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All about consumer behavior
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CONSUMER BEHAVIORIntroduction and OverviewLets cracks it and lets be at it
Consumer
Behavior
ShopperBuyer
CustomerUser
PurchaserEnd userClient
PerformanceActionsdeeds
activitiesmannersConduct
work
SO WHAT EXACTLY IS CONSUMER BEHAVIOR ?
What is consumer behavior ?
The Study of: How come, What When Why Where
People buy / consume / believe / communicate about a product / service / anything of value to organisation
Cont’d..
What they buy? Why they buy it? When they buy it? Where they buy it? How often they buy it? How often they evaluate it? How they evaluate it after the
purchase? The impact of such evaluations on
future purchases? How they dispose it?
Consumer Behavior – Definition “How individuals, groups, and organizations select,
buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.”
Consumer behavior from
Sale perspective (Before sale perspective)
Product usage perspective Word of mouth perspective / Other
Marketing perspective post sales After sales perspective Cross sell / repeat sale perspective
Consumer behavior elements of interest
Consumer Consumer market in terms of
Geography Target audience Demographics Consumption
Sellers Political factors and many more elemets
What is consumer market ?
Consumer market is all about the Place part of marketing
Market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange… Where consumer’s buy product
Types of Market Form Scale : Geographical Types of participants Types of goods and services And many more..
Lets see how consumer market is imp..
Consumer Market
National level
Consumer market
Various other types of market which we are going to incorporate in our study / course Form type of market
Physical retail markets Non physical markets
Style of business Brokerage Intermediary market
Basis types of goods and services Financial markets Service industry Goods of all types like food, clothes, property, etc.
Consumer market
Various other types of market which we are going to incorporate in our study / course Form type of market
Physical retail markets Non physical markets
Style of business Brokerage Intermediary market
Basis types of goods and services Financial markets Service industry Goods of all types like food, clothes, property, etc.
WHY ARE WE LEARNING CONSUMER BEHAVIOR ?
Its simple ! Because we want,to encash products which consumer want
and not, products whichconsumer may, does not, or would
think about , etc .
To make selling easy and generate profits from consumer
Lets take a Marketing outlook About managing profitable customer
relationships Attracting new customers Retaining and growing current customers
CB impacts perceived Value
Your product can have demand if it is costly
Ur product can be costly and yet be considered lower value
Value perceived corresponds to consumer behavior
Product performance
Customers perceived performance
Performance meets expectation
Customer satisfaction is factor of product performance
This is dependent on consumer’s behavior
So marketing is..
Process of building profitable customer relationships by creating value for customers and capturing value in return
Hence the new model is..
Every phase has consumer behavior……
NEED TO STUDY ?
‘You cannot take the consumer for granted any more’
Therefore a sound understanding of consumer behaviour is essential for the long
run success of any marketing program
Why is this important?
Out of 11000 products launched by 77 companies, only 56% are present five years later – Kuczmaski & Associates
Only 8% of new product concepts offered by 112 leading companies reached the market. Out of this 83% failed to reach marketing objectives – Group EFO Ltd., Marketing News, Feb 1, 1993, Pg 2
Why Study Consumer Behavior?
To implement the Marketing Concept . . a plan to influence buyer – seller exchanges to meet organizational goals
To understand complex influences on consumption processes
To increase a manager’s confidence to predict consumer responses to their marketing strategy
To avoid “the Self-Reference Criterion”
Cultural factors
Culture
Sub - culture
Social Class
Motivation
Perception
Learning
Beliefs & attitudes
Psychological Factors
Initiator
Influencer
Decider
Buyer
User
Gatekeeper
INITIATOR first identifies the need to buy a particular product or service
INFLUENCER views influence the buying centre's buyers and deciders
DECIDER ultimately approves all or any part of the entire buying decision -- whether to buy, what to buy, how to buy, and where to buy;
BUYER holds the formal authority to select the supplier and to arrange terms of condition;
USER consumes or uses the product or service;
GATEKEEPER controls information or access or both, to decision makers and influencers.
Buying Roles
Buying Behavior
The decision process and acts
of people involved in buying
and using products.
Complex
Dissonance - Reducing
Habitual
Variety Seeking
The Wheel of Consumer Behavior
Issues During Stages in the Consumption Process
Psychological factor
motivation
Motivation
Driving force within individuals that impels them to action Motivation has been considered as emotion
in consumer behavior leading to some action
Marketers have to en-cash on this emotion by not going against it but adapting to it
Motivation is due to some issue and leads to some kind of gratification
Unfulfilled needs, wants and desires
Tension Behavior
Personality perception learning attitudes
Goal or need fulfillment
Drive
Tension reduction
Needs / wants / desires
Innate needs / primary needs – roti, kapda aur makaan
Acquired needs / secondary / psychological
More is coming in Maslows needs Could be positive or Negative as well
Psychological Needs
Safety Needs
Social Needs
Personal Need(Self Actualisation Esteem)
Goals
Product specific goals – associated with brand
Generic goals – no brand association Positive goal – towards – is one towards
which behavior is directed Negative goal – away - is one towards
which behavior is directed away
Product specific goal – associated with brand
Generic goal- No brand association
Positive goals
Negative goals
ATTITUDE
A learned predisposition to behave in a consistently favorable or unfavorable manner with respect to a given object
Learned deposition- state of mind regarding something; inclination: a disposition to gamble.
Functions of Attitudes
Utilitarian: Do the products provide some benefit or reward?
Value-expressive: Does the product say something about who I am or would like to be? Is it self-expressive.
Ego-defensive: Does the product protect my self-esteem Does it help overcome any self doubts
Knowledge function: does the product help me to organize the information – does the product meet the needs for order and structure
Tricomponent Attitude Model
COGNITIVE COMPONENT The knowledge and perceptions that are
required by a combination of direct experiences with the product and related information about the very product from various sources. This knowledge and resulting perceptions commonly take the from of belief. This belief ultimately culminates into attitude towards buying the product.
AFFECTIVE COMPONENT A consumer’s emotions or feeling about a particular product or brand constitutes the affective component of an attitude. These emotions or feeling with the product subsequently results into brand loyalty sometimes.
CONATIVE COMPONENT Conative component is concern with the likelihood or tendency that an individual will undertake a specific action or behave in a particular way with regard to the attitude object. Conative component is frequently treated as an expression to of the consumer’s intention to buy.
MULTI ATTRIBUTE ATTITUDE MODELS
Attitude models that examine the composition of consumer attitudes in terms of selected product attributes or beliefs.
Multiattribute attitude models portray consumers' attitudes with regard to an attitude object (e.g., a product, a service, a direct-mail Catalog, or a cause or an issue) as a function of consumers' perception and assessment of the key attributes or beliefs held with regard to the particular attitude object.
3 TYPES
Attitude Toward Object:The attitude-toward-object model is
especially suitable for measuring attitudes toward a product (or service) category or specific brands.
EXAMPLE:
Attitude Toward Behavior:The attitude-toward-behavior model is the
individual's attitude toward behaving or acting with respect to an object rather than the attitude toward the object itself.
ADs
It’s important for marketers to know the individual’s attitude about the act of purchasing a BMW (attitude toward behavior) rather than to know about his attitude toward the car (attitude toward object). This seems logical for a consumer might have a positive attitude towards an expensive BMW but a negative attitude towards his prospects for purchasing the vehicle.
Theory-of-reasoned-action model
To put the definition into simple terms: a person's volitional (voluntary) behavior is predicted by his attitude toward that behavior and how he thinks other people would view them if they performed the behavior. A person's attitude, combined with subjective norms, forms his behavioral intention
Depends on Attitude, subjective Norms and Behavioral Intention
Theory-of-reasoned-action model
THE TRYING -TO -CONSUME MODEL
The theory of trying to consume is designed to account for the many cases in which the action or outcome is not certain but instead reflects the consumer's attempts to consume (i.e., purchase).
A classic example of trying ("got") to consume is attempting to diet and lose weight.
Attitude-Toward-The-Ad Models:
As the model depicts, the consumer forms various feelings (affects) and judgments (cognitions) as the result of exposure
to an ad. A positive relationship between attitude toward the
advertisement and purchase intention for each of the advertised products; that is, if consumers "like" the ad, they are more likely to purchase the product.
The Marketer’s Challenge
Deep seated attitudes are internalised and become part of the person's value system
Attitudes are difficult to change because
they are so important to the individual