1 Ppt Consumer Behvaiour

8/2/2019 1 Ppt Consumer Behvaiour

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Meaning of Consumer/Buyer

Behavior Consumer is the most important person in business.His attitude, behavior, needs and reactions play animportant role in regard to marketing plans andpolicies of companies.

Companies study the behaviours of consumersconstantly for their benefits.

Consumer behavior is comparatively new area within

the scope of business management. The purpose of study of consumer behavior is to

understand human actions and reactions (consumerbehaviour) in the best possible manner.


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Defining Consumer

Behavior1) Consumer Behavior is the Process Involved When Individuals or

Groups Select, Use, or Dispose of Products, Services, Ideas orExperiences (Exchange) to Satisfy Needs and Desires.

2) Consumer behaviour refer to the study of how individuals makesdecisions in spending their available resources like time, money and effort

on various consumption related items.

3) Kotler & Armstrong : Consumer buying behaviour refer to the buying

behaviour of consumer

individual household who buy goods and servicefor personal consumption


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Definition of Consumer/Buyer

behaviour Consumer behavior is the process whereby

individuals decide what, when, where, how and

from whom to purchase goods and services. Walters and Paul

Buyer behaviour is all psychological, social andphysical behaviour of potential customers as they

become aware of, evaluate, purchase, consume andtell others about the products and services.

Webster


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Blackwell,Miniard &Engel defined behaviour as activitiespeople undertake when obtaining, consuming anddisposing of product and service

Consumer behaviour: Identify the three element ofconsumer behaviour:

A)Obtaining product & service: Obtaining refer to the

activities leading up to and including the purchase ofproduct.

B) Consuming product and services: Consuming activityrefer to how, where, when, and under what circumstancesconsumer use product

C) Disposing product and services: Disposing activitiesrefer to how consumer get rid of product and packagingafter consumer the product


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Consumer behaviour refer to the study of how individuals makesdecisions in spending their available resources like time, money andeffort on various consumption related items.

Who buy product or services

How do they buy product or service?Where do they buy them?

How often do they buy them

When do they buy them?

Why do they buy them?

How often do they use them?


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Importance of Studying Consumer

Behaviour The economists have called the customer a king

The study of consumer behaviour is very useful indetermining the form, style, packing ,brand

,trademark etc of the product Consumer behaviour also help to formulate various

marketing policies

To understand consumer behaviour one can know the

various consumption related aspects of individuals


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Factors influencing buyer behaviour

Social factors.-Family, roles and status, ref. groups Economic factors.-size of family, consumer

credit,income

Cultural factors.-sub culture, soc. Class (wealth,income)

Personal factors.-age, occ., life style, personality

Physiological factors.-basic needs

Psychological factors.-motivation, perception,learning, beliefs, attitude


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Meaning & Importance of Buyer/Consumer

Psychology Knowledge : knowledge is one type of information and

on the basis of the knowledge, the psychology ofcustomer develop

Attitudes & Emotions: Attitude is a state of mind orfeeling. if includes a predisposition to behave in someway

Intentions : Intention means desires to do something Buying Motives: It is the integral state which direct the

behaviour of a person.


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Types of Buyers

1. Friendly/co-operative buyer.

2. Timid/reserved/shy buyer.

3. Silent buyer.

4. Undecided buyer.5. Price or quality conscious

buyer.

6. Argumentative buyer.

7. Suspicious buyer.

8. Impatient buyer.

9. Bargain buyer.

10. Impulsive buyer.

11. Over-cautiosu buyer.12. Slow-thinking buyer

13. Rude/ill-manneredbuyer.

14. Clever/intelligentbuyer.


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Issues During Stages in

the

Consumption Process


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Decisions taken by the buyer while

purchasing

Need recognition Information search

Evaluation ofalternatives

Purchase decision

Post-purchaseBehaviour


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Type of buying behaviour

Complex buying behaviour

Dissonance reduces buying behaviour

Variety seeking buying behaviour Habitual buying behaviour


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Complex buying behaviour: When the customerhighly involved in the purchase and there aresignificant different among brand, they show this type

of behaviour Dissonance reducing behaviour: The customer is

highly involved because the product is expensive andrisky. there are very little difference among brands so

the customer is confused and wants to collect a lotinformation. After the purchase the customer mightdevelop dissonance because of dissatisfying feature ofthe purchased product


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Varitey Seeking buying behaviour: Customer showlow involvement because the product is not expensiveand purchased frequently

Habitual buying behaviour: customer has lowinvolvement and absence of significant brand different.


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Theories of personality

Trait theory

Freudian psychonalytic theory

Jungian theory Socio psychological or New freudian theory


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Trait theory: A personality trait can be define as anenduring attribute of a person that appears constantlyin a variable of situation

Individual can be describes in term of construction oftraits such asaffiliation,achievement,anxiety,aggression anddependency

Trait distinguishes one personality from another.


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Freudian psychoanalytic: psychoanalytic theory isbased on the notion that man is motivated more byunforeseen forces than he is controlled by consciousrational thought

Element:

1)Pre-conscious element

2) Conscious element(feeling,belief,desier)3) Unconscious(ideas,wishes,dreams)


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Jungian Theory: theory based on predisposingpatterns borrowed by the individual from his ancestors

Sensing intuiting Thinking feeling

Extroversion Introversion

Judging perceiving

Socio psychological: according to this, the individualand society are interlinked


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Self concept Selfconcept can be described simply as how one perceives

himself and his behaviour in the market place

Self- concept divided into six types as:

Actual Self: How a person actually perceives himself Ideal Self: This is concerned with how an individual would like

to ideally perceive himself

Expected Self: This kind of image is between actual and self-image

Social self: How a person thinks other perceive him Ideal social self: How a person would like other to perceive him

Situational Self:A person self image in a specific situation


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Perception

Perception is the process through which theinformation from outside environment is selected,received, organized and interpreted to make itmeaningful information results in decisions andactions

Perception is define as the process by which anindividual select, organize and interpret stimuli into ameaningful and coherent picture of the world


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Perception and consumer

behaviour People can emerge with different perception of the same object

because of these perceptual processes Selective attention Selective distortion Selective retention

Selective Attention: people are exposed to a huge amount ofdaily stimuli in the form of advertisement but a person cannotpossibly give attention to all the advertisements

Selective Distortion: It describes the tendency of people totwist information into personal meaning

Selective Retention: people tend to retain information thatsupports their attitudes and beliefs


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Consumer attitudeAttitude have usually been associated with the notion

of liking or disliking something

Attitude can be define as a learned orientation ordisposition ,towards an object or situation ,whichprovides a tendency to respond favourably or un-favourably to the object or situation


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Characteristics of AttitudeAttitude are not innate Appearance of an attitude is

dependent on learning

Attitude cannot be observed

Attitude are not temporary states but are more lessenduring once they are formed

Attitude always imply a relationship between the

person and objects Marketer are concerned with understanding attitude


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Attitude Formation

Attitude formation is learning on attitude There are some sources of influence on attitude formation Personality affects attitude formation

Economic factor Family factor Social factor Political factor Psychological factor Personality factor Reference group factors


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Attitude components

Congnitive component(belief)

Affective component(feeling)

Conative component( response tendencies)


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Attitudes - defined

An attitude may be defined as a learned predisposition torespond in a consistently favourable or unfavourablemanner with respectto a given object


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Copyright 2005 McGraw-HillAustralia Pty LtdPPTs t/a Consumer BehaviourbyKaren WebbSlides prepared by Sarah

Fletcher and MorenaDobrowolski 9-27

Attitude models Two main attitude models:

Tri-component model

Fishbeins multi-attribute model

The tri component model of


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The tri-component model of

attitudes


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Copyright 2005 McGraw-HillAustralia Pty LtdPPTs t/a Consumer BehaviourbyKaren WebbSlides prepared by Sarah

Fletcher and MorenaDobrowolski 9-29

The tri-component model of

attitudesAttitudes are generally considered to be made up of

three elements:

Affective component

Feelings

Based on physiological nervous reactions to an object

Cognitive component

Beliefs

What a person believes to be true about an idea, event,person, activity or object

Behavioural intentions

An observable reaction

e.g. to purchase a particular brand


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Fishbeins multi-attribute model of

attitudes Multi attitude model examines attitude in terms of

selected product attributes or belief

Attitude towards object model

Attitude towards behaviour model

Attitude towards ad model


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Functions of attitudesAttitudes have 4 main functions:

1. Adjustment function

Attitudes help consumers adjust to situations People seek out group acceptance in order to gain praise or

rewards and avoid punishment

2. Ego defensive function Attitudes are formed to protect the ego

3. Value expressive function A consumers attitudes are often a reflection of their values

4. Knowledge function Attitudes help consumers make decisions and process and

filter information


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The Customer as a Learner Learning is a change in the content of long-term

memory

Human learning is directed at acquiring a potential forfuture adaptive behavior


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Consumer psychographic Psychographics is commonly known as study of

lifestyle of consumers. It plays an important part inconsumer behaviour and helps in the promotion of

those products and services which are related to itemsof personal care, fashion, automobiles, telephonicservices, etc. in a country like India where lifestylediffers widely from region to region, the study ofconsumer psychographic is of great significance to themarketer.


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Measurement of life style Demographics age,education,income,family, gender

etc

Attitude people, place, ideas etc

Usage rate heavy,medium, light, no users

Media pattern the specific media the consumerutilise

Activities and interests Hobbies, sportValues Widely held about what is acceptable or

desirable


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Determinants of consumer buying

behaviour Cultural factor includes a consumers culture,

subculture and social class

Social factor include reference group,Family, status

Personal factor include age occupation,lifestyle


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Family roles by stage in decision

MAKING Consumer information processing

Brand evaluation

Intention to buy Purchase

Post purchase evaluation


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Social factor

Reference group

Family

Opinion leader(opinion leadership is the process bywhich one person informally influences the action orattitudes of other who may be opinion seeker ormerely opinion recipients)

Role and status


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Culture

Culture is a set of learned belief values,attitudes,habits and from of behaviour that are shared by asociety and are from generation to generation

Features :

The culture is inculcated into an individual and passedon from generation to generation

Cultural values keep on changing through the passageof time

The cultural values are shared by the society as whole


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Sub cultural Each cultural contains smaller group of sub cultural

that provides specific identification for its member.the member of s specific sub cultural possess belief

,values and custom that set them apart from othermember of the same society


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Social class

Social class are relatively homogeneous and ensuringdivision in a society that are hierarchically ordered andwhose member share similar values ,interest and

behaviour ( kotler) Characteristics:

Person of two different social classes tend to behave

differently Social class is not measured by a single variable but is

measured as a weighted function of one occupation,income ,education ,status


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Social class is hierarchical

A person social class in indicated by number ofvariables as occupation ,income ,wealth and educationrather than by any single variable

Social class categories

Upper class

Middle class Lower class


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Consumer decision making process


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BUYING PROCESS

Wants and Needs

Pre-Purchase Activity

Purchase Decision

Post-Purchase Evaluation


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PRE-PURCHASE ACTIVITY

Relevant information search

Evaluation of alternative choices


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RELEVANT INFORMATION SEARCH

Personal Experience

External Searches


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EXTERNAL SEARCHES

Formal searches

Informal searches

Internet searches


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POST-PURCHASE EVALUATION

After the buyer actually purchases the

product, the buyer then evaluates how

satisfied he/she is with the product


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POST-PURCHASE BEHAVIOR

Satisfied with purchase

Disappointed in product

Buyer remorse


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Types of decision process Extended consumer decision making

Limited consumer decision making

Routing consumer decision making

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1 Ppt Consumer Behvaiour