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    Marketing Management - Pgpmi - Class 12

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    This document provides an overview of consumer behavior and the consumer decision-making process. It discusses key topics such as the definition of a consumer; the two broad types of consumers; consumer behavior definitions; consumer behavior roles; why the field of consumer behavior developed; the consumer adoption process; individual influencers of buying behavior like perception, motivation, involvement, attitudes and personality; the influence of external environment factors; lifestyle and its approaches; the buying process; and information search.

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    Marketing Management - Pgpmi - Class 12

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    Sivapriya Krishnan
    82 views44 pages
    This document provides an overview of consumer behavior and the consumer decision-making process. It discusses key topics such as the definition of a consumer; the two broad types of consumers; consumer behavior definitions; consumer behavior roles; why the field of consumer behavior developed; the consumer adoption process; individual influencers of buying behavior like perception, motivation, involvement, attitudes and personality; the influence of external environment factors; lifestyle and its approaches; the buying process; and information search.

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    This document provides an overview of consumer behavior and the consumer decision-making process. It discusses key topics such as the definition of a consumer; the two broad types of consumers; consumer behavior definitions; consumer behavior roles; why the field of consumer behavior developed; the consumer adoption process; individual influencers of buying behavior like perception, motivation, involvement, attitudes and personality; the influence of external environment factors; lifestyle and its approaches; the buying process; and information search.

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    Attribution Non-Commercial (BY-NC)
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    Download as ppt, pdf, or txt
    82 views44 pages

    Marketing Management - Pgpmi - Class 12

    Uploaded by

    Sivapriya Krishnan
    This document provides an overview of consumer behavior and the consumer decision-making process. It discusses key topics such as the definition of a consumer; the two broad types of consumers; consumer behavior definitions; consumer behavior roles; why the field of consumer behavior developed; the consumer adoption process; individual influencers of buying behavior like perception, motivation, involvement, attitudes and personality; the influence of external environment factors; lifestyle and its approaches; the buying process; and information search.

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    of 44

    Marketing Management

    26/10/07 CBS PGPMI - Class 12 Sivapriya Krishnan

    Consumer Behaviour-Nature, Scope and Applications

    Who is a consumer?
    A consumer is typically one who engages in any one or all of the activities described in the definition Customer is one who actually purchases a product or service from a particular organisation or shop.

    Two broad types of consumer


    Personal
    Buys goods or services for his/her own use

    Organisational
    Including profit and non profit businesses, government agencies and institutions

    The focus of the course will be on the individual consumer

    Consumer behaviour-some definitions


    The decision process and the physical activity engaged in when evaluating, acquiring, using or disposing of goods and services The study of consumer behaviour is the study of how individuals make decisions to spend their available resources (time,money, effort) on consumption related items. It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it and how often they use it.

    Some consumer behaviour roles


    Role
    Initiator

    Description
    The person who determines that some need or want is not being met

    Influencer The person who intentionally/ unintentionally influences the decision to buy the actual purchase and/ or use of product or service

    Buyer
    User

    The buyer who actually makes the purchase


    The person who actually uses or consumes the product or service

    Why the field of Consumer Behaviour developed


    Marketing concept evolution
    Production orientation: cheap efficient production and intensive distribution Product orientation: focuses totally on the product quality Selling orientation: assumes consumers will not buy without hardsell Marketing orientation: determines the needs and wants of specific target markets.

    Why the field of Consumer Behaviour developed


    Dawning realisation that consumers rebelled at using identical products
    They preferred products that reflected their own special needs, personalities and lifestyles. Hence, marketers adopted Market Segmentation- this technique called for greater understanding of the consumer

    Consumer Adoption Process


    Adoption : individuals decision to become a regular user Consumer adoption should translate into consumer loyalty

    Consumer Adoption Process


    Innovation: any good, service, idea that is perceived by someone as new Innovation diffusion process is the spread of a new idea from its source of invention o creation to its ultimate users or adopters

    Consumer Adoption Process


    Five stages of adoption / innovation diffusion : Awareness : aware but no information Interest : stimulated to seek information Evaluation: considers whether to try the innovation Trial : tries the innovation to estimate its value Adoption : makes full use of innovation

    Consumer Adoption Process


    Early majority 34% Early adopters 13.5% Innovator 2.5%

    Late Majority 34%

    Laggards 16%
    Sivapriya Krishnan

    Individual influencers of buying behaviour


    Perception

    What is perception?
    Perception is the process by which a person selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. Stimuli
    Vision Smell Sound Touch Smell

    Consumer motivation and involvement

    Model of motivation process


    Learning

    Unfulfilled needs, wants and desires

    Tension

    Drive

    Behaviour

    Goal or need fulfillment

    Cognitive processes

    Tension reduction

    Individual determinants of behaviour


    Motivation Motivation is that internal force which arouses or activates some need and provides direction of behaviour towards fulfillment of that need.
    May be physiological, biological or pyschological

    Involvement Refers to the personal relevance or importance of a product or service that a consumer perceives in a given situation. High involvement leads to high motivation

    Individual determinants of behaviour (contd)


    Attitudes
    Learned pre-dispositions towards objects, people and events Not inborn or innate

    Personality and self concept


    It is the sum total of unique individual characterstics that makes each one of us what we are.

    Beliefs: large number of verbal or mental statements that reflect a persons particular knowledge and assessment about something Values are also beliefs, but
    Relatively few in no. Guide for culturally appropriate behaviour Enduring Not tied to specific objects or things Widely accepted by members of society

    Customs: overt modes of behaviour that constitute approved or acceptable ways of behaving in specific situations

    Individual determinants of behaviour (contd)


    Learning and memory
    We are exposed to a wide range of information everyday, though we retain very less We remember only that which is of relevance to us, or where we have a motivation to remember Our motives, attitudes and personality act as filters

    Evaluation of Classical conditioning


    Repetition, Stimulus generalization and discrimination are useful theories Classical conditioning theories assume that consumers are passive beings who react with predictable responses to stimuli after repeated trials. In reality, our assessment of products are often based on the rewards we experience as a result of making specific purchases.

    Operant Conditioning
    Our assessment of products are often based on rewards we experience as a result of making specific purchasesinstrumental conditioning

    Model of Instrumental conditioning


    Try brand A Unrewarded Legs too tight

    Stimulus Situation (Need good looking Jeans)

    Try brand B

    Unrewarded Tight in seat


    Unrewarded Baggy in seat REWARD Perfect fit

    Try brand C

    Try brand D

    Repeat Behaviour

    Instrumental conditioning
    Positive reinforcement
    Consists of events that strengthen the likelihood of a specific response (using a shampoo that leaves your hair feeling smooth and silky is likely to result in a repeat purchase)

    Negative reinforcement
    A negative outcome that also encourages a specific behaviour

    Massed or distributed learning

    Evaluation of instrumental conditioning


    This model of learning applies to many situations where consumers learn about products, services and retail stores Classical conditioning simple behaviour Operant explains complex, goal oriented activities Considerable amount of learning also takes place in the absence of +ve or ve reinforcement

    Cognitive learning theory


    Not all learning takes place as result of repeated trials More often, however, we search for information on which to base a decision. We evaluate what we learn carefully, in order to make the best possible decision. Learning based on mental activity is called cognitive learning (CL) CL theories are strongly based on memory and memory processes

    Individual determinants of behaviour (contd)


    Information processing
    The process and activities which consumers engage in while gathering, assimilating and evaluating information This is also influenced by our motives, attitudes, personality and self concept

    Influence of the external environment on consumer behaviour


    Cultural Sub cultural Social class Social group Family Personal Other influences

    What is lifestyle?
    A lifestyle typically depicts the whole person in active interaction with his environment Lifestyle
    is a group phenomenon pervades various aspects of life implies a central life interest varies according to sociologically relevant variables

    Hierarchy of Influences on lifestyle


    Culture and society

    Lifestyle patterns and values

    Purchase decisions

    Market reaction of Consumer

    Approaches to study lifestyle


    Draws on a variety of disciplines such as anthropology, psychology, sociology and economics. Consumer psychographic profiles are derived by measuring different aspects of consumer behaviour such as
    Products and services consumed Activities interests and opinions (AIO) Value systems Personality traits and self-conception

    Lifestyle portrayed thru garments ads


    1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Dinesh Raymonds Peter England Arrow Levis Lee Siyaram Allen Solly Gwalior Colour Plus Formal businessman Upperclass, non ostentatious Young, upwardly mobile, yet VFM (not yet arrived) Upperclass, traditional, formal (arrived) Young, sexy, bold, iconoclastic Active, outdoors lifestyle Ethnic, fashionable, adventurous Dares to be different while conforming Classy, heritage oriented, pedigree Fashionable, youthful, variety seeker

    Female Lifestyle types-India


    1. 2. 3. 4. 5. 6. 7. The gregarious hedonist The contemporary housewife The affluent sophisticate The tight-fisted traditionalist The troubled homebody The anxious rebel The contented housewife

    Targeting of products
    Durables
    Washing machines Wet Grinders Vacuum cleaner Steel cupboards Watches Contemporary Housewife, affluent sophisticate, gregarious hedonist Contemporary Housewife, affluent sophisticate

    Non durables
    Gel toothpaste Tamarind paste Skin care cream Upmarket perfumes Talcum powder

    The Buying process

    The Buying process

    Problem recognition

    Info, search & evaluation

    Purchasing Processes

    Post Purchase Behaviour

    Information search
    Internet Advertising In-store promotion Dealer information Package info Sales personnel Samples and demo

    Factors likely to increase search


    Product factors Situational factors
    Experience Social acceptability

    Consumer factors
    Demographic characteristics Personality

    Information processing
    Exposure

    Attention

    Comprehension

    Yielding

    Retention

    Exposure: degree to which people notice stimuli Attention: degree to which people focus on stimuli Comprehension: understanding Acceptance: act of agreeing/disagreeing Retention: entry of stimulus into the long term memory

    Alternative evaluations in buying decisions


    Product attributes Utility function of each attribute Importance weights of each attribute Set of brand beliefs

    Purchase process
    Physical surroundings Social surroundings Task definition Temporal dimensions Antecedent conditions

    Post-purchase evaluation
    Dissatisfaction Expectancy confirmation Satisfaction

    Marketers response strategies


    Monitor consumer reaction Product quality under Mktg.responsibility Handle complaints quickly/efficiently Be a courteous/helpful host State realistic product claims Help consumer on product use Sell solution instead of product Post purchase assurance

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