chapter 4 consumer behaviour

8/13/2019 CHAPTER 4 Consumer Behaviour

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Consumer Behaviour

Learning Objectives:

Understand what motivates a customer to buy a productor service.

Know the consumer decision making process

Understand the factors that infuence consumer decisions

Know the toos used to study consumer decision making.


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Consumer Behaviour

!efinition:

Consumer buyer Behaviour

"he buying behaviour of fina consumers# individuas and

househods who buy goods and services for persona

consumption.

Consumer $arket:

% the individuas and househods who buy or ac&uire

goods and services for persona consumption.


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Consumer Behaviour

%naysis of buyer or customer behaviour can be done

into two broad groups :* Consumer buyersare those who purchase items fortheir persona consumption

*Industrial buyersare those who purchase items onbehaf of their business or organisation


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Consumer Behaviour

Businesses now spend considerabe sums trying to

earn about what makes 'customers tick(. "he&uestions they try to understand are:

) *ho buys+

) ,ow do they buy+

) *hen do they buy+) *here do they buy+

) *hy do they buy+


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)

,ow do they buy+ :

Buyer decision process


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How does the customer obtain theinformation ?

) -ersona sources:

famiy friends neighbours etc

) Commercia sources:

advertising/ saespeope/ retaiers/ deaers/

packaging/ point#of#sae dispays

) -ubic sources:

newspapers radio teevision consumerorganisations/ speciaist maga0ines

) 12perientia sources:

handing e2amining using the product


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How does the customer use theinformation obtained?

High-involvement purchasesincudethose invoving high e2penditure or

persona risk 3 for e2ampe buying a

house a car or making investments.Low involvement purchases4e.g.

buying a soft drink choosing some

breakfast cereas in the supermarket5have very simpe evauation processes.


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%ternative evauation

"he stage of the buyer decision

process in which the consumer uses

information to evauate aternative

brands in the choice set.


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-urchase decision

"he buyer6s decision about whichbrand to purchase.

-ost -urchase behaviour:

"he stage of the buyer decision process

in which the consumers take further

action after purchase based on theirsatisfaction or dissatisfaction.


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Post-purchase evaluation - Cognitive Dissonance

uyer discomfort caused by post purchaseconflict!

It is common for customers to e"perienceconcerns after ma#ing a purchase decision.

"he customer having bought a product mayfee that an aternative woud have beenpreferabe.

7n these circumstances that customer wi notrepurchase immediatey but is ikey to switchbrands ne2t time.


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8timuus 39esponse $ode

Buyers

black

box


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actors infuencing consumer behaviour


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Cutura actors

Cuture:"he set of basic vaues perceptions wants andbehaviours earned by a member of society and otherimportant institutions.

8ubcuture :

% group of peope with shared vaue systems basedon common ife e2periences and situations. 12: 7n7ndian Cuture we have ,indus $usims Christians 8ikhs as reigious subcutures.

8ocia Cass:

9eativey permanent and ordered divisions in asociety whose members share simiar vauesinterests and behaviour.


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8ocia actors

9eference groups

7mpies peers reatives neighbours

and friends infuences a man6s

behaviour.Opinion Leader

-erson within a reference group who

because of specia skis knowedgepersonaity or other characteristics

e2erts socia infuence on others.


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8ocia actors

amiy7mportant buying organi0ation of society.

$arketers shoud study roes and infuencesof the husband wife and chidren on

purchase of different products ; services.9oes ; status

% person beongs to many groups# famiycubs and organi0ations. % person6s roe in

each group is defined by both roe and status.% roe is set of activities a person need toperform in the different groups. 1ach roecarries a status with it. 12: a working mother.


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8ocia actors

"he typica roes in such a group decision can be summarisedas foows: Initiator

"he person who first suggests or thinks of the idea of buying aparticuar product or service Influencer

% person whose view or advice infuences the buying decision Decider

"he individua with the power and


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-ersona actors %ge ; amiy Life cyce

8tages in LC:=. Bacheor stage

>. ?ewy married coupes

@. u nest = : coupe with chid under Ayrs

.u nest 77 : coupe with youngest chid Ayrs orover.

. u nest 777: oder married coupe with dependentchidren

A. 1mpty nest 7 : oder married coupe with no chidren

iving with them. ,ead of househod in abour force.D. 1mpty nest 77 : oder married coupe with nochidren iving with them. ,ead of househod retired

E. 8oitary survivor in abour force

F. 8oitary survivor retired.


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-ersona actors Lifestye

% persons pattern of iving as e2pressed

in his or her activities interests and

opinions.

%ctivities: work hobbies shopping

sports socia events.

7nterest: food fashion recreations etc

Opinion: about sef socia issues

business products ; services


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-ersona actors -ersonaity:

"he uni&ue psychoogica characteristics that

ead to reativey consistent and asting

responses to one6s own environment.

-ersonaity is a trait described in terms of sefconfidence dominance sociabiity

autonomy defensiveness adaptabiity etc.

8ef concept is the individua6s own perceived

image and

actua image is based on how others perceive

the individua.


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-ersona actors Brand -ersonaity:

"he specific mi2 of human traits that maybe attributed to a particuar brand.

9esearcher has identified brand

personaity traits:=. 8incerity 4 honest down#to#earth5

>. 12citement 4 daring spirited5

@. Competence 4 reiabe inteigent5. 8ophistication 4 upper cass and

charming5

.9uggedness4 rough ; tough5


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-ersona actors Occupation

1conomic circumstances


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-sychoogica actors

$otive 4 or drive5:% need that is sufficienty

pressing to direct the

person to seek satisfaction

of need.

-erception

% process by which peope

seect organi0e and

interpret information toform meaningfu picture of

the word.


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$asow6s ,ierarchy of ?eeds

Esteem Needs(self-esteem, status)

Social Needs(sense of belonging, love)

Safety Needs(security, protection)

Physiological Needs(hunger, thirst)

Self

Actualization(Self-development)


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-sychoogica actors

Learning:Changes in an individua6s behaviour arisingfrom e2perience. Learning occurs throughinterpay of:

!rives: a strong interna stimuus that cas foraction.

Cues 4 signas5 : minor stimui whichdetermine when where and how a personresponds.

9esponse

9einforcement


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1motions


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$emory

8hort term memory

Long term memory


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igure .@ ,ypothetica L7C $enta $ap


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"he Buyer !ecision -rocess for ?ew

-roducts

% new product can be defined as:"A good, service or idea that is

perceived by some potential

customers as new. It may have beenavailable for some time, but manypotential customers have not yetadopted the product nor decided tobecome a regular user of the product"


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-roducts

Research suggests that customers go through five stages inthe process of adopting a new product or service these aresummarised below:

! Awareness # the customer becomes aware of the new

product, but lac$s information about it % Interest # the customer see$s information about the newproduct

& 'valuation # the customer considers whether trying thenew product ma$es sense

( )rial # the customer tries the new product on a limited or

small scale to assess the value of the product * Adoption # the customer decides to ma$e full and+or

regular use of the new product


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-roducts


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"ypes of Buying !ecision Behaviour

Complex Buyingbehaviour

Variety Seekingbuying behaviour

Dissonancereducing buying

behaviour

Habitual buyingbehaviour

High Involvement Low Involvement

Significance

differences

between thebrand

Few

differences

between thebrand

chapter 4 consumer behaviour

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