CHANDIGARH UNIVERSITY

Course Objective

• To understand the Scope and Relevance of Consumer Behaviour

Studies.
• To understand what consumer behaviour is and the different
types of consumers.
• to understand the relationship between consumer behaviour
and the marketing concept, the societal marketing concept, as
well as segmentation, targeting and positioning.
• to understand the relationship between consumer behaviuor
and customer value, satisfaction, trust and retention.
 What is Consumer Behavior?

• Consumer Behavior is “The behavior that consumers display

in searching for, purchasing, using, evaluating and disposing of
products and services that they expect will satisfy their needs”

• Consumer Behavior is “Activities people undertake

when obtaining, consuming and disposing of
products and services”
• Think of a recent purchase:

• Briefly draw a flowchart of the

steps you recall moving through
from the awareness of need to
post purchase
 Model of the Issues that arise during stages in the
Consumption Process

Consumer’s Perspective Marketer’s Perspective

How is consumers attitude

What to buy, what he needs,
Pre- formed/or changes toward a
where to seek information,
Purchase product, how they judge
alternatives
issues which product is superior

Is acquiring the product a

stressful or pleasant How Time , Pressure or Store
Purchase experience, what the display, affect the consumer
issues purchase reflects about the purchase
consumer

How satisfactory is the

Post- Will the consumer buy the
product, does it fulfill the
Purchase product again, does he refer.
need
issues
 Marketing Mix Determination

PRODUCT

PRICE

PLACE

PROMOTION
 Marketing Mix Determination

PRODUCT

 What size shape and the

feature’s should the product
have.
 How should it be packaged

 What aspect of service is

most important to consumers
 How it is to be designed
 Marketing Mix Determination

PRICE
 PRICE SENSITIVITY OF CONSUMERS

 PRICE AWARENESS

 NEW PRODUCT LAUNCH

 LIST PRICE

 DISCOUNTS,ALLOWANCES AND
PAYMENT METHODS
 Marketing Mix Determination

PLACE
 DISTRIBUTION

 PROCESS RELATED ISSUES

 CONSUMER’S LOYALTY.

 WHAT TYPE OF RETAIL OUTLET

SHOULD SELL.

 LOCATION AND IN WHAT

NUMBERS
 Marketing Mix Determination

PROMOTION
• THE ADVERTISING
• IDENTIFY TARGET MARKET
• REGION SPECIFIC
• CONSUMER ATTENTION
• COLOUR AND CONTRAST
• SIZE
• MEDIUM
• EXPENDITURE
 Study Objective

• To highlight the successful strategies that Chik Shampoo

employed in the Indian rural market: A study keeping in
mind Marketing MIX
 A Prelude
• C K Ranganathan, CMD of CavinKare, has shown the world it is
possible to beat the multinationals even in the most difficult
market of FMCG.

• Ranganathan's journey, which started from a small town of

Cuddalore in Tamil Nadu, has been an amazing one.

• A business which he started with only with Rs 15,000 is now

worth Rs 500 crore (Rs 5 billion).
 How was the Product Placed
• When talcum powder was sold in tin containers, Cavin Care sold
it in 20/50/100 gm packs. When Epsom salt came in 100 gm
packs, they sold it in 5 gm sachets ”.

• “Whatever I make, I want the coolies and rickshaw pullers to

use. I want to make my products affordable to them, he used to
say” Chinni Krishnan, father of Ranganathan ,CMD-CavinCare
• Velvette shampoo sachets launched in the early eighties
• First Shampoo to launch variants such as Rose, Jasmine etc.
• The shampoo market surged by 25% By mid 1990
• Small packs contributed 40% of total shampoo volumes
• Rural markets grew much faster than urban markets
• The key challenge was to reach rural markets,
Packaging became critical for rural marketing
• 1999- Chik, second largest shampoo brand in India-(also in
rural markets)- next only to HLL’s Clinic plus
 Key factors in Rural Purchase

Factors Influencing Purchase % of Respondents

in rural market
Packaging 60
Recommendation by Retailer 25
Price 4
Logo Identification 2
Doesn’t Check any factor 9

 Packaging & branding was made prominent to enable quick

identification by the rural consumer”
 Chik- packaging changed to bring in design & color elements,
enable ‘on-shelf’ differentiation and aided recall
Consumer behavior is a blend of :

Psychology

Economics C.B. Sociology

Cultural Social
Anthropology Psychology
 Determinants of Consumer Behavior

• Economic Determinants
– Personal Income
– Family Income
– Consumer Credit
– Living Standard
– Consumer Income Expectations
– Availability of Consumer Credit
– Consumer Liquid Assets
• Psychological Determinants
– Motivation and Morale
– Perception
» Perception and Communication
» Perception and Price
» Perceived risk
» Store perception
– Attitude
– Learning
– Personality
• Sociological Determinants
– Group of Individual can be in the form of
• Family
• Reference Groups
• Opinion Leaders
• Social Class & Caste
• Culture
• Market Segmentation
 Market Segmentation

• Market Segmentation can be defined as

• the process of dividing a market into distinct subsets of
consumers
• with common needs or characteristics
• and selecting one or more segments to target with a distinct
marketing mix.
 Benefits of Segmentation

• Facilitates proper choice of target market.

• Facilitates tapping of the market, adapting, the offer to the
target.
• Makes the marketing effort more efficient and economic
• Benefits the customers as well marketers.
 Bases for Market Segmentation

• Geographic
• Demographic
– Age
– Life Cycle Stage
– Social Class
– Others
• Psychographic Segmentation
– Life Style
 Bases of Industrial Market Segmentation

• Size of the customer

• Small Buyers
• Geographic Location
• End use
• Buyer behavioral motivation or Purchase criteria
 Stages of Segmentation

• Define the total market

• Choose the bases of segmentation
• Evaluation of the segments
– Is it sizeable
– Is it growing
– Is it profitable
– Is it accessible
– Is it compatible with the firms resources and capabilities
• Draw chart and Map products and segments
• Target an opportunity and positions a solutions
• Evolution of Consumer
Behaviour
 Consumer Decision Making

• Views on Consumer decision • Factors Influencing purchase

making decision
– Economic Person – Situational
– Emotional Personal – Product
• Information retrieved from – Consumer related factor
internal search • Alternative Evaluation
– Brand recall – Decide the brand to be
– Recall of attributes purchased
– Recall of Evaluation – Gather information on
– Recall of experience alternative brands
– Determine the criteria for
evaluation
– Take a final decision on brand
based on determinative criteria
 Consumer Decision Making Model
External Influence

Sociocultural Environment:
Firm’s marketing effort: Family
Product Informal Sources
Input Other noncommercial sources
Price
Social Class
Channels of Distribution
Subculture and Culture
Promotion

Consumer Decision Making

Psychological Field:
Need Recognition
Motivation
Prepurchase search Perception
Evaluation of Learning
Process Alternatives Personality
Attitudes

Experience

Post decision Behavior

Purchase
Trial
Repeat Purchase
Output
Postpurchase Evaluation
 Post Purchase Stage

• Perception is right
• Acquire knowledge for his future decision
• Is he satisfied
• Disposition about the product after usage
• Cognitive Dissonance
– Take No action
– Discontinue
– Complaint to the consumer court/other forums
– Private responses
– Factors effecting complaint
– Significance of consumption
– Knowledge and experience
– Difficulty of seeking redress
– Chances of success in complaining
• Disposition
 Practical Implication
• The Student will understand that Buyer decision processes are the
decision making processes undertaken by consumers in regard to a
potential market transaction before, during, and after the purchase of
a product or service.
• More generally, decision making is the cognitive process of selecting a
course of action from among multiple alternatives. Common examples
include shopping, deciding what to eat. Decision making is said to be a
psychological construct. This means that although we can never "see“ a
decision, we can infer from observable behaviour that a decision has
been made.

• Therefore we conclude that a psychological event that we call decision

making has occurred. It is a construction that imputes commitment to
action. That is, based on observable actions, we assume that people
have made a commitment to effect the action.
 Course Outcomes
• Students will understand the concept of consumer behaviour
and why it is important for marketer to understand it.

• Students will understand the Basic Model of Consumer

Behaviour: Buying Decision Process- Problem Recognition and
other different stages of buying decision model.
 References
• Hundal, B.S. (2001). “Consumer Behaviour in Rural Market : A
Study of Durables”. Unpublished Ph.D. Thesis. Guru Nanak
Dev University. Amritsar.
• Soloman M. (2003). Consumer Behaviour Buying, Having and
Being. (India: Pearson Education Inc.)
• Hawkins De., Best Roger J. and Caney Kenneth A. (1996).
Consumer Behaviour. (New Delhi : Tata Mc Graw Hill
Publishing Co. (P) Ltd.)
• Davis, H. (1970). Dimensions of Marital Roles in Consumer
Decision Making. Journal of Marketing Research. 7. (May).
169.177.