Consumer Behaviour

Dr. Devkant Kala

 Introduction

 Buyer’s Market

 Consumer is the King.

Dr. Devkant Kala, UPES

 Consumer Behaviour: Definition

Consumer Behaviour refers to the buying

behaviour of final consumers - individuals and
households who buy goods and services for
personal consumption.

Consumer Behaviour is the behaviour the

consumers display in searching for, purchasing,
using, evaluating and disposing of products,
services and ideas which they expect will satisfy
their needs.
Dr. Devkant Kala, UPES
 Contd….

Consumer behaviour is the study of: (5W-1H)

 What they are purchasing?
 Why they are purchasing?
 When they are purchasing?
 Where from they are purchasing?
 Who is purchasing?
 How they are purchasing?

Dr. Devkant Kala, UPES

 Why study Consumer Behavior?

 Consumers ‘evolve’ with time, learning,

exposure and experience. They cannot be taken
for granted.

Dr. Devkant Kala, UPES

 Consumer Dynamics

Production/ Market /
Product centric Customer centric

 Hindustan Motors (Ambassador) followed product centric

approach and lost its market share to Maruti which
followed the customer centric approach.

Consumer Dynamics

Dr. Devkant Kala, UPES

 Why Study Consumer Behavior?

 No brand/product can appeal to all people.

Segmentation Targeting Positioning

Firms must examine all of the touch points that

shape how a consumer will respond to their offering.

Dr. Devkant Kala, UPES

 Why Study Consumer Behavior?

 Our guesses about people are inaccurate.

Dr. Devkant Kala, UPES

 Why Study Consumer Behavior?
 Therefore, we must strive to…

Identify customer needs and wants.

Engage in research

Understand how customers will respond to different

messages and environments.
Learn about and apply theories

Anticipate where preferences are headed.

Staying informed
Dr. Devkant Kala, UPES
Consumer Decision Making Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-Purchase Behaviour
Dr. Devkant Kala, UPES
 Need Recognition

Need recognition occurs when the consumer

recognizes a problem or need triggered by:

• Internal stimuli
 Need or Requirement.
 Existing product is not performing well.

• External stimuli
 Advertisement of the new product.
 Notice a new feature in the product.
 Receive a sales call from a sales executives.
Dr. Devkant Kala, UPES
 Information Search

Information search is the amount of information

needed in the buying process and depends on:
• The strength of the drive
• The amount of information consumer start with
• The ease of obtaining the information
• The value placed on the additional information
• The satisfaction from searching.

Dr. Devkant Kala, UPES

 Information Search
Information Types Role of
Source Information
Personal Family, Friends, Legitimize
Neighbours, Acquaintances Evaluate

Commercial Advertising, Salespersons Inform

Websites, Dealers
Packaging, Display

Public Mass Media Inform

Consumer Rating Organizations
Internet Searches

Experiential Personal Handling, Examining and Evaluate

use of Brand
Dr. Devkant Kala, UPES
Evaluation of Alternatives
Evaluation of alternatives is how the
consumer processes information to arrive at
brand choices.

 Evaluative Criteria
 Ways to compare the alternatives

 Determinant Attributes
 Aspects on which the alternatives clearly differ

 Decision Criteria
 Decision rules

Dr. Devkant Kala, UPES

Purchase Decision

The purchase decision is the act by the

consumer to buy the most preferred brand.

 What to purchase.

 Where, when and how to pay.

 Decision is not the same as actual purchase.

Dr. Devkant Kala, UPES

 Post-Purchase Decision
The post-purchase decision is the satisfaction
or dissatisfaction the consumer feels about the
purchase.

Relationship between:
 Consumer’s expectations
 Product’s perceived performance

Expectation = Performance (Satisfaction)

Expectation > Performance (Dissatisfaction)
Expectation < Performance (Delight)
Dr. Devkant Kala, UPES
 Post-Purchase Decision

The larger the gap between expectation and

performance, the greater the consumer’s
dissatisfaction.

Customer satisfaction is a key to building

profitable relationships with consumers - to keeping
and growing consumers and reaping their customer
lifetime value.

Dr. Devkant Kala, UPES

Consumer Decision Making
(Marketer-Side)

Awareness

Interest

Desire

Action
Dr. Devkant Kala, UPES
Thank You.

Dr. Devkant Kala, UPES