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Future Institute of Management Consumer Behavior : Sem III
Prof.RKP MBA
Prof.RKP MBA
Consumer BehaviorFuture Institute of Management
MBA + PGPM
Prof. Rajkamal Pandey ( Prof. RKP)
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Core Content
Unit 1
•Understanding Consumer Behaviour
Unit 2
•Consumer & Market Segmentation
Unit 3
•Environmental & Group Influence
Unit 4
•Perception & Learning
Unit 5
•Individual Determinants of Consumer Behavior
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Core Content
Unit 6
•Consumer Decision Process
Unit 7
•Consumer Research
Uni t 8
•Diffusion of Innovation
Unit 9
•Consumerism & Marketing Ethics
Unit 10
•Business Buyer Behaviour
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Source of Knowledge
Course Books
• Consumer Behaviour
: - Schiffman / Lazer
• CB – Building Mktg Strategy
: - Hawkins / Roger
• CB – Text & Cases
: - Satish Batra
• CB in Indian Context
: - Srivastava
Reference Books• ICFAI : Case Study Series• The afaqs (Brand ) Reporter• Pitch / USP AGE• 4 P’s• Impact• Business Today / Business World
Supplements• Brand Equity - ET• Brand Line - Hindu• Strategist – Business Standard
Books• We are like that only – Rama Bijapurkar• It happened In India – Kishore Biyani
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Internal Marks Evaluation
Presentations – 20 marks
Class Test – 10 marks
Class
Participa
tion – 10
marks
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
The aim of marketing should be to understand and satisfy the consumer’s actual need to optimum
- Kishore Biyani
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Relevance of Consumer Behaviour
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Evolution in Buying Behaviour
• DemandNeed
• Ready to wearStitch
• OwningBuying
• ValueCost
• Life time RelationshipOne time Purchase
• SplurgingSpending
• AnticipationAcceptance
• BrandProduct
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Core Concepts
Needs, Wants & Demand• Traditionally, needs are understood as the basic requirements of a human
being whereas wants are defined as the luxuries for which a consumer
craves for.
• A need is defined as the unsatisfactory condition of the individual that
leads him to her to an action that will make the condition better
• A want is defined as a desire to obtain more satisfaction than is absolutely
necessary to improve an unsatisfactory condition
• Demands are wants for specific products backed by an ability to pay.
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Core Concepts
Needs, Wants & Demand
Factors which decide Needs, Wants & Demand• Personal Factors ( Internal Factors)• Environmental Factors ( External Factors)
Foot wear Action Nike
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Core Concepts
ProductA product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want
Product
Physical Good
(Tangible)
Service (Intangible) Retail Person Organization Place Idea
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Core ConceptsMarketers• A marketer is someone who seeks a response – attention, a purchase, a
vote – from another party, called the prospect.• Marketer are indeed skilled at stimulating demand for their company’s
products.• Marketer’s are responsible for demand management.
• Consumers• Communication
• Distribution• Forecast
Demand
Supply
Sales
Brand
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Core Concepts
ConsumersAny individual who has a propensity to consume and ability to pay is termedas Consumers
Consumers
End users
Decision Makers
Influencers
King
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Core Concepts
ConsumersIt’s important for marketer’s to understand the following :
Taste
Preference
Lifestyle
Habit
Values and Attitude
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Meaning of Consumer Behaviour
Consumer Behaviour is a rapidly growing discipline of study. It means more
than just how a person buys product. It reflects the totality of consumer
decisions with respect to acquisition, consumption & disposal activities.
To succeed in a dynamic marketing environment, marketers have an urgent
need to learn & anticipate whatever they can about the consumers. The
better they know & understand consumers, the more advantageous it would
prove in accomplishing their organizational objectives
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Meaning of Consumer Behaviour
Consumer Behaviour Defined• “The behaviour that consumers display in searching for, purchasing, using,
evaluating & disposing of products & services that they expect will satisfy their needs”
• “The study of individuals or organizations and the activities undertaken by them to select. Procure & use products or services to satisfy their needs & wants”
• Consumer Behaviour focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption related items.
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Origin of Consumer Behaviour
The field of Consumer Behaviour is rooted in the marketing concept, abusiness orientation that evolved in the 1950’s through several alternativeapproaches towards doing business
Production Concept
Product Concept
Selling Concept
Marketing Concept
Consumer Concept
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Origin of Consumer Behaviour
Production Concept• It holds that consumers are mostly interested in product availability at low
prices, its implicit marketing objectives are high production efficiency, low costs and mass distribution
Product Concept• It holds that consumer will buy the product that offers them the highest
quality, the best performance and the most features. A product concept often leads to “marketing myopia”
Selling Concept• It holds that consumers are unlikely to buy the products unless they are
aggressively persuaded to do so – mostly through the hardsell approach.
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Origin of Consumer Behaviour
Marketing Concept• Instead of a product centric, “Make and sell” philosophy, business shifted
to a customer centric, “Sense and respond” philosophy• A company must determine the needs & wants of specific target markets
& deliver the desired satisfactions better than the competition• The job is not to find right customers for your product, but to find the
right product for your customer
Apparently, Companies centered on understanding customers are the onesthat continue to grow & remain leaders in their industries inspite of increasedcompetition & changing business environments.
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Origin of Consumer Behaviour
Consumer Concept• Marketers today have realized that in order to outperform competitors they
must achieve the full potential from each & every customer. They must
make the customer the core if the company’s culture, across all the
departments & functions and ensure that each & every employee views any
exchange with a customer as part of a customer relationship, not as
transaction
• The three drivers of successful relationships between marketers &
customers are Customer Value, Customer Satisfaction & Customer Retention
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Consumer Concept
Customer Value• Customer value is defined as the ratio between the customers perceived
benefits & the resources used to obtain those benefits
Customer Satisfaction• It is the individual’s perception of the performance of the product or
services in relation to his or her expectations
Customer Retention• The overall objective of providing value to customers continuously &
more than the competition is to have highly satisfied customers, this strategy of customer retention makes it in the best interest of customers to stay with the company rather than switch to another firm
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Disciplines in the study of Consumer Behaviour
Economics
Study of how consumers spend their funds
Cultural Anthropology
It explores the development of core beliefs, values & customer that individual inherit from their family
Social Psychology
Studies how an individual operates in a groupSociology
Study of groups
Psychology
Study of individual which includes motivation, perception, attitudes & personality
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Consumer Behaviour Application in Marketing
Marketing
Analysing Market
Opportunity
Selecting Target Market
Marketing Mix
Decisions
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Projects & PresentationsTopics for Presentation :
• FMCG Industry• Consumer Durables Industry• BFSI Industry• Real Estate Industry• Media & Entertainment Industry• IT / ITES Industry• Online Marketing Industry• Luxury Brand Industry• Healthcare Industry• Service Industry• Education Industry• Automobile Industry• Retail Industry• Telecom Industry
• Scope of Presentation :
• Industry Overview :- Overall Market size- Industry growth rate- GDP Contribution- FII Limits- Existing Companies
• PEST Analysis• SWOT Analysis• Significance of Consumer Behaviour• Case Analysis of the leading player
in that industry- BCG Matrix
• Future Outlook
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Future Institute of Management Consumer Behaviour : Sem III
Prof. RKP MBA
Projects & Presentations
• Total Marks : 20 M-Allocation : Content : 14 M ( 7 M each for Hardcopy & PPT)-Commn / Cordn : 6 M
• Time Limit : 30 mins per Group
• Team needs to divide themselves into 2 subgroup : Presentation Group / • Q&A Group, consisting of equal number of students
• Logical & Valid Questions from students will be appreciated
• Marks : Weighted Average of individual scores
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