AN INTRODUCTION TO CONSUMER CHAPTER 1

BEHAVIOR
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 ❖ How many times throughout
the day you make product

POINTS purchase decisions?

❖ How many product
decisions are made every

TO ❖
day, without much thought?
What should I wear? What should I eat?
What am I going to do today?

PONDER ❖ How can simple decisions

be so important? Why do
marketers spend millions of
dollars to uncover the
reasons behind these
decisions?
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HOW DO SUCH SLOGANS IMPACT CONSUMERS?

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WHY ARE SUCH OFFERS GIVEN
TO CONSUMERS??

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 MEANING
✓ 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.
✓ Marketers expect that by understanding
✓ What causes the consumers to buy particular goods and
services, they will be able to determine
✓ Which products are needed in the marketplace,
✓ Which are obsolete, and how best to present the goods to the
consumers.

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NATURE OF CONSUMER BEHAVIOR:
1. Psychological Factor
▪ Based on Cognition, affects and behavior.
▪ Consumers choose businesses and brands based on how they think, feel and reason.
▪ Each Consumer has unique sets of needs
2. Influenced by Various Factors
▪ Marketing (4P), Personal (age, gender, education and income level.), Psychological (buying
motives, perception and attitude), Situational (physical surroundings at the time of purchase, social
surroundings and time factor ), Social (social status, reference groups and family ), Cultural (religion,
social class—caste and subcastes
3. Undergoes a constant change:
▪ The three components of cognition, affect and behavior of individuals alone or in groups keeps on
changing; so does the environment and represent the feature of dynamism.
▪ Cause includes psychological momentum, increase in income level, education level and marketing
factors. NAWARAJ KOIRALA 6
NATURE OF CONSUMER BEHAVIOR:
4. Vary among consumers and products.
▪ All consumers do not behave in the same manner.
▪ Reasons-Nature of the consumers, lifestyle and culture.
5. Vary across region:
▪ The consumer behavior varies across states, regions and countries.
▪ Responsible factors include Upbringing, lifestyles and level of development.
6. Systematic process :
▪ Consumer behavior is a systematic decision-making process.
7. Macro and Micro Perspective
▪ Can be studied on Micro (Individual) and Macro (Group) Level
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NATURE OF CONSUMER BEHAVIOR:
8. It is inter-disciplinary in Nature
▪ It borrows heavily from different disciplines like psychology,
anthropology, social psychology, economics and so on.
9. It is both Science as well as art:
▪ It uses both, theories borrowed from social sciences to understand
consumption behavior.
10. It is descriptive and analytical/ interpretive.
11. Uses both qualitative and quantitative tools to understand and
predict behavior.
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THE EFFECT OF CONSUMER BEHAVIOR IN MARKETING
OF AN ORGANIZATION (APPLICATION)
1. Analyzing market opportunity:
▪ Marketers should scan the trends and conditions operating in the market area, customer’s
lifestyles, income levels and growing influences
▪ This may reveal unsatisfied needs and wants.
▪ For eg: Mosquito repellents have been marketed in response to a genuine and unfulfilled consumer need.

2. Sales Forecasts
▪ Organizations study past consumer behaviors to estimate the expected sales for a
particular market during a specified time period.
3. Use in social and non profits marketing:
▪ Consumer behavior studies are useful to design marketing strategies by social,
governmental and not for profit organizations to make their programs more effective such
as family planning, awareness about CORONA etc. NAWARAJ KOIRALA 10
THE EFFECT OF CONSUMER BEHAVIOR IN MARKETING
OF AN ORGANIZATION (APPLICATION)
4. Selecting Target Market
▪ The scanning and evaluating of market opportunities helps in identifying different consumer segments with
different and exceptional wants and needs.
▪ Identifying these groups, learning how to make buying decisions enables the marketer to design products or
services as per the requirements.
5. Marketing-mix decisions:
▪ Once unsatisfied needs and wants are identified, the marketer has to determine the right mix of product, price,
distribution and promotion. Where too, consumer behavior study is very helpful in finding answers to too many
questions.
▪ The factors of marketing mix decisions are: i) product ii) price iii) promotion iv) distribution
6. Helps in Marketing Research
▪ New-product concept tests, product use tests and brand name recognition test can be successful with the proper
understanding of Consumer Behavior.
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OTHERS APPLICATION INCLUDE
Production Policies

Pricing Policies

Decision Regarding Channel of Distribution

Decision Regarding Sales Promotion

Introduction of New Product

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MARKETING IMPACT ON
CONSUMER
Does marketing imitate life, or vice versa?
Marketing stimuli surround us as advertisements, stores,
and products; These stimuli compete for our attention
and money.
Marketers filter much of what we learn about the world,
whether through the affluence they depict in glamorous
magazines, the roles actors play in commercials, or maybe the
energy drink a rock star just “happens” to hold during a photo
shoot

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MARKETING IMPACT ON CONSUMER
Impact on Culture
▪ Marketers push influence by Setting Popular Culture Phenomenon.
▪ Popular Culture : the music, movies, sports, books, celebrities, and other forms of
entertainment that the mass market produces and consumes.
▪ Marketers play a significant role in our view of the world and how we live in
it. It affects our lives in more far-reaching ways.

Impact on Global Consumer

▪ Sophisticated marketing strategies contribute to a global consumer culture.
▪ Even smaller companies look to expand overseas.
▪ Globalization has resulted in varied perceptions of Consumers (both positive
and negative). E.g. American Product: Levis, iphone NAWARAJ KOIRALA 14
MARKETING IMPACT ON CONSUMER
Impact on Virtual Consumption
▪ The Digital Revolution is one of the most significant influences on consumer
behavior.
▪ Electronic marketing increases convenience by breaking down the barriers of
time and location.
▪ U-commerce: – The use of ubiquitous networks that will slowly but surely become part of us (i.e.,
wearable computers, customized advertisements beamed to cell phones, etc.)
▪ Cyberspace has created a revolution in C2C (consumer-to-consumer) activity.

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WAYS MARKETERS OFTEN USE TO
INFLUENCE CONSUMERS
Never-ending advertising
▪ Marketing campaigns held on a regular basis substantially influence the purchasing behavior of
customers.
▪ They choose one brand over another just because they came across the advertising of the first one
more often.
Emotional engagement
▪ Marketers persuade and create emotional connections with brands and products.
▪ Consumers tie up certain emotion – happiness, comfort, confidence, etc. while making purchase.
Shaping of context
▪ Marketers try to shape the context using various marketing tools and approaches.
▪ Most of the consumers are influenced by this tactics.
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WAYS MARKETERS OFTEN USE TO
INFLUENCE CONSUMERS
Trendsetting
▪ Marketers create tons of content, including viral one which sets consumer trends.
▪ This defines buying behavior because consumers perceive Public image and
credibility as more valuable than the product itself.
Attention management
▪ Marketing redistribute consumers attention from certain trends and products to
other ones.
▪ It tells us what to be focused on and what to discuss today.

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MARKETING
ETHICS AND
PUBLIC Do Marketers Manipulate Consumers?
POLICY Do Marketer give people they want; or
do they tell people what they should
(THE STANDARDS want?
AGAINST WHICH MOST
PEOPLE IN THE CULTURE Who controls the market ; COMPANIES
JUDGE WHAT IS RIGHT or CONSUMERS??
AND WHAT IS WRONG,
GOOD OR BAD.)
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DO MARKETERS MANIPULATE CONSUMERS?
▪ Do marketers create artificial needs?
▪ Need: A basic biological motive ; Want: One way that society has taught us that need can
be satisfied
▪ Marketers try to create awareness about the need that already exists, but don’t create the
need.
▪ For example, thirst is a biological need. Marketers teach us to want Coca-Cola to satisfy that
thirst rather than, say, goat’s milk. Thus, the need is already there; marketers simply recommend
ways to satisfy it
▪ Are advertising and marketing necessary?
▪ Economics of information perspective: Advertising is an important source of consumer
information.
▪ Do marketers promise miracles? Do they let us to believe that product has
magical performance they will transform our lives?
▪ Advertisers simply don’t know enough to manipulate people. 40 to 80% product fail despite
having good effort. CONCLUSION : Company will be successful if it tries to sell good
product and unsuccessful when it sells poor product.
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ASSIGNMENT
Do Marketers Manipulate Consumers? Make a constructive
analysis in favor or against the topic giving reasons from your
stand. If you are in favor, what are the techniques used for
consumer manipulation ?

MAKE DETAIL RESEARCH ON THESE TOPIC AND SUBMIT THE

ASSIGNMENT.
DEADLINE: 8 AM, 12 JUNE 2020
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EVOLUTION OF CONSUMER BEHAVIOR AS A FIELD OF
STUDY AND ITS RELATIONSHIP WITH MARKETING
The discipline finds its roots in the “marketing concept” and has been essentially interdisciplinary
in nature.
As a subject it emerged as a separate field of study in the 1960s.
Initially the focus lay in the marketers’ attempts to study the causes of consumer behavior; the
assumption was that if they could identify the reasons behind consumption behavior, they
would be able to predict it; and if they could predict consumer behavior, they could influence
it. So the emphasis was to predict consumer behavior; the approach came to be known as
‘positivism’.
Gradually, the focus of the study changed; the marketers wanted to understand the customer
better, and this approach came to be known as ‘interpretivism’.

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 CONSUMER BEHAVIOR’S INTERDISCIPLINARY ROOTS
▪ Psychology: This includes the study of the individual as well as the individual
determinants in buying behavior, viz., consumer perception, learning and memory,
attitude, self-concept and personality, motivation and involvement, attitudes and attitudinal
change and, decision making.
▪ Sociology: This includes the study of groups as well as the group dynamics in buying
behavior, viz., family influences, lifestyles and values, and social group influences.
▪ Social psychology: This includes the study of how an individual operates in
group/groups and its effects on buying behavior viz, reference groups and social class
influences.
▪ Anthropology: This is the influence of society on the individual viz., cultural and cross-
cultural issues in buying behavior, national and regional cultures etc.
▪ Economics: This is the study of income and purchasing power, and its impact on consumer
behavior.
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 CONSUMPTION IN ASIA
▪ Asia is different.
▪ Asia’s next-generation consumers are more sophisticated than ever in recent times.
▪ They want localized, unique experiences that make a lasting impression.
▪ They want customized packaging that are more sensorial, designs that suit their tastes and
stimulate their desires.
▪ They want to discover new products and services that they can share on social media. They
expect new experiences
▪ They want fast delivery.
▪ Asian Consumers easily switch to new products
▪ This segment is largest digital market. Digital Adoption is huge.
▪ Asia customers also increasingly want best-in-class services. They want developed market
services, but at emerging market prices.
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