CONSUMER BEHAVIOUR

MODULE 1
FEATURES OF CB
• Process
a. Need Identification
b. Information Search
c. Listing Alternatives
d. Evaluating Alternatives
e. Purchase Decision
f. Post purchase evaluation
FEATURES OF CB
• Influenced by Various Factors
a. Marketing
b. Personal
c. Psychological
d. Situational
e. Social
f. Cultural
Features of CB
• Different to Different Customers
• Different for different products
• Varies across Regions
• Vital for Marketers
• Reflects Status
• Results in Spread-effect
• Improves Standard of living
• Undergoes a change
Importance of Consumer Behavior
• Understanding consumer behavior is essential for a company to succeed in
its current products and new product launches. Consumers have different
thought processes and attitudes toward buying a particular product. If a
company fails to understand the reaction of a consumer towards a product,
there are high chances of product failure.
• Due to the changing fashion, technology, trends, living style, disposable
income, and similar other factors, consumer behavior also changes. A
marketer has to understand the factors that are changing so that marketing
efforts can be aligned accordingly.
• What is the importance of consumer buying behavior? This article outlines
several of them.
Importance of Consumer Behavior
• 1. Consumer Differentiation:
• In marketing, consumer differentiation is a way to distinguish a consumer
from several other consumers. This helps to make a target group of
consumers with the same or similar behavior.
• Though you have a targeted customer demographic in your business, you
can still have variations between individual customers. Each group of
consumers is different, and their needs and wants differ from other
groups. When a marketer is knowledgeable about the differentiation of
each group of consumers, he can design a separate marketing strategy.
• Consumer differentiation will help to tailor your strategies to the needs of
varying customer groups. When consumer differentiation is done, you can
expand the width and breadth of your services. You will be able to
effectively serve a wider group of people.
Importance of Consumer Behavior
• 2. Retention of Consumers:
• “Consumer behavior is of most importance to marketers in business studies
as the main aim is to create and retain customers,” says Professor Theodore
Levitt (Kumar, 2004).
• Consumer behavior is not just important to attract new customers, but it is
very important to retain existing customers as well. When a customer is
happy about a particular product, he/she will repeat the
purchase. Therefore, marketing the product should be done in such a way
that it will convince customers to buy the product again and again.
• Thus, it is very evident that creating customers and retaining them is very
important. This can be done only by understanding and paying attention to
the consumer’s buying behavior.
Importance of Consumer Behavior
• 3. Design Relevant Marketing Program:
• Understanding consumer behavior allows you to create effective marketing strategies. Each campaign can speak
specifically to a separate group of consumers based on their behavior.
• For example, while targeting the kid's market, you may have to look out for venues such as TV ads, school
programs, and blogs targeting young mothers. You will need to take different messaging approaches for
different consumer groups.
• A study of consumer behavior enables marketers to understand what motivates consumers to make purchases.
Furthermore, the same motive can be utilized in advertising media to stir the desire to make a purchase.
Moreover, marketers should make decisions regarding the brand logo, coupons, packing, and gifts based on
consumer behavior.
• 4. Predicting Market Trend:
• Consumer behavior analysis will be the first to indicate a shift in market trends. For example, the recent trend
of consumers is toward convenience and quality food. This changing market trend was observed by many
brands during a study conducted using 128K customer reviews.
• By conducting a consumer behavior study, a company saves a lot of resources that might otherwise be allocated
to produce a product that will not be sold in the market. For example, in summer, a brand will not waste its
resources producing a product that will not sell in summer. Based on consumer behavior, the company decides
on a production strategy that will save on warehouse costs and marketing costs.
Importance of Consumer Behavior
• 5. Competition:
• One of the most important reasons to study consumer behavior is to find
out answers to some of the questions:
• Is the customer buying from your competitor?
• Why is a consumer buying from your competitor?
• What features attract a consumer to your competitor's products?
• What gaps are your consumers identifying in your products when
compared to your competitors?
• Studying consumer behavior facilitates understanding and facing
competition. Based on consumers’ expectations, your brand can offer
competitive advantages.
Importance of Consumer Behavior
• 6. Innovate New Products:
• We all know some of the big names, such as New Coke, Crystal Pepsi, Colgate Kitchen Entrées, Earring Magic
Ken Doll, and Wheaties Dunk-a-Balls Cereal. Can you see the similarities between these products? Yes, they all
failed!!
• The sad truth is that most new products and new ideas end up in failure. There is an estimate of new product
failures – they range from 33% to 90% based on the kind of industry.
• Companies consistently strive hard to improve the success rate of their new products or new ideas. One of the
most important ways is to conduct a sound and thoughtful consumer behavior study.
• With the help of consumer behavior analysis, Nike realized that most of its target audience is not professional
athletes, but many of them were striving to be more like them. So at the 2012 Olympics in London, Nike
introduced a campaign to encourage athletics called ‘Find Your Greatness'. It aimed to promote the aspirations
of being an athlete, not just with high-performing athletes, but wanted to include all people regardless of their
physical capability.
• The campaign was well planned and was data-driven, of course, carefully analyzed before taking any action. This
message inspired many consumers and had enormous appeal to target consumers.
Importance of Consumer Behavior
• 7. Stay Relevant in the Market
• When the world is changing as rapidly as it is happening today, the biggest
challenge we all face is staying relevant to our target market. And do you
know what the main reason behind the rapid changes is? It is the
ever-changing behavior of our customers.
• Today’s consumers have greater choices and opportunities, which means
they can easily switch to a company that offers better products and
services.
• Losing relevance will only cost the company its market share. Haven’t we
seen Sony Walkman failing to stay relevant in the digital music era and the
taxi industry doom with no preparedness to battle the UBER uprise!!
Importance of Consumer Behavior
• 8. Improve Customer Service
• Consumers require different levels of customer service, and understanding
the differences within your customer base will help you provide the most
appropriate service for individual needs.
• For example, if you own an electronics store, high school or college
students who buy a new laptop are more likely to understand the features
they’re looking for than a person buying his first computer. With the first
demographic, your service goal will be to provide information about the
latest trends in technology, while with the second demographic, you’ll need
to spend more time educating the customer, finding out what his specific
needs are, and even teaching him how to use the features of his new
electronic device.
TYPES OF CONSUMER BEHAVIOUR
COMPULSIVE BUYING BEHAVIOUR
• Compulsive buying disorder is characterised by excessive or poorly
controlled preoccupations, urges or behaviours regarding shopping
and spending, which lead to adverse consequences.
 DIVERSITY OF CONSUMERS - BEHAVIOUR
1. Cultural Diversity:
● Values and Beliefs: Different cultures have distinct values and beliefs that influence consumer behavior. For example, in some cultures, the
concept of family and community might heavily influence purchasing decisions, leading to preferences for products that align with these values.
● Norms and Customs: Cultural norms dictate acceptable behaviors and practices. For instance, certain cultures may have specific rituals or
traditions associated with purchasing goods, such as gift-giving during holidays or celebrations.
● Language and Communication: Language plays a crucial role in marketing and advertising. Effective communication requires understanding
cultural nuances in language usage, idioms, and symbolism to resonate with consumers from diverse cultural backgrounds.

1. Demographic Differences:
● Age: Different age groups exhibit varying preferences and consumption patterns. Younger consumers might be more inclined towards technology
and digital experiences, while older consumers may prioritize reliability and customer service.
● Gender: Gender roles can influence product preferences and purchasing decisions. Marketers often segment their target audience based on
gender to tailor messaging and product offerings.
● Income Level: Income directly impacts purchasing power and the types of products consumers can afford. Luxury brands, for example, target
affluent consumers who have higher disposable incomes.
● Education and Occupation: Education levels and occupations can influence consumers' knowledge about products, brand awareness, and
decision-making processes.
DIVERSITY OF CONSUMERS - BEHAVIOUR
3. Socio-Economic Factors:

● Purchasing Power: Socio-economic status (SES) determines consumers' ability to afford certain goods and services. It influences spending habits, with higher
SES individuals often willing to spend more on premium products.
● Social Class: Social class affects consumers' lifestyle choices, preferences, and brand perceptions. For example, middle-class consumers may seek value for
money, while upper-class consumers might prioritize exclusivity and status.
● Education and Awareness: Higher levels of education can lead to more informed consumer choices, as educated consumers may research products more
thoroughly and consider factors beyond price.

4. Psychological Influences:

● Perception: Consumers interpret and perceive products differently based on their personal experiences, needs, and expectations. Marketers use perception
management strategies to shape consumers' perceptions of their products.
● Motivation: Consumer behavior is often driven by intrinsic and extrinsic motivations such as achievement, status, convenience, or social approval.
Understanding these motivations helps marketers tailor their offerings.
● Attitudes: Consumer attitudes towards brands, products, and advertising messages influence their purchasing decisions. Positive attitudes can lead to brand
loyalty and repeat purchases.
● Personality Traits: Personality traits like openness to new experiences, conscientiousness, and risk-taking behavior can impact consumer preferences and
brand choices.
DIVERSITY OF CONSUMERS - BEHAVIOUR
Situational Variables:

● Immediate Environment: Factors such as the physical environment (store layout, atmosphere), social environment (peer influence, family opinions), and
temporal factors (time of day, day of the week) can influence purchasing decisions.
● Urgency and Need: Urgent needs or desires prompt consumers to make quick purchasing decisions, often influenced by availability, convenience, and
perceived value.
● Decision-Making Context: Whether the purchase decision is routine or involves high involvement affects the consumer's decision-making process and the
information they seek.

Technological Impact:

● Digital Transformation: The advent of e-commerce and digital platforms has revolutionized consumer behavior. Consumers now have access to vast amounts
of information, reviews, and price comparisons online, influencing their purchasing decisions.
● Social Media Influence: Platforms like Instagram, Facebook, and TikTok play a significant role in shaping consumer preferences and trends. Social media
influencers can sway consumer behavior through endorsements and product recommendations.
● Personalization and Targeting: Technology enables marketers to personalize messages and offers based on consumer data, enhancing relevance and
engagement.
DIVERSITY OF CONSUMERS - BEHAVIOUR
Environmental Factors:

● Sustainability Concerns: Increasingly, consumers are considering environmental impact when making purchasing decisions. Environmental consciousness
influences preferences for eco-friendly products, sustainable packaging, and brands with transparent supply chains.
● Ethical Considerations: Consumers may choose to support brands that align with their ethical values and principles. This includes factors such as fair trade
practices, labor conditions, and corporate social responsibility initiatives.

Lifestyle and Subculture Influences:

● Lifestyle Choices: Consumers' lifestyles, hobbies, and interests influence their consumption patterns. For example, fitness enthusiasts may prefer
health-conscious products, while travelers might prioritize portable and durable goods.
● Subcultural Identities: Subcultures based on interests, hobbies, or affiliations (e.g., music genres, gaming communities) can significantly impact consumer
behavior. Marketers often target niche markets within these subcultures with specialized products and messaging.
CONSUMER BUYING DECISION MAKING
PROCESS
Need Identification: This is the initial stage where a consumer recognizes a problem or a need. This could be
triggered by various factors such as running out of a product, a desire for something new, or an issue that needs
addressing. For example, someone might realize they need a new laptop because their current one is slow and
outdated.
Information Search: Once the need is identified, consumers typically seek information to gather options that could
potentially solve their problem or fulfill their need. This information can come from various sources such as online
reviews, recommendations from friends or family, advertisements, and comparison websites. For instance, someone
looking to buy a new smartphone might read reviews on tech websites and compare different models based on
features and prices.
Listing Alternative Brands: Consumers compile a list of brands or products that they are considering. This list is
based on the information gathered during the search phase. For example, if someone is looking to buy a new car,
they might list brands like Toyota, Honda, Ford, etc., based on their preferences and the information they've
gathered.
Evaluation of Alternatives: Consumers evaluate the alternatives they've listed based on criteria important to them,
such as price, quality, features, brand reputation, and availability. For example, when deciding on a vacation
destination, a consumer might evaluate different options based on factors like cost, attractions, weather, and travel
time.
CONSUMER BUYING DECISION MAKING
PROCESS
Attitude Formation: During this stage, consumers develop attitudes or preferences towards the brands or products
they are considering. This can be influenced by personal experiences, recommendations, brand image, or marketing
efforts. For instance, someone might prefer a particular brand of sports shoes because they've had good experiences
with durability and comfort in the past.
Trial Purchase: Some consumers may choose to make a trial purchase or test the product/service before making a
final decision. This could involve sampling a product, trying a service for a short period, or using a free trial. For
example, a consumer might download a free trial of a software application before deciding to purchase the full
version.
Purchase Decision: This is the stage where the consumer makes the final decision to purchase a specific product or
service from a particular brand or retailer. Factors influencing this decision include pricing, availability, discounts,
and overall value perceived by the consumer. For example, after evaluating different options, a consumer decides to
purchase a Samsung smartphone because of its features and competitive pricing.
Post-Purchase Behavior: After making a purchase, consumers evaluate their decision based on their experience
with the product or service. This evaluation can influence their satisfaction levels, repeat purchase intentions, and
brand loyalty. For instance, if a consumer buys a new kitchen appliance and finds it performs well and meets
expectations, they may recommend it to others or consider buying from the same brand again.
CONSUMER ATTITUDE
Meaning
Consumer attitude goes beyond just opinions; it includes beliefs, feelings, and
behaviors towards products or services. It influences whether consumers choose to
buy something, how satisfied they are with it, and whether they recommend it to
others. Attitudes can be shaped by personal experiences, advertising, word of mouth,
and cultural influences. They play a crucial role in consumer decision-making and
affect overall market trends and preferences.

Example: Let's say a consumer has a positive attitude towards environmentally

friendly products. They believe in sustainability and prefer to buy goods that are
made from recycled materials or have minimal environmental impact. This attitude
influences their purchasing decisions, leading them to choose brands that align with
their values of environmental responsibility.
FEATURES OF CONSUMER ATTITUDE
Affective Component: This is how consumers feel about a product or service. It involves
emotions and personal preferences. For example, someone might have a positive affective
attitude towards a particular brand of coffee because they enjoy its rich flavor and aroma.
Cognitive Component: This aspect involves beliefs and knowledge about a product or
service. It's about what consumers think and understand about it. For instance, someone
might have a cognitive attitude towards a smartphone brand because they believe it offers
superior features and reliability based on reviews and information they've gathered.
Behavioral Component: This relates to the actions consumers take based on their attitudes.
It includes intentions to purchase, actual purchases, and recommendations to others. For
example, a consumer with a positive behavioral attitude towards a restaurant might
frequently dine there, recommend it to friends, and leave positive reviews online based on
their enjoyable dining experiences.
FEATURES OF CONSUMER ATTITUDE
Attitude Consistency: This refers to the harmony between different components of consumer
attitude—affective, cognitive, and behavioral. When these components align, it strengthens the overall
attitude towards a product or service. For example, if a consumer feels positively (affective), believes it's
high quality (cognitive), and consistently buys it (behavioral), their attitude towards that product remains
consistent and strong over time.
Attitude Change: Consumer attitudes can evolve due to various factors such as new information, personal
experiences, or persuasive communication. Attitude change can occur gradually or suddenly, influencing
purchasing decisions. For instance, a consumer's attitude towards a particular brand of smartphones might
change positively after reading positive reviews about its new features and performance, prompting them
to consider purchasing it instead of their usual brand.
Attitude Formation: This refers to how consumer attitudes are initially developed. It can be influenced by
personal experiences, social interactions, advertising, and cultural factors. For example, a consumer's
positive attitude towards a specific type of skincare product might have formed after trying it and noticing
improvements in their skin, reinforced by positive reviews from friends and influencers they follow online.
FEATURES OF CONSUMER ATTITUDE
Attitude Accessibility: This concept refers to how easily and quickly a consumer's attitude
towards a product or service can be recalled and applied in decision-making. Attitudes that
are more accessible are likely to have a stronger influence on behavior. For example, if a
consumer has a highly accessible positive attitude towards a favorite brand of sneakers, they
may quickly decide to purchase them when they see a new model released in a store.
Attitude Strength: This refers to the degree of certainty or confidence consumers have in
their attitudes towards a product or service. Strong attitudes are more resistant to change and
have a greater impact on behavior. For instance, a consumer who has a strong attitude
towards a specific eco-friendly laundry detergent, believing strongly in its effectiveness and
environmental benefits, is more likely to consistently purchase it despite fluctuations in
price or availability of competing products.
FUNCTIONS OF CONSUMER ATTITUDE
Affect Behavior: Consumer attitudes guide how people behave towards products or services.
Positive attitudes often lead to purchasing decisions, brand loyalty, and positive word-of-mouth. For
example, a consumer's positive attitude towards a certain brand of sneakers may lead them to
regularly buy new releases and recommend the brand to friends.
Guide Decision Making: Attitudes help consumers make choices by influencing their preferences
and evaluations. They serve as a mental filter through which people assess options and make
decisions. For instance, a consumer's attitude towards health-conscious snacks may prompt them to
choose granola bars over chocolate bars when shopping for snacks at the grocery store.
Predict Consumer Behavior: Attitudes are useful predictors of how consumers will act in the future.
Marketers use attitudes to forecast trends, plan marketing strategies, and tailor messages that resonate
with target audiences. For example, if a survey indicates that many consumers have a negative
attitude towards a particular brand of smartphones due to reliability issues, marketers might
anticipate lower sales and focus efforts on improving product quality and customer service to change
those attitudes.
FUNCTIONS OF CONSUMER ATTITUDE
Provide Consistency: Consumer attitudes help maintain consistency in behavior over time and across
different situations. They provide a stable framework that guides how consumers interact with products
and brands, ensuring predictability in their purchasing patterns. For example, a consumer who values
sustainability may consistently choose eco-friendly products across various categories like clothing,
household items, and food.
Serve Psychological Functions: Attitudes fulfill psychological needs by influencing how consumers
perceive themselves and others. They can enhance self-image, social identity, and emotional satisfaction.
For instance, a consumer who values luxury may choose high-end products not only for their quality but
also because they symbolize status and prestige among peers.
Influence Information Processing: Attitudes affect how consumers process information about products or
services. They can bias perceptions, influence attention, and shape interpretation of marketing messages.
For example, a consumer with a positive attitude towards a particular brand of skincare products may
interpret ambiguous product reviews as confirming their belief in the brand's effectiveness, reinforcing
their decision to continue purchasing it.
FUNCTIONS OF CONSUMER ATTITUDE
Resist Change: Consumer attitudes can be resistant to change, especially if they are
strongly held or deeply ingrained. This resistance can make it challenging for marketers
to alter perceptions or persuade consumers to switch brands. For example, a consumer
who has been loyal to a certain brand of coffee for years may be reluctant to try a new
brand, despite marketing efforts promoting its superior taste and quality.
Impact Satisfaction and Loyalty: Consumer attitudes significantly influence
satisfaction levels and brand loyalty. Positive attitudes towards a product or service
contribute to higher levels of satisfaction when expectations are met or exceeded. This
satisfaction, in turn, fosters repeat purchases and loyalty towards the brand. For
example, a consumer who consistently enjoys using a particular brand of smartphone
due to its user-friendly interface and reliable performance is likely to remain loyal to
that brand when considering future purchases.
FACTORS INFLUENCING CHANGE IN CONSUMER ATTITUDE
FACTORS INFLUENCING CHANGE IN CONSUMER ATTITUDE
1. Promotional campaigns of marketers: Effective promotional campaigns can influence consumer attitudes by
highlighting product benefits, creating a positive image, and increasing brand awareness. For example, a
cosmetics company might use social media influencers to showcase new products, which can change consumer
attitudes by making the products seem trendy and desirable.
2. Product innovations: Introducing new and improved products can change consumer attitudes positively by
offering better solutions or addressing unmet needs. For instance, the launch of electric vehicles has shifted
consumer attitudes towards environmental sustainability and technological advancement.
3. Poor after-sales service: Negative experiences with after-sales service can lead to a decline in consumer
attitudes, affecting trust and satisfaction. For example, a smartphone manufacturer that fails to provide timely
customer support may see a decrease in consumer loyalty and positive word-of-mouth.
FACTORS INFLUENCING CHANGE IN CONSUMER ATTITUDE
4. Personality traits of consumers: Individual traits such as risk aversion, openness to new experiences, and brand loyalty
can influence consumer attitudes towards products. For instance, adventurous consumers might be more willing to try
innovative products, while risk-averse consumers may prefer established brands with a reliable track record.

5. Changes in economic status: Fluctuations in income, job stability, and economic conditions can impact consumer attitudes
towards spending and saving. For example, during economic downturns, consumers may become more price-conscious and
prioritize essential purchases over luxury items.

6. Changes in demographic factors: Shifts in age, gender, income levels, and family size can influence consumer attitudes
towards products and brands. For instance, as the population ages, attitudes towards health and wellness products may
become more favorable, leading to increased demand for such items.
FACTORS INFLUENCING CHANGE IN CONSUMER ATTITUDE
7. Changes in cultural factors: Evolving cultural values, beliefs, and social trends can affect consumer
attitudes towards certain products. For example, growing awareness and acceptance of sustainable practices
can lead consumers to prefer eco-friendly products over conventional alternatives.

8. Offerings by competitors: Competitors' actions such as introducing similar products at lower prices or
with better features can influence consumer attitudes towards existing brands. For example, a new smartphone
model with advanced features may prompt consumers to reconsider their attitudes towards their current device
and switch brands.

Understanding these factors helps businesses adapt their strategies to effectively manage and influence
consumer attitudes, ultimately impacting their market position and success.
FACTORS INFLUENCING CHANGE IN CONSUMER ATTITUDE

CASE STUDY

https://www.youtube.com/watch?v=Y75oFrTZ7bI
CASE STUDY ON LUX
 CASE STUDY ON LUX
Lux is a global beauty soap brand owned by Unilever, known for its luxurious and fragrant soaps. Originally launched in 1925 by
Lever Brothers, Lux has evolved over the decades to cater to changing consumer preferences and market dynamics.
Key Elements:

● Celebrity Endorsements: Lux has a history of associating with glamorous celebrities worldwide to enhance its brand image. Over the years,
it has featured actresses like Marilyn Monroe, Elizabeth Taylor, and more recently, Bollywood stars such as Aishwarya Rai Bachchan and
Katrina Kaif.
● Product Innovation: Lux continuously innovates its product offerings to meet diverse consumer needs. It has expanded its product line to
include variants like softening, moisturizing, and even beauty bar formulations.
● Global Presence: Lux operates in numerous countries worldwide, adapting its marketing strategies to resonate with local cultures while
maintaining a consistent brand identity.

Factors Influencing Consumer Attitudes:

1. Brand Image and Aspiration:

○ Lux's association with celebrities and its luxurious image positions it as a symbol of beauty and elegance, influencing consumer
perceptions.
2. Emotional Appeal:
○ Lux's advertising often focuses on emotional storytelling, connecting with consumers on themes of beauty, confidence, and
empowerment.
3. Innovative Marketing Campaigns:
○ Lux leverages its celebrity endorsements and innovative advertising campaigns to maintain brand relevance and capture consumer
attention.
 CASE STUDY ON LUX
Group Analysis Questions:

● How has Lux effectively utilized celebrity endorsements to shape consumer attitudes towards the brand?
● What role does product innovation play in maintaining Lux's market leadership in the beauty soap industry?
● How does Lux adapt its marketing strategies to appeal to diverse global markets while maintaining a consistent brand
identity?

Discussion Points:

● Evaluate the effectiveness of Lux's celebrity endorsement strategy in enhancing brand equity and consumer loyalty.
● Discuss the challenges and opportunities in promoting beauty soap products amidst changing consumer preferences and
competitive pressures.
● Analyze Lux's approach to cultural sensitivity and localization in global marketing campaigns, considering differences in beauty
standards and consumer behaviors across regions.
 Topics for Class Presentation
1. Consumer Learning Theory : (Behavioural Theories, Cognitive learning theory, Consumer
Involvement Theory)
2. Consumer Decision making models: HOWARD SHETH MODEL
3. Consumer Decision making models: ENGEL, BLACKWELL, MINIARD MODEL
4. Consumer Decision making models: NICOSIA MODEL
5. Theory of Diffusion of Innovation
6. E-Buying behaviour: Features, Advantages and Disadvantages.
7. E-Buying behaviour: Factors influencing E-Buying Behaviour
8. Impact of Social Media on Consumer Behavior
9. E-commerce Trends and Consumer Behavior
 Topics for Class Presentation
1. Impact of Celebrity Endorsements on Consumer Behavior: Case of Bollywood and Indian
Brands.
2. Consumer Behavior towards Luxury Brands in India: Case Study of Taj Hotels
3. Impact of Online Shopping Apps on Consumer Behavior in Urban vs. Rural India
4. Impact of Word-of-Mouth Marketing on Consumer Choices in India.
5. Consumer Behavior Trends in the Indian Smartphone Market:
6. Brand Trust and Consumer Loyalty: Case Study of LIC (Life Insurance Corporation of India.
7. The Effect of Family and Peer Influence on Consumer Behavior.
8. Consumer Behavior Towards Eco-Friendly Products.
9. Online Reviews and Their Impact on Consumer Purchasing Decisions.
10. Brand Loyalty vs. Promotional Offers: What Drives Consumer Choices?
 CONSUMER NEEDS
Consumer needs refer to the desires, requirements, and expectations of customers that
drive them to purchase products or services. Understanding consumer needs is
fundamental to successful marketing and business strategy, as it allows companies to
tailor their offerings to match what customers are looking for. These needs can be
categorized into various types, such as functional needs (related to the product's
performance), emotional needs (related to how the product makes the consumer feel),
social needs (related to how the product affects their social standing or relationships),
and experiential needs (related to the overall experience of using the product or service).
By identifying and fulfilling these needs effectively, businesses can build strong customer
relationships and drive growth.
 CONSUMER NEEDS
Consumer needs can be defined as the specific desires and requirements
that individuals have when seeking solutions to their problems or when
aiming to fulfill their aspirations. These needs can encompass a wide range
of aspects, including functional, emotional, social, and experiential
dimensions. Understanding consumer needs is crucial for businesses to
develop products and services that effectively meet customer expectations
and provide value, ultimately leading to customer satisfaction and loyalty.
 FEATURES CONSUMER NEEDS
Subjectivity: Consumer needs are subjective because they depend on individual preferences and
circumstances. For example, one person might prioritize buying organic food due to health concerns, while
another might prioritize affordability and opt for conventional produce.

Hierarchy: Needs can be organized into a hierarchy, where some needs are more basic and must be
fulfilled before higher-level needs become important. An example is Maslow's hierarchy of needs, which
starts with physiological needs like food and shelter, progressing to safety, belongingness, esteem, and
self-actualization.

Dynamic Nature: Consumer needs change over time due to various factors such as technological
advancements, shifts in lifestyle trends, and personal experiences. For instance, the increasing demand for
eco-friendly products reflects a growing consumer need for sustainability, which has evolved in recent
years.
 FEATURES CONSUMER NEEDS
Diversity: Consumers have diverse needs based on factors like age, income, lifestyle, and cultural background. For example, a
luxury car manufacturer would cater to the needs of affluent consumers who value status and performance, while a
budget-friendly brand might target price-sensitive consumers who prioritize affordability.

Complexity: Consumer needs are often complex because they involve multiple dimensions like functionality, emotions, social
influence, and overall experience. An example is the smartphone market, where consumers seek devices that not only offer
advanced features and performance but also provide a seamless user experience and reflect their personal style.

Problem-solving Orientation: Consumer needs typically arise from a desire to solve a problem or address a specific challenge.
For instance, the need for household cleaning products stems from the necessity to maintain cleanliness and hygiene in the
home environment.

Cultural Influence: Cultural norms, values, and beliefs significantly impact consumer needs and preferences. For example,
dietary preferences vary widely across cultures, influencing the demand for specific types of food products and ingredients.
Case Study: Amul
 Case Study: Amul
Background: Amul is an Indian dairy cooperative society based in Anand, Gujarat. Founded in 1946, it has grown to
become one of the largest dairy brands in India, known for its wide range of dairy products including milk, butter,
cheese, yogurt, and ice cream.

Understanding Consumer Needs:

1. Subjectivity: Amul understands that consumers have varied preferences when it comes to dairy products. Some
consumers prioritize taste and quality, while others look for affordability and nutritional value. For example, Amul
offers a range of milk variants from full cream to low-fat and flavored milk to cater to different tastes and health
requirements.
2. Hierarchy: Amul addresses various levels of consumer needs according to Maslow's hierarchy. It fulfills
physiological needs by providing essential dairy products like milk, which is a staple in many Indian households. It
also addresses higher-level needs such as taste preferences and nutritional requirements with products like cheese
and yogurt.
3. Dynamic Nature: Amul has adapted to changing consumer trends and preferences over the decades. For instance,
as health consciousness grew among consumers, Amul introduced products like low-fat milk and probiotic yogurt to
cater to these evolving needs.
 Case Study: Amul
4. Diversity:Amul serves a diverse consumer base across different demographics, regions, and income levels in India. It offers products
that appeal to urban and rural consumers alike, ranging from affordable milk pouches sold through local cooperatives to premium ice
cream flavors available in urban supermarkets.

5. Complexity: Amul understands the complexity of consumer needs related to dairy products. Beyond basic nutrition, consumers seek
products that offer taste, freshness, and consistency. Amul's stringent quality control measures and strong distribution network ensure
that its products meet these expectations consistently.

6. Problem-solving Orientation: Amul addresses the problem of ensuring a steady supply of fresh and hygienic dairy products across
India, which has diverse climatic and logistical challenges. Its cooperative model involving millions of farmers ensures a steady and
reliable source of milk production, solving the supply chain challenge effectively.

7. Cultural Influence: Amul respects and reflects cultural preferences in its product offerings. For example, it offers region-specific
dairy products and flavors that cater to local tastes and preferences across different states in India.

Outcome: Amul's deep understanding of consumer needs and its ability to innovate and adapt have contributed to its strong brand
loyalty and market leadership in the Indian dairy industry. By consistently delivering quality products that meet diverse consumer
preferences, Amul has successfully built a brand that resonates with consumers across the country.
 INTRODUCTION TO FAMILY
Understanding the role of family in consumer behavior is essential within the study of consumer psychology,
as families serve as primary influencers of individuals' purchasing decisions and consumption patterns.
Family dynamics, roles, and decision-making processes collectively shape preferences and attitudes towards
products and services. From early childhood observations to adulthood, families impart values, cultural
norms, and lifestyle preferences that guide consumer choices. Family decision-making often involves
negotiation and compromise, influencing the selection of goods ranging from everyday items to significant
investments. Inter-generational influences further shape consumer behavior, as attitudes towards brands and
spending habits are transmitted across family generations. Moreover, the lifecycle stages of families—from
formation to retirement—impact consumer needs and priorities, reflecting evolving consumption patterns.
Effective family communication channels facilitate shared experiences and recommendations that influence
brand preferences and purchasing decisions, highlighting the pivotal role of family in shaping consumer
behavior within broader societal contexts.
 FEATURES OF
FAMILY
Structure:
● Nuclear Families: Comprising parents and their children, nuclear families are common in many societies and
serve as the basic unit of household organization.
● Extended Families: Extended families include additional relatives such as grandparents, aunts, uncles, and
cousins, providing a broader network of support and connection.
● Blended Families: Formed through remarriage or re-partnering, blended families integrate children from
previous relationships, navigating unique dynamics and relationships.

Roles:

● Caregiving: Family roles often include caregiving responsibilities, such as nurturing children, supporting
elderly relatives, and providing emotional and physical care during times of illness or disability.
● Breadwinning: Traditionally, roles around earning income and financial provision have been divided within
families, although these roles are evolving with societal changes.
● Decision-making: Families engage in decision-making processes that affect household dynamics, such as major
purchases, educational choices, and healthcare decisions, often involving consultation and consensus-building.
 FEATURES OF
FAMILY
Communication:
● Open Communication: Effective communication within families fosters understanding, empathy, and conflict
resolution, strengthening relationships and promoting emotional well-being.
● Conflict Resolution: Families navigate conflicts through communication strategies that promote understanding,
compromise, and resolution, fostering healthier relationships and mutual respect.
● Supportive Communication: Family members offer emotional support, validation, and encouragement through
attentive listening, affirmations, and constructive feedback, enhancing individual growth and relational bonds.

Boundaries:

● Physical Boundaries: Families establish physical boundaries within living spaces and personal territories, respecting
individual privacy while promoting shared communal areas and activities.
● Emotional Boundaries: Healthy families maintain emotional boundaries that honor individual feelings, beliefs, and
experiences, promoting mutual respect and understanding.
● Behavioral Boundaries: Families set behavioral expectations and guidelines that promote harmonious interactions,
respect for household rules, and consideration for others' needs and preferences.
 FEATURES OF
FAMILY
Values and Traditions:
● Cultural Values: Families uphold cultural traditions, values, and rituals that celebrate heritage, identity, and shared experiences,
fostering a sense of cultural continuity and pride.
● Ethical Values: Families transmit ethical values such as honesty, integrity, compassion, and responsibility, guiding moral
decision-making and character development among members.
● Generational Continuity: Through passing down traditions and values, families preserve cultural heritage and promote
intergenerational bonds, ensuring continuity across time and generations.

Dynamic Nature:

● Life Transitions: Families experience changes over time due to life events such as births, deaths, marriages, divorces, relocations, and
career changes, adapting roles and relationships accordingly.
● Adaptability: Families demonstrate resilience and adaptability in response to challenges, adjusting communication styles, roles, and
routines to accommodate evolving circumstances.
● Developmental Stages: Families progress through developmental stages (e.g., formation, expansion, launching children, retirement)
that shape their dynamics, priorities, and interdependence across the lifespan.

Understanding the concept and features of families underscores their significance as foundational units of society, influencing individual
well-being, societal cohesion, and cultural continuity. By appreciating the multifaceted roles, dynamics, and contributions of families, we
recognize their vital role in shaping personal identity, values, and relationships within broader communities.
 TYPES OF FAMILY
Nuclear Family:
● Explanation: A nuclear family is a basic family unit consisting of two parents (a mother and a father) and
their biological or adopted children, living together in one household. This structure is common in many
Western societies and represents a relatively small and self-contained unit.
● Example: The Smith family, consisting of John (father), Mary (mother), and their two children, Sarah and
Tom, live in a suburban house. They share financial responsibilities, childcare duties, and household
chores among themselves.

Single-Parent Family:

● Explanation: A single-parent family is headed by one parent who may be divorced, widowed, separated,
or never married. This parent assumes the primary caregiving role and responsibilities for raising the
child(ren) alone.
● Example: Lisa, a single mother, is raising her son Michael on her own since her husband passed away last
year. She manages all aspects of Michael's upbringing, including education, emotional support, and
financial stability.
 TYPES OF FAMILY
Extended Family:
● Explanation: An extended family includes relatives beyond the nuclear family unit, such as grandparents,
aunts, uncles, and cousins, who may live together or in close proximity. They often provide mutual
support, childcare, and financial assistance.
● Example: The Garcia family lives in a large household with their grandparents, cousins, and an aunt.
They share resources, responsibilities, and emotional bonds, creating a strong sense of kinship and
support within the extended family network.

Joint Family:

● Explanation: A joint family consists of multiple generations of relatives (often from the paternal side)
living together in one household. They share common ancestry, property, finances, and responsibilities.
● Example: In traditional Indian culture, a joint family might include grandparents, parents, uncles, aunts,
and their children all living together under one roof. This arrangement fosters close familial ties and
collective decision-making.
 TYPES OF FAMILY
Childless Family:
● Explanation: A childless family consists of a couple who have chosen not to have children or are unable to
conceive. They focus on their careers, personal pursuits, and relationships without the responsibilities of raising
children.
● Example: Emma and David have been happily married for 15 years but decided not to have children. They
enjoy traveling, pursuing hobbies, and advancing in their respective careers, maintaining a fulfilling life together
as a childless couple.

Stepfamily (or Blended Family):

● Explanation: A stepfamily forms when one or both partners have children from previous relationships or
marriages. They come together to form a new family unit, integrating stepchildren into their lives and household.
● Example: After Sarah and Mark got married, they formed a stepfamily with Mark's children from his first
marriage, Emily and James. Sarah gradually assumed a parental role, and they worked together to blend their
families and create a harmonious household.
 TYPES OF FAMILY
Blended Family:

○ Explanation: A blended family is similar to a stepfamily but includes children from both partners' previous relationships, as
well as any children they may have together. It involves integrating different family dynamics and relationships.
○ Example: The Thompsons are a blended family where Sarah has two children, Jack and Lily, from her previous marriage, and
John has one child, Ethan. Together, they also have a daughter named Olivia. They navigate the complexities of combining
different family histories and relationships while fostering a cohesive family unit.

Grandparent Family:

○ Explanation: In a grandparent family (or skip-generation family), grandparents take on the primary caregiving role for their
grandchildren. This can occur due to the absence, incapacity, or unwillingness of the children's parents to fulfill their parental
duties.
○ Example: Maria and Javier are raising their grandchildren, Sofia and Lucas, because their daughter is unable to care for them
due to health issues. They provide love, stability, and guidance to their grandchildren, ensuring their well-being and
development despite the challenging circumstances.

These examples illustrate the diversity of family structures and dynamics that exist globally. Each type of family has its unique strengths,
challenges, and implications for individual development and societal norms. Understanding these variations helps appreciate the
complexities of family life and the importance of supportive relationships within and beyond traditional nuclear units.
FAMILY INFLUENCES ON CONSUMER BEHAVIOUR
Consumer Socialization:
● Explanation: Family members, particularly parents, serve as primary agents of consumer socialization by
teaching children about consumption norms, preferences, and behaviors. This early socialization
influences lifelong consumer habits and choices.
● Example: A child growing up in a family where sustainability is emphasized may develop a preference
for eco-friendly products and actively seek out brands that align with those values as an adult.
Family Roles and Decision Making:
● Explanation: Family roles and dynamics determine who makes purchasing decisions and how those
decisions are made within the household. Roles such as influencer, decision-maker, buyer, and user can
vary depending on factors like age, gender, and cultural norms.
● Example: In a traditional family, the father might be the primary decision-maker for large purchases like
a car or home, while the mother decides on daily household items such as groceries and children's
clothing.
FAMILY INFLUENCES ON CONSUMER BEHAVIOUR
Family Communication Patterns:
● Explanation: Communication within the family about products, brands, and shopping experiences
influences consumer attitudes and behaviors. Discussions about quality, price, and value shape
perceptions and preferences.
● Example: A family that frequently discusses the benefits of a particular brand of organic food may
collectively develop a preference for that brand over others available in the market.
Family Financial Resources:
● Explanation: The financial resources available to a family impact their purchasing power, budgeting
decisions, and preferences for certain products or brands. Socioeconomic status (SES) influences the
types and quality of products purchased.
● Example: A family with a higher income may prioritize premium brands and luxury goods, while a
family on a limited budget might focus on value-oriented products and seek out discounts or
promotions.
FAMILY INFLUENCES ON CONSUMER BEHAVIOUR
Family Values and Culture:
● Explanation: Family values, beliefs, and cultural background shape consumer behaviors by
influencing preferences for certain products, brands, or consumption rituals. Cultural heritage and
traditions guide purchasing decisions.
● Example: A family with strong cultural ties to a particular region might prefer foods, clothing, or
household items imported from that region, reflecting their cultural identity and values.
Inter-Generational Influences:
● Explanation: Consumer behaviors are often influenced across generations within a family. Older
family members may pass down preferences, brand loyalty, and purchasing habits to younger
generations.
● Example: A grandmother who has always used a specific skincare brand may influence her
granddaughter to adopt the same brand due to trust, familiarity, and shared family values related to
beauty and skincare.
FAMILY INFLUENCES ON CONSUMER BEHAVIOUR
Emotional and Supportive Influences:
● Explanation: Emotional bonds and supportive relationships within the family can influence
consumer behavior by shaping product choices that evoke positive emotions, comfort, or
satisfaction.
● Example: Parents buying a special toy or treat for their child as a reward for good behavior or
academic achievement demonstrates how emotional factors influence consumer decisions
within a family context.
Family Lifestyle and Consumption Patterns:
● Explanation: Family lifestyle choices, such as recreational activities, dietary preferences, and
leisure pursuits, dictate consumption patterns and the types of products or services purchased.
● Example: A family that prioritizes outdoor activities like camping and hiking is likely to invest
in outdoor gear, equipment, and eco-friendly products that align with their active lifestyle
choices.
FAMILY INFLUENCES ON CONSUMER BEHAVIOUR
Rituals and Traditions:
• Explanation: Family rituals and traditions, such as holiday celebrations, religious practices, and
special occasions, often involve specific consumption patterns and preferences for certain products
or services.
• Example: During Christmas, a family might have a tradition of baking homemade cookies using
specific ingredients and brands passed down through generations, influencing their purchasing
decisions during the holiday season.
Brand Loyalty and Trust:
● Explanation: Family members can influence each other's brand loyalty and trust through
recommendations, experiences, and shared perceptions of product quality and reliability.
● Example: A mother who trusts a particular brand of baby products may recommend it to her sister
for her newborn, based on positive experiences and perceived safety and efficacy.
FAMILY INFLUENCES ON CONSUMER BEHAVIOUR
Educational and Career Aspirations:

● Explanation: Family expectations regarding education, career paths, and professional success can influence consumer
behavior by shaping preferences for products and services perceived to support these aspirations.
● Example: A family that values education highly may prioritize spending on educational toys, books, tutoring services, and
technology to support their children's learning and development.

Geographical and Residential Influences:

● Explanation: The location and type of residence (urban, suburban, rural) influence consumer behavior within families,
affecting preferences for products, services, and shopping behaviors.
● Example: Families living in urban areas with access to diverse shopping options may favor convenience-oriented products
and services like meal delivery services, while rural families might prioritize durability and utility in their purchases due to
limited access to stores.

Technological Influence:

● Explanation: Technological adoption and usage patterns within families influence consumer behavior, particularly in terms
of purchasing decisions related to gadgets, electronics, and digital services.
● Example: A family that embraces technology may prioritize smart home devices, streaming services, and the latest
smartphones based on family members' digital needs and preferences.
ROLES OF DIFFERENT FAMILY MEMBERS IN BUYING DECISION
1) Primary Decision Maker: Often, there is one person who takes the lead in making final decisions. This could
be based on financial responsibility, knowledge of the product, or simply being more involved in the purchase
process.
Example: John is the primary breadwinner in his family. He takes the lead in deciding major purchases such as
a new car or a family vacation. His role stems from his financial responsibility and the need to ensure
purchases fit within their budget.
1) Financial Decision Maker: This role focuses on managing the budget and ensuring that purchases align with
the family's financial goals. This person may have the final say on large expenditures.
Example: Sarah manages the household finances and oversees the family budget. When it comes to buying
household appliances or furniture, she makes the final decision based on what aligns with their financial goals
and savings plan.
1) Researcher: Some family members excel in researching products or services. They gather information,
compare options, read reviews, and present their findings to the rest of the family.
Example: Emily loves researching products online. Before buying a new smartphone, she reads reviews,
compares specifications, and consults tech forums. She presents her findings to the family, helping them make
an informed choice.
ROLES OF DIFFERENT FAMILY MEMBERS IN BUYING DECISION
4) Influencers: Family members who have a significant influence on others' decisions. Their opinions, preferences, or
needs can sway the final choice even if they are not the primary decision-maker.
● Example: Grandma Maria has a lot of influence in the family. When she expresses a preference for organic foods, the
family tends to buy more organic groceries. Her health-conscious choices impact the family's purchasing decisions.

5) End-User: The person or people who will directly use the purchased item. Their preferences and requirements are
crucial in ensuring the product meets their needs.
● Example: The children, Tim and Lily, are the end-users of the family's gaming console. Their preferences for specific
games and features heavily influence which console the family decides to purchase.

6) Technical Expert: In households where technical products are involved (like electronics or appliances), someone with
technical knowledge may play a vital role in evaluating specifications and features.
● Example: Uncle Bob works in IT and is the go-to person for anything related to computers or gadgets. When the
family needs to buy a new laptop, Bob provides advice on specifications, brands, and the latest technology trends.
ROLES OF DIFFERENT FAMILY MEMBERS IN BUYING DECISION

7) Negotiator: This role involves haggling for better prices or terms, especially in larger purchases or
negotiations with service providers.
Example: Lisa is skilled at negotiating. When the family is buying a car, she handles negotiations with the
salesperson, ensuring they get the best deal on price, financing, and additional features.
8) Supportive Roles: Other family members might play supportive roles, offering opinions, advice, or
emotional support during the decision-making process.
Example: Tom and Mary are supportive family members who offer opinions and emotional support during
buying decisions. When choosing a new pet for the family, they contribute by discussing the pros and cons of
different breeds and pet care needs.
These roles can overlap, and they may change depending on the type of purchase or the dynamics within the
family. Effective communication and collaboration among family members help in making informed and
satisfactory buying decisions.
 Case Study: The Sharma Family's Television Purchase

Scenario: The Sharma family consists of Rajesh (father), Priya (mother), and
their two children, Aryan (age 12) and Diya (age 8). They currently have an
older television that is starting to show signs of wear and they've decided it's
time to upgrade to a newer model.
Current Situation:
● Budget: They have set a budget of ₹50,000 for the new television.
● Preferences: Rajesh is interested in a larger screen size for a better viewing
experience during sports matches. Priya prefers a TV with smart features for
streaming movies and series easily. Aryan and Diya want a TV that supports
gaming consoles and has vibrant colors for their cartoons and games.
 Case Study: The Sharma Family's Television Purchase

Questions to Solve:

1. Who might take the lead as the primary decision-maker in this purchase? Why?
2. What factors should Priya consider as the financial decision-maker when choosing a television
within their ₹50,000 budget?
3. Which family member could take on the role of researcher in this scenario? What information
would they need to gather?
4. Considering the preferences of each family member (Rajesh, Priya, Aryan, and Diya), what are the
key features they should prioritize in the new television?
5. How might the end-users (Aryan and Diya) influence the final decision on which TV to purchase?
6. If technical expertise is needed, who in the family might provide guidance on choosing the right
television based on technical specifications?
7. Who could potentially negotiate for the best deal if the family decides to purchase the TV from a
retail store or online? What strategies could they use?
8. How can the Sharma family ensure they make a decision that satisfies everyone's needs and
preferences? What steps should they take to communicate effectively during the decision-making
process?
 Factors influencing needs of a family
1. Socioeconomic Factors:
● Explanation: Socioeconomic factors include income level, employment status, and social class.
These aspects determine the financial resources available to a family and influence their
purchasing power and lifestyle choices.
● Example: A higher-income family might afford private education for their children, while a
lower-income family might prioritize basic necessities like food and shelter.
1. Size of the Family:
● Explanation: The number of family members affects the types and quantities of goods and
services needed. Larger families typically require more space, food, clothing, and possibly
transportation.
● Example: A family of four will likely need a larger home compared to a couple without
children. They may also need to budget differently for groceries and utilities.
 Factors influencing needs of a family
3. Occupation of Family Members:
● Explanation: The occupations of family members determine their income, work schedules,
and professional needs. This impacts the family's overall lifestyle and financial stability.
● Example: A family where both parents work full-time office jobs may have different needs
compared to a family where one parent works from home and the other works irregular
hours in a service industry.
4. Education Standards:
● Explanation: The educational attainment of family members influences their career
opportunities, income potential, and expectations regarding educational opportunities for
children.
● Example: A family with parents who value higher education might prioritize living in an
area with good schools and access to extracurricular activities for their children.
 Factors influencing needs of a family
5. Stage in Family Life Cycle:
● Explanation: Families go through different life stages such as starting a new family,
raising children, and empty nesters. Each stage comes with unique needs and priorities.
● Example: A newly married couple might prioritize saving for a house and starting a
family, whereas empty nesters may focus on retirement planning and downsizing their
home.
6. Geographic Location:
● Explanation: Where a family lives impacts access to resources, climate, cost of living,
and cultural influences, all of which shape their lifestyle and needs.
● Example: A family living in a rural area might have different transportation needs
compared to a family in an urban area with access to public transit and amenities.
 Factors influencing needs of a family
7. Family Culture:
● Explanation: Family culture encompasses traditions, values, beliefs, and customs that
influence decision-making, lifestyle choices, and preferences within the family unit.
● Example: A family with a strong cultural emphasis on saving and frugality might prioritize
financial security and investments over luxury items or travel.
8. Lifestyle of Family Members:
● Explanation: The activities, hobbies, and interests of family members shape their
consumption patterns and preferences for goods and services.
● Example: A family that enjoys outdoor activities like hiking and camping may invest in
outdoor gear and equipment, while a family interested in music may spend more on musical
instruments and lessons.
 Factors influencing needs of a family
9. Reference Groups & Social Interaction:

○ Explanation: Families are influenced by their interactions with peers, friends, and community members,
known as reference groups, which can shape their aspirations and consumption patterns.
○ Example: A family whose friends prioritize environmental sustainability may adopt similar practices in
recycling and energy conservation.

10. Group Dynamics:

○ Explanation: How family members interact, communicate, and make decisions collectively affects their
needs, preferences, and the way resources are allocated within the household.
○ Example: In a democratic family dynamic, decisions about vacations or major purchases might involve
input from all family members, whereas in a more hierarchical structure, decisions may be more
centralized.

These factors are interconnected and dynamic, influencing how families prioritize and allocate resources to meet
their needs and aspirations at different stages of life and in various socio-cultural contexts.
 Family Life Cycle and Consumer Behaviour
Childhood:
● Explanation: During childhood, consumer behavior is largely influenced by parents or guardians who make purchasing
decisions on behalf of the child. Preferences for toys, clothes, and entertainment are shaped by family values and income.
● Example: A child's preference for a specific brand of toys may be influenced by advertisements seen on TV or
recommendations from friends, but ultimately, parents make the purchasing decision based on affordability and suitability.

Adolescence:

● Explanation: Adolescents begin to exert influence over family spending through their preferences for clothing, gadgets, and
leisure activities. Peer influence and social norms play a significant role in their consumer choices.
● Example: A teenager might request branded clothing or electronics popular among their peers, influencing family decisions
on where to shop and what to buy.

Early Single Adulthood:

● Explanation: Young adults living independently for the first time prioritize establishing themselves professionally and
socially. Consumer choices reflect personal tastes, lifestyle aspirations, and financial constraints.
● Example: A young professional might invest in career-related items like a professional wardrobe or technology for work,
while also spending on social activities and personal interests.
 Family Life Cycle and Consumer Behaviour
Mature Single Adulthood:

● Explanation: Single adults in their later stages of career development focus on personal fulfillment and financial stability.
Consumer behavior may include investments in hobbies, travel, health, and saving for future goals.
● Example: A single adult might spend on fitness memberships, cultural experiences like museum visits, and financial
products such as retirement savings plans.

Newly Married Couple (No Children):

● Explanation: Newly married couples prioritize setting up a household and building a foundation for their future together.
Consumer choices revolve around home furnishings, joint financial planning, and lifestyle adjustments as a couple.
● Example: A newly married couple might spend on furniture, kitchen appliances, and shared experiences such as travel or
dining out, while also saving for a down payment on a home.

Full Nest I, II, III, IV:

● Explanation: These stages involve raising children through different age groups. Consumer behavior focuses on meeting
the evolving needs of children, such as education, extracurricular activities, and family-oriented purchases.
● Example: A family in Full Nest II (children in school) might spend on school supplies, sports equipment, and family
vacations that cater to children's interests and educational development.
 Family Life Cycle and Consumer Behaviour
Empty Nest I:
● Explanation: Empty Nest I occurs when children have left home for the first time. Consumer
behavior shifts towards personal fulfillment, travel, and possibly downsizing or renovating the
home.
● Example: Parents in Empty Nest I might invest in hobbies like golf or gardening, travel to
destinations they couldn't visit while raising children, and redecorate or remodel their home to better
suit their current lifestyle.
Empty Nest II:
● Explanation: Empty Nest II occurs after retirement when children are fully independent. Consumer
behavior focuses on leisure activities, health care, and possibly relocating to a more
retirement-friendly location.
● Example: A couple in Empty Nest II might spend on healthcare expenses, leisure travel, downsizing
to a smaller home or retirement community, and investments in grandchildren's future.
 Family Life Cycle and Consumer Behaviour
Older Solitary Survivor:
○ Explanation: This stage involves adjusting to life alone after the death of a spouse.
Consumer behavior centers on maintaining independence, health care needs, and estate
planning.
○ Example: An older solitary survivor might spend on home modifications for accessibility,
healthcare services, legal and financial planning, and social activities to maintain
connections with friends and family.
Each stage of the family life cycle presents unique challenges and opportunities that influence
consumer behavior, reflecting changing priorities, roles, and relationships within the family unit.
These stages help marketers and businesses understand how to tailor their products and services to
meet the diverse needs of families at different life stages.
 Cultural Influences on CB
Values and Beliefs:
● Explanation: Core values and beliefs shape consumer preferences and buying behavior.
For example, in cultures that prioritize family values, products that promote family
togetherness (like home appliances or family cars) may be more popular.
● Example: In many Asian cultures, values around respect for elders influence the purchase
of health supplements and traditional medicines.
Social Norms and Traditions:
● Explanation: Social norms and traditions dictate what is considered appropriate or
desirable. These can influence everything from product design to marketing strategies.
● Example: In the U.S., Thanksgiving is a time when consumers buy large quantities of
turkey and cranberry products, reflecting the tradition of celebrating with a specific meal.
 Cultural Influences on CB
Language and Communication:
○ Explanation: Language affects how marketing messages are crafted and received.
Effective marketing often requires localization to match the language and nuances of
the target audience.
○ Example: McDonald’s adapts its menu items and advertisements to reflect local
languages and preferences, such as offering McVeggie burgers in India.
Economic Factors:
○ Explanation: Economic conditions and purchasing power vary widely across cultures,
affecting what products and services are in demand.
○ Example: Luxury goods are more accessible to consumers in affluent cultures or
regions, while in less wealthy areas, budget-friendly or essential goods are more in
demand.
 Subcultural Influences on CB
Ethnic and Religious Subcultures:

● Explanation: Different ethnic and religious groups have distinct preferences and requirements based on their
traditions and customs.
● Example: Halal-certified products are crucial for Muslim consumers, while kosher products are important for
Jewish consumers.

Social Class:

● Explanation: Social class can influence buying habits, with different classes having varying tastes, priorities,
and spending power.
● Example: High-income consumers might prefer luxury brands like Gucci or Rolex, while middle or
lower-income consumers might opt for more affordable brands.

Lifestyle and Interests:

● Explanation: Subcultures can be defined by shared interests or lifestyles, affecting product preferences and
purchasing behavior.
● Example: Fitness enthusiasts are more likely to purchase health foods, gym equipment, and sports apparel,
while tech enthusiasts may prioritize the latest gadgets and electronic devices.
 Subcultural Influences on CB
Age and Generation:
○ Explanation: Different age groups or generations often have distinct preferences and values
that influence their buying behavior.
○ Example: Millennials and Gen Z may be more inclined to purchase sustainable and
ethically sourced products compared to older generations.
Geographic Location:
○ Explanation: Regional differences within a country can influence consumer behavior based
on local customs, climate, and preferences.
○ Example: In colder regions, consumers might favor winter clothing and heating appliances,
while in warmer climates, summer apparel and air conditioning are more relevant.
Understanding these cultural and subcultural factors helps businesses tailor their marketing
strategies to better meet the needs and preferences of different consumer groups.
 Subcultural Influences on CB
Case Study: Sabyasachi
Sabyasachi Mukherjee, a renowned Indian fashion designer, has successfully
tapped into subcultural influences to shape consumer behavior in the high-end
fashion market. Known for his luxurious bridal wear and intricate craftsmanship,
Sabyasachi caters to affluent consumers who value traditional Indian aesthetics
blended with contemporary fashion. His designs often incorporate regional
motifs, heritage textiles, and artisanal techniques, resonating with clients who
seek to celebrate their cultural roots through modern luxury. By leveraging
India's rich cultural diversity and emphasizing bespoke craftsmanship,
Sabyasachi appeals to a subculture of fashion-conscious individuals who
prioritize both elegance and cultural authenticity, thus solidifying his position in
the premium segment of the Indian fashion industry.
 Subcultural Influences on CB
Case Study: Chai Point
Chai Point, a popular Indian tea chain, effectively taps into the subcultural
influence of the growing tea-drinking culture among young urban
professionals. By offering a range of high-quality, locally sourced teas and
modernizing the traditional tea experience with a clean, contemporary store
design and convenient delivery options, Chai Point appeals to a subculture
of busy, health-conscious consumers who appreciate both tradition and
convenience. The brand’s emphasis on premium ingredients and a sleek,
modern café atmosphere resonates with this demographic's desire for a
blend of authentic flavors and contemporary lifestyle, driving its success in
India's competitive beverage market.
 ROLE OF CULTURAL NORMS IN CB
Product Preferences and Consumption Patterns:
● Explanation: Cultural norms dictate what is considered appropriate or desirable in terms of products
and services. This affects consumer preferences and purchasing habits.
● Example: In Japan, there is a strong cultural emphasis on aesthetics and presentation. This norm
leads to a high demand for beautifully packaged products and attention to detail in product design.
Brand Perception and Loyalty:
● Explanation: Cultural norms influence how consumers perceive and relate to brands. Brands that
align with or respect cultural norms are often more successful.
● Example: Nike’s marketing campaigns featuring local athletes or cultural symbols resonate well
with consumers in various regions, enhancing brand loyalty.
Advertising and Marketing Strategies:
● Explanation: Cultural norms shape the way advertising messages are crafted. What is considered
humorous, appealing, or acceptable varies between cultures.
● Example: In the U.S., humor is often used in advertising, while in more conservative cultures, ads
might focus on family values and tradition rather than humor.
 ROLE OF CULTURAL NORMS IN CB
Consumption Rituals and Traditions:
● Explanation: Certain products are consumed as part of specific cultural rituals or traditions,
influencing when and how they are purchased.
● Example: During Chinese New Year, there is a significant increase in the purchase of gifts,
decorations, and special foods, driven by cultural practices and beliefs about luck and prosperity.
Social Status and Aspirations:
● Explanation: Cultural norms can define what is considered prestigious or aspirational. Consumers
often seek products that reflect their social status or aspirations.
● Example: In many Western cultures, owning luxury cars and designer clothing is associated with
higher social status, influencing consumer choices in those segments.
Ethical and Environmental Considerations:
● Explanation: Cultural norms around ethics and environmental responsibility shape consumer
attitudes towards sustainability and corporate social responsibility.
● Example: Scandinavian countries have strong cultural norms regarding environmental
sustainability, leading to high consumer demand for eco-friendly and sustainable products.
 ROLE OF CULTURAL NORMS IN CB
Dietary Preferences and Restrictions:
● Explanation: Cultural norms often dictate dietary habits and restrictions, influencing food product
choices and consumption.
● Example: In India, many people follow vegetarian diets for religious or cultural reasons, leading to a
high demand for vegetarian food products.
Family and Social Influence:
● Explanation: Cultural norms about family roles and social influence can impact purchasing decisions,
especially in cultures with strong family ties.
● Example: In collectivist cultures like those in many Asian countries, family opinions and approvals are
crucial in significant purchasing decisions, such as buying a home or car.
Holiday and Seasonal Shopping:
● Explanation: Cultural norms around holidays and seasons influence consumer spending patterns and
product preferences.
● Example: In the U.S., Christmas is a major shopping season characterized by increased purchases of
gifts, decorations, and holiday-specific food items.
 ROLE OF CULTURAL NORMS IN CB
Shopping Habits and Preferences:
○ Explanation: Cultural norms affect where and how people shop, including
preferences for online versus offline shopping, or the types of stores they frequent.
○ Example: In South Korea, there is a high adoption of online shopping and digital
payment methods, driven by cultural norms around technology and convenience.
Understanding these cultural norms helps businesses tailor their strategies to align with
consumer expectations and preferences, improving engagement and satisfaction.
 OPINION LEADERS
Opinion Leaders
Who Are They? Opinion leaders are individuals who have a significant impact on the choices and attitudes of
others. They are often seen as experts or influential figures in a particular field.
How They Influence:
1. Expertise: People trust their opinions because they are knowledgeable or experienced in a specific area.
2. Social Status: Their high social standing or popularity makes their recommendations more persuasive.
Examples:
1. Bollywood Celebrities: In India, Bollywood stars like Shah Rukh Khan or Deepika Padukone often
influence consumer behavior. For example, if Deepika endorses a skincare brand like L’Oréal, her fans
are more likely to buy that product because they trust her opinion and want to emulate her style.
2. Tech Experts: When tech reviewers on YouTube, like Technical Guruji (Gaurav Chaudhary), review
gadgets and smartphones, their opinions can sway a large number of followers. For instance, if he praises
the features of a new smartphone from Xiaomi, his endorsement can lead many people to consider
purchasing it.
 FEATURES OF OPINION LEADERS
1. Expertise
Description: Opinion leaders are often experts or highly knowledgeable in a specific area.
Their expertise makes their opinions valuable and trustworthy.
Example: In the Indian tech industry, personalities like Technical Guruji (Gaurav Chaudhary)
are considered opinion leaders because of their deep knowledge of gadgets and technology.

2. Credibility
Description: They are perceived as reliable and honest. Their credibility comes from their past
experiences, achievements, or honest reviews.
Example: Renowned chefs like Sanjeev Kapoor are trusted opinion leaders in the culinary
field. Their recommendations on cooking products or recipes are valued due to their extensive
experience.
 FEATURES OF OPINION LEADERS
3. Charisma
Description: Opinion leaders often possess a charismatic personality that attracts people. Their charm and enthusiasm can make
their opinions more persuasive.

Example: Bollywood celebrities such as Priyanka Chopra have a charismatic presence that enhances their influence when they
endorse products.

4. Social Status
Description: They hold a prominent position or have a high social status, which amplifies their influence over others.

Example: Industrialists like Mukesh Ambani are opinion leaders in the business world. Their opinions on economic matters or
investments are highly regarded due to their status.

5. Network Size
Description: They have a large and engaged network of followers or connections. Their opinions reach a wide audience through
their social, professional, or digital networks.

Example: Influencers on social media platforms like Instagram, such as fashion blogger Komal Pandey, have extensive
followings. Their fashion advice reaches millions of followers quickly.
 FEATURES OF OPINION LEADERS
6. Innovativeness
Description: They are often early adopters of new products, ideas, or trends. Their willingness to try new things makes their
opinions relevant to those looking for the latest innovations.

Example: Indian startups like Zerodha's Nithin Kamath are seen as opinion leaders in the financial space for their innovative
approaches to trading and investment.

7. Persuasiveness
Description: Opinion leaders are skilled at convincing others through their arguments, demonstrations, or personal experiences.

Example: Fitness experts like Rujuta Diwekar, known for her advice on health and nutrition, can persuade people to adopt
healthier lifestyles through compelling recommendations and personal success stories.

8. Trustworthiness
Description: Their advice is seen as sincere and unbiased. They are trusted to provide honest opinions and recommendations
without hidden agendas.

Example: In the realm of skincare, dermatologists like Dr. Jaishree Sharad are trusted opinion leaders because their
recommendations are based on medical expertise rather than commercial interests.
 FEATURES OF OPINION LEADERS
9. Visibility
Description: They are highly visible in the media or public sphere. Their frequent
appearances in newspapers, TV shows, or online platforms increase their influence.
Example: News anchors like Rajdeep Sardesai are opinion leaders in journalism due to
their prominent role in media and frequent discussions on current affairs.

10. Consistency
Description: They provide consistent opinions and recommendations over time, which
helps build their reputation as reliable sources of information.
Example: Authors like Chetan Bhagat, known for his consistent storytelling in Indian
literature, influence readers’ choices in books and media.
 Role of Opinion Leaders in Purchase Process
1. Information Source
Role: Opinion leaders provide valuable information about products, services, or brands based on their expertise or experiences.

Example: A tech blogger like Technical Guruji can offer detailed reviews and comparisons of smartphones, helping consumers
understand which product best suits their needs.

2. Trust Building
Role: They build trust through their credibility and reliable opinions. Consumers are more likely to trust their recommendations
because of their established reputation.

Example: An experienced dermatologist like Dr. Jaishree Sharad may recommend a specific skincare product, and consumers
will trust her advice due to her medical expertise.

3. Product Endorsement
Role: Opinion leaders often endorse or recommend specific products, which can sway their followers’ purchasing decisions.

Example: Bollywood actress Deepika Padukone endorsing a cosmetic brand like L’Oréal can lead to a surge in product sales as
her fans follow her recommendations.
 Role of Opinion Leaders in Purchase Process
4. Social Proof
Role: They provide social proof, meaning their positive experiences or opinions can act as evidence that a product is good or
worth buying.

Example: If a popular fashion influencer on Instagram showcases a new line from Myntra and praises it, her followers may
perceive the brand as trendy and desirable, leading to increased sales.

5. Trendsetting
Role: Opinion leaders often set trends, influencing what is considered fashionable or desirable. Their choices can dictate market
trends.

Example: A celebrity chef like Sanjeev Kapoor showcasing a new kitchen gadget can lead to a rise in demand for that product
among home cooks and culinary enthusiasts.

6. Problem Solving
Role: They help solve problems by recommending products or solutions that meet specific needs or address issues.

Example: A fitness expert like Rujuta Diwekar might recommend a particular nutritional supplement or exercise gear, guiding
consumers who are looking to improve their health.
 Role of Opinion Leaders in Purchase Process
7. Guidance and Advice
Role: They offer guidance and advice during the decision-making process, helping consumers
weigh their options and make informed choices.
Example: A travel blogger who has extensively reviewed various travel gear can advise on the
best luggage or travel accessories, helping followers make better purchasing decisions.

8. Brand Loyalty and Advocacy

Role: Opinion leaders can foster brand loyalty by advocating for brands they believe in,
influencing their followers to support those brands.
Example: If a renowned cricket player like Virat Kohli consistently endorses a sportswear
brand like Puma, his fans are more likely to develop brand loyalty and prefer Puma over other
brands.
 Role of Opinion Leaders in Purchase Process
9. Feedback and Reviews
Role: They often provide honest feedback and reviews, which can help consumers evaluate the
pros and cons of a product before making a purchase.
Example: A gadget reviewer on YouTube who discusses the features and performance of a new
smartphone can help potential buyers decide whether to invest in that phone based on the
review’s content.

10. Creating Buzz

Role: Opinion leaders can generate buzz around a product or service, creating excitement and
anticipation among consumers.
Example: A popular YouTuber who gets early access to a new tech gadget and creates an
unboxing video can create hype and anticipation, leading to increased interest and early sales.
 Role of Opinion Leaders in Purchase Process
Summary of the Purchase Process with Opinion Leaders:
1. Awareness: Opinion leaders introduce or bring attention to new
products.
2. Information Gathering: Consumers seek out their reviews and
recommendations for detailed information.
3. Evaluation: Consumers weigh the advice and feedback from opinion
leaders against other information.
4. Decision Making: Influenced by their recommendations, consumers
make purchasing decisions.
5. Post-Purchase: Consumers may feel validated in their purcha
 SOCIAL INFLUENCES
Social Influences
What Are They? Social influences are the effects that other people or groups have on an individual's decisions and
behaviors. This can include family, friends, social networks, and societal norms.

How They Influence:

1. Social Proof: People often look at others’ behaviors and opinions to guide their own decisions. If many people
are buying a product, others are likely to follow.
2. Peer Pressure: Friends and family can influence our choices by recommending or discouraging certain
products.

Examples:

1. Social Media Trends: On platforms like Instagram or Facebook, trends often catch on quickly. For instance, if
a new fashion trend starts with influencers promoting a clothing line from Myntra, their followers may rush to
buy similar outfits.
2. Festive Sales and Promotions: During festivals like Diwali, Indian brands like Flipkart and Amazon run
special sales. Friends and family might share their finds or experiences, encouraging others to shop as well.
 CASE STUDY: CADBURY
Here’s a brief overview of the situation:
1. Incident: In 2003, a consumer in India discovered what appeared to be worms in a Dairy Milk
chocolate bar. The claim was made public, and it quickly gained attention.
2. Response: Cadbury, now part of Mondelez International, responded by conducting an
investigation. They denied the allegations, stating that their products were manufactured with
stringent quality controls. The company emphasized that their chocolates were sealed and
packaged under strict hygiene conditions to prevent contamination.
3. Outcome: Despite Cadbury's assurances and the results of their investigation, the incident
affected their brand reputation. The company undertook various measures to reassure
consumers, including enhancing their quality control processes and increasing transparency.
4. Legal and Brand Impact: Cadbury faced some legal challenges and had to work hard to
restore consumer confidence. They also had to spend significantly on public relations and
marketing to rebuild their image.
 CASE STUDY: CADBURY
QUESTIONS TO SOLVE:
1. Handling Customer Complaints: Question: If you were in charge of Cadbury's customer service,
how would you respond to customers who are worried about finding worms in their chocolate? What
would you say to reassure them?
2. Improving Product Quality: Question: What steps would you take to make sure that Cadbury
chocolates are always safe and clean? How would you explain these steps to customers to show
them that the problem has been fixed?
3. Public Apology: Question: How would you write a public apology for Cadbury to address the issue
of worms in the chocolate? What key points should be included in the apology?
4. Promoting Transparency: Question: What simple actions could Cadbury take to show customers
that their chocolate is safe and to build trust? How would you let people know about these actions?
5. Rebuilding Trust with a Campaign: Question: How would you create a marketing campaign to
help restore Cadbury’s reputation after the worm incident? What kind of messages or activities
would you include to win back customers?
 CASE STUDY: CADBURY
How did they handle the controversy:
Immediate Response:
● Public Statement: Cadbury quickly issued a public statement denying the allegations. They asserted that their products were
manufactured under strict hygiene and quality control standards.
● Investigation: The company launched an internal investigation to verify the claims. They conducted a detailed review of their
manufacturing and quality control processes to identify any potential issues.

Quality Assurance:

● Enhanced Measures: Cadbury implemented additional quality checks and reinforced their hygiene practices to prevent future
incidents. They aimed to reassure consumers that their chocolates met high safety and quality standards.
● Transparency: They worked on improving transparency by sharing information about their production processes and quality
control measures with the public.

Consumer Communication:

● Customer Service: Cadbury enhanced their customer service to handle complaints and concerns more effectively. They aimed to
provide prompt and clear responses to affected customers.
● Public Apology: While the company maintained that the claims were unfounded, they issued an apology for any distress caused to
consumers, showing empathy and taking responsibility for addressing concerns.
 CASE STUDY: CADBURY
Marketing and Public Relations:

○ Reputation Management: Cadbury invested in marketing and public relations efforts to rebuild their
brand image. This included advertising campaigns that highlighted the quality and safety of their products.
○ Consumer Engagement: They engaged with consumers through various channels, including social media
and events, to restore trust and confidence in their brand.

Legal and Regulatory Compliance:

○ Legal Actions: Cadbury took legal action against the media and individuals who spread false information
about their products. They sought to protect their brand from unfounded accusations and misinformation.
○ Regulatory Cooperation: They cooperated with food safety authorities to ensure that their products
complied with all relevant safety regulations and standards.

By taking these steps, Cadbury aimed to address the immediate concerns raised by the controversy, reinforce their
commitment to quality, and restore their reputation in the market.
 CASE STUDY: LIC
Life Insurance Corporation of India (LIC) has employed several strategies to build and maintain
customer loyalty over the years. Here are some key efforts LIC has made:
1. Comprehensive Product Range: LIC offers a wide variety of insurance products, including
term plans, endowment plans, money-back plans, and pension plans. This extensive range
helps meet diverse customer needs and preferences.
2. Customer-Centric Services: LIC focuses on providing high-quality customer service. This
includes personalized assistance, efficient claim processing, and regular updates to keep
customers informed about their policies.
3. Strong Network: LIC has a vast network of branches and agents across India. This widespread
presence ensures that customers have easy access to services and support, contributing to
their overall satisfaction and loyalty.
4. Innovation and Technology: LIC has embraced technology to improve customer experience.
This includes online policy management, digital payments, and mobile applications that allow
customers to manage their policies conveniently.
 CASE STUDY: LIC
5. Transparency and Trust: LIC is known for its transparency in operations and adherence to ethical
practices. Building trust through clear communication about policy terms, benefits, and procedures helps in
fostering long-term relationships with customers.

6. Customer Engagement Programs: LIC frequently conducts customer engagement activities such as
awareness campaigns, educational workshops, and seminars. These programs help customers understand the
value of insurance and the benefits of their policies.

7. Loyalty and Reward Programs: LIC has implemented various initiatives to reward loyal customers. This
includes bonuses, special offers, and incentives for policy renewals and long-term commitments.

8. Financial Strength and Stability: LIC’s strong financial position and track record of stability reassure
customers about the reliability and security of their investments, which enhances their loyalty to the brand.

9. Personalized Communication: LIC uses personalized communication to keep customers informed about
policy updates, premium reminders, and new products. This approach helps in maintaining an ongoing
relationship with customers.

By focusing on these areas, LIC has managed to build and sustain a strong customer base, ensuring loyalty
and long-term engagement.
 SELF CONCEPT
Self-concept in consumer behavior is about how people see themselves and
how this affects their buying choices. It’s like how you have a certain image
or idea of who you are, and this image influences what you buy.

Self-concept in consumer behavior refers to the way individuals perceive

themselves and how this perception influences their purchasing decisions. It
encompasses a person's current self-image, their aspirations for the future,
how they believe others see them, and how they want to be perceived by
others. Essentially, self-concept shapes consumer choices by aligning
purchases with one's personal identity, desires, and social aspirations,
influencing brand preferences and buying patterns based on how products
and brands reflect or enhance one’s self-image.
 COMPONENTS OF SELF CONCEPT
1. Actual Self-Concept
Definition: The actual self-concept is the image or perception of oneself as they are right now. This
includes personal characteristics, values, and beliefs about who one is at present.
Examples:
● Tata Nano: If you view yourself as practical and budget-conscious, the Tata Nano—a small,
affordable car—aligns with your current self-image of being economical and sensible. You might
choose it because it fits your lifestyle and financial reality.
● Amul Butter: If you see yourself as someone who values tradition and simplicity, Amul Butter, a
well-known and longstanding brand in India, might resonate with your current self-concept due
to its widespread acceptance and nostalgic value.
 COMPONENTS OF SELF CONCEPT
2. Ideal Self-Concept
Definition: The ideal self-concept reflects how one wishes to be seen in the future. It
includes aspirations, goals, and how one would like to be perceived.
Examples:
● Mercedes-Benz: If you aspire to be seen as successful and stylish, driving a luxury car
like a Mercedes-Benz aligns with this ideal self-concept. The brand’s image of
sophistication and success helps you project an image of achievement and high status.
● High-End Fashion Brands: Wearing designer clothing from brands like Sabyasachi
can help project an image of elegance and trendiness that aligns with your aspirations
for an elevated personal style.
 COMPONENTS OF SELF CONCEPT
3. Social Self-Concept
Definition: Social self-concept is how individuals believe others perceive them. It’s the image
you think you project to society and how you are seen in social contexts.
Examples:
● Hindustan Unilever’s Pureit: If you believe that others see you as someone who is
health-conscious and responsible, using a product like Pureit, which emphasizes purity and
safety, aligns with this social image. It shows that you care about health and environmental
issues.
● Patanjali Products: If you want to be perceived as someone who supports traditional and
natural lifestyles, using Patanjali’s Ayurvedic products helps reinforce this social image, as
the brand is associated with natural and holistic health.
 COMPONENTS OF SELF CONCEPT
4. Ideal Social Self-Concept
Definition: This is the image you desire to project to others. It reflects how you want
others to see you and the kind of impression you wish to make.
Examples:
● Nike: If you wish to be seen as active, sporty, and cutting-edge, wearing Nike
apparel helps project this ideal image. The brand’s emphasis on athleticism and
innovation supports the image you want others to have of you.
● Apple iPhone: If you want to be perceived as modern and tech-savvy, using an
Apple iPhone aligns with this ideal social self-concept. The brand is associated with
high-tech features and a trendy lifestyle, helping you project an image of being
up-to-date and sophisticated.
 COMPONENTS OF SELF CONCEPT
5. Extended Self-Concept
Definition: The extended self-concept involves the idea that our possessions and brands are an
extension of our identity. What we own can reflect our personal identity and values.
Examples:
● FabIndia: Purchasing products from FabIndia, which is known for its traditional and artisanal
items, can be an extension of your identity if you value and identify with Indian heritage and
craftsmanship. Your choice reflects a connection to cultural roots and a support for local
artisans.
● Rolex Watches: Owning a Rolex can be an extension of your self-concept if you see yourself
as successful and affluent. The brand’s association with luxury and prestige means that your
possession reflects a certain level of achievement and status.
In essence, each component of self-concept plays a role in influencing consumer behavior by
shaping choices that reflect how individuals view themselves, how they wish to be seen, and how
they want to be perceived by others.
 SELF CONCEPT-CASE STUDY
Case Study: "Ravi's Choice of Mobile Phone"
Background: Ravi, a 24-year-old college student from Delhi, needs to buy a new mobile phone. He has
a few options in mind and wants to choose one that best suits his personal image and lifestyle. Ravi likes
to stay up-to-date with the latest technology and also wants his phone to reflect a modern and trendy
image.

Brands Under Consideration:

1. Xiaomi Redmi Note: Affordable with good features and value for money.
2. Samsung Galaxy: Known for its reliability and advanced technology.
3. Apple iPhone: High-end brand with a reputation for premium quality and status.

Questions:

1. Which brand aligns best with Ravi's actual self-concept?

2. Which brand best reflects Ravi's ideal self-concept?
3. Which brand supports how Ravi wants to be perceived by others (social self-concept)?
4. Which brand fits Ravi’s extended self-concept?