Q.1 What is Consumer Behaviour?

Ans:- The behavior that consumers display in searching for, purchasing, using, evaluating, and
disposing of products and services that they expect will satisfy their needs

Mental and physical activities undertaken by household and business customers that result in
decisions and actions to pay for, purchase and use products and services.

An important part of the marketing process is to understand why a customer or buyer makes a
purchase. Without such an understanding, businesses find it hard to respond to the customer’s needs
and wants.
For a marketing manager, the challenge is to understand how customers might respond to the
different elements of the marketing mix that are presented to them. If management can understand
these customer responses better than the competition, then it is a potentially significant source of
competitive advantage.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to
analyze buying behavior for:
1. Buyers’ reactions to a firms marketing strategy has a great impact on the firm’s success.
2. The marketing concept stresses that a firm should create a marketing mix (MM) that satisfies
(gives utility to) customers, therefore need to analyze the what, where, when and how consumers
buy.

Q.2 Objective of Studying Consumer Behaviour?

Ans:-
• Understand the development of the marketing concept.
• Define customer value, satisfaction, and retention.
• Exploring the link between marketing and Customer orientation
• Definition, role and importance of consumer behavior for a marketer
• Identify the major factors that influence a consumer’s purchase decision and behavior
• A simplified model of the consumer decision-making framework
• Define consumer behavior.
• Describe the societal marketing concept.

Q.3 Scope of Consumer Behavior.

Ans:- The scope covers:
• What they buy .
• Why they buy .
• When they buy .
• Where they buy it .
• How often they buy it .
• How do they buy it.

Q.4 What is Organizational Buying vs. Consumer Buying?

Ans:- 1. Consumer buyers are those who purchase items for their personal consumption .
Final (or ultimate) consumers normally purchase for:
• Personal,
• Family, or
• Household use
2. Organisational buyers are those who purchase items on behalf of their business or organisation.
Organizational consumers purchase for:
• Further production,
• Usage in operating the organization, and/or
• Resale to other consumers

Q.5 Consumer Behaviour is Interdisciplinary in nature. Comment.

Ans:- The discipline finds its roots in the “marketing concept” and has been essentially
interdisciplinary in nature.

As a subject it emerged as a separate field of study in the 1960s.• Initially the focus lay in the
marketers’ attempts to study the causes of consumer behavior; the assumption was that if they could
identify the reasons behind consumption behavior, they would be able to predict it; and if they could
predict consumer behavior, they could influence it.

• Psychology: This includes the study of the individual as well as the individual determinants in
buying behavior, viz., consumer perception, learning and memory, attitude, self-concept and
personality, motivation and involvement, attitudes and attitudinal change and, decision making.

• Sociology: This includes the study of groups as well as the group dynamics in buying behavior,
viz., family influences, lifestyles and values, and social group influences.

•Social psychology: This includes the study of how an individual operates in group/groups and its
effects on buying behavior viz, reference groups and social class influences.

• Anthropology: This is the influence of society on the individual viz., cultural and cross-cultural
issues in buying behavior, national and regional cultures etc.

• Economics: This is the study of income and purchasing power, and its impact on consumer
behavior. The underlying premise is that consumers make rational choices while making purchase
decisions. While resourcse are limited and needs and wants many, consumers collect information,
and evaluate the various alternatives to finally make a rational decision.

Q.6 Impact of Technology on Consumer Behaviour.

Ans:- Technology And Its Impact On Consumer Behavior:-

1. Customers are connected

Almost everybody is living two lives, a vibrant online life and a somewhat boring offline one. We
are all connected in one platform or another through our network of friends. We also own more than
one device that keeps us updated. This means that we thrive on being active and informed online,
and ExactTarget Marketing content verified this from a study they did, whereby 91% of consumers
indicated that access to content across all devices was important.

2. Consumer expectations have changed

In the past, as a company you set the times that you were open for business, and customers had to
put up with it or stay without that particular product. Technology has totally changed that, with the
introduction of e-commerce and mobile phones, customers can access products at anytime. They
have raised expectations on what is acceptable customer service and what is not. As a business, you
have to keep up with the changed consumer behavior or be out of business.
3. Consumer expectations have changed
In the past, as a company you set the times that you were open for business, and customers had to
put up with it or stay without that particular product. Technology has totally changed that, with the
introduction of e-commerce and mobile phones, customers can access products at anytime. They
have raised expectations on what is acceptable customer service and what is not. As a business, you
have to keep up with the changed consumer behavior or be out of business.

TECHNOLOGY - STAGES OF TRANSITION

About a century ago, no one could even imagine shopping from home through internet or virtual
stores. But, now it became a reality.

PRE - 1800s: TRADITIONAL SHOPS

Barter system was common in this era. Goods produced at one place is sold locally and transported
to far away places. Most of the retail business is done in small scale as a family owned
establishment.

1800s:THE BIRTH OF DEPARTMENT STORES

During this era, the transportation system became more popular and effective. As it is less costly,
people began to use this mode for transporting goods to distant places. Then the retail sector began
to grow. The largest retail store “Marble Palace” was built by Alexander Stewart in 1846. It became
the first department store and later it influenced others to develop stores in this design. The
introduction of small paper roll recording each transaction resulted in first “sales receipts”.

Later, this became inevitable for doing any business. Then department stores began to flourish in
our country.

LATE 1800s-MID 1900s: MAIL ORDER AND CATELOGUES

This is a period of boom for mail order business. During this period, Catalogues became popular.
Mail order catalog ues specifying name of product and price helped to keep a record for sending
goods to long distance.

1900s: BABY BOOM

After the Second World War, a population explosion known as “baby-boom” increased the
consumer demand. As a result, new highways, shopping centers etc. were emerged. Then the first
credit card program is launched in America 1958. In 1960 the debit card is invented. In 1962,
discount stores like Walmart, Target etc. were opened.

LATE 1900s: THE ERA OF BIG BOX STORES

With the emergence of large bulk item stores, department store faces a decline in their business. Big
box store chains got a place in the minds of consumers as they can purchase all items at one
location. Walmart became largest retail store.
Amazon.com became very active, selling goods online through internet.

2000s-NOW: THE INTERNET AGE

During the internet age, many retail shops and department stores came to an end. They close the
doors as the consumer turned to online shopping from their homes. Amazon became the largest
online retailer. In 2006 Face book debuted, and companies could promote themselves on social
network. In 2008, Apple and iTunes, became the largest music retailer in the world.

TRENDS OF INNOVATION
In order to survive, a business needs to customize its products.
Consumers are voting again and again (through their purchases) for devices they offer peace of
mind and anticipate their needs.
They offer convenience and peace of mind to consumers”. Following are some of the innovative
trends shown impact on consumer behavior:

1. SMART PHONES
Out of 5 billion people who are using mobile phones, 1.08 billion people are smart phone users.
People prefe r smart phones than normal mobile phone because of the multi-function utilities of
smart phones.
They can be used for the purpose of gaming, apps, mobile advertising and social networking.
There is a direct impact between increasing demand of smart phone a nd purchase pattern of
consumers. Smartphone increases the convenience of users as it helps for e-mail, chat, shopping etc.
Smart phones work as a useful shopping aid, for nstance, getting instant shopping, scanning product
bar code etc.

2. SOCIAL MEDIA:- Social media is a platform for communication both for consumers and
sellers. Consumers seek advice on making purchase whether consumer durable or service through
social networking sites like Face book and Google. Similarly many companies are using them to in
fluence consumer opinions and buying patterns.

3.ONLINE EDUCATION
Many students are moving from traditional method of learning to E-learning. Online segment is
categorized into different sub-segments such as K-12 learning,
Higher Ed learning and Corporate E-learning . Online education helps the students to get access of
highly qualified professors across different geographical regions.

4. MOBILE PAYMENTS
Now days, consumers are making payment online. Mobile payment facilitates transfer of money
through mobile phone. It can be made through premium SMS, Direct mobile billing, Mobile web
payments, and contactless NFC (Near Field Communications).

5. MOBILE APPS
Mobile apps can greatly influence the consumer behavior. Now a days, mobile apps are widely use
in every in dustry like banking, consumer goods, manufacturing, media & entertainment,
pharmaceuticals, travel and hospitality.

Q.7 Impact Of Globalization on Consumer Behaviour?

Ans:- 1. Spreading of multiculturalism, and better individual access to cultural diversity (e.g.
through the export of Hollywood and Bollywood movies).

 Greater international travel and tourism

 Greater immigration, including illegal immigration.
 Spread of local consumer products (e.g. food) to other countries (often adapted to their culture) 
World-wide fads and pop culture such as Pokemon, Sudoku, Numa Numa , Origami, Idol
series, YouTube, Orkut, Facebook and Myspace.
 World wide sporting events such as FIFA World Cup and the Olympic Games. Formation or
development of a set of universal values.