Syllabus

Unit I: Introduction to Consumer Behavior 4 hours

• Meaning and nature of buyer behavior. Differences between consumer buying and organizational buying in terms of
characteristics and process. Strategic use of consumer behavior knowledge in marketing and public policy decisions.
Modern consumerism and the global consumer movement.
Unit II: Consumer Decision Process: Problem Recognition 4 hours
• Types of consumer decisions. Purchase involvement levels and the decision process. Problem/need recognition by
consumers. Types of consumer problems. Marketing strategy and problem recognition.
Unit III: Information Search and Evaluation 12 hours
• Nature of consumers’ information search: internal and external search, passive and active search. Types of
information sought by consumers: evaluative criteria, alternatives available, alternative characteristics. Sources of
consumer information. Marketing strategy in the information search process. Consumers’ evaluative criteria and its
measurement. Consumer decision rules: conjunctive and disjunctive decision rules, lexicographic decision rule, and
compensatory decision rules. Marketing strategy in the evaluation process.
Unit IV: Consumers’ Choice and Post-purchase Behavior 8 hours
• Consumers’ choice: Brand choice and store choice factors. Rational choice, affective choice, attribute-based choice,
and attitude-based choice. Post-purchase dissonance: reasons and remedies. Product use and non-use. Product
disposition: disposition methods. Satisfaction and dissatisfaction. Consumer complaint behavior. Satisfaction and
brand loyalty. Strategic implications of the post-purchase evaluations.
Unit V: Individual Influences on Consumer Behavior 12 hours
• Consumer motivation: nature, process and sources of consumer motivations. Consumer learning: nature and sources of
consumer learning; learning and consumer memory. Consumer perception: nature and process of perception.
Personality: nature and types of consumer personality. Consumer personality and brand personality congruence.
Consumer attitudes: nature and functions of attitudes; attitude components: component consistency among cognitive,
affective and behavioral; Communication strategy for attitude change.
Unit VI Socio-Cultural Influences on Consumer Behavior 8 hours
• Reference group influences: nature and degree of influences, marketing strategies based on reference group influences.
Family influences: structure of household, family decision roles, family life cycle. Consumer socialization: how
children learn to be consumers. Social class influences: social class hierarchy and consumption behavior in Nepal.
Cultural and sub- cultural influences: nature of culture, cultural dynamism, values, norms, myths. Cross cultural
marketing.

Basic Text
• Del I. Hawkins, David L. Mothersbaugh, and Amit Mukerjee, Consumer Behavior, McGraw Hill.
References
1. Michael R. Solomon. Consumer Behavior. Delhi: Pearson Education.
2. David L. Loudon and Albert j. Della Bitta, Consumer Behavior, McGraw Hill.
 Unit 1: Introduction to consumer behavior
• Consumer behavior refers to the study of how individuals, groups, or
organizations select, purchase, use, and dispose of goods, services, ideas,
or experiences to satisfy their needs and desires. It encompasses a wide
range of activities and processes related to the decision-making and
consumption patterns of consumers.
• Buyer behavior refers to the actions and decisions that individuals or
organizations make when purchasing products or services. Understanding
buyer behavior is crucial for businesses because it helps them tailor their
marketing strategies, improve customer satisfaction, and ultimately drive
sales.
• Buying Behavior: The actions, decisions, and processes involved in
purchasing goods or services.
 Nature of Buyer Behavior
• Complex and Multifaceted: Buyer behavior is often complex, involving multiple stages and influenced by
various factors. It’s not always a straightforward process and can vary greatly from one purchase to another.
• Dynamic: Consumer preferences and behaviors can change over time due to shifts in societal trends,
technological advancements, or personal experiences. Businesses must stay attuned to these changes to
remain relevant.
• Influenced by Internal and External Factors:
– Internal Factors: Include personal needs, desires, motivations, perceptions, and attitudes.
– External Factors: Encompass social influences (family, friends), economic conditions, cultural background, and
marketing stimuli.
• Diverse: Buyer behavior can differ widely among individuals and segments. For example, the buying
behavior of a tech enthusiast might differ significantly from that of a budget-conscious shopper.
• Pre-Purchase, Purchase, and Post-Purchase Stages:
– Pre-Purchase: Involves problem recognition, information search, and evaluation of alternatives.
– Purchase: Involves the actual buying decision and transaction.
– Post-Purchase: Involves post-purchase evaluation and any potential actions like returns or word-of-mouth
recommendations.
• Customer Journey Mapping: Understanding buyer behavior often involves mapping out the customer
journey to identify touch points and areas where marketing can have the most impact.
Differences between consumer buying and
organizational buying
Strategic use of consumer behavior knowledge in marketing and
public policy decisions
In Marketing
Market Segmentation:
 Targeted Marketing: Tailor strategies to specific consumer segments.
 Product Customization: Develop products suited to distinct consumer needs.
Consumer Insights and Product Development:
 Innovative Products: Address consumer pain points with new solutions.
 Feature Enhancement: Improve products based on consumer feedback.
Pricing Strategies:
 Value-Based Pricing: Set prices according to perceived value.
 Promotional Pricing: Use discounts to attract price-sensitive consumers.
Advertising and Promotion:
 Personalized Messaging: Create targeted ads for specific segments.
 Behavioral Targeting: Optimize digital ads using consumer behavior data.
Customer Experience Management:
 Service Improvement: Enhance customer service based on feedback.
 Experience Optimization: Design seamless shopping experiences.
Brand Loyalty and Retention:
 Loyalty Programs: Reward repeat purchases to foster loyalty.
 Engagement Strategies: Strengthen connections through personalized interactions.
In Public Policy
• Consumer Protection:
– Regulation and Standards: Ensure product safety and fair practices.
– Awareness Campaigns: Educate consumers about their rights.
• Public Health Campaigns:
– Behavioral Insights: Design effective health campaigns using behavior knowledge.
– Incentives and Nudges: Encourage healthier choices through strategic incentives.
• Economic Policy:
– Taxation and Subsidies: Influence behavior with targeted fiscal policies.
– Market Regulation: Prevent harmful practices and ensure fair competition.
• Environmental Policy:
– Sustainability Programs: Promote eco-friendly practices through incentives.
– Behavioral Incentives: Encourage sustainable behavior with targeted programs.
• Social Welfare Programs:
– Program Design: Address specific needs of target populations.
– Effectiveness Evaluation: Assess program impact using behavior data.
 Modern consumerism and the global consumer
movement.
Modern Consumerism: The contemporary trend where consumers increasingly prioritize not only the
quality and price of goods but also ethical, environmental, and social considerations in their purchasing
decisions.

Key Characteristics
 Informed Choices: Consumers are more knowledgeable and conscious about the products they buy, including their
origins and manufacturing processes.
 Ethical Considerations: Growing interest in products that align with ethical values, such as fair trade, animal
welfare, and sustainable sourcing.
 Environmental Awareness: Emphasis on reducing environmental impact through eco-friendly products and
sustainable practices.
 Health and Wellness: Increasing demand for products that promote health and well-being, such as organic and
natural goods.
 Digital Influence: Use of social media and online platforms to research, review, and influence purchasing decisions.
Consumer Behavior Trends
• Personalization: Desire for customized products and services that cater to individual preferences.
• Convenience: Demand for seamless shopping experiences, including online shopping and fast delivery options.
• Transparency: Expectation for brands to provide clear information about product sourcing, production, and
corporate practices.
Global Consumer Movement: A collective effort by individuals, organizations, and
governments to address global issues related to consumption;
Key Aspects
 Sustainable Development: Advocating for consumption patterns that do not deplete
resources or harm the environment, in line with global sustainability goals.
 Corporate Social Responsibility (CSR): Encouraging businesses to operate
responsibly, addressing social and environmental impacts.
 Fair Trade: Promoting equitable trade practices that ensure fair wages and working
conditions for producers in developing countries.
 Consumer Rights: Advocating for the protection of consumer rights globally,
including safety, transparency, and fair treatment.
 Global Campaigns: Participation in international movements and campaigns, such as
those focused on climate change, plastic pollution, and labor rights.
Key Initiatives
 Certification Programs: Support for certifications like Fair Trade, Organic, and B Corp that signify
ethical and sustainable practices.
 Advocacy and Awareness: Global organizations and NGOs raising awareness and pushing for policy
changes related to consumer practices and corporate behavior.
 Collaborative Efforts: Partnerships between governments, businesses, and civil society to drive
systemic changes in consumption and production.
Interconnection Between Modern Consumerism and the Global Consumer Movement
o Influence on Each Other: Modern consumerism drives the global consumer movement as consumers
demand more ethical and sustainable products. Conversely, the global consumer movement shapes
modern consumerism by raising awareness and setting standards for ethical consumption.
o Shared Goals: Both modern consumerism and the global consumer movement seek to create a more
equitable and sustainable world through informed and responsible consumption.
o Impact on Business Practices: Businesses are increasingly responding to both trends by adopting
sustainable practices, improving transparency, and aligning with global standards to meet consumer
expectations and contribute to global goals.
 Assignment
• Discuss how modern consumerism influences the global consumer
movement. Provide specific examples to illustrate how contemporary
consumer trends impact global sustainability efforts and business practices.
 Unit II: Consumer Decision Process: Problem Recognition

• Types of consumer decisions. Purchase involvement levels and the decision

process. Problem/need recognition by consumers. Types of consumer problems.
Marketing strategy and problem recognition .
 Consumer decision
• Consumer decision refers to the process and outcome of choosing whether or not
to purchase a product or service, and if so, which specific option to select. It
encompasses the entire journey from recognizing a need to making a purchase and
can be influenced by various factors including personal, social, and economic
elements.
Key Components of Consumer Decision
• Need Recognition:
• Information Search:
• Evaluation of Alternatives:
• Purchase Decision:
• Post-Purchase Behavior:
Types of consumer decisions.
 Types..
1. Routine Response Behavior
• Purchases that are made frequently and with minimal thought.
– Low Involvement: Decisions are made quickly and habitually.
– Simple Choices: Often involves low-cost items or products bought regularly.
– Minimal Information Search: Little to no research is needed.
• Examples: Buying groceries, household cleaning products, or daily toiletries.

2. Limited Decision-Making
• Involves moderate levels of thought and effort.
– Moderate Involvement: Some evaluation of options is necessary.
– Moderate Information Search: Consumers may compare alternatives but not exhaustively.
– Familiar Products: Often involves products that are not frequently purchased but still familiar.
• Examples: Purchasing a new shirt, choosing a restaurant for a casual meal.
3. Extended Decision-Making
• Involves high levels of thought and effort due to the significance of the purchase.
– High Involvement: Detailed and extensive decision-making process.
– Thorough Information Search: Involves considerable research and
comparison.
– Complex Choices: Often associated with high-cost or high-risk items.
• Examples: Buying a car, selecting a college, or purchasing a home.

4. Impulse Buying
• Spontaneous and unplanned purchase decisions.
– Emotional Influence: Driven by sudden urges or emotional reactions.
– No Prior Planning: Purchases are made without prior consideration or planning.
– Immediate Gratification: Focus on immediate pleasure or need.
• Examples: Buying candy at checkout, grabbing an item on sale that wasn’t originally
on the shopping list.
Purchase involvement levels and the decision process.
Problem/need recognition by consumers
 Types of consumer problems.
Functional Problems
• Issues related to the practical performance or usability of a product or service.
• Examples: Product malfunctions (e.g., a laptop that crashes), service failures (e.g., frequent outages with a
cable service).
Financial Problems
• Concerns related to the cost or value of a product or service.
• Examples: Overpricing (e.g., a product that seems too expensive), hidden fees (e.g., unexpected maintenance
or shipping charges).
Quality Problems
• Concerns about the quality or performance of a product or service.
• Examples: Substandard materials (e.g., clothing that wears out quickly), inconsistent quality (e.g., variability
in product quality).
Customer Service Problems
• Issues related to the support and service provided by a company.
• Examples: Poor service (e.g., unresponsive customer support), delayed responses (e.g., long wait times for
resolution).
Ethical Problems
• Concerns about the ethical practices of a company or the impact of a product or service.
• Examples: Unethical practices (e.g., using sweatshop labor), misleading advertising (e.g., false
claims about a product).
Psychological Problems
• Emotional or psychological issues related to the consumption experience.
• Examples: Buyer’s remorse (e.g., regret after a purchase), brand disappointment (e.g., dissatisfaction
with a brand’s performance).
Convenience Problems
• Issues related to the ease and accessibility of obtaining or using a product or service.
• Examples: Accessibility issues (e.g., difficulty finding a product), complex processes (e.g.,
complicated purchase procedures).
Safety Problems
• Concerns related to the safety and health implications of a product or service.
• Examples: Product recalls (e.g., dangerous products leading to recalls), service safety (e.g., unsafe
conditions in a service setting).
Marketing strategy and problem recognition.
 Marketing Strategy and Problem Recognition

• Discovering Consumer Problems

• Responding to Consumer Problems
• Helping Consumers Recognize Problems
• Suppressing Problem Recognition
 1. Discovering Consumer Problems
Surveys and focus groups use one of the following approaches to problem identification
1. Activity Analysis: Focuses on a particular activity to determine what problems
consumers encounter during the performance of the activity.
2. Product Analysis: Examines the purchase or use of a particular product or brand.
Consumers may be asked about problems associated with using a product or brand.
3. Problem Analysis: Starts with a problem and asks which activities, products, or brand are
associated with (or perhaps could eliminate) those problems
4. Human Factors Research: It attempts to determine human capabilities in areas such as
vision, strength, response time, flexibility, and fatigue and the effect on these
capabilities of lighting, temperature, and sound.
5. Observational techniques: This type of research can sometimes identify functional
problems that consumers are unaware of.
 2. Responding to Consumer Problems

Once a consumer problem is identified, the manager may structure the

marketing mix to solve the problem. This can involve:
• Developing a new product or altering an existing one
• Modifying channels of distribution
• Changing pricing policy, or
• Revising advertising strategy