Page 8 - DMGT506_CONSUMER_BEHAVIOUR

Unit 1: Introduction to Consumer Behaviour

The term consumer is used for both personal consumers and organisational consumers and Notes
represents two different kinds of consuming entities. The personal consumer buys goods and
services for her or his personal use (such as cigarettes), or for household consumption (such as
sugar, furniture), or for just one member of the family (such as a pair of shoes for the son), or a
birthday present for a friend (such as a pen set). In all these instances, the goods are bought for
final use, referred as “end users” or “ultimate consumers.”
The other category of consumer is the organisational consumer, which includes profit and
not-for-profit organisations. Government agencies and institutions (such as local or state
government, schools, hospitals etc.) buy products, equipment and services required for running
these organisations. Manufacturing firms buy raw materials to produce and sell their own
goods. They buy advertising services to communicate with their customers. Similarly, advertising
service companies buy equipment to provide services they sell. Government agencies buy
office products needed for everyday operations. The focus of this book is on studying behaviours
of individual consumers, groups and organisations who buy products, services, ideas, or
experiences etc. for personal, household, or organisational use to satisfy their needs.

Anyone who regularly makes purchases from a store or a company is termed as “customer” of
that store or the company. Thus a customer is typically defined in terms of specific store or
company.

Caselet The Indian Consumer

he Indian consumers are noted for the high degree of value orientation. Such
orientation to value has labeled Indians as one of the most discerning consumers in
Tthe world. Even, luxury brands have to design a unique pricing strategy in order to
get a foothold in the Indian market.
Indian consumers have a high degree of family orientation. This orientation in fact, extends
to the extended family and friends as well. Brands with identities that support family
values tend to be popular and accepted easily in the Indian market.
Indian consumers are also associated with values of nurturing, care and affection. These
values are far more dominant that values of ambition and achievement. Product which
communicate feelings and emotions gel with the Indian consumers.

Apart from psychology and economics, the role of history and tradition in shaping the
Indian consumer behavior is quite unique. Perhaps, only in India, one sees traditional
products along side modern products. For example, hair oils and tooth powder existing
with shampoos and toothpaste.

Source: edms.matrade.gov.my/...nsf/.../PMSChennai05-ConsumerBehavior_1.doc
1.3 Buyers and Users

The person who buys a particular product may not necessarily be the user, or the only user of
this product. Likewise, it is also true that the person who purchases the product may not be the
decision-maker. For example, the father buys a bicycle for his school going son (the son is the
user), or he buys a pack of toothpaste (used by the entire family), or the mother is the decision
maker when she buys a dress for her three-year-old daughter. The husband and wife together
may buy a car (both share the decision). It is clear that in all cases buyers are not necessarily the
users of products they buy. They also may not be the persons who make the product selection
decisions.

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