62 Consumer and Industrial Buying Behaviour

62.1 What is Consumer Behaviour?

Consumer Behaviour (CB) is the study of how individuals, groups and organisations select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants — Philip Kotler, Solomon, Schiffman-Kanuk.

Working definitions

Kotler: “The study of the processes involved when individuals select, purchase, use or dispose of products, services, ideas or experiences.”
Schiffman & Kanuk: “The behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products and services.”
Engel-Blackwell-Miniard: “Those activities directly involved in obtaining, consuming and disposing of products and services, including the decision processes that precede and follow these actions.”
Loudon & Della Bitta: “The decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services.”

62.2 Why Study Consumer Behaviour?

Importance

Inform STP (Topic 58).
Design effective 4 Ps.
Predict response to marketing stimuli.
Build customer satisfaction and loyalty.
Inform regulation (consumer protection).
Compete in global markets.
Discover unmet needs.

62.3 Factors Influencing Consumer Behaviour

Kotler’s four-factor model

Class	Variables
Cultural	Culture · Sub-culture · Social class
Social	Reference groups · Family · Roles & Status
Personal	Age · Life cycle stage · Occupation · Economic situation · Lifestyle · Personality
Psychological	Motivation · Perception · Learning · Beliefs and attitudes

62.3.1 Cultural Factors

Culture = the set of basic values, perceptions, wants and behaviours learned by a society. Key Indian sub-cultures: religion, language, caste, region.

62.3.3 Personal Factors — Family Life Cycle

(Wells-Gubar 1966 — Topic 58).

62.4 Psychological Factors

62.4.1 Motivation Theories

Motivation theories applied to CB

Maslow’s Need Hierarchy (1943) — physiological → safety → social → esteem → self-actualisation (+ self-transcendence later).
Freud’s Psychoanalytic Theory — unconscious motivations; symbolism.
Herzberg’s Two-Factor Theory — hygiene + motivators.
McGuire’s psychological motives — 16 motives.
VALS — values, attitudes, lifestyles (SRI, Mitchell 1978).
Means-End Chain Theory (Gutman 1982).

62.4.2 Perception

Perception = process of selecting, organising and interpreting stimuli. Key concepts:

Perception concepts

Selective attention — notice 1-10% of 5000 daily ads.
Selective distortion — fit incoming info to existing beliefs.
Selective retention — remember favourable info.
Subliminal perception — below conscious threshold.
Gestalt principles — closure, figure-ground, proximity, similarity.
Weber’s Law — JND (Just Noticeable Difference).
Adaptation Level Theory — Helson.

62.4.3 Learning

Theories of learning applied to CB

Classical Conditioning (Pavlov) — associative.
Operant / Instrumental Conditioning (Skinner) — reinforcement.
Cognitive Learning — problem solving, insight.
Observational / Social Learning (Bandura 1977).
Drive · Cue · Response · Reinforcement — Hullian learning model.

62.4.4 Attitudes — Tri-Component Model

ABC model of attitude

Affective (A) — feelings, emotions.
Behavioural (B) — tendency to act.
Cognitive (C) — beliefs, knowledge.

Attitude models

Fishbein Multi-Attribute Model.
Theory of Reasoned Action (TRA) — Fishbein & Ajzen (1975).
Theory of Planned Behaviour (TPB) — Ajzen (1991).
Elaboration Likelihood Model (ELM) — Petty & Cacioppo (1986) — central vs peripheral routes.
Cognitive Dissonance Theory — Leon Festinger (1957).

62.5 Consumer Decision-Making Process

flowchart LR
  PR[1. Problem<br/>Recognition] --> IS[2. Information<br/>Search]
  IS --> EA[3. Evaluation of<br/>Alternatives]
  EA --> PD[4. Purchase<br/>Decision]
  PD --> PB[5. Post-Purchase<br/>Behaviour]
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

Five-stage decision process (Engel-Kollat-Blackwell, Kotler)

Problem / Need Recognition.
Information Search — internal + external.
Evaluation of Alternatives — evaluative criteria, evoked set.
Purchase Decision — chosen alternative.
Post-Purchase Behaviour — satisfaction or dissonance.

Evoked / Consideration Set

Howard-Sheth — the consumer’s evoked set = brands actively considered, drawn from total set → awareness set → consideration set → choice set → final decision.

62.6 Types of Buying Behaviour

Assael’s four types of consumer buying behaviour (1987)

Type	Involvement	Brand differences
Complex Buying	High	Significant
Dissonance-Reducing	High	Few
Variety-Seeking	Low	Significant
Habitual Buying	Low	Few

62.7 Models of Consumer Behaviour

Major CB models

Model	Author
Black Box / Stimulus-Response	Pavlov-influenced
Howard-Sheth Model	Howard & Sheth (1969)
Engel-Kollat-Blackwell (EKB)	1968; later Engel-Blackwell-Miniard
Nicosia Model	Francesco Nicosia (1966)
Andreasen Model	Alan Andreasen (1965)
Sheth Family Decision-Making	Jagdish Sheth (1974)
Bettman’s Information-Processing	James Bettman (1979)
Solomon ABC	Michael Solomon

62.8 Industrial / Organisational Buying Behaviour

Industrial Buying = the decision-making process by which formal organisations establish the need for purchased products and services, identify and evaluate alternative brands and suppliers — Webster & Wind (1972).

62.8.1 Consumer vs Industrial Buying

Consumer vs Industrial

Dimension	Consumer	Industrial
Buyers	Many	Few
Order size	Small	Large
Decision-making unit	Individual / family	Buying Centre
Demand	Direct	Derived
Negotiation	Less	Extensive
Buyer-seller relationship	Arms-length	Close, long-term
Geographic concentration	Diffuse	Often concentrated
Buyer behaviour	Emotional	More rational

62.8.2 The Buying Centre (Webster-Wind)

Six buying-centre roles

Initiators — propose the purchase.
Influencers — define specifications.
Deciders — make the final choice.
Approvers — authorise.
Buyers — handle purchasing.
Users — actually use the product.
Gatekeepers — control info flow.

62.8.3 Types of Buying Situations — Robinson-Faris-Wind (1967)

Three buy-classes (BUYGRID)

New Task — first-time purchase.
Modified Rebuy — change in specs / supplier.
Straight Rebuy — routine reorder.

62.8.4 Webster-Wind General Model (1972)

Four sets of variables influence org buying: Environmental · Organisational · Interpersonal · Individual.

62.8.5 Sheth Model of Industrial Buyer Behaviour (1973)

Four factors:

Sheth’s industrial buyer model

Psychological World of decision-makers.
Conditions precipitating joint decisions.
Process of joint decision-making.
Situational factors.

62.9 Stages in Industrial Buying — Robinson-Faris-Wind

Eight stages (BUYGRID)

Problem recognition.
General need description.
Product specification.
Supplier search.
Proposal solicitation.
Supplier selection.
Order-routine specification.
Performance review.

62.10 Modern Trends in CB

Twelve modern CB trends

Hyper-personalisation with AI.
Behavioural economics — Kahneman, Thaler nudges.
Customer journey mapping.
Multi-screen, omnichannel behaviour.
Social listening and sentiment analysis.
Influencer-driven buying.
ESG / values-based consumption.
Quick-commerce impulse buying.
Subscription / experience economy.
D2C direct relationships.
Neuromarketing — fMRI, eye-tracking.
Gen-Z and Alpha consumer studies.

62.11 Practice Questions

Q 01StagesEasy

The first stage of consumer decision-making is:

AProblem recognition
BInformation search
CPurchase
DEvaluation

View solution

Correct Option: A

Problem recognition initiates the process.

Q 02MaslowEasy

Maslow's need hierarchy was proposed in:

A1943
B1954
C1962
D1969

View solution

Correct Option: A

1943 — *A Theory of Human Motivation*.

Q 03DissonanceMedium

Cognitive Dissonance Theory (1957) is by:

ALeon Festinger
BBandura
CAjzen
DHoward

View solution

Correct Option: A

Leon Festinger (1957).

Q 04Howard-ShethMedium

The Howard-Sheth model of consumer behaviour was published in:

A1966
B1969
C1972
D1979

View solution

Correct Option: B

John Howard & Jagdish Sheth, *The Theory of Buyer Behavior* (1969).

Q 05AssaelHard

Assael's four-type buying behaviour matrix uses which two axes?

AInvolvement × Brand differences
BPrice × Quality
CInformation × Trust
DEmotion × Reason

View solution

Correct Option: A

Involvement (High/Low) × Brand differences (Significant/Few).

Q 06Webster-WindHard

The "Buying Centre" concept is by:

AWebster & Wind (1972)
BHoward & Sheth
CRobinson-Faris-Wind
DKotler

View solution

Correct Option: A

Frederick Webster & Yoram Wind (1972).

Q 07BUYGRIDHard

The BUYGRID framework's three buy-classes are:

ANew Task, Modified Rebuy, Straight Rebuy
BCash, Credit, Lease
CSmall, Medium, Large
DDirect, Indirect, Partner

View solution

Correct Option: A

Robinson-Faris-Wind (1967).

Q 08DerivedMedium

Industrial demand is typically:

ADirect
BDerived
CInelastic only
DElastic only

View solution

Correct Option: B

Industrial demand derives from consumer demand.

Q 09ELMHard

Elaboration Likelihood Model (ELM, 1986) is by:

APetty & Cacioppo
BFishbein & Ajzen
CFestinger
DBandura

View solution

Correct Option: A

Richard Petty & John Cacioppo (1986); central vs peripheral routes.

Q 10WeberHard

Weber's Law deals with:

AJust Noticeable Difference
BMaximum price
CBureaucracy
DSubliminal ads

View solution

Correct Option: A

JND proportional to stimulus intensity.

Q 11TPBHard

Theory of Planned Behaviour (TPB) was developed in 1991 by:

AIcek Ajzen
BFishbein
CFestinger
DPetty

View solution

Correct Option: A

Icek Ajzen (1991); extends TRA with perceived behavioural control.

Q 12ABCMedium

ABC tri-component attitude model: A · B · C stand for:

AAffective · Behavioural · Cognitive
BAction · Brand · Choice
CAwareness · Belief · Commitment
DAttention · Behaviour · Conviction

View solution

Correct Option: A

Affective · Behavioural · Cognitive.

Q 13Buying Centre rolesMedium

Which is NOT a buying-centre role?

AInfluencer
BDecider
CGatekeeper
DCompetitor

View solution

Correct Option: D

Roles: Initiators · Influencers · Deciders · Approvers · Buyers · Users · Gatekeepers.

Q 14NicosiaHard

The Nicosia model of consumer behaviour (1966) was developed by:

AFrancesco Nicosia
BJohn Howard
CJames Engel
DAlan Andreasen

View solution

Correct Option: A

Francesco Nicosia (1966).

Q 15High involvementMedium

Buying a car typically involves:

AHabitual buying
BComplex buying
CVariety-seeking
DImpulse buying

View solution

Correct Option: B

High involvement + significant brand differences = complex buying.

Q 16Opinion leaderEasy

An "opinion leader" is best understood as:

AA celebrity influencer
BA person whose views influence others in a reference group
CA senior executive
DA focus-group moderator

View solution

Correct Option: B

Two-step flow of communication (Katz-Lazarsfeld 1955).

Q 17Evoked setMedium

The "Evoked Set" refers to:

AAll brands in a category
BBrands actively considered by the consumer
CBrands the consumer rejects
DPast purchases

View solution

Correct Option: B

Howard-Sheth — actively considered subset.

Q 18VALS authorMedium

VALS framework was developed at SRI by:

AArnold Mitchell
BHoward
CSolomon
DEngel

View solution

Correct Option: A

Arnold Mitchell (1978).

Q 19Buying situationMedium

A routine reorder of stationery is a:

ANew Task
BModified Rebuy
CStraight Rebuy
DComplex Buy

View solution

Correct Option: C

Straight Rebuy — same product, same supplier.

Q 20Match modelsHard

Match:

(i)	Howard-Sheth	(a)	1966
(ii)	Nicosia	(b)	1972
(iii)	EKB	(c)	1968
(iv)	Webster-Wind	(d)	1969

A(i)-(d), (ii)-(a), (iii)-(c), (iv)-(b)
B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
C(i)-(b), (ii)-(c), (iii)-(d), (iv)-(a)
D(i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)

View solution

Correct Option: A

Howard-Sheth 1969; Nicosia 1966; EKB 1968; Webster-Wind 1972.

62.11.1 Advanced Format Questions

AR 1Assertion-ReasonHard

A: EKB model treats buying as a problem-solving process.
R: Engel-Kollat-Blackwell decompose decisions into recognition, search, evaluation, purchase, post-purchase.

ABoth true; R explains A
BBoth true; R does not explain A
CA true, R false
DA false, R true

View solution

Correct Option: A

S 1Statement-basedMedium

B2B buying centre roles: (i) User. (ii) Influencer. (iii) Decider. (iv) Gatekeeper.

AAll four (+ Buyer, Initiator)
B(i) and (ii) only
C(iii) and (iv) only
D(i), (ii), (iii) only

View solution

Correct Option: A

S 2Statement-basedHard

Consumer-behaviour models: (i) Howard-Sheth. (ii) Nicosia. (iii) EKB. (iv) Bettman.

AAll four
B(i) and (ii) only
C(iii) and (iv) only
D(i), (ii), (iii) only

View solution

Correct Option: A

62.12 Quick Recall

Quick recall

CB definitions: Kotler · Schiffman-Kanuk · Engel-Blackwell-Miniard · Loudon-Della Bitta.
Four factors (Kotler): Cultural · Social · Personal · Psychological.
Reference groups: Primary · Secondary · Membership · Aspirational · Dissociative · Opinion leaders. Two-step flow (Katz-Lazarsfeld 1955).
Motivation theories: Maslow (1943) · Freud · Herzberg · McGuire · VALS (Mitchell SRI 1978) · Means-End Chain (Gutman 1982).
Perception: Selective attention/distortion/retention · Subliminal · Weber’s Law (JND) · Gestalt principles.
Learning: Classical (Pavlov) · Operant (Skinner) · Cognitive · Social (Bandura) · Drive-Cue-Response-Reinforcement.
Attitudes — ABC: Affective · Behavioural · Cognitive.
Attitude models: Fishbein · TRA (Fishbein-Ajzen 1975) · TPB (Ajzen 1991) · ELM (Petty-Cacioppo 1986) · Cognitive Dissonance (Festinger 1957).
5-stage process: Problem recognition · Information search · Evaluation · Purchase · Post-purchase.
Evoked set — actively considered (Howard-Sheth).
Assael’s 4 types (1987): Complex · Dissonance-reducing · Variety-seeking · Habitual.
CB models: Howard-Sheth (1969) · Nicosia (1966) · EKB (1968) · Andreasen · Sheth Family · Bettman Info Processing.
Industrial vs consumer: fewer buyers, larger orders, buying centre, derived demand, close relationships.
Buying Centre (Webster-Wind 1972) roles: Initiator · Influencer · Decider · Approver · Buyer · User · Gatekeeper.
BUYGRID (Robinson-Faris-Wind 1967): New Task · Modified Rebuy · Straight Rebuy.
Webster-Wind 4 variable sets: Environmental · Organisational · Interpersonal · Individual.
Sheth (1973) industrial model.
8 stages of industrial buying.
Modern trends: hyper-personalisation · behavioural economics · journey mapping · omnichannel · social listening · influencer · ESG · quick-commerce · subscription · D2C · neuromarketing · Gen-Z.

62.1 What is Consumer Behaviour?

62.2 Why Study Consumer Behaviour?

62.3 Factors Influencing Consumer Behaviour

62.3.1 Cultural Factors

62.3.2 Social Factors — Reference Groups

62.3.3 Personal Factors — Family Life Cycle

62.4 Psychological Factors

62.4.1 Motivation Theories

62.4.2 Perception

62.4.3 Learning

62.4.4 Attitudes — Tri-Component Model

62.5 Consumer Decision-Making Process

62.6 Types of Buying Behaviour

62.7 Models of Consumer Behaviour

62.8 Industrial / Organisational Buying Behaviour

62.8.1 Consumer vs Industrial Buying

62.8.2 The Buying Centre (Webster-Wind)

62.8.3 Types of Buying Situations — Robinson-Faris-Wind (1967)

62.8.4 Webster-Wind General Model (1972)

62.8.5 Sheth Model of Industrial Buyer Behaviour (1973)

62.9 Stages in Industrial Buying — Robinson-Faris-Wind

62.10 Modern Trends in CB

62.11 Practice Questions

62.11.1 Advanced Format Questions

62.12 Quick Recall