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8/8/2019 Consumer Behavior Hemanth
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CONSUMERCONSUMER
BEHAVIORBEHAVIOR
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Consumer Buying BehaviorConsumer Buying Behavior
Consumer Buying BehaviorConsumer Buying Behavior refers to therefers to thebuying behavior of final consumersbuying behavior of final consumers
(individuals & households) who buy goods(individuals & households) who buy goodsand services for personal consumption.and services for personal consumption.
Study consumer behavior to answer:Study consumer behavior to answer:
How do consumers respond to marketingHow do consumers respond to marketingefforts the company might use?efforts the company might use?
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Model of Consumer BehaviorModel of Consumer BehaviorMarketing and
Other Stimuli
Buyers Black BoxBuyers Black Box
Buyers Response
Product
PricePlace
Promotion
Economic
Technological
Political
Cultural
CharacteristicsAffectingConsumerBehavior
BuyersDecisionProcess
Product Choice
Brand Choice
Dealer Choice
PurchaseTiming
PurchaseAmount
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Factors influencing consumerFactors influencing consumer
behaviorbehavior
CultureCulture
SocialSocial
Personal FactorPersonal Factor
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CultureCulture
CultureCulture--fundamental determinant of personsfundamental determinant of persons
wants and behaviors. Childwants and behaviors. Child--set valueset value
,perceptions ,preferences ,behavior.,perceptions ,preferences ,behavior. SubcultureSubculture--Nationalities,religion,ratial groupsNationalities,religion,ratial groups
geographic region.geographic region.
Social ClassSocial Class--dress, speech pattern, recreationaldress, speech pattern, recreationalpreferences.positions.occupations,income,wealthpreferences.positions.occupations,income,wealth
Upper ClassUpper Class--Magazine and books.Magazine and books.
Lower classLower class--TV.TV.
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Personal FactorPersonal Factor
AgeAge people buy different goods and services over lifetime.people buy different goods and services over lifetime.stages in lifecycle.stages in lifecycle.
Occupation and economic circumstances.Occupation and economic circumstances.
Personality and self concepts.Personality and self concepts.
*Sincerity*Sincerity--down to earth,honest,cheerful.down to earth,honest,cheerful.
*Excitement.*Excitement.--daring,spirited,up to date.e.g.MTVdaring,spirited,up to date.e.g.MTV
*Competence*Competence reliable ,intilligent,successful.reliable ,intilligent,successful.
*Sophistication*Sophistication--upper class and charming.upper class and charming.
*Ruggedness.e.g.Levis.*Ruggedness.e.g.Levis.
Lifestyle and Values:Lifestyle and Values:--*Money constrained*Money constrained--WalWal--Mart and Subhiksha.Mart and Subhiksha.
*Time constrained*Time constrained--doing two things at a time.doing two things at a time.
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Four psychological process affectFour psychological process affect
consumer behavior.consumer behavior.1.1.MotivationMotivation
BiogenicBiogenic--Hunger ,thirst, discomforts.Hunger ,thirst, discomforts.
PsychogenicPsychogenic--recognition,esteem,belongingrecognition,esteem,belonging..
Sigmund Freud, Maslow'sSigmund Freud, Maslow's Theory.HerzbergTheoryTheory.HerzbergTheory..
Maslow TheoryMaslow Theory--1.physiological need,2.safty need,3.social1.physiological need,2.safty need,3.socialneeds,4.Esteem needs.5.self actualization need.needs,4.Esteem needs.5.self actualization need.
2.Perception2.Perception--is the process by which an individualis the process by which an individualselects,organizes,andselects,organizes,and interprets information inputs to create ainterprets information inputs to create ameaningful picture of the world. selectivemeaningful picture of the world. selective attention, selectiveattention, selective
distortion, selective retention.distortion, selective retention.3.Learning.3.Learning.--when people act, theywhen people act, they learn.drives,cues,responceslearn.drives,cues,responces andand
reinforcement.reinforcement.
4.Beliefs and attitude4.Beliefs and attitude
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The buying decision process.The buying decision process.
1.1. Problem Recognition.Problem Recognition.
2.2. Information Search.Information Search.
3.3. Evaluation of alternatives.Evaluation of alternatives.
4.4. Purchase Decision.Purchase Decision.
5.5. Post Purchase behavior.Post Purchase behavior.
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Involvement and Types Of decision MakingInvolvement and Types Of decision Making
L o w P u r c h a s e I n v o l v e m e n t H i g h P u r c h a s e I n v o l v e m e n t
N o m in a l D e c i s i o n M a k i n g L i m i t e d E x t e n d e d d e c i s i o n M a k i n g
P r o b le m R e c o g n it i o n P r o b l e m R e c o g n it i o n P r o b le m R e c o g n i t i o n
I n f o m r a t io n S e a r c h I n f o m r a t io n S e a r c h I n f o r m a t io n s e a r c h( I n t e r n a l ) ( I n t e r n a l a n d l i m i t e d e x t e r n a l ) ( I n t e r n a l a n d e x t e r n a l )
A l t e r n a t i v e E v a l u a t i o n A l t e r n a t i v e e v a lu a t io n(f e w a t t r i b u t e s ) ( m a n y a t t r i b u t e s )
(f e w a l t e r n a t i v e s ) ( m a n y a l t e r n a t i v e s )
P u r c h a s e P u r c h a s e P u r c h a s e
P o s t p u r c h a s e P o s t P u r c h a s e P o s t P u r c h a s e
N o d is s o n a n c e N o D i s s o n a n c e D i s s o n a n c e
L i m i t e d e v a l u a t io n C o m p l e x E v a l u a t i o n
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Problem RecognitionProblem Recognition
Buying Process starts when buyer recognizeBuying Process starts when buyer recognize
problem or need.problem or need.
Internal StimuliInternal Stimuli--Hunger ,Thirsts,sex.Hunger ,Thirsts,sex. External StimuliExternal Stimuli-- e.g.neighbours car,e.g.neighbours car, TVTV
advertising, Magazine ad, Radio slogan, Stimuli inadvertising, Magazine ad, Radio slogan, Stimuli in
the environmentthe environment
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Process ofProblem RecognitionProcess ofProblem Recognition
Desired onsumer ifestyle urrent ituation
Desired tate ctual tate
TU OF DI Y
o difference Desired state exceeds ctual state
ctual state exceeds desired state
atisfaction
o action problem recognized(Information search initiated)
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Information searchInformation search
What is nature of information search.What is nature of information search.
What types of information are soughtWhat types of information are sought
What sources of information are usedWhat sources of information are used
What marketing strategies can be developed based on patterns ofWhat marketing strategies can be developed based on patterns ofsearch behavior.search behavior.
A) Nature of Information SearchA) Nature of Information Search
1) Internal Search : If Trishun had given relief against cold last1) Internal Search : If Trishun had given relief against cold last
time , he would go to nearest store and buy Trishun without furthertime , he would go to nearest store and buy Trishun without further
information search or evaluationinformation search or evaluation2)External Search :2)External Search :
a)Opinion of friends , neighbors , relativesa)Opinion of friends , neighbors , relatives
b) Professional information that is provided in internet ,b) Professional information that is provided in internet ,
newspapers ,magazines etc.newspapers ,magazines etc.
C) Ads, In store displaysC) Ads, In store displays
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Information searchInformation search
B) Types of Information Search:B) Types of Information Search:
1) Appropriate evaluation criteria for the1) Appropriate evaluation criteria for the
solution of a problemsolution of a problem
2) Existence of various alternative solution.2) Existence of various alternative solution.
3) performance level or characteristics of3) performance level or characteristics of
each alternative solution on each alternativeeach alternative solution on each alternative
criterioncriterion
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Information SearchInformation Search
1.1. PersonalPersonal--
family,friends,neighbours,aquaintances.family,friends,neighbours,aquaintances.
2.2. CommercialCommercial--advertising,websites,sales person,advertising,websites,sales person,packaging ,displays.packaging ,displays.
3.3. PublicPublic--mass media, consumer ratingmass media, consumer rating
organization.organization.
4.4. ExperientialExperiential--handing,examining,usinghanding,examining,using
products.products.
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The Buyer Decision ProcessStep 3. Evaluation of Alternatives
The Buyer Decision ProcessStep 3. Evaluation of Alternatives
Product AttributesEvaluation of Quality, Price, & Features
Product AttributesEvaluation of Quality, Price, & Features
Degree of ImportanceWhich attributes matter most to me?
Degree of ImportanceWhich attributes matter most to me?
Brand BeliefsWhat do I believe about each available brand?
Brand BeliefsWhat do I believe about each available brand?
Total Product SatisfactionBased on what Im looking for, how satisfiedwould I be with each product?
Total Product SatisfactionBased on what Im looking for, how satisfiedwould I be with each product?
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
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Evaluation of AlternativesEvaluation of Alternatives1.Try to satisfy need.2.looking for certain benefits.3.See as bundle1.Try to satisfy need.2.looking for certain benefits.3.See as bundleof attributes.of attributes.
CamerasCameras--picturepicture sharpness,speed,size,pricesharpness,speed,size,price..
HotelsHotels--location,cleanliness,atmosphere,pricelocation,cleanliness,atmosphere,price..
MouthwashMouthwash--color,effectiveness,germcolor,effectiveness,germ killing capacity price, tastekilling capacity price, taste
,flavor,,flavor, TiresTires--safety, tread life, ride quality, price.safety, tread life, ride quality, price.
BeliefBelief--a descriptive thought that person holdsa descriptive thought that person holds
about something.about something.
AttitudeAttitude--enduringenduring faverablefaverable oror unfaverableunfaverable evaluation,evaluation,
emotional feeling and action tendencies towards some object oremotional feeling and action tendencies towards some object oridea.idea.
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Expectancy Value ModelExpectancy Value Model
computercomputer AttributeAttribute
MemoryMemory
capacitycapacity
GraphicGraphic
capabilitycapability
Size andSize and
weightweight
PricePrice
AA 1010 88 66 44
BB 88 99 88 33
CC 66 88 1010 55
DD 44 33 77 88
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Purchase DecisionPurchase Decision
1.brand 2 dealer 3 quality 4 timing 5 payment method.1.brand 2 dealer 3 quality 4 timing 5 payment method.
Noncompensatory models of consumer choice.Noncompensatory models of consumer choice.--
*conjunctive heuristic*conjunctive heuristic--eg.1bhk flat.eg.1bhk flat.
*lexicographic heuristic*lexicographic heuristic--e.g. Hero Honda bikes.e.g. Hero Honda bikes.
*elimination by aspects heuristics.e.g.Hundai cars.*elimination by aspects heuristics.e.g.Hundai cars.
Intervening FactorsIntervening Factors--
1.Negative thought of other1.Negative thought of other
2.Positive thought2.Positive thought
3unanticipated situational factor3unanticipated situational factor--sales person may turn hersales person may turn heroff.off.
Consumer decision to modify, postpone , or avoid depends onConsumer decision to modify, postpone , or avoid depends on
perceived risk. E.g. functional risk,physical risk,financial risk,socialperceived risk. E.g. functional risk,physical risk,financial risk,social
risk,psychological risk,time risk.risk,psychological risk,time risk.
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The Buyer Decision ProcessThe Buyer Decision ProcessStep 4. Purchase DecisionStep 4. Purchase Decision
Purchase IntentionDesire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpected
situational
factors
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Post purchase BehaviorPost purchase Behavior
Post purchase satisfactionPost purchase satisfaction--dissonance ,satisfied,dissonance ,satisfied,
delighted.delighted.
Post purchase actionsPost purchase actions--75% Toyota buyers are75% Toyota buyers arehighly satisfied.highly satisfied.
dissatisfied customer may abandon or return thedissatisfied customer may abandon or return the
product.product.Post purchase use and disposalPost purchase use and disposal--productproduct
consumption rate.consumption rate.
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Post purchase behaviourPost purchase behaviour