MODULE 1Consumer behaviour: consumer behaviour is the study of how individuals, groups and organisations select buy, use and dispose of goods & services, ideas or experience to satisfy their needs and wants. Studying consumer behaviour provide clues for improving or introducing product and services, setting price, devising channel, crafting msz and developing other mkt activities.A/C to belch & belch consumer behaviour is the process and activities people engage in when searching for, selecting, purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires.Characteristics of consumer behaviour: 1) systematic process 2) influenced by various Factors 3) different for different costumers 4) different for different products 5) varies across regions 6) reflects status 7) Improves standard of living 8) undergoes a change 9) information search 10) Brand loyalty 11) vital for marketers 12) Result in spread-effect.Key Determinants Of Consumer Behaviours: Psychological Factors: Psychological factors differ from individual to individual. The basic Psychological factors that influence spending habits are follows: Motivation, Perception, Learning, Attitudes. Personal Factors: Personality, Self-Concept, Life Style, Demographic Factor. Social Factors: Reference group, Family, Roles & Status. Culture Factors: SCOPE OF CONSUMER BEHAVIOUR: 1. Consumer behaviour & Marketing Management: effective business managers realize the importance of the marketing to the success of their firms. Marketing defined as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods & services to satisfy individual and org. objective A sound understanding of consumer behaviour is essential to the long run success of any marketing program.2. Consumer behaviour & non-profit & Social Marketing: many writers have suggest that various social and non-profit org. can be viewed as having ideas or services that they are attempting to market to target group of consumers or constituents. Clearly A sound understanding of consumer behaviour & decision making can assist their efforts.3. Consumer behaviour & Govt. Decision Making: 1. Govt services 2. Consumer protection4. Consumer behaviour & Demarketing: the term DE marketing refers to all such efforts to encourage consumers to reduce their consumption of a particular product or services.5. Consumer behaviour & consumer education:CONSUMER ROLES:- initiator, gatekeeper, influencer, Decider, buyer, User, Disposer,IMPORTANCE OF CONSUMER BEHAVIOUR: Production Policies Price Policies Decision regarding channel of distribution Decision regarding sales promotion Exploiting Marketing opportunities Rapid introduction of New Products Implementing the Marketing Concept

CONSUMER DECISION MAKING MODELSA model is very often referred to as an abstract representation of a process or relationship. They helps us in many ways- They help in development of theories, they help to understand complex relationship, they provide framework for research. As the study of consumer behaviour evolved into a distinct newer approaches were offered to describe and explain what influences consumer behaviour. The focus of consumer decision making, especially on how individual consumers arrive at brand choices.IMPLICATIONS OF CONSUMER DECISION MAKING MODELS:- 1. Knowledge of consumer behaviour 2. Understanding of hidden information 3. Knowledge of consumer decision making process.1. HOWARD-SHETH MODEL:This model is slightly complicated and show that consumer behaviour is a complex process and concept of learning, perception and attitude, influence consumer behaviour. This model is applicable to individuals. This model basically serves two purposes: 1) it indicate how complex the whole question of consumer behaviour really is. 2) It provide framework for including various concept like learning, perception and attitude. Which influence consumer behaviour.VARIABLES OF BUYER BEHAVIOUR1) INPUT:- some inputs are necessary for the customer for making decisions. They are given below-A. Significative Stimuli: these are physical tangible characteristics of the Product. These are price, quality, distinctiveness, services rendered, availability of the products.B. Symbolic Stimuli: these are same as significative characteristics, but they include the perception of individuals, i.e. price high or low etc.C. Social Stimuli: these are stimulus provided by family, friends, social groups and social class.2) OUTPUT: - by output we mean purchase decision. After purchase there is satisfaction or dissatisfaction.A. PurchaseB. IntensionC. AttitudeD. Brand comprehensionE. Attention3) Perceptual and learning constructs: A. Perceptual constructs: this refers to all complex states or psychological process (perception) and how the individual deal with the information cues received from various sources.B. Learning constructs: these are more complex constructs in this theory. Motives refers to the goals the individual attempt to achieve through his/her buying behaviour. These goals derived from the various needs. More closely related to the buyers intension is his attitude toward the Product/ Brand.4) External variables: 1. Social and org. setting, 2. Social class, 3. culture, purchasing power.

IMPLICATION OF HOWARD-SETH MODEL: 1. It defines many of the variables which influences customers and give information about how they interact with each other, which helps marketers in forming the market strategy.2. It helps in different types of consumer problem solving and information search.3. It also helps marketer to understand the outcomes of consumers decisions are more than just purchase.ENGEL-KOLLAT-BLACKWELL MODEL:The EKB model is a multimediation model which shows both the components of decision making and the multiples relationships and interactions among the components. It identifies five distinct aspect of consumer decision making. Input, information processing, a decision process variables, and external influences.STEPS IN DECISION MAKING PROCESS:1) Problem recognition: the consumer will recognise a difference between his or her actual state and what the ideal state.2) Information Search: in this stage the customer will try to search more information from various sources.3) Alternative Evaluation: Now the individual will evaluate the various alternative brands.4) Choice: the consumer choice depends on his/her intension and attitude. 5) Outcome: the outcome may be either positive or negative.IMPLICATION OF EKB MODEL:- the EKB model has taken into consideration a large no. of variables , which influences the consumers. The model has emphasised on the conscious decision making process adopted by a consumers. This model is easy to understand and flexible. It recognise that consumer may not go through all the steps always.1) It focused on the level of consumer involvement and it emphasises on the decision making process regarding purchases which helps marketers in assessing the products significance to consumers.2) It incorporates numerous theories regarding information processing, motivation and change of attitude of customers, which help the marketers in innovating the products accordingly.NICOSIA MODELNicosia was one of the first consumer behaviour modellers to shift focus from the act of purchase itself to the more complex decision process that consumer engage in about products and services. The Nicosia models try to explain buying behaviour by establishing a link between the organisations and its consumers. The model state that message from the firm first influences the consumer toward the product and services. Based upon the situation the customer will have certain attitude toward the product or services. This may result in search for the product or an evaluation of the product attributes by consumer. If the above satisfy the consumer, it may result in a positive response. Otherwise negative.ELEMENTS OF NICOSIA MODEL:1) Field one: - field one has two sub area the consumer attribute and the firms attributes. Adv. Msz sent from the firm will reach the consumers attributes. Depending on the way, the message is received by the consumer, a certain attribute may develop.2) Field two: - the second field is related to the search and evaluation undertaken by the consumers.3) Field three: - the third area explains how consumer actually by the product.4) Field four: - area four related to the uses of the purchased items.IMPLICATION OF NICOSIA MODEL:-1. It enhance knowledge about the customers which is very help full for marketers.2. It focused on decision making process of consumers.MODULE 2CONSUMER PERCEPTION: Perception is psychological mediation. It refers to the process of organizing and interpreting sensory information. Perception is the process in which the brain selects, organizes, and interprets neural messages into a psychological experience on the basis of cognitive ability and socio-cultural values governing in the society .We are aware of the meanings that brain generates from sensory information.Perception enables us to recognize meaningful objects, pictures, faces, language, etc & interpret the same the way we want. ELEMENTS OF PERCEPTION:- Sensation drives perception:- Marketing science behind perception management is to identify right sensory stimuli which would invoke desired decision within consumer ( logical or abstract ) . This depends on the positioning objective. Sensory stimuli are Visual, Audio, Taste, Smell, Touch etc.While Sensation is a physical process of converting stimulus energies, without sensation, there would not be perception. Perception co-relates, integrates & comprehends the various sensations & information received. It is formed by both physiological & psychological factors.Absolute thresholds:- A threshold refers to a dividing point between energy levels that do and do not have a detectable effect. As the stimulus intensity increases, the probability of detecting a stimulus also increases. Absolute thresholds define the boundaries of sensory capabilities. An absolute threshold refers to the intensity level at which the probability of detection is 50 percent.Just Noticeable Difference:- JND refers to the smallest difference in the amount of stimulation that a specific sense can detect. Subliminal perception: - Subliminal perception refers to below threshold. Subliminal perception is the registration of sensory input without conscious awareness. Subliminal perception techniques are used by media to grab the attention using money, sex as strong stimulator. PROCESS OF PERCEPTION:Perceptual selection:- consumer will pick and choose marketing stimuli based on their needs and attitude. A car buyer will be more attentive to car ads. Steps in perceptual selection are Exposer, Attention, and Selective Perception.Perceptual organisation:- perceptual organisation emphasizes on subsequent activities that takes place in the perceptual process after the stimuli received.Perceptual interpretation:- the interpretation of stimuli is also uniquely individual, bcoz it is based on what individual expect to see in the light of their previous experiences. Perceptual distortion:- individual are subject to a no. of influences that tend to distort their perception such as: physical appearance, stereotype, first impression, jumping to conclusion, and halo effect.FACTORS INFLUENCING PERCEPTION: 1. Internal factors: needs & Motives, self-concept, beliefs, past experience, expectations, current psychological state.2. External factors: size, intensity, frequency, status, contrast.3. Factors in situation.INFLUENCE OF PERCEPTION ON CONSUMER BEHAVIOUR:1. Forms decision about company or product2. Perception about risk3. Increase brand loyalty4. Helps in noticing the differenceManagerial application of perception: stress, employment interview, performance expectations, performance evaluation, employee loyalty.

CONSUMER LEARNING: A process by which a consumer acquires the purchase & consumption knowledge experience which apply to his future behavior.Principle elements /Components of learning process are: Motivation: motivation depends on goals & needs and it stimulate learning. Clue: An object in the stimuli which capable of providing direction to motivated activity. Response: Behavioral response in the form of physical terms, Attitudes, Perception etc. Reinforcement: Environmental events which increases the psychological process of motivation, increasing the likelihood of specific response. Retention: Stability of learned behavior over a period of time. Influence of learning in consumer behavior: Recognition and recall: after exposure to an advertisement, consumer may experience varying degree of awareness.Cognitive responses to advertising: another response of learning on consumer is the degree to which consumer accurately comprehend the intended advertising message. Attitudinal and behavioural measures of brand loyalty: Brand Equity: brand equity defined as the stored value built up in a brand for achieving competitive advantage. Brands are valued for their equity. Brands add value.CONSUMER INVOLVEMENT: Consumer Involvement refers to degree of information processing or extent of importance that a consumer attaches to a product. The degree of involvement has a very significant effect on consumer behavior. When more expensive product are to be purchased, the consumer gets more involvement.To the extent that consumer is involved, the consumer acts to minimize the risk and to maximize the benefits gain from purchase and use.Factors influencing consumer involvement: Previous experience Interest Situation Social visibility Perceived riskCategories of consumer involvement:1. High involvement: High involvement/rational:- in this categories one finds expensive business purchases. High involvement/emotional:- business purchases in this categories include such things as office design, advertising, hiring employees etc. 2. Low involvement Low involvement/rational:- these are things one bye out of habits, without much thought. Low involvement/emotional:- these are products in which one gets emotions or feelings. It does not last as long time. So one cannot spend lot of time thinking about the purchase.CONSUMER ATTITUDE: In consumer behaviour context, attitude is a learned pre deposition to behave in a consistently favourable or unfavourable way with respect to a given stimuli. (Brand) Learned deposition refers to information source, perception, experience, exposure to media etc. which helps to build an attitude & gives momentum to the behaviour. The momentum can be negative or positive. Attitudes are likes or dislikes.Characteristics: attitude extremity, direct-indirect experience, accessibility, embeddedness, evaluative consistency.Functions: adjustment, knowledge, value-expressive, Ego-defence.Sources of influence on attitude formation: direct & past experience, direct marketing, exposure of mass media, personality factors, direct personal experience, social learning, and association.Influence of attitude on consumer behaviour: Negative learned attitude, positive learned attitude, Negative Experience attitude, Positive experience attitude.

MODULE 3Group dynamics: group dynamics deals with internal nature of groups, how they are formed, what structure and processes they adopt, how they function and affect individual members, other groups and the organisation.Nature: concerned with group, dynamic, rigidity or flexibility, continues process, defines effectiveness of leader.Components of group dynamics: Group norms: all group have established norms- i.e. acceptable standards of behaviour that are shared by the group members. Group role: all members are playing a role. By the term role, one means a set of expected behaviour patterns attributed to someone occupying a given position in a social unit. Group status: it is a socially defined position or rank given to group or group members by others. Group size: smaller groups are faster at completing task than larger ones and individuals perform better in smaller groups than in larger ones. Group leadership Group compositionCULTURE: - Culture is part of the external influences that impact the consumer. Culture represents influences that are imposed on the consumer by other individuals. Culture is a complex study which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by a person as a member of society Culture, as a "complex whole," is a system of interdependent components. Culture has several important characteristics: (1) Culture is comprehensive. This means that all parts must fit together in some logical fashion. (2) Culture is learned rather than being something we are born with. (3) Culture is manifested within boundaries of acceptable behavior.(4) Culture is gratifying & persistent.(5) Culture is integrated & organized. (6) Culture is acquired. SUB CULTURE: sub culture is defined as broad groups of consumer within a societys culture having similar values which distinguish them from the rest of society. A subculture is a group of people with a culture which differentiate them from larger culture to which they belongs.Types: nationality sub-culture, Religious sub culture, geographic and regional sub culture, age sub culture, sex as sub culture.Impact of sub-culture on consumer behavior: Unique traditions and behaviours Religious affiliation Urban sub urban rural distinctions Consumption per age groupCROSS CULTURE CONSUMER BEHAVIOUR: More aware Well informed Quality conscious Recognizing global brand Informed about international currencies

Module 4Personal influences: consumers purchase decision also influence by his personal characteristics such as age, sex, and stage in family life-cycle, education, occupation, income, his overall personality and overall self-concept.Strength of word-of-mouth communication:- cost effectiveness, speed, easy to set-up, effectively target market, boosts brand awareness, global spread.Weakness of word-of-mouth communication:- negative wom, human error, selective attention, customer dissatisfaction, competition prone.Opinion leadership: one of those people, who provides information about the product or product categories, whether it would useful to buy, how it would we used. He/she would also offer advice as to which of several brands is best and where it should be bought. This person known as opinion leader and tis process known as opinion leadership.Opinion leader is individual whose ideas and behavior serve as a model to others. & opinion leadership is a process by which the opinion leader influence the action or attitude of others.PROCESS OF OPINION LEADERSHIP: 1. Two step flow of communication:- in this the opinion leader are the direct receivers of information from advertisement. And then they interpret and transmit information to others through WOM.Mass Media------> Opinion leaders------> Opinion receivers.2. Multi step flow of communication:- in this model the information can flow directly to different types of consumers , including opinion leaders, gatekeepers, and opinion seekers.Types of opinion leaders:- generalized opinion leaders , market mavens, surrogate buyer, purchase pals.Influence of opinion leaders on consumer behaviours:- product involvement, self-involvement, message involvement, other.Impact of firms Promotional strategy on Opinion leadership:- Advertising Negative wom Marketing research Product sampling Retailing /personal selling Identifying opinion leadersCONSUMER DECISION MAKING PROCESS:- Pre-purchase process:- problem recognition, information search stage, evaluation of alternatives stage.Purchasing process:- brand loyalty, Impulse purchasing.Post-purchase process:- consumption and Evaluation, consumer satisfaction/dissatisfaction

DIFFUSION OF INNOVATIONS:- diffusion of innovation is the process by which the use of an innovation is spread within a market group over time and over various categories of adopters. It describes how a product is adopted by marketplace and what factors can influence the rate of adoption.DIFFUSION PROCESS: diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system.ELEMENTS:- innovation, communication channel, social system, timeFactors influencing rate of diffusion:-type of group, type of decision, marketing efforts, fulfillment of felt need, relative advantage, compatibility, complexity, trial ability, observe ability, cost.ADOPTION PROCESS:- adoption process focuses on the mental process through which an individual passes from learning about an innovation to the final adoption .Stages In adoption process: awareness, attitude, legitimation, trial, adoption. Factors influencing adoption process:- Innovation characteristics: relative advantage, compatibility, divisibility, communicabilityOrganisations: environment,, education level, size, profit, age, managementPeople:Personal influence