Chapter 1 & 2 Consumer Behavior

Business orientations, What the Businessman should know about consumers? Meaning and Definitions of C-B, Relationship between CB and other subjects

Books for Reference• Schiffman and Kaunuk “Consumer Behavior”-Prentice-Hall of

India.

• Sheth Mittal “Consumer Behavior-A Managerial perspective- Thompson

• NK Sahani, Meenu Gupta “Consumer Behavior”-Kalyani Publishers.

• Suja R Nair “Consumer Behavior –Text and cases-Himalaya Publishing House.

Syllabus

• 1. Introduction to Psychology• 2. Introduction to consumer behavior• 3. Consumer Decision Making.• 4. Consumer learning, habit and brand loyalty• 5. Consumer Perception and Attitude.• 6. Consumer characteristics and life style• 7. Consumer and Cultural Influences.• 8. Group Influence.• 9. Business to Business buying behavior

Introduction to Consumer Behavior and Psychology-Chapter 1 and 2

• Business orientations:

– 1. Production (Focus on production and production related activities)

– 2. Sales (Focus on increasing sales)– 3. Promotion(Efforts to increase sales)– 4. Consumers (Focus upon consumers needs and

aspirations)

What the Businessmanshould know about consumers?

• Who buys?• How do they buy?• When do they buy?• Where do they buy?• Why do they buy?• How often they buy?

Meaning and Definitions of C-B

Leon G. Schiffman and Kanuk

• “Consumer behavior is the study of how individuals make decisions to spend their available resources (Time, Money and Efforts) on consumption related items. It includes the study of what they buy, why they buy it, when they buy it, how often they buy it and how often they use it”.

Meaning and Definitions of C-B

S.A. Chunnawalla

• “Consumer behavior refers to the behavior of consumers in deciding to buy or not to buy or use or not to use or dispose of or not to dispose of the products which satisfy their needs”.

Meaning and Definitions of C-B

• Suja R Nair

“Consumer Behavior can be defined as all psychological, social and physical behavior of all potential consumers as they become aware of, evaluate, purchase, consume and tell others about products and services”

Relationship between CB and other subjects-

1. Economics

1. Economics:

.Oldest social sciences

.Deals with demand/supply, human wants.

. Economics helps to understand complex human behavior.

. Helps in understanding human wants and needs in the process of fulfilling unlimited human wants with limited resources.

Relationship between CB and other subjects-

2. Psychology

2.Psychology

(Science which tries to probe and understand the individuals mind working while taking decisions)

Relationship between CB and other subjects-

2. Psychology

Factors affecting Human Behavior:

1. Needs : (Needs are felt deprivation in a person.)

• Features:

1. Needs are never fully satisfied.2. New needs comes when old needs are satisfied.

Relationship between CB and other subjects-

2. PsychologyFeature of Needs(Cont)

3.Extent of fulfillment of needs affects human behavior.

4.Non fulfillment of a need may influence the need negatively.

5.Needs vary among individuals.

Relationship between CB and other subjects-

2. Psychology

2. Motivation:

Forces that make people behave in particular ways. It encompasses pressures and influences that trigger channelized and sustained consumer behavior.

Relationship between CB and other subjects-2. Psychology

3. Personality:

Pre-disposition to react to a given stimulus in a particular manner and this may be in the form of consistent response to environment stimuli.

Relationship between CB and other subjects-

2. Psychology4. Perception:

Process by which an individual selects, organizes and interprets stimuli into meaningful coherent picture of the world.

Relationship between CB and other subjects-

2. Psychology

5. Learning: Process by which individuals acquire the

purchase and consumption knowledge and the experience they apply in future related behavior.

Relationship between CB and other subjects-

2. Psychology

6. Attitudes:

It is enduring organization of motivational, emotional, perceptual and cognitive process with respect to some aspect of the Individuals world.

Relationship between CB and other subjects-

2. Psychology

Attitudes:

1. Attitudes and learned pre-dispositions.

2. Attitudes have consistency.

3. Attitudes are formed on account of Individuals personality.

Relationship between CB and other subjects-

3. Sociology

3. Sociology: (Study of groups)

. Society is dominant and complex social organization.

. It has its own set of values, beliefs and culture.

. Relationship can be established between social class and consumption pattern.

Relationship between CB and other subjects-

4. Group Psychology

4. Group Psychology: (Studies how individuals operate and behave in groups)

• People in the group will try to confirm to the group.

• People will get influenced by others consumption pattern.

• People will accept the view of the informal group leaders

Relationship between CB and other subjects- 5. Cultural Anthropology

5. Cultural Anthropology: (Studies how the people behave)

. Culture has impact on human behavior.

. Culture is a heritage adapted by the society at large.

PTO

Relationship between CB and other subjects- 5. Cultural Anthropology

.Culture is dynamic, it is alive and ever changing.

. Ex: India’s traditional features are a part of its culture. (Joint family system, Caste system, Ritualism, Social class, Attitudes towards wealth)