CONSUMER BEHAVIOR Presented By:

Manoj Patel Asst. Professor

JHUNJHUNWALA BUSINESS SCHOOL

CONTENTS

Introduction

Definition

Applications of consumer behavior

-marketing strategy

-public policy

-social marketing

-better consumer

o Sales promotion techniques influencing consumer

behavior

o Factors influencing consumer behavior

-Demographic factors

-economic factors

-Social factors

-Cultural factors

-psychological factors

o Consumer purchase decision process

Models of consumer decision process:

-need/problem recognition -information search -evaluation of information -purchase decision -post purchase behavior Consumer’s response towards malpractices in the market

Importance of studying consumer behavior

Some case studies

Conclusion

INTRODUCTION

Consumers- The ultimate users of goods &

services.

Consumer behavior- Buying behavior of

ultimate users.

DEFINITION

“The study of individuals, groups, or orgs. & the process they

use to select, secure, use & dispose of products, services,

experiences or ideas to satisfy needs & impacts that these

processes have on the consumer & society”.

APPLICATION OF

CONSUMER BEHAVIOR

1. Marketing strategy

sales promotion, advertisements,etc

For eg; afternoon snacks advertisement.

2. Social marketing

To get consumers’ attention on product- for e.g. by

graphic pictures

3. Public policy

Involves getting ideas across to

consumers rather than selling something.

4. Better consumers

Studying consumer behavior sensitize

consumers to be vigilant consumer.

1. Free samples

2. Point of purchase display

3.Sales

4.Coupons

SALES PROMOTION TECHNIQUES INFLUENCING CONSUMER BEHAVIOR

5.Loyal reward offer

6.Scratch & win

offer

7.Money back offer

8.Contest & sweepstakes

9.Price pack deals:

i. Bonus pack, ii. Band pack

10.Promotional periods

FACTORS INFLUENCING CONSUMER BEHAVIOR

1. Demographic factors

Population size

(resource depletion,increase demand)

Birth & death rates

Working class

2.ECONOMIC FACTORS

o Income

o Family life cycle:

i.

Contd.

o Liquid assets

o Credit facilities

o Expenditure pattern & savings

3. Social factors Reference groups

-Diffusion process

Contd.

Family- Roles of members

Social status

4. Cultural factors Main culture

Sub-culture

5. PSYCHOLOGICAL FACTORS

Motivation

Perception

Learning

Belief & Attitude

Cognitive dissonance

Fig- Attitude

6. PERSONAL FACTORS

Age

Occupation

Lifestyle

Personality

Economic situation

---

In broad term factors can be classified in 2 categories:

-Internal factors:

-External factors:

GENERAL FACTORS INFLUENCING: FOOD ITEMS

Price

Taste / choice

Availability

Sales promotion

Peer group

Food habit

Time taken for preparation

Attractiveness of packages

Advertisements

Buying habits

Health status

Label

Brand name

CLOTHING ITEMS

Comfort

Choice

Colour

Style

Fashion

Price

Availability

Texture

Contd.

Clothing budget

Climate

Occassion

Ease of care

Quality

Reputation of the brand

Advertisement

Profession

Habit

CONSUMER DURABLE GOODS

Colour

Price

Comfort

Quality

Need

Budget

Fashion

Sales promotion

Advertisement

Peer group

Social recognition

Price

Suitability

Availability

Colour

Advertisement

Packaging

Brand

Peer group

Fashion

Place of manufacture

Ingrdients of the product

Social recognition

Sales promotion

COSMETIC PRODUCTS

1. Need recognition/ problem recognition/

recognition of an unsatisfied need

2. Information searching

3. Evaluation of alternatives

4. Purchase decision

5. Post- purchase behavior

Consumer purchase decision process

5 STAGE MODEL OF BUYING PROCESS

1.Need recognition

Need

Recognition

Memory

EXTERNALTAL

INFLUENCES

•Culture

•Social class

•Personal influences

•Family

•situation

INTERNAL

INFLUENCES

•Consumer resources

•Motivation & involvement

•Knowledge

•Attitudes

•Personality, values

& lifestyles

MODEL OF SEARCHING

INFORMATION

Need

recognition

search

External

search

Internal

search

Memory

ENVIRONMENTAL

INFLUENCES

•Culture

•Social class personal

influences

•Family

•situation

INDIVIDUAL

DIFFERENCES

•Consumer resources

•Motivation & involvement

•Knowledge

•Attitudes

•Personality, values,&

lifestyle

Need

recognition

search

External

search

Internal

search

Memory

EXTERNAL

INFLUENCES

•Culture

•Social class

•personal influences

•Family

•situation

INTERNAL

INFLUENCES

•Consumer resources

•Motivation & involvement

•Knowledge

•Attitudes

•Personality, values,&

lifestyle

3. Evaluation of information

Need

recognition

search

Memory

I2

I3

I4

I5

I1

EXTERNAL

INFLUENCES

•Culture

•Social class personal

influences

•Family

•situation

INTERNAL

INFLUENCES

•Consumer resources

•Motivation & involvement

•Knowledge

•Attitudes

•Personality, values,&

lifestyle

Alternative evaluation

I

4. Purchase decision

5. Post purchase behavior

Purchase

Outcome

Dissatisfaction satisfaction

Alternative evaluation

CONSUMER RESPONSE TOWARDS

MALPRACTICES IN THE MARKET

Some common response towards malpractice in the market are:

Purchasing without showing any reaction

Giving less price

Doesnot buy the product

Warning the shopkeeper

contd

Returning product to the shopkeeper

Asking money back

Reporting at consumer forum/appropriate authority

CONSUMER BEHAVIOR IS IMPORTANT

FOR THE THREE PERSONS: 1. CONSUMER

2. SCIENTISTS

3. PRODUCER

CONSUMER BEHAVIOR IS IMPORTANT

TO CONSUMER BECAUSE OF THE

FOLLOWING REASONS: 1.EVER INCREASING INTENSIFYING COMPETITION.

2.PACE OF INNOVATION IS RAPID.

IMPORTANCE OF STUDYING

CONSUMER BEHAVIOR

THE STUDY OF CONSUMER

BEHAVIOR HELPS

PRODUCERS:

•To determine method of promotion.

• To design optimal services.

• To determine availability for the customers.

• To determine price

• To achieve the organizational objectives.

CONCLUSION