CONSUMER BEHAVIOUR (MBA 6222) HPTU NOTES /SOLUTION OF SECOND SEMESTER #MARKETING

UNIT 1

Introduction to Consumer Behaviour

1. What is Consumer Behaviour?

Consumer Behaviour ka matlab hai yeh samajhna ki log (consumers) kyun aur kaise cheezein khareedte hain. Yeh study karta hai ki customers kya sochte hain, kya feel karte hain, aur kyun specific products ya services choose karte hain.

In simple words: It’s about understanding why people buy what they buy, how they make decisions, and what influences them.

2. Scope and Importance of Consumer Behaviour

Scope: Yeh field marketing, psychology, sociology, aur economics ko combine karta hai. It helps businesses figure out what customers want, how they shop, and how to make them happy.
Importance:
- Businesses use it to design better products.
- Helps in creating effective ads and marketing strategies.
- Samajh aata hai ki customers ke needs aur wants kya hain.
- Indian market ke liye yeh important hai kyunki India mein alag-alag cultures aur preferences hain.

3. Concept of Consumer Behaviour

Consumer Behaviour ka concept yeh hai ki har insaan alag tareeke se behave karta hai jab woh shopping karta hai. For example:

Ek person kapde khareedta hai brand ke wajah se.
Dusra person price dekhta hai.
Teesra person comfort ya quality pe focus karta hai.

Yeh sab depend karta hai unke mindset, culture, income, aur lifestyle pe.

4. Diversity of Consumer Behaviour

India mein consumers bohot diverse hain:

Urban vs Rural: City wale branded products prefer karte hain, jabki rural areas mein log affordable aur local cheezein pasand karte hain.
Age Groups: Youngsters trendy aur tech-savvy products pasand karte hain, jabki older generation traditional ya reliable cheezein dekhte hain.
Culture: North India mein spicy food pasand hai, South India mein alag taste. Yeh diversity products aur marketing ko affect karta hai.

5. Characteristics of Indian Consumers

Indian consumers ke kuch special traits hain:

Price-Sensitive: Zyada tar log paison ka value dekhte hain aur discounts pasand karte hain.
Brand-Conscious: Especially young urban crowd branded products pe focus karta hai.
Family-Oriented: Decisions aksar family ke liye soch ke liye jaate hain, jaise ghar ke liye kya best hai.
Influenced by Culture: Festivals, traditions, aur religion shopping habits ko shape dete hain (e.g., Diwali shopping).
Tech-Savvy: Online shopping aur digital payments ka trend badh raha hai, especially younger generation mein.

Individual Determinants of Consumer Behaviour

Ab baat karte hain ki kaunse individual factors consumer ke behaviour ko influence karte hain:

1. Motivation

Motivation woh inner drive hai jo kisi ko kuch khareedne ke liye push karta hai.
Example: Koi gym membership khareedta hai kyunki woh healthy rehna chahta hai (health motivation).
Types of Motivation:
- Maslow’s Hierarchy of Needs ke hisaab se:
  - Basic needs (khana, pani)
  - Safety needs (security, insurance)
  - Social needs (friends, family ke liye gifts)
  - Esteem needs (branded products for status)
  - Self-actualization (personal growth ke liye courses ya hobbies)

2. Personality and Self-Concept

Personality: Har insaan ka alag personality hota hai, jo unke buying habits ko affect karta hai. For example:
- Ek extrovert person flashy aur trendy cheezein khareed sakta hai.
- Ek introvert simple aur practical products prefer karega.
Self-Concept: Yeh hai ki log apne aap ko kaise dekhte hain. For example:
- Agar koi apne aap ko “cool” samajhta hai, woh latest gadgets ya fashionable clothes khareedega.

3. Consumer Perception

Perception ka matlab hai ki consumer kisi product ya brand ko kaise dekhta ya samajhta hai.
Example: Ek ad mein agar product ko “luxury” dikhaya jata hai, toh consumer usse premium samajhega, even if price same hai.
Perception depends on:
- Ads, packaging, brand image
- Personal experiences
- Friends ya family ka opinion

4. Consumer Learning

Learning ka matlab hai consumers kaise new information ya experiences se seekhte hain.
Example: Agar koi ek brand ka product use karta hai aur usse pasand aata hai, woh next time bhi wahi brand khareedega.
Learning happens through:
- Experience: Product try karne se.
- Information: Ads, reviews, ya friends ke suggestions se.
- Repetition: Baar-baar ek ad dekhne se brand yaad rehta hai.

5. Consumer Attitude Formation and Change

Attitude ek person ka kisi product, brand, ya service ke baare mein positive ya negative feeling hota hai.
Formation: Attitude banne mein family, culture, aur personal experiences ka role hota hai.
- Example: Agar kisi ke parents ek specific brand use karte hain, toh woh bhi usse pasand kar sakta hai.
Change: Attitudes badal bhi sakte hain:
- New ads ya campaigns se.
- Better product quality ya price se.
- Example: Agar ek brand pehle cheap quality deta tha, lekin ab better products launch karta hai, toh log ka attitude positive ho sakta hai.

Summary in Easy English

Consumer Behaviour is about why and how people buy things. It’s important for businesses to understand this to make better products and ads. Indian consumers are diverse—urban, rural, young, old, everyone has different preferences. Things like price, brand, culture, and family influence their choices.

UNIT 2

1. Influences on the Consumer: Consumer Needs and Motives

Consumer Needs

Definition: Needs woh basic ya psychological requirements hote hain jo ek consumer ko apni life mein chahiye hoti hain. Yeh drive karte hain unke buying decisions ko.
Types of Needs (based on Maslow’s Hierarchy):
1. Physiological Needs: Survival ke liye basic cheezein jaise khana, pani, kapde, shelter.
  - Example: Ek bhookha insaan roti ya snacks khareedta hai.
2. Safety Needs: Security aur protection ke liye needs, jaise health insurance ya safe car.
  - Example: Ek family car khareedti hai jisme airbags aur safety features hote hain.
3. Social Needs: Belonging aur relationships ke liye, jaise gifts ya social media gadgets.
  - Example: Ek teenager ek smartphone khareedta hai taaki friends ke saath connected rahe.
4. Esteem Needs: Respect, status, ya recognition ke liye.
  - Example: Ek professional luxury watch khareedta hai to show status.
5. Self-Actualization Needs: Personal growth ya passion ke liye.
  - Example: Koi yoga classes ya online courses khareedta hai apne skills improve karne ke liye.
Why It Matters: Needs decide karte hain ki consumer kya khareedega. Businesses in needs ko samajhkar products design karte hain, jaise budget food products for physiological needs ya premium brands for esteem needs.

Consumer Motives

Definition: Motives woh internal drives hain jo needs ko fulfill karne ke liye action trigger karte hain. Yeh batate hain ki consumer kyun kuch khareedta hai.
Types of Motives:
1. Positive Motivation: Jab koi cheez desirable hoti hai, toh usse paane ke liye consumer motivate hota hai.
  - Example: Ek student naya laptop khareedta hai kyunki usme better features hain for studies (positive drive: better performance).
2. Negative Motivation: Jab koi problem ya risk se bachne ke liye consumer kuch khareedta hai.
  - Example: Ek person health insurance khareedta hai taaki medical emergencies se bacha jaye (negative drive: avoiding loss).
3. Rational Motives: Logical aur practical thinking pe based. Yeh focus karta hai price, quality, durability, ya value pe.
  - Example: Ek consumer do brands ke washing machines compare karta hai aur jo affordable aur energy-efficient hai, woh choose karta hai.
4. Emotional Motives: Feelings ya emotions pe based, jaise love, excitement, ya nostalgia.
  - Example: Ek person apni wife ke liye expensive jewellery khareedta hai to express love (emotional drive).
Depth: Needs aur motives interconnected hote hain. Ek need (jaise safety) ek motive (jaise insurance khareedna) ko trigger karta hai. Indian consumers mein rational motives (paisa vasool products) aur emotional motives (family ke liye gifts) dono strong hote hain. Businesses ads banate hain jo in motives ko target karte hain, jaise “family ke liye best” ya “budget-friendly quality.”

2. Consumer Relevant Reference Groups

What are Reference Groups?

Reference groups woh log ya groups hote hain jo consumer ke opinions, attitudes, aur buying decisions ko influence karte hain. Yeh groups unke role models ya social circle hote hain.
Types of Reference Groups:
1. Primary Groups: Close aur daily contact wale groups, jaise family, friends.
  - Example: Agar dost bolte hain ki ek specific brand ka headphone awesome hai, toh consumer usse try kar sakta hai.
2. Secondary Groups: Thoda distant groups, jaise colleagues, neighbors, ya community groups.
  - Example: Office mein colleagues ke fashion sense dekhkar koi new formal clothes khareedta hai.
3. Aspirational Groups: Woh groups jinke jaisa consumer banna chahta hai, jaise celebrities ya influencers.
  - Example: Ek teenager Virat Kohli ke jaisa sports gear khareedta hai kyunki woh uska fan hai.
4. Dissociative Groups: Woh groups jinke jaisa consumer nahi banna chahta.
  - Example: Koi outdated fashion avoid karta hai kyunki woh “old-school” group se associated nahi hona chahta.
Influence: Reference groups consumer ke choices ko shape karte hain by setting standards ya expectations. Indian consumers pe family aur friends ka influence bohot strong hota hai.

Opinion Leaders

Definition: Opinion leaders woh log hote hain jo apne group mein influential hote hain aur doosron ke decisions ko guide karte hain. Yeh usually well-informed, confident, aur socially active hote hain.
Characteristics:
- Knowledgeable: Specific field mein expertise, jaise tech ya fashion.
- Trusted: Log inki baat seriously lete hain.
- Socially Connected: Social media ya real life mein active.
Example: Ek tech-savvy friend jo hamesha latest smartphones ke baare mein baat karta hai aur doosron ko recommend karta hai. Ya ek Instagram influencer jo makeup products promote karta hai.
Business Impact: Brands opinion leaders ko target karte hain, jaise influencers ko free products dete hain taaki woh brand ka promotion karein. Indian market mein influencers ka bohot impact hai, especially Gen Z pe.

Family Decision Making and Consumption-Related Roles

Family as a Reference Group: Indian families mein buying decisions aksar collective hote hain. Har member ka role hota hai.
Roles in Family Decision Making:
1. Initiator: Idea dene wala.
  - Example: Bacha bolta hai, “Mujhe naya PlayStation chahiye.”
2. Influencer: Opinions dene wala.
  - Example: Mom bolti hai, “Yeh brand reliable hai.”
3. Decision-Maker: Final call lene wala.
  - Example: Dad bolta hai, “Theek hai, yeh wala khareedte hain.”
4. Purchaser: Actual khareedne wala.
  - Example: Mom online order place karti hai.
5. User: Product use karne wala.
  - Example: Bacha PlayStation khelta hai.
Depth: Indian families mein joint decision-making common hai, especially bade purchases (car, house) ke liye. Women ka role bhi strong ho raha hai, especially household products mein.

Family Life Cycle (FLC)

Definition: Family ke different stages jo consumer behaviour ko affect karte hain.
Stages and Their Impact:
1. Young Single: Focus on personal growth, fashion, gadgets, travel.
  - Example: Ek college student trendy clothes ya latest phone khareedta hai.
2. Newly Married: Focus on setting up home, furniture, appliances.
  - Example: Couple ek new fridge ya sofa set khareedta hai.
3. Parents with Young Kids: Focus on kids’ needs, education, safety.
  - Example: Baby products, school supplies, ya safe cars.
4. Parents with Older Kids: Focus on education, hobbies, family vacations.
  - Example: Laptops for kids’ studies ya family holiday packages.
5. Empty Nesters: Kids independent ho gaye, focus on health, retirement, leisure.
  - Example: Health insurance, wellness products, ya travel packages.
Depth: FLC ke hisaab se businesses targeted marketing karte hain. For example, diaper brands young parents ko target karte hain, aur travel companies empty nesters ke liye luxury tours promote karte hain.

3. Social Class and Consumer Behaviour

Definition: Social class ek group hai jo income, education, occupation, aur lifestyle ke basis pe banata hai. Yeh consumer ke buying habits ko shape karta hai.
Types of Social Classes:
- Upper Class: High income, luxury lifestyle.
  - Example: Luxury cars (BMW), designer clothes.
- Middle Class: Moderate income, focus on value-for-money.
  - Example: Budget smartphones, affordable cars like Maruti.
- Lower Class: Limited income, focus on basic needs.
  - Example: Low-cost FMCG products, second-hand goods.
Influence on Consumer Behaviour:
- Spending Habits: Upper class zyada spend karta hai premium products pe, middle class balances quality aur price, lower class focuses on affordability.
- Brand Preferences: Upper class exclusive brands pasand karta hai (Gucci, Apple), middle class reliable brands (Samsung, Titan).
- Lifestyle: Social class lifestyle define karta hai. Upper class fine dining ya international travel prefer karta hai, middle class local restaurants ya domestic vacations.
Indian Context: India mein middle class sabse bada consumer segment hai. Yeh log aspirational hote hain, matlab thodi premium cheezein khareedte hain to show upward mobility (e.g., EMI pe iPhone).
Depth: Social class dynamic hai. Log higher social class ka part banne ke liye products khareedte hain, jaise ek middle-class family ek premium TV khareedti hai to feel “upscale.” Businesses social class ke hisaab se pricing aur marketing strategies banate hain.

4. Influence of Culture on Consumer Behaviour

Definition: Culture woh shared values, beliefs, traditions, aur customs hote hain jo ek society ke log follow karte hain. Yeh consumer ke buying decisions ko deeply affect karta hai.
How Culture Influences:
- Values and Beliefs: Indian culture family-oriented hai, isliye products jo family ke liye hain (big cars, home appliances) popular hote hain.
- Festivals: Diwali, Eid, Christmas ke time specific products ki demand badhti hai.
  - Example: Diwali mein gold, sweets, ya electronics khareede jaate hain.
- Traditions: Traditional products like sarees, kurtas, ya ethnic jewellery festive seasons mein zyada bikte hain.
Sub-Culture: Culture ke chhote groups, jaise regional, religious, ya linguistic groups.
- Example: South Indians idli makers ya filter coffee prefer karte hain, jabki North Indians roti makers ya chai pasand karte hain.
Cross-Cultural Context:
- Jab brands global markets mein enter karte hain, unhe local culture ke hisaab se products adapt karne padte hain.
- Example: McDonald’s India mein beef nahi serve karta kyunki Hindu culture mein cow sacred hai. Instead, they offer McAloo Tikki ya Chicken Maharaja Mac.
- Another Example: Starbucks India mein chai-based drinks introduce karta hai to suit local taste.
Depth: Culture subconscious level pe bhi decisions affect karta hai. Indian consumers emotional aur traditional values se strongly connected hote hain, isliye brands festivals ya cultural events ke around campaigns banate hain, jaise “Diwali Dhamaka Sales.”

5. Diffusion of Innovations

Definition: Diffusion of innovations ek process hai jisme ek new product, service, ya idea market mein spread hota hai aur consumers usse adopt karte hain.
Diffusion Process (5 Stages):
1. Knowledge: Consumer ko new product ke baare mein pata chalta hai.
  - Example: Ads se pata chalta hai ki ek new foldable smartphone launch hua hai.
2. Persuasion: Consumer product ke benefits evaluate karta hai, jaise reviews padhkar ya friends se baat karke.
  - Example: Foldable phone ke features check karta hai, jaise flexibility aur camera quality.
3. Decision: Consumer decide karta hai ki product khareedna hai ya nahi.
  - Example: Phone khareedne ka faisla karta hai kyunki woh unique hai.
4. Implementation: Consumer product use karta hai.
  - Example: Foldable phone use karke fitness tracking ya gaming try karta hai.
5. Confirmation: Consumer product se satisfied hota hai aur doosron ko recommend karta hai.
  - Example: Friends ko bolta hai, “Yeh phone awesome hai, tum bhi try karo!”
Adoption Process: Yeh individual level pe hota hai jab koi new product adopt karta hai. Log alag-alag speed se adopt karte hain:
- Innovators (2.5%): Risk-takers jo sabse pehle new products try karte hain.
  - Example: Tech geeks jo launch day pe naya iPhone khareedte hain.
- Early Adopters (13.5%): Opinion leaders jo trends set karte hain aur respected hote hain.
  - Example: Influencers jo new gadgets promote karte hain.
- Early Majority (34%): Practical log jo research ke baad adopt karte hain jab product thoda established ho jata hai.
  - Example: Middle-class families jo smartphone khareedte hain jab price thoda kam hota hai.
- Late Majority (34%): Skeptical log jo tab adopt karte hain jab product market mein common ho jata hai.
  - Example: Older generation jo smartphones tab khareedti hai jab sab use kar rahe hote hain.
- Laggards (16%): Last mein adopt karte hain, change se hesitate karte hain.
  - Example: Koi abhi bhi feature phone use karta hai jab smartphones universal ho chuke hain.

Consumer Innovativeness and Personality Traits

Innovativeness: Yeh ek personality trait hai jo batata hai ki koi kitna open hai new products ya ideas try karne ke liye.
- High Innovativeness: Tech-savvy, adventurous log jo new cheezein jaldi try karte hain.
  - Example: Ek young professional naya smartwatch khareedta hai launch ke din hi.
- Low Innovativeness: Traditional ya risk-averse log jo purane products se comfortable hote hain.
  - Example: Koi purana Nokia phone use karta hai kyunki woh naye smartphones pe trust nahi karta.
Personality Traits Affecting Innovativeness:
- Openness to Experience: Yeh log new ideas aur products try karne ke liye excited hote hain.
- Risk-Taking: Innovators risks lene se nahi darte, jaise expensive new gadgets try karna.
- Social Status: Kuch log new products khareedte hain to stand out in their social group.
  - Example: Ek teenager latest AirPods khareedta hai to apne friends ke beech cool dikhne ke liye.
Depth: Diffusion process businesses ke liye critical hai kyunki yeh batata hai ki new product kaunsa segment pehle adopt karega. India mein mobile phones, UPI payments, aur online shopping apps ka diffusion bohot tezi se hua kyunki young population innovative aur tech-savvy hai. Brands innovators aur early adopters ko target karte hain taaki word-of-mouth se product popular ho.

Summary in Easy English

Consumer Needs and Motives: People buy to fulfill basic (food, safety) or emotional needs (status, love). Motives can be positive (wanting something good), negative (avoiding problems), rational (logical), or emotional (feelings-based).
Reference Groups: Friends, family, or influencers affect buying decisions. Opinion leaders guide others, and family members play roles like initiator or decision-maker. The family life cycle (single, married, parents) changes buying priorities.
Social Class: Income, education, and lifestyle decide what people buy. Upper class loves luxury, middle class wants value, lower class focuses on basics.
Culture: Traditions, festivals, and values shape buying. Global brands adapt to local cultures (e.g., McDonald’s in India). Sub-cultures like regional or religious groups also matter.
Diffusion of Innovations: New products spread through stages (knowledge to adoption). Innovators try first, followed by early adopters, majority, and laggards. Personality traits like openness or risk-taking decide how fast someone adopts.

UNIT 3

1. Consumer Decision Making

What is Consumer Decision Making?

Consumer decision making woh process hai jisme consumer koi product ya service khareedne ka faisla karta hai. Yeh process simple ho sakta hai (jaise daily use ka soap khareedna) ya complex (jaise car ya house khareedna). Isme multiple stages aur factors involved hote hain, jaise needs, information, aur preferences.

Models of Consumer Decision Making

Yeh models explain karte hain ki consumers kaise decisions lete hain. Har model alag perspective deta hai. Let’s look at the four mentioned models:

a. Engel-Kollat-Blackwell (EKB) Model

What is it?: Yeh model consumer decision-making ko five stages mein divide karta hai aur external aur internal factors ko consider karta hai.
Stages:
1. Need Recognition: Consumer ko realize hota hai ki usse kuch chahiye.
  - Example: Garmi mein ek person ko thanda pani chahiye, toh fridge khareedne ka sochta hai.
2. Information Search: Consumer options research karta hai.
  - Example: Online reviews padhta hai ya dukaan mein fridges compare karta hai.
3. Evaluation of Alternatives: Consumer alag-alag brands ya models ko compare karta hai.
  - Example: Samsung, LG, ya Whirlpool mein se kaunsa fridge better hai, yeh dekhta hai (price, features, warranty).
4. Purchase Decision: Final choice karta hai aur khareedta hai.
  - Example: LG ka fridge khareedta hai kyunki woh budget mein hai aur energy-efficient hai.
5. Post-Purchase Evaluation: Product use karke satisfaction ya dissatisfaction feel karta hai.
  - Example: Fridge acha kaam karta hai toh happy hota hai, warna complaint karta hai.
Key Factors:
- Internal: Motivation, perception, learning, personality.
- External: Culture, family, social class, marketing.
Depth: EKB model practical hai kyunki yeh real-life decision process ko step-by-step dikhata hai. Indian consumers ke liye yeh relevant hai kyunki woh price aur quality pe bohot focus karte hain.

b. Howard-Sheth Model

What is it?: Yeh complex model hai jo consumer ke buying behaviour ko inputs, processing, aur outputs ke through explain karta hai. Yeh bade purchases (jaise electronics) ke liye zyada relevant hai.
Components:
1. Inputs: Information jo consumer ko milti hai.
  - Stimulus Inputs: Ads, discounts, product displays.
  - Symbolic Inputs: Brand image, reputation.
  - Social Inputs: Family, friends ke opinions.
  - Example: Ek TV ad dikhata hai ki naya LED TV 4K quality deta hai.
2. Perceptual Constructs: Consumer kaise information process karta hai.
  - Attention: Consumer ads ya information notice karta hai.
  - Perception: Information ko samajhta hai aur interpret karta hai.
  - Example: Consumer TV ke features (4K, smart TV) ko samajhta hai.
3. Learning Constructs: Consumer ka past experience aur learning decision ko affect karta hai.
  - Motives: Why consumer wants the product.
  - Brand Comprehension: Brand ke baare mein knowledge.
  - Example: Agar consumer ne pehle Samsung TV use kiya hai, toh uspe trust karta hai.
4. Outputs: Final decision ya behaviour (purchase, no purchase, ya delay).
  - Example: Consumer Samsung 4K TV khareedta hai.
Depth: Yeh model complex purchases ke liye detailed hai kyunki yeh dikhata hai ki consumer kaise information filter karta hai aur decision tak pohochta hai. Indian context mein, yeh big-ticket items (cars, TVs) ke liye useful hai.

c. Bettman’s Information Processing Model

What is it?: Yeh model focus karta hai ki consumer kaise information process karta hai aur decisions banata hai, especially jab options bohot hote hain.
Key Points:
- Information Overload: Agar bohot saari choices hain, consumer confuse ho sakta hai.
  - Example: Online 50 types ke smartphones dekhkar consumer confuse ho jata hai.
- Cognitive Resources: Consumer ke paas limited attention aur memory hoti hai, isliye woh shortcuts (heuristics) use karta hai.
  - Example: Consumer brand name ya price ke basis pe jaldi decide karta hai instead of all features compare karne ke.
- Stages:
  - Perception: Information notice karna.
  - Memory: Past experiences ya knowledge use karna.
  - Decision Rules: Simple rules ya criteria se decision lena.
  - Example: “Bas yeh phone under ₹20,000 ho aur acha camera ho.”
Depth: Yeh model practical hai jab consumers ke paas time ya information zyada hoti hai. Indian consumers aksar price ya brand pe quick decisions lete hain, especially jab options zyada hote hain.

d. HCB (Hedonic Consumption Behaviour) Model

What is it?: Yeh model emotional aur sensory experiences pe focus karta hai jo consumer ko products se milte hain, especially luxury ya fun products.
Key Points:
- Consumers products khareedte hain not just for utility, balki enjoyment, excitement, ya emotional satisfaction ke liye.
- Hedonic Factors: Sensory pleasure, aesthetics, emotional connection.
- Example: Ek person expensive perfume khareedta hai kyunki uski smell se woh special feel karta hai.
- Yeh model zyada relevant hai for products like fashion, cosmetics, movies, ya luxury goods.
Depth: Indian consumers mein hedonic consumption badh raha hai, especially young generation mein. Brands jaise Apple ya Nykaa iska fayda uthate hain by focusing on emotional appeal (status, style).

2. Concept of Involvement, Extensive/Limited Problem Solving, Routinized Response Behaviour

Concept of Involvement

Definition: Involvement ka matlab hai ki consumer kitna interested ya emotionally invested hai ek purchase decision mein.
Types:
- High Involvement: Jab purchase important hota hai, high cost ya risk hota hai, ya emotionally significant hota hai.
  - Example: Car, house, ya expensive jewellery khareedna.
  - Characteristics: Zyada research, time, aur effort lagta hai.
- Low Involvement: Jab purchase routine ya low-risk hota hai.
  - Example: Toothpaste, soap, ya snacks khareedna.
  - Characteristics: Quick decision, kam research.
Depth: Indian consumers high involvement decisions (like cars) mein family aur social opinions ko bohot importance dete hain, jabki low involvement mein brand loyalty ya habit ka role hota hai.

Extensive Problem Solving (EPS)

What is it?: Jab consumer ke paas product ke baare mein kam knowledge hota hai aur purchase high involvement hai, toh woh detailed research karta hai.
Characteristics:
- New product ya category.
- High risk (financial, emotional).
- Multiple options compare karna.
Example: Pehli baar laptop khareedna. Consumer online reviews, specs, aur prices compare karta hai, friends se advice mangta hai, aur time leta hai decision ke liye.
Indian Context: EPS common hai jab log big-ticket items khareedte hain, jaise smartphones ya appliances, kyunki Indian consumers value-conscious hote hain.

Limited Problem Solving (LPS)

What is it?: Jab consumer ke paas thodi knowledge hoti hai aur purchase moderately important hota hai, toh woh limited research karta hai.
Characteristics:
- Some prior experience ya knowledge.
- Moderate risk ya involvement.
- Quick comparison of a few options.
Example: Ek person naya shampoo khareedta hai. Woh 2-3 brands compare karta hai (price, quality) lekin zyada research nahi karta.
Indian Context: LPS daily use products (FMCG) ke liye common hai, jaise detergents ya snacks.

Routinized Response Behaviour (RRB)

What is it?: Jab consumer repeatedly same product khareedta hai bina zyada sochne ke, usually low involvement purchases ke liye.
Characteristics:
- Habitual buying.
- Brand loyalty ya convenience pe based.
- Kam effort aur time.
Example: Har baar same brand ka toothpaste ya milk khareedna bina options compare kiye.
Indian Context: Indian consumers RRB dikhate hain jab baat trusted brands (Durex, Amul) ki hoti hai, especially daily essentials ke liye.

3. Post-Purchase Behaviour

Consumer Satisfaction Concept

Definition: Satisfaction woh feeling hai jo consumer ko product ya service use karne ke baad milti hai, based on whether it meets expectations.
Factors Affecting Satisfaction:
- Expectations: Agar product expectations se better perform karta hai, consumer satisfied hota hai.
- Performance: Actual product experience.
- Comparison: Consumer apne expectations ko performance se compare karta hai.
Example: Agar koi ek smartphone khareedta hai expecting good camera, aur camera acha nikalta hai, woh satisfied hota hai. Agar camera kharab hota hai, woh dissatisfied hota hai.

Consumer Satisfaction Models

Yeh models explain karte hain ki satisfaction kaise form hoti hai aur consumers kaise react karte hain.

a. Expectancy Disconfirmation Model

What is it?: Yeh model kehta hai ki satisfaction ispe depend karta hai ki product consumer ke expectations se kaise compare hota hai.
Types of Disconfirmation:
- Positive Disconfirmation: Product expectations se better hota hai → Satisfaction.
  - Example: Ek restaurant ka food itna tasty hota hai ki consumer khush ho jata hai.
- Confirmation: Product expectations ke barabar hota hai → Neutral satisfaction.
  - Example: Ek shampoo waisa hi kaam karta hai jaisa ad mein dikhaya tha.
- Negative Disconfirmation: Product expectations se kharab hota hai → Dissatisfaction.
  - Example: Ek phone ad mein fast dikhaya gaya, lekin slow nikalta hai.
Depth: Indian consumers ke liye yeh model bohot relevant hai kyunki woh ads aur reviews pe rely karte hain, aur agar product expectations meet nahi karta, toh dissatisfaction jaldi hoti hai.

b. Desires Congruency Model

What is it?: Yeh model kehta hai ki satisfaction tab hoti hai jab product consumer ke desires (wants) ko fulfill karta hai, na ki sirf expectations ko.
Key Point: Desires deeper hote hain than expectations. Yeh emotional ya personal goals se related hote hain.
Example: Ek consumer ek car khareedta hai not just for transport (expectation) but to feel successful (desire). Agar car usse yeh feeling deti hai, woh satisfied hota hai.
Depth: Indian market mein emotional desires (status, family pride) bohot matter karte hain, especially luxury products ke liye.

c. Equity Theory

What is it?: Yeh model kehta hai ki satisfaction ispe depend karta hai ki consumer ko lagta hai usne jo paisa diya, uske badle fair value mili ya nahi.
Key Point: Fairness ka sense satisfaction ko affect karta hai.
Example: Agar ek consumer ₹500 ka restaurant meal khata hai aur usse awesome food aur service milta hai, woh satisfied hota hai kyunki usse “value for money” feel hota hai. Agar service kharab ho, woh dissatisfied hota hai kyunki usse “unfair” lagta hai.
Depth: Indian consumers bohot price-sensitive hote hain, isliye equity theory unke liye relevant hai. Woh hamesha “paisa vasool” wala experience chahte hain.

d. Attribution Theory

What is it?: Yeh model kehta hai ki consumers dissatisfaction ya satisfaction ka reason (cause) dhundte hain.
Key Point: Consumers apne experience ka blame ya credit dete hain (brand, themselves, ya external factors).
Example: Agar ek phone kharab ho jata hai, consumer sochta hai:
- Brand ka fault hai (poor quality) → Brand pe blame.
- Maine galat use kiya (wrong handling) → Khud pe blame.
- Shop ne defective piece diya → Shop pe blame.
Depth: Indian consumers attribution ke through complaints ya loyalty dikhate hain. Agar brand ka fault hai, woh negative reviews dete hain; agar external factor hai, brand ko defend kar sakte hain.

e. Cognitive Dissonance

What is it?: Yeh ek psychological discomfort hai jo consumer ko hoti hai jab woh doubt karta hai ki usne sahi purchase decision liya ya nahi.
Why It Happens: High involvement purchases mein, jab consumer ko lagta hai ki shayad doosra option better hota.
Example: Ek person iPhone khareedta hai, lekin baad mein sochta hai ki Samsung ka phone sasta aur better features wala tha. Yeh doubt cognitive dissonance hai.
How to Reduce:
- Positive reviews ya after-sales service se.
- Example: Brand warranty ya customer support deta hai toh consumer ka doubt kam hota hai.
Depth: Indian consumers mein cognitive dissonance common hai kyunki woh options compare karte hain aur price-conscious hote hain. Brands isse reduce karne ke liye money-back guarantees ya trial periods dete hain.

f. Consumer Delight

What is it?: Consumer delight tab hota hai jab product ya service expectations se bohot zyada better hota hai, leading to a “wow” experience.
Example: Ek restaurant mein free dessert ya exceptional service milta hai, toh consumer delighted hota hai aur brand ko recommend karta hai.
Depth: Indian market mein delight create karna important hai kyunki word-of-mouth (friends, family) bohot strong hai. Brands small gestures (freebies, personalized service) se delight dete hain.

g. Consumer Complaint Behaviour

What is it?: Jab consumer dissatisfied hota hai, woh apni shikayat express karta hai.
Types:
- Voice Complaints: Brand ya shop se direct shikayat karna.
  - Example: Customer care ko call karke phone ke issue ke baare mein bolna.
- Private Complaints: Friends, family ko batana.
  - Example: WhatsApp group mein bolna ki “Yeh brand kharab hai.”
- Third-Party Complaints: Consumer forums ya social media pe shikayat karna.
  - Example: Twitter pe brand ko tag karke complaint likhna.
Depth: Indian consumers ab social media pe complaints zyada karte hain, especially Gen Z. Brands ko quick response dena padta hai taaki reputation safe rahe.

Summary in Easy English

Consumer Decision Making:
- Consumers follow a process to buy products, from recognizing a need to evaluating post-purchase satisfaction.
- EKB Model: 5 stages (need, search, evaluate, purchase, post-purchase).
- Howard-Sheth Model: Focuses on inputs (ads, social influence), processing, and outputs.
- Bettman’s Model: How consumers process information, using shortcuts for complex decisions.
- HCB Model: Focuses on emotional and sensory pleasures (e.g., luxury goods).
Involvement and Problem Solving:
- High Involvement: Big purchases (cars) need lots of research (EPS).
- Low Involvement: Routine buys (soap) need little effort (RRB or LPS).
- EPS: Detailed research for new, risky purchases.
- LPS: Limited research for familiar products.
- RRB: Habitual buying with minimal thought.
Post-Purchase Behaviour:

Satisfaction: Depends on whether product meets expectations.
Models:

Expectancy Disconfirmation: Satisfaction based on expectations vs. performance.
Desires Congruency: Fulfilling deeper desires (e.g., status).
Equity Theory: Feeling of fairness in value received.
Attribution Theory: Finding reasons for good/bad experiences.
Cognitive Dissonance: Doubt about purchase decisions.
Consumer Delight: “Wow” experiences beyond expectations.
Complaint Behaviour: Expressing dissatisfaction (to brand, friends, or public).

UNIT 4

1. Consumerism

Evolution of Consumer Society

What is it?: Consumer society ka matlab hai ek aisa samaj jahan log zyada se zyada products aur services khareedte hain aur consumption ek important part hai lifestyle ka. Yeh society time ke saath develop hui hai:
- Early Days: Pehle log sirf basic needs (khana, kapde, shelter) ke liye khareedte the.
- Industrial Revolution: Factories ne mass production shuru kiya, aur products saste aur accessible hue.
- Modern Era: Ab consumerism ka focus luxury, convenience, aur status pe hai, especially urban areas mein.
- Indian Context: India mein consumer society 1990s ke liberalization ke baad badhi, jab foreign brands aaye aur middle class ka purchasing power badha.
- Example: Pehle log local shops se khareedte the; ab Amazon, Flipkart se online shopping karte hain.

Definition of Consumerism

Consumerism ek social aur economic movement hai jo consumers ke rights ko protect karne aur unhe empower karne pe focus karta hai.
Yeh ensure karta hai ki buyers ko fair treatment mile, quality products mile, aur unki shikayaton ka solution ho.
Example: India mein Consumer Protection Act (1986, updated 2019) consumers ko protect karta hai against fraud, defective products, ya unfair practices.

Buyers’ and Sellers’ Rights

Buyers’ Rights (Consumer ke rights):
1. Right to Safety: Safe products ka right, jaise medicines ya electronics jo harmful na ho.
  - Example: Ek phone ka charger faulty nahi hona chahiye.
2. Right to Information: Product ke baare mein complete aur correct information.
  - Example: Food packets pe ingredients aur expiry date hona chahiye.
3. Right to Choose: Alag-alag options mein se choose karne ka right.
  - Example: Multiple brands ke smartphones available hone chahiye.
4. Right to be Heard: Complaints ya feedback ke liye platform.
  - Example: Customer care ya consumer forums.
5. Right to Redress: Defective products ke liye refund ya replacement.
  - Example: Faulty laptop ke liye refund ya repair.
6. Right to Consumer Education: Consumer rights ke baare mein awareness.
  - Example: Campaigns jaise “Jago Grahak Jago” in India.
Sellers’ Rights:
- Fair profit kamane ka right.
- Legal protection against unfair complaints ya fraud by consumers.
- Example: Ek shopkeeper refund nahi de sakta agar consumer ne product intentionally damage kiya ho.
Depth: Indian consumers ab zyada aware hain apne rights ke baare mein, thanks to laws aur social media. Brands ko transparent hona padta hai to avoid backlash.

Effects of Consumerism

Positive Effects:
- Better product quality kyunki brands ko competition mein survive karna hota hai.
- Consumers ke liye zyada choices aur better services.
- Empowerment through laws aur awareness (e.g., Consumer Protection Act).
- Example: Online reviews aur ratings se brands ko quality improve karni padti hai.
Negative Effects:
- Overconsumption: Log zarurat se zyada khareedte hain, leading to waste.
- Environmental impact: Plastic packaging aur fast fashion se pollution.
- Financial stress: EMI ya loans se luxury items khareedna.
- Example: India mein festive sales ke time log zyada khareedte hain, jo debt ka reason ban sakta hai.
Depth: India mein consumerism ka growth middle class aur digital platforms ke wajah se tezi se hua hai, lekin isne sustainability issues bhi badhaye hain.

2. Organizational Buying

Concept of Organizational Buying

What is it?: Organizational buying woh process hai jisme businesses, institutions, ya government products ya services khareedte hain apne operations ke liye.
Examples:
- Ek company office ke liye computers khareedti hai.
- Ek hospital medical equipment khareedta hai.
- Ek government school ke liye desks aur books khareedti hai.
Key Characteristics:
- Large quantities mein khareedari.
- Formal processes, jaise tenders ya contracts.
- Multiple decision-makers involved.
- Focus on cost, quality, aur long-term benefits.

Comparison with Consumer Buying

Aspect	Organizational Buying	Consumer Buying
Purpose	Business operations ya resale ke liye.	Personal use ya satisfaction ke liye.
Quantity	Large quantities (bulk).	Small quantities (individual).
Decision-Makers	Multiple stakeholders (managers, procurement team).	Usually individual ya family.
Process	Formal (tenders, contracts, negotiations).	Informal (quick decisions, less paperwork).
Criteria	Cost, quality, reliability, long-term benefits.	Emotions, convenience, brand, price.
Example	Factory ke liye machinery khareedna.	Ghar ke liye TV khareedna.

Depth: Indian businesses (jaise SMEs) organizational buying mein price aur reliability pe focus karte hain, jabki consumers emotional aur status-driven decisions lete hain.

Influences on Organizational Buying

Organizational buying decisions multiple external aur internal factors se affect hote hain:

Economic Influence:
- Market conditions, budget constraints, aur inflation affect karte hain.
- Example: Agar economy mein recession hai, company kam costly suppliers choose karegi.
Political Influence:
- Government policies ya political stability decisions ko shape karti hai.
- Example: “Make in India” policy ke wajah se companies local suppliers prefer karte hain.
Legal Influence:
- Laws, regulations, aur compliance requirements.
- Example: Ek hospital ko medical equipment khareedne ke liye health regulations follow karne padte hain.
Supplier’s Influence:
- Suppliers ke reputation, pricing, aur delivery reliability matter karti hai.
- Example: Ek company ek trusted supplier se raw materials khareedti hai kyunki woh time pe delivery deta hai.
Technology Influence:
- New technology ya innovations buying decisions ko drive karte hain.
- Example: Ek IT company cloud-based software khareedti hai to stay updated.
Customer Influence:
- End customers ke demands organization ke buying ko affect karte hain.
- Example: Ek clothing brand eco-friendly fabrics khareedta hai kyunki customers sustainable products chahte hain.
Government Influence:
- Government contracts ya subsidies buying ko shape karte hain.
- Example: Ek construction company government projects ke liye specific materials khareedti hai.
Labour Influence:
- Employees ya unions ke demands buying ko affect karte hain.
- Example: Ek factory workers ke safety ke liye high-quality protective gear khareedti hai.

Depth: Indian organizations, especially SMEs, economic aur legal influences se bohot affect hote hain. Government policies (like GST) aur local supplier networks play a big role.

3. Analyzing Buyers’ Strengths & Negotiation Capabilities

Buyers’ Strengths:
- Knowledge: Buyers jo market, suppliers, aur products ke baare mein zyada jante hain, woh better negotiate kar sakte hain.
  - Example: Ek procurement manager jo industry trends janta hai, better deals crack karta hai.
- Purchasing Power: Bade buyers (large companies) bulk orders ke wajah se zyada discounts mang sakte hain.
  - Example: Reliance jaise bade retailers suppliers se low prices negotiate karte hain.
- Relationships: Strong supplier relationships better terms dilate hain.
  - Example: Ek company jo years se ek supplier ke saath kaam karta hai, usse flexible payment terms mil sakte hain.
Negotiation Capabilities:
- Skills: Negotiation skills (communication, bargaining) buyers ko strong banate hain.
- Market Conditions: Jab suppliers ka competition zyada hota hai, buyers zyada leverage rakhte hain.
- Information: Market prices aur competitor offers ka knowledge negotiation power deta hai.
- Example: Ek company tender process mein multiple suppliers se quotes mangti hai aur lowest bidder ke saath negotiate karti hai.
Depth: Indian businesses negotiation mein bohot aggressive hote hain, especially SMEs, jo cost-cutting pe focus karte hain. Strong negotiation skills aur market knowledge unhe competitive edge dete hain.

4. Buying Roles

What are Buying Roles?: Organizational buying mein alag-alag log different roles play karte hain. Yeh roles decision-making process ko shape karte hain.
Types of Buying Roles:
1. Initiator: Woh jo buying need identify karta hai.
  - Example: Ek factory manager notice karta hai ki purani machine slow hai aur naya equipment chahiye.
2. User: Woh jo product use karega.
  - Example: Factory workers jo nayi machine operate karenge.
3. Influencer: Woh jo opinions ya recommendations deta hai.
  - Example: Technical team jo specific machine brand suggest karta hai.
4. Decision-Maker: Woh jo final purchase decision leta hai.
  - Example: Procurement head jo budget aur supplier approve karta hai.
5. Buyer: Woh jo actual purchase karta hai (negotiates, signs contracts).
  - Example: Procurement officer jo supplier se deal final karta hai.
6. Gatekeeper: Woh jo information flow control karta hai.
  - Example: Assistant jo supplier quotes collect karta hai aur manager ko deta hai.
Depth: Indian organizations mein buying roles complex hote hain kyunki multiple departments (finance, operations, procurement) involved hote hain. Family-run businesses mein owner aksar decision-maker hota hai.

5. Market Response: The Buy Grid Model

What is it?: Buy Grid Model organizational buying situations aur decision-making stages ko combine karta hai. Yeh dikhata hai ki organizations kaise buying decisions lete hain.
Components:
- Buy Phases (Decision-Making Stages):
  1. Problem Recognition: Need identify karna (e.g., purani machine kharab ho gayi).
  2. Need Description: Specific requirements define karna (e.g., high-speed machine chahiye).
  3. Product Specification: Technical details finalize karna (e.g., machine ka power, size).
  4. Supplier Search: Potential suppliers dhundna (e.g., online research, tenders).
  5. Proposal Solicitation: Suppliers se quotes mangna.
  6. Supplier Selection: Best supplier choose karna (e.g., price, quality, delivery time).
  7. Order Routine Specification: Order details finalize karna (e.g., quantity, delivery schedule).
  8. Performance Review: Supplier aur product ka performance evaluate karna.
- Buy Classes (Types of Buying Situations):
  1. New Task: Pehli baar koi product khareedna (high involvement, zyada research).
    - Example: Ek company pehli baar cloud software khareedti hai.
  2. Modified Rebuy: Thoda change ke saath repeat purchase (moderate research).
    - Example: Ek company same supplier se naya model ka machine khareedti hai.
  3. Straight Rebuy: Routine purchase without changes (low involvement).
    - Example: Office ke liye stationery har mahine same supplier se khareedna.
Depth: Indian businesses mein straight rebuy common hai for routine items (office supplies), jabki new task buying (like technology upgrades) mein zyada time aur stakeholders involved hote hain.

6. The Organizational Buying Decision Process

Yeh process Buy Grid Model ke Buy Phases se milta-julta hai:
1. Problem Recognition: Need identify karna (e.g., production ke liye naya equipment chahiye).
2. General Need Description: Requirements define karna (e.g., machine ka size, capacity).
3. Product Specification: Detailed technical specs bananna.
4. Supplier Search: Suppliers research karna (online, trade shows, referrals).
5. Proposal Solicitation: Bids ya quotes mangna.
6. Supplier Selection: Best supplier choose karna based on price, quality, reliability.
7. Order Routine Specification: Order details final karna (delivery, payment terms).
8. Performance Review: Supplier aur product ka feedback collect karna.
Example: Ek manufacturing company naya CNC machine khareedti hai. Woh need identify karti hai (old machine slow hai), specs banati hai, suppliers se quotes leti hai, aur best supplier choose karti hai.
Depth: Indian organizations mein yeh process formal hota hai, especially large companies ya government contracts mein, jahan tenders aur compliance mandatory hote hain.

7. Buying Tasks

Buying tasks woh specific activities hain jo organization ko purchase complete karne ke liye karne padte hain:
- Identifying Needs: Kya chahiye (e.g., new software for efficiency).
- Budget Allocation: Kitna spend karna hai.
- Supplier Evaluation: Suppliers ka quality, price, aur reliability check karna.
- Negotiation: Best deal ke liye baat karna.
- Contract Management: Legal agreements aur delivery schedules handle karna.
- Post-Purchase Evaluation: Product aur supplier ka performance check karna.
Example: Ek hospital medical equipment ke liye budget set karta hai, suppliers evaluate karta hai, aur contract sign karta hai.
Depth: Indian businesses mein buying tasks structured hote hain, especially large organizations mein, jahan procurement teams dedicated hoti hain.

8. Interpersonal Influencing in Organizational Buying

What is it?: Organizational buying mein multiple log involved hote hain, aur unke interpersonal relationships aur influence decisions ko shape karte hain.
Factors:
- Power Dynamics: Senior managers ya decision-makers ka zyada influence hota hai.
  - Example: CEO ka opinion final decision pe asar dalta hai.
- Trust: Team members ke beech trust supplier selection ko affect karta hai.
  - Example: Ek manager apne trusted colleague ke recommended supplier ko prefer karta hai.
- Conflict: Alag-alag departments ke different priorities se conflict ho sakta hai.
  - Example: Finance team low cost chahta hai, lekin production team high quality.
- Persuasion: Ek team member doosron ko apne choice ke liye convince kar sakta hai.
  - Example: Technical team manager doosron ko ek specific machine ke benefits ke baare mein samjha sakta hai.
Depth: Indian organizations mein interpersonal influence strong hota hai, especially family-run businesses mein, jahan personal relationships aur trust key roles play karte hain.

Summary in Easy English

Consumerism:
- Evolution: From basic needs to luxury consumption, especially post-1990s in India.
- Definition: Movement to protect consumer rights (safety, information, choice).
- Buyers’ Rights: Safety, information, redress, etc.
- Sellers’ Rights: Fair profit, protection from fraud.
- Effects: Better quality, more choices, but also overconsumption and environmental issues.
Organizational Buying:
- Buying for business use (e.g., machinery, office supplies).
- Differs from consumer buying (bulk, formal, multiple decision-makers).
- Influences: Economic (budget), political (policies), legal (regulations), supplier, technology, customer, government, labour.
Buyers’ Strengths & Negotiation:
- Strong buyers have knowledge, purchasing power, relationships.
- Negotiation depends on skills, market conditions, and information.
Buying Roles: Initiator, user, influencer, decision-maker, buyer, gatekeeper.
Buy Grid Model: Combines buy phases (problem recognition to performance review) and buy classes (new task, modified rebuy, straight rebuy).
Buying Decision Process: Structured steps from need recognition to post-purchase review.
Buying Tasks: Identifying needs, budgeting, supplier evaluation, negotiation, etc.
Interpersonal Influencing: Power, trust, conflict, and persuasion affect decisions.