Consumer Behaviour

Deepak Sonpar dsonpar@gmail.com

5 February 2012

All managers must become astute analysts of consumer motivation and behaviour Three foundations for marketing decisions
Experience Intuition Research

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Consumer?
A person who identifies a need or desire, makes a purchase, and then disposes of the product
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What is Consumer Behaviour?

Behaviour consumers display for purchasing, using, evaluation and disposing of product/services, that they expect will satisfy their needs

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Consumer Behavior is a Process

CONSUMERS PERSPECTIVE PREPURCHASE ISSUES How does a consumer decide about needing a product? Is product acquisition a stressful or pleasant experience? MARKETERS PERSPECTIVE How are consumer attitudes formed/changed? How do situational factors affect purchase decision?

PURCHASE ISSUES

POSTPURCHASE ISSUES
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Does product provide pleasure or perform function? How is product disposed of?

What determines customer satisfaction and repurchase?

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Why is it important to study CB?

Knowledge and data about customers Help to define the market Identify threats/opportunities to a brand Help segment the market
Demographic Psychographic

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The meaning of Consumption

People often buy products not for what they do, but for what they mean
Brands
Convey image/personality Define our place in modern society Help us to form bonds with others who share similar preferences

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CB draws from many disciplines

MICRO CONSUMER BEHAVIOR (INDIVIDUAL FOCUS)
Exp Psych Clinic Psych Develop Psych Human Ecology Microeconomics Social Psych Sociology Macroeconomics Semiotics/Literary Criticism Demography History Cultural Anthropology
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MACRO CONS BEHAV (SOCIAL FOCUS)

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Wheel of Consumer Behavior

Figure 1.3
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Perception
The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world - How we see the world around us
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Perception and Priorities - Washington Post

A rugged musician plays violin at Kennedy square Earns a few dollars and brief span of attention from a young lady and a kid Few perceive that beauty can be found at a subway station
Joshua Bell

Joshua Bell
Violin worth $3.5 Mn Sold out ($100) a day earlier

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http://www.washingtonpost.com/wp-dyn/content/article/2007/04/04/AR2007040401721.html

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Sensation and Perception

Adding meaning to raw sensations

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Vision
Color
Color provokes emotion Reactions to color are biological & cultural
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Vision
Size
We tend to eat more:
When food container is larger When our plate still contains food When we see assortment of foods

We focus on height rather than width when pouring liquid into a glass
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Smell
Odours = mood & memory
Odour recalls a memory, and/or a mood Smell of coffee reminds one of its taste

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Hearing
Many aspects of sound affect peoples feelings and behaviour

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Touch
Senses affect product experience & judgment Fabric textures and surfaces with products & packaging

Perception
High Class Low Class

Male
Wool Denim Heavy

Female
Silk Cotton Light Coarse Fine

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Taste
Cultural changes determine desirable tastes

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Exposure
A stimulus comes within range of someones sensory receptors
We can concentrate, ignore, or completely miss stimuli

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Selectivity
Selective Attention Selective Retention

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Semiotics
Correspondence between signs and symbols and their role in the assignment of meaning Consumer products = social identities
Advertising as culture/consumption dictionary

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Semiotic Relationships
Object (Product) Marlboro Cigarettes

Cowboy

Rugged American

Sign (Image)
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Interpret (Meaning)
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Use of Perception in Marketing

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Perceptual Positioning
Brand perceptions = functional attributes + symbolic attributes Perceptual map
Companys own strengths and weaknesses in comparison with competitors

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Perceptual Map

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Positioning Strategy
Marketing mix elements influence the consumers interpretation of brands meaning Brands position as a function of:
Lifestyle, price leadership, attributes, product class, competitors, occasions, users, and quality

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Price/Quality Relationship
The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product).
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Conceptual Model of the Effects of Price, Brand Name, and Store Name on Perceived Value

Objectiv e Price

+
Perceived Quality

Perception of Price

+
Perceived Sacrifice

Perceived Value

Willingness to Buy
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A. Conceptual Relationship of Price Effect

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Brand Name

Store Name

Objectiv e Price

Perception of Brand

Perception of Store

+ +
Perceived Quality

Perception of Price

+
Perceived Sacrifice

+ B. Extended Conceptualization to Include Brand Name and Store Name

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Perceived Value

Willingness to Buy
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Bibliography
Schiffman, L., and Kanuk, L., 2007 Consumer Behavior, 9th edition, Prentice Hall, New Jersey. John A. Howard and Jagdish N.Sheth "The Theory of Buyer Behaviour", New York, John Wiley, 1969. George Katona and Eva Mueller "A Study of Purchase Decision Behaviour" in Lincoln Clark Ed., Dynamics of Consumer Decision, Pergamon Press, 1972.

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