sem 1 topic 3 buyer beh

7/27/2019 Sem 1 Topic 3 Buyer Beh

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CONSUMER MARKETS

AND

CONSUMER BUYING

BEHAVIOUR


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THE STIMULUSRESPONSE MODEL

FACTORS AFFECTING CONSUMER BEHAVIOUR -CULTURAL -SUB CULTURAL -SOCIAL CLASS

SOCIAL FACTORS FAMILY PRIMARY REFERENCE GROUP SECONDARY

ROLES AND SOCIAL STATUS


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PERSONAL FACTORS AGE AND STAGE IN THE LIFE CYCLE

-Age -At what point of time -Occupation -Economic conditions

OCCUPATION AND ECONOMIC CONDITION Buying greatly influenced by economic conditions, earnings, savings

capacity ,debt, income stability etc

LIFESTYLE Totality of ones living Activities Interest interact with the environment

Opinions


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PERSONALITY AND SELF CONCEPT Personality is a combination of distinguishable psychological

characteristics that lead to relatively consistent response to the

environment

Strong co-relation between personality and consumer behavior

People belonging to same class, with relatively similar personalities,may have different self image. Marketers need to understand theself image of the consumers and offer brands accordingly


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PSYCHOLOGICAL FACTORS Motivation

Perception

Learning

Beliefs and Attitudes

Motivation People have multiple needs at any given point of time .A need

becomes a motive when the intensity of the need is raisedsufficiently.

Maslows Hierarchy of needs


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PERCEPTION

SELECTIVE ATTENTION

--Stimuli related to present need

--Stimuli that is anticipated

-- Stimuli varying significantly from normal stimuli

SELECTIVE DISTORTION

SELECTIVE RETENTION


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LEARNINGBELIEFS AND ATTITUDES LEARNING Behavioral changes based on experience is called learning. Human learning occurs due to mix of stimuli, drivers, cues

,responses and reinforcements.

A strong internal stimulus causing action is called a driver.

BELIEFS AND ATTITUDES

Beliefs A descriptive thought or image a person has aboutsomething.

Beliefs and attitudes are acquired thru learning and doing. Beliefs may be based on knowledge, faith or opinion.


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ATTITUDES Peoples attitude towards products is based on their attitude

towards the country of their origin.

--Impact of manufacturing countries varies with the product.

--Different countries enjoy different reputations for different

products.

--A buyers perception of country affects his perception of theproducts of that country.

--Attitudes can change over a period of time.


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BUYING ROLES

INITIATOR-The person who initiallysuggest the idea of purchase

INFLUENCER-The person whos views are sought in decision makingprocess

DECIDER-The person who decides on any aspect of purchasedecision-when, where, how much, at what cost etc

BUYER-The person who actually buys the product

USER- The person who actually uses the product


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BUYING BEHAVOUR

THERE IS A DIRECT RELATION BETWEEN BUYING DECISION ANDTHE END CONSUMER BEHAVOUR

COMPLEX--CUSTOMER DEVELOPS A BELIEF ABOUT A PRODUCT

--AN ATTITUDE DEVELOPS AROUND THIS BELIEF

--FINALLY, A DECISION IS ARRIVED AT AFTER CAREFULCONSIDERATION

USUALLY NOTICED FOR PRODUCTS WHICH ARE EXPENSIVE,RISKY AND PURCHASED RARELY.


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DISSONANCE REDUCTION

This happens when a buyer is highly involved in a purchase but sees

little difference among various brands

The buyer looks around and settles for price and convenience ofshopping-dosent pay attention to technical details

After the purchase, the buyer comes across reports on technicalaspects or price ,favorable reports of other products which causesome discomfort

The buyer is then alert to ther cues and information, reinforcementswhich reduce the feeling of discomfort.

Marketers must therefore work to reduce the area of discomfort.


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BUYER BEHAVIOR-HABITUAL There are several products that consumers buy without much

involvement

They are generally not brand conscious towards products purchasedfrequently and which are low priced.

If they are buying a particular brand, it is only because of habit

Marketers ,therefore ,believe that price and sales promotions arequite effective in pushing such products


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The marketing strategy therefore revolves around

a) Linking products to a specific issue Colgate for bad breadth

b) Linking the product to a personal situation-Bournvita to childrens

health

c) Designing ads which evoke strong emotions

d) Adding new features to the existing product


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BUYING BEHAVIOR-VARIETY SEEKING

In many situations while the involvement is low, there may be a lotof brand differentiation.

The consumer has a general idea about the product. He buys theproduct without much forethought and evaluation.

He then tries the product and evaluates it accordingly.

He may continue with the product or may experiment with another.

His decision to switch may be a) Based on dissatisfaction with the product b) Need for variety.


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STAGES IN BUYING DECISION PROCESS

--PROBLEM RECOGNITION --INFORMATION SEARCH

--EVALUATION OF ALTERNATIVES

--PURCHASE DECISIONS

--POST PURCHASE BEHAVIOR

-- POST PURCHASE SATISFACTION

-- POST PURCHASE ACTIONS

--POST PURCHASE USE AND DISPOSAL


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PROBLEM RECOGNITION

The process begins when the consumer realizes that he has a need.Not satisfying that need is causing a problem to him.

This need can be triggered by

External Stimuli Internal Stimuli

Marketers must therefore know what type of needs are triggeredby various situations and stimuli.


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INFORMATION GATHERING The consumer would then like to collect all the information

necessary to satisfy the need. He will collect all the information hecan about the prospective need.

--To know about the product category

--To know all the products in the category

--To compare various attributes of different brands.

--As the consumer cannot possibly gatherALLthe information aboutAll the brands, he concentrates on a set of brands called AwarenessSet;from these the consumer selects a smaller group of brandscalled Consideration Set.


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EVALUATION OF ALTERNATIVES There is no set model for evaluation of alternatives Broadly speaking

Consumer wants to satisfy a need

Looks for certain benefits from the product

Seeks a set of attributes that can maximize the benefit

These attributes may be different for different products; differentcustomers may look for different attributes.

Consumers attach different importance to different attributes.

Consumers generally go for those brands that have maximum attributes. Consumers develop some beliefs about the product and this constitutes

the brand image.


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PURCHASE DECISIONS At this stage the consumer is at a transition stage from PURCHASE

INTENTIONto PURCHASE DECISION

He may be affected by two factors --Attitude of others

Intensity of negative feelings His own inclination to beof others influenced by others

--Totally unanticipated factors e g accident, loss of job, financial mishap sharp price rise. The consumers decision to delay, avoid ,a purchase decision varies

directly with the perceived risk, which in turn varies with the amount ofrisk involved.


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POST PURCHASE BEHAVOUR,POST PURCHASESATISFACTION, POST PURCHASE ACTIONS

The marketers job does not end with sales.He has to know aboutthe reaction of the consumer

Greater the extent to which the products perceived performancemeets the consumers expectation, greater is the satisfaction withthe product.

If the performance exceeds the expectation, the customer is

delighted

Marketers therefore have to attend to the post purchase reactionsof the customer.

sem 1 topic 3 buyer beh

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