Marketing

Management
BBA Semester – III

Presented by:
Dr. Dignesh S. Panchasara
M.Com. (MM), M.Com. (HRM), GSET, Ph.D.
Assistant Professor (TAP),
Department of Commerce and Business Management
Faculty of Commerce
The Maharaja Sayajirao University of Baroda
CONSUMER
BEHAVIOUR
Introduction
 Marketing process, strategies and programmes are
revolving around consumer.
 But to grab the attention of consumers and getting
desired response from the target group is a very
difficult task.
 It is rightly said that consumer is not a static target,
but is a moving target and there are many
dimensions of consumer behaviour.
 Consumer being a social element is not free from
many external influences like social, cultural,
economical, etc.
Introduction
 The study of consumer behaviour is a vast field.
 To unlock the codes of consumer’s mind, extensive
researches have been conducted in the past.
 Modern consumers are highly demanding and complex
to understand and exhibit unpredictable behavioural
pattern.
 Hence, it is very essential to study the factors which will
make consumers move in a particular direction.
 To sustain in competitive environment today marketers
must have complete knowledge of their target
segment, behavioural pattern and factors governing
buying decisions.
Concepts
 Consumers are those individuals who purchase
commodities for deriving utilities and using them to
satisfy their needs. •
 Behaviour is defined as “the series of innumerable
responses portrayed by individuals.”
 Consumer behaviour is defined as that process by which
individuals or groups select, purchase, obtain,use,adopt
or dispose off the products to satisfy their needs and
desires.
 It is a sum total of all the actions directly involved in
obtaining, consuming and disposing off products both
goods & services including the decision making process
which proceeds and follow these actions.
Concepts
 The consumers or buyers are the highly complex
entity in the field of marketing management.
 Their needs and desires are innumerable and may
vary from –
◦ Security needs
◦ Some needs are latent (hidden)
◦ Some needs are manifested (obvious)
◦ Some needs are dominant (main)
 Some needs of an individual can be met with
money
 Many needs remained beyond realization.
What is meant by Consumer
Behavior?
 ‘Consumer Behavior’ involves studying the
processes a consumer uses to make purchase
decisions, to dispose of purchased goods or
services and study the factors that influence
purchase decisions and the use of products.
CONSUMER BUYING
PROCESS / BUYING
DECISION PROCESS
Consumer Buying Process /
Buying Decision Process
 To understand consumer behaviour, it important to
first understands consumer buying process.
 Buying process represent different stages through
which the consumer goes through when he has to
purchase something.
 Consumer has a bundle of desires, needs, out of
which the pressing needs move to the top.
 This is known as need recognition.
 After this consumer searches relevant information
related to product on the basis of which decision is
taken and purchase is made.
Consumer Buying Process /
Buying Decision Process
 After consuming the product the post
purchase behaviour is evaluated and a
dissatisfied customer again has an unsatisfied
need, and the process starts again.
 Each stage in the consumer buying process is
a challenge to the marketer, for which he must
have a careful understanding of behaviour
before he develops the marketing
programme.
Consumer Buying Process /
Buying Decision Process
Consumer Buying Process /
Buying Decision Process
 1. Need Recognition:
◦ The starting point of the buying process is an unsatisfied need.
◦ It is the perceived want or desire that paves the way for next
stage.
◦ As we know every customer has bundle of desire or needs,
many of which are not satisfied.
◦ When such unfulfilled needs are identified, the buying process
starts.
◦ It is important to note that need recognition should be of those
needs without whose satisfaction, consumer is restless and
under tension.
◦ He should feel that he has desire or need which has arisen and
which needs to be satisfied.
Consumer Buying Process /
Buying Decision Process
 Dissatisfaction from the existing product or service may also
give rise to restlessness and again a need to satisfy the urge.
 Need or wants arise due to internal or external situations.
 A person may be having deep rooted desires which may
suddenly become dominant and pressing under conducive
environment.
 Needs may also arise due to external situations where
consumer is exposed to different advertisements and people.
 It is the intensity or urgency of wants which decides the speed
at which it has to be satisfied.
 The pressing or urgent wants are first satisfied as resources are
limited.
Consumer Buying Process /
Buying Decision Process
 2. Information Search:
◦ For satisfying the need which has aroused, he has to
look for suitable product which will best satisfy his
needs.
◦ For this, consumer is willing to gather more information
about the product.
◦ Alternative sources are there from where information
can be gathered.
Consumer Buying Process /
Buying Decision Process
◦ He may contact his family, friends, colleagues,
neighbours who are personal sources, or he may look
for commercial sources like – advertisement, retailers
etc. or he may look at other people which constitute
the public source.
◦ In this way before purchasing the product, he tries to
collect the relevant information, as he is willing to
satisfy this need.
Consumer Buying Process /
Buying Decision Process
 3. Evaluation:
◦ The desire to satisfy need, gives way to evaluation
stage where the consumer try to evaluate the
information he has received in the pre- purchase
stage of information search.
◦ This is a stage of mental trial of the product by
consumer.
◦ On the basis of the information received, he has
number of alternatives before him, out of which he
has to choose one.
Consumer Buying Process /
Buying Decision Process
◦ His selection will be based on the relative worth of
each alternative i.e. how suitable the product will be
to satisfy his wants i.e. product’s want satisfying
potential.
◦ On the basis of factors like- product attributes, brand
image, facilities, convenience, etc. he accepts or
rejects the alternatives.
◦ His final decision to buy will depend upon the relative
strength of the positive intention to buy.
Consumer Buying Process /
Buying Decision Process
 4. Selection of Alternatives and Purchase
Decision:
◦ The positive decision or evaluation of product leads to
purchase decision.
◦ This decision implies consumer’s commitment for a
product or a service.
◦ Here he purchases the product and exchange
process is thus complete.
◦ Purchase can be trial purchase or adoption
purchase.
Consumer Buying Process /
Buying Decision Process
◦ Trial purchases are mostly done for non-durable
goods where the consumer buys the goods for the first
time.
◦ For consumer durable goods, adoption purchase is
done because; these items are not purchased
frequently.
◦ On consuming the goods, consumer may be satisfied
or dissatisfied.
◦ Satisfaction leads to repeat purchase.
Consumer Buying Process /
Buying Decision Process
 5. Post Purchase Reaction / Feedback:
◦ This stage is concerned with the behaviour of the
consumer after he consumes the product.
◦ This post-purchase reaction may be positive or negative.
◦ If consumer is satisfied, repeat purchase may be there or
he may recommend the product to other people.
Dissatisfaction leads to anxiety and makes a person
restless.
◦ He has a problem before him and again he tries to solve
it by going for other alternative products or services.
Consumer Buying Process /
Buying Decision Process
◦ A marketer help the buyer feel good about the
product purchased.
◦ In order to reduce his anxiety about the product, the
after-sale services are very important as it develops
loyalty, increases sales and profit.
FACTORS AFFECTING
CONSUMER BEHAVIOUR
Factors Affecting Consumer Behaviour

1. Socio-cultural factors
2. Psychological factors
3. Personal factors
4. Economic factors
Factors Affecting Consumer Behaviour
 Socio-cultural factors
 These factors are major causes of buyers behaviour
and shape choice and preference of a consumer.
 It can be represented as:-
◦ Culture
◦ Social class
◦ Family
◦ Occupation
◦ Reference groups
Factors Affecting Consumer Behaviour
 Culture
◦ Culture is an important factor which affects consumer
behaviour.
◦ Beliefs, perceptions, traditions and attitudes are
moulded by culture.
◦ Sub-culture is the specific identification of various groups
and is a part of culture.
◦ In India, various states represent different cultures with
their specific tastes and preferences and marketers have
to take all these factors into account while designing
marketing strategy.
Factors Affecting Consumer Behaviour
 Social class
◦ Social class means a division of society into homogeneous
subgroups based on income level and caste, education other
categories.
◦ Each social class works as a segment and represents specific
characteristics related to food habits, dressing patterns,
recreational preferences, etc.
◦ The set of preferences differ as they are divided on the basis of
many variables like occupation, income, education and value
system.
◦ The marketers have to recognize differences of such social
class in terms of their brand preferences, media habits, price
sensitivity and then formulate marketing strategy.
Factors Affecting Consumer Behaviour
 Family
◦ Family is the main institution from where consumer
learns many things.
◦ Attitude, life style, opinions, etc are an outcome of
family orientation.
◦ At times parent’s choices related to product and
brand loyalty, involvement in buying decisions, etc.
do affect behaviour of buyers.
◦ Marketers have to analyze role and relative influence
of family members on consumer behaviour.
Factors Affecting Consumer Behaviour
 Occupation
◦ Consumption pattern of people is also influenced by
occupation.
◦ There is a vast difference between choices and
preferences of blue collar workers and white collared
job holders.
◦ Luxury goods marketer and leading brands focus on
this target market.
◦ Product pricing, positioning, etc are to be tailored
according to the choices of various occupations.
Factors Affecting Consumer Behaviour
 Reference groups
◦ Reference group is a source of information and
influence for consumers.
◦ It includes family members, friends, relatives,
celebrities, experts, etc.
◦ They are also called opinion leaders.
◦ Marketers have started using star celebrities because
of attachment and influence of celebrities on
consumers.
◦ Marketers try to reach opinion leaders, early adopters
and innovators to appeal to the mass.
Factors Affecting Consumer Behaviour
 Psychological factors
◦ Buying behaviour is influenced by several
psychological factors.
◦ The main among them are motivation, perception,
attitude and beliefs.
◦ It is difficult to measure the impact of psychological
factors as they are internal, but are much powerful to
control persons’ buying choice.
◦ Manager must try to understand probable role the
factors play in making buying decisions.
Factors Affecting Consumer Behaviour
 Motivation
◦ Among psychological factors, major factor is need to
buy a product.
◦ In other words, what motivates consumers to buy
particular product or service.
◦ Marketers should identify satisfiers and motivators of
the product.
Factors Affecting Consumer Behaviour
 Perception
◦ Consumer brand preference is always judged by
perception of consumer.
◦ It is a process by which people give meaningful
responses to external stimuli.
◦ Marketer should try to understand perceptions and
design strategies accordingly.
Factors Affecting Consumer Behaviour
 Attitude and beliefs
◦ Many people have some thought or image regarding
object, person or a product.
◦ It is called belief, while attitude means favourable or
unfavourable emotional feeling and action towards a
particular person, product or service.
◦ The marketers should try to tailor marketing practices
keeping in mind this psychological factor.
Factors Affecting Consumer Behaviour
 Personal factors
 Personal factors include:
◦ Age and life cycle stage
◦ Life style
◦ Personality and self concept
Factors Affecting Consumer Behaviour
 Age and life cycle stage
◦ Age and life cycle stage are key determinants of
buying decision.
◦ People prefer different products during different stage
of life cycle.
◦ Preference for food, clothing, etc. change as per
change in age.
◦ Marketers have to design segmentation strategy on
the basis of age wise classification.
Factors Affecting Consumer Behaviour
 Life style
◦ Life style refers to the pattern of living, which can be
displayed in persons, clothing, activities, brand
choice, interests and opinions.
◦ People inclined towards lavish life style prefer
branded garments, fashion accessories, branded
perfumes and other luxurious products.
Factors Affecting Consumer Behaviour
 Personality and self concept
◦ Personality is a set of attributes a person possesses.
◦ Various kinds of personality types can be identified
like aggressive, submissive, dynamic, adventurous,
etc. while self concept denotes the image a person
carries about himself.
◦ A person consumes products which suit to his
personality attributes.
Factors Affecting Consumer Behaviour
 Economic factors
 Following are the economic factors that have
a direct impact on consumer behaviour:
◦ Level of income
◦ Demand
◦ Willingness to spend
Factors Affecting Consumer Behaviour
 Level of income
◦ Higher the income level, higher the capacity of the
consumer to buy.
◦ The important element of this factor is availability of
disposable income, which decides demand of the
product.
◦ The major chunk of the market for specific products is
high income group.
◦ Especially in Indian market, marketers have designed
separately strategies to suit different income class.
Factors Affecting Consumer Behaviour
 Demand
◦ Consumer’s attitude and preference are also
determined by the urge or demand for the product.
◦ If product is high in demand, then readiness to buy
the product is also high.
Factors Affecting Consumer Behaviour
 Willingness to spend
◦ There is a vast difference in willingness to consume
among consumers of past and present.
◦ Today’s youngsters are fashion and style seekers.
◦ They are willing to spend money on many new
brands.
◦ They are also early adopters.
SIGNIFICANCE OF
CONSUMER BEHAVIOUR
Significance of Consumer Behaviour
 Formulating Marketing Strategy
◦ Marketing strategy is a set of activities, programmes and
procedures that are carried out to grab target market.
◦ The study of consumer behaviour facilitates deep insight
regarding, what, why and how buying decisions are
taken.
◦ Which are the factors which drive behaviour of
consumer.
◦ It also explains price sensitivity, product preferences and
choices, media habits, etc.
◦ These all facilitate in formulating marketing strategy.
Significance of Consumer Behaviour
 Consumer Satisfaction
◦ The motive of every organization is to satisfy consumer
and achieve profit target.
◦ Through study of consumer behaviour, marketer can
understand target market in a much better way.
◦ The actions based on research of consumer
behaviour are closer to the expectations of
consumer.
◦ Thus, there is great possibility of consumer satisfaction.
Significance of Consumer Behaviour
 Facing Competition
◦ The modern weapon to face the competition is
information regarding market.
◦ Today, survival of any company depends on quicker,
faster and superior products and services.
◦ Hence, company which knows consumer better can
serve them better and it will enhance it’s competitive
strength.
Significance of Consumer Behaviour
 Scope For Innovation
◦ Consumer behaviourial discipline not only highlights
present needs of consumers but also analyze future
and latent (hidden) needs of market.
◦ The study of market needs can open new avenues of
market opportunities.
 Presented by:
Dr. Dignesh S. Panchasara
M.Com. (MM), M.Com. (HRM), GSET, Ph.D.
Assistant Professor (TAP),
Department of Commerce and
Business Management, Faculty of
Commerce, The Maharaja Sayajirao
University of Baroda
E-Mail: [email protected]
Mobile No.: +91 7874122777