CONSUMER BEHAVIOUR

➢ 2 MARK QUESTIONS

1. WHAT IS CONSUMER?
A consumer is an individual or organization that purchases or uses goods and services
to satisfy personal needs or wants. Consumers differ from customers in that consumers
ultimately “consume” the product, while customers merely buy it (e.g., a parent buys
toys; children consume them).

2. CONSUMERISM
Consumerism is an ideology and social movement emphasizing the acquisition of goods
and services in ever-increasing amounts. It views consumer spending as a primary
economic driver but also highlights potential downsides like materialism, debt, and
environmental impact (e.g., frequent gadget upgrades).

3. ONLINE BUYING BEHAVIOUR

Online buying behaviour describes how consumers search for, evaluate, and purchase
products via e-commerce platforms. Key stages include problem recognition,
information search, evaluation of alternatives, purchase, and post-purchase evaluation.
For example, comparing smartphone reviews on Amazon before buying.

4. NORMATIVE REFERENCE GROUP

A normative reference group consists of people (family, peers, colleagues) whose norms
and values directly influence an individual’s attitudes and behaviours—for instance, a
student dressing to match classmates’ styles.

5. OPINION LEADER
An opinion leader is someone with expertise or credibility in a specific domain who
influences others’ attitudes or behaviours—for example, a tech blogger whose
smartphone reviews sway readers’ purchase decisions.
6. CONSUMER
A consumer is any individual or entity that uses goods or services to satisfy personal
needs or wants. For instance, reading a newspaper after purchase.

7. CONSUMER BEHAVIOUR
Consumer behaviouris the study of psychological, social, and environmental factors
affecting individuals’ buying decisions and usage patterns (e.g., how culture shapes
snack preferences).

8. DECISION-MAKING PROCESS
The consumer decision-making process involves five stages: need recognition,
information search, evaluation of alternatives, purchase decision, and post-purchase
evaluation (e.g., choosing between rival laptop brands).

9. OPINION LEADER
An opinion leader is a trusted expert—like a celebrity chef recommending kitchen
gadgets—whose views significantly shape peers’ product choices.

10. CROSS CULTURE

Cross-culture refers to interactions among consumers from different cultural
backgrounds. Marketers study cross-cultural behaviour to tailor products (e.g.,
McDonald’s offering rice burgers in India vs. beef burgers in the US).

11. E-BUYING BEHAVIOUR

E-buying behaviour is another term for online buying behaviour, focusing on how
consumers use digital channels, mobile apps, or social media to research and purchase
products (e.g., impulse buys via Instagram ads).

12. WHAT IS CONSUMER BEHAVIOUR?

Consumer behaviour refers to the study of how customers (individuals and
organizations) satisfy their needs and wants by choosing, purchasing, using, and
disposing of goods, services, ideas, and experiences. It investigates all activities
associated with consumption, from the initial problem recognition through post‐
purchase evaluation. As an interdisciplinary field, it blends principles from psychology,
sociology, anthropology, and economics to explain the decision‐ making processes
influencing consumer actions.
13. PRODUCT IMPROVEMENT
Product improvement involves modifying an existing product’s features, quality, or
design to better meet consumer needs—such as adding longer battery life to a
smartphone model.
14. INNOVATIVE CONSUMER
An innovative consumer is an early adopter who willingly tries new products or
technologies before the majority—like testing a prototype VR headset and providing
feedback.

15. CONSUMER AND CUSTOMER

A customer buys a product or service; a consumer uses or “consumes” it. For example,
a parent (customer) may buy a toy that a child (consumer) plays with.

16. TYPES OF CONSUMER BEHAVIOUR

Common types include routine response behaviour (e.g., buying the same toothpaste),
limited problem solving (e.g., choosing a new shampoo), and extensive problem solving
(e.g., purchasing a car).

17. PRODUCT LIFE CYCLE

The product life cycle (PLC) describes four stages—introduction, growth, maturity, and
decline—a product goes through in the marketplace (e.g., DVDs peaked in maturity
before streaming services caused decline).

18. DIVERSITY OF CONSUMERS AND THEIR BEHAVIOUR

Consumers vary by demographics, psychographics, culture, and personal values, leading
to different buying patterns—such as budget-conscious versus luxury-seeking segments
in the same market.

19. FEATURES OF CONSUMER BEHAVIOUR

Key features include complexity (multiple influences), variability (changing needs), and
dynamism (in response to trends and experiences), as seen when health trends alter food
purchases.
20. ONLINE FOCUS GROUP
An online focus group gathers consumer opinions via video or chat platforms,
enabling companies to test concepts (e.g., new logo designs) with geographically
dispersed participants.

21. TYPES OF CONSUMER BEHAVIOUR PURCHASES

Purchases can be impulse (unplanned, like candy at checkout), habitual (routine, like
morning coffee), or planned (significant, like home appliances).

22. WHAT IS PLC?

PLC stands for Product Life Cycle, the four-stage model (introduction, growth, maturity,
decline) describing how products evolve in market acceptance and sales over time.

23. WHAT IS CULTURAL BEHAVIOUR?

Cultural behaviour refers to how cultural norms, values, and rituals shape consumer
actions—such as festive purchasing spikes during Diwali in India.

24. FEATURES OF CONSUMER BEHAVIOUR

Consumer behaviour is multi-faceted, involving rational/emotional motives, social
influences, and post-purchase reactions, reflecting its complexity and dynamism.

25. WHAT IS MARKET ETHICS?

Market ethics are moral principles guiding fair practices in marketing—like truth in
advertising, respecting privacy, and avoiding exploitative pricing (e.g., not misleading
expiry dates on food labels).
 ➢ 5 MARKS QUESTIONS

1. FEATURES OF CONSUMER BEHAVIOUR

Consumer behaviour is the multidisciplinary study of the processes individuals

use to select, purchase, use, and dispose of products and services, influenced by
motives, perceptions, and social factors (e.g., brand loyalty after positive
experiences).

FEATURES OF CONSUMERS BEHAVIOURS:

a. It’s a process which involves the decisions of what to buy when to buy,
how to buy, where to buy, and how much to buy.
b. Consumer behaviour comprises both the mental and physical activities of
consumers.
c. It is a highly complex and dynamic process.

d. Individual buying behaviour is influenced by internal factors such as needs,

wants, attitudes, and motives, as well as external factors like social groups,
culture, status, and environmental factors.
e. Consumer behavior starts before the purchase decision and it even
continues after the purchase is made

2. DETERMINANTS OF BUYING BEHAVIOUR

Key determinants include psychological (perception, learning), social (family,
reference groups), cultural (values, subcultures), personal (age, lifestyle),
economic (income, price sensitivity), and technological influences. For example,
lower disposable incomes often drive consumers toward private‐label or budget
brands during economic downturns.

Psychological Factors

Psychological determinants include perception, motivation, learning, beliefs, and

attitudes that govern how consumers interpret and react to stimuli. For example,
a well-crafted advertisement can alter perceptions of quality, prompting a trial
purchase.

Social Factors

Social influences stem from reference groups, family, roles, and status, steering
individuals toward group-approved products. A teenager, for instance, may
choose a clothing brand endorsed by peers to gain social acceptance.

Cultural Factors

Culture, subcultures, and social class embed deep-rooted values and norms that
guide consumption (e.g., festive purchases during Diwali in India). Ethnic cuisine
preferences exemplify how cultural heritage shapes food choices.

Personal Factors

Age, occupation, lifestyle, personality, and self-concept create individualized

shopping profiles. A young professional might prioritize convenience products,
while retirees may seek value in durability.

Economic Factors

Economic conditions—income, savings, credit availability, and price

sensitivity—directly constrain or enable buying power. Budget pressures during
downturns often push consumers toward private-label or discount brands.

Technological Influences

Although often treated separately, technological advancements (e.g., mobile

payments, AI recommendations) increasingly affect decision processes by
simplifying search and evaluation.
 3. 4PS OF MARKETING MANAGEMENT

The four Ps are the four essential factors involved in marketing a product or
service to the public. The four Ps are product, price, place, and promotion. The
concept of the four Ps has been around since the 1950s. As the marketing
industry has evolved, other Ps have been identified: people, process, and physical
evidence.

Product

“Product” refers to the bundle of tangible or intangible attributes offered to

satisfy consumer needs, including features, design, and quality. According to the
AMA, it encompasses branding, packaging, and warranty considerations that
differentiate offerings in the marketplace. For example, Apple’s sleek hardware
design and integrated ecosystem showcase how product excellence sustains
premium positioning.

Price

Price is the monetary amount consumers exchange for a product and signals both
value and quality perceptions. It influences demand elasticity, competitive
positioning, and profitability through strategies like penetration, skimming, or
psychological pricing. Apple’s consistent use of premium pricing reinforces its
luxury brand image and supports high margins.

Place

Place (distribution) ensures products are available where and when target
customers seek them, covering channels from retail outlets to e-commerce
platforms. The AMA defines it as the extent of market coverage and logistics
that deliver offerings efficiently. Apple’s selective retail stores and online Apple
Store optimize customer experience and brand control.

Promotion

Promotion comprises the communication tactics—advertising, public relations,

sales promotions, and direct marketing—used to inform and persuade
consumers. It shapes awareness, interest, desire, and action through integrated
campaigns across digital and traditional media. Apple’s high-impact product
launch events and multimedia ads drive engagement and reinforce brand loyalty
 4. DIFFERENT APPROACHES TO PRODUCT INNOVATIONS
Consumers and markets evolve continually, so firms use different innovation
strategies—incremental, radical, and market-expansion—to stay competitive.
Understanding these approaches helps companies decide whether to tweak
existing products, launch breakthrough offerings, or reach new customer
segments.
Incremental Innovation
Incremental innovation involves small, gradual improvements to existing
products or services, often using current technology. These tweaks might include
better battery life in a smartphone or added software features in an app. Toyota’s
famous “Kaizen” approach—continuous small enhancements on production
lines—illustrates how incremental steps build lasting quality.
Radical Innovation
Radical innovation creates breakthrough products or services that redefine
markets and user experiences. Examples include the first iPhone, which
combined phone, internet, and media functions in one device. Such innovations
carry higher risk but can yield enormous competitive advantage and reshape
entire industries.
Market-Expansion Innovation
Market-expansion innovation adapts existing offerings for new geographies,
customer segments, or channels. For instance, McDonald’s rice burgers in Asia
show how a familiar product is tweaked to suit local tastes. This strategy
leverages proven products to grow revenues with lower development risk

5. WHAT IS QUALITATIVE AND QUANTITY RESEARCH FOR

CONSUMER BEHAVIOUR?
Consumers’ behaviour research relies on two main methods—qualitative and
quantitative—to fully understand why and how people make purchase decisions.
Qualitative research digs into feelings, motivations, and opinions through open-
ended techniques, while quantitative research measures behaviours and
preferences using numerical data. Combining both methods delivers a complete
picture of consumer motivations and market trends.

Qualitative Research
Qualitative research explores the why behind consumer actions using interviews,
focus groups, and observations to gather rich, contextual insights. It uncovers
deep emotional triggers—such as why an ad’s storytelling resonates—and adapts
questions on the fly to probe unexpected findings. This flexibility lets marketers
grasp nuances that structured surveys might mis.
Quantitative Research
Quantitative research measures the what and how much via structured surveys,
analytics, and experiments, producing statistically reliable data. It quantifies
market segments—for example, what percentage of customers prefer Brand A
over Brand B—and tracks changes over time. Large sample sizes enable
generalization of results to broader populations

6. DESCRIBE ANY TWO SITUATIONS IN WHICH YOU SOUGHT

PURCHASE AND CONSUMPTION RELATED ADVICE FROM
AN OPINION LEADER.

Consumers often turn to trusted experts—known as opinion leaders—to guide

important purchase decisions, especially when products are complex or
information is abundant. Opinion leaders distill product pros and cons and share
personal experiences, acting as intermediaries between marketers and consumers.

Situation 1: Smartphone Purchase

When I considered upgrading my smartphone, I watched a well-known tech
blogger’s in-depth review videos on camera performance, battery life, and user
interface to compare top models before deciding. The blogger’s expertise and
hands-on testing simplified complex technical details into clear
recommendations, reducing my decision-making anxiety. Their real-world usage
scenarios—such as low-light camera tests and multitasking benchmarks—helped
me identify which phone best matched my daily needs.

Situation 2: Kitchen Appliance Purchase

Before buying an air fryer, I followed a popular home-chef influencer who posted
recipe trials, cleaning tutorials, and durability tests on social media. Their step-
by-step cooking demonstrations revealed each model’s true capacity and heat
distribution, information not apparent from specs alone. Additionally, their
maintenance tips—like ease of basket removal and dishwasher safety—ensured I
chose a model that would remain user-friendly over time.
 7. WHAT IS MOTIVATION? THEORIES OF MOTIVATION.

Definition of Motivation

Motivation is the internal process that initiates, guides, and maintains behaviours
aimed at achieving specific goals. It encompasses both intrinsic factors (personal
satisfaction) and extrinsic factors (external rewards) that influence effort and
persistence.

Theories of Motivation

Maslow’s Hierarchy of Needs

Maslow proposed that human needs form a five-level pyramid: physiological,
safety, social, esteem, and self-actualization. Consumers first seek basic needs—
such as food and shelter—and only pursue higher-order desires, like status or
personal growth, after lower needs are satisfied. Marketers use Maslow’s model
to position products according to the level of need they fulfill.

Herzberg’s Two-Factor Theory

Herzberg distinguished hygiene factors (salary, work conditions) that prevent
dissatisfaction from motivators (recognition, achievement) that drive
satisfaction. In consumer contexts, ensuring basic product reliability serves as a
hygiene factor, while unique features create real enthusiasm. This theory
underscores the importance of addressing both functional and emotional product
benefits.

McClelland’s Needs Theory

McClelland identified three learned needs—achievement, affiliation, and
power—that vary among individuals. Achievement-oriented consumers seek
products offering performance and innovation, while affiliation-driven buyers
value community and social bonding. Power-motivated customers gravitate
toward status symbols and premium brands.

Incentive Theory
Incentive Theory posits those external rewards (“pull” factors) and avoidance of
punishments (“push” factors) shape behaviour. Sales promotions, loyalty points,
and discounts serve as incentives that encourage trial and repeat purchases.
Effective incentives must be meaningful and timely to sustain consumer
engagement.
 ➢ 10 MARKS QUESTIONS

8. A USA BASED CAR COMPANY WANTED TO ENTER INDIAN

MARKET, WHAT FACTORS OF CONSUMER BEHAVIOUR
THEY SHOULD STUDY?

Consumers in India display unique preferences shaped by a blend of cultural

values, social influences, personal circumstances, psychological drivers, and
economic constraints. A U.S. carmaker entering this market must analyze these
consumer-behaviour factors—alongside technological and situational
considerations—to tailor product design, pricing, distribution, and promotion
strategies effectively.

1. Cultural and Social Influences

Indian buyers’ choices are deeply rooted in culture, traditions, and social norms,
such as family-oriented vehicle usage for multi-generational travel. Reference
groups—including peers, community leaders, and celebrity endorsements—
significantly sway brand perceptions and purchase intentions.

2. Psychological Factors

Perception of brand quality and safety drives consumer confidence; a strong

reputation can justify premium pricing. Motivation theories, such as Maslow’s
hierarchy, reveal that beyond basic transport needs, status and self-esteem (e.g.,
owning an SUV) become key motivators.

3. Personal Characteristics

Age, life cycle stage, occupation, and lifestyle affect segment preferences—for
instance, young professionals may favor compact, tech-loaded hatchbacks, while
families opt for larger SUVs or MPVs. Urban vs. rural residency also dictates
priorities: city drivers emphasize fuel efficiency and manoeuvrability, whereas
rural buyers value durability and ground clearance.

4. Economic Constraints

Income levels, financing availability, and price sensitivity are paramount; Indians
often seek value-for-money with low-interest loans and EMI schemes. During
economic slowdowns or heatwaves, consumers gravitate towards midsize or
entry-level models with better resale value.

5. Technological and Situational Factors

Growing digital adoption means buyers research extensively online, comparing

specs and dealer reviews before showroom visits. Seasonal festivals (e.g., Diwali)
and weddings trigger spikes in demand, requiring timely promotional campaigns
and inventory readiness.

Case Study: Maruti Suzuki

Maruti Suzuki’s success stems from its deep understanding of Indian needs—
offering compact cars (e.g., Alto), extensive service networks, localized features
(CNG variants), and affordable financing. Its continuous product tweaks via
incremental innovation and targeted promotions during festive seasons exemplify
market-expansion and consumer-centric strategies.

9. WHAT IS MEANT BY FAMILY? WHAT IS THE IMPORTANCE

OF STUDYING FAMILY AS A BUYING UNIT TO DEVELOPING
AN UNDERSTANDING OF CONSUMER BEHAVIOUR?
A family is a primary social unit whose members’ relationships, roles, and shared
experiences strongly influence purchase decisions. Studying families as buying
units helps marketers tailor products, communication, and channels to match
household needs, roles, and life-cycle stages.

Definition of Family

A family consists of two or more related individuals—by blood, marriage, or

adoption—living together and sharing resources. It functions as a familiar social
unit where values, traditions, and consumption norms are passed from one
generation to the next.
Importance of Family as a Buying Unit

1. Group Decision-Making
Many products—such as cars, appliances, and groceries—are purchased by
families rather than individuals. Different members (parents, children,
grandparents) play specific buying roles (influencer, decider, user), making
purchase processes collective.

2. Role Modeling and Socialization

Children learn consumption habits by observing parents, while spouses influence
each other’s brand choices. This socialization shapes long-term loyalty and usage
patterns, as seen when parents’ loyalty to a car brand transfers to adult children.

3. Life-Cycle and Segmenting

Family life-cycle stages—young singles, newlyweds, families with young
children, empty nesters—lead to distinct needs and spending priorities. Marketers
use these stages to segment markets and design relevant offers, such as entry-
level hatchbacks for new families and larger SUVs for multi-generational
household.

4. Resource Allocation
Families pool incomes and make trade-offs across competing needs (education,
health, entertainment), affecting price sensitivity and value perceptions.
Understanding household budgets helps firms set pricing, financing, and
promotional strategies (e.g., EMI plans on home electronics).

10.Define motivation. Maslow’s need hierarchy theory.

Motivation refers to the internal drive that compels individuals to take action to
fulfill their needs and desires. It is the force that initiates, guides, and sustains
goal-oriented behaviours. In consumer behaviour, motivation influences the
choices and actions of consumers as they seek to satisfy their needs through
purchases.

Levels of Hierarchy

The levels of hierarchy in Maslow’s need hierarchy theory appear in the shape of
a pyramid, where the most basic need is placed at the bottom while the most
advanced level of hierarchy is at the top of the pyramid.
Maslow was of the view that a person can only move to the subsequent level only
after fulfilling the needs of the current level. The needs at the bottom of the
pyramid are those which are very basic and the most complex needs are placed
on the top of the pyramid.

1. Physiological needs: The physiological needs are regarded as the most basic
of the needs that humans have. These are needs that are very crucial for our
survival. The examples of physiological needs are food, shelter, warmth, health,
homeostasis and water, etc.In addition to all the above needs, Abraham Maslow
also included sexual reproduction as one of the most common needs as it is
essential for the survival of the species.

2. Safety Needs: Once the basic needs of food, shelter, water, etc are fulfilled,
there is an innate desire to move to the next level. The next level is known as the
safety needs. Here the primary concern of the individual is related to safety and
security. Safety and security can be regarding many things like a stable source of
income that provides financial security, personal security from any kind of
unnatural events, attacks by animals and emotional security and physical safety
which is safety to health. The various actions taken by an individual in ensuring
safety and security are finding a job, getting an insurance policy, choosing a
secure neighbourhood for staying with family, etc.

3. Social Needs (Also known as Love and Belonging Needs): This is the third
level in the need hierarchy theory. It is that stage where an individual having
fulfilled his physiological needs as well as safety needs seeks acceptance from
others in the form of love, belongingness.
In this stage, human behaviouris driven by emotions and the need for making
emotional relationships is dominant here.The following examples can satisfy this
need:
1. Friendship
2. Family
3. Intimacy
4. Social Groups

When an individual is deprived of the above needs, he/she feels lonely and
depressed.

4. Esteem needs: This is considered as the fourth level of the hierarchy of needs
theory. It is related to the need of a person being recognised in the society. It deals
with getting recognition, self-respect in the society. The need for recognition and
acceptance arises when a person has fulfilled their need for love and
belongingness. In addition to recognition from others, there is a need for the
person to develop self-esteem and personal worth.

5. Self-actualization needs: This is the final level of the theory of hierarchy of

needs as proposed by Maslow. It is the highest level of needs and is known as the
self-actualization needs. It relates to the need of an individual to attain or realise
the full potential of their ability or potential.

At this stage, all individuals try to become the best version of themselves. In other
words, self-actualisation is the journey of personal growth and development.

11.WHAT IS CORPORATE SOCIAL RESPONSIBILITY? EXPLAIN

THE COMPANY OR ORGANIZATION WITH EXAMPLE.

A company’s commitment to operate ethically and contribute positively to

society and the environment defines Corporate Social Responsibility (CSR).
Beyond profit-making, CSR integrates social, environmental, and economic
concerns into business operations and stakeholder interactions. In India, CSR has
both voluntary and mandatory dimensions, prompting firms to align core
strategies with societal needs.

Pillars of CSR

CSR initiatives commonly span four categories—environmental (reducing

carbon footprint), philanthropic (community development), ethical (fair labor
practices), and economic responsibility (sustainable growth). This “triple bottom
line” approach balances profit, planet, and people.

Case Study: Tata Group

Tata Group, a pioneer in Indian CSR, spent over ₹1,095 crore in FY 19 on

education, healthcare, rural development, and environmental conservation,
impacting 11.7 million lives. Its flagship Nand Ghar project modernizes
Anganwadis with digital learning, nutrition, and women’s empowerment
programs in partnership with NGOs and governments. Tata Motors’ Affirmative
Action Policy promotes social equity by offering employment and business
opportunities to marginalized communities.
Benefits of CSR

Effective CSR enhances brand reputation, attracts customers and talent, and
fosters community goodwill. It also drives innovation by aligning product
development with sustainability goals, as seen in Tata’s clean energy and water
conservation initiatives

12.What is self and self-image and how is that important to understand

consumer?
13.Indian consumer’s behaviour is influenced by freebies, discounts and
exchange offer support this with your observations and examples
14.What is reference group? Explain its relevance to consumer behaviour.
15.What do you understand by the concept of consumer reference group?
16.Explain the influence of personality to buying decisions.
17.What are the factors that influence organizational buying decisions?
18.How important is the study of consumer behaviour? How it influences the
marketing strategies of an organization?
19.Needs and goals change constantly in response to life’s experience.
Explain this statement.
20.Explain how situational factors influence the degree of consistency
between attitudes and behaviour?
21.What is meant by family? What is the importance of studying family as a
buying unit to developing an understanding of consumer behaviour?
22.What is the relationship between brand loyalty and brand equity what role
do both concepts play in the development of marketing strategies?
23.Discuss how the influence of different social class affects the purchase
pattern of married couples.
24.What is meant by consumer behaviour? Explain interrelationship between
marketing strategy and consumer behaviour?
25.How important is the study of consumer behaviour? How it influences the
marketing strategies of an organization?
26.What is consumer perception and explain its major components?