Description
Consumer Behaviour
Consumer Markets and Consumer Buying Behavior
Saurabh Dubey 1
Consumer Buying Behavior
Consumer Buying Behavior refers to the buying behavior of final consumers individuals & households who buy goods and services for personal consumption. The central question for marketers is: ³How do consumers respond to various marketing efforts the company might use?´
Saurabh Dubey 2
Models Of Buyer Behaviour
The black box model, also called the stimulusresponse model, is one of the most simple types of consumer behavior models. The black box can be thought of as the region of the consumer's brain that is responsible for purchasing decisions. Environmental stimuli, such as economics, technology, and culture, combine with marketing stimuli, like the product, price, and promotion, inside the black box, where decisions are made. This model ignores variables within the consumer and focuses on marketing and environmental variables that produce the desired response.
Saurabh Dubey
3
Psychoanlytical Model: drawn mainly from Freudian psychology.
It says that a consumer has a complex set of deepseated motives that drive him towards certain behaviour. We suppress a series of urges while growing up in the society. So the motive for buying any particular brand may be very different from more fundamental underlying motive. e.g: In buying a fast car, motive may be fast commutation but underlying motive may be desire for status & get noticed.
Saurabh Dubey
4
Sociological model: the individual behaviour is influenced in his buying behaviour by society- by intimate groups as well as social class. He has a desire to follow & fit in with his environment. Many of his needs arise out of his status in the society.
Saurabh Dubey
5
Type of Goods
Shopping Behavior depends on type of goods. Consumer goods can be divided in 3 types: a) Convenience Goods: goods which are purchased with least possible efforts. Items purchased frequently & unit price is low. Not much planning behind such purchases. Generally these products are within easy reach of the consumer. If not the consumer may switch to substitute available.
Saurabh Dubey 6
b) Shopping Goods: Items like Cloth, Shoe, Appliances are not purchased so frequently. Some planning is applicable behind such purchase. Buyer is ready to make more than one trip to buy such items. Per unit cost of such products is high. Buyer might compare the available options. c) Speciality Goods: High priced goods as Cars, House, Pricely watches, Dresses. Purchase involve high investment & period of purchase is less frequent. Factors such as Cost, Utility, Prestige, Alternative are taken under consideration.
Saurabh Dubey 7
Factors Influencing Consumer Behavior
Cultural Social Personal
Culture Subculture Social class Reference groups Family Roles and status
Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept
Psychological
Motivation Perception Learning Beliefs and attitudes
Buyer
Saurabh Dubey
8
Factors Affecting Consumer Behavior: Culture
Culture is the Most Basic Cause of a Person's Wants and Behavior.
Subculture
Group of people with shared value systems based on common life experiences. Hispanic Consumers Asian Consumers South India, North India
Saurabh Dubey
9
Factors Affecting Consumer Behavior: Culture
Culture is the Set of Values, Perceptions, Wants & Behavior Learned by a Member of Society from Family.
Social Class
Society s relatively permanent & ordered divisions whose members share similar values, interests, and behaviors. Measured by: Occupation, Income, Education, Wealth and Other Variables.
Saurabh Dubey
10
Factors Affecting Consumer Behavior: Social
Groups Secondary Social Group Primary Group Husband, wife, kids Influencer, buyer, user
Social Factors
Roles and Status Opinion Leaders
Saurabh Dubey 11
Factors Affecting Consumer Behavior: Personal
Personal Influences Personal Influences
Age and Life Age and Life Cycle Stage Cycle Stage Economic Economic Situation Situation Personality & Personality & Self-Concept Self-Concept
Occupation Occupation
Lifestyle Identification Lifestyle Identification
Activities Activities
Interests Interests
Opinions Opinions
Saurabh Dubey
12
Factors Affecting Consumer Behavior: Psychological
Motivation
Beliefs and Attitudes
Psychological Factors Affecting Buyers Choices
Perception
Learning
Saurabh Dubey 13
Psychological - Motive
A motive is a need that has a sufficient level of intensity. Creating a tension state that drives the person to act. Satisfying the need reduces the felt tension. Product Motive: Emotional & Rational Emotional Product Motive are those impulses that appeal to buyers pride or ego or urge to imitate others. This may without evaluating the plus & minus point of such action. Rational Product Motive involve a logical analysis of the purchases. It analyses the purpose expected to be served by that product.
Saurabh Dubey 14
Patronage Motives: Emotional & Rational
Emotional PM are those that persuade the buyer to buy from specific shops without any logical reason behind. I like or its my favorite sort. Rational PM are those that pursuades a buyer to buy from a specific place due to its wide collection or service or product quality. * Every patronage mostly has a combination of both.
Saurabh Dubey
15
Psychological - Perception
The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. The individual gathers information from his surroundings regarding any particular product/service. Some people may have selective perception, i.e understand & remember the things according to their thinking. Selective Attention: We hear only what we perceive as worthy. It is a natural defence mechanism of an individual. Selective Distortion: People interpret the things in a way that they get distorted.(Distort the message & retain only things which fit into their belief system). Selective Retention: To retain information which fit into our belief system.
Saurabh Dubey 16
Psychological - Learning
Learning can change the belief, faith, likes & dislikes. Marketing is actively involved in the learning process. With learning the behaviour of individuals keep changing Marketers keep on communicating/advertising their products/offers to ensure the learning of the consumers.
Saurabh Dubey
17
Psychological: Motivation
Frederick Herzberg 2 factor theory: -Motivator: factors such as Achievement, Work,
Recognition, Responsibility, Growth, Salary are motivators & absence of which may cause dissatisfaction among the employees & presence of such factors bring motivation.. -Hygiene Factors: Company profile, Relation with Peers, Subordinates, Seniors, Working conditions, Status etc are satisfiers i.e the presence of such factors will have no impact but the absence may cause dissatisfaction.
Saurabh Dubey
18
Maslow¶s Hierarchy of Needs
Self Actualization
Esteem Needs (self-esteem) Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Saurabh Dubey 19
Buyer Decision Process
Purchase Decision Evaluation of Alternatives Information Search Need Recognition
Saurabh Dubey 20
Postpurchase Behavior
The Buyer Decision Process
Step 1. Need Recognition
Need Recognition
Difference between an actual state and a desired state
Internal Stimuli ? Hunger
? Thirst ? A person¶s normal needs
External Stimuli
? TV advertising
? Magazine ad ? Radio slogan ?Stimuli in the environment
Saurabh Dubey
21
The Buyer Decision Process
Step 2. Information Search
Personal Sources Commercial Sources
?Family, friends, neighbors ?Most influential source of information ?Advertising, salespeople ?Receives most information from these sources ?Mass Media ?Consumer-rating groups ?Handling the product ?Examining the product ?Using the product
Public Sources
Experiential Sources
Saurabh Dubey
22
The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I¶m looking for, how satisfied would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one or more attributes. Saurabh Dubey 23
The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention Desire to buy the most preferred brand
Attitudes of others
Unexpected situational factors
Purchase Decision
Saurabh Dubey 24
The Buyer Decision Process
Step 5. Postpurchase Behavior
Consumer¶s Expectations of Product¶s Performance Product¶s Perceived Performance
Satisfied Customer!
Dissatisfied Customer
Saurabh Dubey Cognitive Dissonance 25
Stages in the Adoption Process
Awareness Interest Evaluation Trial Adoption
Saurabh Dubey 26
Adoption of Innovations
Percentage of Adopters
Early Majority Innovators
Late Majority
Early Adopters
13.5%
34%
34%
Laggards
16%
2.5%
Time of Adoption Late
Early
Saurabh Dubey
27
Thank you
Saurabh Dubey
28
doc_837344079.ppt
Consumer Behaviour
Consumer Markets and Consumer Buying Behavior
Saurabh Dubey 1
Consumer Buying Behavior
Consumer Buying Behavior refers to the buying behavior of final consumers individuals & households who buy goods and services for personal consumption. The central question for marketers is: ³How do consumers respond to various marketing efforts the company might use?´
Saurabh Dubey 2
Models Of Buyer Behaviour
The black box model, also called the stimulusresponse model, is one of the most simple types of consumer behavior models. The black box can be thought of as the region of the consumer's brain that is responsible for purchasing decisions. Environmental stimuli, such as economics, technology, and culture, combine with marketing stimuli, like the product, price, and promotion, inside the black box, where decisions are made. This model ignores variables within the consumer and focuses on marketing and environmental variables that produce the desired response.
Saurabh Dubey
3
Psychoanlytical Model: drawn mainly from Freudian psychology.
It says that a consumer has a complex set of deepseated motives that drive him towards certain behaviour. We suppress a series of urges while growing up in the society. So the motive for buying any particular brand may be very different from more fundamental underlying motive. e.g: In buying a fast car, motive may be fast commutation but underlying motive may be desire for status & get noticed.
Saurabh Dubey
4
Sociological model: the individual behaviour is influenced in his buying behaviour by society- by intimate groups as well as social class. He has a desire to follow & fit in with his environment. Many of his needs arise out of his status in the society.
Saurabh Dubey
5
Type of Goods
Shopping Behavior depends on type of goods. Consumer goods can be divided in 3 types: a) Convenience Goods: goods which are purchased with least possible efforts. Items purchased frequently & unit price is low. Not much planning behind such purchases. Generally these products are within easy reach of the consumer. If not the consumer may switch to substitute available.
Saurabh Dubey 6
b) Shopping Goods: Items like Cloth, Shoe, Appliances are not purchased so frequently. Some planning is applicable behind such purchase. Buyer is ready to make more than one trip to buy such items. Per unit cost of such products is high. Buyer might compare the available options. c) Speciality Goods: High priced goods as Cars, House, Pricely watches, Dresses. Purchase involve high investment & period of purchase is less frequent. Factors such as Cost, Utility, Prestige, Alternative are taken under consideration.
Saurabh Dubey 7
Factors Influencing Consumer Behavior
Cultural Social Personal
Culture Subculture Social class Reference groups Family Roles and status
Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept
Psychological
Motivation Perception Learning Beliefs and attitudes
Buyer
Saurabh Dubey
8
Factors Affecting Consumer Behavior: Culture
Culture is the Most Basic Cause of a Person's Wants and Behavior.
Subculture
Group of people with shared value systems based on common life experiences. Hispanic Consumers Asian Consumers South India, North India
Saurabh Dubey
9
Factors Affecting Consumer Behavior: Culture
Culture is the Set of Values, Perceptions, Wants & Behavior Learned by a Member of Society from Family.
Social Class
Society s relatively permanent & ordered divisions whose members share similar values, interests, and behaviors. Measured by: Occupation, Income, Education, Wealth and Other Variables.
Saurabh Dubey
10
Factors Affecting Consumer Behavior: Social
Groups Secondary Social Group Primary Group Husband, wife, kids Influencer, buyer, user
Social Factors
Roles and Status Opinion Leaders
Saurabh Dubey 11
Factors Affecting Consumer Behavior: Personal
Personal Influences Personal Influences
Age and Life Age and Life Cycle Stage Cycle Stage Economic Economic Situation Situation Personality & Personality & Self-Concept Self-Concept
Occupation Occupation
Lifestyle Identification Lifestyle Identification
Activities Activities
Interests Interests
Opinions Opinions
Saurabh Dubey
12
Factors Affecting Consumer Behavior: Psychological
Motivation
Beliefs and Attitudes
Psychological Factors Affecting Buyers Choices
Perception
Learning
Saurabh Dubey 13
Psychological - Motive
A motive is a need that has a sufficient level of intensity. Creating a tension state that drives the person to act. Satisfying the need reduces the felt tension. Product Motive: Emotional & Rational Emotional Product Motive are those impulses that appeal to buyers pride or ego or urge to imitate others. This may without evaluating the plus & minus point of such action. Rational Product Motive involve a logical analysis of the purchases. It analyses the purpose expected to be served by that product.
Saurabh Dubey 14
Patronage Motives: Emotional & Rational
Emotional PM are those that persuade the buyer to buy from specific shops without any logical reason behind. I like or its my favorite sort. Rational PM are those that pursuades a buyer to buy from a specific place due to its wide collection or service or product quality. * Every patronage mostly has a combination of both.
Saurabh Dubey
15
Psychological - Perception
The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. The individual gathers information from his surroundings regarding any particular product/service. Some people may have selective perception, i.e understand & remember the things according to their thinking. Selective Attention: We hear only what we perceive as worthy. It is a natural defence mechanism of an individual. Selective Distortion: People interpret the things in a way that they get distorted.(Distort the message & retain only things which fit into their belief system). Selective Retention: To retain information which fit into our belief system.
Saurabh Dubey 16
Psychological - Learning
Learning can change the belief, faith, likes & dislikes. Marketing is actively involved in the learning process. With learning the behaviour of individuals keep changing Marketers keep on communicating/advertising their products/offers to ensure the learning of the consumers.
Saurabh Dubey
17
Psychological: Motivation
Frederick Herzberg 2 factor theory: -Motivator: factors such as Achievement, Work,
Recognition, Responsibility, Growth, Salary are motivators & absence of which may cause dissatisfaction among the employees & presence of such factors bring motivation.. -Hygiene Factors: Company profile, Relation with Peers, Subordinates, Seniors, Working conditions, Status etc are satisfiers i.e the presence of such factors will have no impact but the absence may cause dissatisfaction.
Saurabh Dubey
18
Maslow¶s Hierarchy of Needs
Self Actualization
Esteem Needs (self-esteem) Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Saurabh Dubey 19
Buyer Decision Process
Purchase Decision Evaluation of Alternatives Information Search Need Recognition
Saurabh Dubey 20
Postpurchase Behavior
The Buyer Decision Process
Step 1. Need Recognition
Need Recognition
Difference between an actual state and a desired state
Internal Stimuli ? Hunger
? Thirst ? A person¶s normal needs
External Stimuli
? TV advertising
? Magazine ad ? Radio slogan ?Stimuli in the environment
Saurabh Dubey
21
The Buyer Decision Process
Step 2. Information Search
Personal Sources Commercial Sources
?Family, friends, neighbors ?Most influential source of information ?Advertising, salespeople ?Receives most information from these sources ?Mass Media ?Consumer-rating groups ?Handling the product ?Examining the product ?Using the product
Public Sources
Experiential Sources
Saurabh Dubey
22
The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I¶m looking for, how satisfied would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one or more attributes. Saurabh Dubey 23
The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention Desire to buy the most preferred brand
Attitudes of others
Unexpected situational factors
Purchase Decision
Saurabh Dubey 24
The Buyer Decision Process
Step 5. Postpurchase Behavior
Consumer¶s Expectations of Product¶s Performance Product¶s Perceived Performance
Satisfied Customer!
Dissatisfied Customer
Saurabh Dubey Cognitive Dissonance 25
Stages in the Adoption Process
Awareness Interest Evaluation Trial Adoption
Saurabh Dubey 26
Adoption of Innovations
Percentage of Adopters
Early Majority Innovators
Late Majority
Early Adopters
13.5%
34%
34%
Laggards
16%
2.5%
Time of Adoption Late
Early
Saurabh Dubey
27
Thank you
Saurabh Dubey
28
doc_837344079.ppt