CONSUMER BEHAVIOUR

MEANING

A consumer is basically an individual or group

of individuals that consumes or uses the
product for end use purpose or for final
consumption.
 CONSUMER

• An individual who buys products or services

for personal use and not for manufacture or
resale.
• A consumer is someone who can make the
decision whether or not to purchase an item at
the store, and someone who can be influenced
by marketing and advertisements.
 CONSUMER BEHAVIOUR
• “The decision process and physical activity
individuals engage in when evaluating,
acquiring, using or disposing of goods and
services” - Loudon and Della
 CONSUMER BEHAVIOUR

• The study of consumers helps firms and

organizations improve the marketing strategies.
• Consumer behavior involves the study of how
people either individually or in groups acquire,
use, experience, discard, and make decisions
about goods, services, or even lifestyle
practices such as socially responsible and
healthy eating.
 DEFINITION

“Consumerism is a social movement seeking to

augment the rights and powers of the buyers in
relation to sellers.”
– Philip Kotler 
CONSUMER PROTECTION IN ANCIENT
TIMES
• Indian tradition says that consideration for
consumer rights began in the VEDIC
PERIOD, and in the narratives, laws
encourage merchants to practice honesty and
integrity in business.

• Trader who sell inferior goods as a superior

goods will be fined
 DEVELOPMENT OF
COOPERATIVES:
To help the lower- income class from being exploited by the
monopolies and to improve their condition, cooperatives was
started

• First consumer cooperative was started in Great Britain in the year

1844.

• First consumer cooperative store in India came up in Madras in the

year 1904.

cooperatives engaged in educating the consumers about elementary

product and its improvement and promote consumer interest.
 CONSUMER MOVEMENT IN INDIA

• Shortage of consumer products

• Inflation, Adulteration and the Black Market.
• Lack of product choices due to lack of development in technology
• INDIAN INDEPENDENCE MOVEMENT
– Salt March (protest against taxation)
– Khadi Movement ( to promote own textile and create awareness in
consumer purchase decision and object the political control)
 Thrust of consumer movement in India has been on

availability, purity and prices

 Pioneer and few notable leaders
• Ralph Nadar, (US Consumer advocate), is considered
as the father of consumer movement
• Mahatma Gandhi
• Vinoba Bhave
• Jayaprakash Narayan
• V.V. Giri (Former President of India) 
• Lal Bahadur Shastri (former Prime minister)
Business community is expected to regulate itself as an
expression of responsibility to contribute to society
Ralph Nader called Gandhi "the greatest
consumer advocate the world has seen"

• Mahatma Gandhi said, "A consumer is the most

important visitor on our premises. He is not
dependent on us, we are on him. He is not an
interruption to our work; he is the purpose of it. We
are not doing a favour to a consumer by giving him
an opportunity. He is doing us a favour by giving us
opportunity to serve him”.
 OBJECTIVES OF CONSUMER
MOVEMENTS
• To provide opportunity to the consumers to
buy intelligently.
• Recognition of reasonable consumer requests
• Protection against fraud, misrepresentation,
unsanitary & unjust product.
• Participation of consumer representations in
management, of aspect affecting consumers.
• Promoting consumer interest.
 TWO PERSPECTIVES

Consumer Activism Business self-regulation

 CONSUMER ACTIVISM

• It is the range of activities undertaken by

consumers to state their views or make
demands about certain consumer related
issues.
BUSINESS SELF REGULATION

• It is the process where the organization

monitors its own adherence to legal, ethical or
safety standards rather than having a third
party to monitor them or enforce those
standards
Consumerism an umbrella term
 Focus of consumerism

1. Consumer protection.

2. Consumer education.

3. Consumer awareness.

4. Consumer movement.
 RIGHTS OF CONSUMERS

• Right to choose.
• Right to safety.
• Right to be informed.
• Right to be heard.
• Right to redress (complain)
• Right to consumer education.
• Right to Basic needs.
• Right to the healthy and safe environment.
 FEATURES OF CONSUMER
MOVEMENT

• It is a protest movement
• It is a mass movement
• It is a non-official movement
• It is not a government sponsored movement
but it is recognized and backed up by the
government.
Historical development of consumerism

1) In 1958, the Indian standard institute(ISI) organized a

convention at new Delhi . The consumer association of India
was established in 1959.

2) In 1966 , the Consumer Guidance Society of India(CGSI)

was formed in Mumbai with the object to protect consumers
against rising the prices of essential commodities . in the same
year , council for fair business practices was formed by
leading Industrialists like JRD Tata and others.
 Historical development cont..
3) The Indian consumers Union was established in
1971 , the activists of this union include offering legal
advice, testing facilities arranging lectures and
seminars.

4) The Consumer Education And Research Center

(CERC) were formed in 1978 at Ahmadabad to guide
and protect consumer rights.
 Historical development cont..
5) Consumer cooperative societies like- Grahak
panchayat and government employee consumer stores
etc make their purchases directly from producers and
sell them at a reasonable rate to the members.

6) The Saha Kari bazaar in urban areas has made a

great contribution in protecting consumer interest.

7) The newspapers like times of India also contributes

for consumer movement.
Few laws to protect consumer

• The Agriculture Produce Act (1937)

• The drug and cosmetic Act (1940)
• The essential commodities Act(1955)
• The Prevention of Food Adulteration Act
(1959)
• The Consumer Protection Act (1986)
• Monopolistic Restricted Trade Practice Act
(MRTP)
Organization that helps Consumer
Movement
• The Consumer Guidance Society of
India(CGSI) which remains as one of India's
most important consumer organization found
by nine female homemakers
• The most powerful consumer organization in
India is the Consumer Education and Research
Center (CERC), founded in 1978
in Ahmedabad as part of the "social action
litigation movement
• The Assosiation of Consumers (1956)
 Importance of Consumer behaviour

• The first king of Market is Consumer

• A consumer is someone who pays a sum to

consume the goods and services sold by an
organization. The consumer plays a very
important role in the demand and supply chain
of economic system of every nation
Factors affecting Consumer Behaviour

• Culture

• Social Factors

• Personal Factors
• Psychological Fators
 CULTURE

• Culture is a very complex belief of human

behaviour it includes the human society, the
roles that the society plays, the behaviour of
the society, its values customs and traditions.
Culture needs to be examined as it is a very
important factor that influences consumer
behaviour.
 Social Factors

• Reference groups

• Family 

• Role and status

 Personal factors

• Age and life cycle stage

• Occupation

• Financial or economic situations

• Life style
• Self concept and personality
 Psychological factors

• Motivation
• Perception
• Learning and experience
• Attitude and beliefs