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Consumer Behaviour Session 1: Rajiv Vohra
Consumer Behaviour Session 1: Rajiv Vohra
SESSION 1
Rajiv Vohra
OBJECTIVE OF THE SESSION
Course Outline
Method of Evaluation
Criteria of Evaluation
Significance of studying Consumer Behaviour
Consumer Behaviour Introduction
Individual Buying Roles
Individual Buying Behaviour
Applications of Consumer Behaviour
Consumer Behaviour Model
Case Study
COURSE OUTLINE
Introduction to Consumer Behaviour
Consumer Decision Making Process
Problem Recognition
Search & Evaluation
Purchasing Process
Post purchase Behaviour
Individual Determinants of Consumer Behaviour
Personality & Self Concept
Motivation & Involvement
Attitudes & Change of Attitude
Environmental Influences on Consumer Behaviour
Culture
Social Class
Social groups
Family
Personal Influences
Modeling & Researching Consumer Behaviour
METHOD OF EVALUATION
from a Store/Company
SIGNIFICANCE OF STUDYING CONSUMER
BEHAVIOUR
Significant role it plays in our life, we spend a lot of time in the market
place to buy products or think/evaluate future buying requirements
Micro Perspective: Important to a firm to accomplish its objective
5% reduction in customer defection increases profit margins between 25%
to 85% depending on the industry
They stay longer with the company, cost less and buy more
Create word of mouth promotion
Offer ideas and suggestions
Pay less attention to competition
Macro Perspective
It affects the growth and outlook of a country.
Consumers have more options to choose from.
Transformation of the market from Sellers’ Market to Buyers’ Markets.
Customer expectations are increasing.
SIGNIFICANCE OF STUDYING
CONSUMER BEHAVIOUR
Is India an opportunity or is it still a backward country?
Is there one India or is it India and Bharat?
What is Rural India?
Who is an Indian Consumer?
Why do you think companies like LG, Samsung, Nokia and Honda
are reaping great results in India where as Coke, Pepsi, Amway and
GE still struggling?
SIGNIFICANCE OF STUDYING
CONSUMER BEHAVIOUR
India is the 8th largest Economy, has over 1.1 Billion people, 40%
population below 21 years but in per capita income ranks 145.
There is no single India, there is Rich India, Educated India, Rural
India, Urban India, Urban & Rural Poor and Self Employed India etc.
Rural India accounts for 50 % GDP and 70% population, almost
50% Rural India is not dependent on Agriculture. Rural India has the
demand for Motor cycles, Mobiles, CD etc. But is still dependent on
Monsoon.
Indian Consumer is Value Conscious, she is not educated but still is
not backward.
Income Ditsribution Urban India
100% 4.7
14.3 9.9
27.9 21.4
80% 28.1
31.7
60% 21.7
34.8 23.4
40% 23.6 16.3
20.3 15
20% 13.7
35.9
9.6 16.7 23.6
0% 7.3
1995-6 2001-2 2005-6 2009-10
100%
20.6
80% 32.5
42.7
57.2
60% 42.5
43.5
40% 39.5
29 23.3
20% 13.7
8.6 10.1 6.5
3.1 4.1 5 8.1
0% 2.1 3.6 5.2
1995-6 2001-2 2005-6 2009-10
Decision Process and the physical activities individual engage in, when
evaluating, using and disposing good or services.
Customers are individuals who purchase/consume the products for
self/household and non business consumption.
Focus of the course would revolve around the final customer.
Though in Industrial buying the motives and influences are completely
different, focus in the course would be the final customer.
INDIVIDUAL BUYER ROLES
Initiator :
Individual who determines that some need/want is not being met and
authorizes a purchase to rectify the situation
Influencer :
Intentional/Unintentional endorser of the idea, influencing the purchase
decision
Buyer :
Individual who actually makes the purchase
User
Individual who consumes or uses the product
Stimulus Response
Variables Variables
Intervening
Variables
External Individual
Marketing Stimuli Other Stimuli Buyer’s Decision
Environment Determinants
Making Process
• Product • Economic • Problem Recognition
• Culture • Personality &
• Price • Technology • Information Search
• Subculture Self Concept
• Promotion • Political • Alternate Evaluation
• Social Class • Attitude
• Place • Cultural • Purchase Decision
• Social • Motivation &
• Situational • Post purchase
Group Involvement
• Personal Behaviour
• Family • Info Processing
Influences
• Learning &
Memory
EXTERNAL VARIABLES
Culture:
The complex whole that includes knowledge, belief, customs and any other
capabilities and habits acquired by a person as a member of the society.
Subculture:
Segments that have values, customs, traditions and other ways of behaviour that
are unique and that distinguish them from others sharing the same cultural
heritage.
Social Class:
Process by which the people in the society rank one another into different social
positions
Social Groups:
Collection of people who have a sense of relatedness resulting from some
interaction with one another.
Family:
Special form of Social Group that is characterized by numerous and strong face to
face interactions among its members
INDIVIDUAL DETERMINANTS
Course Outline
Method of Evaluation
Criteria of Evaluation
Significance of studying Consumer Behaviour
Consumer Behaviour Introduction
Individual Buying Roles
Individual Buying Behaviour
Applications of Consumer Behaviour
THANK YOU