Consumer Behaviour
Dr. Devkant Kala
Introduction
Buyer’s Market
Consumer is the King.
Dr. Devkant Kala, UPES
Consumer Behaviour: Definition
Consumer Behaviour refers to the buying
behaviour of final consumers - individuals and
households who buy goods and services for
personal consumption.
Consumer Behaviour is the behaviour the
consumers display in searching for, purchasing,
using, evaluating and disposing of products,
services and ideas which they expect will satisfy
their needs.
Dr. Devkant Kala, UPES
Contd….
Consumer behaviour is the study of: (5W-1H)
What they are purchasing?
Why they are purchasing?
When they are purchasing?
Where from they are purchasing?
Who is purchasing?
How they are purchasing?
Dr. Devkant Kala, UPES
Why study Consumer Behavior?
Consumers ‘evolve’ with time, learning,
exposure and experience. They cannot be taken
for granted.
Dr. Devkant Kala, UPES
Consumer Dynamics
Production/ Market /
Product centric Customer centric
Hindustan Motors (Ambassador) followed product centric
approach and lost its market share to Maruti which
followed the customer centric approach.
Consumer Dynamics
Dr. Devkant Kala, UPES
Why Study Consumer Behavior?
No brand/product can appeal to all people.
Segmentation Targeting Positioning
Firms must examine all of the touch points that
shape how a consumer will respond to their offering.
Dr. Devkant Kala, UPES
Why Study Consumer Behavior?
Our guesses about people are inaccurate.
Dr. Devkant Kala, UPES
Why Study Consumer Behavior?
Therefore, we must strive to…
Identify customer needs and wants.
Engage in research
Understand how customers will respond to different
messages and environments.
Learn about and apply theories
Anticipate where preferences are headed.
Staying informed
Dr. Devkant Kala, UPES
Consumer Decision Making Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-Purchase Behaviour
Dr. Devkant Kala, UPES
Need Recognition
Need recognition occurs when the consumer
recognizes a problem or need triggered by:
• Internal stimuli
Need or Requirement.
Existing product is not performing well.
• External stimuli
Advertisement of the new product.
Notice a new feature in the product.
Receive a sales call from a sales executives.
Dr. Devkant Kala, UPES
Information Search
Information search is the amount of information
needed in the buying process and depends on:
• The strength of the drive
• The amount of information consumer start with
• The ease of obtaining the information
• The value placed on the additional information
• The satisfaction from searching.
Dr. Devkant Kala, UPES
Information Search
Information Types Role of
Source Information
Personal Family, Friends, Legitimize
Neighbours, Acquaintances Evaluate
Commercial Advertising, Salespersons Inform
Websites, Dealers
Packaging, Display
Public Mass Media Inform
Consumer Rating Organizations
Internet Searches
Experiential Personal Handling, Examining and Evaluate
use of Brand
Dr. Devkant Kala, UPES
Evaluation of Alternatives
Evaluation of alternatives is how the
consumer processes information to arrive at
brand choices.
Evaluative Criteria
Ways to compare the alternatives
Determinant Attributes
Aspects on which the alternatives clearly differ
Decision Criteria
Decision rules
Dr. Devkant Kala, UPES
Purchase Decision
The purchase decision is the act by the
consumer to buy the most preferred brand.
What to purchase.
Where, when and how to pay.
Decision is not the same as actual purchase.
Dr. Devkant Kala, UPES
Post-Purchase Decision
The post-purchase decision is the satisfaction
or dissatisfaction the consumer feels about the
purchase.
Relationship between:
Consumer’s expectations
Product’s perceived performance
Expectation = Performance (Satisfaction)
Expectation > Performance (Dissatisfaction)
Expectation < Performance (Delight)
Dr. Devkant Kala, UPES
Post-Purchase Decision
The larger the gap between expectation and
performance, the greater the consumer’s
dissatisfaction.
Customer satisfaction is a key to building
profitable relationships with consumers - to keeping
and growing consumers and reaping their customer
lifetime value.
Dr. Devkant Kala, UPES
Consumer Decision Making
(Marketer-Side)
Awareness
Interest
Desire
Action
Dr. Devkant Kala, UPES
Thank You.
Dr. Devkant Kala, UPES
