CONSUMER BEHAVIOUR

Course Objectives

• Introduction to tools and frameworks for understand the behavioural basis of marketing

• Using insights to drive marketing decisions

Pedagogy

• Cases• Simulations• Guest lecture• Theory

Modules

• Segmentation– simulation

• Buyer characteristics and decision process

• Neuro-marketing– Visual imaging lab

• Pricing • Presentations

Evaluation Components

• Class Participation 10%• In-class evaluation 20%• Individual Assignment 30%• End term 40%

• What is the significance of learning about consumer behaviour ?

• What would you like to learn from the course?

Morgan Stanley (2005) –

Private consumption accounts for 64% of GDP

(Euro – 58%, China – 42%)

Food and Bev 71

Transport 27

Housing and utilities 20

Personal products and services (4) 12

Healthcare (3) 11

Apparel 9

Education (2) 7

Household products 5

Communication (1) 3

ENVIRONMENTAL FACTORS

BUYERS BLACK BOX BUYERS RESPONSE

Marketing Stimuli

Environmental Stimuli

Buyer Characteristic

s

Decision Process

ProductPricePlacePromotion

EconomicTechnologicalPoliticalCulturalDemographicNatural

AttitudesMotivationPerceptionsPersonalityLifestyleKnowledge

Problem recognitionInformation searchAlternative evaluationPurchase decisionPost-purchase behaviour

Product choiceBrand choiceDealer choicePurchase timingPurchase amount

Culture

Tupperware• New designs• New material – from polypropylene to

melamine and polycarbonate

Kellogg

HUL –Annapurna Chapati

Organised restaurant sector

Category Leaders Mkt share

Cafe CCD (1500), Barista (150)

Quick Service

Pizza Hut (260) Moti Mahal (100)

Fast Food Dominos (552), Subway (344)

Fine Dining

Great Kabab Factory (16) , Mainland China (50)

Organised restaurant sector

Category Leaders Mkt share

Cafe CCD (1500), Barista (150) 8%

Quick Service

Pizza Hut (260) Moti Mahal (100)

30%

Fast Food Dominos (552), Subway (344) 40%

Fine Dining

Great Kabab Factory (16) , Mainland China (50)

15%

Newspapers

Agrowon –• India’s first agriculture daily• Highest views amongst Marathi language

sites• Part of the Sakal media group

Noodle wars

• From 1300 cr to 3000 cr in 2015• Maggi introduced in 1984, has dropped

from 90% to 85%• Top Ramen, Ching’s Secret, Horlicks

Foodles, Knorr Soupy, Yippee, Tasty Treat

The Indian Consumer

McKinsey Household Classification(2007)

1.Global Indians (10 l +)

2.Strivers (5 – 10 l)

3.Seekers (2 – 5 l)

4.Aspirers (1 – 2 l)

5.Deprived (- 1 l )