Unit 1

Noida Institute of Engineering and Technology, Greater
Noida
Introduction to Consumer Behavior
Unit: 01
Consumer Behavior and Advertising

Management Dr. Ajay Gangele
Assistant Professor
Course Details
(MBA: III Sem)
Dr. Ajay Gangele CB&AM Unit 1 1

03/13/24
Index/Content
S. No. Index
1.
Name of Subject with code, Course and Subject Teacher
2.
Brief Introduction of Faculty member with Photograph
3. Evaluation Scheme
4. Syllabus
5. Branch wise Application
6. Course Objective(s)
7. Course Outcome(s)
8. Program Outcomes (POs)
9. COs and POs Mapping
03/13/24 Dr. Ajay Gangele CB&AM Unit 1 2

Index/Content
S. No. Index
10. Program Specific Outcomes (PSOs)
11. Cos and PSOs Mapping
12. Program Educational Objectives (PEOs)
13. Result Analysis
14. End Semester Question paper Templates
15. Prequisite/Recap
16. Brief Indtroduction about the Subject with Videos
17. Unit Contents
18. Unit Objectives
19. Topic Objectives/Topic Outcome

Index/Content
S. No. Index
20. Lecture related to topic
21. Daily Quiz
22. Weekly Assignment
23. Topic Links
24. MCQs
25. Glossary Questions
26. Old question papers
27. Expected Questions
28. Recap of unit

Faculty Profile
Faculty Name: Dr. Ajay Gangele

Designation: Assistant Professor
Department: MBA
Email ID: ajay.gangele@niet.co.in
Qualification: MBA,UGC NET, PhD
Specialisation: Marketing and HR
Research Area: Marketing
Teaching Area: Marketing and HR
Total Experience: 17 Years

Evaluation Scheme
End
Code Subject Periods Evaluation Scheme Semester Total Credit
No L T P CT T PS Total TE PE
A
1 Core
Strategic Management 3 0 0 30 20 0 50 100 0 150 3
2 Core Corporate Governance, 3 0 0 30 20 0 50 100 0 150 3
Values & Ethics
3 Elective Specialization Group -1
3 1 0 30 20 0 50 100 0 150 4
Elective 1
4 Elective Specialization Group -1 3 1 0 30 20 0 50 100 0 150 4
Elective 2
Elective 3
Elective 1
Elective 2
8 Project Summer Internship Project Report
0 0 4 50 100 150 2
Total 1200 28
Dr. Ajay Gangele CB&AM Unit 1

03/13/24 6
Subject
Subject Syllabus
Syllabus

Subject Syllabus

Subject Syllabus

Branch Wise Applications
 Customer relationship manager
 Marketing Manager
 Advertising Manager
 Sales and marketing

Course Objective
1. To understand consumer behavior and explain the consumer decision

making process
2. To define external and internal influences on buying behavior
3. To provide an understanding of integrated marketing communications
(IMC) and its influences on other marketing functions and other
promotional activities.
4. Help to understand what advertising is and its role in advertising and
brand promotion.
5. Understand the importance of message design and the creativity involved
in message designing.

Course Outcome
CO1. Students will develop an understanding of digital and social media

marketing practices.
CO2. Students will develop understanding of the social media platforms.
CO3. Students will acquire the skill to acquire and engage consumers online.
CO4. Students will develop understanding of building organizational
competency by way of digital marketing practices and cost
considerations.
CO5. Students will develop understanding of the latest digital practices for
marketing and promotion.

Program Outcomes
• Program Outcomes:
• PO1. Apply knowledge of management theories and practices to solve
business problems.
• PO2. Foster Analytical and critical thinking abilities for data-based decision
making.
• PO3. Ability to develop Value based Leadership ability.
• PO4 Ability to understand, analyze and communicate global, economic,
legal, and ethical aspects of business.
• PO5 Ability to lead themselves and others in the achievement of
organizational goals, contributing effectively to a team environment.

CO and PO Mapping
SNO CO P01 P02 P03 P04 P05

1 CO1 M L M H M
2 CO2 L M M M H
3 CO3 M L L H M
4 CO4 L L M M H
5 CO5 L M M H H
Avg 1.4 1.4 1.8 2.6 2.6
H=3,M=2,L=1

Program Educational Objectives
Program Educational Objectives (PEOs)Two-year Full-Time MBA program is

designed to meet the following Program Educational Objectives:
PEO 1:Graduates of the Management program will have conceptual

knowledge, to adapt to the rapidly changing environment, learn new skills and
demonstrate application of management principles in a professional work
setting.
PEO 2:Graduates will apply appropriate tools for decision making required for
solving complex managerial problems in the local or global context.
PEO 3:Graduates of the Management program will exhibit integrity, social

responsibility, and teamwork.
PEO4: Graduates will exhibit ethics, communication skills, leadership qualities
and entrepreneurial mindset using creativity and innovation.

Result Analysis
Subject Total
Name & Code No.
Of Pas 40>65 65>75 75>90 90 & Average
Backlog
Stude s % (%) (%) (%) Above Marks
nts (%)
Consumer 38 35 10 13 12 0 3 45
Behavior and
Advertising
Management

End Semester Question Paper Template



Prerequisite
• Concept of Consumer and customer

• Process of Consumer Buying Behavior
• Basic philosophies of marketing
• Innovation in marketing
03/13/24 Namrata Singh

Dr. AMBMK013
Ajay Gangele CB&AM
CB & Advertising
Unit 1 Unit:01 20
Brief Introduction about the Subject with
videos
• Consumer behavior is the study of how individual customers,
groups or organizations select, buy, use, and dispose ideas, goods,
and services to satisfy their needs and wants.
• It refers to the actions of the consumers in the marketplace and the
underlying motives for those actions.
• The study of consumer behaviour (CB) is very important to the
marketers because it enables them to understand and predict
buying behaviour of consumers in the marketplace
https://www.youtube.com/watch?v=nIQhHEWpdWs
https://www.youtube.com/watch?v=avh2Ppw5wc8
https://www.youtube.com/watch?v=0ay2Qy3wBe8
https://www.youtube.com/watch?v=7-P2_rGFg18
https://www.youtube.com/watch?v=wrtEfxP-8t0

Content
• Concept of Consumer Behavior

• Application of Consumer behavior in Marketing
• Consume Behavior in contemporary environment
• Process of Consumer Buying
• Attribution Theory
• Post Purchase Behavior
• Diffusion of innovation

Unit Objective
• To understand consumer behavior and explain the consumer decision

making process.

Unit to CO Mapping
Topics of Session CO1 CO2 CO3 CO3 CO4 CO5
Unit 1 H M L
Unit 2 H L M
Unit 3 M H L
Unit 4 L H M
Unit 5 M L H

Noida Institute of Engineering and Technology,
Greater Noida
(Unit –I) Topic 1
Intro to consumer behavior

Topic Mapping with Course Outcome
Topics Course Outcome

Nature of Consumer Behavior CO1
Customers Vs. Consumers CO1
Process of Consumer Buying CO1
Diffusion of Innovation CO1
Post Purchase Behavior CO1

Objectives of Topic/Session
• Students will learn about the behavior of consumer in the Indian context.
• Student will learn process of Consumer Buying Behavior
• Students will have better understanding of basic philosophies of
marketing

The term consumer Behavior is defined as the behavior that consumers

display in searching for, purchasing, using, evaluating and disposing of
products and services that they expect will satisfy their needs.

Consumer behavior focuses on how individuals make decisions to spend

their available resources (time, money, effort) on consumption related
items.

Definition of Consumer Behavior
According to Engel, Blackwell, and Mansard,- ‘Consumer behavior is the

actions and decision processes of people who purchase goods and
services for personal consumption’.

Nature of Consumer Behavior
1. Consumer Behavior is a systematic process :

2. Influenced By Various Factors :
3. Different For All Customers :
4. Different For Different Products:
5. Region Bounded :
6. Vital For Marketers :
7. Reflects Status :
8. Spread - Effect :
9. Standard Of Living :

Four Views on Consumer
1. Economic View
2. Cognitive View
3. Passive View
4. Emotional View

Application of Consumer Behavior Knowledge in
Marketing
1. Analyze the environment: New needs, Gadgets, New Products
2. Segmentation, targeting and positioning:
3. Designing the Marketing Strategy:
4. Designing the Marketing Mix:

Recap
1. Definition of Consumer Behavior

2. Application of Consumer Behavior in Marketing.

03/13/24 34
Daily Quiz
1. Define needs, wants and desire.

2. Differentiate Goods and services
3. Explain various types of products.
4. Describe various applications of consumer behaviour.
35
03/13/24 Dr. Ajay Gangele CB&AM Unit 1

Faculty Video Links, YouTube & NPTEL Video
Links and Online Courses Details
https://www.youtube.com/watch?v=SNVZmI99pTM
https://www.youtube.com/watch?v=K3vZXphIXWM

Noida
(Unit –I) Topic 2
Consumer Vs. Customer

Content
1. Contributing Discipline to Consumer Behavior

2. Types of Customers
3. Types of Consumers

Recap
1. Concept of Consumer and customer

2. Definition of Consumer Behavior
3. Application of Consumer Behavior in Marketing.

Topic Objective
Topi Topic Objective

c No.
1 To study difference between consumer and customer
2 To study types of consumer and customers
40

Topic Mapping
S.No Topic Course
. Outcome
1 Customer v/s consumer C01

2 Types of customers and consumers C01
41

Contributing Disciplines to Consumer Behavior
1. Psychology
2. Sociology
3. Social Psychology
4. Anthropology
5. Economics:

Consumer Vs. Customers

Types of Customers
1. Loyal Customer
2. Discount Customers
3. Impulsive Customers
4. Need-Based Customers
5. Wandering Customers

Types of Consumers
1. Commercial Consumer
2. Discretionary Spending Consumers
3. Extroverted Consumer
4. Inferior Goods Consumer

Why Consumers are important?
1. Encourage Demand
2. Create Demand for Various Products
3. increase Demand for Consumer Goods
4. Enhance Service Diversification

Consumer Behavior in the Contemporary
Environment
1. Educated Consumers
2. Luxury Fever
3. Recreational shopping
4. Experimental Spending
5. Online shopping
6. Digital Payment
7. Technological Influences

Recap
1. Contributing discipline to Consumer behavior.

2. Types of Customers.
3. Types of Consumers.

Daily Quiz
1. Explain Consumer Motives.

2. Explain Consumer Involvement.
3. Describe nature of consumer behavior
4. Define Passive view of consumer behavior

Noida
(Unit –I) Topic 3
Process of Consumer Buying

Content
1. Problem Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchased Decision

03/13/24 51
Recap
1. Contributing discipline to Consumer behavior.

2. Types of Customers.
3. Types of Consumers.

03/13/24 52
Topic Objective
Topic Topic Objective

No.
1 To study the Consumer buying behavior process
2 To learn the behavior of consumer.
53

Topic Mapping
S.No Topic Course
. Outcome
1 Process of consumer buying CO1
2 Consumer behaviour in decision making CO1
54

Objectives of Topic/ Session
1. Students will learn the process of consumer buying behavior.

2. Students will learn from various sources of information.
3. Students will understand the factors affecting consumer buying decision.

Buyer Decision Process

Problem Recognition
Marketers need to identify the circumstances that trigger a particular

need.
Internal Stimuli External Stimuli

Information Search
• Initial information search

• Intensive information search
Sources of information
1. Personal sources: Family & friends
2. Commercial Sources: advertising, salesperson
3. Public Sources: Media
4. Experiential Sources: Product users

Evaluation of alternatives
• Consumers can evaluate alternatives based on product

attributes.

Purchase Decision
Purchase Intension
Friends, Family, Reviews, Publications, Perceived Risk
Purchase Decision

Post Purchase Behavior
• Post-purchase behaviors we want: Repeat purchases, Positive reviews,

Customer evangelists
• Post-purchase behaviors we don’t want: Product refunds, Negative
reviews, One-off purchases

Daily Quiz
1. What Are The Buyer Characteristics?

2. What Is The Purchase Decision?
3. Describe Applications of Consumer Behavior Knowledge in Marketing?

Recap
1. Process of Consumer Buying Behavior.

2. Sources of Information.
3. Evaluation of alternatives.

Greater Noida
(Unit –I) Topic 4
Diffusion of Innovation

Content
1. Concept of Diffusion of Innovation.

2. Factors Affecting Diffusion of Innovation.
3. Barriers to Diffusion of Innovation.

Recap
1. Process of Consumer Buying Behavior.

2. Sources of Information.
3. Evaluation of alternatives.

Topic Objective

No.
1 To study the concept of diffusion of innovation.
2 To study the factors affecting diffusion of innovation.
67

Topic Mapping
S.No. Topic Course
Outcome
1 Line and staff aspects of human resource C01
management
2 Human resource manager’s duties. C01
68

Objectives of Topic/ Session
1. Students will understand the concept of diffusion of innovation.

2. Students will learn about the factors affecting diffusion of innovation.
3. Students will understand the barriers to diffusion of innovations.

Diffusion Of Innovation
In a highly competitive environment, where number of players exist and

fight for a share of the market, the introduction of new product and
service offerings becomes crucial for existence and long term survival.

Orientation
1. Firm Oriented
2. Product Oriented
3. Market Oriented

Firm Oriented
1. Consumer Oriented: Any product is regarded as “new”, if the consumer

believes it to be so; it is purely based on the consumers’ perception.

Factors Affecting Diffusion of Innovation
1. Relative Advantage: The relative advantage of the innovative

product/service offering over already existing products/services,
accelerates its rate of adoption by the target market.
2. Compatibility: The compatibility of a product/service measures how
closely it relates to needs, value systems and norms, lifestyles, culture
etc.
3. Complexity:
4. Trialability:

Barriers to Diffusion of Innovation
1. Usage: Consumer finds products incompatible to the existing usage and

consumption behaviors and thus, finds it difficult to accept and use.
2. Value: Consumers may perceive the new product/service offering to be

the same as existing offerings, and “nothing new” or “better in value.
3. Psychological Factors: These factors relate to a person’s background,

attitude and belief, perception, values, lifestyles, culture etc.

Barriers to Diffusion of Innovation
4. Risk: Consumers show reluctance to use an innovative product/service

offering out of fear of taking risks.
 Functional risk (would the product perform as expected),

 Physical risk (would the product usage and or consumption pose a
threat),
 Social risk (would it cause risk of social embarrassment),
 financial risk (would the product will be worth the cost),
 psychological risk (would the innovation hurt consumers’ ego),
 Time risk (would it lead to wastage of time spent while making the
purchase).

Recap
1. Concept of Innovation.
2. Diffusion of Innovation.
3. Barriers to Diffusion of innovation.

Daily Quiz
1. Explain Diffusion Of Innovation

2. Describe Factors Affecting Diffusion of Innovation
3. Explain various Barriers to Diffusion of Innovation

Greater Noida
(Unit –I) Topic 5
Post Purchase Behavior

Content
1. Post Purchase Behavior.

2. Post Purchase Dissonance.
3. Disposition Alternatives.

Recap
1. Concept of Innovation.
2. Diffusion of Innovation.
3. Barriers to Diffusion of innovation.

Topic Objective
No.
1 To study the concept of post purchase behavior.
2 To study the the importance of post purchase behavior to the marketers.
81

Topic Mapping
S.No Topic Course

. Outcome
1 Post purchase behavior. C01
2 Disposition alternatives C01
82

Post Purchase Consumer Behavior
Post-purchase behavior is the final stage in the consumer decision process
when the customer assesses whether he is satisfied or dissatisfied with
a purchase.

Post Purchase Consumer Behavior

Post Purchase Dissonance
Some but not all consumer purchase decisions are followed by

post purchase dissonance.

Determinants of Post Purchase Dissonance
1. The Degree of Commitment or Irrevocability of the decision.

2. The importance of the decision to the consumer.
3. The difficulty of choosing among the alternatives.
4. The Individual’s tendency to experience anxiety.

Product Use and Nonuse
1. Product Use: Functional and Style Features
2. Product Non Use: Product nonuse occurs when a consumer actively acquires a
product that is not used or used only sparingly relatively to its potential use.

Disposition
• Lot of products are disposed everyday.

• Creating packages that utilize a minimal amount of resources is important
for economic reasons as well as being a matter of social responsibility.

Disposition Alternatives

Determinants of Satisfaction & Dissatisfaction
1. Core Service Failure

2. Service Encounter Failure
3. Pricing
4. Inconvenience(Location, Hour)
5. Responses to service Failure
6. Attraction by Competitors
7. Involuntary Switching

Dissatisfaction Responses

Attribution Theory
Attribution theory posits that people naturally attempt to infer causes for
observed behavior and, in a similar fashion, customers naturally make
inferences about firms' behavior (Folkes, 1988;Kelley, 1967).

Attribution Theory

Recap
1. Concept of Post Purchase Behavior.

2. Purchase Dissonance.
3. Determinants of Purchase Dissonance.

Daily Quiz
1. What is post purchase dissonance?

2. Define product disposal .
3. Define product use .
95

Weekly Assignment
Q. Describe the consumer buying process with suitable examples.

Q. Explain the causes of post purchase dissonance.
Q. Identify the barriers to the diffusion of innovation.
Q. Distinguish between consumer and customers.
Q. Describe the application of attribution theory in consumer behavior.
96

Faculty Video Links, YouTube & NPTEL Video Links
and Online Courses Details
1. https://www.youtube.com/watch?v=JFqee_LfqvU
2. https://www.youtube.com/watch?v=9QnfWhtujPA
3. https://www.youtube.com/watch?v=Uw3XiD0uzzM

MCQs
(i) ________ is the tendency to interpret information in a way that will fit our preconceptions.
a. elective retention b. Cognitive dissonance
c. Selective distortion d. Subliminal perception
(ii) At the top of Maslow’s hierarchy of needs is.
esteem b. self-actualization
c. social d. safety
(iii) ________ assumed that the psychological forces shaping people’s behavior are largely
unconscious, and that a person cannot fully understand his or her own motivations.
a. Abraham Maslow b. Frederick Herzberg
c. Sigmund Freud d. Karl Marx
(iv) A ________ when it is aroused to a sufficient level of intensity.
a. need becomes a motive b. motive becomes a need
b. c. desire becomes a reality d. unfulfilled demand becomes a crisis
(v) ________ portrays the “whole person” interacting with his or her environment.
a. Attitude b. Reference group
c. Lifestyle d. Culture

MCQs
(vi) A(n) ________ is a descriptive thought that a person holds about something.
a. Attitude b. belief
c. desire d. feeling
(vii) Brands that meet consumers’ initial buying criteria are called the ________.
a. total set b. awareness set
c. consideration set d. choice set
(viii) The buying process starts when the buyer recognizes a _________.
a. product b. an advertisement for the product
c. salesperson from a previous visit d. problem or need
(ix) A ________ is a strong internal stimulus impelling action.
a. cue b. drive
c. reinforcement d. discrimination
(x) Repeated exposures to information provide greater opportunity for processing and thus the potential
for
a. more profits b. more sales
c. stronger associations d. increased brand personality

Glossary
Money or Status Happy Consumer Evaluation

Development
matrix
 The buying process starts when the buyer recognizes a _____
 If performance meets consumer expectations, the consumer is _________
 CDM stands for ________
 First stage in the basic model of Consumer Decision Making is ______
100

Sessional Question Papers



Old Question Papers

Old
OldQuestion
QuestionPapers
Papers

Old Question Papers
Old Question Papers

Old Question
Old Question Papers
Papers

Old QuestionPapers
Old Question Papers

Expected Questions for University Exam
1. Outline the causes of customer dissatisfaction after buying a product.

2. Explain the attribution theory with suitable examples.
3. Describe the consumer buying process with suitable examples.

Recap
• Concept of Consumer Behavior

• Application of Consumer behavior in Marketing
• Consume Behavior in contemporary environment
• Process of Consumer Buying
• Attribution Theory
• Post Purchase Behavior
• Diffusion of innovation

References

03/13/24 111
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Noida Institute of Engineering and Technology, Greater

Introduction to Consumer Behavior

Consumer Behavior and Advertising

Dr. Ajay Gangele CB&AM Unit 1 1

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 2

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 3

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 4

Faculty Name: Dr. Ajay Gangele

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 5

Dr. Ajay Gangele CB&AM Unit 1

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 7

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 8

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 9

 Customer relationship manager

 Sales and marketing

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 10

1. To understand consumer behavior and explain the consumer decision

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 11

CO1. Students will develop an understanding of digital and social media

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 12

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 13

SNO CO P01 P02 P03 P04 P05

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 14

Program Educational Objectives (PEOs)Two-year Full-Time MBA program is

PEO 1:Graduates of the Management program will have conceptual

PEO 3:Graduates of the Management program will exhibit integrity, social

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 15

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 16

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 17

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 18

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 19

• Concept of Consumer and customer

03/13/24 Namrata Singh

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 21

• Concept of Consumer Behavior

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 22

• To understand consumer behavior and explain the consumer decision

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 23

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 24

(Unit –I) Topic 1

Intro to consumer behavior

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 25

Topics Course Outcome

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 26

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 27

The term consumer Behavior is defined as the behavior that consumers

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 28

Consumer behavior focuses on how individuals make decisions to spend

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 29

According to Engel, Blackwell, and Mansard,- ‘Consumer behavior is the

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 30

1. Consumer Behavior is a systematic process :

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 31

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 32

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 33

1. Definition of Consumer Behavior

Dr. Ajay Gangele CB&AM Unit 1

1. Define needs, wants and desire.

03/13/24 Dr. Ajay Gangele CB&AM Unit 1

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 36

(Unit –I) Topic 2

Consumer Vs. Customer

03/13/24 Dr. Ajay Gangele CB&AM Unit 1 37

1. Contributing Discipline to Consumer Behavior