1. Consumer Behaviour
Prof Sameer Kulkarni

2. Consumer Mind: A Black Box
Stimulus
Buy
Company Controlled
Product
Price
Advertising
Promotion
Display
Distribution
Consumer Mind
(Black Box)
Response
Social
No Buy
Word of Mouth
Reference Group

3. Customer Decision Making Process
Drivers of Change
Borderless
Competition
Media
Technology
Development/
New Generations
CUSTOMER
Awareness
Personality
Assertive
Exhibitionist
Self Concept
Life-Style
Aspirations
Values
Differ Pleasure vs.
Instant Pleasure
Social Structure
Individualism vs.
Collectivism

4. How they Buy ? High involvement products: High price Complex features
Significant differences between alternatives
High perceived risk
Reflect self concept of buyer
E.g. Selection of a Car

5. How they Buy ? Low involvement products
Alternatives within the same product class are similar
Does not reflect buyers self concept
Frequent brand switching behaviour
E.g. buying a bathing bar (Toilet Soap)

6. Purchase decision in low involvement products
Problem/need
Recognition
Evaluation of
Alternatives
Decision

7. Theory of evoked set (Howard & sheth’s theory)
Total Set
(All Brands)
(Brands aware of)
Awareness Set
(Brands Considered)
Consideration
Set
(Brand Decided)
Decision Set
Purchase Set
Total Set
IFB , Whirlpool LG
Samsung
Godrej
Awareness Set
LG , Samsung
Consideration
Whirlpool , LG
Set
Whirlpool, Godrej
Decision Set
Purchase Set

8. Its not product but the Situation
Routinized response
Limited problem solving
Extensive problem solving

9. Types of Buying Behavior
High Involvement
Low Involvement
Significant Differences
Between Brands
Complex Buying
Behaviour
Variety Seeking Buying
Few Differences
Dissonance Reducing Buying
Habitual Buying

10. Motivational reasons Sheth’s consumer motives
Five dimensions of motivation concerning products/services benefits
Functional – utility or function performed
Aesthetic/emotional – appearance or attractiveness
Social – status or esteem value
Situational – unexpected benefit
Curiosity – interest aroused

11. Purchase decision in high involvement products
Need Recognition
Development of Decision
Criteria
Alternatives
Search for
Evaluation of
Decision

12. Routinized response (straight re buy)
Customer is aware of his /her choice
Decision is based on personal experience
Spends little /no time in choosing an alternative
Perceives low risks

13. Limited problem solving (modified re buy)
Launch of a new product which leads in a change in the customer’s decision criteria.
Buying leads to trial purchase
Brand extension helps in removing obstacles
Perceives moderate risk

14. Extensive problem solving (new task)
Requires extensive learning
Awareness about alternatives is zero
Has no decision criteria
Unable to evaluate different brands
Relocating to a new & unknown environment

15. Rational behind behaviour
Buyer
Motivations
Economic
Factors
Psychological

16. Psychological Factors
Motivation
Learning
Perception

17. Motivation (Sigmund Freud)
(Irrational/emotional) Id
Socially accepted methods
(Moral)
Super Ego
(Extremely rational)
Ego

18. Influence on Buyer Behaviour
Cultural
Culture Subculture Social Class
Social
Reference Group Family Roles & Statuses
Personal
Age life cycle state Occupation Economic circumstances Life style personality and self concept
Psychological
Motivation Perception Learning Beliefs and attitudes
Buyer

19. Values motivates in buying
Functional value
Conditional value
Social value
Emotional value
Knowledge value
(according to Sheth , Newman & Gross)

20. Learning Theory Human behaviour is learnt
One the pain of punishment
the lure of rewards
Directing human behaviour is done by developing stimuli and cues which bring to fore the latent need
Attractive advertisement , shelf display, packaging, how to use instructions ,store layout ,availability &
sales persons are examples of cues developed by a marketer.

21. Basis of Differences Gender differences – hunter=men, nurse=women
Intelligence differences –
caste,
class,
education, etc.
Personality differences –
job specializations

22. Plato stated more than 2000 years ago:
“No two persons are born exactly alike; but each differs from the other in natural endowments, one being suited for one occupation and the other for another.”

23. Cognitive dissonance theory
Leon Festinger-1957 ,wrote the theory of cognitive dissonance
Psychological discomfort caused by inconsistency among a person’s beliefs , attitudes / actions e.g. smoking
Varies in intensity based on importance of issue & degree of inconsistency

24. Lifestyles (Indian Perspective)
Be longer
Sustainers
Survivors
Need Driven
Socially Conscious
Experiment
I-am-me
Internally Driven
Integrated
Achiever
Emulator
Outer Driven

25. Buyer lifestyle
Survivors: Price conscious , not very knowledgeable , depressed.
Sustainers: Strugglers , swayed by brand guarantee , impulse buyers.
Belongers: Conventional conservative , nostalgic , unexperimental.
Emulators : Ambitious , upwardly mobile , status conscious , buy to impress others.
Achievers : Leaders , work in hi tech top line products.
I-am-me: Young , Self engrossed , impulsive.
Experimental : Pursue a rich inner life , High sense of social resp.
Integrate : Fully matured psychologically , combination of best elements