Session 5

Consumer Behavior
Customer Vs Consumer
 Consumer Buyer Behavior
&
Consumer Market

Consumer Buyer Behavior

 The buying behavior of final consumers—individuals and households

who buy goods and services for personal consumption.

Consumer Market

 All the individuals and households who buy goods and services for
personal consumption.
 Model of Consumer Behavior

Marketing and other stimuli Buyer’s Black Box Buyer Responses

Marketing Other
Product Economic Buyer Buyer Product choice
Price Technological Characteristics decision Brand choice
Place Political process Dealer choice
Promotion Cultural Purchase timing
Purchase amount
Story of the Day
Ad- Review: Vital Tea “Apni Tehzeeb Ki Hifazat Karo”
 Synopsis:
one of the top importers and consumers of tea 
when it comes to “Doodh Patti Chae” of local Dhabas which has
now become an identity of the country
breaking clutter through creativity, vital launched the ad to create
differentiation among consumers from other tea brands. 
The overall communication is simple & straightforward while
targetting the changing lifestyle and norms in our society
perfectly

The Verdict: Good Concept and idea but the execution could have
been improved. The message was clear but didn’t create the
“WOW” or “ARREY WAHH” factor on social media
Characteristics/Factors Affecting Consumer
Behavior

Cultural
Social
Personal
Culture
Psychological
Reference groups
Age & Lifecycle
Occupation Motivation
Economic Perception Buyer
Subculture situation Learning
Family
Beliefs &
Lifestyle Attitudes
Personality
Roles and Status And self-concept
Social Class
 High Involvement Low Involvement
Significant differences
between brands

Variety seeking
Complex Buying
Buying
behavior
behavior
between brands
Few differences

Habitual
Dissonance reducing
Buying
Buying behavior
behavior
Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase
Behavior
Session 6

Market Segments, Targets and

Positioning
 Abraham Lincoln

you may please all of the

people some of the time, you
may even please some of the
people all of the time, but
you can’t please all of the
people all of the time.
 Who are the Customers for?
A University
A Gym Membership
A Luxury Sports Car
A Disney Movie
Nail Polish
A Baby Diaper
A Trust Hospital
A Rolex Watch
A 3-D Video Game
An Air Conditioner
Stand up If u belong to;

Ipad
Mountain bike
Sports watch
Pedicure/manicure
Swim club
CUSTOMER DRIVEN MARKETING
STRATEGY :
Market segmentation
Market targeting
Positioning
What is Segmentation
Targeting a group of customers who share a similar set
of needs and wants.

Segmentation is a process of dividing the customer in

different groups according to their similar needs and
wants.
 Market Segmentation
Mass
Market Segment
Marketing
Niche Micro-
marketing The
Individual

nt a t i on S i z e
f Mar ke t S eg me
Continuum o Local Personali
Niche zation
Segmentation markets
Standardize
d Marketing
Mix
Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
Geographic Segmentation
World region or country India, Pakistan Sri Lanka,
Bangladesh, Nepal
Country region: East, west , north, south
City or metro size: tier 1 major cities population more
than 4 million, tier 2: main stream cities (population:
over 1 million)…
Density: urban suburban, exurban, rural
Climate: northern, southern
Demographic Segmentation
Age and life cycle (under 6, 6-11,2-19-20-34)
Life stage: ( young, single, married, no children,
married with children's)
Gender (male, female)
Income (10000 to 30000, 30001 to onward)
Family size: ( 1-2, 3-4, 5+)
Education: ( illiterate, literate but no formal school,
school upto 4 , e.t.c)
Psychographic Segmentation
Personality
Lifestyle : achievers, strivers, survivors
Attitude
 Behavioral Segmentation
Decision Roles Behavioral Variables
Initiator Occasions
Influencer Benefits
Decider Usage Rate
Buyer Buyer-Readiness
User Loyalty Status
User Status
 Loyalty Statuses

Hard-Core Split
Loyal Loyal

Shifting
Switchers
Loyal
 Conversion Model
Low Low Strongly
Convertible
Unavailable
Strength of commitment
Weakly

Balance of Disposition
Shallow
Unavailable

Users

Average Ambivalent
Non Users

Entrenched High High Available

 What is Targeting?
The selection of potential customers to whom
a business wishes to sell products or services.

Targeting Strategy: The targeting strategy involves

segmenting the market, choosing which segments of
the market are appropriate, and determining the
products that will be offered in each segment.
Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
Additional Considerations
Segment by Segment Invasion Plans