unit 1- consumer behavior

7/28/2019 Unit 1- Consumer Behavior

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SPECIAL STUDY

IN

MARKETING

TYBMS

SEMESTER 5Prepared by Kripa Kalro


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UNIT 1:

CONSUMER

BEHAVIOUR


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DEFINITION

Consumer behaviour is the study ofindividuals, groups, or organizations and theprocesses they use to select, secure, and

dispose of products, services, experiences, orideas to satisfy needs and the impacts thatthese processes have on the consumer andsociety.

There are 2 types: Consumer and Industrial


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WHY STUDY CONSUMER BEHAVIOUR?

Different reactions

Diversified preferences

Differentiated products

Special needs

Technologically advanced products

Sales pitch

Foundation for marketing management

Development of laws, regulations, etc


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RESEARCH PERSPECTIVES ON CB

I. The decision making perspective

I. The experiential perspective

I. The behavioral influence perspective


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CONSUMER DECISION MAKING MODEL


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OTHER DECISION MAKING MODELS

1) Economic model

2) Psychological model

3) Pavlovian model

4) Sociological model5) Howrath Sheth model

6) Engel- Blackwell- Kollat model

7) Model of family decision making

8) Nicosia model

9) Schiffman and Kanuks model


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CONSUMER BUYING PROCESS

1. Need/Problem Recognition

2. Information Search

3. Evaluation of Alternatives4. Purchase Decision

5. Post Purchase Behavior: Satisfaction, Action,

Use and Disposal


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FACTORS AFFECTING CB

1) Cultural Factors

Culture

Sub-Culture

Social Class

2) Social Factors

Groups

Family

Roles and Status


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3) Personal Factors

Age and Life-Cycle Stage

Occupation Economic Situation

Lifestyle, Personality and Self-Concept

4) Psychological Factors

Motivation

Perception

Learning Beliefs and Attitudes


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PSYCHOLOGICAL FACTORS PERSONAL FACTORS

CULTURAL FACTORSSOCIAL FACTORS

CONSUMER AS

DECISION MAKER

Family influence

Reference group influence

Roles and status

Culture

Subculture

Social class

Beliefs and attitudes

Learning

Age & family life cycle

Economic circumstances

Occupation

Personality & self concept

Psychographics

FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR


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ABRAHAM MASLOWS THEOREY OF MOTIVATION

Self Actualization Needs

Esteem Needs

Social Affiliation

Security and Safety

Basic Physiological needs


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DAVID MCLLELAND`S THEOREY OF

MOTIVATION

I. Need for achievement (n Ach)

II. Need for Power (n Pow)

III. Need for Affiliation (n Aff)


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THE PERCEPTION PROCESS

Inputs toprocessstimuli

Attention- Active search

- Passivesearch

- PassiveAttention

Interpretation

-Simplify

- Distort

- Organise

Cognition

FACTORS THAT INFLUENCE PERCEPTION


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FACTORS THAT INFLUENCE PERCEPTION

Stimulus factors

Audience or individual factors

PRINCIPLES OF PERCEPTION

1. Perception is selective

2. Perception is organized

3. Perception depends upon stimulus factors

4. Perception depends upon personal factors


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BELIEFS AND ATTITUDES

Belief is a descriptive thought that a person holds about

something. Beliefs may be based on knowledge, opinion

or faith.

An attitude is a persons enduring favourable or

unfavourable evaluations, emotional feelings and

actions, tendencies toward some object or idea.


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AGE AND FAMILY LIFE CYCLE

1. Bachelorhood2. Honeymooners

3. Parenthood: Full Nest 1, 2, 3

4. Post parenthood: Empty Nest 1, 2

5. Dissolution: Solitary survivor, Retired

Solitary survivor


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BUYING ROLES

1) Initiator2) Influencer

3) Gatekeeper

4) Deciders

5) Buyers

6) Preparers

7) Users

8) Maintainers9) disposers


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PERSONALITY

Inner psychological characteristics that both determine andreflect how a person responds to his or her environment.

The nature of Personality:1. Personality reflects individuals difference

2. Personality is consistent and enduring

3. Personality can change

Theories:

1. Freuds psychoanalytic

2. Non-Freudian

3. Trait


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SELF- CONCEPT

Totality of individuals thoughts and feelings havingreference to himself as an object

1. Actual Self

2. Ideal self3. Social self

4. Ideal social self

5. Expected self

6. Situational self7. Extended self

8. Possible selves


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LIFESTYLE IDENTIFICATION

Lifestyle is a group phenomenon

Lifestyle pervades various aspects of life

Lifestyle implies a central life interest

Lifestyles vary according to sociologically relevant

variables


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AIO INVENTORIES

ACTIVITIES: Work, hobbies, social events, vacation,entertainment, club member, community, shopping,

sports

INTERESTS: Family, home, job, community, recreation,fashion, food, media, achievements

OPINIONS: themselves, social, political, business,

economics, education, products, future, culture

DEMOGRAPHICS: age, education, income, occupation,

family size, geography, city size, lifecycle, dwelling


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AIO STATEMENTS

Attitudes, interests and opinions

Help researchers understand consumer behavior

Provides insights into a consumers likes and dislikes


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TYPES OF BUYING BEHAVIOR

Degree of difference

among brands

Degree of Involvement

COMPLEX BUYING

BEHAVIOR

Intel Pentium

VARIETY SEEKING

BUYING BEHAVIOR

Soap Powder

DISSONANCE REDUCING

BUYING BEHAVIORDiamonds, carpest, sofas

HABITUAL BUYING

BEHAVIORSalt

Significant

Few

High Low


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CONSUMER INVOLVEMENTTYPES:

1. Situational involvement

2. Enduring involvement

DIMENSIONS OF INVOLVEMENT

1. Self expressive importance

2. Hedonic involvement

3. Practical relevance

4. Purchase risk

LEVELS OF INVOLVEMENT

1. RRB : Routinised response behavior/ Routine decision behavior/ leastinvolvement

2. LPS: Limited problem solving/ limited decision making level/ low

involvement

3. EPS: Extensive problem solving/ extensive decision making/ high

involvement


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STAGES IN ADOPTION PROCESS

1. Awareness

2. Comprehension

3. Attitude4. Legitimation

5. Trial

6. Adoption


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2 1/2%

Innovators13 1/2%

Early

adopters

34%

Early

majority

34%

Late

majority

16%

Laggards

Time of adoption innovations

ADOPTER CATEGORIES


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DIFFUSION OF INNOVATION/

DIFFUSION PROCESSThe process by which the acceptance of an innovation (a new

products, new service, new idea or new practice) is spread by

communication (mass media, sales people, or informal

conversations) to members of a social system (a target market)

over a period of time.

unit 1- consumer behavior

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