L1

INTRODUCTION TO CONSUMER
BEHAVIOR

by
Dr. Virender K. Dahiya
Virender K Dahiya 1
 Facts about Indian Consumers
• Urban population strongly
associated with
westernization.
• Rural population (72%)
• 638596 villages, only
around 100000 have a
population of more than
3500.
• 54% Indians earn less than
Rupees 50 a day.
• There is niche market of
consumers for brands like
Armani and Mercedes.
Virender K Dahiya 2
 Facts about Indian Consumers
• 1.5 crore small retail outlets (Kirana shops)
• Modern retailing in the form of supermarkets
are steadily growing in metros and Tier 2
cities.
• From Price sensitivity based value
expectations to high level of indulgence
showcasing brand symbolism.

Virender K Dahiya 3
 INTRODUCTION
• Consumer and Customer –

Consumer, anyone engaging in evaluating,

acquiring, using and disposing of goods and
services.
Customer, anyone who regularly makes
purchase from a store or a company is termed
as customer of that store or company.

Virender K Dahiya 4
 INTRODUCTION

• Behavior –
Anything which can be observed, or measured
in some way is behavior.
• Consumer Behavior –
Behavior that consumers display in searching
for, purchasing, using, evaluating and
disposing of products and services that they
expect will satisfy their needs.
Virender K Dahiya 5
 INTRODUCTION

• Consumer Behavior focuses on how

individuals make decisions to spend their
available resources (time, money, effort) on
consumption related items. That include –
- What they buy?
- Why they buy it?
- When they buy it?

Virender K Dahiya 6
 INTRODUCTION
- From where they buy it?
- How often they buy it?
- How often they use it?
- How they evaluate it after the purchase?
- Impact of such evaluations on future
purchases.
- How they dispose?

Virender K Dahiya 7
 INTRODUCTION
• Personal Consumer- The individual who buys
goods and services for his or her own use, for
household use, for the use of a family member,
or for a friend.
• Organizational Consumer- A business,
government agency, or other institution (profit
or nonprofit) that buys the goods, services,
and/or equipment necessary for the
organization to function.
Virender K Dahiya 8
Consumer Behavior Is Interdisciplinary
• Psychology
• Sociology
• Social psychology
• Anthropology
• Economics

Virender K Dahiya 9