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Consumer Behaviour - Class

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M Manjunath
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60 views

Consumer Behaviour - Class

Presentations

Uploaded by

M Manjunath
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 28

CONSUMER

BEHAVIOR
Dr M Manjunath
Shettigar
What is Consumer Behavior?

The study of how consumers

 Select
 Purchase
 Use
 Dispose of

goods and services in the process of


satisfying their personal and household
needs and wants.
Consumer Behaviour

The behaviour that consumers


display in searching for,
purchasing, using, evaluating,
and disposing of products and
services that they expect will
satisfy their needs.

1-3
Why the focus on ‘consumer
behavior’ in marketing?
 Marketers came to realize that consumers did not
always act or react as marketing theory suggested
they would
 Consumers rejected mass-marketed products,
preferring differentiated products that reflected their
own special needs, personalities and lifestyles
 Even in industrial markets, where needs are more
homogeneous than consumer markets, buyers
exhibited diversified preferences and less
predictable purchase behavior
Other factors that contributed to the
growing interest in consumer behavior

 The accelerated rate of new product


development
 The consumer movement
 Public policy considerations
 Environmental concerns
 The opening of national/ international markets
throughout the world
Consumer behavior is more than just
purchasing

Consumer Behavior involves


 Exposure to the media

 Browsing

 Influencing others

 Being influenced by others

 Complaining about and returning products

 Disposing off the product post-use


Economics alone does not explain
consumer behavior
 Early theories based on notion that
individuals act rationally to maximize their
benefits (satisfaction) from purchasing
 Later research discovered that consumers
are just as likely to
 Purchase impulsively
 Be influenced by family, friends, advertisers and role
models
 Be influenced just as strongly by mood, situation and
emotion
Consumer behavior is an Interdisciplinary
Field

Psychology Anthropology
Consumer
Behavior
studies

Social
Psychology Economics

Other Fields
The Marketing Concept
 An operating philosophy of business in which the
consumer is the focal point of the firm’s activities
 Embodies the view that industry is a customer-
satisfying process, not a goods-producing process (the
“selling concept”)
 Key assumption is that, to be successful, a company
must determine the needs and wants of specific target
markets and deliver the desired satisfactions better
than the competition
Why Study Consumer Behavior?

 Marketing applications of
consumer behavior:
 Market segmentation
 Target market selection
 Positioning
 Product or service decisions
 Pricing decisions
 Distribution decisions
 Promotion decisions
Why study consumer behaviour?

 Understanding consumer behaviour


will help you become better marketers
as it is the foundation for
 Segmenting markets
 Positioning products
 Developing an appropriate marketing
 continued
Why study consumer behaviour?

 Knowledge of consumer behaviour is


essential for non-profit organizations
 Non profits have different customers to
please
 Donors, users, volunteers, general

public, government
 continued

1-12
Why study consumer behaviour?
 Public service initiatives have to be
based on an understanding of
consumer behaviour

 Most government initiatives (e.g.,


antismoking campaigns) need a
knowledge of consumer behaviour to
succeed

 continued

1-13
Why study consumer behaviour?

 Better understanding of our own consumption


behaviour

Copyright © 2006 Pearson


Education Canada Inc. 1-14
1-15
Consumer Decision Making
Process
Problem Recognition

Information Search
Cultural, Social,
Individual and
Psychological Evaluation
Factors of Alternatives
affect
all steps
Purchase

Postpurchase
Behavior
1: Problem Recognition

 Result of an imbalance b/t actual and


desired states
 What is a need?
 What is a want?
 How to recognize unfilled wants?
2: Information Search

 Internal Search – recalling past


information stored in memory
 External Search – seeking information in
the outside environment
 Private (non marketing sources)
 Public (non marketing sources)
 Marketing controlled sources
3: Evaluation of Alternatives

 Consideration set
 Analyze product attributes
 Use cut off criteria [pros/cons]
 Multi-attribute models
4: Purchase

 To buy or not to buy…


 Marketing determines which attributes are
most important in influencing a consumers’
choice
5: Post Purchase Behavior

 Cognitive dissonance:
 Did I make a good decision?
 Did I buy the right one? Get a good value?
 Marketing minimizes through:
 Effective communication
 Follow up
 Guarantees
 Warranties
Types of Buying Decisions

 Complex buying behavior


 Dissonance reducing buying behavior
 Habitual buying behavior
 Variety seeking buying behavior
Factors Influencing
Buying Decisions

Cultural Social
Factors Factors CONSUMER BUY /
DECISION-
MAKING DON’T BUY
Psycho- PROCESS
Individual logical
Factors Factors
Cultural Factors

 Culture: set of values, norms, attitudes


& other meaningful symbols that shape
human behavior and their artifacts or
products of that behavior as they are
transmitted from generations.
 Subcultures
 Social class [based on $, education and
job]
Social Factors

 Social influences
 Reference groups
 Direct: primary and secondary groups
 Opinion leaders
 Family
Individual Factors

 Gender
 Age
 Family Life Cycle
 Personality
 Self concept
 Lifestyle
Psychological Factors
 Perception: process by which people
select, organize and interpret stimuli
into a meaningful picture
 Motivation
 Learning
 Values, Beliefs & Attitudes – what can
marketing influence?
Motivation and Maslow
Self-
Actualization
Esteem

Social

Safety

Physiological

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