INTRODUCTION

As a consumer we are all unique and this uniqueness is reflected in the consumption pattern

and process of purchase . The study of consumer behavior provides us with reasons why

Consumers differ from one another in buying using products and services. We receive stimuli

from the environment and Specifics of the marketing strategies of different products and

services , and responds to these stimuli in terms of either Buying or not buying product . In

between the stage of receiving the stimuli and responding to it the consumer goes though the

process of making his decision.

The study of consumers helps firms and organizations improve their marketing Strategies

by understanding issues such as how

The psychology of how consumers think , feel , reason , and select between different
Alternatives ( e.g. ., brands , products, and retailers);

The psychology of how consumers is influenced by his or her environment ( eg ; culture,

family, signs , media)

Limitations in consumer knowledge or information processing abilities influence decisions

and marketing outcome.

How consumer motivation and decision strategies differ between products that differ in
their level of importance or interest that they entail for the consumer ; and

How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.

One official definition of consumer behaviour is The study of individuals, groups , or

Organizations and the processes they use to select , secure , use and dispose, of products , Services ,

experiences , or ideas to satisfy needs and impacts that these processes have on the consumer and

society . Although it is not necessary to memorize this definition , it brings up some useful points.
 Behaviour occurs either for the individual , or in the context of a group (e.g., friends

influence what kinds of clothes a person wears ) or an organization ( people on job make

decisions as to which products the firm should use ).

Consumer behaviour involves the use and disposal of products as well as the study of

how they are purchased. Product use is often of great interest to the marketer , because

this may influence how a product is best positioned or how can we encourage increased

consumption. Since many environment problems result from product disposal (e.g., motor

oil being sent into sewage systems to save the recycling fee , or garbage piling up

landfills ) this is also an area of interest).

Consumer behaviour involves services and ideas as well as tangible products.

The impact of consumer behaviour on society is also of relevance . For example ,

aggressive marketing of high fat foods , or aggressive marketing of easy credit , may

have serious repercussions for the national health and economy.

People buy things to satisfy two basic needs (1) physical or material , and (2)

psychological or mental. The buying decision is influenced by these two basic

with certain other external factors . Persons buying the same product may have

different reason to do so , and person having same reason may buy different

product. The study of these physical & psychological factors along with various

other factors that influence the consumer to make a buying decision is therefore

of utmost important for marketers , these constitute the subject matter of consumer

behaviour. The study of consumer behavior is quit complex , because of many

variables involved and their tendency to interact with & influence each other and

the buyer. These variables are divided in to major sections that have been

identified as the most important general influences on consumer behaviour.

There are four applications of consumer behaviour :

The most obvious is for marketing strategy i.e., for making better marketing campaigns. For

example, by understanding that consumers are more receptive to food advertising when they are

hungry , we learn to schedule snack advertisements late in the afternoon . By understanding the

new products are usually initially adopted by a few consumers and only spread late , and then

only gradually , to the rest of the population , we learn that (1) companies that introduce new

products must be well financed so that they can stay float until their products become a

commercial success and (2) it is important to please initial customers , since they will in turn

influence many subsequent customers brand choices .

A second application is public policy. In the 1980s , Accutane , a near miracle cure for acne ,

was introduced . Unfortunately, Accutane resulted in severe birth defects if taken by pregnant

women. Although physicians were instructed to warn their female patients of their female

patients of this, a number still became pregnant while taking the drug. To get consumers

attention , the Federal Drug Administration (FDA) took the step of requiring that very high

graphic pictures of deformed babies be shown on the medicine containers.

Social marketing involves getting ideas across to consumers rather than selling something. Marty

Fishbone , a marketing professor , went on sabbatical to work for the Centres for Disease Control

trying to reduce the incidence of transmission of disease through illegal drug use . The best

solution , obviously , would be if we could get illegal drug users to stop. This , however , was

deemed to be infeasible. It was also determined that the practice of sharing needles was too
 ingrained in the drug culture to be stopped. As a result , using knowledge of consumers attitude,

R.d Fishbone created a campaign that encouraged the cleaning of needles in bleach before

sharing them , a goal that was believed to be more realistic.

As a final benefit , studying consumer behaviour should make us better consumers. Common

sense suggests , for example, that if you buy 64 liquid ounce bottle of laundry detergent , you

should pay less per ounce than if you bought two 32 ounce bottles. In practice , however , you

often pay a size premium by buying the larger quantity . In other words , in this case, knowing

this fact will sensitize you to need to check the unit cost labels to determine if you really

getting a bargain.

There are several units in the market that can be analysed. Our main

thrust in this course is the consumer. However , we will need to analyse our own firms strength

and weakness and those competing firms . Suppose, for example , that we make a product aimed at

older consumers , a growing segment . A competing firm that targets babies , a shrinking market , is

likely to consider repositioning toward our market . To assess a competing firms potential threat ,

we need to examine its assets (e.g., technology , patents , market knowledge , and awareness of its

brands ) against pressures it faces from the market . Finally , we need to assess conditions ( the

marketing environment ). For example , although we may have developed a product that offers great

appeal for consumers , a recession may cut demand dramatically.

 1.1 WHAT IS IT ?

Consumer Behavior is a branch which deals with various stages a consumer

goes through before purchasing products or services for his end use .

During Christmas , the buying tendencies of consumers increase as

compared to other months. In the same way during Valantines week , individuals are often seen

purchasing gifts for their partners . Fluctuating in their finanacial markets and recession decrease the

buying capacity of individuals.

In laymans language consumer behaviour deals with the buying of

individuals.

The main catalyst which triggers the buying decision of an individual is

need for a particular product/service. Consumers purchase products and services as and when need

arises.
 1.2 CONCEPT

Any individual who purchases goods and services from the market for his/her

end-use is called a consumer.

In simple words a consumer is one who consumes goods and services available

in the market.

Example Tom might purchase a tricycle for his son or Mike might buy a shirt

for himself. In the above examples, both Tom and Mike are consumers.

Behavior occurs either for the individual , or in the context of a group (e.g.,

friends influence what kinds of clothes a person wears ) or an organization (people on the job make

decisions as to which products the firm should use).

Consumer behaviour is the study of individuals , groups , organizations and the

processes they use to select , secure, and dispose of products , services, experiences, or ideas to satisfy

needs and the impacts that these process have on the consumer and society. It blends elements from

psychology. Sociology , social anthropology and economics. It attempts to understand the decision

making processes of buyers, both individually and in groups. It studies characteristics of individual

consumers such as demographics and behavioural variables in an attempt to understand peoples wants.

It also tries to assess influences on the consumer from groups such as family , friends, reference groups

and society in general.

 1.3 EMERGENCE

This study on Indian consumer behaviour is aimed at helping

Malaysian businessmen to get better understanding of the Indian market place thus enabling them to

embark on selected strategies to effectively reach the Indian consumers.

India is a big country with 28 states , over one billion people

and 12 dialects / languages.

From the market perspective , people of India comprise different

segments of consumers , based on class , status , and income.

An important and recent development in Indias consumerism is

the emergence of the rural market for several basic consumer goods . Three-fourths of Indias

population lives in rural areas , and contribute one-third of the national income. This rural population is

spread all over India , in close to 0.6 million villages.

India is a lucrative market even though the per capita income in

India is low and it remains huge market , even for costly products.

Among the total 164.8 million house holders in India , 80.7

million households comes low income group (<$581 ) , followed by 50.4 million lower middle income

households ($581 to $1162) , 19.7 million middle income group ($1162 to $110) , 8.2 million upper

middle income group ($1790 to $2465) and 5.5 million high income group (>$2465).
 1.4 Meaning and Defination

Meaning :-
Any individual who purchases goods and services from the market for

his/her end-use is called a consumer.

Consumer Behavior is a branch which deals with various stages a consumer goes

through before purchasing products or services for his end use .

It is the study of consumers and the processes they use to choose , use (consume)
and dispose of products and services. A more in depth definition will also include how that
process impacts the world. Consumer behviour incorporates ideas from several sciences including
psychology , biology , chemistry , and economics.

Defination :-
According to Walter and Paul ,consumer behaviour is the process whereby
individuals decide whether , what , where , how , and to purchase goods and sevices.

Consumer behaviour is to know about the consumers way to obtain , use and
dispose products . Its important for marketing to know the consumer behaviour by using different
strategies . There are so many different ways to iinfluene consumer like new product , promotion ,
advertisement , good quality , and price , etc.

Individuals or groups acquiring , using and disposing of products , services , ideas or experiences

Includes search for information and actual purchase.

Includes an understanding of consumer thoughts , feelings , and actions.

 We are concern with.

Why consumer make the purchases that they make ?

What factors influence consumers purchase ?

Why people behave as they do ?

What is the mental process involved ?

Who buys ?

What are their choice criteria ?

When do they buy ?

How do they buy ?

Likely buyers reaction to a marketing strategy.

 1.5 CHARACTERISTICS OF CONSUMER BEHAVIOUR

Consumer behaviour is a field of psychology that studies the way individual spend

money . Consumer is an important consideration in the field of such as economics and marketing , sine

understanding how consumers make their decision can help predict how consumers will react to

different situations . Consumer behaviour often exhibits several common characteristics .

Information search

The search for information is a common characteristics of consumer behaviour.

Consumers can not purchase goods and services if they are unaware that a good or service exists .

When a consumer decides to buy a certain item , his decision must be based on information that he

has gathered about what products or services are available to fulfill his needs . Advertisement and

word of mouth are common ways consumers find information . A consumr with internet access can

search for reviews of products and product alternatives.

Brand loyalty

Brand loyalty is a category of the consumer behaviour . Brand loyalty is the tendency of

the consumer to buy the product or the service forms the certain company that she likes or equates

with having high quality goods and services . An information search takes the time and effort ; brand

loyalty is a way consumer avoid the time and effort involved in an information search.
Price Elasticity of demand

Price elasticity of demand is an economic concept and important . Characteristics of

consumer behaviour . For instance if the price of a luxury , such as baseball ticker , rose 30% ,

consumer might stop buying baseball ticker and buy more movie or basketball tickets as a substitute .

Goods such as gasoline milk and other essentials tend to be inelastic . Gas might go up price by 30% ,

but consumers may buy it still in the same quantity since many people rely on ga for commuting and

other essential transportation.

 1.6 TYPE OF CONSUMER BEHAVIOUR

Wants are unlimited and the resources are satisfy these wants are limited . So

consumers think rationally before buying any product. Buying toothpaste is totally different from buying

a luxury car . The more expensive the goods is , the more information is required by the consumer .

There are four types of consumer buying behaviour on the basis of buyer involvement while buying

any product.

High involvement Low involvement

Significant differences between Complex buying behaviour Variety seeking behaviour
brands (motor cycle) ( washing detergent )
Few differences between brands Dissonance buying behaviour Habitual buying bhaviour
(floor tiles) (toothpaste)

High involvement :

The term means when the consumer is highly involved while buying

the product . Generally this situation happens in case of expensive or luxurious goods . Like while

buying a diamond necklace a consumer is highly involved.

Low involvement :

The term means when the consumer is not highly involved while

buying the product . It happens in case of low price goods . Like while buying a toothpaste a consumer

is not highly involved.

Significant differences between brands :

It means when there are significant differences between brands.

 Few differences between brands :

It means when there are very little differences between brands.

1. Complex buying behaviour :

When the consumer is highly involved in the buying and there are

significant differences between the brands then it is called complex buying behaviour. So in this case

the consumer must collect proper information about the product features and the market must provide

detailed information regarding the product attributes. For e.g. , Consumer while buying a motor cycle is

highly involved in the purchase and has the knowledge about significant differences between brands.

2. Variety seeking behaviour

In this case consumer involvement is low while buying the

product but there are significant differences between the brands . Consumers generally buy different

products not due to dissatisfaction from the earlier product but due to seek variety. Like every time

they buy different washing detergent just for variety. So it is the duty of the marketer to encourage

the consumer to buy the product by offering those discounts , free samples and by advertising the

product a lot .

3. Dissonance buying behaviour

Here consumer is highly involved in the purchase but there are few

differences between brands . Like consumer while buying a floor tile buy them quickly as there are

few differences between brands.

4. Habitual buying behaviour

In this case there is low involvement of the consumer and there are few

differences between brands . The consumer buys the product quickly. For e.g. Toothpaste.