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CONSUMER BEHAVIOUR

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Consumer Behaviour (CB) studies how
individuals, groups and organizations
select, buy, use, and dispose of goods,
services, ideas, or experiences to satisfy
their needs and desires

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Activities people engage in when
Selecting
Purchasing and
Using
products to satisfy their needs and actions

Physical action plus mental and emotional


processes

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7 Os FRAMEWORK OF
CONSUMER RESEARCH

OCCUPANTS
OBJECTS
OBJECTIVES
ORGANIZATIONS
OPERATIONS
OCCASIONS
OUTLETS
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Decision Making Process

Environmental Individual Purchase


Forces Factors Decision

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BUYERS
MARKETING OTHER BUYERS DECISION
STIMULI STIMULI CHARACTERISTICS PROCESS

Product Economic Cultural Problem recognition


Price Technological Social Information search
Place Political Personal Evaluation of alternatives
Promotion Cultural Psychological Purchase decision
Postpurchase behaviour

BUYERS
DECISIONS

Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
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CULTURAL FACTORS
CULTURE
(a culture consists of values, beliefs & customary
behaviours learned & shared by the members of a
particular society)
Learned
Marketers identify cultural shifts. E.g. shift towards health
& fitness; use of cosmetics by men; informality (casual
clothes & simple home furnishings)
SUBCULTURE
Religious (e.g. Hindu), geographic (e.g. Bengali)
SOCIAL CLASS
Relatively permanent & ordered divisions of society
whose members share similar values, interests,
behaviours. Combination of occupation, income,
education, wealth etc. SEC Classification. Similar buying
behaviour. 7
SOCIAL FACTORS
REFERENCE GROUPS
And avoidance groups
Use word-of-mouth mktg & buzz mktg
Identify opinion leaders
Use social networking site (ads, virtual
purchase, blogs etc.)

FAMILY
(orientation, procreation)

SOCIAL ROLE AND STATUS 8


PERSONAL FACTORS
AGE & STAGE IN LIFE CYCLE
OCCUPATION & ECONOMIC CIRCUMSTANCES
LIFE STYLE
A persons pattern of living in the world as expressed in
activities, interests & opinions
Consumers dont buy a product but a lifestyle; BMW sells
not just a convertible but a convertible lifestyle.
Psychographics the science of measuring & categorizing
consumer lifestyles
PERSONALITY & SELF CONCEPT
Personality is the distinguishing psychological
characteristics that lead to relatively consistent & enduring
responses to environment
Consumers are likely to choose those brands where the
brand personality matches their own personality
Actual, Ideal & Others self-concept 9
PSYCHOLOGICAL FACTORS
MOTIVATION
A need that is sufficiently pressing to drive a person to act
PERCEPTION
The process by which an individual selects, organizes &
interprets information inputs to create a meaningful picture of the
world
Selective attention, selective distortion, selective retention
LEARNING
Involves changes in behaviour due to experience
BELIEFS & ATTITUDES
Belief a descriptive thought that a person holds about
something (due to knowledge, opinion or faith)
Attitude a persons enduring (un)favourable evaluations,
emotional feelings & action tendencies towards some object /
idea
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BUYING ROLES
INITIATOR
Who first suggest the idea of buying the product or
service
INFLUENCER
Whose view or advice influences the decision
DECIDER
Who decides on any component of a buying decision
whether to buy, what to buy, how to buy, where to
buy
BUYER
Who makes the actual purchase
USER
Who consumers or uses the product or service 11
BUYING BEHAVIOUR

Involvement
the subjective important of the purchase and is a
function of financial and functional importance,
perceived risk, emotional value and sign value.
Habit formation.
Alternatively many decisions can be based on habit,
habit formation being a prerequisite of brand loyalty.

Depending on the degree of involvement and


whether a habit has been formed or not, four
types of buying decision emerge

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BUYING BEHAVIOUR

HIGH LOW
INVOLVEMENT INVOLVEMENT

SIGNIFICANT
VARIETY
BRAND COMPLEX BB
SEEKING BB
DIFFERENCES
NO
SIGNIFICANT DISSONANCE
HABITUAL BB
BRAND REDUCING BB
DIFFERENCES
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STAGES OF BUYING DECISION
PROCESS

PROBLEM RECOGNITION

INFORMATION SEARCH

EVALUATION OF ALTERNATIVES

PURCHASE DECISION

POSTPURCHASE BEHAVIOUR
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TYPES OF CONSUMERS
Nonconsumer
Potential consumer
Unaware of need
Low intensity of present need
Lack of information about available products
Purchase from competitors
Lack of current means to purchase
Realized consumer
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Personal and Organizational consumer

Consumption process

Determine individual / group wants

Seek out and purchase product / service

Employ product / service to derive benefits

Commonalities and Diversities


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Number of adopters

Innovators

Early adopters

Early majority

Time of adoption of innovation


Late majority
PROCESS

Laggards
CONSUMER ADOPTION

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CONSUMER ADOPTION
PROCESS
STAGES
Awareness
Interest
Evaluation
Trial
Adoption

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Factors
People differ in readiness to try new product
Personal influence
Organizations differ in readiness to adopt
innovation
Organizations environment
Organization itself
Characteristics of the innovation
Relative advantage, compatibility, complexity,
divisibility, communicability, cost, risk, scientific
credibility, social approval

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