Consumer behaviour(sec a ,sec b combined)
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1. Consumer behavior is influenced by personal, social, psychological, and cultural factors that affect an individual from pre-purchase to post-purchase. 2. The consumer decision making process involves need recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation. 3. Marketers aim to understand this process and influence consumers at each stage by promoting their brand's attributes, price, promotions, distribution, and services to increase the likelihood of purchase.
Consumer behaviour(sec a ,sec b combined)
- 1. Consumer BehaviorSection BParasArora IMTDCP084Mahesh Dontul IMTDCP078HimanshuSaxena IMTDCP075Chandan Kumar Singh IMTDCP071Section ASanrangMahimaWalialVishalJaveriAnkitaVarma
- 3. Behavioral Fundamentals = ƒ(P,E)Personal interactionBehaviorEnvironment+
- 4. Buying a product is a result of many things sum total of these things is Consumer Behavior
- 5. Consumer is any one who can instill a stir in the market.ConsumerBehaviorInitiator
- 6. Gatekeeper
- 7. Influencer
- 8. Decider
- 9. Buyer
- 10. User
- 11. Disposer
- 12. Individual
- 13. Social
- 14. Psychological
- 15. Pre Purchase
- 16. During Purchase
- 17. Post PurchaseConsumer BehaviorCreating effective visualsConsumer Behavior SimplifiedBehavior is outcome of a person’s interaction with the environment.
- 18. 7 O’s model of Buying Behavior
- 19. Process model of Buying Behavior
- 20. Factors Influencing Consumer BehaviorBuyerCulturalCultureSubcultureSocial ClassPersonalAgeLifecycle stageGenderIncomeEducationPersonalitySelf conceptLifestyleSocialFamily FriendsRoleStatusPhysiologicalMotivationLearningPerceptionAttitude
- 21. Relationship Between Culture and Subculture Example:-
- 22. CulturalIn USAIn JapanIn KoreaIn Japan
- 23. CulturalSubcultureSubcultureThis ad for Vibe Vixen magazinetargets the African American urban subcultureAn ad showing many racial subcultures
- 25. PersonalAgeAge
- 29. Psychological
- 30. Consumer Involvement in Decision MakingHIGH INVOLVEMENTMODERATEINVOLVEMENTLOWINVOLVEMENTHabitual decisions Simple decisions Lengthy decisionseg. Tea, toothbrush, eg. Skin creams ,TV eg. Cars, Property Washing powder. microwave oven .
- 31. Types of BuyingLow involvementHedonicVariation in consumer choice phenomenonUtilitarian / Instrumental
- 32. Variations in Consumer Choice PhenomenaUtilitarian / InstrumentalFeel Do (Know)Trigger = Impulse, Need, PleasureRationalizing evaluation of alternativesProcess: Choice Heuristic: “Buy What I Like”Ultimate Choice: Satisfying ModelPrice as secondary concernHedonic / Ego ExpressiveLow Involvement
- 33. Variations in Consumer Choice PhenomenaKnow Feel Do Trigger = Gap (actual – Desired)Active SearchRational use of information; Rational evaluation of alternativesProcess: Extensive Problem Solving routine responseChoice Heuristic: “Buy the Best”Ultimate Choice: Trade off among competing alternativesPrice as trade-off variableUtilitarian / InstrumentalLow InvolvementHedonic / Ego Expressive
- 34. Variations in Consumer Choice PhenomenaKnow Do FeelTrigger = Stock DepletionPassive SearchLimited / No evaluation of alternatives; Rational Use of informationExpectancy – ConfirmingProcess: Choice Heuristic: “Buy the Familiar” “Buy the Cheapest”Ultimate Choice: Satisfying ModelPrice as deciding FactorUtilitarian / InstrumentalLow InvolvementHedonic / Ego Expressive
- 35. Marketing Considerations Across Core Motivational ConditionsUtilitarian / InstrumentalKeys to Continuity: Product Performance; Provision of InformationCentral Threat to continuity: Better Performing AlternativeHedonic / Ego ExpressiveLow InvolvementKeys to Continuity: Clear, Relevant articulation of Brand ImageCentral Threat to continuity: Change in self or brand imageKeys to Continuity: Saliency of Brand, ensured product availabilityCentral Threat to continuity: interrupts in purchase cycle
- 36. HighInvolvementLowInvolvementSignificantdifferencesbetweenbrandsFewdifferencesbetweenbrandsTypes of Buying Decision BehaviorComplexBuyingBehaviorVariety-SeekingBehaviorDissonance-Reducing BuyingBehaviorHabitualBuyingBehavior
- 37. Types of Buying behaviorComplex buying Variety seeking SignificantdifferencesbetweenbrandsFewdifferencesbetweenbrandsHabitual Buying Dissonance Reducing Behavior HighInvolvementLowInvolvement
- 38. Examples of Buying behavior-ComplexDigital CameraSonyLGSamsungSansuiAKAIPanasonicHitachiHaierCars EconomyI10A starAltoSantroWagon RZenRitZSparkBeatSwift Digital CameraSonyCannonNikonKodakSamsungHigh Involvement and too many brands to choose from
- 39. Examples of Buying behavior-Variety SeekingLow involvement and too many brands to choose from
- 40. Examples of Buying behavior-Habitual
- 41. Examples of Buying behavior-Dissonance reducing .High involvement and a few brands to choose from
- 42. Need Recognition Information SearchCultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase Post purchase BehaviorConsumer Decision-Making Process30
- 43. Marketing helps consumers recognize an imbalance between present status and preferred state. GoInternal StimuliandExternal StimuliPreferred StatePresent Status1) Need RecognitionResult of an imbalance between actual and desired states.Result of an imbalance between actual and desired states.Preferred statePresent State
- 44. NEED IDENTIFICATION-ExamplesFully automatic washing machines from Godrej
- 45. 1) Need Recognition-Case of a John& purchase of laptop I don’t have a laptop ,I must have one
- 46. My laptop seems to be out of date, I should change.
- 47. There is a discount in International City this is the time.
- 48. It is mandatory for all MBA students.
- 49. I want to play games and watch moviesInternal Information Search Recall information in memory2) Information SearchExternal Information searchSeek information in outside environment
- 51. Marketing controlledMarketing should identify consumer source of information and importance of each source. A company must design its marketing mix to make prospects aware of and knowledgeable about its brand. Go
- 52. Information Search Personal SourcesCommercial SourcesFamily, friends, neighbors
- 53. Most effective source of
- 55. Receives most information from these sourcesExperiential SourcesMass Media
- 60. 2) Search Information-Case of a John& purchase of laptop Memory scan
- 61. Consult Friends& Family
- 62. Browse through the internet
- 63. May visit computer showrooms
- 64. Start paying more attention to Computer ads in TV and Print media Evoked SetEvaluation of ProductsAnalyze product attributesUse cutoff criteriaRank attributes by importancePurchase!3) Evaluation of AlternativesMarketing should talk about the adage of their product and the proposition that they are offering more than the competitor.Go
- 65. Coca Cola- Compagain for Achieving TOMACoca-Cola didn't have many issues selling Coke during the summer months. To ensure that coke is selected as an alternative in the wintertime, come up with a campaign. "Thirst Knows No Season" “Thanda matlab Coca Cola”
- 66. JUST DO IT by Nike to carve niche in customer minds "Just Do It" campaign, purportedly coined during a meeting of executives between WK and Nike ("You Nike guys, you just do it.").Nike tied their brand to smart, humorous and cool advertising to evaluate
- 67. Think Small –By Volkswagen talked about their uniquenessVolkswagen had plenty of success with the Beetle in Europe, but wanted to bring it to the U.S.The DDB team knew they had to do something different to win over the jaded consumers.the impact of its ad campaigns revolutionized advertising forever,
- 68. Evaluate the alternative (Introduce the X Factor)Marketers should introduce the X Factor to help consumers evaluate the alternatives. This X Factor can be in varied forms which can be:Product Feature
- 69. Price
- 70. Promotion
- 71. Service
- 73. PRODUCTAll Out with Extra MMRX Factor -GlycerineThinner cans appealed the youth- StyleIt’s a liquid soap
- 74. SERVICES
- 76. 3) Evaluation of Alternatives-Case of a John& purchase of laptopExpectancy value model
- 77. Consumer assigns different values for different attributes of a product
- 79. Consumer assigns a minimum cut-off value to each attribute.
- 81. Assign maximum weight age to one particular modelDecision Making Sets
- 82. Purchase DecisionUnexpected Situational FactorsAttitudes of OthersPurchase IntentionDesire to buy the most preferred brandPurchase DecisionMarketing should reduce the time gap between the purchase intent of consumer and the actual buying. GO
- 83. Purchase Decision-case of John & laptopUnexpected situational Behavior
- 84. John saw an ad that i7 second generation processor is getting launched soon and he postponed his decision to buy laptop for time being
- 86. John’s Father told to buy Dell as Dell’s service is better .John was forced to buy Dell.Cognitive Dissonance?MarketingDid I make a good decision?Did I buy the right product?Did I get a good value?Can minimize through:Effective CommunicationFollow-upGuaranteesWarranties. Go5) Post purchase Behavior
- 87. Purchase Decision-case of John & laptopSatisfied John John will tell good things about his laptop to his friends and relatives and this may influence them to buy the same laptop as John.
- 88. John will also be attracted towards other offering the same company Dissatisfied John Spread bad word of mouth
- 89. May file a legal case
- 90. Go to mediaThanks For your time and consideration
Editor's Notes
- #2: Mahesh
- #7: An example slide taking a product….Mahesh—3-4 slides
- #8: An example slide taking a product….Mahesh—3-4 slides
- #21: Take examples and explain--Paras
- #22: Take examples and explain--Paras
- #23: Take examples and explain--Paras
- #24: Take examples and explain--Paras
- #38: Group of brands, resulting from an information search, from which a buyer can choose.