Description
Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.[1] It blends elements from psychology, sociology, social anthropology and economics.
“It is useless to tell a river to stop running; the best thing to do is to
learn to swim in the
direction it is flowing;
…and
faster.”
Consumer Behaviour
“the set of activities people engage in when selecting, purchasing and using products so as to satisfy needs and desires. These include mental and emotional processes in addition to physical action.”
ENVIRONMENTAL FACTORS
Culture social class, income refrence grp family social values , norms, roles situational factors mktg mix demogrphics
INDIVIDUAL FACTORS Motives perception Personality learning Attitudes psychographics
PURCHASE DECISION
Prblm rcgntn Info search Evltn Of altntvs Purchse decision Post purchse Cnsmptn evltn
The decision Making Process
Low Involvement Few difference s in brands Significant difference s in brands High Involvement
Habitual buying behaviour Variety Seeking behaviour
Dissonance reducing behaviour Complex buying behaviour
Habitutal buying behaviour
– No post purchase analysis
Mktg strategist will
– Enhance recognition – Add an involving issue
Dissonance reducing behaviour
– Does post purchase analysis
Marketing Strategist will
– Supply beleifs and evaluation that help the consumer feel good
Variety Seeking Buying Behaviour
– Brand switching and evaluation during consumption
Marketing Strategist will
– Dominate shelf space, reminder advertising, bulk purchase, deals etc
Complex Buying Behaviour
– Makes a thought ful , informed choice
Marketing Strategist will
– Respond to need for information, regarding attributes, comparisions, company image etc.
Buying Roles
Initiator Influencer Decider Buyer User
Decision Making Process
Problem Recognition Search for Information
Evaluation of Alternatives
Purchase decision Post purchase Consumption and Evaluation
Problem Recognition
Internal stimulus
– Hunger, thirst.
External Stimulus
– Exposure to message, peer etc
Cards, cars,
Information And Alternative Search
To reduce Percieved Risk
– Performance, Financial, Physical, Social, Timeloss.
Internal Search External Search
– – – – Personal sources- family, friends, refrence grp Commercial – Advts, etc Public sources – articles, rating agencies, third party Experience- trials.etc
Low involvement pdt - TOMAS
High involvement pdt
Evaluation of Aternatives
Alternative solutions – direct or indirectly competing products Choice criteria – critical attributes on which consumer evaluates your pdt.
High involvement pdt- complex
Low involvement pdt – simply price, flavour
Purchase Decision
Sub decisions
– Seller, location – Time – Size, color etc – Price and payment mode – Delivery, installation, maintenance
Post Purchase consumption and evaluation
Cognitive dissonance
– Help focus on advantages, reinforcement from society, add post purchase service and association to the deal
Purchase Satisfaction
INDIVIDUAL FACTORS
Motives
perception Personality
learning Attitudes psychographics
Motivation
An activated state where consumer initiates a goal directed behaviour to fulfill the gap between desired and actual state. Activated need is a motive. Incentive is the pdt that would satisfy the need
Maslow’s hierarchy of needs
Self actualization needs
– Self fulfilment
Self esteem needs
– Self worth, success, prestige, status
Social acceptance, love needs Safety needs
– Security, protection from harm – Feeling of belonging, friendship, acceptance
Physiological needs
– Food, water, etc
Herzeberg’s Theory
Dissatisfiers Satisfiers Identify and promote satisfiers and weed out dissatisfies.
A motivated person is ready to act. How does he act is guided by…
Perception
Our interpretation of reality
Italy and Vespa
The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture. Selective attention Selective distortion Selective retention
Selective attention
Tendency to screen out certain stimuli and interrelate certain others Screen out: 1500 commercial messages a day…
People are more likely to notice – Stimuli related to a current need – A stimuli that they anticipate ascent, movie shows – A stimuli whose deviations are large sale – Unexpected stimuli offer in the mail
Inter relate: to get a closure titan, beer, give me red
Selective Distortion
Tendency to twist info and interpret in a way that it fits our preconceptions archie
Selective Retention
We remember only what we want to. Dramatization Fevicol advt Repetition coke, diamond
Perception and brand image
Symbols and meanings associated with a brand Corporate image and pdt image
Priya gold, Nike, macdonalds Taste test
Self image and brand personality
Learning
Behaviour as a result of experience Positive rewards lead to repetitive behaviour bajaj, Surf, coldarin, addgel Negative effects become part of database
livon
Beliefs and attitudes
belief is a descriptive thought about something Attitude is its evaluation, emotional feeling, and action tendency towards it.
Blood donation, got milk - milk mustache campaign, maggi noodles
Culture and sub culture
Set of values, perception, preferences (attitudes), and behaviours
Paresh raval in dominos, maruti customer satiasfaction
Social stratification
– Lower class – Lower uppers
unskilled labour,uneducated
poverty, no savings, no jobs, illiterate working, living stds just above poverty,poorly paid,
– Working class
modest income, blue collared jobs, no savings,working poor, skilled lbr maintain sterotyped roles avg inc, white collared jobs, sm savgs,,educated,opnal mgrs, small bus, worthwhile experiences, college educ, high inc,upp.mgrs, proff, qualified conerned with carreers, want children to haveproff qual. Home oriented,quality mkt fr homes, furnitur, appliances,clothes
– Middle class
– Upper middle class
– Upper
lower class
grew frm mid.class, active socially,civilaffairs,
– Upper upper class v. high inc, old wlth, investors, heirs, highly placed, charity, buy – dress conservatively, good schools, jewellery, antiques, homes
Reference Groups
Membership groups
– Primary- family, friends, neighbours, coworkers – Secondary- religious, union, professional, formal
Aspirational groups Dissociative
Clothing, drink, cars,
Opinion leaders
Family, roles and status
Family of orientation and procreation Decisions husband – wife - joint
Age, Life cycle
Bachelor phones, preening goods, cars, vacations Newly married cars, durables, vacation, furniture Full nest I washers, dryers, toys, sports, home entertnmt Full nest II many foods, cleaning material, bikes, special tutions Full nest III tstfl furniture,,boats, unessential purchses, mag, hlth chck Empty nest I vacations, luxuries,home imprvmnts Empty nest II med.app, medicare pdts, home sustnnce Solitary survivor med attention, affection, security
Lifestyle
Actualizers: successful, sophisticated, upscale niche pdts prefered Fulfilleds: mature, reflective, favour durability, funcutionality & value
Achievers: successful, career orientd, prestige pdts, status oriented Experiencers: young, vital,rebellious. Clothing, music, fast food,movies Believers: consrvtve, conventional, traditional,familiar pdts, est. brands Strivers: uncertain , insecure,approval seeking. Stylish pdtsemulatewealthy Makers: practical, self suff, family orntd practical, functional eg. Utility vehicle Strugglers: passive, resource constrained, resigned. Loyal to favorite brands
(VALS segmentation)
doc_218563744.ppt
Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.[1] It blends elements from psychology, sociology, social anthropology and economics.
“It is useless to tell a river to stop running; the best thing to do is to
learn to swim in the
direction it is flowing;
…and
faster.”
Consumer Behaviour
“the set of activities people engage in when selecting, purchasing and using products so as to satisfy needs and desires. These include mental and emotional processes in addition to physical action.”
ENVIRONMENTAL FACTORS
Culture social class, income refrence grp family social values , norms, roles situational factors mktg mix demogrphics
INDIVIDUAL FACTORS Motives perception Personality learning Attitudes psychographics
PURCHASE DECISION
Prblm rcgntn Info search Evltn Of altntvs Purchse decision Post purchse Cnsmptn evltn
The decision Making Process
Low Involvement Few difference s in brands Significant difference s in brands High Involvement
Habitual buying behaviour Variety Seeking behaviour
Dissonance reducing behaviour Complex buying behaviour
Habitutal buying behaviour
– No post purchase analysis
Mktg strategist will
– Enhance recognition – Add an involving issue
Dissonance reducing behaviour
– Does post purchase analysis
Marketing Strategist will
– Supply beleifs and evaluation that help the consumer feel good
Variety Seeking Buying Behaviour
– Brand switching and evaluation during consumption
Marketing Strategist will
– Dominate shelf space, reminder advertising, bulk purchase, deals etc
Complex Buying Behaviour
– Makes a thought ful , informed choice
Marketing Strategist will
– Respond to need for information, regarding attributes, comparisions, company image etc.
Buying Roles
Initiator Influencer Decider Buyer User
Decision Making Process
Problem Recognition Search for Information
Evaluation of Alternatives
Purchase decision Post purchase Consumption and Evaluation
Problem Recognition
Internal stimulus
– Hunger, thirst.
External Stimulus
– Exposure to message, peer etc
Cards, cars,
Information And Alternative Search
To reduce Percieved Risk
– Performance, Financial, Physical, Social, Timeloss.
Internal Search External Search
– – – – Personal sources- family, friends, refrence grp Commercial – Advts, etc Public sources – articles, rating agencies, third party Experience- trials.etc
Low involvement pdt - TOMAS
High involvement pdt
Evaluation of Aternatives
Alternative solutions – direct or indirectly competing products Choice criteria – critical attributes on which consumer evaluates your pdt.
High involvement pdt- complex
Low involvement pdt – simply price, flavour
Purchase Decision
Sub decisions
– Seller, location – Time – Size, color etc – Price and payment mode – Delivery, installation, maintenance
Post Purchase consumption and evaluation
Cognitive dissonance
– Help focus on advantages, reinforcement from society, add post purchase service and association to the deal
Purchase Satisfaction
INDIVIDUAL FACTORS
Motives
perception Personality
learning Attitudes psychographics
Motivation
An activated state where consumer initiates a goal directed behaviour to fulfill the gap between desired and actual state. Activated need is a motive. Incentive is the pdt that would satisfy the need
Maslow’s hierarchy of needs
Self actualization needs
– Self fulfilment
Self esteem needs
– Self worth, success, prestige, status
Social acceptance, love needs Safety needs
– Security, protection from harm – Feeling of belonging, friendship, acceptance
Physiological needs
– Food, water, etc
Herzeberg’s Theory
Dissatisfiers Satisfiers Identify and promote satisfiers and weed out dissatisfies.
A motivated person is ready to act. How does he act is guided by…
Perception
Our interpretation of reality
Italy and Vespa
The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture. Selective attention Selective distortion Selective retention
Selective attention
Tendency to screen out certain stimuli and interrelate certain others Screen out: 1500 commercial messages a day…
People are more likely to notice – Stimuli related to a current need – A stimuli that they anticipate ascent, movie shows – A stimuli whose deviations are large sale – Unexpected stimuli offer in the mail
Inter relate: to get a closure titan, beer, give me red
Selective Distortion
Tendency to twist info and interpret in a way that it fits our preconceptions archie
Selective Retention
We remember only what we want to. Dramatization Fevicol advt Repetition coke, diamond
Perception and brand image
Symbols and meanings associated with a brand Corporate image and pdt image
Priya gold, Nike, macdonalds Taste test
Self image and brand personality
Learning
Behaviour as a result of experience Positive rewards lead to repetitive behaviour bajaj, Surf, coldarin, addgel Negative effects become part of database
livon
Beliefs and attitudes
belief is a descriptive thought about something Attitude is its evaluation, emotional feeling, and action tendency towards it.
Blood donation, got milk - milk mustache campaign, maggi noodles
Culture and sub culture
Set of values, perception, preferences (attitudes), and behaviours
Paresh raval in dominos, maruti customer satiasfaction
Social stratification
– Lower class – Lower uppers
unskilled labour,uneducated
poverty, no savings, no jobs, illiterate working, living stds just above poverty,poorly paid,
– Working class
modest income, blue collared jobs, no savings,working poor, skilled lbr maintain sterotyped roles avg inc, white collared jobs, sm savgs,,educated,opnal mgrs, small bus, worthwhile experiences, college educ, high inc,upp.mgrs, proff, qualified conerned with carreers, want children to haveproff qual. Home oriented,quality mkt fr homes, furnitur, appliances,clothes
– Middle class
– Upper middle class
– Upper
lower class
grew frm mid.class, active socially,civilaffairs,
– Upper upper class v. high inc, old wlth, investors, heirs, highly placed, charity, buy – dress conservatively, good schools, jewellery, antiques, homes
Reference Groups
Membership groups
– Primary- family, friends, neighbours, coworkers – Secondary- religious, union, professional, formal
Aspirational groups Dissociative
Clothing, drink, cars,
Opinion leaders
Family, roles and status
Family of orientation and procreation Decisions husband – wife - joint
Age, Life cycle
Bachelor phones, preening goods, cars, vacations Newly married cars, durables, vacation, furniture Full nest I washers, dryers, toys, sports, home entertnmt Full nest II many foods, cleaning material, bikes, special tutions Full nest III tstfl furniture,,boats, unessential purchses, mag, hlth chck Empty nest I vacations, luxuries,home imprvmnts Empty nest II med.app, medicare pdts, home sustnnce Solitary survivor med attention, affection, security
Lifestyle
Actualizers: successful, sophisticated, upscale niche pdts prefered Fulfilleds: mature, reflective, favour durability, funcutionality & value
Achievers: successful, career orientd, prestige pdts, status oriented Experiencers: young, vital,rebellious. Clothing, music, fast food,movies Believers: consrvtve, conventional, traditional,familiar pdts, est. brands Strivers: uncertain , insecure,approval seeking. Stylish pdtsemulatewealthy Makers: practical, self suff, family orntd practical, functional eg. Utility vehicle Strugglers: passive, resource constrained, resigned. Loyal to favorite brands
(VALS segmentation)
doc_218563744.ppt