Introduction to Consumer Behavior: Meaning, Scope, Importance and Consumer Decision Process (Overview) Questions

Question 1

What is need recognition?

Accepted Answer

Need recognition is the stage where a consumer realises a gap between the desired state and the current state, creating a problem to solve.

Question 2

State any one importance of studying consumer behavior.

Accepted Answer

Studying consumer behavior helps firms design products and marketing strategies that increase customer satisfaction.

Question 3

Define consumer behavior.

Accepted Answer

Consumer behavior is the study of how individuals and groups select, buy, use and dispose products and services to satisfy needs and wants.

Question 4

What is post-purchase behavior?

Accepted Answer

Post-purchase behavior refers to consumer reactions after buying—satisfaction or dissatisfaction, repeat purchase, complaints and word of mouth.

Question 5

Differentiate between a customer and a user.

Accepted Answer

A customer buys/pays for the product, while a user actually uses the product.

Question 6

What is information search in consumer decision making?

Accepted Answer

Information search is the stage where a consumer collects information about brands and options from internal memory and external sources like friends, ads and reviews.

Question 7

Explain the scope of consumer behavior. (Any three points)

Accepted Answer

Scope of consumer behavior includes (any three):

- **Consumer decision making**: how consumers choose among alternatives.
- **Influencing factors**: psychological, social, cultural and situational influences.
- **Post-purchase behavior**: satisfaction, loyalty, complaints and word of mouth.

Thus, it covers both mental processes and actual buying/usage behavior.

Question 8

Explain the importance of consumer behavior in marketing. (Any three points)

Accepted Answer

Consumer behavior is important because it helps marketers:

- Improve **product decisions** (features, packaging, quality) based on needs.
- Create effective **promotion** (message and media) based on how consumers respond.
- Do **segmentation and targeting** to serve different consumer groups.

These lead to higher customer satisfaction and better business performance.

Question 9

Explain the 5-stage consumer decision process with a neat flow.

Accepted Answer

The **5-stage consumer decision process** is:

1) **Need recognition**
2) **Information search**
3) **Evaluation of alternatives**
4) **Purchase decision**
5) **Post-purchase behavior**

Flow (write/draw): Need → Search → Evaluate → Purchase → Post-purchase

Question 10

Differentiate between internal and external influences on consumer behavior.

Accepted Answer

Internal influences are psychological/personal factors within the consumer, while external influences come from the environment.

| Type | Examples |
|---|---|
| **Internal** | **motivation**, perception, learning, attitudes, personality |
| **External** | **culture**, family, reference groups, social class, situation |

Both together shape how consumers think and decide.

Question 11

Differentiate between need, want and demand with suitable examples.

Accepted Answer

The terms show increasing specificity and market readiness:

| Term | Meaning | Example |
|---|---|---|
| **Need** | basic requirement/problem | hunger, low phone battery |
| **Want** | need shaped by culture/preferences | pizza, power bank |
| **Demand** | want backed by ability & willingness to pay | ordering pizza / buying power bank |

Thus, marketers convert **needs → wants → demand** by creating value and affordability.

Question 12

Differentiate between customer, user and consumer with an example.

Accepted Answer

These roles may be different people:

| Role | Meaning | Example (cereal) |
|---|---|---|
| **Customer** | buyer/payer | father buys cereal |
| **User** | uses the product | child eats cereal |
| **Consumer** | end user who consumes/uses up | child consumes cereal |

Sometimes one person is all three (you buy and use your own notebook).

Question 13

Explain cognitive dissonance (buyer’s regret) and how marketers can reduce it.

Accepted Answer

**Cognitive dissonance** is the uncomfortable feeling a consumer may experience after purchase, especially for expensive/high-involvement products, when they doubt whether they made the right choice.

### Why it happens
- High price and high expectations
- Conflicting information (friends/reviews)
- Fear of better alternative ("Did I choose the right brand?")

### How marketers can reduce it
- Provide **after-sales support** and quick service.
- Send **reassurance messages** (thank you emails, usage tips).
- Offer **warranty/return policies** to reduce perceived risk.
- Encourage reviews and testimonials to strengthen confidence.

| Tool | How it helps |
|---|---|
| Warranty/returns | reduces risk |
| Follow-up communication | reassurance |

### Conclusion
Reducing dissonance improves satisfaction, repeat purchase and positive word of mouth.

Question 14

Explain the applications of consumer behavior in marketing decisions (Product, Price, Promotion, Place).

Accepted Answer

Understanding consumer behavior helps managers make better marketing mix decisions:

### Product
- Design features, quality, packaging and branding based on consumer needs and preferences.

### Price
- Set price based on **perceived value**, price sensitivity and reference price.

### Promotion
- Choose message and media that match consumer attention, beliefs and emotions.

### Place (distribution)
- Select channels consumers prefer (online/offline), ensure availability and convenience.

| Marketing decision | Consumer behavior input |
|---|---|
| Product | needs, preferences |
| Promotion | perception, attitudes |

### Conclusion
Thus, consumer behavior reduces marketing guesswork and increases customer satisfaction and sales.

Question 15

Explain the consumer decision process with a suitable example (e.g., buying a smartphone).

Accepted Answer

Example: **Buying a smartphone** using the 5-stage decision process.

1) **Need recognition**: old phone is slow/battery poor.
2) **Information search**: check online reviews, ask friends, compare prices.
3) **Evaluation of alternatives**: compare brands on battery, camera, price, warranty.
4) **Purchase decision**: select brand/store; choose EMI/discount option.
5) **Post-purchase behavior**: satisfaction if performance matches expectations; may recommend to others or complain.

Flow: Need → Search → Evaluate → Purchase → Post-purchase

### Conclusion
This example shows that consumer behavior involves both information processing and feelings after purchase.

Introduction to Consumer Behavior: Meaning, Scope, Importance and Consumer Decision Process (Overview)

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