Module II Consumer Behaviour bKQZ3Txa89

Principles of Marketing | Richa Saxena
Module II
CONSUMER BEHAVIOUR
Control the Scroll
Consumers are taking their screen time more
seriously and being selective with the platforms
they use. But this shouldn’t be mistaken for a
digital detox; consumers aren’t unplugging.
Article 2.1
Rather, making the most of their time online. If
Top Trends 2022 you’ve deleted, unsubscribed or opted out of some
It goes without saying: consumers = complex. apps as of late—or are keeping a closer eye on
how much time you devote to digital activities—
It is difficult to anticipate your customer’s needs then you’re a prime example of this trend.
and deliver innovative solutions to tackle their
pain points. A report prepared by Euromonitor Eco Economic
outlines the top trends likely to shape consumer Eco Economic and Budgeteers are closely related.
behaviour in 2023. The difference: Eco Economic speaks to how a
cost-conscious mind-set could benefit the
Authentic Automation environment. Certain consumers aren’t
Technology is everywhere. It’s embedded into our spending, buying or travelling as much as they
lives—often without us even realising it. From once were. Plus, the cost-of-living crisis also
your lights at home to store checkouts, caused us to look for ways to conserve energy and
automation is all around us. But robots haven’t keep utility fees low. These cutbacks help limit
mastered human nuances just yet. We still want consumption, which means less waste, but also
that personal touch and human connection. draw people towards green alternatives like
Humans and machines need to work in sync. The energy-efficient products, renting or second-hand
customers could feel disconnected from your shopping. Decreased consumption is increasing
brand if it relies too much on tech. sustainability by proxy.
Budgeteers Game On
This trend speaks for itself. In this volatile Gaming hits the mainstream. From mobile
economy, consumers try to stretch their cash and games to e-sports, everyone is getting in on the
get the most for their money. Saving is top of action. Amateur, casual, hardcore and
mind. People must decide between paying more professional players span all ages. These highly
for everyday essentials, trading for lower-cost engaged consumers are captivated when
products or skipping purchases entirely. These immersed in a virtual game. And more brands
shoppers opt for affordable, flexible options and are creating playable ads or products geared
resale or incentives like rewards perks (for towards gaming culture. But this is just the
example, paying with points or exclusive tipping point. Gaming as a form of entertainment
discounts). and revenue stream will only gain traction from
here.
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Here and Now She Rises

Remember our comment about consumer Women are warriors. Consumers are standing up
behaviour being contradictory at times? If in solidarity for female equality. People aren’t
Budgeteers is about saving, “Here and Now” is backing down until there’s a positive change.
about (smart) splurging. Let’s be honest. The past Bottom line: women empowerment cannot be
few years—and counting—have felt like a ignored.
perpetual crisis. We’ve dealt with a pandemic,
The Thrivers
the highest inflation in decades, an economic
It’s no secret: people are overwhelmed and
downturn—the list goes on. And we were forced
exhausted. They want to go about their days
to make substantial sacrifices along the way.
without draining their energy in the process. So,
This year, consumers are permitting themselves
enough really is enough. People are hitting
to live a little. Think affordable luxuries and
indulgences. Even though they are wary of their pause, taking a step back and letting go of
wallets, they will still take the plunge and treat anything outside their control. People are not
themselves. After all, they deserve it. overexerting (hello, quiet quitting). Instead, they
are finding balance (and boundaries), so they can
Revived Routines do and be their best.
Three words: out and about. People want to get
on with their lives—no matter what
Young and Disrupted
uncertainties may be ahead. They are continuing This trend is all about Gen Z. The pandemic
to make up for time spent in pandemic shaped their most formative years. These digital
lockdowns. So, people are trying to get back on natives are on the cusp of financial freedom, and
track and attain a sense of normality. But keep their unconventional upbringing will transform
in mind that everyone is going to have their own business as usual. Millennials were the first
perception of “normal.” Regardless, consumers content creators, but Gen Z will up the stake.
are looking for fun and want to rediscover the Social media serves as a stage to present
world. themselves, a search engine for discovery and a
lucrative career path (Angus & Westbrook, 2023).
Marketing Deals with Maintaining Profitable

Customer Relationships
Changes in environmental factors hugely influence consumers. Hence, all marketing strategies are
designed to keep in mind what the consumers want, when they want, and how they want. The study of
consumer behaviour helps marketers understand different needs and wants and acts as an important
basis for segmentation.
Consumer buyer behaviour is the study of how individuals, groups, and organisations
select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs
and wants.
(Kotler et al., 2022, p. 57)
The study of consumer behaviour is crucial for planning marketing strategy. Not all consumers have the
same approach towards buying. We have already discussed different types and levels of needs. These
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differences result in different buying approaches. For example, in some parts of India, a washing machine
makes milk products like lassi and butter.
The study of consumer behaviour is important as, unlike the traditional marketing approach, modern
marketers focus on the product’s customer perceived value and the need it satisfies (Schiffman et al., 2022).
Marketers, therefore, aim to meet needs and make products around them.
Factors Affecting Consumer Behaviour

Holistic marketing orientation requires a complete understanding of customers – gaining a 3600 view of
their daily lives and changes during their lifetime, so the right products are always marketed to the right
consumers in the right way.
Figure 2. 1 Stimulus-Response Model of Consumer Behaviour
Consumers buying perspective is affected by a variety of factors. Individuals have different incomes,
tastes, preferences, needs, situations, cultures, and beliefs. Thus, marketers must study and identify
factors that constitute and influence buying behaviour as they offer products and services to these
individuals. The starting point for understanding consumer behaviour is the stimulus-response model
shown in Figure 2.1. In this module, we shall cover all important aspects depicted in this model, starting
with consumer characteristics, then consumer psychology, and finally, buying decision process.
A consumer’s buying behaviour is influenced by its characteristics made of cultural, social, and personal
factors.
Consumer Characteristics
Cultural Factors
Culture
Culture is the most basic cause of a person’s wants and behaviour. Culture is the set of basic values,
perceptions, wants, and behaviour from family and other important institutions. These norms and values
are carried forward by generations and are distinctive from one entity to another.
Culture is an outcome of learned norms and beliefs, but it is affected by exposure to the outside world.
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Usually, the impact of culture is so natural and automatic that its influences on behaviour are usually
taken for granted. ING Vasya Bank highlights the culture of “shagun” in India, as shown in Picture 2.1.
Picture 2. 1 The Power of Culture
Culture is learned from our social environment as a set of beliefs. Marketing also influences cultural
learning by providing the audiences with a model behaviour to imitate. The internet and mobile
communication have made culture dynamic and fraternised in today’s world. It is dynamic because others
highly influenced it and fraternised because it is hobnobbing and accommodating—for example - the
adaptation of fast-food culture in India.
To acquire a common culture in a society, its members must communicate through a common language.
Marketers use symbols, rituals, and associated artefacts to communicate effectively with their audiences.
Culture must continuously evolve to function in the best interest of society (Schiffman et al., 2022).
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Marketers must closely attend to cultural values in every country to understand how to best market their
existing products and find opportunities for new products (Kotler et al., 2022, p. 58).
to the existing network of 1500 stores, some of

which will also be selling ethnic wear products.
Article 2.2
Raymond has big plans for
India’s wedding market
The wedding industry remains mostly
unorganised with a handful of men’s wedding
clothing retailers, including Vedant Fashions
with the flagship brand, Manyavar and Aditya
Birla Fashion retail (ABFRL) with its brands
such as Louis Phillipe and Allen Solly, mainly in
the non-ethnic-wear. Vedant Fashions has
revenue around one-sixth of that of Raymond but
commands three times its valuation, while
ABFRL has nearly 30 per cent higher revenues
and is valued at two and a half times Raymond.
The media report stated that Raymond plans to

capture a higher share of India’s wedding Picture 2. 2 Ethnix by Raymond
market by leveraging its brand and distribution According to recent research by brokerage ICICI
network, the media report stated. Direct, the country’s wedding market size for
The report mentioned that it has rolled out November and December was estimated to be
45 ethnic wear stores under the brand Ethnix INR 3.8 lakh crore, of which branded apparel
over the past 18 months. formed INR 50,000 crore. Other major categories
include jewellery at INR 90,000 crore, consumer
The report added that the number of outlets is durables at INR 30,000 crore, and hotels at INR
expected to increase to 80 by the end of FY23 and 7,000 crore (ETBrandEquity, 2023a).
150 by the end of FY24. This will be in addition
Subcultures
Subcultures are groups of people with shared value systems based on common life experiences and
situations. Some of the important bases of subcultures are different nationalities, religions, and locations.
In a country like India, where there are several religions, many products, especially those linked with
religious rituals and festivals, are targeted at these subcultures. For example, the sale during the holy
month of Ramadan, special offers during Diwali, and so on. Geographic regions also give rise to distinctive
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subcultures. Thus, Bengali, Gujarati, and Punjabi people (to name a few) form apparent subcultures in
India. Several products are offered to cater to the needs of individual subcultures.
Rural-urban differences are also immense in India.
Picture 2. 3 Lancome Marketing to Sub Cultures
respond to a digital advertisement in their

language compared to English. Roughly 90% of
video consumption happens in local languages.
Article 2.3
Language-first industry trends
for brands
This internet usage in India is growing for Indic
languages by a CAGR of 18%. This trend is
expected to get more pronounced in the coming
years, based on the increasing availability of
budget-friendly smartphones, cheap mobile data Picture 2. 4 Indic Languages
and growing consumerism in rural areas. As far It’s clear, then, that local languages are a key
as the internet goes, India is morphing into driver of brands’ relevance. Given India’s size and
Bharat, with Indic language users accounting for diversity, targeting the local-language-speaking
nearly 75% of Indian netizens. majority will deepen connections and enable
There are several reasons for brands to focus on brands to roll out campaigns at scale. That’s why,
these trends: 70% find local in marketing terms, the country is usually better
language digital content to be more reliable, and approached as a region with several languages
88% of Indian language users are more likely to
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and unparalleled diversity rather than one The new-age marketing strategy
country as a whole. Given the opportunity, here’s what brands should
focus on while creating a language-first
The rise of the language-first customer
marketing strategy.
So, as more of us go online to buy what we need,
get entertained and maintain social connections, A multilingual platform: Localised platforms
the use of local languages is being amplified. generate greater traction and wider reach. A
Also, rising disposable incomes and access to platform that can be accessed and understood by
technology across India have stripped away the more people will attract local language users.
notion that the ability to speak English is an Advertisers must choose a platform that aligns
indicator of wealth. with the user’s consumption journey and helps
brands engage users better.
This signals marketers to start diversifying their
messages to include regional languages; it’ll be Regional insights to
tough to achieve reach and engagement without personalise communication: Brands must invest
that. in understanding whom they’re speaking to,
what matters to them and how to articulate their
Here are some trends we are witnessing:
value proposition. Capturing such insights will
 A focus on localised content on the back of help brands build relevant messaging around
the localisation of products and services their offerings.
 Users are getting more active, leading to a
Conversations, not monologues: Don’t just talk;
rise of user-generated content among Indian
listen. Digital marketing allows advertisers to
language users
speak to customers and listen to them. The latter
 Voice is becoming the key to creating and
is, arguably, more important for campaign and
consuming regional content. It’s no accident
business success. Many local communities have
that major digital platforms have either
formed and are growing on social platforms,
enabled or are looking to enable voice search
making it even more critical for brands to reach
for Indian languages
out to these users.
 Brands communicating in local languages
tend to achieve greater audience trust Go beyond transliteration and translation: If the
 When brands localise content, customers language marketing strategy is translating or
believe in their commitment towards them. transliterating campaigns, it will not work for
This is vital for business success. It isn’t easy brands. Advertisers have to reach beyond that to
to create genuine connections if brands create campaigns that include local nuance and
aren’t speaking their audience’s language relevance to be impactful. Create an online
 Brands understand that local language experience in users’ native languages.
commitment goes beyond Hindi, with a 500-
It’s no wonder that leading content platforms
million-strong user base. Other Indian
have listed Indian languages at the top of their
languages boast strong user bases, too;
priority list. Global-first digital companies, too,
consider Bengali (over 97 million speakers),
are mirroring an Indic languages-first strategy
Marathi (over 83 million speakers), Telugu
now. Investors see the benefit of the local-
(over 81 million speakers), Tamil (over 69
languages-first approach too. They actively seek
million speakers) and Gujarati (over 55
social media and content apps that share their
million speakers), among others.
philosophy and want to tap into this vast market.
Now that the importance and urgency of the

Indian-language strategy have been established,
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what does success look like? Metrics are a critical sharing will become even more critical in brands’
cog in the marketing wheel. Customer media strategies.
engagement is among the metric mainstays,
Conversion: Brands can measure their
serving as a barometer of how engaged audiences
campaigns’ performance on business KPIs with
are with the brand’s offerings and marketing
lower-funnel metrics such as click-to-visit or app
assets like websites, blogs, support pages and
installs.
discussion forums. While there is no single
accepted measure of success, the following serve New-age social apps offer brands complete
well in the context of localisation: measurability and exposure to a much wider
language-first audience. Companies that focus
Brand awareness: Brand awareness is an
solely on English content in India are missing
excellent indicator of brand success. While Brand
out. The entertainment industry has already
Lift studies can help advertisers understand the
identified this as a big opportunity. According to
impact of their campaigns, on-target reach or
a FICCI-PwC report, the share of regional
OTRs serves as an important base metric for
language consumption on OTT platforms will
potential success. In addition, to reach,
cross 50% of total time spent by 2025 from the
advertisers should also focus on viewability since
30% share it held in 2019. That’s why even large
it helps gauge the real potential impact.
OTT platforms are investing millions in regional
Engagement: Click-through and view-through content.
rates are important metrics for measuring
Brands incorporating local languages into their
resonance with the target audience. A second
marketing strategy will benefit through greater
level metric that brands are increasingly
audience engagement, wider sales and overall
monitoring is the potential virality or
brand affinity (Ajit Varghese, 2022).
incremental reach through shares. Social media
platforms that provide active avenues for content
Social Class
Social Classes are a society’s relatively homogenous and enduring divisions, hieratically ordered and
within members who share similar values, interests, and behaviours. Virtually all human societies exhibit
social stratification in the form of relatively homogenous and enduring divisions in a society. Social class
is determined by occupation, income, education, wealth, and other variables.
Social Factors
Many small groups influence a person’s behaviour.
Reference groups
Reference groups form a comparison or reference in forming
attitudes or behaviour. These are the strong source of
influence in buying behaviour. Groups having direct
influences are called membership groups. Some of these are
primary groups with whom the person interacts fairly,
continuously, and informally, such as family, friends,
neighbours, and co-workers. People also belong to secondary
Picture 2. 5 Airtel focuses on group behaviour
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groups, such as religious, professional, and trade-union groups, which tend to be more formal and require
less continuous interaction.
Reference groups influence members in at least three ways. They expose an individual to new behaviours
and lifestyles, influence attitudes and self-concept, and create pressure for conformity that may affect
product and brand choices.
Membership groups have a direct influence and which a person belongs. For example, a student is a
member of a college, a class, and a club or association that they join.
Aspirational groups are groups to which an individual wish to belong. These are sought for associations.
Dissociative groups are those whose values or behaviour an individual reject. Marketers closely observe
these longings and create products and services to help them achieve those memberships. Many coaching
classes use the aspirations of students who desire to join IIT or IIMs.
Where reference group influence is strong, marketers must determine how to reach and influence the
group’s opinion leaders. An opinion leader is a person who offers informal advice or information about a
specific product or product category, such as which of several brands is best or how a particular product
may be used. These groups may be formal or informal. Opinion leaders are people within a reference group
who exert social influence on others because of special skills, knowledge, personality, or other
characteristics. Internet and social networking sites are online spaces where people socialise or exchange
information and opinions.
Cliques
Cliques are small groups whose members interact frequently. Clique members are similar, and their
closeness facilitates effective communication and insulates the clique from new ideas. According to
bestselling author Malcolm Gladwell, three factors ignite public interest in new ideas, and as per “The
Law of the Few”, three types of people help spread an idea like an epidemic. First are Mavens, people
knowledgeable about big and small things. Second are the Connectors, who know and communicate with
many people. Third are Salesman, who possess natural persuasive power.
Family
Family is the most important consumer buying organisation in society. In a family, buying roles change
with evolving consumer lifestyles. In India, the wife traditionally has been the main purchasing influence
for the family in food, household products, and clothing. But with more and more women holding jobs
outside the home and the willingness of husbands to do more of the family’s purchasing, all this is
changing. These changing trends are even more extreme in the West. Children may also have a strong
influence on family buying decisions.
The socialisation of family members, ranging from young children to adults, is a central family function.
Consumer socialisation in children is defined as how children acquire the skills, knowledge, attitudes, and
experiences necessary to function as a consumer.
The family of orientation consists of parents and siblings affects consumption choices.
The family of procreation is the person’s spouse and children.
Roles and Status

We each participate in many groups—family, clubs, organisations—and these are often an important
source of information and help define norms for behaviour. We can define a person’s position in each group
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regarding role and status. A role consists of the activities a person is expected to perform. Each role, in
turn, connotes a status.
A role consists of the activities a person is expected to perform. People choose products that reflect and
communicate their role and actual or desired societal status. Marketers must be aware of the status-
symbol potential of products and brands.
Buying Roles
Reference groups and family members often influence a buying decision.
People around us assume different roles as the buying process proceeds.
However, one person may assume multiple roles in decision-making.
Also, roles differ in different buying situations. These roles are:
Initiator: The initiator feels the need for the product and starts
discussing the purchase. For example, a teenager may need a two-
wheeler, or a housewife may realise a need for a high-capacity
refrigerator. The need may be initiated from outside sources also. For
instance, neighbours or relatives may suggest a paint change for your
walls. Picture 2. 6 Education Policy
Influencer: The influencer attempts to persuade others in the decision-making process to influence the
outcome. Reference groups’ role models have a strong influence on decision-making. Retailers, at times,
also influence or change the decision.
Decision-maker: The person has the ultimate choice regarding which product to buy. A person may
decide for oneself, or the person paying for the product might decide. Decision-making can also be done
jointly.
Buyer: The buyer conducts the transaction, i.e. makes the payment and takes delivery.
User: The product may be used by an individual or by a group of people.
Personal Factors
Age and Life-Cycle Stage
People change the goods and services they buy over their lifetimes. Our
taste in food, clothes, furniture, and recreation is often related to our age.
Consumption is also shaped by the family life cycle and the number, age,
and gender of people in the household at any time. Also, psychological
life-cycle stages may matter. Adults experience certain passages or
transformations as they go through life.
RBC (Royal Bank of Canada) has identified five life-stage segments:

Youth—younger than 18 years, Getting started—18-35 years, Builders—
35-50 years, Accumulators—50-60 years, Preservers—over 60 years
Marketers are increasingly catering to many alternative, non-traditional Picture 2. 7 Future Planning
stages, such as unmarried couples, singles marrying later in life, childless couples, same-sex couples,
single parents, and others.
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Occupation
A person’s occupation affects the goods and services bought. Students buy more casuals, whereas working
professionals buy formal clothes. Marketers try to identify the occupational groups with an above-average
interest in their products and services and even tailor products for certain occupational groups: Computer
software companies, for example, design different products for brand managers, engineers, lawyers, and
physicians.
Economic Situation
A person’s economic situation will affect product choice. Consumers low on resources will buy a more basic
product. As resources increase, consumers look for value addition and more frills. Both product and brand
choice are greatly affected by economic circumstances like spendable income (level, stability, and pattern
over time), savings and assets (including the liquid percentage), debts, borrowing power, and attitudes
toward spending and saving.
Personality and Self-Concept

Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting
responses to one’s environment. By personality, we mean distinguishing human psychological traits that
lead to relatively consistent and enduring responses to environmental stimuli, including buying behaviour.
We often describe personality in terms of such traits as self-confidence, dominance, autonomy, deference,
sociability, defensiveness, and adaptability.
The basic self-concept premise is that people’s possessions contribute to and reflect their identities; that
is, “we are what we have.” Consumers often choose and use brands with a brand personality consistent
with their actual self-concept (how we view ourselves), though the match may instead be based on the
consumer’s ideal self-concept (how we would like to view ourselves) or even on others’ self-concept (how
we think others see us).
Brands also have personalities, and consumers will likely choose brands that match their own. Brand
Personality is a specific mix of human traits attributed to a particular brand. Jennifer Aaker has
researched brand personalities and identified the following traits:
Figure 2. 2 Aaker’s Brand Personalities
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Enhancing customer control

One way is to allow customers a hand in forming
the product. Consider Threadless, the t-shirt
company. Founded in 2000, the online firm allows
users to submit t-shirt designs and vote on the
Article 2.4
best ones. Threadless prints and sells the
How Your Brand Can Help winners. This model has been extremely
Build Gen Z’s Curated Self successful. By 2006, the company received 150 T-
shirt designs per day and had over 400,000 users
Like every generation of teenagers before them,
voting on shirts. That year, the company sold
Generation Z (or Pivotals) obsesses over their
60,000 t-shirts per month and boasted a profit
appearance and how others see them. But unlike
margin of 35%—much higher than many
older generations, Pivotals are working twice as
traditional clothing retailers.
hard to manage their online personas in addition
to their physical selves. Encouraging “investment of self.”
Businesses should strive to make products
They meticulously curate their personal brand
customisable. When consumers can personalise
through social media to reflect how they want to
products, they buy more and recommend them to
be perceived. Unlike the millennial generation,
friends.
Pivotals only share specific stories, with specific
people, on specific channels. These social Take Coca-Cola’s 2014 “Share a Coke” campaign.
platforms must showcase Pivotals’ unique The company’s total soft drink volume had fallen
personalities and accomplishments, proving for 11 years straight. So Coke decided to sell
different but relatable. They know the right days bottles and cans labelled with hundreds of
and times to post to elicit maximum engagement. common names. And consumers were invited to
Like companies, they aim for virality and a request their own customised cans. Sales turned
consistent online reputation. Pivotals are their around, rising 2.5 per cent in just 12 weeks.
own brand managers, monitoring comments,
Or consider Great Britain’s tourism campaign.
likes, and views to measure brand value and
The nation’s tourist authority, Visit Britain,
success. In fact, their self-esteem depends on
invited Chinese residents to name classic British
these metrics. When it comes to Gen Z’s favourite
landmarks in Chinese. They submitted more
brands, there’s no brand as important as the
than 13,000 names and voted on their favourites.
brand “me.” (Jeff Fromm, 2017)
The seaside resort Blackpool, for example, was
Businesses are constantly vying to capture the named “A place that is happy to visit”, and the
attention of potential customers. It’s not easy to famous shopping street Savile Row was named
do. People are inundated with different brands as “custom-made rich people street.” Then Visit
they stroll through the streets, scan their social Britain used these names on social media and
media newsfeeds, and binge television. A simple websites. The number of Chinese visitors to the
concept can help businesses cut through the United Kingdom increased by 27 per cent.
noise. It’s called psychological ownership. That’s
when consumers feel so invested in a product that Building intimate knowledge
it becomes an extension of themselves. This occurs when customers believe they know
every facet of a product or brand so well that they
Companies must use at least one of three factors have a unique relationship. Think about a friend
to build psychological ownership: control, who claims to have “discovered” a brand because
investment of self, and intimate knowledge. they knew about it before any of their peers. Or
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someone who waits in line for hours for the next they must respect it. Psychological owners can
iPhone because they want to get it first. get defensive about “their” brands, even
territorial.
The dangers of psychological
ownership Tropicana found this in 2009 when it scrapped its
Star Wars fans are notorious for their iconic logo of a simple straw in an orange. The
psychological ownership of a film franchise they redesign turned off a generation of customers
know intimately. A group of these fans even who had grown up with the image and felt
launched a campaign to entirely remake the ownership over the original design. In less than
latest sequel—The Last Jedi—because they two months, Tropicana’s sales plummeted by
disliked what it did with “their” brand. The 20%. Competitors’ sales increased by double-
general resentment towards the film showed at digits. Tropicana soon went back to its original
the box office; the movie’s sales fell about $200 design.
million short of several Wall Street analysts’ Companies legally own their brand, but their
predictions. most devoted customers may own it
As the angry Star Wars fans show, once psychologically. Businesses should cultivate this
companies cultivate psychological ownership, feeling—and then respect it (Colleen P Kirk,
2018).
Lifestyle and value

Lifestyle and values are a person’s living patterns expressed in their psychographics. The AIO statement
determines lifestyles. AIO dimensions are activities (work, hobbies, shopping, sports, social events),
interests (food, fashion, family, recreation), and opinions (about themselves, social issues, business, and
products). People from the same subculture, social class, and occupation may adopt different lifestyles. A
lifestyle is a person’s life pattern expressed in activities, interests, and opinions.
Core values influence consumer decisions, the belief systems that underlie attitudes and behaviours. Core
values go much deeper than behaviour or attitude and, at a basic level, guide people’s choices and desires
over the long term. Marketers who target consumers based on their values believe that with appeals to
people’s inner selves, it is possible to influence their outer selves—their purchase behaviour.
their entertainment experiences with video

streaming, fantasy sports, social media,
ecommerce and more, according to “Reinvent for
growth,” a new report from Accenture.
Accenture surveyed 6,000 consumers, including

more than 500 consumers in India, to understand
their preferences and behaviours regarding their
Article 2.5 online entertainment experiences. Seventy-two
Simplicity in Entertainment per cent of consumers in India said they would
pay for an all-in-one platform for their
Experiences
entertainment services. In addition, five in six (83
More than nine in ten consumers in India (95 per per cent) want the ability to share their
cent) want an all-in-one platform to simplify
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streaming profiles across platforms to allow for Accenture’s report also identifies three emerging
better personalisation of content. roles for entertainment companies that are
competing for consumers’ time, attention and
Saurabh Kumar Sahu, managing director and
money:
lead for communications, media and technology
industry group Accenture in India, said, “With Audience aggregators are platform companies with
growing focus on revenue over content and rising a diversified business model that monetise
customer dissatisfaction with their media attention and engagement directly and indirectly
experiences, the streaming industry is at a by tying multiple entertainment and other
critical stage of evolution. To stay relevant and services together in one place.
profitable in an increasingly competitive media
Audience cultivators will create and efficiently
landscape, streaming service providers need to
monetise entertainment in one or multiple forms
reimagine the entertainment ecosystem keeping
(e.g., video, music, gaming etc.) by knowing their
in mind consumer needs for simplicity,
core audience, focusing on content/cost efficiency,
customisation and affordability.” Other findings
and ensuring that they’re included in audience
from the report further highlight the need for
aggregator platforms and bundles.
media organisations to reconsider their
operational and content strategies: Content merchants will focus on making the best
possible content without needing to monetise the
1. Forty-one per cent of consumers in India
engagement their content achieves.
unsubscribed from at least one of the top
five streaming video-on-demand services “The shifts in consumer preferences and
in the last 12 months, and 42 per cent said behaviour point towards the need for
that they plan to cut one or more in the aggregation. As value becomes the key to success,
next 12 months. media companies must become more customer-
2. More than six in ten consumers (62 per centric using data and analytics. Before the
cent) in India reported frustration at pandemic, star presence was a big draw for video
finding something to watch. streaming content. However, stories, treatment
3. Seventy-seven per cent of consumers in and performances have emerged as real heroes in
India said they are overwhelmed by the the post-pandemic economy. With an evolved
number of streaming services to choose audience, media companies must also invest in
from, with 30 per cent saying it can take better stories and emphasise co-creating stories,”
them more than ten minutes to settle on said Neeraj Sharma, managing director –
a streaming choice (up from 17 per cent communications, media and technology,
last year). Accenture in India (ETBrandEquity, 2023b).
Consumer Psychology / Psychographic Process

As discussed in Figure 2.1, marketing and environmental stimuli enter the consumer’s consciousness, and
a set of psychological processes combine with certain consumer characteristics to result in decision
processes and purchase decisions. The marketer’s task is to understand what happens in the consumer
consciousness between the arrival of the outside marketing stimuli and the ultimate purchase decision.
Six key psychological processes – motivation, perception, Beliefs and attitudes, learning, emotions, and
memory – fundamentally influence consumer response (Kotler & Keller, 2016, p. 173).
14
Motivation
A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. Some
needs are biogenic; they arise from physiological states of tension such as hunger, thirst, or discomfort.
Other needs are psychogenic; they arise from a psychological state of tension, such as the need for
recognition, esteem, or belonging. When aroused to a sufficient level of intensity, a need becomes a motive
to drive to act. Buying motives are rational or utilitarian object approaches and emotional or psychological
ones. Abraham Maslow and Sigmund Freud made important contributions to human psychology and
consumer behaviour.
Maslow’s Theory
Maslow’s theory of the need hierarchy suggests that individuals have
different levels of needs: physiological, social, safety, esteem, and self-
actualisation. Once lower-level needs are satisfied, consumers look for
higher needs. Biogenic needs arise from physiological states of tension, such
as hunger, thirst, or discomfort. Psychogenic needs arise from psychological
states of tension, such as recognition, esteem, or belonging. When aroused
to a sufficient level of intensity, a need becomes a motive to drive us to act.
Marketers target products and services at every level of such need.
Freud’s Theory Picture 2. 8 Biogenic needs
Freudian theory suggests that psychological forces shaping people’s behaviour are largely unconscious and
that a person cannot fully understand their motivations.
Laddering traces a person’s motivations from instrumental to more terminal ones. Motivational
researchers often collect in-depth interviews with a few consumers to uncover deeper motives triggered by
a product. They use projective techniques such as word association tests, sentence completion, picture
interpretation, and role-playing. In the 2011 movie “Zindagi Na Milegi Dobara”, the self-discovery of the
character played by Farhan Akhtar is done through a word association test.
Picture 2. 9 A Still from the Movie
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Perception
In marketing, perceptions are more important than reality because they affect consumers’ behaviour.
Perception is how we select, organise, and interpret information inputs to create a meaningful world
picture.
Sensory Marketing
Sensory marketing engages the consumers’ senses and affects their perception, judgment, and behaviour.
Sensory marketing can be used subconsciously to shape consumer perceptions of more abstract qualities
of a product or service (say, different aspects of its brand personality, such as its sophistication,
ruggedness, warmth, quality, and modernity). Sensory marketing can also affect the perceptions of a
specific product or service attributes, such as its colour, taste, smell, or shape.
Touch is the first sense to develop and the last sense we lose with age. The
sounds that make up a word (such as jingles) can carry meanings, and
ambient music in a store has also been shown to influence consumer mood,
time spent in a location, perception of time spent in a location, and
spending. Humans can distinguish only five pure tastes: sweet, salty,
sour, bitter, and umami. Taste perceptions depend on all the other
senses—how food looks, feels, smells and sounds like eating. Physical
attributes, brand names, product information (ingredients nutritional
information), product packaging, and advertising affect the taste. Many
visual perception biases or illusions exist in day-to-day consumer
behaviour.
People emerge with different perceptions of the same object because of

Picture 2. 10 Sensory Marketing by
three perceptual processes: Volkswagen
Selective Attention
Attention is the allocation of processing capacity to some stimulus. Voluntary attention is purposeful;
involuntary attention is grabbed by someone or something. It is estimated that the average person may
be exposed to more than 1500 ads or brand communications a day. Because we cannot possibly attend to
all these, we screen most stimuli out. People are more likely to notice stimuli related to a current need
which they anticipate. People are more likely to notice stimuli whose deviations are large in relationship
to the normal size of the stimuli.
Selective Distortion
Even noticed stimuli don’t always come across the way the senders intended. Selective distortion is the
tendency to interpret information in a way that fits our preconceptions/prior beliefs and expectations.
Selective distortion can work to the advantage of marketers with strong brands when consumers distort
neutral or ambiguous brand information to make it more positive.
Selective Retention
Most of us don’t remember much of the information we are exposed to, but we retain information that
supports our attitudes and beliefs. Because of selective retention, consumers will likely remember good
points about a product they like and forget good points about competing products. Selective retention again
16
works to the advantage of strong brands. It also explains why marketers need repetition to ensure their
message is not overlooked.
Subliminal Perception
The selective perception mechanisms require active engagement and thought. Subliminal perception is
how marketers embed covert, subliminal messages in ads or packaging. Consumers are not consciously
aware of them, yet they affect behaviour. Although it’s known that mental processes include many, no
evidence supports the notion that marketers can systematically control consumers at a subliminal level.
Learning
Learning induces changes in our behaviour arising from experience. Learning theorists believe learning
is produced through the interplay of drives, stimuli, cues, responses, and reinforcement.
Motivation will be more for need-based products and will vary according to the degree of relevance and
individual goals and involvement. A DRIVE is s strong internal STIMULI impelling action. CUES are
minor stimuli that determine when, where, and how a person responds. RESPONSE is the individual’s
reaction to a drive or cue. Learning can occur even when responses are not explicit. The response may not
be directly related to a particular need and may depend upon previous learning. REINFORCEMENT
increases the likelihood that a response will occur due to a cue, such as learning through positive
reinforcement.
Picture 2. 11 Consumers Generalise the attributes of a brand in different categories
Stimulus Generalisation
Consumers also generalise their response to similar stimuli. Generalisation transfers beliefs to other
products. Consumers will accept the product in a similar product category. For example, Dove shampoo
17
was considered equally chemical-free as Dove soap though the company gave no such argument, as seen
in picture 2.11.
Stimulus Discrimination
Stimulus discrimination means we have learned to recognise differences in sets of similar stimuli and can
adjust our responses accordingly. Picture 2.12 shows L’Oreal’s range of shampoo caters to different hair
types.
Picture 2. 12 Brands use discrimination of needs for market extensions
Learning theory teaches marketers to build demand for a product by associating it with strong drives,
motivating cues, and positive reinforcement.
Beliefs and Attitudes

Beliefs are the buyer’s knowledge, opinion, or faith in a company, product, or country. Product and Brand
Image are based on beliefs. A belief is a descriptive thought that a person holds about something.
Attitudes express inner feelings that reflect whether a person is favourably or unfavourably predisposed
to some object. Objects can be a product or product attributes like product category, websites, brand, ads,
price, medium, product Use, or retailer. Attitude relates to customers’ judgments, feelings, frame of mind
of liking or disliking things, and tendencies. For marketers, responding to the current attitude is easier
than changing the attitude.
Attitudes are learned predispositions. Attitude relevant to purchase behaviour is formed from direct
experience with the product information from others/mass media. Though they are consistent, marketers’
efforts can change them. Attitudes are situational, as specific situations can cause consumers to behave
seemingly inconsistently with their attitudes.
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Expectancy-Value Model or Multi-attribute attitude Model

The expectancy-value or multi-attribute attitude model posits that consumers evaluate products and
services by combining their brand beliefs—the positives and negatives—according to their importance. We
will learn this model through an activity.
Brand A Brand B Brand C

SN Attribute I
BA AA BB AB BC AC
Attitude
Table 2. 1 Multi-attribute attitude or Expectancy-Value Model
Emotions
Consumer response is not all cognitive and rational;
much may be emotional and invoke different feelings. A
brand may make the consumer feel proud, excited, or
confident. An ad may create feelings of amusement,
disgust, or wonder. Marketers recognise the power of
emotional appeals, especially if these are rooted in the
brand’s functional or rational aspects. An emotion-filled
brand story has been shown to trigger’s people desire to
pass along things they hear about brands through
either word of mouth or online sharing.
Picture 2. 13 The Big Idea
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Memory
Cognitive psychologists distinguish between short-term memory (STM)—a temporary and limited
repository of information—and long-term memory (LTM)—a more permanent, essentially unlimited
repository. The most widely accepted views of long-term memory structure assume we form some
associative model. The associative network memory model views LTM as nodes and links. Nodes are stored
information connected by links that vary in strength. Any information can be stored in the memory
network, including verbal, visual, abstract, and contextual. A spreading activation process from node to
node determines how much we retrieve and what information we can recall in any given situation.
Consumer brand knowledge is a node in memory with various linked associations. The strength and
organisation of these associations will be important determinants of the information we can recall about
the brand. Brand associations are all brand-related thoughts, feelings, perceptions, images, experiences,
beliefs, attitudes, and so on that become linked to the brand node.
Memory Processes: Memory encoding describes how and where information gets into memory. The more
attention we pay to the meaning of information during encoding, the stronger the resulting associations
in memory. Memory retrieval is the way information gets out of memory. The presence of other product
information in memory can produce interference effects and cause us to overlook or confuse new data. The
time between exposure to information and encoding has generally produced gradual decay. Information
may be available in memory but not be accessible for recall without the proper retrieval cues or reminders.
uniforms are as diverse as our nation, and the

brand takes a stand to ‘Respect All Uniforms’
that serve us one way or the other, including the
uniforms worn by the brand’s competition.
Article 2.6
When brands come out in flying
tricolours
Picture 2. 14 Salam har vardi ko
As the nation comes together to celebrate the
74th Republic Day of India, brands wear In turn, Zomato deserves a salute for that brave
patriotism to their hearts by showcasing heartfelt effort. With the lyrics, “Mere desh ki vardi
campaigns and advertisements. Will they connect rangeen badi, Sitaare saje hai isme kayi, Rang
with consumers on a deeper level as the alag par jazba vahi, Mehnat ki muskaan vahi,
campaigns evoke feelings of pride and national Farz ki pehchaan vahi, Laaya hoon paigam
identity? Let’s examine how the brands have yahi” the food delivery brand delivers ‘Sabko
combined these sensations to ramp up the Salaam vahi’.
patriotic spirit.
Air-India
The narrative of the film ‘Desh Ka Naam, Har
Zomato
Aasmaan’ by Air India is all about giving wings
Zomato’s video celebrating Republic Day salutes
to dreams through a collective initiative. It is
the uniforms of India. The video highlights that
20
much more than just about flying - it is all about tractor with the traditional practice of breaking
aspirations and dreams and a yearning to fulfil the coconut on the ground.
that dream. Around the theme of patriotism -
Tata tea
cutting across generations, the commercial
This Republic Day, Tata Tea celebrates India
unfolds with a spontaneous appeal to Indians to
with its ‘Desh Ki Jhanki’ initiative.
come together as a team and unfurl the tricolour
to fly high everywhere. Knitting together elements of pride, nostalgia
and technology, the brand showcases the concept
in a pop-up storybook format which captures the
regional motifs of Delhi, Haryana, UP, Punjab,
Bihar, West Bengal, Odisha and Maharashtra.
The film, with its unique marching band-inspired
musical, celebrates the brand’s hyper-local
approach and allows the users to enjoy an
Picture 2. 15 Tiranga Har Asmaan immersive experience through a 360-degree
viewing of 3D Jhankis of moments and events
Mahindra and Mahindra
from the states of India (ETBrandEquity, 2023c).
The commercial by Mahindra & Mahindra’s
Farm Division presents a rendition of the
national anthem with sounds created by tractors,
farm equipment and the fields.
Picture 2. 16 Desh ka Kissan
Dedicated to the farmers who are the direct users

of the company’s products, the campaign opens
with a farmer inaugurating his newly acquired
Picture 2. 17 Desh ki Jhanki
Consumer Buying
The basic psychological processes of motivation, perception, learning, emotions, and memory play an
important role in consumers’ buying decisions. Consumer behaviour questions marketers should ask:
 Who buys our product or service?

 Who decides to buy the product or service?
 Who influences the decision to buy the product or service?
 How is the purchase decision made? Who assumes what role?
 What does the customer buy? What needs must be satisfied? What wants are fulfilled?
 Why do customers buy a particular brand? What benefits do they seek?
21
 Where do they go or look to buy the product or service? Online and/or offline?
 When do they buy? Any seasonality factors? Any time of day/week/month?
 How do customers perceive our product or service?
 What are customers’ attitudes toward our product or service?
 What social factors might influence the purchase decision?
 Do customers’ lifestyles influence their decisions?
 How do personal, demographic, or economic factors influence the purchase decision?
The Consumer Decision-Making Process

So far, we have discussed all the factors mentioned above, along with the psychological
process and their impact on a consumer’s response to a stimulus. All of this is
systematically processed in a step-wise approach. The human mind is often unaware of
this process, which happens automatically and effortlessly. For example, purchase of
routine items, where most of the purchases are pre-determined or in case of impulse
purchases. However, for high-involvement purchases, this process is actively followed.
The consumer decision-making process combines all experiences an

individual comes across in learning, choosing, using and even disposing
of a product.
As a management studies student, knowing the underlying and influencing factors is

important at every stage of this consumer journey. This study is crucial to forming
effective marketing strategies. The buyer decision process consists of five stages:
1. Need recognition,
2. Information search,
3. Evaluation of alternatives,
4. Purchase decision, and
5. Post-purchase behaviour. Figure 2.3 Five
Stage Model
At every stage of this decision-making model, one pre-dominant psychological process goes along.
Motivation is the main psychological force; perception makes consumers consider a few brands and not all
of them at the information search stage. Attitudes and beliefs highly influence the evaluation of
alternatives. Decision rules and post-purchase results in learning dominate purchase decisions. Smart
companies try to understand the customers’ buying process fully. The process starts long before the actual
purchase and has consequences long afterwards. Some consumers passively shop and may be influenced
by unsolicited information they encounter during events. Consumers don’t always pass through all the
stages – they may skip or reverse some. For most impulse purchases, a direct purchase decision is taken.
Also, we directly purchase products where we have a brand choice, skipping information search and
evaluation (Kotler & Keller, 2016).
Stage I: Need / Problem Recognition

The buyer recognises a problem or need. Either internal stimuli or external stimuli can trigger the need.
Internal stimuli are an individual’s own needs. They may arouse due to some problem to which
individuals seek a solution. For example, a hungry person will look for some food. A need may also arise
due to some new events in life, like the first day of school/college, parties, weddings, and festivals.
22
External stimuli are the marketer’s efforts to generate needs for products and services through
advertisements, offers, and discounts. After the need is realised, an individual is driven towards satisfying
that need. This driving force is termed motivation.
Stage II: Information Search

After consumers are motivated to purchase a product, they seek information to satisfy their needs. A mild
search state is called heightened attention, where the consumer becomes more receptive to information
about a product. Active information search includes reading material, calling friends, going online, and
visiting stores to learn about the product.
Consumers can obtain information from several sources.
 Personal sources (family, friends, neighbours, acquaintances)

 Commercial sources (advertising, salespeople, Web sites dealers, packaging, displays)
 Public sources (mass media, consumer-rating organisations, Internet searches)
 Experiential sources (handling, examining, using the product)
The information received is comprehended by individuals following their needs, exposure, and experiences.
How an individual assimilates and understands an individual’s perception influences the information.
The greatest quantity of information is received from commercial sources. The most effective information
often comes from personal or experiential sources or public sources that are independent authorities.
Search Dynamics
The first set of brands in a product category is the total set. The consumers know about the available
brands, known as awareness sets. By gathering information, the consumer learns about competing brands
and their features. Only the consideration set will meet the initial buying criteria. The choice set is formed
as the consumer gathers more information, where the strong contender few brands are there. The
consumer will take the final decision from these. This process of identifying where consumers fall in the
decision-making hierarchy is called market partitioning.
Figure 2. 4 Successive Sets Involved in Consumer Decision Making
Attributes can also be used to segment customers. The consumer may favour a particular attribute and
then list the brands accordingly. Examples of the hierarchy are price-dominant, type-dominant, service-
dominant, and nation-dominant.
23
For online search, the consumer may use filters to search only for the products rated as per the attributes
of their liking.
Stage III: Evaluation of Alternatives

Consumers evaluate the brand based on the individual consumer and the buying situation. In some cases,
consumers use careful calculations and logical thinking. At other times, the same consumers do little or
no evaluating; instead, they buy on impulse and rely on intuition. Most of the purchases are influenced by
consumers’ predispositions about the product. For some brands, consumers have favourable opinions, and
for some, unfavourable.
Nonetheless, the number of brands a consumer is aware of is an awareness set which is made of:
Evoked set – those brands the consumer is willing to consider
Inept set – those brands the consumer finds completely unworthy of further consideration after some
evaluation.
Inert set – those brands of which the consumer is aware but to which they are indifferent
Thus consumer attitudes and beliefs about different products and brands are pre-dominant at this stage.
Strategies to improve attitudes under the Expectancy-Value Model
Redesign/real re-positioning, like re-engineering the product.

 Alter beliefs about the brand/psychological re-positioning.
Green washing is an example of this strategy.
 Alter beliefs about competitors’ brands/competitive de-
positioning. Sebamed’s recent campaign against HUL attempts
to improve/establish brand belief by de-positioning the
competitor.
 Alter the importance of weights. The marketers could try to
persuade them to attach more importance to attributes in which
the brand excels. For example, Ceat Tyres Secura-drive focuses
customers’ attention on safety or Fortune rice bran oil on its
Gamma Oryzanol.
 Call attention to neglected attributes. Airtel’s safe-pay feature
is shown in picture 2.18.
Picture 2. 18 Airtel Safe-pay
 Shift the buyer’s ideal. Educare firms are trying to shift buyers’
ideals and improve their attitudes towards online education.
Picture 2. 19 Altering the Importance Weights
24
Stage IV: Purchase Decision

A consumer may make as many as five sub-decisions:
- Brand decision
- Choice of dealer
- Quantity of the purchase
- Timing of the purchase
- Payment method
Intervening Factors
Attitudes of others can intervene in the purchase process if the other person’s negative attitude toward
our preferred alternative is intense and our motivation to comply with the other person’s wishes is high.
A consumer’s decision to modify, postpone, or avoid a purchase decision is heavily influenced by one or
more types of perceived risk.
Functional risk: The product does not perform to expectations
Physical risk: The product poses a threat to the physical well-being or health of the user or others
Financial risk: The product is not worth the price paid
Social risk: The product results in embarrassment in front of others
Psychological risk: The product affects the mental well-being of the user
Time risk: The failure of the product results in an opportunity cost of finding another satisfactory product
Figure 2. 5 Steps between Evaluation and Purchase
25
Stage V: Post-Purchase Behaviour

Post-purchase satisfaction is a function of the closeness between expectations and the product’s perceived
performance. Some consumers magnify the gap when the product isn’t perfect and are highly dissatisfied;
others minimise it and are less dissatisfied.
A satisfied consumer is likelier to purchase the product again and say good things about the brand to
others.
Dissatisfied consumers may abandon or return the product. They may seek information that confirms
their high value. They may take public action by complaining to the company, going to a lawyer,
complaining directly to other groups (such as business, private, or government agencies) or too many
others online. Private actions include stopping buying the product (exit option) or warning friends (voice
option). Post-purchase communications to buyers have resulted in fewer product returns and order
cancellations.
Marketers should also monitor how buyers use and dispose of the product. Generally, the consumer’s
purchase decision will be to buy the most preferred brand.
Figure 2. 6 How Customers Use or Dispose of Products
Types of Buying Decision Behaviour

The path by which consumer moves through the decision-making stages depends on several factors,
including involvement and the extent of variety seeking. The expectancy-value model assumes a high level
of consumer involvement or engagement and the consumer’s active processing in responding to a
marketing stimulus. Four types of buying behaviours are identified based on variety and involvement
dynamics.
Complex Buying Behaviour

Consumers undertake complex buying behaviour when highly involved in a purchase and perceive
significant differences among brands. Consumers may be highly involved when the product is expensive,
risky, purchased infrequently, and highly self-expressive. Typically, the consumer has much to learn about
the product category.
26
Marketers of high-involvement products must understand the information-gathering and evaluation

behaviour of high-involvement consumers.
Dissonance-Reducing Buying Behaviour

Dissonance-reducing buying behaviour occurs when consumers are highly involved with an expensive,
infrequent, or risky purchase but see little difference among brands. After the purchase, consumers might
experience post-purchase dissonance (after-sale discomfort) when they notice certain disadvantages of the
purchased brand or hear favourable things about brands not purchased.
To counter such dissonance, the marketer’s after-sale communications should provide evidence and
support to help consumers feel good about their brand choices.
Habitual Buying Behaviour

Habitual buying behaviour occurs under low consumer involvement and little significant brand difference.
Consumer behaviour does not pass through the usual belief-attitude-behaviour sequence. Consumers do
not search extensively for brand information, evaluate brand characteristics, and make weighty decisions
about which brands to buy. They passively receive information as they watch television or read magazines.
Because buyers are not highly committed to any brands, marketers of low-involvement products with few
brand differences often use price and sales promotions to stimulate product trials.
Variety-Seeking Buying Behaviour

Consumers undertake variety-seeking buying behaviour in situations with low consumer involvement but
significant perceived brand differences. In such cases, consumers often do a lot of brand switching. The
market leader will encourage buying by dominating the shelf space with various related product versions,
avoiding out-of-stock conditions, and sponsoring frequent reminder advertising. Challenger firms will
encourage variety-seeking by offering lower prices, deals, coupons, free samples, and advertising that tries
to break the consumer’s purchase and consumption cycle and presents reasons for trying something new.
Figure 2. 7 Buying Behaviour Matrix
27
9% at a compound annual rate, driven by new use

cases, ingredient-based solutions and
affordability.
“Post Covid, this space has become even more

Article 2.7 attractive for a vast variety of organised (and
Men’s Beauty Product even unorganised) brands,” he said. “What we’re
beginning to observe first-hand is that the major
One in five beauty and personal care products
delta lies in the long-term, strategic view of the
launched in India in the five years through July
category and being aggressive in spaces where
2022 was targeted at men — the biggest share for
there is a clear right to win,” Gupta added.
the category in the Asia-Pacific markets, show
newly released data from global consumer Executives said self-consciousness among men
research firm Mintel. both in metros and smaller cities and platforms
like D2C, social commerce and quick commerce
According to a Mintel report, India, with 20% of
are fuelling growth. Nitin Passi, managing
the beauty products launched meant for men’s
director of Lotus Herbals, said the cosmetics and
facial care, was ahead of China (15%) and Japan
beauty products maker 2019 launched facials
(10%). These range from moisturisers and
called ProMen, for men. “They have exceeded
fairness creams to at-home spa treatment
targets,” he said. No longer hesitant to visit
products, beard softeners and hair-removal
salons, social media and a selfie culture are
creams. Though the Indian market is smaller
contributing hugely to driving sales, executives
compared to China and Japan for these products,
said.
it is growing much faster, with the Indian male
grooming category valued at more than ₹10,000 Sukhleen Aneja, chief executive at Good Brands
crores. Co of the Good Glamm Group, said its direct-to-
consumer brands, St Botanica and Organic
Deepak Gupta, cofounder and chief operating
Harvest, have a significant number of male
officer at Bombay Shaving Company, said the
consumers (Ratna Bhushan, 2023).
male grooming category is growing upwards of 8-
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Practice Questions from Term-End Exam

Q1 Explain the stages of the consumer buying decision process and describe how you and 10
your family went through this process to make a recent purchase. (2015).
Q2 This should come as no surprise. Baba Ramdev, who first made a name for himself by
contorting his body in seemingly impossible ways, is turning the FMCG business on its
head. To begin with, he says he is not doing vyapaar (trade); he is doing upkar (an act of
benevolence). For proof of upkar, he offers natural goodness of his products and their
lower prices. For products such as Aloe Vera juices, he claims to charge a seventh of what
other companies do. That appears too little an explanation for the rise of Patanjali, which
is tipped by brokerage houses to pose the biggest challenge to Colgate, a multinational
giant, and clock Rs 20,000 crore in turnover in five years.
29
That, as much as its high-revenue upkar, makes Patanjali a thing of wonder, which only
gets accentuated by its methods. Its market surveys consist of Ramdev’s yoga sessions,
tours, and interactions with fans. For instance, when his fans asked for a beauty product,
Patanjali launched the Aleo Vera gel.
Ramdev’s inputs are not limited to product concepts. He made it a point to fill his purchase
department with ascetics because he thinks they are too honest to steal. All of Patanjali’s
branding is about and around Ramdev. His photos in various aasanas dominate its labels.
The packaging does not look chic but, strangely, seems to convince the buyers of the
product’s goodness. For instance, Patanjali’s honey does not have certification from the
Food Safety and Standard Authority of India (FSSAI), but it is enough for the buyers to
see a tiny hologram showing Ramdev in padmasana. (2016)
(a) What are the cultural and personal factors that affect consumer behaviour for Patanjali? 7
Explain with justification.
(b) Explain the psychological process of motivation, perception, attitudes and learning 8
associated with the purchase of Patanjali products.
Q3 Peter wants to paint his house for his son’s birthday celebrations. He browsed through
one of the company catalogues and chose a colour which he liked as it was bright and
vibrant. However, when painted on the walls, the colour becomes very dull, making Peter
regret his decision. Though he convinces himself as the paints are of good quality. (2017)
(a) Explain the psychological factors affecting the buyer’s decision. 5
(b) Explain the type of buying behaviour displayed by Peter. 5
Q4 (2018)
(a) Compare Habitual Buying and Variety Seeking Buying behaviours. Use suitable 4
examples to illustrate differences.
(b) Meera, a homemaker, has been worried about her father, Krishna Kant (aged around 70), 6
who is frequently having health issues. So she discussed with her husband, Vineet, about
getting a health insurance policy for Krishna Kant. They both agreed it was a necessity,
but neither knew which policy offered the best benefits for senior citizens. Meera asked
her daughter Nidhi to seal.ch about various insurance policies online. Nidhi promptly
compared various policies meant for senior citizens and gave those details to her parents.
Vineet looked through all details and decided that the ‘Senior Care’ policy from Star
Health would be the best policy. He asked Meera to call up the Star Health office and do
the necessary paperwork to buy a new policy.
(i) Identify various buying roles involved in this scenario. (3)

(ii) Explain how such an understanding about buying roles could be useful for a health
3 insurance company. (3)
Q5 After creating ripples in the FMCG category, Patanjali Ayurved, promoted by spiritual
leader Baba Ramdev turned its focus on fashion with the launch of Patanjali Paridhan.
Its maiden apparel store in New Delhi houses three sub-brands - a menswear brand
Sanskar, a womenswear brand Aastha and a unisex sportswear brand Livfit. Much like
its other product offerings, Patanjali is riding on lndianness for its foray into fashion, too.
30
A recently launched ad campaign for its fashion range, Patanjali Paridhan, aimed at
creating a `movement’ towards embracing swadeshi fashion. (2019)
(a) What consumer behaviour related factors are likely to influence Indian consumers in 4
favour of Patanjali Paridhan? Justify your answer.
(b) What type of buying behaviour is mostly displayed for the purchase of apparel? Give 3
reasons.
(c) Discuss the role of attitudes and beliefs in buying behaviour for Patanjali Paridhan. 3
Q6 Compare and contrast buying decision-making process for Convenience goods and
Shopping goods. (2019)
Q7 Rahul has been experiencing problems with his phone. It is already a couple of years old
and is now slow and freezes often. He is considering replacing the phone. (2021)
(a) What is the reason for Rahul to realise the need for a new phone (Select the right option) 1
(i) New needs

(ii) Market-induced needs
(iii) Dissatisfaction with the current product
(iv) New innovations
(b) Discuss the six types of risks Rahul may perceive with the purchase of a new phone. 6
(c) The brands that Rahul is indifferent to form his inept set. 1
(i) True
(ii) False
(d) The consumer buying behaviour, in this case, will be________________buying behaviour. 1
(e) Samsung Galaxy M series offers four variants of smartphones within a range of Rs5000 1
to Rs 10000. Which type of learning Samsung is using here? (Select the right option)
(i) Stimulus generalisation

(ii) Stimulus discrimination
(iii) Classical conditioning
(iv) Reinforcement
Q8 Dunkin Brands has become synonymous with breakfast pretty much everywhere, with
more than 12,600 restaurants in 46 countries. Dunkin’ has seen steady revenue growth
in the United States over the last few years. However, the chain is struggling in India.
Despite efforts to cater the menu to Indian tastebuds, Dunkin Donuts has closed more
than half of its stores in the last two years in India. As per their marketing team, they
are struggling in understanding the Indian consumer market and its environment. (2021)
(a) Explain the role of cultural factors and their influence on consumer behaviour for Dunkin 3
Donuts.
(b) The consumers who are aware of Dunkin Donuts but are indifferent towards it, the brand 1
will be a part of their ________________ awareness set. (Select the correct option)
31
A) Inert
B) Inept
C) Evoked
D) None of the options
(c) If Dunkin Donuts start a campaign “sweets make you happy,” they are using a real re- 1
positioning strategy to improve their brand attitude. (Select the correct option)
A) True
B) False
Q9 Epigamia is a brand that offers different flavours of Greek Yoghurt. The brand was
introduced in 2015 by Mumbai-based company Drums Foods. Currently, it is available
only in 4 cities (Delhi, Mumbai, Chennai, and Bangalore). Greek Yoghurt as a product is
new for most Indians. It is different from normal yogurt and contains higher levels of
protein and lower levels of fat. It can be used as a snack, added to fruit salads, and in
recipes for smoothies. It is priced almost 80% higher than normal yoghurts. During the
recent lockdown, Epigamia successfully addressed the distribution system and process
from the farm to the fork and worked on their natural and healthy yoghurts’ positioning.
Their primary point of differentiation has been around ordering, payment, and delivery
services and secondarily caring for consumer health. The company recently launched the
digital campaign #YourHappyBalance with Deepika Padukone as their brand
ambassador, who also have a stake in the company. (2021)
(a) The use of a celebrity in advertising reduces which consumer perceived risk? (Select the 1
correct option)
(i) Social risk

(ii) Functional risk
(iii) Time risk
(iv) Economic risk
Q10 Netflix Inc.’s mobile pricing strategy in India helped the U.S. streaming giant further
penetrate an overpopulated, over-the-top market- as per analysts. Its exclusive Madefor-
India, Rs. 199 per month mobile plan is the cheapest plan available worldwide to fatten
its subscriber base. The pricing strategy with a mix of the right content gives tough
competition to the local players. Meanwhile, Amazon prime, the other international over-
the-top (OTT) player, is available for Rs. 129 per month with a host of other goodies like
free, faster delivery on Amazon, and ad-free music. Recently, Netflix offered two days of
free streaming for Indian users. The two-day event called Netflix Streamfest let any non-
subscriber browse the app’s content for free. The promotional offer allowed users to watch
the entire Netflix catalog, including movies, shows, documentaries, and more. However,
the streaming quality would be Standard Definition (S.D.). Currently, Netflix is one of the
most popular streaming apps in India. Netflix competes with Amazon Prime, Disney+
Hotstar, Zee5, Alt Balaji, Voot, and more in India. (2021)
Which type of buying behaviour is suitable for OTT subscriptions? Justify your answer. 2
32
Q11 Beauty and personal care brands born on the internet are rapidly setting up retail stores
and selling through supermarkets and neighbourhood shops as they sense the vast
potential of the offline sales channel. Early movers are direct-to-consumer (D2C) brands
such as Nykaa, Plum, mCaffeine, Mother Sparsh, MyGlamm and The Man Company.
Online-first brand mCaffeine began physical sales in August 2022 after offline retailers
and distributors asked for its products. The company plans to get its products to 1,000
stores and eventually scale it to over 10,000 outlets. According to V.S. Kannan Sitaram,
venture partner at Fireside Ventures, consumers in these categories want to touch and
feel the product and check out the packaging. “So, D2C brands want to create the brand
experience for their consumers,” he said. Darpan Sanghvi, the CEO of Good Glamm
Group, agreed: “Consumer perception of a brand available in physical stores is elevated
and significantly disproportionate to revenues generated by offline. Besides, when you
want to advertise on TV—which is still an important medium to build a brand—it directly
impacts sales in physical stores where you should be present,” he said. Online-first has
helped understand the customer well, get the product-market fit, and build the brand
online using social media, said Hitesh Dhingra, director and founder of The Man
Company. “But now, to scale, you need to start exploring offline,” he said. Dhingra said
that the brand, backed by FMCG company Emami Ltd, plans to “actively” go to general
trade in the next fiscal. mCaffeine’s Sharma said brands need to be present where the
consumer is. (2022)
Discuss the buying decision-making process for beauty and personal care products. Also, 10
indicate the psychological process pre-dominant at each stage of the process.
Q12 When it comes to a family vehicle, the Indian family has clearly decided that bigger is
better. The market for seven-seater passenger cars, once restricted to top-end models and
the sub -₹10 lakh segment, is seeing interest across the price spectrum. The market for
seven-seaters accounts for 10-12 % of the total passenger vehicle market. Most of the
offerings – multipurpose vehicles (MPVs) and utility vehicles (UVs) such as the Suzuki
Ertiga and Mahindra Bolero — were restricted to the lower-end or premium-end, with
Toyota Innova Crysta. But of late, volume segment sport utility vehicles (SUVs) have
offered two extra seats on a longer wheelbase, focusing on large families’ consumer
segment. “This lifestyle vehicle is increasingly becoming popular for its multiusage
options,” said Shashank Srivastava, senior ED at Maruti Suzuki. Launches in this
category include the Kia Carens, Jeep Meridian, Hyundai Stargazer, Mahindra Scorpio
and Skoda Kodiaq. Most are priced in the ₹15-22 lakh range, as have been the recent high-
profile launches of the Mahindra XUV700, Tata Safari and Hyundai Alcazar. (2022)
(a) Discuss the consumer characteristics impacting the buying behaviour for seven-seater 5
passenger cars.
(b) Extend the Multi-Attribute Attitude Model (Expectancy Value Model) to calculate 5
attitudes for competing brands in the seven-seater category.
Q13 Write short notes on Buying roles (2016) 5
33
Contents
Article 2.1 ......................................................................................................................................................... 1
Top Trends 2022 .......................................................................................................................................... 1
Marketing Deals with Maintaining Profitable Customer Relationships........................................................ 2
Factors Affecting Consumer Behaviour ............................................................................................................ 3
Cultural Factors .............................................................................................................................................. 3
Culture ......................................................................................................................................................... 3
Article 2.2 ......................................................................................................................................................... 5
Raymond has big plans for India’s wedding market ................................................................................. 5
Subcultures .................................................................................................................................................. 5
Article 2.3 ......................................................................................................................................................... 6
Language-first industry trends for brands ................................................................................................ 6
Social Class .................................................................................................................................................. 8
Social Factors .................................................................................................................................................. 8
Reference groups.......................................................................................................................................... 8
Cliques .......................................................................................................................................................... 9
Family........................................................................................................................................................... 9
Roles and Status .......................................................................................................................................... 9
Personal Factors ............................................................................................................................................ 10
Age and Life-Cycle Stage .......................................................................................................................... 10
Occupation.................................................................................................................................................. 11
Economic Situation .................................................................................................................................... 11
Personality and Self-Concept.................................................................................................................... 11
Article 2.4 ....................................................................................................................................................... 12
How Your Brand Can Help Build Gen Z’s Curated Self ......................................................................... 12
Lifestyle and value .................................................................................................................................... 13
Article 2.5 ....................................................................................................................................................... 13
Simplicity in Entertainment Experiences ............................................................................................... 13
Psychographic Process ...................................................................................................................................... 14
Motivation ...................................................................................................................................................... 15
Maslow’s Theory ........................................................................................................................................ 15
Freud’s Theory ........................................................................................................................................... 15
Perception ...................................................................................................................................................... 16
Sensory Marketing .................................................................................................................................... 16
Selective Attention .................................................................................................................................... 16
34
Selective Distortion ................................................................................................................................... 16

Selective Retention .................................................................................................................................... 16
Subliminal Perception ............................................................................................................................... 17
Learning ......................................................................................................................................................... 17
Stimulus Generalisation ........................................................................................................................... 17
Stimulus Discrimination ........................................................................................................................... 18
Beliefs and Attitudes .................................................................................................................................... 18
Expectancy-Value Model or Multi-attribute attitude Model .................................................................. 19
Emotions ........................................................................................................................................................ 19
Memory .......................................................................................................................................................... 20
Article 2.6 ....................................................................................................................................................... 20
When brands come out in flying tricolours .............................................................................................. 20
Consumer Buying ............................................................................................................................................. 21
The Consumer Decision-Making Process .................................................................................................... 22
Stage I: Need / Problem Recognition ........................................................................................................ 22
Stage II: Information Search .................................................................................................................... 23
Stage III: Evaluation of Alternatives ....................................................................................................... 24
Stage IV: Purchase Decision ..................................................................................................................... 25
Stage V: Post-Purchase Behaviour........................................................................................................... 26
Types of Buying Decision Behaviour ............................................................................................................... 26
Complex Buying Behaviour ...................................................................................................................... 26
Dissonance-Reducing Buying Behaviour ................................................................................................. 27
Habitual Buying Behaviour ...................................................................................................................... 27
Variety-Seeking Buying Behaviour.......................................................................................................... 27
Article 2.7 ....................................................................................................................................................... 28
Men’s Beauty Product ............................................................................................................................... 28
References.......................................................................................................................................................... 28
Practice Questions from Term-End Exam ...................................................................................................... 29
35

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Principles of Marketing | Richa Saxena

Here and Now She Rises

Marketing Deals with Maintaining Profitable

(Kotler et al., 2022, p. 57)

Factors Affecting Consumer Behaviour

Figure 2. 1 Stimulus-Response Model of Consumer Behaviour

Picture 2. 1 The Power of Culture

to the existing network of 1500 stores, some of

The media report stated that Raymond plans to

Rural-urban differences are also immense in India.

Picture 2. 3 Lancome Marketing to Sub Cultures

respond to a digital advertisement in their

Now that the importance and urgency of the

The family of procreation is the person’s spouse and children.

Roles and Status

User: The product may be used by an individual or by a group of people.

RBC (Royal Bank of Canada) has identified five life-stage segments:

Personality and Self-Concept

Figure 2. 2 Aaker’s Brand Personalities

Enhancing customer control

Lifestyle and value

their entertainment experiences with video

Accenture surveyed 6,000 consumers, including

Consumer Psychology / Psychographic Process

Freud’s Theory Picture 2. 8 Biogenic needs

Picture 2. 9 A Still from the Movie

People emerge with different perceptions of the same object because of

Picture 2. 11 Consumers Generalise the attributes of a brand in different categories

Picture 2. 12 Brands use discrimination of needs for market extensions

Beliefs and Attitudes

Expectancy-Value Model or Multi-attribute attitude Model

Brand A Brand B Brand C

Picture 2. 13 The Big Idea

uniforms are as diverse as our nation, and the

Picture 2. 16 Desh ka Kissan

Dedicated to the farmers who are the direct users

 Who buys our product or service?

The Consumer Decision-Making Process

The consumer decision-making process combines all experiences an

As a management studies student, knowing the underlying and influencing factors is

Stage I: Need / Problem Recognition

Stage II: Information Search

Consumers can obtain information from several sources.

 Personal sources (family, friends, neighbours, acquaintances)

Figure 2. 4 Successive Sets Involved in Consumer Decision Making

Stage III: Evaluation of Alternatives

Evoked set – those brands the consumer is willing to consider

Redesign/real re-positioning, like re-engineering the product.

Picture 2. 19 Altering the Importance Weights

Stage IV: Purchase Decision

Functional risk: The product does not perform to expectations

Financial risk: The product is not worth the price paid

Social risk: The product results in embarrassment in front of others

Figure 2. 5 Steps between Evaluation and Purchase

Stage V: Post-Purchase Behaviour

Figure 2. 6 How Customers Use or Dispose of Products

Types of Buying Decision Behaviour

Complex Buying Behaviour

Marketers of high-involvement products must understand the information-gathering and evaluation

Dissonance-Reducing Buying Behaviour

Habitual Buying Behaviour

Variety-Seeking Buying Behaviour

Figure 2. 7 Buying Behaviour Matrix