Consumer Behaviour (Vivek Roy)

Long Answer Questions (5-10 marks)

1. What do you understand by consumer behavior? Explain its scope and
importance.
Consumer behavior refers to the study of how individuals, groups, or
organizations select, purchase, use, and dispose of goods, services,
experiences, or ideas to satisfy their needs and desires. It explores the
decision-making processes that consumers go through, including
psychological, emotional, and social factors.
• Scope:
o It includes understanding consumers’ needs, preferences, and
purchasing habits.
o It analyzes the entire buying process: from need recognition to
post-purchase behavior.
o It encompasses diverse consumer groups such as individual
buyers, families, and organizations.
• Importance:
o Helps marketers tailor their strategies to meet consumer needs
more effectively.
o Allows businesses to predict how consumers will respond to
marketing efforts.
o Enhances product development and innovation by focusing on
consumer preferences.
o It aids in improving customer satisfaction and brand loyalty by
addressing consumer concerns.
2. Explain the factors influencing consumer behavior.
• Psychological Factors:
o Perception: How consumers interpret marketing messages or
product features.
 o Motivation: The driving forces behind consumer choices (e.g.,
hunger, safety, self-esteem).
o Learning: Consumers develop preferences based on their past
experiences.
o Attitude: Preconceived notions or feelings toward a product or
service that affect behavior.
• Social Factors:
o Family: A consumer’s family strongly influences purchasing
decisions.
o Reference Groups: Friends, colleagues, and other groups affect
choices through shared values or opinions.
o Social Status: Social roles and status influence the kinds of
products consumers buy.
• Personal Factors:
o Age and Life Cycle: Different life stages come with different
purchasing needs (e.g., teenagers vs. retirees).
o Occupation: A person’s job impacts their consumption habits
(e.g., a corporate executive may prefer luxury goods).
o Lifestyle: Activities, interests, and opinions guide consumer
choices.
• Situational Factors:
o Physical Environment: The store atmosphere or online interface
can influence buying decisions.
o Time: Time constraints or availability can affect consumer
choices.
o Economic Situation: The consumer's financial condition heavily
impacts purchasing power and behavior.
3. Describe the types of consumer buying behavior.
 • Complex Buying Behavior: Occurs when consumers are highly involved
in the purchase and perceive significant differences among brands (e.g.,
buying a car).
• Limited Problem Solving: Consumers are somewhat involved, and the
decision-making process is shorter, often relying on familiar brands or
products (e.g., buying a microwave).
• Habitual Buying Behavior: Involves minimal involvement as the product
is a routine purchase, and brand loyalty is strong (e.g., buying
toothpaste).
• Variety-Seeking Buying Behavior: Consumers have low involvement but
are seeking variety. They switch brands for novelty or curiosity (e.g.,
trying different snack foods).
4. Explain the reference group and their influence on the purchase decision-
making process.
A reference group is a group that serves as a point of comparison for an
individual in forming their attitudes, beliefs, and behavior. It can influence a
person’s choices by:
• Informational Influence: Consumers rely on knowledgeable people
within the group for advice on certain products.
• Normative Influence: Consumers are influenced by expectations of the
group (e.g., wearing certain brands to fit in).
• Value-Expressive Influence: Consumers might adopt the buying
behaviors of a group to express shared values or identity.
5. What are the basic models of Consumer Behavior (C.B)?
• Economic Model: Views consumers as rational beings who seek to
maximize utility from purchases based on cost and benefits.
• Psychological Model: Considers internal psychological processes such
as motivation and perception that influence decision-making.
• Pavlovian Learning Model: Focuses on how conditioning and learning
experiences shape consumer behavior.
 • Nicosia Model: A comprehensive model that shows how a consumer's
pre-existing attitudes are influenced by marketing communication,
which then leads to decision-making.
6. What do you understand by the consumer decision-making process?
Explain the steps involved.
The consumer decision-making process consists of the following steps:
1. Need Recognition: The consumer identifies a gap between the current
state and a desired state (e.g., feeling hungry).
2. Information Search: The consumer looks for information about
products that can satisfy their need, both internally (past experiences)
and externally (ads, reviews).
3. Evaluation of Alternatives: The consumer compares different products
or brands based on factors such as features, price, and reviews.
4. Purchase Decision: The consumer makes the final decision and buys the
product.
5. Post-Purchase Evaluation: After purchase, the consumer evaluates their
satisfaction with the product, which can affect future buying behavior.
7. Explain how to measure consumer satisfaction.
Consumer satisfaction can be measured using:
• Surveys and Questionnaires: Asking consumers about their experience
with the product or service.
• Net Promoter Score (NPS): Measures the likelihood that a consumer
would recommend the product to others.
• Customer Feedback: Analyzing product reviews, ratings, and social
media feedback.
• Repeat Purchase Behavior: Higher levels of repeat purchases indicate
greater satisfaction.
• Customer Support Interaction: Tracking the frequency and nature of
customer complaints or inquiries.
8. Explain consumer research and the major steps involved in the process.
Consumer research refers to the systematic collection and analysis of data
about consumers’ preferences, attitudes, and buying behavior. Major steps
include:
• Defining the Problem: Identifying what specific consumer behavior
needs to be studied.
• Developing the Research Plan: Selecting research methods (surveys,
focus groups, etc.) and designing questions.
• Data Collection: Gathering information from the chosen research
method.
• Data Analysis: Interpreting the data to derive insights.
• Reporting Findings: Presenting the results to inform business strategies.
9. What do you mean by online consumer behavior? Define its importance
and process.
Online consumer behavior refers to how consumers make purchasing
decisions in the digital environment. It’s important because:
• Easier Access to Information: Consumers can easily compare products
and prices online.
• Influence of Social Media and Reviews: Opinions from peers or
influencers can heavily sway purchasing decisions.
• Convenience: Online shopping provides a 24/7 purchasing option.
The process is similar to the traditional decision-making process but includes
digital tools such as search engines, social media, and e-commerce platforms.
10. What are the different dimensions and types of consumer involvement?
Consumer involvement refers to the level of interest or personal relevance
that a consumer perceives in a product. Dimensions include:
• Emotional Involvement: How emotionally connected a consumer is to
the product.
• Cognitive Involvement: The mental effort the consumer expends in the
decision-making process.
Types:
 • High Involvement: Involves extensive decision-making (e.g., buying a
car).
• Low Involvement: Involves routine decisions with little thought (e.g.,
buying a snack).

Short Answer Questions (2-3 Marks)

1. Difference between customer and consumer
A customer is the individual or organization that purchases goods or services,
but they may not necessarily be the one who uses them. For example, a
parent buying toys for their child is the customer, while the child is the
consumer, the person who actually uses the product. While the terms are
often used interchangeably, understanding the distinction is crucial for
marketers because targeting strategies may differ for buyers and end-users.
2. Difference between consumer and industrial buying behavior
Consumer buying behavior involves individuals purchasing goods and services
for personal use. It is typically driven by personal preferences, emotional
connections, and needs. In contrast, industrial buying behavior (also known
as business-to-business, or B2B buying) involves organizations purchasing
goods and services for operational use, production, or resale. Industrial
purchases are often more rational, based on factors like cost, quality, and
supplier reliability, and involve longer decision-making processes compared
to consumer buying.
3. Define consumer motives
Consumer motives refer to the underlying reasons or forces that drive
individuals to purchase goods or services. These motives can be influenced by
psychological needs (such as comfort or status), social influences (such as
peer approval), or functional needs (such as hunger or safety). Understanding
consumer motives helps marketers to appeal to both emotional and rational
drivers, enabling them to design marketing campaigns that effectively
address consumer needs and desires.
4. What is culture?
Culture is the set of shared beliefs, values, customs, behaviors, and artifacts
that define a society or group. It shapes consumer behavior by influencing
preferences, norms, and decision-making processes. For instance, in some
cultures, luxury brands may be seen as symbols of status, while in others,
sustainability may be valued more highly. Marketers must understand
cultural contexts to create relevant messaging that resonates with specific
groups.
5. Define the terms: Attitude, Brand Loyalty, Perception
• Attitude: This is a learned predisposition to respond favorably or
unfavorably to a product, brand, or service. Attitudes are formed over
time and are influenced by experiences, marketing, and social factors.
• Brand Loyalty: It refers to a consumer's consistent preference for one
brand over others, often leading to repeat purchases. Brand loyalty is
valuable to companies as it increases customer retention and reduces
marketing costs.
• Perception: It is how consumers interpret information and make sense
of a product or service based on sensory inputs like sight, sound, and
touch. Perception is subjective and can be influenced by marketing,
advertising, and personal experiences.
6. What do you mean by consumer decision-making?
Consumer decision-making refers to the process by which consumers identify
their needs, gather information, evaluate alternatives, and make a purchase
decision. It is influenced by various factors including psychological (e.g.,
motivation), social (e.g., family), and situational factors (e.g., urgency). The
decision-making process is crucial for marketers to understand because it
helps them craft strategies to guide consumers from recognizing a need to
making a purchase and eventually forming post-purchase satisfaction or
dissatisfaction.
7. Define pre-purchase and post-purchase
• Pre-purchase refers to the stages consumers go through before buying
a product or service. This includes identifying a need, gathering
information, comparing alternatives, and deciding whether to make a
purchase. Marketers focus on influencing consumers during this stage
through advertising, promotions, and product information.
• Post-purchase involves the consumer’s behavior after buying a product,
including their level of satisfaction or dissatisfaction with the purchase.
 This stage is critical as it affects customer loyalty, word-of-mouth, and
potential repeat purchases.
8. Explain consumer involvement
Consumer involvement refers to the level of interest or emotional investment
that a consumer has in a product or service. High-involvement decisions
typically involve significant thought, research, and comparison (e.g., buying a
car), while low-involvement decisions are routine and require little thought
(e.g., buying a snack). Involvement influences how much time and effort a
consumer will put into the decision-making process, which affects how
marketers approach advertising and product placement.
9. What is consumer research?
Consumer research is the systematic process of gathering and analyzing data
about consumers' needs, preferences, behaviors, and trends. It helps
businesses understand what drives consumer decisions and how to better
meet their needs. The research process typically includes identifying the
problem, designing the research, collecting data (through surveys, focus
groups, etc.), analyzing the results, and then using the findings to inform
marketing strategies.