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Prepared by

VAISHNAVI NIII/IT

SNS College of Engneering,Coimbatore-641107Department of Mechanical Engineering

(Accredited by NBA)

OMF551 - Product Design and Development

Topic 4 : Behaviour Analysis

B.BALAMURALI AP/MECH -PDD 1

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Studying consumer behaviour:

• Analysing behaviour and everything

that influences behaviour?

•Making the complexities possible to

grasp by taking one step at a time!

• But still using a holistic view!

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• Looking at consumers from different

perspectives: as a marketeer, as a

distributor, from a shop perspective,

from a customer perspective and from

the regulator/government perspective!

• The goal is to become better thinkers

concerning consumers and customers!

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Reasons:

• Changes in competition, from

sellers to buyers market

• We have gone from satisfying

primary needs to satisfying

more complex needs

• Changes in the IT systems

• Better quality in marketing

research and developments in

consumer behaviour and

marketing research

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The history of consumer

behaviour as a science • Up to 1940: Sociological research and

practical studies of selling processes

•1940-1964: Motivation research

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Motivation research

Ernst Dichter, Motivation Research Inc.

• The Cake Mix study 1950

• Depth interviews and antropological

studies

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Motivation research using

quantitative research methods

• Nescafé – product development – testing

– test launching – problems – new tests –

new launch – more problems

• Mason Haire jr. (1950)

– 100 women i two matching groups. Questions

about shopping lists for groceries.

– (……., Nescafé or Maxwell House,….)

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Nescafé study 1950 and 1970

Nescafé 1950 1970– Lazy wife 48% 18%

– Thrifty 4% 36%

– Spendthrift 12% 23%

– Bad wife 16% 18%

Maxwell House– Lazy wife 4% 10%

– Thrifty 16% 55%

– Spendthrift 0% 5%

– Bad wife 0% 5%» Haire jr( 1950) Webster jr (1974)

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The history of consumer behaviour

as a science

• Up to 1940: Sociological research and practical

studies of selling processes

•1940-1964: Motivation research

•1960s: One-factor models

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One-factor models

• The study of individual phsychologicl and

sociological factors and the relationship to

buying or not buying a product

• Example – The car industry

– Who reads ads for cars?

– Cognitive dissonance!

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The history of consumer behaviour

as a science

• Up to 1940: Sociological research and practical

studies of selling processes

•1940-1964: Motivation research

•1960s: One-factor models

•1960s and 70s: The rise and fall of the

comprehensive theorethical models

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Grand theories – Howard & Sheth

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Test of Grand Theories

• Results show low R2 values!

• Why?

– Difficulties in measurement, lack of validity

and reliability

– Difficulty in specifying the model

relationships

– Feedback loops vs causal relationships

– Real consumer behaviour and quantitative

characteristics?

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The history of consumer behaviour

as a science

• Up to 1940: Sociological research and practical

studies of selling processes

•1940-1964: Motivation research

•1960s: One-factor models

•1960s and 70s: The rise and fall of the

comprehensive theorethical models

•1980-: Different parallell research traditions

• Attitude research

• Qulitative research

• Use of multivariate statistical models on

quantitativ data

• Measurement of customer satisfaction

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Multivariate techniques

• From bivariate to multivariate analysis

– Univariate analyses

– Bivariate analyses

– Multivariate analyses

• Using mixtures of scales in analyses

• Finding patterns through the use of

factor analysis

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Bivariate method

• American Survey

Not-married Married

Eating candy regularly 75% 63%

Sample 999 2010

Hypoteses? CandyMarital status

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Bivariate method

Under 25 Over 25

Eating candy regularly 80% 58%

Sample 1302 1707

Hypotheses?CandyAge

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Multivariate method

Not-m Married Not-m Married

-25 -25 25 + 25 +

Eating candy 79% 81% 60% 58%

regularly

Sample 799 503 200 1507

Hypotheses? CandyMartial status

Age

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Consumer Behaviour Definition

Peter, Olsen & Grunert model

• Consumer behaviour is dynamic

• Consumer behaviour is built on

interactions

• Consumer behaviour consists of

exchange relationships

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1. Consumer behaviour is dynamic

Individual consumers, consumer groups and

among these housholds and society at large

are changing at an increasing speed.

Generalisations about consumer behaviour is

to a very large extent limited in time and

space. Marketing strategies must always be

adjusted to new circumstances!

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2. Consumer behaviour is built on

interactions

To understand consumers and to develop

efficient marketing strategies we must

understand what consumers think (coginition),

how they feel (affective processes), what they

do (behaviour) and what happends in the

environment and in the market that influence

and is influences by what the consumer thinks,

feels and does.

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3. Consumer behaviour consists of

exchange relationships

As the market concept has been developed

more and more various types of exchanges

have been studied. Exchange of money, goods,

services, political thinking, religious thoughts,

art etc etc…

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Consumer Issues and Marketing

Strategy

Many links! Many aspects on

consumer behaviour influences

marketing strategy! Not everything can

be studied. The choice of questions is

extremely important for the marketer.

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The Relationship between marketing

strategy and Consumer Behaviour?

Marketing Strategy

•Segmentation

•Product

•Promotion

•Pricing

•Distribution

Consumer Behaviour

•Demographic and socio

economic variables

•Personality

•Expectations

•Awareness

•Knowledge

•Attitudes

•Motivation

•Intentions

•Behaviour

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The basic model for analysing

consumer behaviour

Many theories, models and concepts are

used to understand consumer behavour.

An number of sciences are useds as e g

micro economics, sociology, social

psychology, psychology, economic

geography, antropopogy etc etc.

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The Wheel of Consumer Analysis consists of:

1. Affect and cognition

a. Affect as e g:•Strong feelings like love, annoyance and

hate

•Less strong feelings lika satisfaction and

frustration

•General feelings like being relaxed or bored

•Feelings about products and services, e g ”I

like product X!”

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The Wheel of Consumer Behavior

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b. Cognition are mental processes and

knowledge structures we use when we as

individuals react on changes in our

environment. Cognitive processes take the

form of:

•Knowledges we base on experience and

that we store in our memory

•Psychological processes: •When we become aware of and understand our

environment

•When we remember things

•When we evaluate alternative courses of action

•When we make decisions about where, when and how

we buy products and services.

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2. Behaviour

Consumers’ overt actions that we can

observe directly

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3. Consumer environment

•The environment is the complex envionment of

physical and social stimuli around the

consumer.

•This consists of things, places and people.

•The marketer can to varying degrees influence

some of these stimuli, e g proucts, pacaging,

services, advertising, personal selling, pricing,

store layout etc.

•Other stimuli can be studied and forecasted,

e g competiors actions.

•Finally some facors in the environment are

totally unpredictable.

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Relationships between factors in

the model

One-way cause-effect relationships or

two-way interactions of ”reciprocal

determinism”?

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Basic conclusions:

•All analyses of consumer behaviour must

take into account all three basic factors in

the model

•Start with the factor that seem to be the

most obvious or the most important. From

that point of view work your way around the

other factor in the model.

•Analyses must be dynamic. Consumer

behaviour changes in time and space

eternally!

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Further conclusions

• Consumer analysis does not end with

the choice of market strategy.

• The analysis does not end when the

strategy is implemented.

• Consumer analysis, choice of strategy,

implementation and ongoing evaluation

etc is the key to efficient marketing!

• THANK YOU

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