CONSUMER BEHAVIOUR(Unit-1, Part 1).pdf
- 1. CONSUMER BEHAVIOUR Prepared & Presented by: Dr. Gurpreet Kaur Chhabra, Associate . Prof. MERI College
- 2. Overview of Consumer Behavior Definition 1: Consumer behavior: The study of how individuals make decisions: On how to spend their: • Available resources( time, money effort) On various consumption- related items. 2
- 3. Overview of Consumer Behavior Definition 2: Consumer behavior • The behavior that consumers display in : • Searching for, • Purchasing, • Using, • Evaluating, • And disposing of products and services • That they expect will satisfy their needs. 3
- 4. Type of Consumers Personal Consumer : The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend. Organizational Consumer : A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function. 4
- 5. Why do we need to study Consumer Behavior? •Because no longer can we take the customer/consumer for granted. 5
- 6. Relevance of Consumer Behavior The study of consumer behavior is very relevant for marketers because: • Information and knowledge of buyer motives and habits will enable them to draft suitable marketing programmes accordingly. 6
- 7. Consumer Behavior & Decision Making interdisciplinary Consumer behavior as a new discipline borrowed concepts from other scientific disciplines such as: •Anthropology •Psychology •Economics •History and geography •Socio-psychology 7
- 8. Anthropology •The influence of the culture (within and across) & society on the individuals. •Emphasis on cross-cultural differences 8
- 9. Psychology •Study of human thinking and behavior •Some issues • Personality • Personal development • Cognition (thinking), perception • Attention and its limitations • “Learning”—e.g., acquired tastes 9
- 10. Economics •Basic economic issues • Supply and demand • Rational decision making • Perfect information •Emphasis on predicting behavior •Complications in real life •Behavioral economics—e.g., “mental accounting” 10
- 11. History and Geography • Origins of behavior, perspectives, and traditions • Impact of geography on individuals • Isolation • Language development • Climate • Geographic determinism 11
- 12. Socio- Psychology •Is the study of how persons are influenced by groups. •Cultural and interpersonal influences on consumption—e.g., • Fads, fashions • Diffusion of innovation • Popular culture 12
- 13. Dynamic Consumer Behavior •Thinking, feelings, and actions of individual consumers, targeted consumer groups, and society at large are constantly changing. •Requires ongoing consumer research and analysis of important trends. •Makes development of marketing strategies difficult and exciting • Shorter product life-cycle increases importance of constant innovation 13
- 14. Production concept Product concept Selling concept Marketing concept Societal concept Marketing concepts
- 15. Shift of focus to better serve consumers for major reasons • Increased consumer interest in world markets. • Dramatic increase in the quality of consumer and marketing research. • Use of technology to identify and know customers personally • Ability to track consumer reactions • Development of the Internet as a marketing tool. • E-marketing potential • Increased importance of consumer behavior research • Ability to conduct marketing research studies 15
- 17. Impact of Digital Technologies •Consumers have more power and access to information. • Marketers can gather more information about consumers . •The exchange between marketer and customers is interactive and instantaneous and goes beyond the PC. • Marketers must offer more products and services. 17
- 18. Consumer Research •Consumer research has developed as an extension to the field of marketing research with emphasis on consumer behavioral aspects. •The initial thrust on studying CB by marketers was done for two reasons: • To determine as to why consumers made the purchase decisions. • To understand how consumers would react to promotional messages. 18
- 19. Model of Consumer Behavior Marketing and Other Stimuli Buyer’s Black Box Buyer’s Response Product Price Place Promotion Economic Technological Political Cultural Characteristics Affecting Consumer Behavior Buyer’s Decision Process Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount
- 20. The Buyer Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior
- 21. The Buyer Decision Process Step 1. Need Recognition External Stimuli • TV advertising • Magazine ad • Radio slogan •Stimuli in the environment Internal Stimuli • Hunger • Thirst • A person’s normal needs Need Recognition Difference between an actual state and a desired state
- 22. The Buyer Decision Process Step 2. Information Search •Family, friends, neighbors •Most influential source of information •Advertising, salespeople •Receives most information from these sources •Mass Media •Consumer-rating groups •Handling the product •Examining the product •Using the product Personal Sources Commercial Sources Public Sources Experiential Sources
- 23. The Buyer Decision Process Step 3. Evaluation of Alternatives Product Attributes Evaluation of Quality, Price, & Features Degree of Importance Which attributes matter most to me? Brand Beliefs What do I believe about each available brand? Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product? Evaluation Procedures Choosing a product (and brand) based on one or more attributes.
- 24. The Buyer Decision Process Step 4. Purchase Decision Purchase Intention Desire to buy the most preferred brand Purchase Decision Attitudes of others Unexpected situational factors
- 25. The Buyer Decision Process Step 5. Postpurchase Behavior Consumer’s Expectations of Product’s Performance Dissatisfied Customer Satisfied Customer! Product’s Perceived Performance Cognitive Dissonance