MARKETING MANAGEMENT

Module 3
Consumer Behaviour

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What Is Consumer Behaviour?

The totality of consumer decisions with respect to
acquisition, consumption, and disposition of
products, offerings
services, activities by human decisionmaking units [over time]

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Perspectives
Psychology of marketing
Dynamic interaction of
Affect, cognition
Behaviour
Environment
Seen through marketing actions and social

psychology

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IIM Ranchi PGDHRM 2016-18

Information
gatherer
Influencer
Decider
Purchaser
User

Over time

Products
Services
Ideas
Activities

By

Acquisition
Usage
Disposition

Offering

Whether?
What?
Why?
How?
When?
Where?
How
much/often?

Consumption

Totality of decisions

Domain
Hours
Days
Weeks
Months
Years

Process of Consumption
Acquisition
Purchasing
Trading
Renting/leasing
Bartering

Receiving gifts
Finding
Borrowing

Stealing

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Usage

Disposition
New use
Getting rid of temporarily
Getting rid of permanently
Never

Decision-making Process
Problem
recognition

Information
search
Evaluation of
alternatives

Purchase
decision
Post-purchase
evaluation /
behaviour
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Classification
Based on consumer responses
1. Approach
2. Avoidance
3. Utilitarian
Effectiveness of investment governed by the categories

Influenced by personal, psychological, situational,

social factors

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Personal Factors
Self-identity
Personality
Lifestyle
Age and life stage
Vocation
Affluence

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Personality
Distinctive patterns in behaviours, tendencies, qualities

and personal dispositions

Makes an individual different from another
Consistent response to environment stimuli
Some traits make more sense to marketers to
assess/predict

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Traits
Optimal stimulation level
Dogmatism
Need for Uniqueness (NFU)
Need for Cognition (NFC)

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Traits
Susceptibility to influence
Frugality
National character
Self-monitoring

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Self-monitoring
High Self-monitors

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Low self-monitors

Lifestyles
Activities, Interests, Opinions (AIO)
Need to connect by positioning offerings in the

environment where / how consumers live

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AIO Segmentation
Activities

Interests

Opinions

Work

Family

Themselves

Hobbies

Home

Social issues

Social events

Job

Politics

Entertainment

Community

Business

Sports

Recreation

Education

Vacations

Fashion

Economics

Club membership

Food

Products

Community

Media

Culture

Shopping

Achievements

Future

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The Concept and Application of Life

Style Segmentation (Plumer, 1974)

Age & Life Stage

Chronological age
Cognitive age
Age cohorts - Group of people born at roughly the same time in the
same place/country experienced the same major economic, political
and social upheaval
In India
Midnights children (Rushdie)
Liberalisation children
Pre-Independence generation
Midway children or Rajiv Gandhi age cohort (Bijapurkar)

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Psychological Factors
Perception

Motivation
Attitudes and beliefs
Learning

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Perception
Sensing a marketing stimulus
Visual size, shape, colour
Audio music, noise
Touch
Taste, smell
Outside in

Perceptual organisation
Closure
Figure and ground
Grouping

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Figure & Ground

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Grouping

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Selective perception
Selective exposure
Selective attention
Perceptual defence
Perceptual blocking

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Motivation
Set of conditions that

creates a drive toward a

particular action to fulfill a
need or want
Inside out
Maslows hierarchy - context
for understanding
Governs purchase
involvement

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Perceived Risks
Performance
Financial
Physical / safety
Social
Psychological

Time

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Attitudes and Beliefs

Attitude overall

evaluation about how

much an individual
(dis)likes an object / issue /
person / action
Components of attitude

Belief sense of truth in

an individual about
something; known to
individual and can
influence attitudes

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Affect
Emotion

Involvement-Attitude Grid
High
Involvement

INFORMATIVE
House, car,
insurance

AFFECTIVE
Cosmetics,
fashion

Feel
(Affective)

Think
(Cognitive)

HABITFORMATION
Food,
household items

SELFSATISFACTION
Liquor,
chocolates

Low
Involvement
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Theory of Reasoned Action

Belief about
the outcomes

Evaluation of
the outcomes

Opinion of
significant others

influences

Motivation
to comply

influences

Attitude toward
behaviour

Subjective
norms
influences
Intention

Behaviour
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The Prediction of Behavioral Intentions

in a Choice Situation (Ajzen &
Fishbein, 1969)

Learning
Knowledge acquired through experiences
Drive internal stimulus that encourages action
Cue environmental stimulus that influences a particular action
Response consumers reaction to drives and cues
Reinforcement reduction in drive resulting from a positive
response experience

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Situational Factors
Purchase environment
Digital environment
Time
Context

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Social Factors
Culture
Reference Groups

Social class
Gender roles
Family

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Culture
Typical or expected behaviours, norms, and ideas that

characterise a group of people

Shared values, beliefs, preferences of a particular society
Powerful influence on consumer behaviour and
expectations
Subcultures
Minorities
Communities

Critical aspect in international marketing

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Reference Groups
People whose values are shared by consumers, and

whose opinions are valued

Direct / indirect influence on consumer thoughts
Expertise & trustworthiness
Types used in marketing
Celebrities
Expert
Common man
Executive/employee

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Social Class
Characteristics that distinguish

certain members of a society

from others
Wealth
Vocation
Education

Power
Residence
Ancestry

SEC classification

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Importance of Social Class

Upper class
Invest & save more
Use product characteristics (not price) as indicators of quality
Middle class
Look towards upper class for social behaviour guidance - upward
mobility
Working class
Increased presence of women, esp. in service sector
Shop in mass merchandising outlets

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Social Symbols
Conspicuous consumption
Keep up with the respected members of that class
Trade up
Wastages - encyclopedia
Materialism
Status symbols
Judging others
Fraudulent symbols

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IIM Ranchi PGDHRM 2016-18

Gender Roles
Social expectations of appropriate attitudes and

behaviours from the genders

Evolve and change over time
Gender identity
Media stereotyping

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Family
First influencers
Normative behaviour and distinct roles
Family structure changing over time
Joint nuclear single parent DINKs live-in same sex
Role of spouses

Role of children
Princess syndrome

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Thank You!!

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