Consumer BehaviourConsumer Behaviour

Based on concepts from Based on concepts from

PsychologyPsychology SociologySociology AnthropologyAnthropology MarketingMarketing EconomicsEconomics

Target CustomerTarget Customer

No store can be all things for all No store can be all things for all people people

Population is sub divided into smaller Population is sub divided into smaller groups having similar characteristicsgroups having similar characteristics

Market Segmentation-Smaller Market Segmentation-Smaller segments exhibiting homogeneous segments exhibiting homogeneous responses to various products and responses to various products and servicesservices

Why do we need to study Why do we need to study Consumer Behaviour?Consumer Behaviour?

Because no longer can we Because no longer can we take the customer/consumer take the customer/consumer

for granted.for granted.

The CustomerThe Customer Answers to the following 5 questions Answers to the following 5 questions

determines the fashion each seasondetermines the fashion each season- WHO IS THE CUSTOMERWHO IS THE CUSTOMER- WHERE DOES HE LIVEWHERE DOES HE LIVE- WHAT DOES HE DO WHAT DOES HE DO - WHEN DOES HE WEAR CLOTHESWHEN DOES HE WEAR CLOTHES- WHY DOES HE BUY GARMENTSWHY DOES HE BUY GARMENTS

} } designers & retailers re evaluate customer’s designers & retailers re evaluate customer’s profile to create and select merchandise that will profile to create and select merchandise that will sell.sell.

Failure rates of new Failure rates of new products introducedproducts introduced

Out of 11000 new products Out of 11000 new products introduced by 77 companies, only introduced by 77 companies, only 56% are present 5 years later.56% are present 5 years later.

Only 8% of new product concepts Only 8% of new product concepts offered by 112 leading companies offered by 112 leading companies reached the market. Out of that reached the market. Out of that 83% failed to meet marketing 83% failed to meet marketing objectives.objectives.

All managers must become All managers must become astute analysts of consumer astute analysts of consumer

motivation and behaviourmotivation and behaviour

Factors affecting Buying Factors affecting Buying BehaviourBehaviour

PsychologicalPsychological SociologicalSociological Buying roles of family membersBuying roles of family members Population characteristicsPopulation characteristics Personal characteristicsPersonal characteristics

Can Marketing be Can Marketing be standardised?standardised?

No.No.

Because cross - cultural Because cross - cultural styles, habits, tastes, styles, habits, tastes,

prevents such prevents such standardisation.standardisation.

Unless Managements actUnless Managements act

The more successful a firm The more successful a firm has been in the past, the has been in the past, the

more likely is it to fail in the more likely is it to fail in the future.future.

Why?Why?

Because people tend to Because people tend to repeat behaviour for which repeat behaviour for which they have been rewarded.they have been rewarded.

Language ProblemsLanguage Problems ““Please leave your values at the desk” - Paris Please leave your values at the desk” - Paris

hotelhotel ““Drop your trousers here for best results” - Drop your trousers here for best results” -

Bangkok laundryBangkok laundry ““The manager has personally passed all water The manager has personally passed all water

served here” - Acapulco restaurantserved here” - Acapulco restaurant ““Because of the impropriety of entertaining Because of the impropriety of entertaining

guests of the opposite sex in the bedroom, it is guests of the opposite sex in the bedroom, it is suggested that the lobby be used for the suggested that the lobby be used for the purpose.” - Zurich hotelpurpose.” - Zurich hotel

Ladies are requested not to have children in Ladies are requested not to have children in the bar.”- Norway barthe bar.”- Norway bar

““Come alive with Pepsi”Come alive with Pepsi”

““Come alive out of the grave” - Come alive out of the grave” - GermanyGermany

““Pepsi brings your ancestors back Pepsi brings your ancestors back from the grave” - Chinafrom the grave” - China

Buyer BehaviourBuyer Behaviour

Consumer

4PsMarketing

EnvironmentBuyer

CharacteristicsBuyer

Decision ProcessBuyer

Decision

Marketing StimuliMarketing Stimuli

4 Ps

Product Price Place Promotion

Other StimuliOther Stimuli

MarketingEnvironment

Economic Technological Political Cultural

Buyer characteristicsBuyer characteristics

CulturalCultural SocialSocial PersonalPersonal PsychologicalPsychological

Buyer’s Decision ProcessBuyer’s Decision Process

Problem RecognitionProblem Recognition Information SearchInformation Search Evaluation of AlternativesEvaluation of Alternatives Purchase DecisionPurchase Decision ConsumptionConsumption Postpurchase behaviourPostpurchase behaviour

Buyer’s DecisionBuyer’s Decision

Product ChoiceProduct Choice Brand ChoiceBrand Choice Dealer ChoiceDealer Choice Purchase TimingPurchase Timing Purchase AmountPurchase Amount

Cultural factorsCultural factors

CultureCulture Sub - cultureSub - culture Social ClassSocial Class

Social factorsSocial factors

Reference GroupsReference Groups FamilyFamily Roles and StatusRoles and Status

Personal FactorsPersonal Factors

Family Life CycleFamily Life Cycle Occupation and Economic Occupation and Economic

circumstancescircumstances LifestyleLifestyle Personality and self - conceptPersonality and self - concept

Psychological FactorsPsychological Factors

MotivationMotivation PerceptionPerception LearningLearning Beliefs and AttitudesBeliefs and Attitudes

Buying RolesBuying Roles

InitiatorInitiator InfluencerInfluencer DeciderDecider BuyerBuyer UserUser

Buying BehaviourBuying Behaviour

ComplexComplex Dissonance - ReducingDissonance - Reducing HabitualHabitual Variety seekingVariety seeking

Buying ProcessBuying Process

Problem RecognitionProblem Recognition Information SearchInformation Search Evaluation AlternativesEvaluation Alternatives Purchase DecisionPurchase Decision

Post - Purchase BehaviourPost - Purchase Behaviour

SatisfactionSatisfaction ActionsActions Use and DisposalUse and Disposal