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An Introduction
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Those activities directly involved in obtaining
, consuming and disposing of products and
services, including the decision processes
that precede and follow these actions
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This study draws on concepts from
various other disciplinesy Psychology
y Sociology
y Anthropology
y Economics
y Marketing
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You cannot take the consumer forgranted any more
Therefore a sound understanding of
consumer beh
aviour is essential for th
elong run success of any marketingprogram
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Perspectivesy Logical Positivism
1. Understanding and predicting consumer behaviour
2. Cause and effect relationships that governpersuasion and/or education
y Post Modern to understand consumptionbehaviour without any attempt to influence it
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Why is this important?y Out of 11000 products launched by 77 companies, only
56% are present five years later Kuczmaski & Associates
y Only 8% of new product concepts offered by 112leading companies reached the market. Out of this 83%
failed to reach marketing objectives Group EFOLtd.,Marketing News, Feb 1, 1993, Pg 2
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MEET THE NEW CONSUMER
and smile when you do becauseshe is your boss. It may not be
the person you thought you
knew. Instead of choosing from
what you have to offer, she tells
you what she wants. You figure itout how to give it to her.-Fortune Editor
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Understanding and adapting to consumer motivation
and behaviour is not an option it becomes a necessity
for competitive survival
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A sales success occurs because demandeither exists already or is latent andawaiting activation by the right marketing
offering
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Dominant forces shaping Consumer
Research
y Factors that move an economy from Production-driven
to Market-driven
y Level of sophistication withwhichhuman behaviour isunderstood in psychology and other behavioural
sciences
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Environmental factors that affect the
marketing challengey Extent to which the supply of valid products and
services exceed consumer demand
y Ability to communicate with customers quicklyand accurately
y Existence of multiple avenues of distributionquickly and economically
y Extent to which marketers can influence to induce
distributors to comply with overall marketingstrategy
y Economic growth, both nationally and globally
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Motivational Researchy It seeks to learn what motivates people in making
choices. The techniques are such as to delve into theconscious, subconscious and the unconscious.
y women dont buy cosmetics, they buy hope.
y women bake cakes out of the unconscious desire togive birth
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Marketers must contend with small changingsegments ofhighly selective buyers intent on
receiving genuine value at the lowest price
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All managers must become astute
analysts of Consumer motivation andBehaviour
Three foundations for marketing decisionsy Experience
y Intuition
y Research
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Marketers have to constantly innovate
after understanding their consumers to
strip out costs permanently by focusing
on what adds value for the customer and
eliminating what doesnt.
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Individualised Marketingy A very personal form of marketing that recognises,
acknowledges, appreciates and serves individuals who
become or are known to th
e marketer.y Data based marketing; DM
y Customized marketing
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understanding consumer
behaviour
y Stimulus ads, products, hungerpangs
y
Response physical/mental reaction to thestimulus
y Intervening variables mood, knowledge, attitude,
values, situations, etc.
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Overall Model of Consumer Behaviour
Self-Concept&
Learning
Decision ProcessesExternal Influences
Internal Influences
CultureSubcultureDemographicsSocial statusReference groups
Family
Marketing Activities
PerceptionLearning
MemoryMotivesPersonalityEmotions
Attitudes
Problem Recognition
Information Search
Alt Eval & Selection
Outlet select &
Purchase
Postpurchase
Processes
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Factors Affecting Consumer Behavior:
Psychological
Factors Affecting Consumer Behavior:
Psychological
PsychologicalFactors
Motivation
Perception
Learning
Beliefs andAttitudes
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Nee s
Esteem Needs(self-esteem, status)
Social Needs(sense of belonging, love)
Safety Needs(security, protection)
Physiological Needs(hunger, thirst)
SelfActualization
(Self-development)
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Nee s
Esteem Needs(self-esteem, status)
Social Needs(sense of belonging, love)
Safety Needs(security, protection)
Physiological Needs(hunger, thirst)
SelfActualization
(Self-development)
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Decisions
Complex
BuyingBehavior
Dissonance-
Reducing Buying
Behavior
Variety-
SeekingBehavior
Habitual
Buying
Behavior
HighInvolvement
Significant
differencesbetween
brands
Fewdifferences
between
brands
LowInvolvement
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Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
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The Buyer Decision ProcessStep 1. Need Recognition
External Stimuli
TV advertising
Magazine ad
Radio slogan
Stimuli in the
environment
Internal Stimuli
Hunger
Thirst
A persons normalneeds
Need RecognitionDifference between an actualstate and a desiredstate
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The Buyer Decision ProcessStep 2. Information Search
Family, friends, neighborsMost influential source of
information
Advertising, salespeopleReceives most information
from these sources
Mass MediaConsumer-rating groups
Handling the productExamining the productUsing the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
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The Buyer Decision ProcessStep 3. Evaluation of Alternatives
The Buyer Decision ProcessStep 3. Evaluation of Alternatives
Product AttributesEvaluation of Quality, Price, & Features
Product AttributesEvaluation of Quality, Price, & Features
Degree of ImportanceWhich attributes matter most to me?
Degree of ImportanceWhich attributes matter most to me?
Brand BeliefsWhat do I believe about each available brand?
Brand BeliefsWhat do I believe about each available brand?
Total Product SatisfactionBased on what Im looking for, how satisfied
would I be with each product?
Total Product SatisfactionBased on what Im looking for, how satisfied
would I be with each product?
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
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The Buyer Decision ProcessStep 4. Purchase Decision
Purchase IntentionDesire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpected
situational
factors
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The Buyer Decision ProcessStep 5. Postpurchase Behavior
Consumers Expectations of
Products Performance
Dissatisfied
Customer
Satisfied
Customer!
Products Perceived
Performance
Cognitive Dissonance
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Process
Awareness
Interest
Evaluation
Trial
Adoption
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of New Products
DivisibilityCan the innovation
be used on a
trial basis?
CompatibilityDoes the innovation
fit the values and
experience of thetarget market?ComplexityIs the innovation
difficult tounderstand or use?
RelativeAdvantage
Is the innovationsuperior to existing
products?
CommunicabilityCan results be easily
observed or describedto others?
ProductCharacteristics