Consumer Behaviour

1. What is Consumer Behaviour?

Consumer Behaviour is the study of how individuals, groups, or organizations
select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy
their needs and desires.
2. Key Elements of Consumer Behaviour
 Psychological Factors – Perception, motivation, beliefs, and attitudes
 Personal Factors – Age, occupation, lifestyle, economic status
 Social Factors – Family, friends, social class, reference groups
 Cultural Factors – Traditions, values, cultural background
3. Consumer Decision-Making Process
1. Problem Recognition – The consumer realizes a need or problem.
2. Information Search – They gather information about possible solutions.
3. Evaluation of Alternatives – They compare different brands and products.
4. Purchase Decision – The consumer decides to buy a product.
5. Post-Purchase Behaviour – They evaluate their satisfaction or
dissatisfaction.
4. Factors Influencing Consumer Behaviour
1. Economic Factors – Income level, price, budget
2. Psychological Factors – Motivation, perception, learning
3. Social and Cultural Factors – Family, society, religion
4. Technological Factors – Digital influence, online shopping trends
5. Types of Consumer Behaviour
 Routine Buying – Daily-use products like milk, soap
 Limited Decision-Making – Clothes, gadgets
  Complex Buying – Cars, houses, expensive products
6. Changing Trends in Consumer Behaviour
 Impact of E-commerce – More consumers prefer online shopping.
 Digital Marketing Influence – Social media affects buying decisions.
 Environmental Awareness – Demand for eco-friendly products is
increasing.

Consumer Behaviour
1. Concept of Consumer Behaviour
Consumer Behaviour refers to the study of how individuals, groups, or
organizations choose, buy, use, and dispose of products and services to satisfy
their needs and wants. It helps businesses understand customer preferences,
decision-making patterns, and buying behaviour.
2. Features of Consumer Behaviour
1. Dynamic in Nature – Consumer preferences and behaviours change over
time.
2. Influenced by Multiple Factors – Psychological, social, cultural, economic,
and personal factors shape consumer decisions.
3. Involves Decision-Making Process – Consumers evaluate different products
before making a purchase.
4. Varies Across Consumers – Every individual has different buying
preferences based on their needs and background.
5. Impact of Technology – Digital platforms, e-commerce, and social media
influence buying decisions.
3. Importance of Consumer Behaviour
 1. Helps in Understanding Customer Needs – Businesses can develop better
products based on consumer preferences.
2. Effective Marketing Strategies – Understanding consumer behaviour helps
in targeted marketing.
3. Enhances Customer Satisfaction – Companies can improve customer
experience by addressing their expectations.
4. Boosts Business Growth – Analyzing consumer behaviour helps businesses
increase sales and revenue.
5. Predicts Market Trends – Helps businesses stay ahead by identifying
emerging consumer trends.
4. Different Models of Consumer Behaviour
A. Economic Model
 Assumes that consumers make rational decisions to maximize utility.
 Based on the law of demand (higher price leads to lower demand).
 Focuses on income, price, and utility as key factors influencing buying
behaviour.
B. Psychological Model
 Explains consumer behaviour based on psychological factors like
perception, motivation, learning, and attitude.
 Maslow’s Hierarchy of Needs is an important concept under this model.
C. Sociological Model
 Emphasizes the influence of family, society, peer groups, and culture on
consumer choices.
 Consumers make buying decisions based on their social roles and status.
D. Howard-Sheth Model
  A complex model that explains how consumers make decisions based on
inputs (marketing stimuli), perceptual constructs (information processing),
and outputs (final purchase decisions).
E. Nicosia Model
 Focuses on the interaction between a company and the consumer.
 Suggests that consumer behaviour is influenced by the company’s
marketing efforts and the consumer’s attitude toward the brand.
F. Engel-Kollat-Blackwell (EKB) Model
 A decision-making model that describes five stages of consumer purchase
behaviour:
1. Problem Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase Decision
5. Post-Purchase Behaviour

Consumer Motivation
1. Concept of Consumer Motivation
Consumer motivation refers to the internal drive that pushes individuals to fulfill
their needs and wants through purchasing products or services. It explains why
consumers make specific buying decisions and how they prioritize their purchases
based on their desires, emotions, and psychological triggers.

2. Factors Influencing Consumer Motivation

Several factors influence consumer motivation, including:
1. Psychological Factors
o Perception – How consumers interpret marketing messages and
product value.
o Learning – Past experiences influence current buying decisions.
o Beliefs & Attitudes – Consumers' thoughts about a product or brand.
2. Personal Factors
o Age & Life Stage – Young consumers have different needs than older
consumers.
o Lifestyle – Hobbies, interests, and daily routines affect buying
choices.
o Personality & Self-Concept – People buy products that match their
personality.
3. Social & Cultural Factors
o Family & Peer Influence – Family members and friends impact buying
decisions.
o Social Class & Status – Consumers purchase products that reflect
their status.
o Cultural & Religious Beliefs – Traditions and cultural values shape
preferences.
4. Economic Factors
o Income Level – Higher income increases purchasing power.
o Price Sensitivity – Some consumers look for affordability, while
others prefer premium brands.
5. Marketing & External Influences
o Advertising & Promotions – Discounts, offers, and advertisements
affect motivation.
o Brand Reputation – Well-known brands create higher motivation.
3. Consumer Needs
Consumer needs drive their motivation to make a purchase. These needs are
categorized into different levels:
Maslow’s Hierarchy of Needs
1. Physiological Needs – Basic survival needs (food, water, shelter).
2. Safety Needs – Security, health, financial stability.
3. Social Needs – Love, relationships, social belonging.
4. Esteem Needs – Status, prestige, recognition.
5. Self-Actualization Needs – Personal growth, self-improvement.
Consumers make purchases based on which need is most pressing at a given time.

4. Consumer Perception & Its Features

Perception is how a consumer interprets and makes sense of information related
to a product or brand. It influences buying decisions based on how they see, hear,
and feel about a product.
Features of Consumer Perception
1. Selective Attention – Consumers focus only on information that interests
them.
2. Selective Distortion – Consumers interpret information in a way that aligns
with their beliefs.
3. Selective Retention – Consumers remember only key details that they find
relevant.
4. Subliminal Perception – Hidden or indirect messages influence consumer
decisions.
5. Perceived Value – Consumers evaluate the price, quality, and benefits
before purchasing.
Conclusion
Understanding consumer motivation, needs, and perception helps businesses
design better products, marketing campaigns, and customer experiences to attract
and retain buyers.

Consumer Decision-Making Process

1. Concept of Consumer Decision-Making Process
The consumer decision-making process refers to the steps a buyer goes through
before, during, and after purchasing a product or service. It involves evaluating
different options and selecting the best one based on needs, preferences, and
available information.

2. Features of Consumer Decision-Making Process

1. Sequential Process – Consumers follow a structured approach from
problem recognition to post-purchase evaluation.
2. Influenced by Multiple Factors – Psychological, social, cultural, and
personal factors shape decisions.
3. Varies by Consumer & Product Type – Routine purchases (e.g., groceries)
involve quick decisions, while expensive items (e.g., cars) require more time
and research.
4. Can be Rational or Emotional – Some purchases are logical (e.g., financial
investments), while others are driven by emotions (e.g., luxury brands).
5. Involves Risk Evaluation – Consumers assess risks related to price, quality,
and satisfaction before buying.
6. Impact of Marketing & Branding – Advertising, promotions, and brand
reputation influence consumer choices.
3. Stages in Consumer Decision-Making Process
1. Problem Recognition
 The consumer realizes a need or problem (e.g., a mobile phone is
outdated).
 Triggers include personal needs, advertisements, or peer influence.
2. Information Search
 The consumer seeks information about products and alternatives.
 Sources include personal experiences, online reviews, advertisements, and
recommendations.
3. Evaluation of Alternatives
 The consumer compares different options based on price, quality, features,
and brand reputation.
 Decision criteria include affordability, durability, and benefits.
4. Purchase Decision
 The consumer selects a product and makes the purchase.
 Factors influencing this stage include promotions, discounts, and
availability.
5. Post-Purchase Behaviour
 The consumer evaluates their satisfaction with the product.
 Possible outcomes:
o Satisfied → Becomes a loyal customer.
o Dissatisfied → May return the product or share negative feedback.
Conclusion
Understanding the consumer decision-making process helps businesses create
effective marketing strategies, improve customer satisfaction, and increase sales.

Social & Health Care Marketing

1. Concept of Social & Health Care Marketing
Social & Health Care Marketing involves promoting products, services, and
awareness campaigns related to public health and social well-being. It includes
marketing for hospitals, healthcare services, medical products, public health
initiatives, and social causes like hygiene, vaccination, and disease prevention.

2. Political & Environmental Aspects in Social & Health Care Marketing

A. Political Aspects
 Government Regulations – Policies on drug approvals, advertising
restrictions, and healthcare services impact marketing.
 Healthcare Policies – Universal healthcare programs and insurance schemes
influence consumer choices.
 Public Health Campaigns – Governments launch awareness campaigns on
diseases, vaccinations, and hygiene.
B. Environmental Aspects
 Eco-Friendly Products – Use of sustainable packaging and biodegradable
medical products.
 Pollution Control – Health campaigns against pollution-related diseases.
 Green Hospitals & Practices – Encouraging energy-efficient hospitals and
waste management systems.
3. Benefits & Challenges of Social & Health Care Marketing
A. Benefits
1. Improves Public Awareness – Educates people about diseases,
vaccinations, and healthy lifestyles.
2. Enhances Healthcare Access – Promotes hospitals, medical services, and
insurance schemes.
3. Encourages Preventive Care – Motivates individuals to adopt healthy habits
and early diagnosis.
4. Boosts Brand Reputation – Healthcare brands and hospitals build trust
through effective marketing.
B. Challenges
1. Strict Regulations – Governments impose restrictions on medical
advertisements.
2. Misinformation Risks – Fake news and misleading health claims can
misguide consumers.
3. High Costs – Healthcare marketing requires significant investment in
research and awareness programs.
4. Ethical Concerns – Patient privacy, misleading drug advertisements, and
affordability issues.

4. Importance of Social & Health Care Marketing

1. Encourages Healthy Lifestyles – Spreads awareness about fitness, nutrition,
and disease prevention.
2. Promotes Public Health Initiatives – Supports vaccination drives, sanitation
programs, and anti-smoking campaigns.
3. Supports Healthcare Organizations – Hospitals, clinics, and pharmaceutical
companies use marketing to reach patients.
 4. Empowers Consumers – Educates individuals about healthcare rights,
insurance policies, and patient safety.

5. Public Policy in Social & Health Care Marketing (Short Note)

Public policy refers to government strategies and regulations that guide
healthcare marketing. These policies ensure:
 Ethical marketing practices (avoiding false claims).
 Affordable healthcare access through subsidies and public programs.
 Consumer safety with strict drug and product approval processes.
Governments also regulate health advertisements to prevent misleading
promotions and ensure that healthcare products and services are marketed
responsibly.

6. Consumer Protection Act (Short Note)

The Consumer Protection Act (CPA) safeguards consumers from unfair trade
practices and misleading advertisements in healthcare marketing. It provides:
 Right to Safety – Protection from harmful medical products.
 Right to Information – Ensures accurate details about medicines and
treatments.
 Right to Redressal – Allows consumers to file complaints against fraudulent
healthcare services.
The act ensures that healthcare marketing follows ethical standards, preventing
false claims and protecting consumer rights.

Conclusion

Social & Health Care Marketing plays a vital role in public awareness, disease
prevention, and healthcare accessibility. However, it must follow strict regulations
to maintain ethics and consumer trust.
Consumer Protection and Market Research
1. Consumer Protection
Consumer protection refers to policies, laws, and regulations that safeguard
buyers from unfair trade practices, misleading advertisements, and defective
products. It ensures consumer rights and promotes ethical business practices.
2. Market Research
Market research is the process of collecting, analyzing, and interpreting data
about consumers, competitors, and market trends to make informed business
decisions. It helps companies understand consumer needs and preferences,
improving product offerings and marketing strategies.

3. Information System in Consumer Protection & Market Research

A Marketing Information System (MIS) is used to gather and analyze data for
better decision-making. It consists of:
1. Internal Records System – Sales reports, customer feedback, and company
data.
2. Marketing Intelligence System – Competitor analysis, industry trends, and
regulatory updates.
3. Marketing Research System – Surveys, focus groups, and customer
interviews.
4. Decision Support System – Data analytics, AI tools, and predictive modeling
for strategy planning.
Importance:
 Helps businesses identify consumer issues and take corrective action.
 Aids government agencies in implementing consumer protection laws.
4. Research in Consumer Protection & Market Analysis
Research in consumer protection involves studying consumer rights, fraud cases,
and business compliance with regulations.
Types of Research:
1. Descriptive Research – Collecting data about consumer preferences and
market trends.
2. Analytical Research – Evaluating the impact of marketing strategies on
consumer protection.
3. Experimental Research – Testing new products and services to ensure
safety and effectiveness.
4. Exploratory Research – Identifying emerging consumer problems and
developing solutions.

5. Components of Market Research

1. Problem Identification – Understanding consumer needs, dissatisfaction, or
legal violations.
2. Data Collection – Surveys, interviews, online reviews, and purchase
patterns.
3. Data Analysis – Interpreting consumer feedback and market trends.
4. Reporting & Decision Making – Presenting insights to improve products,
policies, and regulations.
Example:
A company may conduct research to check whether its advertisements are
misleading or if its products meet quality standards.
6. Relevance of Consumer Protection & Market Research
1. Enhances Consumer Rights – Ensures fair pricing, product safety, and
transparent advertising.
2. Improves Business Strategies – Helps companies design better products
and marketing campaigns.
3. Builds Consumer Trust – Businesses that follow ethical practices gain loyal
customers.
4. Regulatory Compliance – Helps businesses comply with laws like the
Consumer Protection Act.
5. Prevents Market Fraud – Identifies and prevents unfair trade practices.

Conclusion
Consumer protection and market research work together to create a fair and
transparent marketplace. Market research provides insights into consumer needs,
while consumer protection laws ensure ethical business practices