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Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Personal Determinants of Consumer Behavior 5-1

24566735 Consumer Behaviour Ppt

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Page 1: 24566735 Consumer Behaviour Ppt

Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Personal Determinants of Consumer Behavior

5-1

Page 2: 24566735 Consumer Behaviour Ppt

Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

• Needs and MotivesNeeds and Motives– Need: an imbalance between a consumer’s

actual and desired states– Motives: inner states that direct a person

toward the goal of satisfying a felt need

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Page 3: 24566735 Consumer Behaviour Ppt

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• Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

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Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Self-Actualization

Page 4: 24566735 Consumer Behaviour Ppt

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5-4

Physiological Needs

Products Vitamins, herbal supplements, medicines, food, exercise equipment, fitness clubs

Marketing themes

Pepcid antacid—”Just one and hearburn’s done”

Puffs facial tissues—”A nose in need deserves Puffs indeed”

Jiyo Jee Bhar Ke

Safety Needs

Products Cars and car accessories, burglar alarm systems, retirement investments, insurance, medicines

Marketing themes

Jeetay Raho

Volvo—“Protect the body. Ignite the soul.”

Yogakshema Vahamyahum

Page 5: 24566735 Consumer Behaviour Ppt

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5-5

Belongingness

Products Beauty aids, entertainment, clothing, cars

Marketing themes

Old Spice —”The Mark of a Man”

TJ Maxx clothing store—”You should go”

Esteem Needs

Product Clothing, cars, jewelry, hobbies, beauty spa services

Marketing themes

? Automobiles— Count on us”Van Cleef & Arpels—“The pleasure of perfection.”? - Be Morekitchen appliances—“The sign of a great cook.”

Self-Actualization

Products Education, cultural events, sports, hobbies, luxury goods, technology, travel

Marketing themes

Nike – Just Do it

IES

Dodge cars and trucks—”Grab life by the horns”

Page 6: 24566735 Consumer Behaviour Ppt

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• Perceptions:Perceptions: the meaning that a person attributes to incoming stimuli gathered through the five senses – sight, hearing, touch, taste, and smell.

• Perceptual screens:Perceptual screens: the filtering processes through which all inputs must pass

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Page 7: 24566735 Consumer Behaviour Ppt

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• Subliminal Perception:Subliminal Perception: subconscious receipt of information– Almost 50 years ago, a movie theater tried to

boost concession sales by flashing the words Eat Popcorn and Drink Coca-Cola.

– Subliminal advertising is aimed at the subconscious level of awareness.

– Subliminal advertising has been universally condemned as manipulative, and is exceedingly unlikely that it can induce purchasing.

– Research has shown that subliminal messages cannot force receivers to purchase goods that they would not consciously want.

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Page 8: 24566735 Consumer Behaviour Ppt

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• AttitudesAttitudes– A person’s enduring favorable or unfavorable

evaluations, emotional feelings, or action tendencies toward some object or idea

– Attitude components:• Cognitive• Affective • Behavioral

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Page 9: 24566735 Consumer Behaviour Ppt

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• Changing Consumer AttitudesChanging Consumer Attitudes– Attempt to produce consumer attitudes that will

motivate the purchase of a particular product– Evaluate existing consumer attitudes and then

make the product characteristics appeal to them

• Modifying the Components of AttitudeModifying the Components of Attitude– Attitudes change in response to inconsistencies

among the three components– Marketers can work to modify attitudes by

providing evidence of product benefits and by correcting misconceptions

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Page 10: 24566735 Consumer Behaviour Ppt

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• LearningLearning– An immediate or expected change in behavior

as a result of experience.– The learning process includes the component

of:• Drive• Cue• Response• Reinforcement

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Page 11: 24566735 Consumer Behaviour Ppt

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• Applying Learning Theory to Marketing Applying Learning Theory to Marketing DecisionsDecisions– Shaping: process of applying a series of

rewards and reinforcements to permit more complex behavior to evolve over time

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Page 12: 24566735 Consumer Behaviour Ppt

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• Self-ConceptSelf-Concept– A person’s multifaceted picture of himself or

herself, composed of the:• Real self• Self-image• Looking-glass self• Ideal self

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Page 13: 24566735 Consumer Behaviour Ppt

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The Consumer Decision Process• Consumers complete a step-by-step

process when making purchase decisions– High-involvement purchase decisions

are those with high levels of potential social or economic consequences

– Low-involvement decisions are routine purchases that pose little risk to the consumer

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SearchSearch

Alternative Alternative EvaluationEvaluation

Purchase Purchase DecisionDecision

Purchase Purchase ActAct

Post-Post-purchase purchase

EvaluationEvaluation

Problem Problem Opportunity Opportunity RecognitionRecognition

Page 14: 24566735 Consumer Behaviour Ppt

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– Integrated Model of the Consumer Decision Process

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Page 15: 24566735 Consumer Behaviour Ppt

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• Problem or Opportunity RecognitionProblem or Opportunity Recognition– Consumer becomes aware of a significant

discrepancy between the existing situation and the desired situation

– Motivates the individual to achieve the desired state of affairs

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Page 16: 24566735 Consumer Behaviour Ppt

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• SearchSearch– Consumer gathers information related to their

attainment of the desired state of affairs– Identifies alternative means of problem solution– May cover internal or external sources of

information– Brands that a consumer actually considers

buying before making a purchase decision are known as the evoked set

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Page 17: 24566735 Consumer Behaviour Ppt

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5-17

Evoked Set Evoked Set ModelModel

All All BrandsBrands

All All BrandsBrands

Unknown Unknown BrandsBrands

Unknown Unknown BrandsBrands

Known Known Brands Brands

Known Known Brands Brands

OverlookedOverlookedBrandsBrands

OverlookedOverlookedBrandsBrands

UnacceptableUnacceptableBrandsBrands

UnacceptableUnacceptableBrandsBrands

AcceptableAcceptableBrandsBrands

AcceptableAcceptableBrandsBrands

Rejected Rejected Brands Brands

Rejected Rejected Brands Brands

PurchasedPurchasedBrandBrand

PurchasedPurchasedBrandBrand

EvokedEvokedSetSet

EvokedEvokedSetSet

InertInertSetSet

InertInertSetSet

Page 18: 24566735 Consumer Behaviour Ppt

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• Evaluation of AlternativesEvaluation of Alternatives– Consumer evaluates the evoked set– Difficult to completely separate the second and

third steps, since some evaluation takes place as the search progresses

– Outcome of the evaluation stage is the choice of a brand or product (or possibly a decision to renew the search)

– Evaluative criteria: features that a consumer considers in choosing among alternatives

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Page 19: 24566735 Consumer Behaviour Ppt

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• Purchase Decision and Purchase ActPurchase Decision and Purchase Act– Consumer narrows the alternatives down

to one– The purchase location is decided

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Page 20: 24566735 Consumer Behaviour Ppt

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• Postpurchase EvaluationPostpurchase Evaluation– After the purchase, consumers are either

satisfied or experience post-purchase anxiety– Cognitive dissonance: Post-purchase anxiety

that results from an imbalance among an individual’s knowledge, beliefs, and attitudes after an action or decision is taken

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Page 21: 24566735 Consumer Behaviour Ppt

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• Classifying Consumer Problem-Solving Classifying Consumer Problem-Solving ProcessesProcesses– Three categories of problem-solving behavior

• Routinized Response Behavior• Limited Problem Solving• Extended Problem Solving

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Page 22: 24566735 Consumer Behaviour Ppt

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Mod 5

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Page 23: 24566735 Consumer Behaviour Ppt

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Ethical & social issues in consumer research

• Positive issues in consumer researchI. Better consumption experiencesII. Potential for building customer relationships

• Negative issues in consumer researchI. Tracking c.b in different countriesII. High marketing costsIII.Invasion of consumer privacyIV.Deceptive research practices

Page 24: 24566735 Consumer Behaviour Ppt

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consumerism• It’s a set of activities of govt., business, independent

organizations & concerned consumers to protect the rights & interest of the consumers. These rights are as follows:

i. Right to safetyii. Right to be informediii.Right to chooseiv.Right to be heardv. Right to consumer educationvi.Right to recourse & redressvii.Right to environment that enhances the quality of life.

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Page 25: 24566735 Consumer Behaviour Ppt

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Groups involved with public policy & consumerism

• Govt agencies• Industry self regulations• Consumer groups

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Page 26: 24566735 Consumer Behaviour Ppt

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HOW MARKETING PRACTICES VIOLATE CONSUMER RIGHTS

• Deceptive ads & labeling• Deceptive selling tactics• Evading privacy on the internet

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PRODUCT INFORMATION & SAFETY ISSUES

•Consumer protection through information•Consumer protection through product safety•Consumer protection through conservation behaviour