Consumer Behaviour Sep 17

8/4/2019 Consumer Behaviour Sep 17

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Meaning of Consumer Behaviour

Consumer Behaviour a reflection and what

drives it The need to study Consumer Behaviour


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The purpose of any business is to create acustomer

It is the customer who determines what abusiness is

It is he and he alone, who by willing to pay

for goods & services, converts economicresources into wealththings into goods


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What a business thinks it produces is not offirst importance

What a customer thinks he is buying & whathe considers value is decisive

It is this process that will determine what a

business is, what it produces and whether itwill prosper


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Years agoSELLERs MARKET

Manufacturers produced

Consumers did not have much choice theywere forced to buy

It was a Monopolistic environment

As the years went by Consumers wantedchange


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Trade barriers gave way to better andimproved choice

Access to information Changing lifestyles

Higher disposable incomes

Interaction with other cultures


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Consumers preferred products that suitedtheir individual tastes and preferences

Aspirations became the norm No 2 consumers were alike


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From manufacturer orientation marketingled Consumer Led

From Monopoly CompetitionSegmentation


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Hence consumer segmentation became thenorm TARGET SEGMENTS or TARGET

AUDIENCES

Marketers sensitized themselves to the

various factors that influenced purchasedecisions


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Companies realized the need

To treat consumers differently

To understand what made them tick To find out what they preferred & why

Their living, consumption, lifestyle habits


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Buying Behavior is the decision processesand acts of people involved in buying and

using products


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The process of studying andunderstanding what goes on with the

consumers as to why he/she makes ordoes not make the purchase


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the psychology of how consumers think, feel,reason, and select between different

alternatives (e.g., brands, products, andretailers);

the psychology of how the consumer isinfluenced by his or her environment (e.g.,culture, family, signs, media)

the behavior of consumers while shopping ormaking other marketing decisions


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the limitations in consumer knowledge orinformation processing abilities influencedecisions and marketing outcome

how consumer motivation and decisionstrategies differ between products that differ intheir level of importance or interest that they

entail for the consumer, and how marketers can adapt and improve their

marketing campaigns and marketing strategiesto more effectively reach the consumer


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Culture

Collective behaviour, Beliefs, Values, Habits,Tradition, Heritage of a Society

Influences what one eats, wears, tastes,language, festivals, work patterns

Sub-Culture

Socio cultural (nationality, social class, religion) Demographic (region, language, occupation, age,

sex)

A social group within a national culture that hasddistinctive patterns of behaviour and beliefs


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SocialClass

Class differential Rich, Upper Class, UpperMiddle Class, Middle class, Lower Middle class,Lower Class

Based on family income, wealth, occupation.Social class can either be ascribed or achieved

Social status lifestyle and prestige

Family

Father, Mother, Wife, Child, Brother, Sister,Grand parents, Uncles, Aunts, Cousins

Joint family, nuclear family, family with one kid,family with no kids, live-ins


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PersonalInfluence

My mannerisms

My Attitude

My behaviour

My friends My role model


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ReferenceGroups

(IndividualConsumer)

Culture

Sub-

culture

Friends

SocialMedia

SocialClass

OtherCultures

Family

Peers

RoleModels

Opinion

Leaders


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Diffusion of InnovationsDiffusion of

Innovations is atheory of how,

why, and at what

rate new ideasand technologyspread through

cultures

Five stages ofthe adoption

process

Knowledge,

Persuasion,Decision,

Implementation,Confirmation

Adoptercategories

Innovators, Earlyadopters, EarlyMajority, Late

Majority, Laggards


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Each of the determinants or influencers areinterconnected

The one that is the most influentialCULTURE


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Need- something you have to have

Want -something you would like to

have


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In actuality, you only need four things tosurvive:

A roof over your head Enough food and water to maintain your health

Basic health care and hygiene products

Clothing (just what you need to remain

comfortable and appropriately dressed)


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Physiological - These include the mostbasic needs that are vital to survival, such as

the need for water, air, food and sleep. Security - Examples of security needs

include a desire for steady employment,health insurance, safe neighborhoods and

shelter from the environment.


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Social - Relationships such as friendships,romantic attachments and families help fulfillthis need for companionship and acceptance,as does involvement in social, community orreligious groups.

Esteem - After the first three needs have been

satisfied, esteem needs becomes increasinglyimportant. These include the need for thingsthat reflect on self-esteem, personal worth,social recognition and accomplishment.


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Self-Actualization - This is the highest levelof Maslows hierarchy of needs. Self-

actualizing people are self-aware, concernedwith personal growth, less concerned withthe opinions of others and interested fulfillingtheir potential.


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Women are the largest consumers ofbranded and unbranded

Documents

Consumer Behaviour Sep 17