Consumer Behaviour

Consumer buying is done by individuals or households for personal consumption, while organizational buying is done by firms, institutions or government to run operations or resell.

Consumer behaviour 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, and of the mental, emotional and social processes that influence these actions.

Problem recognition is the first stage of the buying decision. It occurs when a consumer perceives a gap between the actual state (current situation) and the desired state (ideal situation) that is large enough to trigger action.

It can be caused by depletion of stock, dissatisfaction with a product, changed circumstances, new needs or wants, related purchases, or marketing stimuli such as advertising. For example, a student whose laptop becomes too slow for classes recognizes the need for a new one.

Consumer buying can be classified by the level of involvement and the extent of decision making.

• Routine (habitual) buying: frequent, low-cost, low-involvement purchases such as salt, soap or milk, made with little thought.
• Limited problem solving: the consumer knows the product class but not the brand, so does a small amount of search (for example a new snack or shampoo).
• Extensive problem solving: high-priced, risky, infrequent purchases such as a house, motorbike or laptop, involving thorough search and evaluation.
• Impulse buying: unplanned purchases made on the spot due to a sudden urge or in-store stimuli.
• Variety seeking and brand loyal buying: buying a different brand for variety, or repeatedly buying the same brand out of loyalty.

Search for information can be internal (from memory) or external (from the environment).

Both are non-compensatory decision rules, in which a weakness on one attribute cannot be offset by strength on another.

Post-purchase dissonance is the doubt a buyer feels after a purchase. It can be reduced by the following remedies.

• Seeking supporting information: reading advertisements and reviews that confirm the choice is good.
• Avoiding negative information or discounting it.
• Rationalizing the decision: emphasizing the advantages of the chosen brand and the drawbacks of rejected ones.
• Returning or exchanging the product where a policy allows it.
• Seeking reassurance from friends, family or other owners.
• Marketer's role: offering warranties and money-back guarantees, follow-up calls, thank-you messages, after-sales service and reassuring advertising for existing buyers.

Consumer motivation arises when a need is aroused and drives behaviour toward a goal. Its main sources are:

• Physiological (biological) needs: hunger, thirst, sleep, shelter and health.
• Psychological needs: security, love and belonging, esteem, status, achievement and self-actualization.
• Emotional sources: moods, fear, pleasure, affection and pride.
• Cognitive sources: the desire for information, curiosity, and the need to solve problems.
• Social and cultural sources: family, reference groups, social class and culture.
• Marketing stimuli: advertising, price promotions, displays and product features that arouse needs.

Culture is the set of shared values, beliefs, customs and norms learned by members of a society. It is the broadest influence on consumer behaviour.

• It shapes needs and wants, and what is seen as acceptable to buy, for example food, dress and festival items.
• It affects values such as family orientation, religion, respect for elders and attitude toward saving or showing off.
• It influences product use and meaning, such as colours, symbols, and gifts for Dashain and Tihar.
• It affects how consumers respond to advertising, language, humour and brand names.
• It influences buying roles in the family and the speed of accepting new products.

Marketers must therefore adapt products, promotion and distribution to the culture of their target market.

Consumer information sources are the channels from which consumers get the information needed to solve a buying problem. They are of two broad kinds: internal (memory) and external.

1. Internal sources

The consumer's own memory of past experience, knowledge, attitudes and previous use of brands. It is the first source consulted, especially for routine purchases.

2. External sources

• Personal sources: family, friends, neighbours and colleagues. They are trusted, and word of mouth is often the most influential source.
• Commercial (marketer-dominated) sources: advertising, salespeople, dealers, packaging, displays, brochures and company websites. They give the most information but are viewed as biased.
• Public (neutral) sources: mass media reports, consumer rating organizations, government agencies, independent reviews and ratings.
• Experiential sources: handling, examining or trying the product, for example a test drive, free sample or trial.
• Online and social media sources: search engines, reviews, blogs, social networks and comparison sites.

Marketing implication: marketers should make information available at all these points, encourage positive word of mouth, and give samples and reliable details so that consumers can form favourable evaluations.

Evaluative criteria are the standards or attributes, such as price, quality, brand, style, features, warranty or country of origin, that consumers use to compare and judge alternative products or brands. They express the benefits the consumer wants and the costs he or she is willing to bear, and they are shaped by needs, values, lifestyle and past experience. For example, when buying a smartphone, criteria may be battery life, camera, price and brand.

Measurement of evaluative criteria

Marketers need to know which criteria are used, how each brand is judged on them, and how important each is. The methods are:

1. Direct questioning: asking consumers which attributes they consider when choosing.
2. Indirect techniques: projective methods, such as sentence completion or asking what a typical buyer would consider, used when consumers cannot or will not state their reasons.
3. Attribute rating and importance scales: consumers rate each brand on every attribute (for example on a 1 to 5 scale) and rate the importance of each attribute.
4. Determinant attribute analysis: finding the attributes that actually differentiate brands and drive the choice, rather than attributes that are important but alike across brands.
5. Conjoint analysis and multi-attribute models: estimating the value placed on combinations of attributes, for example the Fishbein model, where attitude = sum of (importance weight x belief score).

The results guide positioning, product design, pricing and promotion.

Product disposition is what consumers do with a product, or what remains of it, when it no longer serves its original purpose. It is the last stage of the consumption process and has economic, social and environmental consequences.

Methods of disposition

1. Keep it: store it, use it for another purpose (convert), or retain it for sentimental reasons.
2. Temporarily dispose of it: lend it or rent it out to others.
3. Permanently dispose of it:
   • Give away: donate to relatives, friends or charities.
   • Sell: to second-hand dealers, through online marketplaces, garage sales or exchange offers.
   • Trade or exchange: swap for a new product, as with old mobile phones or vehicles.
   • Throw away (discard): dump it in the dustbin or at a landfill, or abandon it.
   • Recycle: return it for material recovery, for example paper, glass, plastic or electronics.

Marketers use this knowledge to design recyclable and durable products, run buy-back and exchange programmes, and meet environmental responsibilities.

Personality is the set of distinctive, relatively consistent psychological characteristics that determine how an individual responds to his or her environment. It makes people different from one another and influences their choice of products and brands.

Types of consumer personality

• Freudian theory: personality is formed by the interaction of the id (instincts), ego (reason) and superego (conscience); purchases may reflect unconscious motives.
• Neo-Freudian (social) theory: consumers are classified as compliant (move toward others and prefer well-known brands), aggressive (move against others and seek status and power) and detached (move away from others and are self-reliant).
• Trait theory: personality is a set of traits, for example innovativeness, dogmatism, need for cognition, materialism, self-confidence, extroversion and ethnocentrism. Innovators try new products early, while dogmatic consumers resist them.
• Self-concept theory: consumers buy products that match their actual or ideal self-image.
• Brand personality: human characteristics attributed to a brand, such as sincerity, excitement, competence, sophistication and ruggedness.

Marketers use these types for segmentation, positioning and message design.

A reference group is a person or group of people that an individual uses as a standard of comparison for his or her own beliefs, attitudes and behaviour. Examples are family, friends, colleagues, clubs, celebrities and online communities.

Nature of reference group influence

• Informational influence: the consumer accepts information from the group as evidence of reality, for example trusting a friend who uses a phone brand.
• Utilitarian (normative) influence: the consumer complies with group expectations to gain rewards or avoid punishment.
• Value-expressive influence: the consumer adopts the group's values to enhance self-image or to feel part of the group.

Degree of influence

The degree depends on:

1. Product visibility: the product is conspicuous and consumed publicly.
2. Product necessity: luxuries are more influenced than necessities.
3. Product complexity and risk: the buyer looks to the group when the purchase is risky or unfamiliar.
4. Group cohesiveness and credibility of the group.
5. Individual's self-confidence and need for approval.

This yields four categories: public luxuries (strong product and brand influence, for example a car), private luxuries (product influence only), public necessities (brand influence only, for example a wristwatch) and private necessities (little influence, for example mattresses).

A subculture is a distinct group within a larger culture that shares its own values, beliefs and customs based on a common characteristic such as nationality, religion, ethnicity, region, age or occupation. In Nepal, examples are ethnic and caste groups (Newar, Tharu, Gurung, Madhesi), religion, and urban or rural groups.

Influence on consumer behaviour

• Needs and preferences: food, dress, festivals and ornaments differ by subculture, for example Newari feasts or Tharu cuisine.
• Values and attitudes toward spending, saving, risk and family decisions.
• Buying decisions: product choice, brand loyalty, shopping habits and the role of family members vary.
• Response to marketing: language, symbols, colours and media preferred differ, so the same message may not work for all.
• Consumption occasions: purchases are tied to subculture-specific festivals and rituals.

Marketing implications: subcultures form useful market segments. Marketers should tailor products, advertising language, media and distribution to each, while avoiding offence to sensitive beliefs.

(a) Type of innovation

Cold cereal in a country unused to it is a discontinuous innovation. It demands a major change in established behaviour: a new meal habit (replacing rice, roti or tarkari at breakfast), new storage and preparation (cold milk, bowl), and a new idea of what breakfast is. Dynamically continuous innovations alter behaviour only moderately, and continuous ones barely at all, so cold cereal sits at the high end. Adoption will therefore be slow, and the product will need heavy trial and education effort.

(b) Values in Nepal

Supporting values

• Health and wellness orientation, especially awareness of fibre and nutrition among urban and educated families.
• Convenience and time saving among working couples and students.
• Openness to modern and foreign products in urban areas, and a growing middle class.
• Child-centred spending: parents buy nutritious items for children.

Harming values

• Strong food tradition: the heavy, cooked morning meal (dal-bhat, roti, chiya) is the norm.
• Preference for hot, freshly cooked food; cold milk and cold food are often seen as unhealthy.
• Price sensitivity and thrift; packaged cereal is costly against home food.
• Religious and social food rules, and doubts about processed or imported food.
• Limited refrigeration and dependence on safe fresh milk outside cities.

(c) Factors in the marketing programme

• Product: adapt taste (sweeter, perhaps with nuts or local flavours), sizes and packaging; suggest serving with warm milk.
• Price: small, low-priced packs and trial sizes to suit incomes.
• Place: start in urban supermarkets, bakeries and school canteens, then expand to general stores.
• Promotion: demonstration, sampling, nutritionist and doctor endorsement, Nepali-language advertising showing family breakfast.
• Environment: culture, religion, income, competing local foods (chiura, roti, noodles), laws on labelling, and supply of milk.
• Segmentation: target children, young professionals and health-conscious households first.
• Education: teach how and when to eat the product, since it is a new behaviour.

(d) Evaluation of the communication process

Kelcorn applied a sound communication approach. The source was credible: local medical and nutrition experts rather than the company itself. The message (fibre improves health) was educational and adapted to each country's professional attitudes. Channels were multi-step: experts, academic press, general press and public service announcements, giving a flow from opinion leaders to the public. The receivers were first the professionals, then the general public, which suits a two-step flow of communication. Repetition built acceptance over time, and the result (top 5 cereal worldwide) shows effectiveness. Weaknesses are that it is slow and costly, relies on others' cooperation, and gives the firm less control over the message, but for a new, resisted idea such credibility-led communication is appropriate.

Consumer behaviour is the study of the processes by which individuals or groups select, buy, use and dispose of products, services, ideas or experiences to satisfy their needs and wants. It covers the mental, emotional and physical activities involved before, during and after purchase.

The consumer buying decision process has five steps:

1. Problem (need) recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behaviour (satisfaction or dissatisfaction, and disposal)

Sources of consumer information are:

• Personal sources: family, friends, neighbours and colleagues (word of mouth).
• Commercial (marketer-dominated) sources: advertising, salespeople, dealers, packaging, displays and websites.
• Public (neutral) sources: mass media, consumer reports, rating organisations and government agencies.
• Experiential sources: handling, examining and using the product, and past experience.
• Internet and social media: online reviews, search engines and influencers.

Conjunctive rule: the consumer sets a minimum acceptable level for every important attribute and rejects any brand that fails on even one. It is a screening rule that eliminates brands (non-compensatory).

Disjunctive rule: the consumer sets a high, acceptable level on one or more attributes and accepts any brand that meets it on at least one of them, regardless of the others.

In short, conjunctive requires all cut-offs to be met, while disjunctive requires only one to be met.

Post-purchase dissonance is the doubt or psychological discomfort a consumer feels after making a purchase, especially a costly or important one, about whether the right decision was made. It arises when the rejected alternatives had attractive features, the purchase is hard to reverse, or the decision involved much money. Consumers reduce it by seeking supportive information, praising the chosen brand, avoiding negative messages or returning the product. Marketers help through warranties, follow-up calls, and reassuring messages.

Two characteristics of culture:

1. Learned: culture is not inborn but acquired through family, school, religion and society.
2. Shared: it is held in common by members of a group, giving them common values and behaviour.

(Other characteristics are that it is dynamic and gradually changes, and that it is prescriptive, guiding acceptable conduct.)

Customer dissatisfaction is the negative feeling that arises when a product's or service's actual performance falls short of the customer's expectations. It can lead to complaints, negative word of mouth, switching of brands, returns, or even legal action.

Information search on the internet helps consumers to:

• Get quick, wide and up-to-date information on products, features and prices at low cost and effort.
• Compare brands and sellers using reviews, ratings and comparison sites.
• Learn from other users' experiences on social media and forums.
• Find the availability, offers, and the nearest store, and sometimes buy directly online.

The lexicographic decision rule is a non-compensatory rule in which the consumer ranks the attributes by importance and compares brands on the most important attribute first. The brand that is best on it is chosen. If two or more brands tie, the comparison moves to the next most important attribute, and so on until one brand wins. For example, if battery life is most important in choosing a phone, the phone with the best battery is bought, whatever its other weaknesses.

Social class is a relatively permanent and homogeneous division of society whose members share similar values, lifestyles, interests and behaviour. It influences consumer behaviour by shaping:

• What products and brands are bought (status goods for the upper class, value-for-money items for lower classes).
• Shopping places, media habits and communication style.
• Spending and saving patterns, and attitudes toward credit and risk.
• Leisure activities, language and symbolic consumption.

Marketers therefore segment and position products by social class.

Problem recognition occurs when a consumer perceives a gap between the actual state and the desired state. Its marketing implications are:

• Identify the problems consumers face through research, then design products that solve them.
• Activate need recognition: advertising can remind consumers of needs (for example a cold drink in summer, or insurance after a news event) and create dissatisfaction with the present state, as with new models and fashion.
• Time the marketing to periods of need, such as festivals (Dashain, Tihar), seasons and life events like marriage and school admission.
• Use point-of-purchase displays, coupons, and reminders to trigger unplanned or stock-out recognition.
• Stimulate generic demand when a product category is new, and selective demand by showing that one's brand best solves the problem.
• Avoid too much stimulation that creates anxiety or unethical pressure, and respect consumer welfare.

Rational choice follows the traditional view of the consumer as a problem solver, whereas affective choice recognises that emotions drive many purchases.

Perception is the process by which an individual selects, organises and interprets stimuli into a meaningful picture. Its steps are:

1. Exposure: the stimulus comes within range of a person's senses.
2. Attention: the person devotes processing capacity to the stimulus (selective attention, influenced by intensity, contrast, novelty and relevance).
3. Interpretation (comprehension): meaning is assigned to the stimulus, using prior knowledge, expectations and needs.
4. Organisation: stimuli are grouped (figure and ground, closure, grouping) to form a whole.
5. Retention (memory): the interpreted information is stored for later use in decisions.

Some texts name the stages as sensation, selection, organisation and interpretation; the sequence is the same in substance.

Consumers tend to choose brands whose personality matches their own or their ideal self-image.

A motive is an inner driving force that pushes a person to act to satisfy a need. Its roles in consumer behaviour are:

• Initiates behaviour: an aroused motive creates tension that starts the buying process (problem recognition).
• Directs behaviour: it guides the consumer toward particular products, brands and stores that can satisfy it.
• Determines intensity: stronger motives lead to greater search effort and persistence.
• Shapes choice criteria: motives such as status, safety, economy or affiliation decide which attributes matter.
• Helps in segmentation and positioning: marketers group buyers by motives and appeal to them (rational versus emotional, patronage motives).
• Sustains loyalty: satisfaction of the motive reinforces repeat buying.

Understanding motives thus lets marketers design products and messages that connect with consumers' real needs.

Consumer search activities are of two broad types:

1. Internal search: the consumer retrieves relevant information stored in memory (past experience, knowledge of brands). It is used first and often sufficient for low-involvement or routine purchases.

2. External search: the consumer collects information from outside sources when internal information is inadequate. It is further classified as:

• Pre-purchase (deliberate) search: undertaken to meet a specific upcoming purchase need, from personal, commercial, public and experiential sources.
• Ongoing search: continuing interest in a product area regardless of any immediate purchase, for enjoyment or future use (for example fashion or gadget enthusiasts).

Search can also be described by extent: limited versus extensive, depending on involvement, risk and price.

A reference group is a person or group that serves as a point of comparison or guide for an individual's beliefs, attitudes and behaviour. Reference groups influence consumers in three ways:

1. Informational influence: consumers accept information from others, such as experts, friends or opinion leaders, as evidence about a product (a doctor's recommendation).
2. Utilitarian (normative) influence: people conform to the expectations of the group to gain rewards or avoid punishment, as in following dress codes or colleagues' purchases.
3. Value-expressive influence: people buy to express themselves or identify with a group they admire (celebrities, a sports team), and the need to belong shapes preferences.

The influence is stronger for products that are publicly consumed and luxuries (cars, clothes) than for private necessities. Marketers use celebrity and expert endorsement, testimonials, and brand communities. Groups may be membership, aspirational or dissociative groups, each affecting choices differently.

Public policy decisions are taken by governments and regulators to protect consumers and promote social welfare. Consumer behaviour knowledge helps design and assess them in the following ways.

1. Consumer protection legislation. Understanding how consumers perceive and process information shows where they are misled. This guides rules against deceptive advertising, false claims, unfair pricing, and unsafe products (Nepal's Consumer Protection Act, 2075).

2. Labelling and information disclosure. Knowledge of attention, comprehension and memory helps decide what must be on packages: ingredients, expiry date, price, nutrition and health warnings, in language and formats consumers can understand.

3. Protecting vulnerable groups. Research on children, the elderly and low-literacy consumers supports restrictions on advertising to children, junk food and tobacco promotion.

4. Health and social marketing. Insight into attitudes, motives and persuasion is used to run campaigns against smoking, drink-driving, and for immunisation, sanitation, family planning and road safety.

5. Environmental and energy policy. Knowledge of consumption and disposal behaviour supports recycling programmes, plastic bag bans, and energy-saving labels.

6. Product safety and recall. Understanding product use and misuse informs standards, warnings, and recall systems.

7. Pricing and competition policy. Knowing how consumers use price as a quality cue and respond to brands helps regulators detect unfair practices, monopolies and misleading price promotions.

8. Consumer education and redress. Knowledge of complaint behaviour shapes consumer awareness programmes and grievance-handling systems.

9. Evaluating policy effectiveness. Surveys of awareness, attitudes and compliance show whether policies work and what to change.

In sum, consumer behaviour research makes public policy evidence-based, helps balance business freedom with consumer welfare, and increases compliance.

Product disposition is what consumers do with a product, or what remains of it, once it no longer serves its original purpose. It affects the environment, resale markets and future purchases. The main methods are:

1. Keeping the product. The consumer stores it unused, for sentimental reasons or possible future use.

2. Converting or repurposing. The product is put to a new use, such as reusing jars and bottles, turning old clothes into rags, or using old tyres as planters.

3. Temporarily disposing.

• Lending: giving the item to friends or relatives.
• Renting: earning income by letting others use it.

4. Permanently disposing.

• Giving away: donating to relatives, charities or the poor, or handing down clothes to younger siblings.
• Trading or exchanging: swapping an old product for a new one (exchange offers on phones, appliances, vehicles).
• Selling: to second-hand dealers, through online platforms such as Hamrobazar, or in garage sales.
• Throwing away: discarding in the bin, which creates waste concerns.
• Recycling: sending items to recyclers (paper, plastic, metals, e-waste).

Factors affecting the choice

Choice depends on the product's value, condition, emotional attachment, the cost and effort of disposal, availability of recycling facilities, environmental awareness and laws.

Marketing implications. Firms may offer exchange schemes, take-back and recycling programmes, biodegradable packaging, and resale platforms. Knowing disposal patterns also reveals replacement cycles and the size of the second-hand market, and supports corporate social responsibility.

An attitude is a learned, relatively enduring predisposition to respond favourably or unfavourably toward an object, brand or idea. Attitudes develop through several sources.

1. Direct personal experience. Trying and using a product gives the most powerful and lasting attitude. Satisfaction creates a positive attitude, while a bad experience creates a negative one. Free samples and trials are used for this reason.

2. Family and friends (personal influence). Parents, spouse, peers and reference groups transmit attitudes, particularly early in life, toward brands, shopping and values. Brand loyalty often passes from parents to children.

3. Mass media and marketing communication. Advertising, publicity, and social media shape attitudes towards products the consumer has not experienced, by repeating messages and using appeals and celebrities.

4. Direct marketing and word of mouth. Information from salespeople, mail, online reviews, and other users forms or changes attitudes.

5. Personality. Traits such as openness, self-confidence and need for cognition affect how readily a person forms and changes attitudes (an innovative person tends to hold favourable attitudes toward new products).

6. Cultural and social class influences. Values, religion, customs and class norms provide a base for attitudes toward products such as food, clothing and festivals.

7. Information from the internet and other sources, including consumer reports and expert opinion.

Attitudes are therefore formed by a mix of experience and outside influences. Marketers try to reinforce favourable attitudes, change unfavourable ones, or create new attitudes towards new products.

Core cultural values are the deeply held beliefs that a society shares and that guide acceptable behaviour. A business person in Nepal should consider the following values before and during business.

1. Religion and spirituality. Hindu and Buddhist traditions are strong. Cow slaughter and beef are sensitive; religious symbols must not be used carelessly; and many people fast or avoid certain foods on particular days.

2. Family and collectivism. The joint family and kinship ties are central. Decisions are often collective, and family reputation matters. Family-based advertising and loyalty strategies work well.

3. Festivals and rituals. Dashain, Tihar, Chhath, Holi, Teej, Buddha Jayanti and others drive demand. Businesses time offers, gifts, and campaigns accordingly and respect holidays.

4. Respect for age, hierarchy and authority. Elders, teachers and officials are honoured. Formal greetings (Namaste), titles and respectful language are expected in dealings.

5. Social harmony, relationship and trust. Business rests on personal relationships and trust. Direct confrontation and open rejection are avoided; patience and politeness are valued.

6. Hospitality. The idea "Atithi Devo Bhava" (guest is god) makes tea, food and courtesy a part of business meetings.

7. Caste, ethnic and regional diversity and tolerance. Nepal has many ethnic groups, languages and customs. Discrimination must be avoided, and local language and cultural sensitivity are needed.

8. Fatalism and modesty. Many believe in destiny and auspicious times (shubha sait), so decisions such as opening a shop or signing a contract may be timed by astrology.

9. Thrift, saving and value-consciousness. People are price-sensitive and favour durable goods, and trust gold and land.

10. Gender roles and modesty in dress. Traditional roles remain in many areas, although they are changing in cities; advertising should respect decency.

11. Nationalism and pride in local heritage, which supports products made in Nepal, though foreign brands are also admired for status.

12. Respect for nature and cleanliness. Rivers, mountains and animals have sacred value, and purity rules exist about food and shoes in homes and temples.

Ignoring these values may cause offence and rejection, while respecting them builds acceptance, trust and long-term success.

(a) Role of consumer motivation

Motivation is the driving force that moves a person to act to satisfy a need. In the case it played these roles:

• Functional and health motives: buyers wanted healthier skin and safe, natural ingredients, which is a physiological and safety need.
• Avoidance motive: consumers wished to avoid harmful chemicals in foreign brands, an avoidance (negative) motivation.
• Belief-based rational motives: faith in the benefits of Himalayan herbs gave a reason to try the brand.
• Social and esteem motives: social recognition and the wish to "look good naturally" reflect belonging and esteem needs.
• Eco-consciousness: environmentally friendly consumers were attracted by green values.

Motives aroused the need, directed buyers to the herbal category and to this brand, and sustained repeat buying. The company's positioning matched these motives, so they strongly influenced trial and loyalty.

(b) Consumer learning and its principal elements

Learning occurred through behavioural (instrumental) learning and trial. Free samples at malls and salons gave consumers the chance to try the products. Positive results acted as reinforcement, and word of mouth spread favourable experience. Repeat purchases show the behaviour was learned.

Principal elements reflected:

1. Motives (drives): health, naturalness and recognition provided the drive.
2. Cues: packaging, celebrity advertisements, and sampling displays directed the response.
3. Response: trial and then repeat purchase.
4. Reinforcement: satisfaction from results and recommendations strengthened the likelihood of repeating the purchase.
5. Repetition and memory: repeated use and exposure built familiarity and brand recall.

(c) Perception and personality in brand choice

Perception. Consumers selected, organised and interpreted stimuli differently. Some perceived Himalayan Organics as "authentic and affordable" because of packaging, celebrity endorsement and past experience with herbal items. Others, through selective perception and prior beliefs, saw foreign brands as superior. Perceived quality and image therefore influenced whether the brand was bought.

Personality. Outgoing, modern consumers associated with international brands, expressing their self-concept. Environmentally conscious, health-oriented consumers chose the local herbal brand. The company designed a brand personality (natural, trustworthy, youthful) congruent with the target group's self-image, and consumers choose brands that match their personality. Both factors together explain different brand choices among segments.

(d) Attitude shaped by personal experience and external influences

The statement is justified by the case.

• Personal experience: loyal users developed positive attitudes through repeated satisfaction, observed health benefits, and trial from free samples.
• External influences: eco-friendly branding, celebrity advertising and word of mouth supported positive attitudes. In contrast, the negative attitudes of some consumers came from family influences, peer opinions and exposure to foreign advertisements, with no direct experience of the brand.

Thus attitudes form from direct experience, family and peers, and mass media. The company should use sampling, testimonials, and reassurance about effectiveness to convert sceptics, and keep reinforcing the positive attitudes of loyal users.

Consumer behavior is the study of the processes and activities people engage in when they search for, select, purchase, use, evaluate and dispose of products, services and ideas to satisfy their needs and wants. It covers the mental, emotional and physical actions of individuals, groups and organizations as buyers.

High involvement purchase: the product is expensive, risky or personally important (e.g. a house, laptop, motorcycle), so the consumer searches extensively and compares alternatives before buying.

Low involvement purchase: the product is cheap, frequently bought and of little risk (e.g. salt, soap, noodles), so the decision is quick, routine and made with little search or evaluation.

Evaluation criteria are the standards or product attributes the consumer uses to judge and compare alternative brands. Common criteria include price, quality, brand name, features and performance, design/style, size, durability, warranty and after-sales service, and availability.

Rational choice is the consumer decision-making approach in which the buyer logically and carefully evaluates all available alternatives on the basis of complete information and selects the option that maximizes utility or satisfaction for the money spent. It assumes the consumer is well informed and acts consistently in his or her own best interest.

Consumer dissatisfaction is the negative feeling that arises when a product or service performs below the consumer's expectations (negative disconfirmation). It may lead to complaints, negative word of mouth, brand switching, returns or loss of loyalty.

Disposition methods are the ways consumers get rid of a product after use. The main methods are:

• Keeping or storing it
• Throwing it away or discarding it
• Reusing or converting it to another use
• Selling it (second-hand market, online)
• Trading or exchanging it
• Giving it away or donating it
• Renting or lending it
• Recycling it

Consumer learning is the process by which consumers acquire purchase and consumption knowledge and experience, which they apply to future related behavior. It brings a relatively permanent change in behavior resulting from experience, information and practice.

Four natures of consumer attitude:

1. Learned: attitudes are formed through experience, information and social influence, not inborn.
2. Relatively enduring: they persist over time, though they can change.
3. Directed toward an object: an attitude is always about a product, brand, store or idea.
4. Has direction, degree and intensity: it is favorable or unfavorable and varies in strength.

Family decision roles are:

• Initiator: first suggests or raises the idea of buying.
• Influencer: provides views or advice affecting the decision.
• Gatekeeper: controls the flow of information.
• Decider: makes the final decision on whether, what and where to buy.
• Buyer: actually makes the purchase.
• Preparer: converts the product into a usable form.
• User/Consumer: uses or consumes the product.
• Maintainer/Disposer: services or disposes of it.

Cultural norms are the unwritten rules or standards of behavior shared by members of a society that state what is acceptable and expected in particular situations. They arise from cultural values, and breaking them may attract social disapproval (e.g. wearing traditional dress at festivals such as Dashain, greeting with "Namaste").

In a low involvement purchase (e.g. toothpaste, biscuits, soap) the consumer does not give much thought to the decision, so problem recognition is usually passive and routine.

• Triggered by routine need: the problem is recognized when a stock runs out or a product is used up, and the consumer simply repurchases.
• Triggered by the environment: a shop display, discount, free sample, packaging or an advertisement reminds the consumer of the need (impulse recognition).
• Little information search: after recognition the consumer buys quickly based on habit or brand familiarity, with minimal evaluation.
• Attitude formed after purchase: the consumer tries the brand first and forms an opinion after using it.

Marketers therefore use repeated advertising, attractive in-store displays, coupons and easy availability to prompt problem recognition.

Internet information search is the process by which consumers use online sources to gather information about products before buying.

Sources: search engines (Google), company and e-commerce websites (Daraz, Sastodeal), social media (Facebook, YouTube, TikTok), review sites and blogs, online forums, price comparison sites and influencer content.

Advantages for consumers:

• Fast, convenient access at any time and place
• Easy comparison of price, features and brands
• Access to other buyers' reviews and ratings
• Wide choice with detailed information

Problems: information overload, fake or biased reviews, privacy and security concerns, and unreliable sources.

Marketing implication: firms should have a good website, search engine optimization, honest reviews and active social media presence so that they appear when consumers search.

Both are non-compensatory decision rules, but they differ as follows.

Post-purchase evaluation is the stage after purchase in which the consumer compares the product's actual performance with expectations. If performance meets or exceeds expectations the consumer is satisfied and may repurchase and recommend; if it falls short, dissatisfaction and complaint follow.

Post-purchase dissonance is the anxiety or doubt a buyer feels after purchase about whether the right decision was made. It is likely when:

• The purchase is expensive and important (high involvement)
• The decision is hard to reverse (no return or exchange)
• Several attractive alternatives were available, and the rejected ones had good features
• The buyer has low self-confidence or was persuaded by a salesperson or others
• The product is new or uncertain, or the consumer later hears of a better or cheaper offer

Firms reduce dissonance through warranties, follow-up calls, reassuring advertising, and good after-sales service.

Consumer perception is the process by which a consumer selects, organizes and interprets stimuli to form a meaningful picture of the world. The stages are:

1. Exposure: the stimulus (an advertisement, product or package) comes within reach of the consumer's senses.
2. Attention: the consumer devotes mental processing capacity to the stimulus. Attention is selective, depending on the stimulus (size, colour, novelty) and the individual (needs, interest).
3. Interpretation (comprehension): the consumer assigns meaning to the stimulus, influenced by past experience, expectations, mood and context. Stimuli are organized by principles such as figure and ground, grouping and closure.
4. Memory/retention: the interpreted information is stored and later recalled, influencing attitude and decision.

Because perception is selective (selective exposure, attention, distortion, retention), marketers must design messages that attract and are interpreted correctly.

Social class is a relatively permanent and homogeneous division of society whose members share similar values, lifestyles, interests and behavior. In Nepal, class is shaped by income, occupation, education and wealth, besides traditional caste and ethnicity.

Hierarchy (broad):

• Upper class: big business owners, senior politicians, top professionals and high officials. They buy luxury goods, imported brands, large houses and cars, and private education and health care.
• Middle class: teachers, bankers, civil servants, small traders and professionals. They are education conscious, price and value sensitive, buy bikes, appliances and branded products on instalment, and aspire upward.
• Lower class: daily-wage workers, farmers, labourers and low-paid workers. They spend mostly on basic needs (food, clothing, shelter), seek low prices and local, unbranded goods.

Consumption behavior: higher classes seek prestige, brand and quality; the middle class compares price and quality and is a large target market; the lower class is mainly price driven. Class influences store choice, media habits and spending patterns, so marketers segment and position accordingly.

Consumer rights are the basic entitlements that protect consumers from unfair practices by sellers and ensure fair treatment in the marketplace. The consumer movement is the organized, social effort of individuals, groups, media and government to protect and promote the interests of consumers against unethical and exploitative business practices.

Consumer rights (based on Kennedy's four rights and the UN guidelines, also recognized in Nepal's Consumer Protection Act, 2075):

1. Right to safety: protection against hazardous goods and services.
2. Right to be informed: accurate information on quality, quantity, price, ingredients and expiry.
3. Right to choose: access to a variety of goods at competitive prices.
4. Right to be heard: consumers' interests considered in policy making.
5. Right to redress: fair settlement of genuine claims and compensation.
6. Right to consumer education: knowledge and skills to make informed choices.
7. Right to a healthy environment, and the right to satisfaction of basic needs.

Consumer movement: it began in the early 20th century in the USA and Europe (Ralph Nader's work, Consumers International). In Nepal it grew with consumer forums and organizations, the Consumer Protection Act, the Department of Commerce, Supplies and Consumer Protection and the Consumer Protection Council, consumer courts and the Consumer Rights Day observed each year. Its aims are to curb adulteration, black marketing, overpricing and false advertising and to build awareness.

Important guidelines to be followed:

• Sellers must give correct labelling, price, weight and expiry details.
• Goods must meet quality and safety standards.
• Advertising must be truthful and not misleading.
• Prevent adulteration, hoarding, black marketing and overcharging.
• Provide warranty, guarantee and after-sales service.
• Set up simple complaint-handling and compensation mechanisms.
• Consumers should be aware, ask for bills, check labels, compare, and report malpractice.
• Government should enforce laws and support consumer organizations and education.

Consumer personality is the set of inner psychological characteristics that determine and reflect how a consumer responds to the environment. We know it through traits such as self-confidence, innovativeness, sociability, dominance, dogmatism, need for cognition and materialism, observed from buying patterns, brand preferences, lifestyle (AIO) and psychographic tests, interviews and questionnaires.

Freudian theory (psychoanalytic). Sigmund Freud held that human personality is formed by unconscious drives, especially sexual and biological ones, which are largely hidden and shaped in childhood. Personality has three interacting systems:

• Id: the source of instinctive, pleasure-seeking urges demanding immediate satisfaction.
• Superego: the conscience, the internalized moral and social norms that restrain the id.
• Ego: the conscious, rational mediator that balances id and superego.

Implications: buying motives are often unconscious; consumers may not know the real reason for a purchase. Marketers use motivation research (projective techniques, depth interviews) and symbolic appeals in products, packaging and ads (e.g. a car as a symbol of status or power).

Neo-Freudian theory. Followers of Freud such as Adler, Horney, Sullivan and Fromm stressed that social relationships, rather than sexual instincts, shape personality, and that people strive to meet needs of belonging and to overcome inferiority.

• Alfred Adler: people seek to reduce feelings of inferiority and attain superiority (a drive for status).
• Harry Sullivan: people try to establish relationships and reduce tension with others.
• Karen Horney: identified three personality groups: compliant (move toward others, want love and acceptance), aggressive (move against others, want power and admiration) and detached (move away from others, want independence). Tests like CAD scale link these to brand preferences (e.g. compliant people prefer well-known brands).

Marketers use these ideas for segmentation and for promotional appeals based on belonging, status and independence.

Family influence is the effect that family members have on one another's values, attitudes, needs and buying decisions. The family is the most important primary reference group and the main consuming unit, because members share income and products and children learn consumer skills (consumer socialization) from parents. Influence appears in who initiates, influences, decides and buys, and in the roles of husband, wife and children (husband-dominant, wife-dominant, joint or autonomic decisions).

Family life cycle (FLC) describes the stages a family passes through, each with different needs and buying patterns:

1. Bachelor stage (young, single): few financial burdens; spend on fashion, entertainment, mobiles, travel and basic furniture.
2. Newly married couples (young, no children): high purchase rate for durables, furniture, home appliances, vacations; good financial position.
3. Full nest I (youngest child under six): home purchase peak; spend on baby food, toys, health, medicines, insurance; financially tight.
4. Full nest II (youngest child six or over): finances improve; buy education, larger packs, music lessons, family trips.
5. Full nest III (older married couples with dependent children): finances better; replace furniture, buy luxury items, pay for higher education.
6. Empty nest I (older couples, no children at home, head still working): most satisfied financially; invest, travel, buy luxury and home improvement.
7. Empty nest II (retired): reduced income; spend on health care, medical products, simple holidays.
8. Solitary survivor (widowed/living alone): keep spending on health care, security, companionship and small homes.

Marketers use the life-cycle stage to segment markets and design products, prices and promotion.

Cross-cultural marketing is the marketing of products and services to consumers in different cultures (countries or sub-cultures) by understanding their values, beliefs, language, customs and consumption behavior, and adapting the marketing mix (product, price, place, promotion) accordingly. It helps a firm avoid cultural blunders, such as offensive colours, symbols or messages, and to decide between standardization and adaptation. It involves cross-cultural consumer analysis of similarities and differences between cultures.

Nepalese core cultural values

• Religion and spirituality: Hinduism and Buddhism strongly shape life; festivals such as Dashain, Tihar, Holi, Buddha Jayanti involve heavy spending on clothes, food, gifts and decoration. Beef products and similar are sensitive.
• Family and collectivism: joint families, respect for elders, strong family bonds; family-oriented products and group decisions.
• Respect for age and hierarchy: seniors and authority figures are honoured; hierarchy influences communication.
• Hospitality ("Atithi Devo Bhava"): guests are treated like gods; encourages spending on entertaining.
• Caste, ethnic and regional diversity: many languages, communities and customs, requiring segmented marketing.
• Traditional dress and food: daura suruwal, dhaka topi, sari; dal-bhat, momo; preference for local taste.
• Importance of social status and prestige: weddings, rituals and gifts show status.
• Fatalism and trust in astrology: auspicious dates (saits) influence timing of purchases and weddings.
• Remittance and migration influence, and growing modernization are changing values toward convenience, brands and western styles.

Marketers should respect these values in advertising, product design, language and timing to succeed in Nepal.

(a) Right to safety. The right to safety means consumers must be protected from products harmful to life and health. The case shows its violation because prolonged use of talcum powder was alleged to cause ovarian cancer, and consumers used the product for years without knowing the risk. The company failed to test, monitor, withdraw or modify the product, and the court award of $72 million to the family of Jacqueline Fox confirms the failure to ensure safety. A manufacturer has a duty to ensure that products are safe when used as intended.

(b) Right to information. The company potentially breached this right because internal documents suggested it knew about possible cancer links but did not warn the public through labels, warnings or advertising. It withheld or hid material facts, so consumers could not judge risks. The right is crucial because:

• consumers can make informed choices only with truthful, complete information;
• it lets them avoid harm, compare alternatives and stop using risky products;
• it creates transparency and holds firms accountable, preventing deceptive practices.

(c) Right to redress. The lawsuits by victims and their families are the exercise of the right to redress, that is, to seek fair settlement and compensation for harm. Through court cases individuals obtained damages (such as the $72 million award), established the company's liability, and received justice for suffering. It also acts as a deterrent: large awards push companies to improve safety and to be accountable.

(d) Right to consumer education. Consumer education gives people the knowledge and skills to choose safely and to know their rights. In this case, media coverage, public debate and activism after the disclosure of internal documents raised awareness of product risks, helped consumers decide on continued use, encouraged them to demand warnings and to file claims, and pressed regulators to supervise. It prevents harm by making consumers vigilant, and promotes accountability by making companies know that an informed public, media and law will examine their conduct, encouraging ethical corporate behavior.