Chapter 1 - Understanding Consumer Behaviour (1) - Copy.ppt
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The document discusses consumer behavior, emphasizing that it involves the processes of purchasing, using, and disposing of products or services. It categorizes consumers into individual consumers, who buy for personal use, and organizational consumers, who purchase for business purposes. Additionally, it explores consumer activities, responses, and factors influencing buying decisions, including behavioral, mental, and emotional responses.
Chapter 1 - Understanding Consumer Behaviour (1) - Copy.ppt
- 1. Chapter 1
- 2. • Initially consumer behavior was thought to be related to only how consumers buy the products. • Thus it was usually called the buyer behavior. • The definition itself is adequate but incomplete.
- 3. First we need to understand who is the consumer? 1-3
- 4. A consumer is a person who buys the product or service but also uses and dispose of the product. The consumer is the last member of any supply chain or marketing chain of any organization, referred as “end consumers”. Those people for whom the product or service is manufactured and marketed.
- 5. Types of Consumers • There are basically two types of consumers: 1. Individual Consumers 2. Organizational Consumers
- 6. Individual Consumers • Individual consumers are basically the end consumers, who purchases goods and services to satisfy their own needs/ wants. • It can be single person who is the breadwinner of the family. – E.g. someone who pays the bills for electricity, petrol, grocery, etc. 1-6
- 7. • Individual consumers can be from all ages, lifestyle and social back grounds.
- 8. Organizational Consumer • Organizational consumers are also called customers. • They purchase the goods and services from other organization to produce/ manufacture their own final product/ service.
- 9. • There are many examples of the companies, depending upon the business type: – Dell – Lays – Starbucks – Toyota , etc.
- 10. • Dell uses Intel processors in their laptops. • Where Intel itself is an other company.
- 11. • Starbucks is an international coffee brand. • They purchases coffee beans, brewing equipment, paper cups, etc; from their suppliers. • Uses them to produce their final product Coffee and deliver it to their consumers.
- 12. • Other than this there are certain things which helps the organizations runs their business smoothly. • Companies buys these things from their sellers, e.g. – office equipment, – Uniforms of employs, – Machinery, – Equipment, etc.
- 13. Q: Now the question arises on what basis the consumers • Purchase • Use • Dispose off the products and services? 1-13 First we need to answer why consumer purchases the products?
- 14. Consumer Behavior • Consumer behavior is related to all the activities of how the consumers purchase, use and dispose of the products and services, including their mental, behavioral and emotional responses.
- 16. Consumer Activities • It becomes easy for the marketer to categorize consumer behavior on the basis of their activities. • Then they can easily market their product/ service.
- 17. Purchase Activities • The activity through which the consumer acquire goods and services is called purchase activity. • It also includes all the activities before purchasing the goods and services. • For example, searching information and evaluating alternations for the products and services.
- 18. • Additional services related to the products also influences the purchase decisions. • For example, – After sales services – Warranty – Amount of time – Atmosphere of the place of shopping
- 19. Usage Activities • The activity which includes when, where and how the consumption takes places. • Consumption can takes place in different ways according to consumer needs and wants.
- 20. 1. Do the consumer use the product immediately after the purchase? – E.g. ice cream, haircut, salon visit, etc. 2. Do the consumers delay the consumption? – E.g. clothes, grocery products, etc. 3. Is the product completely used before disposal? – E.g. movie ticket, battery cells, chips (any eatable), etc.
- 21. Disposal Activities • The activity include how the consumers gets rid of the products and services is called disposal activity.
- 22. • For example, reusing or recycling products – E.g. if online order is received in a carton, consumers can also use that carton for further use according to the need. • Consumers can also give away the products in charity. • Disposal activities differs from consumer to consumer.
- 23. Consumer Responses • There are three types of consumer responses towards the products and services, which influences the consumer behavior. 1. Behavioral Response 2. Mental Response 3. Emotional Response
- 24. Behavioral Response • If you want to purchase on regular basis your response towards the products and services will be behavioral response. • It is called consumer’s daily plain decision, which are mostly habitual.
- 25. • This type of decision can also be influenced by recommendation by friends and family. • For example: – Recharge card – Electricity bills – Petrol/ gasoline – Grocery – Mortgage loans, etc.
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- 27. Mental Response • If you want to purchase something big, you will give put an effort and use your thought process to purchase that product and service. • This repose towards the products and services is called mental response from a consumer.
- 28. • It is also called cognitive response because it is a part of consumer thought process. – Thinking thoughtfully before making buying something. • For example: – Car – Home – Laptop – Cosmetics – Home appliances – Furniture – Or even getting an admission into universities, etc
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- 31. Emotional Response • Everything you purchase impulsively is the result of emotional response of consumer behavior, towards that products and service. • It is also called affective response, which is related to our feelings and moods.
- 32. • For example: – When buying a new mobile, consumer feels excitement and uncertainty – Watching an advertisement and buying that product instantly – While on shopping, buying clothes more than your need – Visiting restaurants with friends/ family for special deals, etc
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