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PERSPECTIVE ON CONSUMER BEHAVIOR

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Session Highlights:
• What is consumer behavior?
• Evolution of Consumer Behavior
• Changing consumers
• Consumer Behavior & Marketing Strategy

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Consumer Behaviour:
The behavior that consumers
display in searching for,
purchasing, using, evaluating,
and disposing of products,
services, ideas or experiences to
satisfy needs and desires.

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Evolution of Consumer Behaviour:
 Economics: supply and demand, utility, Role of Income
 Psychology: Motivation, perception, learning, beliefs,
attitudes, etc.
 Social psychology: social perceptions, social influence, social
rewards, peer pressure, social cues, social sanctions
 Sociology: role theory, social class, family life cycle, the
diffusion of innovation process, and population groups
 Anthropology: Folklore, cultural myths, gift giving, holiday
observance, rituals, superstitions
 Physio-pyschological: study of the interaction of the body
with the mind.
 Biochemistry: external variables such as the makeup of the
products
 Human genetics: how our genes direct our consumption
behavior. ad clip\Gimme.pdf

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What Motivates a Consumer to Take Action?

• Needs - An unsatisfactory physical condition of the


customer that leads him or her to an action that will
remedy that condition. i.e. I am thirsty.

• Wants – An unsatisfactory psychological/social


condition customer that leads him or her to an
action that will remedy that condition. i.e. I want a
bottle of Kinley.

• Demands - human wants backed by buying power.


i.e. I have money to buy a bottle of Kinley.
How Do Consumers Choose Among Many Products and Services?

• Customer Value - difference between the value the


customer gains from owning and using a product and the
cost of obtaining the product.

• Customer Satisfaction - depends on the product’s


perceived performance in delivering value relative to a
buyer’s expectations.
Source: The
Elements of
Value: HBR
September
2016

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Elements of Consumer Behavior:
• The dynamic interaction of affect and cognition,
behavior, and the environment by which human
beings conduct the exchange aspects of their lives
• Involves the thoughts and feelings people experience
and the actions they perform in consumption
processes
• Includes all things in the environment that influence
thoughts, feelings, and actions

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New Indians: Post Liberalization

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Changing Indian Consumers
• Emerging middle class
• Changing values in middle class
• Rising individualism
• Coexistence of Traditionalism &
Modernity
• Changing role of women

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Contd..
• Changes in consumer aspiration and
expectation
• Increasing disposable income
• Emergence of positive mindset towards
modern retail/e-commerce/e-retail etc
• Value-conscious and Value Seeker
• Growth of ‘Ethnocentric’ mindset
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Contd..
• Proliferation of media and information
technology
• Cross-cultural integration
• Role of Social Media
• Increasing degree of consumer awareness
• Wants to be in control

• Bold and Expressive

• Convenience seeking

• Emergence of rural consumer


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How to react?

• To be successful, a company must determine


the needs and wants of specific target markets
and deliver the desired satisfactions better
than the competition.

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Consumer Behavior’s Role in Marketing Strategy

• Marketing strategy
– Design, implementation, and control of a plan to influence
exchanges to achieve organizational objectives
– Developing and presenting marketing stimuli at selected
target markets to influence
• What they think
• How they feel
• What they do
– Powerful force on consumers and society at large

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