A2110858465 17438 7 2018 Chapter 6

Copyright © 2015 by McGraw Hill Education (India) Private Limited

Learning Objectives:
1. Describe the new Indian consumer and how this

consumer is shaping the market opportunity
2. Explain myths about the consumer
3. Analyse online buyer behavior
4. Estimate what and why of customer purchase
5. Judge customer decision making
6. Summarise influences on buyer behavior
7. Describe tools to study buyer behavior
Indian Consumer Shaping the Market
Opportunity
1. Liberated (Individuals up to the age of 30 years)
 High self esteem
 Driven by need for self actualization
 Not much concerned about economic security as
provided by their parents, professional education
and increasing economic opportunities
 Believe more in making the statement
 Self confident, assertive, risk taker and often
professionally qualified
 Exhibit high degree of individuality care for the
society
2. Strugglers (Post Independence Era)
 Being part of India change
 A Key participant in this economic change
 Driven by a passion for consumption and possession of
products, services and brands which they have yearned
 Faced with problem of acquiring new skills for the new works
place
3. Freedom Fighters (More than 60 years of age)
 Frugality more important than consumption
 Critical of Conspicuous Consumption
 Expect to be supported by their family in their old age
 For them the social system is disintegrating and individualistic
behavior is emerging
 Not able to cope with change
Myths About the Consumer
1. Consumers are Rational and Think in a Linear
Manner
2. Consumers can Explain their Thought and Behaviour
3. Culture and Society have no Relationship to
Consumers’ Thoughts and Feelings
4. Consumers think in Words
5. Consumer Memories are Sharp
6. Consumers can be Motivated to Believe and
Internalise Messages the Way the Marketer Desires
Buyer – An Enigma
Online Buyer Behaviour
• Growth in the number of internet users in India
• Impact on consumer purchase decision
• 40% of India’s 90 million urban internet users use it for product
research and price comparison
• Digital influence currently affects $30 billion of urban consumer
spending
• Internet users
– Young
– Teenagers
– Men more than women internet users
– Convenience
– Most important motivation
– Implication of the above changes in consumer lifestyles
– Expectations from suppliers have gone up significantly
What does the Customer buy?
a) High Involvement Products
 High Price
 Complex Features
 Large Differences Between Alternatives
 High Perceived Risks
 Reflect Self-concept of Buyer
b) Low Involvement Products
 Does Not Reflect Buyer’s Self-concept
 Alternatives within the Same Product Class are Similar
 Frequent Brand Switching Behaviour
Buying Situations
a. Awareness about competing brands in a
product group
b. Customer has a decision criteria
c. Customer is able to evaluate and decide on
his choice
Buyer Motivations
• Economic Factors
• Psychological Factors
– Motivation
– Learning
– Perception
Learning Theory holds important
insights to Consumers Behaviour
Theory of Cognitive Dissonance – State of mental disturbance arising
out of post purchase or post consumption purchase.
Dissonance gets heightened when:
a. Customer has plenty of choices or alternatives to choose from
b. Each alternative is equally attractive
c. The buying situation is a high priced-high risk situation
d. The customer sees the product as reflecting his or her self-
concept
Perceptions
a. Selective attention
b. Selective distortion
c. Selective retention
Consumer Decision Making
Roles in Consumer Decision Making
• Initiator
• Influencer
• Decider
• Buyer
• User
Market Values Sought by Users
 Universal Value
- Performance
 Personal Values
- Social Value
- Emotional Value
Market Values Sought by Decision
Maker
 Universal Values
- Price
 Personal Values
- Credit and Financing Credit Value
- Financing Value
Market Values Sought by Buyers
 Universal Values
- Service
 Personal Values: Convenience and Personalisation
- Convenience Value
- Personalisation Value
The Consumer Decision-making
Process
Influences on Buyer Behaviour
• Cultural Influences
• Social Influence
Reference group, which implies peers, relatives,
neighbours and friends influences a man’s behavior
• Opinion Leadership
Opinion leadership is the process through which a
person/group influences the actions, views, and
attitudes of others.
• Demographic Influences
Growth of Urbanisation in India
Self Concept
The self image could be an individual’s own perceived image actual
image based on how others perceive the individual
Psychographic Variables
- Lifestyle
Lifestyle refers to the beliefs, attitudes, interests and opinions,
that an individual has about himself, his family and the world.
Personality
Personality refers to psychological characteristics of individuals that
lead them to relatively consistent and enduring responses to their
environment
Tools to Study Buyer Behaviour
• Surveys
• Projective Techniques
• Focus Group Discussions

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Copyright © 2015 by McGraw Hill Education (India) Private Limited

Copyright © 2015 by McGraw Hill Education (India) Private Limited

1. Describe the new Indian consumer and how this

Growth of Urbanisation in India

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