Consumer buying behaviour

Definitions of CONSUMER Definitions of CONSUMER BEHAVIORBEHAVIOR

The study of consumer behavior The study of consumer behavior focuses on how individuals make their focuses on how individuals make their decisions to spend their available decisions to spend their available resources (time, money ,effort) on resources (time, money ,effort) on consumption related itemsconsumption related items

Consumer Behavior is the study of Consumer Behavior is the study of human responses to products/services human responses to products/services and the marketing of products/servicesand the marketing of products/services

Significance of CONSUMER Significance of CONSUMER BEHAVIORBEHAVIOR

The primary purpose of studying consumer The primary purpose of studying consumer behavior is why and how consumers make behavior is why and how consumers make their purchase decisionstheir purchase decisions

To understand marketing and To understand marketing and environmental stimulienvironmental stimuli

To know the factors influencing consumer To know the factors influencing consumer behaviorbehavior

To know how consumers will respond to To know how consumers will respond to different product different product features,prices,advertisement appealsfeatures,prices,advertisement appeals


To distinguish different consumer To distinguish different consumer groups and to develop products that groups and to develop products that satisfy the needs.satisfy the needs.

To understand how consumers make To understand how consumers make purchasing choices among purchasing choices among products/services.products/services.

To know “why same consumer is To know “why same consumer is attracted to different products”attracted to different products”


To know buying dynamics of consumerTo know buying dynamics of consumerUnderstanding consumer behavior of Understanding consumer behavior of

target market is essential part of target market is essential part of marketing managermarketing manager

To know growing market segments of To know growing market segments of company for consumerscompany for consumers

Study of consumer behavior enable Study of consumer behavior enable them to become better and wiser them to become better and wiser consumersconsumers


Continuously upgrading the consumerContinuously upgrading the consumerTo know what features or product To know what features or product

design acceptable by consumerdesign acceptable by consumerTo understand the buying roles of the To understand the buying roles of the

consumerconsumerTo predict post purchase satisfaction To predict post purchase satisfaction

or dissatisfaction behavioror dissatisfaction behaviorMaking the consumer individualistic Making the consumer individualistic

more consciousmore conscious


Help marketers to assess the consumers Help marketers to assess the consumers needs and wants and to make better needs and wants and to make better strategic marketing decisionsstrategic marketing decisions

To know cross cultural needs and To know cross cultural needs and preferences and consumption habitspreferences and consumption habits

Study of internal and external influences Study of internal and external influences which impel them to behave as they dowhich impel them to behave as they do

To understand unethical practices To understand unethical practices prevailing in the marketprevailing in the market


Consumer behavior is the field of Consumer behavior is the field of interdisciplinary dimensionsinterdisciplinary dimensions

Psychology – The study of individuals Psychology – The study of individuals – individual behavior – attitudes, – individual behavior – attitudes, values, belief, perception, learning, values, belief, perception, learning, personality, motivationpersonality, motivation

Sociology – the study of groups – Sociology – the study of groups – group behavior – social class, group behavior – social class, reference groups, group dynamicsreference groups, group dynamics


Socio Psychology – deals with Socio Psychology – deals with interpersonal behavior – behavior of interpersonal behavior – behavior of individuals in group context – individuals in group context – intergroup collaboration, group intergroup collaboration, group decision – making, integration of decision – making, integration of individual needs with group needsindividual needs with group needs

Anthropology – Influence of the Anthropology – Influence of the culture and society on individual. culture and society on individual.

Model of consumer buying Model of consumer buying processprocess

Components of consumer buying process Components of consumer buying process a) Identify buying rolesa) Identify buying rolesb) buying behaviourb) buying behaviourc) buying research c) buying research Steps in buying processSteps in buying processa) Need/recognitiona) Need/recognitionb) Informational searchb) Informational searchc) evaluation of alternativesc) evaluation of alternativesd) purchase decisiond) purchase decisione) Post purchase behavioure) Post purchase behaviour


Buying rolesBuying roles Initiator/Influencer – provides Initiator/Influencer – provides

information about the product/serviceinformation about the product/serviceGatekeeper – controls the flow of Gatekeeper – controls the flow of

informationinformationDecider – decides whether to shop Decider – decides whether to shop

the purchase or notthe purchase or notBuyer – involves in actual purchase or Buyer – involves in actual purchase or

the productthe product


Preparer – transforms the product Preparer – transforms the product into consumptioninto consumption

Maintainer – provides Maintainer – provides repair/maintenance servicesrepair/maintenance services

User – use or consume the productUser – use or consume the productDisposer – decides whether to Disposer – decides whether to

continue or discontinue in using the continue or discontinue in using the productproduct


Types of buying behaviourTypes of buying behaviour Complex buying behaviour – It is a Complex buying behaviour – It is a

behaviour of the consumer when the behaviour of the consumer when the purchase is highly inexpensive or the purchase is highly inexpensive or the products which are bought infrequently products which are bought infrequently and riskyand risky

Dissonance reducing buying behaviour- It Dissonance reducing buying behaviour- It is a behaviour when the consumer is is a behaviour when the consumer is confronted with a unfamiliar brand name confronted with a unfamiliar brand name in a familiar product classin a familiar product class


Habitual buying behaviour - It is a Habitual buying behaviour - It is a behaviour when the consumer behaviour when the consumer doesn’t find difficulty in making a doesn’t find difficulty in making a purchase due to awareness of brandspurchase due to awareness of brands

Novelty seeking buying behaviour - It Novelty seeking buying behaviour - It is a behaviour when the consumer is a behaviour when the consumer involves in the purchase for novel or involves in the purchase for novel or new brandsnew brands


Buying Research Buying Research The methods used in conducting buying The methods used in conducting buying

research : research : a) a) Focus Group Interview Focus Group Interview b) b) In-depth InterviewIn-depth Interview c) c) Projective TechniquesProjective Techniques– –

Model of consumer buying processModel of consumer buying process

a) a) Focus Group Interview - conducted by a Focus Group Interview - conducted by a trained moderator in a natural manner with a trained moderator in a natural manner with a group of respondents. A focus group is a group of respondents. A focus group is a sample of respondents from the specified sample of respondents from the specified target market. Focus group interview takes target market. Focus group interview takes place in the form of free-flowing group place in the form of free-flowing group discussion among various target groups. The discussion among various target groups. The moderator plays a key role to establish the moderator plays a key role to establish the rapport with the participants to keep the rapport with the participants to keep the discussion moving forward and probe the discussion moving forward and probe the respondents to elicit insights into the problem.respondents to elicit insights into the problem.


Applications of focus group interviewApplications of focus group interviewUnderstanding consumer perceptions, Understanding consumer perceptions,

perceptions concerning a product perceptions concerning a product categorycategory

Obtaining impression of new product Obtaining impression of new product conceptsconcepts

Generating ideas about new and Generating ideas about new and existing productsexisting products

Developing creative concepts of Developing creative concepts of advertising copy from the consumeradvertising copy from the consumer


b)b) In depth interview In depth interview – It is method of – It is method of obtaining qualitative data. An obtaining qualitative data. An unstructured, direct, personal interview unstructured, direct, personal interview in which a single respondent is probed by in which a single respondent is probed by a skilled interviewer to knowing a skilled interviewer to knowing underlying motivations, attitudes and underlying motivations, attitudes and feelings on a topic. The interviewer feelings on a topic. The interviewer encourages the respondent to talk freelyencourages the respondent to talk freely

Applications of In depth interviewApplications of In depth interviewDiscussion of confidential, sensitive or Discussion of confidential, sensitive or

embarrassing topics or situations where embarrassing topics or situations where the strong social norms existthe strong social norms exist


Detailed understanding the complicated Detailed understanding the complicated behavior of the consumer and other behavior of the consumer and other groupsgroups

Situations where product consumption Situations where product consumption experience is sensory in nature ( which experience is sensory in nature ( which is emotional in nature)is emotional in nature)

c)c) Projective techniques Projective techniques – an unstructured – an unstructured and indirect form of questioning that and indirect form of questioning that encourages the respondent to project encourages the respondent to project their underlying motivations, attitudes, their underlying motivations, attitudes, belief etc regarding the issue of belief etc regarding the issue of concern.concern.


In projective techniques, the respondents In projective techniques, the respondents are asked to interpret the behavior of are asked to interpret the behavior of others rather than their own behaviorothers rather than their own behavior

Ex of projective techniques – word Ex of projective techniques – word association tests, sentence completion association tests, sentence completion tests, story completion tests, picture tests, story completion tests, picture response or TAT ( Thematic Apperception response or TAT ( Thematic Apperception Test), Role playing, Third person Test), Role playing, Third person techniques etc.techniques etc.

Word association testWord association test – respondents are – respondents are presented with the help of words one at a presented with the help of words one at a time and are asked to respond to each time and are asked to respond to each with the first word that comes in mindwith the first word that comes in mind


Sentence completion testSentence completion test – respondents – respondents are provided with the part of story and are provided with the part of story and required to give conclusion in their own required to give conclusion in their own words.words.

Picture response or TAT ( Thematic Picture response or TAT ( Thematic Apperception Test)Apperception Test) – the respondents – the respondents are shown a picture and asked to tell a are shown a picture and asked to tell a story describing it.story describing it.

Role playingRole playing – respondents are asked to – respondents are asked to assume the behavior of someone else assume the behavior of someone else and have to role-play their behavior.and have to role-play their behavior.


Third person techniqueThird person technique – in which – in which respondents are presented with respondents are presented with verbal or visual situation and are verbal or visual situation and are asked to related the beliefs and asked to related the beliefs and attitudes of a third person. The third attitudes of a third person. The third person may be friend, neighbour or person may be friend, neighbour or family etcfamily etc


2) steps in buying process2) steps in buying processa) a) Need/recognition Need/recognition - It starts when the - It starts when the

buyer recognises a problem or needbuyer recognises a problem or needb) b) Informational searchInformational search – Information – Information

about the felt need by the consumers about the felt need by the consumers can be collected through various can be collected through various sources – personal sources, commercial sources – personal sources, commercial sources, public sources, experimental sources, public sources, experimental sourcessources


Evaluation of alternatives - Evaluation of alternatives - Consumer evaluates various Consumer evaluates various alternatives before making a alternatives before making a purchase – quality, price etcpurchase – quality, price etc

Purchase decision Purchase decision - The factors that - The factors that influence the purchase decision are influence the purchase decision are product choice, brand choice, dealer product choice, brand choice, dealer choice, purchase timing & purchase choice, purchase timing & purchase amount amount


Post purchase behaviour Post purchase behaviour - After - After making a purchase the consumer making a purchase the consumer experiences satisfaction or experiences satisfaction or dissatisfaction in using the productdissatisfaction in using the product

Types of post purchase behaviourTypes of post purchase behaviourPost purchase satisfactionPost purchase satisfaction – the – the

defects identified by the consumer defects identified by the consumer should be replacedshould be replaced


Post purchase action – If the Post purchase action – If the consumer is highly satisfied then consumer is highly satisfied then there is a high probability of there is a high probability of repeated purchaserepeated purchase

Post purchase use and disposal –If Post purchase use and disposal –If the consumer finds a new use after the consumer finds a new use after using the product, that should be using the product, that should be highlighted by the company through highlighted by the company through advertisingadvertising

Product InnovationProduct Innovation

Product Innovation refers to new - Product Innovation refers to new - idea, concept, method, practice, idea, concept, method, practice, product or service which is perceived product or service which is perceived by someone as newby someone as new

Innovations take time to penetrate Innovations take time to penetrate into the members of the social into the members of the social systemsystem

Product Adoption Product Adoption

Adoption refers to the acceptance or Adoption refers to the acceptance or continual use of new product or brand by continual use of new product or brand by the individualsthe individuals

Adoption is a step-by-step mental Adoption is a step-by-step mental process of adopting or accepting a new process of adopting or accepting a new productproduct

Adoption is the process by which the Adoption is the process by which the individual passes several stages to arrive individual passes several stages to arrive at decision in using a new productat decision in using a new product

Adoption ProcessAdoption Process

Stages in Adoption processStages in Adoption processa) Awareness – consumer is exposed a) Awareness – consumer is exposed

to innovation, but lacks informationto innovation, but lacks informationb) Comprehension – consumer has b) Comprehension – consumer has

information & understanding about information & understanding about the new product. It reveals the the new product. It reveals the interest towards the productinterest towards the product


c) Attitude – refers to favourable or c) Attitude – refers to favourable or unfavourable disposition of the unfavourable disposition of the consumer towards the productconsumer towards the product

d) Legitimisation – refers to – the d) Legitimisation – refers to – the consumers are highly convinced consumers are highly convinced about the new productabout the new product

e) Trial – The product is tested before e) Trial – The product is tested before acceptanceacceptance


f) Adoption or rejection – If the trial is f) Adoption or rejection – If the trial is positive, the product is accepted or positive, the product is accepted or otherwise the product is rejectedotherwise the product is rejected

ConclusionConclusionAdoption process is helpful in Adoption process is helpful in

managing product innovation and managing product innovation and also in designing promotional also in designing promotional strategystrategy

Categories of AdoptersCategories of Adopters

Innovators – constitute 2.5% of the total Innovators – constitute 2.5% of the total market. Innovators are first to adopt to market. Innovators are first to adopt to new product. They are highly educated, new product. They are highly educated, esteem class and also cosmopolitianesteem class and also cosmopolitian

Early adopters – constitute 13.5% of total Early adopters – constitute 13.5% of total market. They are the second to adopt new market. They are the second to adopt new adopt. They are also educated and high adopt. They are also educated and high social status. They are socially integrated social status. They are socially integrated and also the leaders of the social and also the leaders of the social communitycommunity

Categories of AdoptersCategories of Adopters

Early majority – constitute 34% of the total Early majority – constitute 34% of the total market . They are just before the average market . They are just before the average member of the social class. member of the social class.

Late majority – constitute 34% of the total Late majority – constitute 34% of the total market. They are skeptical . The people are market. They are skeptical . The people are after the average member of the social classafter the average member of the social class

Laggards – constitute 16% of total market. Laggards – constitute 16% of total market. They are last to adopt new product. They They are last to adopt new product. They are having low social economic status. They are having low social economic status. They have less interest to try new product and have less interest to try new product and spend less on promotionspend less on promotion

Diffusion of innovationDiffusion of innovation

Diffusion refers to the acceptance of Diffusion refers to the acceptance of the innovation which is spread by the the innovation which is spread by the communication(mass media, salesman, communication(mass media, salesman, opinion leaders) to the members of the opinion leaders) to the members of the social system over a period of timesocial system over a period of time

Diffusion refers how new product Diffusion refers how new product captures target marketcaptures target market

Diffusion is the aggregate of all Diffusion is the aggregate of all individuals decision to adopt new individuals decision to adopt new productproduct

Factors influence the rate of Factors influence the rate of diffusiondiffusion

These factors explain “what is the These factors explain “what is the definition of new product or when it definition of new product or when it is called the new product according is called the new product according to consumers)to consumers)

FactorsFactors1) 1) Firm oriented definitionFirm oriented definition – consistent – consistent

with the view that a firm which is with the view that a firm which is capable of copy or modify the capable of copy or modify the competitors product was qualified as competitors product was qualified as new productnew product


2) 2) Product oriented definition Product oriented definition

a) continuous innovation – it refers to the a) continuous innovation – it refers to the introduction of the modified product rather introduction of the modified product rather than new productthan new product

b) dynamically continuous – creation of new b) dynamically continuous – creation of new products rather than modified productsproducts rather than modified products

c) discontinuous innovation – consumers feel c) discontinuous innovation – consumers feel difficulty to adopt the patterns of new difficulty to adopt the patterns of new productproduct


3) 3) Market oriented definitionMarket oriented definition – A – A product is considered new if it is product is considered new if it is relatively purchased by the majority relatively purchased by the majority of the potential marketof the potential market

4) 4) Consumer oriented definitionConsumer oriented definition

a) relative advantage – the degree to a) relative advantage – the degree to which the potential customer which the potential customer perceive a new product as superior perceive a new product as superior to competitorsto competitors


b) compatibility – the degree to which b) compatibility – the degree to which potential customer feel a new product potential customer feel a new product is consistent with the needs of the is consistent with the needs of the consumerconsumer

c) complexity – the degree to which the c) complexity – the degree to which the new product is difficult to understand new product is difficult to understand its usage by the consumersits usage by the consumers

d) trialability – the degree to which the d) trialability – the degree to which the new product is suitable to try before new product is suitable to try before usage at free of costusage at free of cost


e) observability – the degree to which e) observability – the degree to which the product benefits or attributes can the product benefits or attributes can be described to potential consumers be described to potential consumers by the company sourcesby the company sources

Organizational buying Organizational buying process/Industrial buying process/Industrial buying

processprocessDefinitionDefinition : It is defined as the : It is defined as the

decision-making process by which decision-making process by which formal organizations establish the formal organizations establish the need for purchased products/services need for purchased products/services to identify, evaluate and choose to identify, evaluate and choose among alternative brands and among alternative brands and suppliers. suppliers.

It was developed by Fredrick E It was developed by Fredrick E Webster & Yoram WindWebster & Yoram Wind

Characteristics/features of Characteristics/features of Organizational buying process Organizational buying process

1) The organizational buyers are called as 1) The organizational buyers are called as producer/manufacturer business units producer/manufacturer business units consists of all the individuals/organizations consists of all the individuals/organizations who acquire goods/services that enter into who acquire goods/services that enter into the production of other products/services the production of other products/services that are sold, rented or supplied to others.that are sold, rented or supplied to others.

2) The various types of organizational 2) The various types of organizational buying units are in the areas of services, buying units are in the areas of services, agriculture, forestry, fisheries, wholesalers, agriculture, forestry, fisheries, wholesalers, retailers, construction units, farming, retailers, construction units, farming, governmental units etc.governmental units etc.


3) organizational buyers make purchase decisions 3) organizational buyers make purchase decisions in order to satisfy their goals as similar to final in order to satisfy their goals as similar to final consumers.consumers.

4) Geographical Concentration – buyers are more 4) Geographical Concentration – buyers are more concentrated by size in organizational market. concentrated by size in organizational market.

Ex: textiles are clustered predominantly in southEx: textiles are clustered predominantly in south 5) Group Involvement – A group of individuals 5) Group Involvement – A group of individuals

may be involved in buying decision. People from may be involved in buying decision. People from engineering, manufacturing, production, engineering, manufacturing, production, purchase, finance departments along with top purchase, finance departments along with top management participate in machinery purchase management participate in machinery purchase decision.decision.

Characteristics/features of Organizational Characteristics/features of Organizational buying process buying process

6) Technical knowledge – They are 6) Technical knowledge – They are professional buyers and are quite professional buyers and are quite knowledgable about products/services. Their knowledgable about products/services. Their purchase is directed by technically competent purchase is directed by technically competent individuals.individuals.

7) Rational Motivators – they are economical in 7) Rational Motivators – they are economical in nature and the costs & benefits are carefully nature and the costs & benefits are carefully weighed. Product quality specifications, weighed. Product quality specifications, consistency, assurance, delivery, credit terms, consistency, assurance, delivery, credit terms, warranty are other elements influencing in the warranty are other elements influencing in the selection of vendors. selection of vendors.

8) Formal procedures – involves proposals, 8) Formal procedures – involves proposals, quotation requests, purchasing contracts, quotation requests, purchasing contracts, price and product specificationsprice and product specifications


9) Complexity – It requires conscious 9) Complexity – It requires conscious considerations with higher financial risksconsiderations with higher financial risks

10) lengthy negotiations – the size of the order 10) lengthy negotiations – the size of the order is large and purchaser price is very important.is large and purchaser price is very important.

11) Derived demand – the demand for 11) Derived demand – the demand for industrial goods will ultimately be derived industrial goods will ultimately be derived from the demand for consumer goodsfrom the demand for consumer goods

12) Inelastic demand – if the total demand for 12) Inelastic demand – if the total demand for the industrial product remains affected by the industrial product remains affected by price changes then demand is inelasticprice changes then demand is inelastic


Ex: the footwear manufacturers are not Ex: the footwear manufacturers are not going to buy more leather if the price of going to buy more leather if the price of the leather reduces.the leather reduces.

13) Fluctuating demand – the nature of the 13) Fluctuating demand – the nature of the demand in industrial goods is highly demand in industrial goods is highly volatilevolatile

14) Straight/routine rebuy – It is a buying 14) Straight/routine rebuy – It is a buying situation where the purchaser will reorder situation where the purchaser will reorder the product without any modificationthe product without any modification

Ex: electricity, water, office supplies etcEx: electricity, water, office supplies etc


15) Modified rebuy – It is a buying 15) Modified rebuy – It is a buying situation where buyer/purchaser wants situation where buyer/purchaser wants to modify product specifications/prices.to modify product specifications/prices.

16) Reciprocal buying – a paper 16) Reciprocal buying – a paper manufacturer will by necessary manufacturer will by necessary equipment from chemical manufacturer equipment from chemical manufacturer which inturn buys the stationery from which inturn buys the stationery from the paper manufacturerthe paper manufacturer

17) Leasing – organizational buyers go 17) Leasing – organizational buyers go for equipment leasing instead of for equipment leasing instead of outright purchaseoutright purchase

Steps in Organizational/Industrial Steps in Organizational/Industrial buying processbuying process

1) Problem recognition1) Problem recognition2) Need description2) Need description3) Vendor search3) Vendor search4) Proposal request4) Proposal request5) Vendor selection5) Vendor selection6) Purchase routine selection6) Purchase routine selection7) Post purchase evaluation7) Post purchase evaluation


1) Problem recognition – for ex: 1) Problem recognition – for ex: breakdown of the machine which breakdown of the machine which requires replacement of new parts requires replacement of new parts immediatelyimmediately

2) Need description – Industrial buyer 2) Need description – Industrial buyer tends to define product , quality as the tends to define product , quality as the combination which fits the product to combination which fits the product to use in the future.use in the future.

3) Vendor search – In this organization 3) Vendor search – In this organization tries to identify companies who may be tries to identify companies who may be the appropriate suppliers of the specified the appropriate suppliers of the specified productproduct


Organizational buyers have a wide range Organizational buyers have a wide range of informational sources to use in their of informational sources to use in their assessment of products & suppliers. assessment of products & suppliers.

4) Proposal request – the company may 4) Proposal request – the company may send a request for proposal to qualified send a request for proposal to qualified vendor asking them to bid based on vendor asking them to bid based on product specification.product specification.

5) Vendor selection – the vendor selection 5) Vendor selection – the vendor selection is based on the following criteria : is based on the following criteria :


Overall reputation of the supplier, Overall reputation of the supplier, financing terms, technical service financing terms, technical service offered, convenience in placing the order, offered, convenience in placing the order, data on the reliability of product, quality data on the reliability of product, quality or price, reliability of the delivery time or price, reliability of the delivery time promised, repair and maintenance promised, repair and maintenance service after the date of purchase.service after the date of purchase.

6) Purchase routine selection – Involves 6) Purchase routine selection – Involves placing an order specifying all terms with placing an order specifying all terms with vendor who processes it and ships the vendor who processes it and ships the product. It is then received, approved product. It is then received, approved andand


payment is made. Companies often payment is made. Companies often negotiate a contract to cover purchase negotiate a contract to cover purchase over specific length of timeover specific length of time

7) Post purchase evaluation – involves 7) Post purchase evaluation – involves evaluation of supplier’s performance by evaluation of supplier’s performance by the buyer. It rates the supplier’s the buyer. It rates the supplier’s performance periodically based on performance periodically based on quality, price, delivery, post sales quality, price, delivery, post sales service. Vendors may also receive the service. Vendors may also receive the report so that they may modify their report so that they may modify their performance for better customer performance for better customer service.service.

Cognitive Dissonance TheoryCognitive Dissonance Theory

Cognitive dissonance is a tension Cognitive dissonance is a tension between two opposite thoughts after between two opposite thoughts after consumer has bought something. The consumer has bought something. The consumer is uncertain of the purchase consumer is uncertain of the purchase decision he has made ( whether it is right decision he has made ( whether it is right choice or not)choice or not)

This theory was developed by the former This theory was developed by the former Stanford University Psychologist – Leon Stanford University Psychologist – Leon Festinger in 1957Festinger in 1957

Cognition – A thought about an objectCognition – A thought about an object

Cognitive Dissonance TheoryCognitive Dissonance TheoryCognitive dissonance refers to the Cognitive dissonance refers to the

tendency of consumers to worry tendency of consumers to worry about the wisdom of major purchases about the wisdom of major purchases after they have been made.after they have been made.

Ex: A product positioned as a luxury Ex: A product positioned as a luxury product with an elegant design, product with an elegant design, expensive packaging, limited expensive packaging, limited distribution, and ads that stress distribution, and ads that stress exclusiveness should not be priced at exclusiveness should not be priced at or below an average product create or below an average product create dissonance in the minds of consumersdissonance in the minds of consumers

Cognitive Dissonance TheoryCognitive Dissonance TheoryThis theory suggests that we have an This theory suggests that we have an

inner drive to hold all our attitudes inner drive to hold all our attitudes and beliefs in harmony to avoid and beliefs in harmony to avoid disharmony(dissonance – discomfort)disharmony(dissonance – discomfort)

This theory refers to the situation This theory refers to the situation involving conflicting attitudes, beliefs involving conflicting attitudes, beliefs or behaviors. Due to this it creates a or behaviors. Due to this it creates a discomfort which is called dissonance.discomfort which is called dissonance.

When cognitive dissonance occurs When cognitive dissonance occurs after a purchase, it is called post after a purchase, it is called post purchase dissonance.purchase dissonance.


For instance : when consumers have For instance : when consumers have made a commitment - made a down made a commitment - made a down payment or placed an order for a payment or placed an order for a expensive product (laptop), they often expensive product (laptop), they often begin to feel cognitive dissonance begin to feel cognitive dissonance when the unique qualities of the when the unique qualities of the brand not selected i.e., left behindbrand not selected i.e., left behind

The principle of this theory is to The principle of this theory is to reduce post purchase dissonance in reduce post purchase dissonance in consumer purchase decisionconsumer purchase decision

Cognitive Dissonance TheoryCognitive Dissonance Theory It is one of the theory of Attitude. The It is one of the theory of Attitude. The

basic concept of this theory was basic concept of this theory was derived from the learning hierarchy derived from the learning hierarchy of attitudes. The hierarchy of of attitudes. The hierarchy of attitudes are :attitudes are :

Cognition -Cognition - Affective -> Conative Affective -> Conative(thoughts ->feelings ->actions) i.e, (thoughts ->feelings ->actions) i.e,

you think first, feel next & act last.you think first, feel next & act last.Attitudes are learned based on some Attitudes are learned based on some

experience or information about experience or information about object which creates predisposition object which creates predisposition and cause consistent response.and cause consistent response.

Cognitive Dissonance TheoryCognitive Dissonance TheoryWhen the individual is consistent with When the individual is consistent with

the target behavior and the target the target behavior and the target attitude then it results in consonance. attitude then it results in consonance. When there is inconsistency between When there is inconsistency between the target behavior and the target the target behavior and the target attitude then it results dissonance attitude then it results dissonance ( which is the theme of cognitive ( which is the theme of cognitive dissonance).dissonance).

Ex: I like driving car , but if the driving Ex: I like driving car , but if the driving results in accidents or frequent repairs results in accidents or frequent repairs then it creates discomfort or dissonancethen it creates discomfort or dissonance

Cognitive Dissonance TheoryCognitive Dissonance Theory In this ex: driving car is (target behavior In this ex: driving car is (target behavior

- A) – and as a result of accident and - A) – and as a result of accident and repair which results negative attitude repair which results negative attitude towards the product ( target attitude - towards the product ( target attitude - B). B).

This theory states that cognitions are This theory states that cognitions are consonant, dissonant and irrelevant. consonant, dissonant and irrelevant. Cognitions are consistent or consonantCognitions are consistent or consonant if if A implies B ( A – Behavior , B – Attitude). A implies B ( A – Behavior , B – Attitude). Cognitions are consonant when one Cognitions are consonant when one follows from the another on the basis of follows from the another on the basis of logic or experience. logic or experience.

Cognitive Dissonance TheoryCognitive Dissonance TheoryCognitions can be inconsistent or dissonant Cognitions can be inconsistent or dissonant

if A is opposite of B. Cognitions are if A is opposite of B. Cognitions are dissonant when they are opposed to one’s dissonant when they are opposed to one’s experience and the relationship of events.experience and the relationship of events.

Ex: when an individual buys an expensive Ex: when an individual buys an expensive car but is not suitable of long drives then it car but is not suitable of long drives then it is said to be dissonantis said to be dissonant

Cognitions can be unrelated or irrelevant if Cognitions can be unrelated or irrelevant if A is not related to B. cognitions are totally A is not related to B. cognitions are totally irrelevant when two events are not irrelevant when two events are not interrelated.interrelated.

Cognitive Dissonance TheoryCognitive Dissonance TheoryThe extent to which dissonance depends The extent to which dissonance depends

on the significance of the purchase on the significance of the purchase decision, attractiveness of the rejected decision, attractiveness of the rejected alternative, the number of the negative alternative, the number of the negative views in the choice made, number of views in the choice made, number of options considered , whether the choice options considered , whether the choice is made (forced or voluntary).is made (forced or voluntary).

Dissonance can be reduced by :Dissonance can be reduced by : i)changing his/her attitudesi)changing his/her attitudes ii) beliefs based on the situation, ii) beliefs based on the situation,

actively seeking the positive information actively seeking the positive information about chosen alternativeabout chosen alternative

Cognitive Dissonance TheoryCognitive Dissonance Theory iii)selective exposure – It is the iii)selective exposure – It is the

tendency to avoid information tendency to avoid information inconsistent with one’s inconsistent with one’s attitudes/beliefsattitudes/beliefs

ConclusionConclusionCognitive dissonance helps to reduce Cognitive dissonance helps to reduce

post purchase dissonance in consumer post purchase dissonance in consumer purchase decision.purchase decision.

It applies to all situations involving It applies to all situations involving attitude formation and change. attitude formation and change.

It results in problem-solving and It results in problem-solving and decision-making decision-making


Motivation is a drive that impels the Motivation is a drive that impels the individual to his goal. For ex: as individual to his goal. For ex: as hunger man impels to eat , so does hunger man impels to eat , so does dissonance impels a person to change dissonance impels a person to change individual outcomes or behavior.individual outcomes or behavior.

The marketers need to design The marketers need to design consistent marketing mix that consistent marketing mix that matches consumers attitudes, beliefs matches consumers attitudes, beliefs etc to reduce dissonanceetc to reduce dissonance

Opinion LeadershipOpinion LeadershipOpinion Leaders are the individuals Opinion Leaders are the individuals

who actively seek information and who actively seek information and advice about products/services.advice about products/services.

Opinion leaders are also called as Opinion leaders are also called as influentials.influentials.

Ex: Any satisfied customer is a Ex: Any satisfied customer is a opinion leader.opinion leader.

Opinion leaders have strong informal Opinion leaders have strong informal relationships with the end-users.relationships with the end-users.

Opinion LeadershipOpinion LeadershipFeatures/characteristics of opinion Features/characteristics of opinion

leadersleadersThey are socially more active than end They are socially more active than end

usersusersOpinion leaders are primarily community Opinion leaders are primarily community

social leaders whom the mass market is social leaders whom the mass market is associated because of snob appeal.associated because of snob appeal.

Opinion leaders are found in all the areas Opinion leaders are found in all the areas of society and a specific person can of society and a specific person can become a opinion leader to a certain become a opinion leader to a certain product areas and they act as opinion product areas and they act as opinion followers to some other areas.followers to some other areas.

Opinion LeadershipOpinion LeadershipThe presence of the opinion leaders is The presence of the opinion leaders is

effective where the group influence is effective where the group influence is strong for the products that are visible strong for the products that are visible to whom the buyer respects. to whom the buyer respects.

Opinion leaders creates diffused Opinion leaders creates diffused network.network.

Opinion leaders are prompted by mass Opinion leaders are prompted by mass media to spread the information while media to spread the information while the general public seeks information the general public seeks information from them.from them.

If the influence of mass media on public If the influence of mass media on public is not direct, powerful or automatic then is not direct, powerful or automatic then it is mediated through opinion leadersit is mediated through opinion leaders

Opinion LeadershipOpinion LeadershipPeople who primarily interact within social People who primarily interact within social

class and acquire their lifestyle and other class and acquire their lifestyle and other ideas from people like themselves are ideas from people like themselves are called as opinion leaders.called as opinion leaders.

Opinion leaders are the sources of both Opinion leaders are the sources of both information and advice. It is a two way information and advice. It is a two way process. The consumers can seek the process. The consumers can seek the following information : following information :

Ex: which of the brands are the best, Ex: which of the brands are the best, where to shop, who provides the best where to shop, who provides the best service, how to make use of the specific service, how to make use of the specific product etcproduct etc

Opinion LeadershipOpinion LeadershipOpinion leaders satisfy variety of needs Opinion leaders satisfy variety of needs

by engaging a product-related by engaging a product-related conversation with the consumer.conversation with the consumer.

They obtain new product or new usage They obtain new product or new usage informationinformation

They reduce the perceived risk by They reduce the perceived risk by receiving the primary knowledge from a receiving the primary knowledge from a user about a specific product or brand.user about a specific product or brand.

They reduce the search time entailed in They reduce the search time entailed in the identification of a needed the identification of a needed product/service product/service

Opinion LeadershipOpinion LeadershipSelf – involvement motivatorsSelf – involvement motivators – reduce – reduce

post purchase uncertainty. Gain post purchase uncertainty. Gain attention or status. Assert superiority attention or status. Assert superiority and expertise.and expertise.

Product-involvement motivators Product-involvement motivators – – express satisfaction or dissatisfaction express satisfaction or dissatisfaction with a product/servicewith a product/service

Social involvement motivators Social involvement motivators – express – express neighbourhoodness and friendship by neighbourhoodness and friendship by discussing about product/service that discussing about product/service that may be useful to others.may be useful to others.

Opinion LeadershipOpinion Leadership

Message – involvement Message – involvement – express – express one’s reaction to a stimulating one’s reaction to a stimulating advertisement by telling others advertisement by telling others about itabout it

Innovativeness, willingness to talk, Innovativeness, willingness to talk, self-confidence, adaptability, self-confidence, adaptability, gregariousness, diffusion etc are gregariousness, diffusion etc are some of the qualities of the opinion some of the qualities of the opinion leaders.leaders.

Opinion LeadershipOpinion LeadershipMeasurement techniques for Measurement techniques for

determining opinion leadershipdetermining opinion leadershipSelf designating methodSelf designating method – Each – Each

respondent is asked a series of respondent is asked a series of questions to determine the degree to questions to determine the degree to which he/she perceives as an opinion which he/she perceives as an opinion leader. This method measures the leader. This method measures the individual’s self perceptionindividual’s self perception

Ex: Ex: do you influence other people in do you influence other people in the selection of the productsthe selection of the products

Opinion LeadershipOpinion LeadershipSociometric method – the members of Sociometric method – the members of

the social system are asked to identify the social system are asked to identify whom they give advice and to whom whom they give advice and to whom they go for advice and information they go for advice and information about a product category. This method about a product category. This method measures the pattern of the measures the pattern of the individuals living in the society.individuals living in the society.

Ex: whom do you ask, who asks you Ex: whom do you ask, who asks you for information about product for information about product category. category.

Opinion LeadershipOpinion LeadershipKey informant method Key informant method – carefully – carefully

selected key information in a social selected key information in a social system are asked to designate as system are asked to designate as opinion leadersopinion leaders

Ex: who are the most influential people Ex: who are the most influential people in the groupin the group

Objective MethodObjective Method – it artificially places – it artificially places individuals in a position to act as opinion individuals in a position to act as opinion leaders and measures the results of leaders and measures the results of their efforts. It measures the individuals their efforts. It measures the individuals ability to influence others.ability to influence others.

Opinion LeadershipOpinion Leadership

ConclusionConclusion Opinion Leaders are the individuals who Opinion Leaders are the individuals who

actively seek information and advice actively seek information and advice about products/services. Opinion leaders about products/services. Opinion leaders may be the friends, neighbours, family may be the friends, neighbours, family members , leaders of the social members , leaders of the social community.community.

Opinion leadership is effective due to the Opinion leadership is effective due to the effective word-of-mouth communicationeffective word-of-mouth communication

Opinion LeadershipOpinion LeadershipMeasurement techniques for Measurement techniques for

determining opinion leadershipdetermining opinion leadershipSelf designating methodSelf designating methodSociometric methodSociometric methodKey informant methodKey informant methodObjective MethodObjective Method

ConsumerismConsumerismConsumerism is a social force which Consumerism is a social force which

makes the business community more makes the business community more honest, efficient, responsive and honest, efficient, responsive and responsible.responsible.

Consumerism makes manufacturers & Consumerism makes manufacturers & sellers compelled to adopt fair trade sellers compelled to adopt fair trade practices.practices.

Consumerism can be viewed as an Consumerism can be viewed as an opportunity for businessmen to serve the opportunity for businessmen to serve the consumers in a better and more effecient consumers in a better and more effecient way.way.

ConsumerismConsumerismFeatures/ CharacteristicsFeatures/ Characteristics It proves to be a weapon for marketers It proves to be a weapon for marketers

to effectively implement the societal to effectively implement the societal concept of marketing.concept of marketing.

It helps the consumers to get rid of It helps the consumers to get rid of traders who resort to practices from traders who resort to practices from hoarders, black marketers etc.hoarders, black marketers etc.

It ensures that government takes It ensures that government takes necessary measures to protect the necessary measures to protect the consumer interests by guaranteeing consumer interests by guaranteeing their legitimate rights.their legitimate rights.

ConsumerismConsumerism It makes the marketers to provide the true It makes the marketers to provide the true

information in their advertisements, truth information in their advertisements, truth about labeling & product performance.about labeling & product performance.

Consumerism is the collective action of the Consumerism is the collective action of the consumers to protect their own interest.consumers to protect their own interest.

It has three determinants – business, It has three determinants – business, government and consumers itself.government and consumers itself.

Through consumerism, it is the moral Through consumerism, it is the moral responsibility of the manufacturer to responsibility of the manufacturer to provide the necessary instructions manual provide the necessary instructions manual to the consumers along with the productto the consumers along with the product

ConsumerismConsumerismTo ensure that the products are safe, To ensure that the products are safe,

products are tested before getting it products are tested before getting it affixed with the necessary quality affixed with the necessary quality standards approval.standards approval.

Consumer education – information Consumer education – information and knowledge about company, and knowledge about company, product etc.product etc.

Consumerism is any organised Consumerism is any organised movement of citizens and government movement of citizens and government to enhance the rights and power of to enhance the rights and power of buyer in relation to sellers.buyer in relation to sellers.

ConsumerismConsumerism

Factors influencing consumerismFactors influencing consumerismPoverty & backwardness of the countryPoverty & backwardness of the countryExplosive population growthExplosive population growthUnemploymentUnemployment IlliteracyIlliteracy Inability to understand the technical Inability to understand the technical

complexity of the product.complexity of the product.Disparities in the distribution of Disparities in the distribution of

income & wealth.income & wealth.

ConsumerismConsumerismThe Consumer Protection Act , 1986The Consumer Protection Act , 1986 It is an important legislation passed It is an important legislation passed

by the government of India to ensure by the government of India to ensure a proper system in the protection of a proper system in the protection of consumer rights and the redressal of consumer rights and the redressal of consumer disputes.consumer disputes.

The objectives of this act are The objectives of this act are To provide for the better protection of To provide for the better protection of

the interests of the consumersthe interests of the consumersTo make establishment of consumer To make establishment of consumer

councils and authorities for the councils and authorities for the settlement of consumer disputes.settlement of consumer disputes.

ConsumerismConsumerismAccording to section 2(d) of this act, he According to section 2(d) of this act, he

who purchases goods for consideration who purchases goods for consideration and who hires any services for and who hires any services for consideration is a consumer.consideration is a consumer.

To protect the legitimate rights of the To protect the legitimate rights of the consumer.consumer.

It includes all the services – banking, It includes all the services – banking, finance, insurance, transportation etcfinance, insurance, transportation etc

This act also ensures right to give This act also ensures right to give protection against marketing of goods protection against marketing of goods which are hazardous, dangerous to life which are hazardous, dangerous to life & property& property

ConsumerismConsumerismRight to give correct information on the Right to give correct information on the

quality, quantity, purity and standards of quality, quantity, purity and standards of the products/services delivered by the the products/services delivered by the company.company.

To protect the consumer from unfair trade To protect the consumer from unfair trade practices from the marketers.practices from the marketers.

The right to be able to make a choice from The right to be able to make a choice from a variety of products at competitive prices.a variety of products at competitive prices.

The right to seek redressal against unfair The right to seek redressal against unfair trade practices and exploitation.trade practices and exploitation.

The right to consumer educationThe right to consumer education

ConsumerismConsumerismStatutory Regulators of Consumer Statutory Regulators of Consumer

Protection Act, 1986Protection Act, 1986The Monopolies & Restrictive Trade The Monopolies & Restrictive Trade

Practices Act ( MRTP Act, 1969)Practices Act ( MRTP Act, 1969)Drugs Control Act, 1950Drugs Control Act, 1950Sale of Goods Act, 1935Sale of Goods Act, 1935Essential Commodities Act, 1955Essential Commodities Act, 1955Standard Weights & Measures Act, 1956Standard Weights & Measures Act, 1956Agricultural Products Grading & Agricultural Products Grading &

Marketing Act, 1937Marketing Act, 1937

ConsumerismConsumerismTopics coveredTopics coveredFeatures of ConsumerismFeatures of ConsumerismFactors influencing ConsumerismFactors influencing ConsumerismThe Consumer Protection Act, 1986The Consumer Protection Act, 1986Statutory Regulators Consumer Statutory Regulators Consumer

Protection ActProtection Act

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