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Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
Consumer Behavior
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Consumer Behavior

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  • 1. Online Mktg – Consumer Behavior© Ramakrishna Kongalla,Assistant ProfessorIndian Institute of Tourism & Travel Management(An Organization of Ministry of Tourism, Govt. of India)Rtist @ Tourism
  • 2. Consumer Behavior• Types Of Markets - Consumer & Business• Consumer Market– Purchasers and household members who intend to consume or benefitfrom the purchased products and do not buy products to make products.• Buying Behavior– The decision processes and acts of people involved in buyingand using products.• Consumer Buying Behavior– The decision processes and purchasing activities of peoplewho purchase products for personal or household use andnot for business purposes.Rtist @ Tourism
  • 3. Rtist @ TourismConsumer Behavior Model
  • 4. • Level Of Involvement– An individual’s intensity of interest in a product and theimportance of the product for that person.• Levels Of Involvement Enduring SituationalRtist @ Tourism
  • 5. Characteristics of Three Types of Consumer Decision MakingRtist @ Tourism
  • 6. • Extended Problem Solving– A consumer problem-solving process employedwhen purchasing unfamiliar, expensive, orinfrequently bought products.• Limited Problem Solving– The consumer problem-solving process employedwhen buying occasionally or when they need toobtain information about an unfamiliar brand ina familiar product category.Rtist @ Tourism
  • 7. Consumer Buying Decision Process• A five-stage purchase decision process that includesproblem recognition, informationsearch, evaluation of alternatives, purchase, andpostpurchase evaluation.Rtist @ Tourism
  • 8. Influences on Consumer BehaviorRtist @ Tourism
  • 9. Rtist @ Tourism
  • 10. • Problem Recognition– Difference between desired state and actual condition.• Aspects Of Information Search– Internal Search– External SearchRtist @ Tourism
  • 11. • Internal Search– An information search in which buyers searchtheir memories for information about theirproducts that might solve their problem.• External Search– An information search in which buyers seekinformation from sources other than memory.Rtist @ Tourism
  • 12. • Evaluation Of Alternatives Consideration Set Evaluative Criteria Framing AlternativesRtist @ Tourism
  • 13. Maslow’s Hierarchy of NeedsRtist @ Tourism
  • 14. • LifestyleAn individual’s pattern of living expressed throughactivities, interests, and opinions.– Lifestyle Affected By:• Age• Education• Income• Social ClassRtist @ Tourism
  • 15. Types Of Family Decision makingRtist @ Tourism
  • 16. Rtist @ Tourism
  • 17. Post-purchase EvaluationRtist @ Tourism
  • 18. Types of Online Shoppers• Time-starved consumers: Usually found in a housewith two sources of income. They are willing to payhigher prices or costs more to save time shopping, nomatter whether they like it or not on-line buyingexperience.• Shopping avoiders :Do not like shopping and may use theInternet just to avoid the crowd, queue or traffic congestion.• New technologist:– Usually young people and comfortable with technology, online shoppingbecause "its cool".• Time-sensitive materialist atau click-and-mortar consumers:– Only use the Internet to view the products they prefer to makepurchases from traditional stores for taking security or other reasons.Rtist @ Tourism
  • 19. • Traditionals : Just like a traditional store. Probably not going todo shopping online.• Hunter-gatherers: 20 percent of the total number of on-linecustomers. Like to compare prices and find the best prices.• Brand loyalists: Purchase online for a particular brand as it getsmore benefits.• Single shoppers: 16 percent of the total number of on-linecustomers. Liked the Internet not only for shopping but also forbanking, communication, playing games, news and otheractivities.Rtist @ Tourism
  • 20. Online Purchase Decision Aids• Shopping Portals:– comprehensive portals• linked to many different vendors• comparison shopping sites• there is a comparison tool– niche oriented• have specialized in a product(cattoys.com)• there is a referral fee quotation• there is a portal that has a formal relationshipwith partnersRtist @ Tourism
  • 21. • Shopbots (Shopping robot) dan Agent (Shoppingagent):• A review tools (Scout) Web to customers who specifythe search criteria. Different Shopbots using differentsearch methods.• Zdnet.com/computershopper – computer• Office.com – office furniture• Business Rating Sites:• Enhance the rating of the various types of e-tailer andonline products based on many criteria.• Gomez.com• Bizrate.comRtist @ Tourism
  • 22. • Trust Verification Sites:• Works to assess and confirm whether a given e-taileris reliable or not. For example, TRUSTe, BBBOnLine,Secure ASSURE and Ernst & Young. TRUSTe Stampavailable on e-tailer Web site reflect the credit. E-tailer has to pay to TRUSTe to use such stamps.• Other Shopping Tools:– Escrow services- 3rd party to assure quality– Communities of consumersRtist @ Tourism
  • 23. Learning about Consumer Behavior Online• A Model of Consumer Behavior Online– The purpose of a consumer behavior model is tohelp vendors understand how a consumer makesa purchasing decision• Independent (or uncontrollable) variables – personalcharacteristics and environmental characteristics• Intervening or moderating variables – market stimuliand EC systems (vendor-controlled)• Dependent variables – buyers’ decisionsRtist @ Tourism
  • 24. – Personal Characteristics• Higher education and/or income levels areassociated with more online shopping.• More experience people have with Internetshopping, the more likely they are to spend moremoney online.• Most-cited reasons people do not purchase:– Shipping charges (51%)– Difficulty in judging the quality of product (44%)– Cannot return items easily (32%)– Credit card safety (24%)Rtist @ Tourism
  • 25. – Environmental Characteristics• Social – people are influenced by family members,friends, coworkers, and trends. Of importance areInternet communities, discussion groups.• Cultural/community – where people live influencewhat they buy. Rural shoppers differ from urbanshoppers, Europe shoppers differ from Asianshoppers.Rtist @ Tourism
  • 26. The Consumer Decision-Making Process• Roles people play in the decision-making process:– Initiator – the person who suggests a product/service– Influencer – a person whose advice influence purchasingdecision– Decider – the person who makes the buying decision– Buyer – the person who makes an actual purchase– User – the person who consumes or uses a product/serviceRtist @ Tourism
  • 27. Online Consumer decision making models:• Generic Purchasing-Decision Model– Consists of five phases:• Need identification – consumer convinced the need of aproduct/service• Information search – on various alternatives to satisfythe need• Evaluation of alternatives – a set of criteria is developedto help evaluation and comparison• Purchase and delivery – payment, purchase warranties• After purchase evaluation – customer service andevaluation of usefulnessRtist @ Tourism
  • 28. Web Purchasing Model• Each of the phases of the purchasing model can besupported by Consumer Decision Support Systemfacilities and Internet and Web facilities.• CDSS facilities support the specific decisions in theprocess.• EC technologies provide necessary mechanismsand enhance communication and collaboration.Rtist @ Tourism
  • 29. Online Buyer Decision Support ModelRtist @ Tourism
  • 30. • Online Buyer Decision Support Model – Part 1– Buyer behavior• Identify and manage buying criteria• Search for products and merchants• Compare alternatives– DSS Design Choices (Current Transaction)• Product representation• Options to support searching• Options to compare alternatives• Online Buyer Decision Support Model – Part 2 & 3– Comparing alternatives• Price negotiation• Shipping options• Finance center– Cross-transaction Concerns• Personalization• User preferences• Customer helpRtist @ Tourism
  • 31. Online versus traditional consumer• Technology adoption– Online consumer is best predicted by Internet self-efficacy, followed by perceived financial benefits.• Convenience and Decision Support– Online consumer only desire is convenience and timesaving.– Depth and breadth of information available on the Internetmeets the consumer’s need of information to make purchasedecision.• Market dynamics– More alternatives can be considered online because of lowersearch costs and greater availability of information.– Online consumers becoming less price conscious over time.Rtist @ Tourism
  • 32. • Loyalty and trust– The ability to customize products/services and transactionalenvironment online is far beyond the capability of traditionalstore.– Consumer loyalty to access competitor’s site is only a clickaway.– Trust for online consumer is an expectation based on pastperformance, a strategy to reduce uncertainty, a willingness torely on an exchanging partner, and a perception of reliability.• Products Vs services– Products are tangible and services are intangible in traditionalcommerce but both products and services are intangible online.– Online shopping consumers concern about risk for productsthan services, more concern about perceived ease of use forservices rather than products.Rtist @ Tourism
  • 33. • Loyalty and trust– The ability to customize products/services and transactionalenvironment online is far beyond the capability of traditionalstore.– Consumer loyalty to access competitor’s site is only a click away.– Trust for online consumer is an expectation based on pastperformance, a strategy to reduce uncertainty, a willingness torely on an exchanging partner, and a perception of reliability.• Products versus services– Products are tangible and services are intangible in traditionalcommerce but both products and services are intangible online.– Online shopping consumers concern about risk for products thanservices, more concern about perceived ease of use for servicesrather than products.Rtist @ Tourism
  • 34. • Site design– The impact of the shop window are correlated to the impact of asite’s home page but the impact of store layout versus site layouthas some differences.– Thus, more study is needed to examine what design elementsaffect online consumer behavior.• Empowerment, persuasion and entertainment– The ability to shop worldwide at anytime from virtually anylocation with the availability of real-time product and competitorinformation increase consumer’s sense of freedom and power.– Personalized welcome pages and tailored recommendations listprovide customers with a powerful feeling of discovery.– Online consumers can react to persuasive media more often thana human at selling.– Online shopping is also a form of entertainment and/or socialinteraction.Rtist @ Tourism
  • 35. Thank You…!!!©Ramakrishna Kongallae-mail: artist.ramakrishna@gmail.comRtist @ Tourism

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