orange , pink , green colour and lacquered
finished .
Can be wiped easily
Does not require polish
IKEA
It offers space saving multifunction desk that can be
converted into dining table .
It has wheels can be moved easily
Consumer Behaviour
Consumer Behaviour describes how consumers make
purchase decisions and how they use and dispose of
purchased goods and services .

how consumers think, feel and select between different

alternatives 
.
 Totality of consumer’s Decisions

Whether? What? Why? How? When? Where? How much?

How often?
Application of Consumer Behaviour
 To Analyze Market Opportunity:
Analysis of consumer's needs is essential for understanding the
nature of market.
 Selecting the Target Market:
we can concentrate to particular needs of customer. By the
analysis of market if we find out one particular segment needs
a special care.
 Determining the Product Mix:
Determine the right mix of product, price promotion and
advertising understand his behavior.
Factors Influencing Consumer Behavior

Cultural Social Personal Psychological

Culture Reference Age & Life- Motivation
Subculture Groups Cycle Stage Perception
Family Occupation
Learning
Roles & Economic Attitude
Status Situation
Belief
Lifestyle
Personality &
Self-Concept
Cultural factor
 Culture is the most fundamental determinant of a person’s want
and behaviour. The growing child acquires a set of values,
perception preferences and behaviours through his or her
family and other key institutions.

 food is strongly linked to culture. While fish is regarded as a

delicacy in Bengal whereas in Gujarat and fish is regarded as
mostly unacceptable food item
Cultural factor
Subculture:

Each culture consists of smaller sub-cultures that provide

more specific identification and socialisation for their
members.
Sub-culture refers to a set of beliefs shared by a subgroup of
the main culture, which include nationalities, religions, racial
groups and geographic regions. 
Ex: Indian, Hindu , Muslim, Christian
Social Factors
 Our behaviour patterns, likes and dislikes are influenced by the
people around us to a great extent. We always seek
confirmation from the people around us and seldom do things
that are not socially acceptable.

 Family : Nuclear family is that where the family size is small

and individuals have higher liberty to take decisions whereas in
joint families, the family size is large and group decision-
making gets more preference than individual. 
Social Factor
Family of orientation :
The influences of parents and individual’s upbringing
have a strong effect on the buying habits
Family of Procreation :
In individual’s purchasing habits and priorities change
under the influence of spouse.
 For instance, a father normally takes decisions on
investment whereas the mother takes decision on health
of children.
Social Factors
Reference group
A group is two or more persons who share a set of norms
and whose relationship makes their behaviour
interdependent.
A reference group is a group of people with whom an
individual associates.
Primary group :
They refer to groups of friends, family members,
neighbours, co-workers etc whom we see most often
Social Factor
Secondary Group
They include religious groups, professional groups etc,
which are composed of people whom we see occasionally.
Aspiration group
These are group to which a person would like to join as
member. These groups can be very powerful in
influencing behaviour because the individual will often
adopt the behaviour of the aspirational group in the hopes
of being accepted as a member. 
Social Factors
Just consider Nokia 6230 ad campaign where an young
man with Nokia mobile is shown to be capable to go the
top position in the company, thus instigating you to use the
same model in order to join the same aspirational group.
Dissociative or avoidance groups
These are groups whose value an individual rejects and
the individual does not want to be associated with. 
 In the just given example, the executive may not use
perfume ,watch which are very much teenager-
oriented. 
 Social class
 Social class is relatively a permanent and ordered division in a
society whose members share similar value, interest and
behaviour.
 Social class is not determined by a single factor, such as
income but it is measured as a combination of various factors,
such as income, occupation, education, authority, power,
property, ownership, life styles, 
Personal Factor

Family Life cycle :

 The Bachelor stage :  clothes, music, eating out, holidays, leisure

pursuits and hobbies
 Newly Married Couple: household goods, consumer durables and
appliances.
 Full nest 1: Married couple with a child,
 Ex: Toys, baby food
 Full nest 2 : with children over six,
 Ex: books, Breakfast cereal
 Full nest 3: Family income improves, as the children get older. 
 Ex: car, replacement furniture, some luxury items and
children’s higher education
.
 Empty nest 1 :Children have grown up and left home
 Ex: jewellery, diets, spas, health clubs
 Empty nest 2 :Main bread earner has retired
 Ex: OTC drugs like Crocin, Disprin, Gellusil

 Solitary survivor : If they still are in the workforce, widows

and widowers
 Ex: medicine, pilgimage
 Solitary survivor ( retired) :survivor
 Same general consumption pattern is evident as above,
 Ex:  have special needs for love, affection and security,
Bachelor Stage
Newly Married Couple
Fullnest I
Full nest II
Full nest III
Empty nest I
Empty nest II
Personal Factors
Age:
Age of a person is one of the important personal
factors influencing buyer behaviour.
 People buy different products at their different stages
of cycle according to their taste, preference,
Occupation:
 the buying of a doctor can be easily differentiated
from that of a lawyer, teacher, clerk businessman,
landlord, etc.
Personal factors
 Economic factor:
 Income is an important source of purchasing power. So, buying
pattern of people differs with different levels of income.
 Lifestyle:
 person’s pattern or way of living as expressed in his activity,
interests and opinions .
 Marketing managers have to design different marketing
strategies to suit the life styles of the consumers.
Personality:
How individuals react to external forces
People’s dominant characteristics
Personality traits : aggressive, Practical, imaginative
Type of car, clothes a consumer buys may reflect
one’s personality traits
Self concept:
How consumers perceive themselves
A person who thinks himself a trend setter , would
not buy clothing of contemporary image.
  Psychological factors

The factors influencing consumer behavior, psychological

factors can be divided into four categories:
motivation, perception, learning as well as beliefs and
attitudes.
Motivation :is what will drive consumers to develop a
purchasing behavior
Ex: An athlete drinking Dabur active fruit juice after a
workout
Psychological factor

 Perception:
 Perception is how we see the world around us and how we
organize various stimuli.
 The brands under TATA group is perceived to be high quality
 Learning :
 when we act, we learn. It implies a change in the behavior
resulting from the experience.
 if you are sick after drinking milk, you had a negative
experience,
Psychological Factors
A belief is a conviction that an individual has on
something. Through the experience he acquires, his
learning and his external influences (family, friends,
etc.)
Ex: Consumer may believe Sony’s cyber shot camera
takes best HD videos and easy to use.
an attitude can be defined as a feeling, an assessment of
an object or idea and the predisposition to act in a
certain way toward that object.
Hero Honda launched 100cc scooter Pleasure and
positioned as vehicle for female.
Process of Consumer Buying

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decision

Post Purchase Decision

Need Recognition
Need can be triggered by internal or external
stimuli
Internal stimulus like hunger and thirst
External stimuli like someone motivating you.

Salespeople’s persuasion to a vacuum cleaner

Information Search
Two levels for information search exist
1. Heightened attention where one becomes more
receptive to information.
2. Active information search : browsing online
information, Visiting the store, Calling a friend

3. Personal : Friends, family , neighbour

4. Commercial: Advertising, salesman, packing
5. Public: Mass media
6. Experimental: Handling & Examining the product
 Total Set
IBM Apple Dell HP Toshiba Compaq

Awareness Set
IBM Apple Dell HP

Consideration Set
IBM Dell Apple

Choice Set
IBM Dell

Decision
?
 Evaluation of alternative
The judgments are taken consciously and rationally which is
termed as cognitively oriented.

Ask questions?
1. Are you looking for some specific benefits?
2. Prioritize your benefits which are available
3. What are the attributes that are being looked for?
Purchase
Sub-decisions have to be taken about:-
1. Brand
2. Dealer
3. Quantity
4. Timing
5. Payment Method

Timing and steps in the process depends upon the

product that needs to be purchased.
Post Purchase Behaviour
Performance less than expectation results into
dissatisfaction.

Performance as per the expectation leaves a satisfied

customer.

Performance better than expectation leads to a delighted

consumer.

Point of importance is that it will affect his future decision

making process.
Satisfaction or dissatisfaction may influence a
consumer’s subsequent behaviour.

If its favourable it may lead to a repeat purchase.

If dissatisfied the consumer may stop buying the

product.
Types of Buying Behaviour
Extensive/Complex Decision Making
high involvement,
unfamiliar, expensive and/or infrequently bought
products.
 High degree of economic/ performance/ psychological
risk.
Examples include cars, homes, computers, education.
Information from the companies, friends and relatives,
store personnel etc.
Adequate and accurate information required from
marketers
Dissonance Reducing Buying Behavior
Consumer involvement is very high due to high price
and infrequent purchase
 Insignificant differences among brands.
Ex: Expensive furniture, Jewellery

Maintain communication after sales

Highlight positive information about the product
 Habitual Buying Behavior
consumer involvement is low
no significance difference among brands.
example : lighter or match box, milk, bread. 
 For such brands TV commercials, news papers and
magazines build positive attitude of consumers towards.
Purchases are frequent.
Variety Seeking Buying Behavior

Consumer involvement is very low

significance differences among brands.
brand switching is common.
Attract consumers by offering free samples, low prices
and special discounts.
Brand switching occurs for the sake of variety rather than
dissatisfaction.
example: chips, soaps, ice-cream etc.
Types of Decision Making Process
Extensive Decision Making Process
It is used when the product is a very high
involvement product, possible a high investment
product as well. Typical examples include buying a
house for a consumer, or buying a new
manufacturing plant in case of industries
Limited decision making process 
refers to the next level of decision-making, in
which more thought will go into the purchase
decision than in routine decision-making, but less
than in extensive decision-making.
Ex: when you choose between two shirts at a
department store. 
Routine decision-making
 involves purchases that require very little thought
after the original decision has been made.
Think about putting petrol in your car.
 Each time, with little thought, you will purchase the
same product.
Marketers strive to become 'routine' purchase
decisions for consumers.
Grocery product, Break fast cereal
Quiz link
https://forms.gle/sxB6DJff8BRcPTk3A
Reference
Lamb,C.W; Hair ,J.F;Sharma, D; Mcdaniel
, C,( 2012), MKTG, South Asian perspective, Cengage
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