consumer behavior ch6 presentation
TRANSCRIPT
-
8/8/2019 Consumer Behavior Ch6 Presentation
1/38
ANALYZING CONSUMER MARKETS ANDANALYZING CONSUMER MARKETS ANDBUYING BEHAVIORBUYING BEHAVIOR
Knowing customers are never simple.Knowing customers are never simple.
They state their needs and wants, in one directionThey state their needs and wants, in one directionand act otherwiseand act otherwise..
Model of Consumer BehaviorModel of Consumer Behavior
7 Os Frame work7 Os Frame work Whenever marketing manager cannot excess theWhenever marketing manager cannot excess the
consumer, it has to rely onconsumer, it has to rely on
7 Os framework7 Os framework for consumer researchfor consumer research..
-
8/8/2019 Consumer Behavior Ch6 Presentation
2/38
Who constitutes the market?Who constitutes the market?
OccupantsOccupantsWhat does the market buy?What does the market buy?
ObjectsObjectsWhy does the market buy?Why does the market buy?
ObjectivesObjectivesWho participates in buying?Who participates in buying?
OrganizationsOrganizationsHow does the market buy?How does the market buy?
OperationsOperationsWhen does the market buy?When does the market buy?
OccasionsOccasionsWhere does the market buy?Where does the market buy?
OutletsOutlets
..
Questions regularly asked:Questions regularly asked:
-
8/8/2019 Consumer Behavior Ch6 Presentation
3/38
CultureCultureCulture is a most fundamentalCulture is a most fundamentaldeterminant of persons wants anddeterminant of persons wants andbehavior.behavior.e.g. growing child acquires some value,e.g. growing child acquires some value,and perceptions from its surroundingand perceptions from its surrounding(family+ institution and culture)(family+ institution and culture)Culture isCulture is pp transferable (generation)transferable (generation)
pp NurturedNurturedpp Explicit and implicit from theExplicit and implicit from the
behaviorbehaviorpp Change is difficult but notChange is difficult but not
impossible.impossible.
..
Factors influencing buying behavior:Factors influencing buying behavior:
-
8/8/2019 Consumer Behavior Ch6 Presentation
4/38
SubcultureSubcultureThey are for more specific identificationThey are for more specific identificationand socialization.and socialization.
e.g. nationalities, religious etc.e.g. nationalities, religious etc. MuslimMuslimculture Pakistan Indonesia Malaysiaculture Pakistan Indonesia Malaysia
..
Factors influencing buying behavior:Factors influencing buying behavior:
Pakistan Indonesia Malaysia
Muslim Culture
-
8/8/2019 Consumer Behavior Ch6 Presentation
5/38
Social classSocial classEarlier we have studied 6 classesEarlier we have studied 6 classes
divisions.divisions.7 classes division on (page176). Table7 classes division on (page176). Table-- 6.16.1with addition of working class.with addition of working class.Division is done on the basis of similarDivision is done on the basis of similar
values, interests and behavior other thanvalues, interests and behavior other thanincome level. (For consumers)income level. (For consumers)Characteristics of Social classesCharacteristics of Social classesa. Each division behaves more alike.a. Each division behaves more alike.
b. Persons are in inferior or superiorb. Persons are in inferior or superiorposition according to their position inposition according to their position insocial class.social class.
c. Movement from one class to another isc. Movement from one class to another is
possible.possible.
..
-
8/8/2019 Consumer Behavior Ch6 Presentation
6/38
d. There are many variables on whichd. There are many variables on whichthey depend; income, education,they depend; income, education,occupation, wealth etc.occupation, wealth etc.
..2. Social factors:Consumer behavior is also influenced by social
factors.e.g. family, reference groups.Reference Groups:That group, which has a direct or indirect influence
on behavior of consumer.One is direct influence group:
-
8/8/2019 Consumer Behavior Ch6 Presentation
7/38
..
Membership Group
Primary Group:Family, Friends, Neighbors,Co-workers(More interaction)
Secondary Groups:Religious groups, Religions,Professionals trade union groups.(Less interaction)
Consumer behavior is influential in three ways.Reference p New behavior and life styles.
pAttitudes and self-concept.p Pressures, which will affect the personal
decisions.
-
8/8/2019 Consumer Behavior Ch6 Presentation
8/38
..
a. Group to which a person wants to associatehimself is anspirational groups.
e.g. cricket team, Pepsi---- in brands. Aerial/ Surf.b. Dissociative groups, is one whose values or
behavior individual reject.
Opinion Leaders:It is a person offers, advice and information about abest product
Which one is the best productOr how to use productBenefits ofproduct.
-
8/8/2019 Consumer Behavior Ch6 Presentation
9/38
..
Family:Family members constitute the most influential
primary reference group.Family ofOrientations
e.g. from parents a person acquire orientationtoward religion, politics and economies etc.Family ofProcreation
e.g. Spouse and Children.
Roles and Status
Person participates with many group throughout his lifeE.g. family, clubs, organizations etc.
He has a different role and statues in each positionassociated.
-
8/8/2019 Consumer Behavior Ch6 Presentation
10/38
..
Role: Consists ofactivities that a person isexpected to perform.
Status: (position, where consumer works)Each role carries a status.(Status Symbols)
Personal Factors: Age and stage in the life cycle. Occupation Economic Circumstances Life styles Personality Self-Concept
-
8/8/2019 Consumer Behavior Ch6 Presentation
11/38
..
Age and Stage in Life Cycle:With the age buying habits change.
e.g. baby food, than normal food, special food.Age is related with, selection of clothes, furniture,recreation etc.
Stage refers to psychological life cycle stages.e.g. Divorce, marriage.
Occupation:According to occupation goods are preferred bycustomers.Like engineers use; Auto CAD.(Computer programs)Artists/ Architects use; Correl Draw.(Computerprograms)Also work environments effect the consumerpreference greatly.
-
8/8/2019 Consumer Behavior Ch6 Presentation
12/38
..
Economic Circumstances:
Greatly affect the buying conditions specially,savings and monthly income.
And spending attitude.Life Style:
Depicts persons activities, interests andopinions.
Lifestyle portrays the whole personinteracting with his or her environment.
e.g. students, teachers, business executives,marketers, bankers.
-
8/8/2019 Consumer Behavior Ch6 Presentation
13/38
..
Personality and Self- Concept:Personality means a persons distinguished,
psychological characteristics, which willlead to relatively constant responses.
Self-Concept:How a person views himself, actual self-concept,and ideal self-concept.Others Self Concept:How she thinks others see others.
4. Psychological factors: Motivation Perception Learning
Beliefand attitudes
-
8/8/2019 Consumer Behavior Ch6 Presentation
14/38
..
Motivation:A person may have needs, some needs are
biogenic and some are psychogenesis. Biogenic needsThey arise from physiological states of
tension such as hunger, thirst, anddiscomfort.
Psychogenic needsThey arise from psychological state of
tension, such as need of recognition,esteem, or belonging.
Need becomes a motive when it reaches a sufficientlevel of intensity.
Motive is a need that sufficiently pressing to drive the
person to act.
-
8/8/2019 Consumer Behavior Ch6 Presentation
15/38
..
Conclusion:Actually need, when reaches a certain level, it
motivates a person to act.There are 3 theories in this regard:1. Sigmund Freud: (Theory of motivation)He says that real forces shaping the persons
behavior or for the motivation of a person islargely unconscious.
[Thus a person cannot fully understand his/her motivations] id, Super Ego, Ego.
e.g. each product is capable of satisfyingunique set of motives.
Like Burger at Mc Donalds is fun, Socialrelaxation, status.
-
8/8/2019 Consumer Behavior Ch6 Presentation
16/38
..
Motivational positioning: (Jan Callebaut)Manufacturer will place a product in a way,
seeing the motives of the people, andspecialized in one motive (where needs arestrong and people are ready to act).
2. Maslow Theory Of motivation: (Abraham
Maslow)He says that human needs are arranged in
hierarchy. (From most pressing to leastpressing)
Manufacturers try to concentrate on type ofmotive, in a particular area to satisfy theirneeds.
3. Fredrick Herzberg: (two factor theory of
motivation)
-
8/8/2019 Consumer Behavior Ch6 Presentation
17/38
..
Satisfier & Dis-satisfier
Factors that causesatisfaction
Factors that causesatisfaction
-
8/8/2019 Consumer Behavior Ch6 Presentation
18/38
..
Two implications of this theoryFirst:
Seller will try to avoid dis-satisfiers i.e.poor service policy, poor delivery.
Second: Seller should identify the major
satisfiers or motivators and then try todeliver it.
Perception:A motivated person is ready to act, is influenced by
his perception.Perception is a process in which input information, isselected, organized and interpreted to create ameaningful picture of the world.
-
8/8/2019 Consumer Behavior Ch6 Presentation
19/38
..
Perception depends upon:I
ndividual natureSurroundings (brought up)Condition of individual
(happy, sad)
Different people perceive things differently,because;Selective attentionSelective distortion
Selective retention
-
8/8/2019 Consumer Behavior Ch6 Presentation
20/38
..
Selective Attention:People are exposed to a number of stimuli daily
(Adds) but they are attracted towards some of them(rest are screened out).This selection/ screening depends on:p People are more likely to notice stimuli that need
to a current need. (Computers).p People are more likely to notice stimuli that theyanticipate. (New technologies).
p People are more likely to notice stimuli, whosedimensions are large in relation to the normal size ofstimuli. (Discount on computers $100- attraction will bethere as compared to an offer of$5 discount).
-
8/8/2019 Consumer Behavior Ch6 Presentation
21/38
..
Selective distortion:It is a tendency to twist information in way to support
persons perceptions.Ads do not sometimes, means what people interpret. (NikeJust do it)Manufacturer cannot do any thing but to be careful inmaking ads.Selective Retention:People will forget much of the information but will tend toretain information that supports their attitudes and beliefs.Learning:It involves changes in an individuals behavior arising fromexperience.p Human behavior is mostly learned.Learning is produced through inter play of;
-
8/8/2019 Consumer Behavior Ch6 Presentation
22/38
..
DriveStimuliResponses
Reinforcement p generalization (+ve)p Discrimination (-ve)
Drive: is a strong internal stimulus impelling action.(Linda brown has a drive toward self-actualization)Stimuli: Computer (reward)
Cues: are minor actions [stimuli (surroundings)],which help in decision.e.g. (Linda brown, seeing friends computers, officecomputers)
Reinforcement:Generalization: (+ve Reinforcement)If reward is good person generalizes.e.g. if you use IBM computer, you will go for IBM copiers,
printers etc.
-
8/8/2019 Consumer Behavior Ch6 Presentation
23/38
..
Discrimination: (-ve Reinforcement)
If reward is not good you will go for other brand.
p Theorists suggests that demand for productlearning can be created by associating it with strongdrives, motivating cues and providing positivereinforcement.Beliefs and Attitudes:
Belief is a descriptive thought that a person holdsabout something.Is important in products likeOrigin of product
Country reputation in product (Japanesetechnology)Country image (American PEPSI), (Made in Japan)Attitude/ response towards countries. (Israelifirms)
-
8/8/2019 Consumer Behavior Ch6 Presentation
24/38
..
Attitude is persons enduring favorable or un-
favorable evaluations, emotional feelings and action
tendencies toward some object or idea.Attitude lead people to behave in a similar waytoward the same object.Attitude put a person into a frame of mind of likingor dis-liking toward a product.People have attitude toward every thing. (politics,clothes, music, religion)Attitude is sort of a permanent behavior and tochange that many other attitudes mostly need
adjustments.Buying Process:How buying process actually takes place?Buying roles:Initiator: A person who first suggest the ideas of
buying.
-
8/8/2019 Consumer Behavior Ch6 Presentation
25/38
..
Influencer: A person whose views and advices influencethe decision.
Decider: What to buy, where to buy, how to buy,
whether to buy or not?Buyer: A person who makes an actual purchase.User: Real user of the product.Buying behavior:Buying behavior for different products are different.
Assael give 4 types of buying behavior on the degree ofinvolvement of buyer and degree of difference amongbrands.
Complex Buying Behavior:Usually for those products
Which are expensiveBrought infrequentlyRiskyAnd highly self expressive [priority of brand or
differentiation]
-
8/8/2019 Consumer Behavior Ch6 Presentation
26/38
..
Consumers are involved in complex buying behaviorwhen they are highly involved in a purchase, and are
aware of significant difference among brands e.g. Airbus, Plaza.1st. Belief2nd. Attitude3rd. Purchase.
Manufacturer must introduce the strategy in whichhe can promote those features of product, which willdifferentiate the brand prominently.
Dissonance Reducing Behavior:Highly involved consumerBut no/ little difference in brands.High involvement refers to the fact that purchase is
expensive, infrequent, and risky.
-
8/8/2019 Consumer Behavior Ch6 Presentation
27/38
..
As there is little brand difference, so consumer willbuy those products, which are less in price or
conveniently available e.g. carpet.1st. Purchase2nd. New belief3rd. Attitudes.After the purchase consumer develop dissonance. If
someone says some good things about some otherbrand or say nasty things about the purchasedproduct.
Habitual Buying Behavior:Low consumer involvementAbsence of brand differencee.g. salt, pencil.If consumer buys the same brand of salt again and
again, it is a habit not brand loyalty.
-
8/8/2019 Consumer Behavior Ch6 Presentation
28/38
..
One reason of low involvement is less cost.Low involvement becauseCustomer does not care for product.Do not look for information about it.Do not waste time in making belief.Instead Ad repetition will cause in this case brand
familiarity.1st. Belief formed by brand familiarity2nd. Purchase3rd. No evaluation (because they dont care)For Low Involvement Product:
T.V is a good advertising media.As simple and short message is to be delivered.It will gain attention if imagery or design with some
attractive features are displayed.
-
8/8/2019 Consumer Behavior Ch6 Presentation
29/38
..
Manufacturer should concentrate on price cuts and
promotion for low involvement products.Four strategies by which low involvement can be
converted into high involvement.Linking of product to some involving issue e.g.
toothpaste to cavity.Linking product with situation e.g. coffee in morning
situation, cold drink when somebody is thirsty.Linking product with personal values or ego e.g. PAFAdding an important product feature e.g. plain drink
with Vitamins, powdered milk with Calcium.They promote the product from low involvement to
moderate involvement only.
-
8/8/2019 Consumer Behavior Ch6 Presentation
30/38
..
Variety seeking Behavior:Low consumer involvementMuch brand difference.These are products in which consumers do brand
switching.e.g. cookies, toffees. (Just for change of taste).Leader Firms in this type will try to provide more stock
in the market;Not leaving any shelf spaceRepeated advertisingChallenger firmsTry to innovate productsNew featuresPrice cutsFree SamplesCouponsp
To make a difference in the market.
-
8/8/2019 Consumer Behavior Ch6 Presentation
31/38
..
Stages of Buying Behavior Process:Smart companies research the buying decision
processMarketers can use many methods to know the stages
of buying decision.1. Introspective method:They can think about how they themselves would act.
2. Retrospective method:By interviewing small no. of recent purchasers asking
them to recall the events involved in purchase.3. Prospective method:Locate consumer who plan to buy the product and ask
them how they decided to buy.4. Prescriptive method:Consumers are asked to tell the ideal way, to buy the
product.
-
8/8/2019 Consumer Behavior Ch6 Presentation
32/38
..
Stages
Information Search
Evaluation of Alternatives
Post Purchase Behavior
Purchase Decision
Problem Recognition
-
8/8/2019 Consumer Behavior Ch6 Presentation
33/38
..
1. Problem recognition:Buying process starts when the buyer recognizes a
problem or a need.Need is aroused by an internal or external stimuli.e.g. you see food, you feel hungry.You see a new car, you want to buy it.Important step, also used in research process, need
is to be correctively traced out, converted intomotive. (Threshold level)2. Information search:Aroused consumers will look for more information.Two levels
One: The mild research stage is called hyperattention.
(Linda brown pays more attention to computer Ads)Two: Active information search.(Linda brown) she will particularly make an effort to
find information about computers.
-
8/8/2019 Consumer Behavior Ch6 Presentation
34/38
..
There are four sources where information can be found.Personal source (Family, friends, neighbors)Commercial sources (Adv, Sales persons, dealers,
packaging)Public sources (Media, Consumer rating organization)Experimental sources (Handling, examining, using
product)Most information comes from commercial sources,
(Marketer dominated source)Effective information from personal source.Commercial information performs informing function.Personal source perform evaluation function.
3. Evaluation of Alternatives:Rating of attributes of product is done.In evaluation process:Type of needBenefits of productAttributes of product are important.
-
8/8/2019 Consumer Behavior Ch6 Presentation
35/38
..
Consumer evaluation is difficult to interpret because theyhave their own brand beliefs.
(i.e. where each brand stands on its attributes) and the setof beliefs about a brand makeup brand image.
There are some strategies, which will stimulate buyingprocess of consumer towards any brand.
I. Modification:Technique is known as real positioningAdding attributesFeaturesII. Alter Belief about the Brand:
Standing of the brand in customer eyes.This is known as psychological repositioning.III. Alter Beliefs about Competitors brands:Competitive de-positioning
-
8/8/2019 Consumer Behavior Ch6 Presentation
36/38
..
IV. Alter the Importance Weights:Diverting customers attention towards the attributes in
which the brand excels.V. Call Attention to Neglected Attributes.VI. Shift the Buyers Ideals:Marketers will persuade buyers to change the ideals for
one or more attributes by offering any attractive
attributes.4. Purchase Decision:Two factors are important.One: Attitudes of othersTwo: Un anticipated situational factors
Mishap, emergencyor you need money for other purposesSituation at that momentRisk factor in purchase decision
-
8/8/2019 Consumer Behavior Ch6 Presentation
37/38
..
In one decision there are 5 or more sub-decisions.Brand decisionVendor decision (supplier, Purchase decision)Quantity decisionTiming decisionPayment method (credit card, cash payment, installments)5. Post- Purchase Behavior:
Marketer job does not end, when product is bought butit continues after purchase.
Satisfaction level (that matters)How much?Post-Purchase actions:
Satisfied customer will buy the product again.e.g. ChevroletOur best advertisement is our satisfied customers.
-
8/8/2019 Consumer Behavior Ch6 Presentation
38/38
..
Post-Purchase use and Disposal:
How consumers use and dispose off the product.If product is lying in the closet, it is not much satisfying.Send it to some body else and did not use by him self.How Lifestyles are identified:Psychographics
Science of measuring and categorizing life styles ofconsumers.
AIO Frame work activities, interest and opinions.VALS TM 1978 Values and Lifestyles.VALS 21988-89 Framework