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Consumer behavior has changed dramatically in the past
decade.
For example, the use of the Internet has allowedconsumers to order online, receive information without leaving
their homes, and sell products without advertising in the local
newspaper.
Buying Behavior is the decision processes and acts of people
involved in buying and using products
Concept
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CONSUMERCONSUMER
An individual who buys products or services for personal
use and not for manufacture or resale.
There is increasing use of the term "consumer" rather than"customer.
The consumer drives the economy by purchasing goods
and services from vendors.
` Action of an individual towards a situation
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CONSUMER BEHAVIOR
Consumer Behavioris the study of-
People Do Or Do
Not Buy Product
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CONSUMER BEHAVIOR
Study of when, why, how, and where people do or do not
buy product.
It attempts to understand the buyer decision making
process, both individually and in groups.
Behavior that consumers display in searching for,
purchasing, using, evaluating, and disposing of products
and services that they expect will satisfy their needs.
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Consuming Entities Kinds
The personal consumer
Products are bought for
final use by individuals(referred to as end users
or ultimate consumers).
The organizational consumer
The organizational consumer
includes profit and not-for-profit businesses, government
agencies, and institutions, all of
which must buy products,
equipment, and services in
order to run their organizations.
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OrganizationalInfluenceConsumerInfluence
Obtaining Consuming Disposing
CONSUMER
BEHAVIOR
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Consumer Behavior reflect more than how a product to be acquired
by a single person at a point of time.
CASESTUDY
Think of some marketing strategies & Tactics that try to
influence one or more dimension of consumer behavior with
Reference to Consumer Durable.
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StimuliInformation
SearchConsumer
DecisionMaking
Response
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Typical Expenditure
ofIndividual Household
S.No Particular %
1 Groceries 34
2 Utilities 13
3 Investment 12
4 Personal Grooming 9
5 Entertainment 86 Children 7
7 Travel 6
8 Loan/Taxes 6
9 Other Expense 5
11
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34
1312
9
8
66
5
% wise
Groceriesutilities
investment
personal grooming
Entertainmentchildren
Travel
Loan/Taxes
Other Expense
Typical Expenditure of Individual Household
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A new product must satisfy consumer needs, not the needs and
expectations of management.
Understanding and adapting to consumer motivation and behavior is
not an option it becomes a necessity for competitive survival.
STATEMENT
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4AA batteries include
Red indicator light on front
will blink to indicate the
dispenser is activated.
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Background:
Cadbury dominates the chocolate market in India with a 70%
share of the market.
Cadbury Dairy Milkis its largest chocolate brand which
accounts for a third of every chocolate bar consumed.
Cadbury DairyMilk
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The Task:
In 2005 the task before Cadbury Dairy Milkwas to increase its consumerfranchise.
The Strategy:
The task was to get the youth audience to adopt Cadbury Dairy Milk inthe sweet eating or " muh meetha karna" moments
The campaign of " Jab Pappu Pass Ho jaye, Kuch Meetha Ho jaye"
captured the thought of celebrating a moment of delight with Dairy Milk
A campaign was built around the idea of how "pappu" celebrated
passing his exams with Dairy Milk
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TheMedia:
Amulti-media campaign was launched on TV, Internet, Radio andOutdoor
The key was how do own the moment of " pappu passing his exams" in
the media space
An innovative tie -up with Reliance webworld was executed, wherein
students across 66 examination boards across the company could access
their results on Rworld through their Reliance mobiles. If they passed a
message congratulating them on their moment of delight from DairyMilk was displayed
The Results:
The activity contacted 20 MN students across the country and was
awarded a Bronze Lion at the Cannes Media awards in 2005
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Application of
CB
For Formulating Integrating Strategies.
Target Market Selection.
Market Opportunities.
Marketing Mix determination.
Comparative Advertisement.
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Factor Influencing Consumer Behavior
Consumer purchases are influenced strongly
Four Factors-
Cultural Factor Social Factor
Personal Factor Psychological Factor
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Characteristics Affecting Consumer Behavior
Buyer
Psychological
Personal
Social
Culture
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Factors Affecting Consumer Behavior: Culture
Social Class
People within a social classtend to exhibit similar buyingbehavior.
Occupation
Income
Education
Wealth
Most basic cause of a person's wants andbehavior. Values Perceptions
Subculture
Groups of people with sharedvalue systems based on commonlife experiences.
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Factors Affecting Consumer Behavior: Social
Groups
Membership
Reference
Family
Husband, wife, kids
Influencer, buyer, user
Roles and Status
Social Factors
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Factors Affecting Consumer Behavior:Personal
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Cognitive thinking process:
a) Perceptionb)Attitude
c) Need & Motives
Consumer Personal
Characteristics:
a) Demographyb) Lifestyles
c) Personality
Situational Variable Influence:
a) Purchase Occasionb) Market Communication
c) Product Positioning
d) Stores Patronage & Shopping
Behavior
e) Sales Personnel Influence
Culture:a) Values, belief
b) Cross Cultural Influence
c) Sub Cultural Influence
Social:
a) Social Class Structureb) society
Influential Group:
a) Reference Group
b) Familyc) Opinion
d) Innovation
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Four S's of experience gift giving
Surprise
Suspense
Sacrifice
Sharing
Consumer Gifting Behavior
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ConsumerGifting Behavior
TITLE DEFINITION
Inter-Group Group giving a gift to another group.
Inter-Category An Individual giving a gift to a group/A groupgiving a gift to a individual.
Intra-Group Group giving gifts to itself or its members.
Inter-Personal Individual giving a gift to another individual.
Intra-Personal Self-Gift.
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Diversity of Consumer Behavior
Customer
Need to understand the term Customer/ Consumer.
1990s
From the consumers point of view : Consumers today are in a tough
spot. Today, in the highly developed & technologically advanced
society, the consumers have a great deal of choices & options (and often
very close & competing) to decide on.
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Diversity of Consumer Behavior
From the marketers point of view : The purpose of marketing is to
sell more stuff to more people more often for more money in order to
make more profit.
For the consumers are today more informed, more
knowledgeable, more demanding, more discriminating.
The marketers have to earn them or win them over.
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Consumer Research
Part of Market Research in which the preference, motivation
and buying behavior of the targeted customer are identified
To determine as toWHY consumers made the purchase decisions.
To understandHOW consumers would react to promotional messages.
Formulating marketing strategies & in developing appropriate
promotional messages.
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Value of Consumer Research
Provides information on how the consumers are behaving at the
market place.
It can be used as a means of identifying future consumer needs ormarketing opportunities
To get in to customer mind
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Quantitative Research is descriptive in nature & is used by researcher to
understand the effect of various promotional input on the
consumer, thus enabling the marketer to predict consumer behavior.
The Research method used:
Experiment
Survey Technique
Observation
Consumer Research Paradigm
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Consumer Research Paradigm
Qualitative research method are used by researcher who are interested in
act of consumption rather than act of buying. These technique are
administered by highly trained interviewer analyst who also analyze
the findings. Research focus on understanding consumer experience
These Research include:
Depth Interview
Focus Group
MetaphorAnalysis
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Quantitative vs. Qualitative
Quantitative Research:
Structured research
instruments
Larger sample size
Results easily replicated
Information about how often
orhow many
Less in-depth, flexible
Qualitative Research:
Less structured instruments
Smaller sample size
Results difficult to replicate
Information about why and
how
More in-depth, flexible
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Quantitative vs. Qualitative
Quantitative Research:
Researcher should
know clearly what he /she is looking for
Statistical analysis
Qualitative Research:
Researcher may only
know roughly what he /she is looking for
Analysis is subjective
Can be used to
determine the focus offollow-up, quantitative
inquiries
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