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

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

Learning Objectives:

1.To analyze the new Indian consumer and how this consumer is
shaping the market opportunity
2.To understand the online buying behavior
3.To Judge customer decision making
4.To describe tools to study buyer behavior
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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
 Copyright © 2015 by McGraw Hill Education (India) Private Limited
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
 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
 Copyright © 2015 by McGraw Hill Education (India) Private Limited
• Consumers in __________ are brand conscious because of
the prestige associated with these brands
• A. Impulsive style
• B. Pleasure oriented activity
• C. Quality oriented style
• D. Brand conscious style
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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
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Buyer – An Enigma
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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
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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
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• _____________is displayed by a person while buying milk.
• A. Selective Buying Behaviour
• B. Routinized buying behaviour
• C. Extensive buying behaviour
• D. Credence buying behaviour
 Copyright © 2015 by McGraw Hill Education (India) Private Limited
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
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Buyer Motivations
•Economic Factors
•Psychological Factors
– Motivation
– Learning
– Perception
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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
 Copyright © 2015 by McGraw Hill Education (India) Private Limited
Consumer Decision Making
Roles in Consumer Decision Making
•Initiator
•Influencer
•Decider
•Buyer
•User
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The Consumer Decision-making Process
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Influences on Buyer Behaviour

•Cultural Influences
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• 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.