Unit 1 – Introduction to Consumer Behavior

1. Meaning and nature of consumer behavior

Consumer behavior refers to the actions and decisions made by individuals and households when
they purchase and use goods and services. It is a field of study that examines how people choose,
use, and dispose of products and services, and how they make purchasing decisions.

Understanding consumer behavior is important for businesses, as it helps them to identify customer
needs and preferences, and to develop marketing strategies that are more effective in reaching and
influencing potential buyers. It also helps businesses to improve the design and functionality of their
products and services, and to better understand the market conditions in which they operate.

There are many factors that can influence consumer behavior, including personal, psychological,
social, and cultural factors. Personal factors such as age, income, education level, and lifestyle can all
impact how a person makes purchasing decisions. Psychological factors, such as attitudes, beliefs,
and emotions, can also play a role in consumer behavior. Social factors, such as family, friends, and
peer groups, can influence what a person buys and how they use it. Cultural factors, such as cultural
values and customs, can also impact consumer behavior.

Understanding consumer behavior is a complex task, as it involves analyzing a wide range of data
and considering many different factors. However, by studying consumer behavior, businesses can
gain valuable insights into the needs and preferences of their customers, and use this information to
improve their products and marketing efforts.

2. Difference between consumer buying and organizational buying

Consumer buying refers to the process of individuals and households making purchasing decisions
for personal use. This can involve a wide range of products and services, including clothing, food,
electronics, and more. In consumer buying, the primary focus is on the individual consumer and their
needs and preferences.

Organizational buying, on the other hand, refers to the process of making purchasing decisions on
behalf of an organization, such as a company or government agency. Organizational buying typically
involves larger, more complex purchases, such as raw materials, equipment, and other supplies.

There are several key differences between consumer buying and organizational buying:

1. Decision-making process: In consumer buying, the decision-making process is typically driven by the
individual consumer, who may consider factors such as price, quality, and convenience. In
organizational buying, the decision-making process is often more complex and involves multiple
stakeholders, such as department heads and procurement teams, who must consider a wider range
of factors, such as cost, supplier relationships, and the long-term needs of the organization.
2. Purchase size: Consumer buying typically involves smaller purchases, while organizational buying
involves larger purchases.
3. Decision-making authority: In consumer buying, the individual consumer has the final say on the
purchase decision. In organizational buying, the decision-making authority may be held by a group
or committee.
4. Product characteristics: Products purchased by consumers are typically designed for personal use,
while products purchased by organizations are often used in the production of other goods or
services.
5. Buying roles: In consumer buying, the individual consumer plays all roles in the buying process, such
as initiator, influencer, decider, and buyer. In organizational buying, different people or teams may
play different roles in the buying process.

3. Use of consumer behavior knowledge in marketing and public policy decisions

Understanding consumer behavior can be valuable for businesses when making marketing and
public policy decisions. Here are a few ways in which consumer behavior knowledge can be used in
these areas:

1. Marketing: By understanding consumer behavior, businesses can develop marketing strategies that
are more effective in reaching and influencing potential buyers. For example, they can use consumer
research to identify customer needs and preferences, and tailor their marketing messages and
campaigns to meet those needs.
2. Product development: By understanding what consumers are looking for in a product, businesses
can design and develop products that are more likely to meet those needs. This can help to increase
customer satisfaction and loyalty.
3. Pricing: By understanding consumer behavior, businesses can determine the price points that are
most likely to appeal to potential buyers. For example, they may use consumer research to identify
the price range that consumers are willing to pay for a particular product or service.
4. Public policy: Understanding consumer behavior can also be valuable in the development of public
policy. For example, policymakers may use consumer research to understand how people make
purchasing decisions and how they are impacted by different policy decisions. This can help
policymakers to make informed decisions about issues such as taxes, regulation, and consumer
protection.

4. The consumer Movement

The consumer movement is a social and economic movement that seeks to protect and promote the
rights of consumers. It aims to ensure that consumers have access to accurate information about the
products and services they purchase, and that they are treated fairly by businesses.

The consumer movement emerged in the 1960s, in response to a number of issues that were
affecting consumers, such as misleading advertising, poor product quality, and lack of consumer
protection. Since then, the consumer movement has grown and evolved, and it now encompasses a
wide range of organizations and activities that work to protect and promote the interests of
consumers.

The consumer movement is driven by a variety of groups, including consumer advocacy

organizations, government agencies, and individual consumers. These groups work to educate
consumers about their rights, to advocate for stronger consumer protections, and to hold businesses
accountable for their actions.

The consumer movement has had a significant impact on public policy and business practices. It has
led to the development of laws and regulations that protect consumers, such as the Consumer
Protection Act and the Consumer Bill of Rights. It has also led to increased transparency and
accountability in the marketplace, as businesses are now required to disclose more information
about their products and services.
 Unit – 2 Consumer Decision Process

1. Types of consumer decision

There are several types of consumer decisions that individuals make when purchasing goods or
services. These include:

1. Complex decisions: These are decisions that involve a lot of research and consideration, such as
purchasing a car or a house.
2. Habitual decisions: These are decisions that are made based on established habits and routines,
such as purchasing a specific brand of toothpaste or coffee.
3. Impulse decisions: These are decisions that are made quickly and without much thought, such
as purchasing a snack or souvenir while traveling.
4. Routine decisions: These are decisions that are made regularly and with little effort, such as
purchasing groceries or household items.
5. Extended problem-solving decisions: These are decisions that involve a lot of research and
comparison-shopping, such as purchasing a new appliance or electronic device.
6. Limited problem-solving decisions: These are decisions that involve some research and
comparison, but not as much as extended problem-solving decisions. Examples include
purchasing a new shirt or book.

2. Purchase involvement levels and their decision process

Purchase involvement refers to the level of emotional or personal importance that a consumer
places on a particular purchase. Based on the level of purchase involvement, the decision-
making process may vary. Here are the different levels of purchase involvement and the
corresponding decision-making process:
1. High involvement: This refers to purchases that are very important to the consumer and involve
a lot of research and consideration. Examples include purchasing a car or a house. The decision-
making process for high involvement purchases is often more complex and may involve
gathering a lot of information, seeking advice from friends or experts, and comparing different
options.
2. Moderate involvement: This refers to purchases that are somewhat important to the consumer,
but not as much as high involvement purchases. Examples include purchasing a new appliance
or electronic device. The decision-making process for moderate involvement purchases may
involve some research and comparison, but not as much as high involvement purchases.
3. Low involvement: This refers to purchases that are not very important to the consumer and do
not involve much research or consideration. Examples include purchasing a snack or a low-cost
item. The decision-making process for low involvement purchases is often simple and may not
involve much thought or effort.

It's worth noting that the level of purchase involvement can vary from person to person and can
also change over time. For example, a person may view purchasing a car as a high involvement
decision, while another person may view it as a moderate involvement decision. Similarly, a
person may view purchasing a new phone as a high involvement decision when they are in the
market for a new phone, but view it as a low involvement decision when they are not in the
market.

3. Problem or need recognition by consumers

Problem or need recognition is an essential part of the consumer decision-making process. It

refers to the process by which a consumer becomes aware of a problem or need that they want
to solve or fulfill.

There are several ways in which consumers may recognize a problem or need:
1. Personal experience: A consumer may recognize a problem or need through their own personal
experience. For example, if their current phone is slow or has a low battery life, they may
recognize the need for a new phone.
2. External stimuli: A consumer may be made aware of a problem or need through external
stimuli, such as advertising or recommendations from friends or family.
3. Comparisons: A consumer may recognize a problem or need through comparisons with others.
For example, if a friend has a new, high-tech refrigerator, the consumer may recognize the need
for a newer, more advanced refrigerator of their own.
4. Internal stimuli: A consumer may recognize a problem or need through internal stimuli, such as
feelings of boredom, frustration, or discomfort.

Once a problem or need has been recognized, the consumer may then begin the process of
gathering information and considering different options in order to solve the problem or fulfill
the need.

4. Types of consumer's problems

There are many different types of consumer problems that individuals may encounter. Some
common types of consumer problems include:

1. Functional problems: These are problems related to the performance or functionality of a

product or service. For example, a consumer may have a functional problem with a phone if it
has poor battery life or frequently drops calls.
2. Physical problems: These are problems related to the physical appearance or condition of a
product or service. For example, a consumer may have a physical problem with a piece of
clothing if it is ill-fitting or has a stain.
3. Psychological problems: These are problems related to the emotional or psychological impact
of a product or service. For example, a consumer may have a psychological problem with a
particular brand of clothing if they feel that it does not align with their personal style or values.
4. Social problems: These are problems related to the social impact or consequences of a product
or service. For example, a consumer may have a social problem with a particular type of car if
they believe it is not environmentally friendly.
5. Economic problems: These are problems related to the cost or value of a product or service. For
example, a consumer may have an economic problem with a particular brand of clothing if they
feel that it is too expensive relative to its quality.

It's worth noting that consumers may encounter multiple types of problems simultaneously, and
the specific problems that a consumer encounters may vary depending on the individual and the
specific product or service in question.

5. Marketing strategy and problem recognition

Marketing strategy plays a role in problem recognition in several ways:

1. Identifying and addressing consumer needs: Marketing strategies often involve identifying and
understanding the needs and wants of consumers, and developing products or services that meet
those needs. This can help to prevent or solve problems that consumers may be facing.
2. Creating awareness of problems: Marketing strategies may also involve creating awareness of
problems that consumers may not be aware of, or that they may not have considered as
problems. For example, a marketing campaign for a new type of toothpaste may highlight the
benefits of using this toothpaste in order to prevent cavities, thus creating awareness of a
potential problem that consumers may not have been aware of.
3. Highlighting the consequences of not addressing a problem: Marketing strategies may also
involve highlighting the potential consequences of not addressing a particular problem. For
example, a marketing campaign for a home security system may focus on the risks of not
having a system in place, in order to create a sense of urgency and encourage consumers to
address this problem.
 Overall, marketing strategies can play a significant role in shaping the way that consumers think
about and recognize problems, and can influence their decision-making process when it comes
to solving those problems.

6. Problem identification and response

Problem identification and response refers to the process of recognizing and addressing
problems that may arise when using a product or service. This process is an important part of
the consumer decision-making process, as it can help to ensure that consumers are satisfied with
their purchases and that any issues are resolved in a timely and effective manner.

There are several steps involved in the problem identification and response process:

1. Identifying the problem: The first step in this process is to identify the problem. This may
involve recognizing that a problem exists, or it may involve receiving feedback from others
about a problem.
2. Analyzing the problem: Once the problem has been identified, it is important to carefully
analyze it in order to understand the root cause and identify potential solutions.
3. Developing a response plan: After the problem has been analyzed, the next step is to develop a
plan to address it. This may involve implementing a fix or solution, or it may involve taking
other actions such as replacing the product or seeking a refund.
4. Implementing the response plan: The final step in the process is to implement the response plan.
This may involve taking specific actions such as contacting the manufacturer or retailer, or it
may involve making changes to the product or service in order to address the problem.

It's worth noting that the problem identification and response process may vary depending on
the specific problem and the circumstances surrounding it. However, following these steps can
help to ensure that problems are effectively addressed and resolved.
 Unit – 3 Information Search and Evaluation

1. Nature of information search: internal and external search and active and passive
search

Internal search refers to the process of searching for information within an individual's
own memory or knowledge. This can involve recalling past experiences or information
that has been learned, or generating new ideas or solutions based on this stored
knowledge.

External search, on the other hand, refers to the process of seeking information from
external sources, such as through online searches, consulting with friends or experts, or
reading reviews or other information provided by the manufacturer or seller.

Active search refers to the process of actively seeking out information about a product or
service, such as through online searches, consulting with friends or experts, or reading
reviews or other information provided by the manufacturer or seller. Active search is
typically more deliberate and purposeful, and may involve a higher level of effort and
time investment on the part of the consumer.

Passive search, on the other hand, refers to the process of passively encountering
information about a product or service, such as through advertising, word-of-mouth
recommendations, or simply seeing the product in a store. Passive search is typically less
intentional and may require less effort and time on the part of the consumer.

2. Types of Information sought by consumers:

a. Evaluative criteria
b. Alternatives available
c. Alternative characteristics
 Evaluative criteria refer to the specific factors that a consumer considers when evaluating
different products or services. These criteria may vary depending on the individual and
the specific product or service being evaluated, but common evaluative criteria include
price, quality, features, convenience, brand reputation, and customer service.

Alternatives available refer to the range of options that are available to a consumer when
making a purchasing decision. This may include different brands, models, or types of
products or services that are available in the market.

Alternative characteristics refer to the specific features or attributes of each alternative

that the consumer is considering. These characteristics may include things like price,
quality, functionality, and any other factors that are important to the consumer.

3. Sources of Consumer Information

Consumers may use a variety of sources to gather information when making purchasing
decisions. Some common sources of consumer information include:

Personal experience: Consumers may rely on their own past experiences with a product or
service to inform their purchasing decisions.

Word-of-mouth recommendations: Consumers may seek recommendations from friends,

family, or colleagues when making a purchase.

Advertising: Consumers may encounter advertising for products or services through various
channels, such as television, radio, print, or online.

Online reviews and ratings: Consumers may read online reviews or ratings from other
customers to gather information about a product or service.

Manufacturer or seller websites: Consumers may visit the websites of manufacturers or

sellers to learn more about a product or service.
Consultants or experts: Consumers may consult with experts or professionals, such as
salespeople or customer service representatives, to gather information about a product or
service.

Comparison shopping: Consumers may compare the features and prices of different products
or services in order to make an informed decision.

4. Information search in the Internet

The internet has become an increasingly important source of information for consumers,
and many people use it to gather information when making purchasing decisions.
There are several ways that consumers may conduct an information search on the
internet:
a. Search engines: Consumers may use search engines, such as Google or Bing, to find
information about a product or service by entering relevant keywords.
b. Social media: Consumers may use social media platforms, such as Facebook, Twitter, or
Instagram, to find information about a product or service, or to ask for recommendations
from friends or followers.
c. Online reviews and ratings: Consumers may read online reviews or ratings from other
customers to gather information about a product or service.
d. Manufacturer or seller websites: Consumers may visit the websites of manufacturers or
sellers to learn more about a product or service.
e. Comparison shopping websites: Consumers may use comparison shopping websites,
such as PriceGrabber or Shopzilla, to compare the features and prices of different
products or services.
5. Marketing strategy in Information search
In the context of consumer behavior, information search plays a crucial role in the
decision-making process, and marketers and companies can use various strategies to
influence and shape this process. Some potential strategies for marketing in the context of
information search include:

a. Optimizing for search engines: By optimizing their websites and online content for
search engines, companies can make it easier for consumers to find information about
their products or services through search engines. This may involve using relevant
keywords, creating high-quality content, and ensuring that the website is mobile-
friendly and easy to navigate.
b. Leveraging social media: Companies can use social media platforms, such as
Facebook, Twitter, and Instagram, to reach and engage with consumers and provide
them with information about their products or services. This may involve creating
social media profiles, posting regular updates, and responding to customer inquiries or
comments.
c. Encouraging online reviews and ratings: By encouraging customers to leave
reviews and ratings on their websites or third-party review platforms, companies can
provide potential customers with valuable information about their products or
services.
d. Providing detailed product information: By providing detailed product information
on their websites and in other marketing materials, companies' can help consumers
make informed purchasing decisions. This may include information about features,
benefits, pricing, and availability.
e. Offering comparison tools: Companies can offer comparison tools, such as product
comparison charts or calculator tools, to help consumers compare different products or
services and make more informed decisions.
By implementing these and other marketing strategies, companies can help shape the
information search process and influence the purchasing decisions of their customers.
 Unit – 4 Alternative evaluation and choice

The decision stage after problem recognition and information search is alternative evaluation
and selection.

1. Consumers' choice: rational choice, affective choice, attribute-based choice, attitude

based choice

Rational consumer choice is based on logical and systematic thinking. Consumers who
use this approach consider the costs and benefits of different options and make their
decisions based on which option offers the most value for their money. This approach is
often characterized by careful consideration of all available options, as well as a focus on
long-term goals and needs.

Affective consumer choice, on the other hand, is based on emotional and subjective
factors. Consumers who use this approach may be influenced by their feelings, desires,
and personal preferences when making decisions. They may be more likely to make
impulsive or spontaneous purchases based on how they feel in the moment, rather than
considering the long-term consequences of their actions.

Attribute-based choice refers to the process of making a decision based on specific,

observable characteristics or attributes of the options being considered. For example, a
consumer may choose a particular brand of toothpaste because it has a long-lasting flavor
or because it is recommended by a dental professional. In attribute-based choice, the
consumer is focusing on the specific features or benefits of the options being considered
and how they meet their needs or preferences.

Attitude-based choice, on the other hand, refers to the process of making a decision
based on a consumer's overall evaluation or attitude towards a particular option. A
consumer's attitude towards an option may be influenced by their past experiences, their
values and beliefs, and the influence of others. For example, a consumer may choose a
particular brand of clothing because they have a positive attitude towards the brand and
its values, even if the specific features or attributes of the clothing are not particularly
important to them.

2. Evaluative Criteria and it's measurement

Evaluative criteria are the standards or benchmarks that consumers use to evaluate and
compare different options when making a decision. These criteria can be used to assess
the quality, value, or suitability of the options being considered and help consumers
determine which option is the best fit for their needs or preferences.

Evaluative criteria can vary depending on the type of decision being made and the
specific needs or preferences of the consumer. Some common evaluative criteria that
consumers may consider when making a decision include price, quality, convenience,
appearance, performance, and reputation.

There are several methods that can be used to measure evaluative criteria in consumer
decision-making:

Surveys: Surveys can be used to gather data from consumers about the criteria they use
to evaluate products or services. Surveys can be conducted online or in person, and can
be used to gather both quantitative (e.g., ratings on a scale) and qualitative (e.g., open-
ended comments) data.

Focus groups: Focus groups involve bringing together a group of consumers to discuss
and evaluate products or services. Focus groups can be useful for gathering in-depth
insights about consumer decision-making and can help to identify key evaluative criteria
that are important to consumers.

Experiments: Experiments can be used to manipulate certain variables (e.g., price,

branding) and observe how consumers respond. Experiments can be useful for identifying
the relative importance of different evaluative criteria in consumer decision-making.

Online reviews: Online reviews written by consumers can provide valuable insights into
the criteria that consumers use to evaluate products or services. Analyzing online reviews
can help to identify common themes or patterns in consumer decision-making.

Interviews: Interviews with consumers can be used to gather in-depth insights about their
decision-making process and the criteria they use to evaluate products or services.
Interviews can be conducted in person or over the phone, and can be structured or
unstructured.

It is important to use multiple methods to measure evaluative criteria in consumer

decision-making, as this can help to increase the reliability and validity of the data and
provide a more comprehensive understanding of consumer behavior.
3. Consumer decisions rules

a. conjunctive and disjunctive decision rule

b. Lexicographic decision rule
c. Compensatory decision rule

In consumer decision making, a conjunctive decision rule is a rule that requires all the
necessary conditions to be met before making a choice. This means that the consumer
will only consider options that meet all the necessary criteria. For example, a consumer
looking for a new car may have a conjunctive decision rule that requires the car to have a
certain level of fuel efficiency, a certain price range, and a certain level of safety ratings.
The consumer will only consider options that meet all these criteria.

On the other hand, a disjunctive decision rule is a rule that allows the consumer to
consider options that meet any of the necessary criteria. This means that the consumer
will consider options that meet one or more of the necessary criteria, but not necessarily
all of them. For example, a consumer looking for a new car may have a disjunctive
decision rule that allows them to consider options that are either fuel efficient or have a
low price. In this case, the consumer may consider both fuel-efficient cars and low-priced
cars, even if they do not meet both criteria.

A lexicographic decision rule is a decision-making strategy that involves ranking

alternatives based on the importance of their attributes or characteristics, and choosing
the alternative that has the highest rank in the first attribute that is being considered. For
example, if you are choosing a car and the most important attribute for you is fuel
efficiency, you would rank the cars based on their fuel efficiency and choose the one with
the highest fuel efficiency.

A compensatory decision rule, on the other hand, involves weighing the different
attributes or characteristics of the alternatives and considering their trade-offs. For
example, if you are choosing a car and fuel efficiency is important to you, but you also
value a spacious interior and a powerful engine, you might weigh these attributes against
each other and choose the car that provides the best overall balance of the attributes you
value.
4. Marketing strategies in evaluation and choice

There are several strategies that companies can use to influence the evaluation and choice
of consumers. Some of these strategies include:

Positioning: This involves creating a unique and desirable image for a product or service
in the minds of consumers. This can be achieved through advertising, branding, and
packaging.

Pricing: The price of a product or service can influence consumer choice. Companies
may use pricing strategies such as discounts, price promotions, and price bundling to
encourage consumers to purchase.

Product differentiation: Companies can differentiate their products or services from

competitors through features, functionality, quality, or design. This can make their
offerings more attractive to consumers.

Customer experience: The overall customer experience, including the convenience and
satisfaction of the purchase process, can influence consumer choice. Companies may use
techniques such as personalized recommendations or loyalty programs to enhance the
customer experience.

Social proof: Consumers may be more likely to purchase a product or service if they see
others using it or if it has positive reviews. Companies may use social media or customer
testimonials to showcase the popularity and satisfaction of their offerings.

Influencer marketing: Companies may use influencers or brand ambassadors to promote

their products or services to their followers or audiences. This can help to increase
awareness and credibility for the brand.
 Unit 5 – Post Purchase Behavior

1. Post Purchase behavior: reasons and remedies

Post-purchase dissonance, also known as post-purchase regret or buyer's remorse, is the

feeling of discomfort or dissatisfaction that can occur after making a purchase. There can
be several reasons for post-purchase dissonance, including:

1. The product does not meet expectations: If the product does not live up to the
claims made by the manufacturer or seller, or if it fails to perform as expected, the
buyer may experience post-purchase dissonance.

2. The price was too high: If the buyer feels that they paid too much for the product,
they may experience post-purchase dissonance.

3. The buyer had second thoughts: Even if the product meets expectations, the buyer
may experience post-purchase dissonance if they had second thoughts about making
the purchase.

4. The buyer feels they could have made a better choice: If the buyer believes they
could have made a better purchasing decision, they may experience post-purchase
dissonance.

5. The buyer regrets not doing more research: If the buyer wishes they had done more
research before making the purchase, they may experience post-purchase dissonance.
 6. The product has negative consequences: If the product has negative consequences
or is not suitable for the buyer's needs, the buyer may experience post-purchase
dissonance.

7. The buyer is influenced by others: If the buyer is influenced by the opinions of

others and regrets their purchase as a result, they may experience post-purchase
dissonance.

Here are some remedies that may help to alleviate post-purchase dissonance:
1. Return or exchange the product: If the product does not meet expectations or is not
suitable for the buyer's needs, returning or exchanging it may be an effective way to
alleviate post-purchase dissonance.
2. Use the product: Sometimes using the product can help to alleviate post-purchase
dissonance, particularly if the buyer was initially uncertain about its usefulness or
functionality.
3. Talk to the seller: If the product is defective or not as described, the buyer may want to
contact the seller to discuss their concerns and see if a resolution can be reached.
4. Seek support from friends and family: Talking to friends and family about the
purchase and the feelings of dissonance can help the buyer to gain a different perspective
and feel more at ease about the decision.
5. Take time to reflect: Sometimes, taking a step back and reflecting on the reasons for the
purchase and the decision-making process can help the buyer to feel more comfortable
with their decision.
6. Seek professional help: If the feelings of dissonance are particularly strong and are
affecting the buyer's daily life, seeking the help of a professional therapist or counselor
may be helpful.

2. Product Use and Non-use

 Product use refers to the extent to which a consumer actually uses the product they have
purchased. If a consumer uses the product frequently and consistently, they may be more
satisfied with their purchase and experience less post-purchase dissonance. On the other
hand, if a consumer does not use the product or uses it infrequently, they may be less
satisfied with their purchase and more likely to experience post-purchase dissonance.

Nonuse refers to the decision not to use a product, even if it has been purchased. Nonuse
can be caused by a variety of factors, such as the product being unsuitable for the
consumer's needs, the consumer losing interest in the product, or the consumer finding a
better alternative. Nonuse can also lead to post-purchase dissonance, as the consumer
may feel regret about their decision to purchase the product.

Understanding the factors that influence product use and nonuse can be helpful for
marketers in developing strategies to increase consumer satisfaction and reduce post-
purchase dissonance. Some strategies may include providing clear product information
and demonstrating the benefits of the product, offering support and resources to help
consumers get the most out of the product, and allowing for returns or exchanges if the
product does not meet expectations.

3. Product disposition: Methods and marketing strategies

Product disposition refers to the way in which a product is disposed of or discarded after
it has reached the end of its useful life. There are several methods of product disposition,
including:
1. Recycling: Recycling involves breaking down used products and materials into raw
materials that can be used to create new products. This can help to reduce waste and
conserve natural resources.
2. Reuse: Reuse involves using a product again for the same purpose or for a different
purpose. This can include donating or selling used products to others or repurposing them
for a new use.
3. Refurbishment: Refurbishment involves repairing and restoring used products to a like-
new condition. This can include repairing or replacing damaged parts and cleaning and
testing the product.
4. Disposal: Disposal refers to the process of discarding a product that is no longer needed
or wanted. This can include throwing the product away in a landfill or incinerating it.
It's important for companies to consider the environmental impact of their products and to
adopt sustainable product disposition methods whenever possible. This can help to reduce
waste and protect the environment, and may also help to enhance the company's
reputation and build customer loyalty.

Product disposition marketing strategies are designed to influence consumer behavior

and encourage the adoption of sustainable practices for disposing of products. These
strategies can help to reduce waste and protect the environment, and may also enhance a
company's reputation and build customer loyalty.
Here are some examples of product disposition marketing strategies:
1. Education and awareness campaigns: Companies can use marketing campaigns to
educate consumers about the importance of sustainable product disposition and the
benefits of adopting eco-friendly practices. This can include providing information about
recycling programs, reuse options, and the environmental impact of different disposal
methods.
2. Incentives and rewards: Companies can offer incentives or rewards to encourage
consumers to adopt sustainable product disposition practices. This can include discounts
on future purchases, loyalty points, or other rewards for recycling products or choosing
eco-friendly disposal methods.
3. Repair and maintenance services: Companies can offer repair and maintenance services
to help extend the life of products and reduce the need for disposal. This can include
 offering repair or maintenance services directly or providing information and resources to
help consumers repair their products on their own.
4. Resale and donation programs: Companies can promote the reuse of products through
resale or donation programs. This can include offering buyback or trade-in programs for
used products, partnering with organizations that accept donations of used products, or
promoting the sale of used products through online platforms.
5. Sustainable product design: Companies can design products with sustainability and
eco-friendliness in mind, with the goal of reducing waste and the environmental impact
of disposal. This can include using recycled materials, designing products for ease of
repair and maintenance, and choosing packaging materials that are easily recyclable.

4. Satisfaction and Dissatisfaction

Satisfaction and dissatisfaction are two possible outcomes that a consumer may
experience after using a product.

Satisfaction occurs when the product meets or exceeds the consumer's expectations. If the
product performs as expected and meets the consumer's needs, the consumer is likely to
be satisfied with their purchase.

Dissatisfaction occurs when the product does not meet the consumer's expectations or
needs. If the product is defective, does not perform as expected, or is not suitable for the
consumer's needs, the consumer is likely to be dissatisfied with their purchase.
Dissatisfaction can lead to post-purchase dissonance, which is the feeling of discomfort
or regret that can occur after making a purchase.

There are several factors that can influence satisfaction and dissatisfaction after using a
product. These include the product's quality, functionality, convenience, and
compatibility with other products and devices. Companies can use this information to
improve the design and marketing of their products and to increase consumer satisfaction.
 5. Consumer complaint behavior

Consumer complaint behavior refers to the actions that a consumer takes when they are
unhappy with a product or service. Consumer complaints can take many forms, including
verbal complaints to the company or its employees, written complaints to the company or
regulatory bodies, or negative reviews or feedback online.

There are several factors that can influence consumer complaint behavior. These include
the severity of the problem, the consumer's previous experiences with the company, the
consumer's perceived power or influence, and the consumer's personality and values.

Companies can take steps to reduce consumer complaints and improve customer
satisfaction. This may include offering high-quality products and services, providing
clear and accurate information about products and services, and responding promptly and
effectively to consumer complaints and concerns.

It's important for companies to listen to and address consumer complaints, as they can
provide valuable feedback and insights that can help the company to improve its products
and services. Ignoring or dismissing consumer complaints can lead to negative
perceptions of the company and may damage its reputation.

6. Satisfaction and brand loyalty

Consumer satisfaction and brand loyalty are closely related concepts. Consumer
satisfaction refers to the degree to which a product or service meets or exceeds a
consumer's expectations. High levels of consumer satisfaction can lead to increased brand
loyalty, which is the tendency of a consumer to continue purchasing from a particular
brand or company.
There are several factors that can influence consumer satisfaction and brand loyalty,
including:
1. Product quality: High-quality products that meet or exceed a consumer's expectations
are likely to lead to increased satisfaction and brand loyalty.
2. Customer service: Good customer service, including prompt and effective responses to
customer inquiries and complaints, can contribute to increased satisfaction and brand
loyalty.
3. Price and value: Consumers are more likely to be satisfied and loyal to brands that offer
good value for money.
4. Convenience: Brands that are convenient and easy to use are more likely to generate
increased satisfaction and loyalty.
5. Innovation and differentiation: Brands that offer innovative and unique products or
services are more likely to generate increased satisfaction and loyalty.
It's important for companies to focus on increasing consumer satisfaction in order to build
brand loyalty. This may involve investing in product quality, customer service, and other
factors that contribute to a positive consumer experience.
 Unit – 6 Individual Factors influencing consumer behavior

1. Consumer motivation: nature and sources of consumer motivation

Consumer motivation refers to the reasons or drives that influence a consumer's behavior
and decision-making process when purchasing a product or service. These motivations
can be psychological, social, or practical in nature.
Some examples of consumer motivations include:
 Psychological motivations: These are related to a consumer's thoughts, feelings, and
emotions. Examples include the desire for self-expression, the need for security or safety,
and the desire for personal growth or self-improvement.
 Social motivations: These are related to the influence of other people or social groups on
a consumer's behavior. Examples include the desire to conform to social norms or to
impress others.
 Practical motivations: These are related to the functional benefits or practical
considerations that influence a consumer's decision to purchase a product or service.
Examples include the desire for convenience, value for money, or durability.
Understanding consumer motivation can be important for businesses as it can help them
tailor their marketing efforts and product offerings to better meet the needs and desires of
their target customers.

Nature of consumer motivation

The nature of consumer motivation is complex and multifaceted, as it can be influenced
by a variety of internal and external factors.
Internal factors that may influence consumer motivation include an individual's personal
values, beliefs, attitudes, and personality traits. For example, a person who values
sustainability may be motivated to purchase products that are environmentally friendly.
External factors that may influence consumer motivation include social and cultural
influences, as well as marketing and advertising efforts. For example, a consumer may be
 motivated to purchase a product because their friends or peers are using it, or because
they have seen an appealing advertisement for the product.
It is also important to note that consumer motivation is often dynamic and may change
over time as a result of life events, personal growth, and changes in external
circumstances. For example, a consumer who is motivated by practical considerations,
such as value for money, may shift their focus to more emotional or psychological
motivations, such as the desire for self-expression or personal growth, as they progress
through different life stages.

Sources of consumer motivation

There are many sources of consumer motivation, and the specific sources that influence
an individual's behavior can vary depending on their personal values, beliefs, and
circumstances.
Some common sources of consumer motivation include:
 Personal needs and desires: Consumers are often motivated by their own personal needs
and desires, such as the need for security, the desire for self-expression, or the need for
personal growth.
 Social influences: Consumers may be influenced by the actions and opinions of others,
such as friends, family, and peer groups. This can include the desire to conform to social
norms or to impress others.
 Marketing and advertising: Businesses use marketing and advertising to promote their
products and services and to influence consumer behavior. Advertising campaigns that
appeal to a consumer's emotions or personal values can be particularly effective at
motivating purchase decisions.
 Practical considerations: Consumers may be motivated by practical considerations, such
as the desire for convenience, value for money, or durability.
 Personal values and beliefs: Consumers' values and beliefs can influence their behavior
and decision-making, particularly when it comes to purchasing products or services that
align with their values. For example, a consumer who values sustainability may be
motivated to purchase products that are environmentally friendly.
2. Consumer Learning: nature and sources of consumer learning

Consumer learning refers to the process by which consumers acquire knowledge and
develop attitudes and behaviors towards products and brands. It is an ongoing process
that occurs throughout a consumer's lifetime and can be influenced by a variety of
factors, including personal experiences, marketing efforts, and social and cultural
influences.
There are several stages of consumer learning:
1. Attention: The consumer becomes aware of a product or brand.
2. Interest: The consumer becomes interested in the product or brand and wants to learn
more about it.
3. Evaluation: The consumer evaluates the product or brand based on their needs and
desires.
4. Trial: The consumer tries the product or brand to see if it meets their expectations.
5. Adoption: If the product or brand meets the consumer's expectations, they may decide to
adopt it and make it a part of their regular routine.
Understanding consumer learning can be important for businesses as it can help them
tailor their marketing efforts and product offerings to better meet the needs and desires of
their target customers.

Nature of consumer learning

The nature of consumer learning is complex and multifaceted, as it is influenced by a
variety of internal and external factors.
Internal factors that may influence consumer learning include an individual's personal
values, beliefs, attitudes, and personality traits. For example, a person who values
sustainability may be more receptive to learning about environmentally friendly products.
 External factors that may influence consumer learning include social and cultural
influences, as well as marketing and advertising efforts. For example, a consumer may
learn about a product or brand through word-of-mouth recommendations from friends or
through advertising campaigns.
It is also important to note that consumer learning is often dynamic and may change over
time as a result of life events, personal growth, and changes in external circumstances.
For example, a consumer who has previously been motivated by practical considerations,
such as value for money, may shift their focus to more emotional or psychological
motivations, such as the desire for self-expression or personal growth, as they progress
through different life stages.

Sources of consumer learning

There are many sources of consumer learning, and the specific sources that influence an
individual's knowledge and attitudes can vary depending on their personal values, beliefs,
and circumstances.
Some common sources of consumer learning include:
 Personal experiences: Consumers can learn about products and brands through their
own personal experiences, such as using a product or interacting with a brand.
 Marketing and advertising: Businesses use marketing and advertising to promote their
products and services and to influence consumer learning. Advertising campaigns that
appeal to a consumer's emotions or personal values can be particularly effective at
encouraging learning and adoption.
 Social media: Social media platforms, such as Facebook, Instagram, and Twitter, can be
a source of consumer learning as they allow consumers to interact with brands and see
what other people are saying about products and services.
 Word-of-mouth recommendations: Consumers may learn about products and brands
through recommendations from friends, family, and peer groups.
 Educational materials: Consumers may learn about products and brands through
educational materials, such as user manuals, product demonstrations, and online tutorials.
3. Learning and Consumer memory

Consumer learning refers to the process by which consumers acquire knowledge and
develop attitudes and behaviors towards products and brands. It is an ongoing process
that occurs throughout a consumer's lifetime and can be influenced by a variety of
factors, including personal experiences, marketing efforts, and social and cultural
influences.

Consumer memory refers to the way in which consumers retain and recall information
about products and brands that they have encountered in the past. It plays a crucial role in
the consumer decision-making process as it allows consumers to recall information about
products and brands that they have encountered in the past, which can influence their
evaluation of a product or brand and ultimately their purchasing decision.

There are several factors that can influence consumer memory, including:
 Repetition: Repeated exposure to a product or brand can increase the likelihood that it
will be remembered by the consumer.
 Personal relevance: Consumers are more likely to remember information that is
personally relevant to them.
 Emotional impact: Information that evokes strong emotions, such as fear or joy, is more
likely to be remembered by consumers.
 Mental effort: Consumers are more likely to remember information that requires effort
to process and understand.

Understanding consumer memory can be important for businesses as it can help them
tailor their marketing efforts and product offerings to better meet the needs and desires of
their target customers. For example, by creating memorable advertising campaigns or by
highlighting the features and benefits of their products that are most relevant to
 consumers, businesses can increase the likelihood that their products and brands will be
remembered by consumers.

4. Consumer Perception: nature and process of perception

Consumer perception refers to the way in which individuals interpret and understand the
stimuli they encounter in their environment, including products, services, and marketing
messages. It is influenced by a variety of factors, including personal experiences,
attitudes, and cultural and social influences.

The nature of consumer perception is complex and multifaceted, as it is influenced by a

variety of internal and external factors.

Internal factors that may influence consumer perception include an individual's personal
values, beliefs, attitudes, and personality traits. For example, a person who values
sustainability may perceive environmentally friendly products more positively.

External factors that may influence consumer perception include social and cultural
influences, as well as marketing and advertising efforts. For example, a consumer's
perception of a product or brand may be influenced by word-of-mouth recommendations
from friends or by advertising campaigns that appeal to their emotions or personal values.

The process of consumer perception involves several stages through which an individual
interprets and understands the stimuli they encounter in their environment, including
products, services, and marketing messages.
The stages of consumer perception are:
1. Attention: The consumer becomes aware of a product or brand. This can occur through
various channels, such as advertising, word-of-mouth recommendations, or personal
experience.
2. Interpretation: The consumer interprets the information they have received about the
product or brand. This may involve evaluating the product or brand based on their
personal values, beliefs, and needs.
3. Retention: The consumer stores the information about the product or brand in their
memory.
4. Recall: The consumer retrieves the information about the product or brand from their
memory when needed, such as when making a purchasing decision.

Understanding the process of consumer perception can be important for businesses as it

can help them tailor their marketing efforts and product offerings to better meet the needs
and desires of their target customers. By understanding how consumers perceive their
products and brands, businesses can develop marketing campaigns and product features
that are more likely to be positively received by consumers.

5. Personality : nature and types of consumer personality

Consumer personality refers to the unique characteristics and traits that define an
individual's behavior, attitudes, and decision-making processes. It can influence how
consumers perceive and respond to products and brands, and is often used as a way to
segment and target different consumer groups.

The nature of consumer personality

The nature of consumer personality is complex and multifaceted, as it is influenced by a
variety of internal and external factors.
Internal factors that may influence consumer personality include genetics, upbringing,
and personal experiences. For example, an individual's personality may be influenced by
their family background, the values and beliefs they were taught as a child, and the
personal experiences they have had throughout their life.

External factors that may influence consumer personality include social and cultural
influences, as well as marketing and advertising efforts. For example, a consumer's
 personality may be influenced by the cultural norms and values of the society in which
they live, or by the marketing messages they are exposed to.

Types of Consumer personality

There are several theories of personality that have been developed over the years, each of
which proposes different ways of categorizing and understanding individual differences
in personality. Here are a few examples:
 The Five Factor Model: This model proposes that personality can be characterized by
five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and
neuroticism. Openness refers to an individual's willingness to try new things and consider
different perspectives. Conscientiousness refers to an individual's tendency to be
organized and responsible. Extraversion refers to an individual's tendency to be outgoing
and sociable. Agreeableness refers to an individual's tendency to be cooperative and
considerate of others. Neuroticism refers to an individual's tendency to experience
negative emotions, such as anxiety and insecurity.
 The Big Five Personality Traits: This model proposes that personality can be
characterized by five broad dimensions: openness, conscientiousness, extraversion,
agreeableness, and neuroticism. These dimensions are similar to those proposed by the
Five Factor Model.
 The Myers-Briggs Type Indicator: This model proposes that personality can be
characterized by four dimensions: introversion/extraversion, sensing/intuition,
thinking/feeling, and judging/perceiving. Introversion/extraversion refers to an
individual's tendency to be more inwardly or outwardly focused. Sensing/intuition refers
to an individual's tendency to focus more on concrete information or abstract ideas.
Thinking/feeling refers to an individual's tendency to make decisions based on logic or
emotions. Judging/perceiving refers to an individual's tendency to be more structured or
flexible in their approach to the world.
It is important to note that these are just a few examples of the many different theories of
personality that have been developed, and that there is no one "correct" way to categorize
 and understand personality. Different theories may be more or less useful depending on
the specific context in which they are applied.

6. Consumer Personality and brand personality

Consumer personality and brand personality are closely related concepts. Consumer
personality refers to the unique characteristics and traits that define an individual's
behavior, attitudes, and decision-making processes, while brand personality refers to the
set of human characteristics that are attributed to a brand by its target audience.

Brand personality can be an important factor in a consumer's decision to purchase a

product or service, as it can influence how the consumer perceives and interacts with the
brand. For example, a brand that is perceived as friendly and approachable may be more
appealing to consumers who value sociability, while a brand that is perceived as high-
quality and reliable may be more appealing to consumers who value practicality and
efficiency.
Understanding the relationship between consumer personality and brand personality can
be important for businesses as it can help them tailor their marketing efforts and product
offerings to better meet the needs and desires of their target customers. By aligning their
brand personality with the personality traits of their target audience, businesses can create
a strong emotional connection with consumers and increase the likelihood of purchase.

7. Consumer attitudes and attitude components

Consumer attitude refers to the way in which an individual evaluates and feels about a
product, service, or idea. It is a combination of their thoughts, feelings, and behavioral
intentions towards a particular subject and can influence their decision-making and
behavior.
 There are three components of consumer attitudes:
1. Cognitive component: This refers to the thoughts and beliefs that an individual has
about a particular subject. For example, a consumer may believe that a particular brand of
car is reliable and safe.
2. Affective component: This refers to the emotions and feelings that an individual has
about a particular subject. For example, a consumer may have positive feelings towards a
particular brand of clothing because they associate it with happy memories.
3. Behavioral component: This refers to the behavioral intentions and actions that an
individual has towards a particular subject. For example, a consumer who has positive
attitudes towards a particular brand of clothing may intend to purchase more items from
that brand in the future.

8. Attitude formation and change

Consumer attitude formation refers to the process by which an individual develops
attitudes towards a particular product, service, or brand. Attitudes are learned and
developed over time through a variety of experiences, such as personal experiences,
exposure to marketing messages, and social and cultural influences.

There are several factors that can influence consumer attitude formation, including:

Personal experiences: Personal experiences, such as using a product or interacting with

a brand, can influence an individual's attitudes towards it.

Marketing and advertising: Marketing and advertising campaigns can influence an

individual's attitudes towards a product or brand through the messages they communicate
and the emotions they evoke.

Social and cultural influences: An individual's attitudes towards a product or brand may
be influenced by the values and beliefs of the society in which they live or by the
opinions of their friends and family.
 Cognitive processes: An individual's attitudes towards a product or brand may be
influenced by their cognitive processes, such as their ability to process and evaluate
information.

Attitude change strategies

There are several strategies that businesses can use to try to change consumers' attitudes
towards their products or brands. Here are a few examples:
1. Use persuasive communication: Businesses can use marketing and advertising
campaigns to communicate the benefits and value of their products or brands and try to
persuade consumers to change their attitudes.
2. Highlight the consequences of holding a particular attitude: Businesses can try to
change consumers' attitudes by highlighting the negative consequences of holding a
particular attitude, such as missing out on a valuable opportunity or being left behind.
3. Use social influence: Businesses can try to change consumers' attitudes by leveraging
social influence, such as by using celebrity endorsements or by highlighting the positive
attitudes of other consumers.
4. Use emotion: Businesses can try to change consumers' attitudes by evoking emotions
through their marketing and advertising efforts. For example, they may use heart-
warming or funny advertisements to try to change consumers' attitudes.
It is important to note that these strategies may be more or less effective depending on the
specific context and the individual consumer, and that there is no one-size-fits-all
approach to changing consumer attitudes.
 Unit – 7 Group and Family Influences

1. Reference group Influences

A reference group is a group of people who serve as a point of reference in evaluating
one's attitudes, values, and behaviors. Reference groups can have a strong influence on an
individual's consumer behavior, as people often look to their peers and social groups for
guidance on what products and brands to buy, what values to hold, and what behaviors
are acceptable.

The nature of reference groups can play a significant role in shaping an individual's
consumer behavior. A reference group is a group of people who serve as a point of
reference in evaluating one's attitudes, values, and behaviors.
There are several types of reference groups that can influence consumer behavior,
including:
1. Aspirational reference groups: These are groups that individuals aspire to be a part of
and may serve as a source of inspiration for consumer behavior. These groups can have a
strong influence on an individual's consumer choices as they may be seen as a symbol of
status or success.
2. Dissociative reference groups: These are groups that individuals do not want to be
associated with and may avoid certain products or brands to distance themselves from
these groups. These groups can have a negative influence on consumer behavior as
individuals may avoid certain products or brands to avoid being perceived as part of the
group.
3. Normative reference groups: These are groups that individuals feel a sense of
obligation or pressure to conform to the values and behaviors of the group. These groups
can have a strong influence on consumer behavior as individuals may feel pressure to buy
certain products or brands to fit in with the group.
4. Comparative reference groups: These are groups that individuals use as a point of
comparison to evaluate their own attitudes, values, and behaviors. These groups may not
 have as strong of an influence on consumer behavior as the other types of reference
groups, but they can still play a role in shaping an individual's consumer choices.

The degree of influence of a reference group on consumer behavior can vary

depending on a variety of factors, including the type of reference group, the proximity
and level of interaction with the group, and the individual's level of identification with the
group.
1. Type of reference group: Different types of reference groups can have varying degrees
of influence on consumer behavior. Aspirational reference groups, for example, may have
a strong influence on an individual's consumer choices as they may be seen as a symbol
of status or success. Normative reference groups, on the other hand, may have a strong
influence on consumer behavior due to the sense of obligation or pressure to conform to
the values and behaviors of the group. Comparative reference groups may have a lesser
degree of influence on consumer behavior as they are used more as a point of comparison
rather than a source of guidance.
2. Proximity and level of interaction with the group: The proximity and level of
interaction with a reference group can also influence the degree of its influence on
consumer behavior. Individuals who have closer and more frequent interactions with a
reference group may be more influenced by the group than those who have more distant
or infrequent interactions.
3. Individual's level of identification with the group: The individual's level of
identification with a reference group can also impact the degree of its influence on
consumer behavior. Individuals who have a strong identification with a reference group
may be more likely to follow the group's values and behaviors, while those with a weaker
identification may be less influenced.
Overall, the degree of influence of a reference group on consumer behavior can vary
based on a combination of these factors. Understanding the nature and characteristics of
reference groups and the factors that contribute to their influence can be helpful for
businesses and marketers in targeting their marketing efforts and creating effective
messaging.
2. Marketing strategies based on reference group influences

There are several marketing strategies that can be based on reference group influences:

1. Use influencers or celebrities as aspirational reference groups: Influencers or

celebrities can be effective at attracting attention and influencing consumer
behavior. By using them as reference groups, brands can appeal to consumers'
desire to fit in or be perceived a certain way.

2. Highlight the differences between your product or service and your

competitors: By using comparative reference groups, brands can show consumers
how their product or service stands out from the competition. This can be done
through product demonstrations, comparisons, or testimonials.

3. Create a sense of belonging and community: By using membership reference

groups, brands can appeal to consumers' sense of belonging and identity. This can
be done through events, social media communities, or loyalty programs that create
a sense of community around the brand.

4. Use word-of-mouth marketing: Word-of-mouth marketing is a powerful tool for

influencing consumer behavior. By leveraging the power of reference groups,
brands can encourage satisfied customers to share their experiences with others,
which can help to build trust and credibility for the brand.

It's important for brands to carefully consider the reference groups they use in their
marketing efforts to avoid alienating potential customers or causing negative
associations with their brand. Additionally, brands should ensure that their marketing
strategies are aligned with their values and mission to build trust and credibility with
consumers.
 3. Family influences: structure of household, family decision roles and family life
cycle

Family influences can play a significant role in consumer behavior, as individuals often
look to their family members for guidance, support, and approval when making
purchasing decisions. Here are a few ways in which family influences consumer
behavior:

1. Role and status: Family members often have certain roles and status within the
household, which can influence their level of influence on purchasing decisions. For
example, the primary breadwinner in a household may have more influence on financial
decisions, while a stay-at-home parent may have more influence on household and
family-related purchases.

2. Family life cycle: The stage of a family's life cycle (e.g. single, married, children, empty
nesters) can influence their purchasing decisions. For example, a family with young
children may prioritize purchasing products that are safe and age-appropriate, while a
family with empty nesters may prioritize purchasing products that reflect their interests
and lifestyle.

3. Family size: The size of a family can also influence their purchasing decisions. For
example, a larger family may need to purchase products in bulk or prioritize value for
money, while a smaller family may have more flexibility in their purchasing decisions.

4. Family values and beliefs: Family values and beliefs can also influence consumer
behavior. For example, a family that places a strong emphasis on environmental
sustainability may prioritize purchasing eco-friendly products, while a family that values
health and wellness may prioritize purchasing healthy, natural products.

The structure of a household can influence consumer behavior in several ways:

1. Household size: The size of a household can influence the types of products and services
that are purchased, as well as the quantities in which they are purchased. For example, a
larger household may need to purchase products in bulk or prioritize value for money,
while a smaller household may have more flexibility in their purchasing decisions.

2. Household composition: The composition of a household (e.g. single, married, children,

and empty nesters) can also influence purchasing decisions. For example, a household
with young children may prioritize purchasing products that are safe and age-appropriate,
while a household with empty nesters may prioritize purchasing products that reflect their
interests and lifestyle.

3. Household income: The income of a household can influence the types of products and
services that are purchased, as well as the price points at which they are purchased. For
example, a household with a higher income may have more flexibility in their purchasing
decisions and be willing to pay more for premium products and services, while a
household with a lower income may need to prioritize value for money.

4. Household roles and responsibilities: The roles and responsibilities within a household
can also influence purchasing decisions. For example, the primary breadwinner in a
household may have more influence on financial decisions, while a stay-at-home parent
may have more influence on household and family-related purchases.

In the family decision-making process, different members of the family often play
different roles that contribute to the overall purchasing decision. These roles can include:

1. Initiator: The initiator is the member of the family who initiates the idea to purchase a
product or service. They may initiate the decision due to a specific need or desire.

2. Influencer: The influencer is the member of the family who has the most influence on
the purchasing decision. This may be due to their expertise or knowledge in the area,
their perceived authority within the family, or their ability to persuade others.
3. Decider: The decider is the member of the family who makes the final purchasing
decision. They may consider the input of other family members, but ultimately have the
final say on whether to make the purchase.

4. Buyer: The buyer is the member of the family who physically makes the purchase, either
by purchasing the product or service themselves or by ordering it online.

5. User: The user is the member of the family who will use the product or service. They
may have specific needs or preferences that need to be considered in the purchasing
decision.

It's important for marketers to understand the roles that different members of the family
play in the decision-making process, as this can help them to tailor their marketing efforts
and messaging to effectively reach and influence the target audience.

The different stages of the family life cycle can influence consumer behavior in the
following ways:

1. Single: Individuals who are single may prioritize purchasing products and services that
reflect their personal interests and lifestyle, such as travel, dining out, and entertainment.
They may also have more flexibility in their purchasing decisions due to the absence of
financial responsibilities such as child-rearing expenses.

2. Married: Couples who are married may prioritize purchasing products and services that
reflect their shared interests and lifestyle, such as home furnishings, appliances, and
vehicles. They may also need to consider the needs and preferences of their spouse in the
purchasing process.

3. Children: Families with young children may prioritize purchasing products and services
that are safe and age-appropriate for their children, such as toys, clothing, and educational
materials. They may also have less disposable income due to the added expenses of child-
rearing.
4. Empty nesters: Families with empty nesters may prioritize purchasing products and
services that reflect their interests and lifestyle, such as leisure activities, travel, and home
improvements. They may also have more disposable income due to the absence of child-
rearing expenses.
 Unit – 8 Social class and cultural influences

1. Social class hierarchy and consumption behavior in Nepal

In Nepal, social class is traditionally determined by one's occupation, wealth, and

educational attainment, among other factors. There are several distinct social
classes in Nepal, including the Brahmin (priestly) class, the Kshatriya (warrior)
class, the Vaishya (merchant) class, and the Sudra (laborer) class.

Consumption behavior in Nepal is heavily influenced by one's social class. For

example, those in higher social classes tend to have more disposable income and
therefore may be able to afford more luxury goods and services. They may also be
more likely to engage in conspicuous consumption, or the act of buying and
displaying luxury goods as a way of showing off one's wealth and status.

On the other hand, those in lower social classes may have limited disposable
income and may need to be more careful about their spending. They may prioritize
necessities such as food, shelter, and clothing over luxury goods and may be more
likely to engage in frugal consumption, or the act of carefully managing one's
resources in order to stretch their budget as far as possible.

It's worth noting that Nepal is a developing country, and as such, the social class
hierarchy and consumption patterns may differ from those in more developed
countries. Additionally, social and economic conditions in Nepal have been
changing rapidly in recent years, and these changes may be affecting traditional
patterns of social class and consumption behavior.
2. Cultural and sub-cultural influences

Culture refers to the shared values, beliefs, and practices of a group of people, and
it can have a significant influence on consumer behavior. Culture shapes our
attitudes, behaviors, and decision-making processes, including how we make
purchasing decisions.

Subculture refers to a smaller group within a larger culture that shares its own
unique values, beliefs, and practices. Subcultures can also influence consumer
behavior, as people within a subculture may prioritize certain products or brands
that align with their values and identity.

Following are the factors responsible for cultural and subcultural influences:

1. The nature of culture refers to the characteristics and qualities of a culture

that make it distinct from other cultures. These characteristics can include
things like language, traditions, beliefs, values, and behaviors. The nature of
culture can influence consumer behavior in several ways. For example, if a
culture places a high value on tradition and history, individuals within that
culture may be more likely to purchase products that are associated with
their cultural heritage. Similarly, if a culture values certain characteristics or
attributes in products, such as durability or quality, people within that culture
may be more likely to prioritize those attributes when making purchasing
decisions.

2. Cultural dynamism refers to the degree to which a culture is open to

change and innovation. A culture that is highly dynamic may be more open
to new ideas and ways of doing things, while a culture that is more static
may be more resistant to change. Cultural dynamism can influence consumer
behavior by affecting how open people are to trying new products and
 experiences. For example, if a culture is highly dynamic, people within that
culture may be more likely to try new products and brands, while a culture
that is more static may be more resistant to change and may be more loyal to
established brands and products.

3. Values are the beliefs and principles that guide behavior and decision-
making within a culture. They can be individual values, shared values, or
values that are held by the entire culture. Values can influence consumer
behavior by shaping what people consider important in their purchasing
decisions. For example, if a culture values sustainability, individuals within
that culture may be more likely to purchase environmentally friendly
products. Similarly, if a culture values status and prestige, people within that
culture may be more likely to purchase luxury goods as a way of showing
off their wealth and status.

4. Norms are the rules and expectations that regulate behavior within a culture.
They can be formal norms, such as laws, or informal norms, such as social
conventions. Norms can influence consumer behavior by dictating what is
considered acceptable or unacceptable within a culture. For example, if a
culture has strict norms around dress and appearance, individuals within that
culture may be more influenced by fashion trends and may be more likely to
purchase clothing and accessories that are considered fashionable.

5. Myths are traditional stories, legends, or beliefs that are held within a
culture and that may influence behavior and decision-making. Myths can
influence consumer behavior by shaping people's perceptions and beliefs
about certain products or brands. For example, if a myth exists within a
culture that a certain brand of car is associated with success and status,
 people within that culture may be more likely to purchase that brand of car
in order to signal their own success and status.

3. Cross – cultural marketing

Cross-cultural marketing refers to the practice of marketing products or services to

consumers in different cultures. It involves understanding and adapting to the
cultural differences and similarities of the target market in order to effectively
communicate the value of the product or service.

Effective cross-cultural marketing requires an understanding of the cultural values,

beliefs, and behaviors of the target market, as well as an understanding of how
these factors influence consumer decision-making. It also requires adapting
marketing strategies and tactics to align with the cultural context of the target
market. This may involve using different marketing channels, adapting the
messaging and branding, and using local language and imagery.

Some key considerations for cross-cultural marketing include:

 Cultural values and beliefs: Understanding the cultural values and beliefs of
the target market can help marketers tailor their messaging and branding to
align with these values.

 Language and communication style: Using local language and adapting

communication style to fit the cultural context of the target market can help
improve the effectiveness of marketing efforts.

 Marketing channels: Different cultures may have different preferred

marketing channels, such as social media, television, or print media. It's
 important to understand which channels are most effective for reaching the
target market.

 Cultural sensitivity: It's important to be culturally sensitive when marketing

to consumers in different cultures. This includes avoiding cultural
stereotypes and being respectful of local customs and traditions.

Cross-cultural marketing can be challenging, but it can also be a powerful way to

connect with and engage consumers in different parts of the world. By
understanding and adapting to the cultural context of the target market, marketers
can effectively communicate the value of their products and services and build
strong, lasting relationships with consumers.