Unit 1: Introduction to Consumer Behavior

1.1 What is Consumer Behavior

Definition: It is the study of how individuals, groups, or organizations select, buy, use, and dispose of
goods, services, ideas, or experiences to satisfy their needs and desires.

 Involves pre-purchase, purchase, usage, and post-purchase phases.

 Influenced by psychological (motivation, perception) and sociological (culture, family)

🔸 Example: A student chooses between Nescafé and Bru based on taste, price, and brand trust.

1.2 Client Value, Satisfaction, Confidence, and Retention

 Client Value: Benefit received compared to the cost paid.

 Satisfaction: Meeting/exceeding customer expectations.

 Confidence: Trust built from consistent experiences.

 Retention: Repeated purchase by the same customer.

🔸 Example: Ola retains customers through timely rides, coupons, and reliable app functionality.

Unit 2: Consumer Research and Market Segmentation

2.1 Developing Research Objectives

Identifying the why and what behind consumer behavior—preferences, patterns, or problems.

🔸 Example: Swiggy analyzing uninstall behavior within first 3 days of app install.

2.2 Doing a Research Study

Step-by-step approach:

1. Define objective (e.g., why sales dropped)

2. Choose method – qualitative or quantitative

3. Collect data (surveys, interviews)

4. Analyze (descriptive stats, correlation)

5. Conclude & recommend

🔸 Example: Clothing brand surveys customers for fabric comfort, design feedback.

2.3 Market Segmentation

Dividing consumers into smaller groups with common needs or behavior.

2.4 Bases for Segmentation

 Demographic: Age, income, gender (e.g., BMW targets high-income; Maruti targets middle
class)

 Geographic: Region, urban/rural (e.g., Coca-Cola changes ad themes by region)

 Psychographic: Lifestyle, personality (e.g., Nike targets fitness-conscious)

 Behavioral: Usage, brand loyalty (e.g., Apple for loyal customers)

🔸 Example: Maggi targets both kids (taste) and adults (convenience).

2.5 Implementing Segmentation Strategies

Creating targeted products, pricing, ads for each segment.

🔸 Example: HUL offers Fair & Lovely for budget segment and Lakmé for premium buyers.

Unit 3: Psychological Factors

3.1 Consumer Motivation

The internal force that drives action.

 Based on Maslow’s Hierarchy (Physiological → Self-actualization)

🔸 Example: Dabur Honey for health-conscious; Louis Vuitton for social esteem.

3.2 Consumer Orientation

Placing consumer needs at the center of the business.

3.3 Implementing Orientation

Firms adapt offerings to meet specific customer needs.

🔸 Example: Zomato adding a “vegetarian-only” filter.

3.4 Consumer Personality & Behavior

Personality affects brand choice and buying style.

3.5 Theories of Personality

 Trait Theory: Extroverts may prefer bold styles.

 Self-Concept: Products that reflect identity.

🔸 Example: Royal Enfield aligns with bold personalities.

3.6 Using Personality in Marketing

Aligning brand messages with traits.

🔸 Example: Axe Deodorant ads target confident, bold youth.

3.7 Brand Personality

Brands with human-like traits (e.g., honest, exciting).

🔸 Example: Amul = witty + patriotic

3.8 Consumer Perception

How consumers interpret and make sense of marketing stimuli.

🔸 Example: Apple is perceived as premium even with similar features to others.

3.9 Factors Influencing Buying Behavior

1. Cultural: Traditions, beliefs (e.g., preference for veg food in India)

2. Social: Family, peer groups (e.g., parents’ choice of car for students)

3. Personal: Age, income, personality (e.g., iPhone vs. Vivo)

4. Psychological: Motivation, learning, attitudes

3.10 Types of Buying Behavior

1. Complex – High involvement, big differences (e.g., car)

2. Dissonance-Reducing – High involvement, few differences (e.g., cement)

3. Habitual – Low involvement, minor difference (e.g., salt)

4. Variety-Seeking – Low involvement, many choices (e.g., chips)

3.11 Types of Consumers

1. Loyal – Repeat buyers

3. Bargain Hunters – Price-sensitive

4. Need-Based – Functional focus

🔸 Example: Flipkart sale shoppers = bargain hunters.

Unit 4: Consumer Learning

4.1 Elements of Learning

1. Motivation – Internal desire

2. Cues – External triggers (ads, packaging)

3. Response – Action taken (buying, ignoring)

4. Reinforcement – Reward strengthens behavior

🔸 Example: Cashback on Paytm promotes repeat use.

4.2 Behavioral Learning Theories

 Classical Conditioning: Emotional connection (e.g., Cadbury and festivals)

 Operant Conditioning: Rewards/punishments (e.g., loyalty points)

4.3 Analyzing Buying Behavior

Tracking behavior to improve strategy.

🔸 Example: Amazon’s “frequently bought together” feature.

4.4 Consumer Types (Diffusion of Innovation)

1. Innovators – First to try new products (e.g., early EV buyers)

2. Early Adopters – Trendsetters (e.g., smartwatch users in 2014)

3. Early Majority – Adopt after reviews

4. Late Majority – Need strong proof

5. Laggards – Very slow adopters

Unit 5: Consumer Attitudes

5.1 Role of Marketing and Advertising

Shaping and influencing attitudes through:

 Repetition

 Persuasive messaging

🔸 Example: Surf Excel – "Daag Achhe Hain"

5.2 Attitude Formation

Influenced by:

 Experience

 Social surroundings

 Marketing content

5.3 Changing Attitudes

 Belief Change: e.g., “sugar-free” drinks = healthy

 Brand Repositioning: e.g., eco-friendly packaging

 Reframing Importance: e.g., safety over cost in baby products

Unit 6: Communication & Decision Making

6.1 Communication Process

Sender → Message → Medium → Receiver → Feedback

🔸 Example: Nykaa using Instagram ads.

6.2 Designing Persuasive Messages

Using logic, emotions, and credibility to engage audiences.

🔸 Example: Dettol’s ads highlight germs (logic) + family protection (emotion).

6.3 Family and Social Class Influence

 Family = early influencers

 Social class = product choices, brand preferences

🔸 Example: Premium watches for high-income groups.

6.4 Understanding Customer Journey

6.5 Decision-Making Process

Structured flow of consumer buying decisions.

🔸 Example: Buying a fridge → research brands → compare energy use → purchase → review
experience.

6.6 What is Social Class

Division of society based on income, education, occupation.

6.7 Lifestyle Profiles

 Upper class: Premium, exclusive

 Middle class: Value + brand mix

 Lower class: Value-for-money products

6.8 Marketing Campaigns Based on Behavior

🔸 Example: Fevikwik ads use humor for mass appeal.

6.9–6.13 Social & Cultural Influences

 Reference groups: Influence decisions

 Culture: Shapes values, rituals, buying norms

 Opinion leaders: Celebs, influencers

 Opinion seekers: People who depend on advice

🔸 Example: Virat Kohli endorsing Puma; followers trust his fashion choices.

6.14 Internet’s Impact on Buying

 E-commerce, social media, reviews

 Personalized recommendations

🔸 Example: Amazon reviews affect mobile phone purchases.

Unit 7: Diffusion of Innovation & Digital Trends

Using social media personalities to promote brands.

🔸 Example: Mamaearth using beauty influencers.

7.2 Digital Decision-Making

 Driven by brand image, online reviews, influencers

7.3 Marketing vs. Advertising

 Marketing: Full strategy (product, price, place, promo)

 Advertising: One component of promotion (communication)

🔸 Example: Patanjali’s launch includes pricing, retail channel + ads on TV.