flowchart LR N[1. Need recognition] --> I[2. Information search] I --> E[3. Evaluation of alternatives] E --> P[4. Purchase decision] P --> PP[5. Post-purchase behaviour] style N fill:#FFEBEE,stroke:#C62828 style PP fill:#E8F5E9,stroke:#2E7D32
74 Consumer Behaviour
74.1 What is Consumer Behaviour?
Consumer behaviour is the study of how individuals, groups and organisations select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants — Kotler (kotler2021?). It draws on psychology, sociology, anthropology, economics and behavioural science.
Three working ideas:
- It is the study of decisions — what to buy, when, where, why, how much.
- It covers consumption, not just purchase — pre-purchase to post-purchase.
- It explains both individual and group behaviour.
74.2 Why Study Consumer Behaviour?
TipImportance of Consumer Behaviour
| Stakeholder | Use |
|---|---|
| Marketers | Design marketing mix; segment, target, position |
| Public policy | Consumer protection, advertising standards |
| Educators | Teach effective marketing |
| Consumer | Make better purchase decisions |
74.3 Factors Influencing Consumer Behaviour
Kotler classifies influences into four families:
TipFour Families of Influences on Consumer Behaviour
| Family | Examples |
|---|---|
| Cultural | Culture, sub-culture, social class |
| Social | Reference groups, family, role and status |
| Personal | Age, life-cycle stage, occupation, income, lifestyle, personality |
| Psychological | Motivation, perception, learning, beliefs, attitudes |
74.3.1 Cultural factors
Culture is the most fundamental determinant — the learned values, beliefs and customs of a society. Sub-cultures are based on nationality, religion, race, region. Social class is a relatively homogeneous and enduring division of society.
74.3.3 Personal factors
Age and life-cycle stage drive product needs (baby food → school → work → retirement). Lifestyle — Activities, Interests, Opinions (AIO) — captures consumer’s pattern of living.
74.3.4 Psychological factors
Four key psychological drivers:
- Motivation — Maslow’s hierarchy, Freud’s unconscious drives, Herzberg’s two-factor.
- Perception — selective attention, distortion, retention.
- Learning — drives, stimuli, cues, responses, reinforcement.
- Beliefs and attitudes — relatively enduring evaluations.
74.4 Theories and Models of Consumer Behaviour
TipMajor Models of Consumer Behaviour
| Model | Authors / Year | Idea |
|---|---|---|
| Economic / Marshallian | Marshall | Rational utility-maximising consumer |
| Psychoanalytic / Freudian | Freud | Unconscious drives shape choices |
| Sociological / Veblenian | Veblen | Conspicuous consumption; social status |
| Pavlovian / Learning model | Pavlov | Classical conditioning |
| Howard-Sheth model | Howard & Sheth (1969) | Comprehensive: inputs → perception → learning → output |
| Engel-Kollat-Blackwell (EKB) | EKB (1968) | Five-stage decision process |
| Nicosia model | Nicosia (1966) | Firm-consumer interaction |
| Theory of Reasoned Action (TRA) | Ajzen and Fishbein | Attitude + subjective norm → behaviour |
| Theory of Planned Behaviour (TPB) | Ajzen (1985) | TRA + perceived behavioural control |
74.5 The Consumer-Decision Process
The standard five-stage decision process:
TipFive Stages of the Consumer Decision Process
| Stage | Working content |
|---|---|
| Need recognition | Trigger — internal (hunger) or external (advertisement) |
| Information search | Internal (memory) and external (friends, web, ads) |
| Evaluation of alternatives | Comparison on chosen attributes |
| Purchase decision | Choice of brand, dealer, quantity, time, payment |
| Post-purchase behaviour | Satisfaction or cognitive dissonance; repeat or switch |
74.6 Types of Buying Behaviour
Henry Assael (1987) classified buying behaviour by involvement and brand differences:
TipAssael’s Four Types of Buying Behaviour
| Brand differences | Low involvement | High involvement |
|---|---|---|
| Significant | Variety-seeking | Complex |
| Few | Habitual | Dissonance-reducing |
- Complex buying behaviour — high involvement, big brand differences (cars, houses).
- Dissonance-reducing — high involvement, few differences (insurance).
- Habitual — low involvement, few differences (salt, sugar).
- Variety-seeking — low involvement, big differences (chocolates, snacks).
74.7 Buying Roles
TipFive Buying Roles in a Family Decision
| Role | Working content |
|---|---|
| Initiator | Suggests buying |
| Influencer | Shapes the decision |
| Decider | Makes the final call |
| Buyer | Carries out the purchase |
| User | Consumes the product |
74.8 Consumer Decision-Making in the Digital Age
The classical funnel has been disrupted. The McKinsey consumer-decision journey (2009) describes a more circular process: initial consideration → active evaluation → moment of purchase → post-purchase experience → loyalty loop. Online reviews, social proof, influencer recommendations and algorithmic recommendations now play prominent roles.
74.9 Consumer Protection — India
TipIndian Consumer-Protection Architecture
| Body / Statute | Coverage |
|---|---|
| Consumer Protection Act 2019 | Replaces 1986 Act; broader; covers e-commerce; CCPA |
| Central Consumer Protection Authority (CCPA) | Investigates and acts on misleading ads, unfair trade practices |
| Consumer Disputes Redressal Commissions | District, State, National |
| National Consumer Helpline | 1915 (toll-free) |
| ASCI Code | Self-regulatory code for advertisers |
The 2019 Act recognises six rights of consumers: safety, information, choice, redressal, hearing, education.
74.10 Exam-Pattern MCQs
NoteEight-question set
Q1. Which of the following is not a category of factors influencing consumer behaviour in Kotler’s framework?
A. Cultural B. Social C. Personal D. Tax-related
Answer: D. Kotler’s four families are Cultural, Social, Personal, Psychological.
Q2. Match each model with its core idea:
| Model | Idea | ||
|---|---|---|---|
| (i) | Marshallian | (a) | Conspicuous consumption |
| (ii) | Freudian | (b) | Rational utility maximisation |
| (iii) | Veblenian | (c) | Unconscious drives |
| (iv) | Pavlovian | (d) | Classical conditioning |
A. (i)-(b), (ii)-(c), (iii)-(a), (iv)-(d) B. (i)-(a), (ii)-(b), (iii)-(c), (iv)-(d) C. (i)-(c), (ii)-(d), (iii)-(b), (iv)-(a) D. (i)-(d), (ii)-(a), (iii)-(c), (iv)-(b)
Answer: A.
Q3. Arrange the five-stage consumer-decision process in correct order:
- Information search
- Need recognition
- Purchase decision
- Evaluation of alternatives
A. (ii), (i), (iv), (iii) B. (i), (ii), (iii), (iv) C. (iv), (iii), (i), (ii) D. (iii), (i), (iv), (ii)
Answer: A. Need → Information → Evaluation → Purchase → Post-purchase.
Q4. Match each Assael type of buying behaviour with its content:
| Type | Content | ||
|---|---|---|---|
| (i) | Complex | (a) | High involvement; few brand differences |
| (ii) | Dissonance-reducing | (b) | High involvement; big brand differences |
| (iii) | Habitual | (c) | Low involvement; few differences |
| (iv) | Variety-seeking | (d) | Low involvement; big differences |
A. (i)-(b), (ii)-(a), (iii)-(c), (iv)-(d) B. (i)-(a), (ii)-(b), (iii)-(c), (iv)-(d) C. (i)-(c), (ii)-(d), (iii)-(a), (iv)-(b) D. (i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
Answer: A.
Q5. Match each buying role with its content:
| Role | Content | ||
|---|---|---|---|
| (i) | Initiator | (a) | Carries out the purchase |
| (ii) | Decider | (b) | Suggests buying |
| (iii) | Buyer | (c) | Makes the final call |
| (iv) | User | (d) | Consumes the product |
A. (i)-(b), (ii)-(c), (iii)-(a), (iv)-(d) B. (i)-(a), (ii)-(b), (iii)-(c), (iv)-(d) C. (i)-(c), (ii)-(d), (iii)-(b), (iv)-(a) D. (i)-(d), (ii)-(a), (iii)-(c), (iv)-(b)
Answer: A.
Q6. Theory of Planned Behaviour was developed by:
A. Maslow B. Icek Ajzen C. Howard and Sheth D. Veblen
Answer: B. Ajzen (1985) — extension of TRA with perceived behavioural control.
Q7. Match each component of the Howard-Sheth model with its content:
| Component | Content | ||
|---|---|---|---|
| (i) | Input variables | (a) | Brand choice, attention, satisfaction |
| (ii) | Perceptual constructs | (b) | Stimuli — significative, symbolic, social |
| (iii) | Learning constructs | (c) | Attitudes, motives, intentions |
| (iv) | Output variables | (d) | Selective attention, perceptual bias |
A. (i)-(b), (ii)-(d), (iii)-(c), (iv)-(a) B. (i)-(a), (ii)-(b), (iii)-(c), (iv)-(d) C. (i)-(c), (ii)-(a), (iii)-(d), (iv)-(b) D. (i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
Answer: A.
Q8. The Consumer Protection Act, 2019 recognises how many consumer rights?
A. Three B. Four C. Six D. Eight
Answer: C. The Act recognises six rights: safety, information, choice, redressal, hearing, education.
ImportantQuick recall
- Consumer behaviour — selection, purchase, use, disposal of products and services.
- Kotler’s 4 families of influences: Cultural, Social, Personal, Psychological.
- Models: Marshallian, Freudian, Veblenian, Pavlovian, Howard-Sheth, EKB, Nicosia, TRA / TPB (Ajzen).
- Five-stage decision process: Need → Search → Evaluate → Purchase → Post-purchase.
- Cognitive dissonance (Festinger) is a classic post-purchase phenomenon.
- Assael’s four buying types: complex, dissonance-reducing, habitual, variety-seeking — by involvement × brand differences.
- Five buying roles: initiator, influencer, decider, buyer, user.
- McKinsey’s modern consumer-decision journey — circular, with loyalty loop.
- Consumer Protection Act 2019: six rights (safety, information, choice, redressal, hearing, education); CCPA, three-tier Commissions; helpline 1915.
74.3.2 Social factors
Reference groups — primary (family, friends), secondary (clubs, professional), aspirational (people one wants to be like), dissociative (people one wants to avoid). The family is often the most important consumer-decision unit.