This document provides an overview of consumer behaviour concepts including definitions of consumer behaviour, differences between consumers and customers, factors influencing consumer behaviour in India, and the consumer movement and protection in India. Some key points covered are: the meaning of consumer behaviour is defined as activities people undertake when purchasing goods for personal use; a consumer uses products while a customer purchases products; factors influencing Indian consumers include changing demographics, westernization and celebrity influence; the consumer movement originated due to issues like food shortages and adulteration and led to the establishment of consumer protection laws and agencies in India.

2. Prepared By:
Shubhada Rao P
Assistant Professor
Department of MBA
VCET, Puttur.

3. Module-1
Introduction to the study of
Consumer Behaviour

4. Meaning and definition of CB
The term Consumer Behaviour(CB) is defined
as the behaviour that consumers display in
searching for, purchasing, using, evaluating and
disposing of products and services that they
expect will satisfy their needs.
- Leon G. Schiffman & Leslie Lazar Kanuk

5. Consumer behaviour focuses on how
individuals make decisions to spend their
available resources (time, money, effort) on
consumption-related items that includes what
they buy, why they buy, when they buy it, where
they buy it, how often they buy it, how often
they use it, how do they evaluate it after the
purchase and the impact of such evaluations on
future purchases, and how do they dispose of it.

6. Consumer behaviour refers to the
actions and decision processes of
people who purchase goods and
services for personal consumption.
-James F Engel, Roger D Blackwell and
Paul W Miniard

7. Two different kinds of consuming entities: the personal
consumer and the organizational consumer.
Personal Consumer : Buys goods and services for his or her
personal use, or for household consumption or for just one
member of the family or as a gift for a friend. The products are
bought for final use by individuals, who are referred to as end
users or ultimate consumers.
Organizational Consumer :Includes profit and non-profit
businesses, government agencies (local, state, national) and
institutional (e.g. schools, hospitals, and prisons), all of which
buy products, equipment, and services in order to run their
organizations.

8. Significance of CB
•Production Policies
•Price policies
•Decision regarding channels of distribution
•Decision regarding sales promotion
•Exploiting marketing opportunities
•Consumers do not always act or react predictably
•Consumer preferences are changing and becoming
highly diversified
•Rapid introduction of new products
•Implementing the marketing concept

9. Difference between consumer and
customer
The terms "consumer" and "customer" are
often used interchangeably, but a consumer and
customer are not always the same entity. In
essence, consumers use products while
customers buy them.
Customer is a sub set of consumer

10. The term “customer” is used to refer to
someone who regularly purchases from a
particular store or company.
The term “consumer” refers to any one engaging
in any of the activities used in our definition of
CB . These are the potential purchasers of
products and services offered for sale.

11. •Customer is a sub set of consumer
•A consumer is an end user. A consumer
acquires goods and services for direct use or
ownership.
•Whereas customer can in turn resell the
products and services to the consumers

12. A customer is an individual or organization
who purchases goods, or sometimes just
browses and doesn't buy, whereas a consumer is
anyone who uses the goods that have been
purchased, or uses any products or services that
have been generated within the economy.

13. •Customer
•The term “customer” is used to refer to
someone who regularly purchases from a
particular store or company.
•Customer can in turn resell the
products and services to the
consumers. In other words, Customer
is a person who uses the product for
selling purpose
•Customer purchases the product or
service
•A customer is an individual or organization
who purchases goods, or sometimes just
browses and doesn't buy
•Consumer
•The term “consumer” refers to any one
engaging in any of the activities used in our
definition of CB . These are the potential
purchasers of products and services offered for
sale.
•A consumer is an end user. A consumer
acquires goods and services for direct use
or ownership. In other words,Consumer is
the person who uses the product for their
personal consumption
•Consumer uses the product
• A consumer is anyone who uses the goods that
have been purchased, or uses any products or
services that have been generated within the
economy

14. So, therefore if a man was to go to a shop and
purchase a bar of chocolate, and his wife was
the one to eat it, the man would be the
customer (as he bought the product) and his
wife would be the consumer (as she used the
product).

15. A consumer may also be a customer and
a customer can also be a consumer, but
situations occur where this is not the case.
In general, your marketing efforts should
be geared toward the consumer, rather
than the customer.

16. Consumers and customers are very
important people in maintaining the
balance and profit of one’s company.

17. Consumer Motives
Consumer has a motive for purchasing a particular product. Motive is a
strong feeling, urge, instinct, desire or emotion that makes the buyer to
make a decision to buy. Buying motives thus are defined as ̳those
influences or considerations which provide the impulse to buy, induce
action or determine choice in the purchase of goods or service . These
motives are generally controlled by economic, social, psychological
influences etc .
Motives which Influence Purchase Decision
The buying motives may be classified into two:
i. Product Motives
ii. Patronage Motives

18. i. Product Motives
Product motives may be defined as those
impulses, desires and considerations which
make the buyer purchase a product. These
may still be
classified on the basis of nature of
satisfaction:
a) Emotional Product Motives
b) Rational Product Motives

19. • Emotional Product Motives are those impulses
which persuade the consumer on the basis of
his emotion. The buyer does not try to reason
out or logically analyse the need for purchase.
He makes a buying to satisfy pride, sense of
ego, urge to initiate others , and his desire to be
unique.
• Rational Product Motives are defined as those
impulses which arise on the basis of logical
analysis and proper evaluation. The buyer
makes rational decision after chief evaluation of
the purpose, alternatives available, cost benefit,
and such valid reasons.

20. ii. Patronage Motives:
Patronage motives may be defined as consideration or
impulses which persuade the buyer to patronage specific
shops.
Just like product motives, patronage motives can also
be grouped as emotional and rational.
1. Emotional Patronage Motives are those that
persuades a customer to buy from specific shops,
without any logical reason behind this action. He may
be subjective for shopping in his favourite place.
2. Rational Patronage Motives are those which arise
when selecting a place depending on the buyer
satisfaction that it offers a wide selection, it has latest
models, offers good after sales service etc .

21. Nature and Characteristics of Indian Consumers
1. Young Demographics
2. Aspirational consumer
3. Value Consciousness
4. Networked consumer
5. Socially Conscious
6. Brand Switchers
7. Thinking beyond categories
8. Religious Diversity
9. Diversity in dress and food habits
10. Working women
11. Conservatives
12. Rising purchasing power

22. Factors influencing Indian consumers:
1. Changing Demographics
2. Smaller Households
3. Increasing awareness
4. Westernisation
5. Organised retail stores
6. Celebrity influence
7. Quality-oriented outlets
8. Freebies
9. Product colour, size, design and shape
10. Changes in saving and investment patterns

23. Consumer Movement

24. In India, the consumer movement as
a "social force" originated with the
necessity of protecting and promoting
the interests of consumers against
unethical and unfair trade practices.

25. Food shortage, black marketing,
adulteration of food-products, high
prices, etc. gave birth to the consumer
movement in an organized form in the
1960s.

26. At the initial stage, consumer
organization were largely engaged in
writing articles and holding protests. Thus,
they formed consumer groups to look into
the malpractices in ration shops and
overcrowding in the road passenger
transport.

27. Consumerism
• In the word Consumerism, “ Consumer” means the
user and “ism” means movement, and hence,
consumer movement popularly known as consumerism.
•It is an organised and collective movement of
consumers.
•The movement seeking to protect and inform
consumers by requiring such practices as honest
packaging and advertising, product guarantees, and
improved safety standards.
•Movement and policies aimed at regulating products,
service, methods and standards of manufacturers,
sellers and advertisers in the interests of the buyer.

29. Consumerism is an organized
movement of citizens and government
to protect the rights and increase the
power of buyers in relation to sellers.

31. Benefits of Consumerism
1.Consumer education
2.Consumer Groups can liaison between
Government & Industry
3.Product Research & Information to Consumer
4.Inculcate Honesty, Responsiveness &
Responsibility on to Manufacturers & Marketers.
5.Move towards Societal Concept of Marketing
6.Improvement in supply
7.Product rating

32. Obstacles of consumerism
1. Lack of leadership
2. Illiteracy
3. Difficulty in disseminating consumer
education
4. Cumbersome legal process
5. Lack of effective implementation of
legislative measures

33. Consumer Movement in India
India is a developing economy.
Not all Indian consumers are well educated.
Consumers are often exploited, misled by
deceptive advertisements, packaging poor after
sales service, adulteration, price collusion and so
on.
Liberalization and competition
Survival of the fittest

34. More, recently, India witnessed an upsurge in
the number of consumer groups. This is because
of more and more cases of consumer
exploitation by the private traders. The activities
of various consumer forums forced the
government to enact the Consumer Protection
Act,1986 ,popularly known as COPRA .

35. Consumer Groups in India
Voluntary Organization in Interest of Consumer Education (VOICE)
Consumer Care Society
Bombay Telephone Users' Association
Citizen consumer and Civic Action Group (CAG)
Grahak Sahayak
Consumer Guidance Society of India
All India Chamber of Consumers (AICOC)
Consumer Coordination Council
Akhil Bhartiya Upbhokta Congress
Consumer Unity and Trust Society
Consumer Rights Education & Awareness Trust (CREAT)
Rajkot Saher/Jilla Grahak Suraksha Mandal
Upbhokta Sanrakchhan & Kalyan Samiti
Upbhokta Margdarshan Samiti "UMAS"

36. Anti Cigarette Campaigns –
Consumer Group & Govt. Initiative

38. Reasons for the rise of consumerism
1.Low literacy levels and lack of awareness of rights
encourages businessmen to be indifferent to
consumers
2.Backwardness
3.Ignorance
4.Lack of education and information
5.Indian consumers get carried away by clever
advertising
6.Imbalance in demand and supply of commodities
leading to hoarding, black marketing, profiteering.
7.Vastness of the country

40. Consumer Protection Act 1986
(COPRA)
It is an important legislation passed by the
Government of India to ensure that a proper system is
established for the protection of consumer rights and
the redressing of consumer disputes.
The Act Applies to the whole of India except the state
of Jammu and Kashmir and as by central Government it
applies to all goods and services.

41. Objectives :
1. To protect the interests of the consumers
2. To protect the rights of the consumers regarding
(a) Marketing goods and services
(b) Quality of goods and services
(c) Price of the goods and services
3. To protect the consumer against unfair trade practices
4. To set up consumer protection council at the centre and
the state level
5. To provide speedy and simple redressal to consumer
disputes by
(a) giving reliefs
(b) compensation to consumers

42. Consumer Protection Council
Central Consumer Protection Council (Sec 4
to Sec 8)
State Consumer Protection Council Sec 7 to
Sec8)
Consumer Redressal Agencies (Sec 9 to
Sec27)
1. A District Forum
2. A State Commission
3. A National Commission

43. Rights and Responsibilities of
consumers in India
Although businessman is aware of his
social responsibilities even then we come
across many cases of consumer
exploitation.
That is why government of India
provided following rights to all the
consumers under the Consumer Protection
Act:

44. 1. Right to Safety
2. Right to Information
3. Right to Choose
4. Right to be Heard or Right to Representation
5. Right to Seek Redressal
Case: Spring Meadows Hospital V/s Harjot Ahluwalia
6. Right to Consumer Education
7. Right to Healthy Environment
8. Right to basic needs

45. 1. Right to Safety

46. 1. Right to Safety
According to the Consumer Protection Act 1986,
the consumer right is referred to as ‘right to be
protected against marketing of goods and services
which are hazardous to life and property’. It is
applicable to specific areas like healthcare,
pharmaceuticals and food processing, this right is
spread across the domain having a serious effect
on the health of the consumers or their well being
viz. Automobiles, Housing, Domestic Appliances,
Travel etc. When there is violation of the right then
there occur medical malpractice lawsuits in the
country

47. 2. Right to information

48. 2. Right to information
The right to information is defined as ‘the right to be informed about the
quality, quantity, potency, purity, standard and price of goods or services,
as the case may be so as to protect the consumer against unfair trade
practices’ in the Consumer Protection Act of 1986. In the market place of
India, consumers get information by two ways namely advertising and
word of mouth however these sources are considered to be unreliable
but still this word of mouth is quite common here. Because of this, the
Indian consumers hardly have precise and complete information for
assessing the true value, safety, suitability, reliability of any product.
Usually the hidden costs can be found, lack of suitability, quality
problems and safety hazards only after the purchase of the product.
There is another right claimed by Indian government, this right must
ideally make sure that all consumable products have been labelled in a
standard manner containing the cost, quantity, the ingredients and
instructions given to use the product safely.

49. 3. Right to Choose

50. 3. Right to Choose
The definition of Right to Choose as per the
Consumer Protection Act 1986 is ‘the right to
be assured, wherever possible, to have
access to a variety of goods and services at
competitive prices’. For regulating the market
place, there is just one factor required and
that is competition.The existence of cartels,
oligopolies and monopolies prove to be
counterproductive to consumerism.

51. 4. Right to be Heard or Right to Representation

52. 4. Right to be Heard or Right to
Representation
As stated in the Consumer Protection Act 1986, ‘the
right to be heard and to be assured that consumer's
interests will receive due consideration at
appropriate forums’ is the definition of the right to be
heard. This right helps to empower the consumers
of India for putting forward their complaints and
concerns fearlessly and raising their voice against
products or even companies and ensure that their
issues are taken into consideration as well as
handled expeditiously.

53. 5. Right to seek redressal

54. 5. Right to seek redressal
The right to seek redressal against unfair trade practices or restrictive
trade practices or unscrupulous exploitation of consumers’ is referred to
as the right to redressal according to the Consumer Protection Act 1986.
The government of India has been bit more successful with regard to this
right. The Consumer courts like District Consumer Disputes Redressal
Forums at district level, State Consumer Disputes Redressal
Commissions and National Consumer Disputes Redressal Commissions
have been incorporated with the help of the consumer protection act.
These consumer grievance redressal agencies have fiduciary as well as
geographical jurisdictions which address consumer cases between
businesses and consumers.
About 20 lakhs Consumer cases are heard in the district consumer
forum, and around one crore can be heard in the state consumer court
while more than one crore cases are heard at national consumer court.

55. 6. Right to Consumer Education

56. 6. Right to Consumer Education
The right of every Indian citizen to have education on
matters regarding consumer protection as well as about
her/his right is regarded as the last right provided by the
Consumer Protection Act 1986. The right makes sure that
the consumers in the country have informational programs
and materials which are easily accessible and would enable
them to make purchasing decisions which are better than
before. Consumer education might refer to formal education
through college and school curriculums as well as consumer
awareness campaigns being run by non- governmental and
governmental agencies both. Consumer NGOs, having little
endorsement from the government of India, basically
undertake the task of ensuring the consumer right
throughout the country

58. Means right to a physical environment that
will enhance quality of life. It involves
protection against environmental dangers
over which individuals have no control.
7.Right to Healthy Environment

60. 8. Right to Basic needs

63. Various efforts have been made by
government and non-government
organizations to protect the interests of
consumers but exploitation of consumer
will stop only when consumer himself will
come forward to safeguard his own
interest. Consumers have to bear some
responsibilities which are given below

64. Responsibilities of a Consumer
Responsibility of self help
Proof of transactions
Proper Claim
Proper use of Product or Service

65. Proper use of Products/ Services
•Some consumers, especially during the
guarantee period, make rough use of the
product, thinking that it will be replaced during
the guarantee period.
•This is not fair on their part. They should always
use the products properly.

66. Other responsibilities of the
consumer

67. 1. Consumer must Exercise his Right
2. Cautious Consumer
3.Filing Complaints for the Redressal of
Genuine Grievances
4. Consumer must be Quality-Conscious
5. Do not be carried away by
Advertisements

68. 6. Insist on Cash Memo
7. Form consumer societies which
could play an active part in educating
consumers and safeguarding their
interest.
8. Respect the environment; avoid
waste littering and contribution to
pollution.

69. 9. Discourage black marketing,
hoarding and choose only legal goods
and services.
10. Be aware of variety of goods and
services available in market.

70. The movement seeking to protect
and inform consumers by requiring such
practices as honest packaging and
advertising, product
guarantees, and improved safety standards.

71. THANK YOU