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Consumer Behaviour

VIEWS: 37 PAGES: 33

									Understanding
consumer behaviour
Two components


 ‘consumer’ and ‘behaviour’
     Consumer Buying Behavior
 Consumer Buying Behavior refers to the buying
  behavior of final consumers (individuals &
  households) who buy goods and services for
  personal consumption.

 Study consumer behavior to answer:
  “How do consumers respond to marketing efforts the
  company might use?”
  Who is a consumer?


Seems a relatively straight and simple
               issue!
So, who is a consumer?
So, who is a consumer?


         Need/want
  and the propensity to buy
What do they consume?
What do we know about
this consumer?


      SEC grid
 Goods – food, clothing, make-up,
  accessories, indulgences in food, clothing
  and accessories
 Financials – bank, mutual funds, insurance,
  shares, derivatives, currencies, commodities
 Services – hospitality, hospitals, health-care
 Other services – brokers and middle-men,
  mid-wives, CA, lawyers, architects
 Other products – homes, cars, two-wheelers,
  entertainment, sports – gym,
 Hobbies – all kinds
Why do they consume?
Maslow’s Hierarchy of Needs

                 Self
             Actualization
          (Self-development)

           Esteem Needs
         (self-esteem, status)
            Social Needs
       (sense of belonging, love)

            Safety Needs
         (security, protection)

        Physiological Needs
            (hunger, thirst)
What motivates
consumption?
Pseudo-mature markets
and consumers
What influences
consumption?
           Model of Consumer Behavior
Product               Marketing and     Economic
                      Other Stimuli
Price                                   Technological
Place                                   Political
Promotion                               Cultural


Buyer’s                                 Characteristics
Decision           Buyer’s Black Box    Affecting
Process                                 Consumer
                                        Behavior




Product Choice                          Purchase
                    Buyer’s Response    Timing
Brand Choice
                                        Purchase
Dealer Choice                           Amount
Characteristics Affecting
Consumer Behavior

            Culture
             Social
            Personal
         Psychological
            Buyer
 Factors Affecting Consumer Behavior:
 Culture
  Most basic cause of a person's wants and
   behavior.
  Values
  Perceptions

Subculture                       Social Class
• Groups of people with shared   • People within a social class
value systems based on common    tend to exhibit similar buying
life experiences.                behavior.
• Hispanic Consumers             • Occupation
• African American Consumers     • Income
• Asian American Consumers       • Education
• Mature Consumers               • Wealth
    Factors Affecting Consumer Behavior:
    Social

Groups
•Membership
•Reference

Family
•Husband, wife, kids                  Social Factors
•Influencer, buyer, user



    Roles and Status
     Factors Affecting Consumer Behavior:
     Personal

                     Personal Influences

Age and Family Life Cycle
                                              Occupation
         Stage


   Economic Situation                   Personality & Self-Concept


                 Lifestyle Identification

        Activities                              Opinions


                            Interests
   VALS 2              Actualizers     Abundant Resources

Principle Oriented   Status Oriented     Action Oriented



    Fulfilleds         Achievers          Experiencers



    Believers           Strivers             Makers



                       Strugglers
 Minimal Resources
Factors Affecting Consumer Behavior:
Psychological

                 Motivation




 Beliefs and    Psychological
                   Factors       Perception
  Attitudes




                   Learning
       Types of Buying Decisions


                     High           Low
                 Involvement    Involvement
Significant      Complex           Variety-
differences       Buying           Seeking
   between
     brands
                 Behavior          Behavior
        Few     Dissonance-        Habitual
differences   Reducing Buying
   between
                                    Buying
     brands      Behavior          Behavior
The Buyer Decision Process


      Need Recognition

      Information Search

   Evaluation of Alternatives

       Purchase Decision

     Postpurchase Behavior
The Buyer Decision Process
Step 1. Need Recognition

                     Need Recognition
   Difference between an actual state and a desired state

  Internal Stimuli              External Stimuli

  • Hunger                      • TV advertising

  • Thirst                      • Magazine ad
  • A person’s normal
                                • Radio slogan
     needs
                                •Stimuli in the
                                   environment
The Buyer Decision Process
Step 2. Information Search

 Personal Sources      •Family, friends, neighbors
                       •Most influential source of
                         information

Commercial Sources     •Advertising, salespeople
                       •Receives most information
                          from these sources


  Public Sources       •Mass Media
                       •Consumer-rating groups


                       •Handling the product
Experiential Sources   •Examining the product
                       •Using the product
The Buyer Decision Process
Step 3. Evaluation of Alternatives
           Product Attributes
  Evaluation of Quality, Price, & Features


                Degree of Importance
         Which attributes matter most to me?

                          Brand Beliefs
          What do I believe about each available brand?

                        Total Product Satisfaction
                Based on what I’m looking for, how satisfied
                      would I be with each product?

                                 Evaluation Procedures
                      Choosing a product (and brand) based on one
                                   or more attributes.
 The Buyer Decision Process
 Step 4. Purchase Decision

          Purchase Intention
Desire to buy the most preferred brand



      Attitudes       Unexpected
      of others       situational
                      factors




          Purchase Decision
The Buyer Decision Process
Step 5. Post-purchase Behavior
     Consumer’s Expectations of
       Product’s Performance

             Product’s Perceived
                Performance




 Satisfied                    Dissatisfied
Customer!                      Customer

             Cognitive Dissonance
Stages in the Adoption Process

            Awareness

              Interest

            Evaluation

               Trial

             Adoption
Percentage of Adopters
                                      Adoption of Innovations



                                         Early Majority           Late Majority
                         Innovators




                                        Early
                                                          34%    34%              Laggards
                                       Adopters


                                          13.5%                             16%
                            2.5%                   Time of Adoption
                          Early                                                   Late
     Influences on the Rate of Adoption
     of New Products

     Communicability                           Relative Advantage
      Can results be easily                      Is the innovation
     observed or described                      superior to existing
           to others?                                products?



                                 Product
  Divisibility                Characteristics            Compatibility
Can the innovation                                    Does the innovation
  be used on a                                         fit the values and
   trial basis?                                        experience of the
                                                         target market?
                              Complexity
                           Is the innovation
                               difficult to
                          understand or use?
Consumer insight

								
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