Marketing Management, VTU, Module 2 revised
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Marketing Management, VTU, Module 2 revised

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Marketing Management, VTU, Module 2 revised Marketing Management, VTU, Module 2 revised Presentation Transcript

  • By Prof. Raghavendran VenugopalUnderstandingConsumer Buyer Behavior
  • Consumer Buying BehaviorBy Prof. Raghavendran Venugopal2 Consumer Buying Behavior refers tothe buying behavior of final consumers(individuals & households) who buygoods and services for personalconsumption. Study consumer behavior to answer:“How do consumers respond tomarketing efforts the company mightuse?”
  • Model of Consumer BehaviorBy Prof. Raghavendran Venugopal3Marketing andOther StimuliBuyer’s Black BoxBuyer’s ResponseProductPricePlacePromotionEconomicTechnologicalPoliticalCulturalCharacteristicsAffectingConsumerBehaviorBuyer’sDecisionProcessProduct ChoiceBrand ChoiceDealer ChoicePurchaseTimingPurchaseAmount
  • Characteristics Affecting ConsumerBehaviorBy Prof. Raghavendran Venugopal4BuyerPsychologicalPersonalSocialCulture
  • Factors Affecting Consumer Behavior:Culture Most basic cause of a persons wants andbehavior. Values PerceptionsSocial Class• People within a social classtend to exhibit similar buyingbehavior.• Occupation• Income• Education• WealthSubculture• Groups of people with sharedvalue systems based oncommon life experiences.• Hispanic Consumers• African American Consumers• Asian American Consumers• Mature Consumers
  • Factors Affecting Consumer Behavior: SocialBy Prof. Raghavendran Venugopal6Groups•Membership•ReferenceFamily•Husband, wife, kids•Influencer, buyer, userRoles and StatusSocial Factors
  • Factors Affecting Consumer Behavior:PersonalBy Prof. Raghavendran Venugopal7Personal InfluencesAge and Family Life CycleStageOccupationEconomic SituationLifestyle IdentificationActivities OpinionsInterestsPersonality & Self-Concept
  • Principle Oriented Status Oriented Action OrientedAchieversActualizersStrugglersStriversFulfilledsBelieversExperiencersMakersAbundant ResourcesMinimal Resources8
  • PsychologicalFactorsMotivationPerceptionLearningBeliefs andAttitudesBy Prof. Raghavendran Venugopal9Factors Affecting Consumer Behavior: Psychological
  • Maslow’s Hierarchy of NeedsBy Prof. Raghavendran Venugopal10Esteem Needs(self-esteem, status)Social Needs(sense of belonging, love)Safety Needs(security, protection)Physiological Needs(hunger, thirst)SelfActualization(Self-development)
  • Types of Buying BehaviorDecisionsBy Prof. Raghavendran Venugopal11ComplexBuyingBehaviorDissonance-Reducing BuyingBehaviorVariety-SeekingBehaviorHabitualBuyingBehaviorHighInvolvementSignificantdifferencesbetweenbrandsFewdifferencesbetweenbrandsLowInvolvement
  • Stages in The Buyer DecisionProcessBy Prof. Raghavendran Venugopal12Need RecognitionInformation SearchEvaluation of AlternativesPurchase DecisionPostpurchase Behavior
  • The Buyer Decision ProcessStep 1. Need RecognitionExternal Stimuli• TV advertising• Magazine ad• Radio slogan•Stimuli in theenvironmentInternal Stimuli• Hunger• Thirst• A person’s normalneedsNeed RecognitionDifference between an actual state and a desired stateBy Prof. Raghavendran Venugopal13
  • Step 2. Information SearchBy Prof. Raghavendran Venugopal14•Family, friends, neighbors•Most influential source ofinformation•Advertising, salespeople•Receives most informationfrom these sources•Mass Media•Consumer-rating groups•Handling the product•Examining the product•Using the productPersonal SourcesCommercial SourcesPublic SourcesExperiential Sources
  • Step 3. Evaluation of AlternativesProduct AttributesEvaluation of Quality, Price, & FeaturesDegree of ImportanceWhich attributes matter most to me?Brand BeliefsWhat do I believe about each available brand?Total Product SatisfactionBased on what I’m looking for, how satisfiedwould I be with each product?Evaluation ProceduresChoosing a product (and brand) based on oneor more attributes.By Prof. Raghavendran Venugopal15
  • Step 4. Purchase DecisionBy Prof. Raghavendran Venugopal16Purchase IntentionDesire to buy the most preferred brandPurchase DecisionAttitudesof othersUnexpectedsituationalfactors
  • Step 5. Post purchase BehaviorConsumer’s Expectations ofProduct’s PerformanceDissatisfiedCustomerSatisfiedCustomer!Product’s PerceivedPerformanceCognitive DissonanceBy Prof. Raghavendran Venugopal17
  • Stages in the AdoptionProcessBy Prof. Raghavendran Venugopal18AwarenessInterestEvaluationTrialAdoption
  • Adoption of InnovationsBy Prof. Raghavendran Venugopal19PercentageofAdoptersTime of AdoptionEarly LateInnovatorsEarlyAdoptersEarly Majority2.5%13.5%34% 34%16%LaggardsLate Majority
  • Business Markets & BuyingBehaviorBy Prof. Raghavendran Venugopal20 Characteristics of Business Buyers Fewer buyers Larger buyers Geographically concentrated buyers Derived Demand Inelastic demand Fluctuating demand Professional Purchase
  • Buying Decisions of BusinessBuyersBy Prof. Raghavendran Venugopal21 Straight Rebuy Modified Rebuy New Task
  • Business Markets BuyingprocessBy Prof. Raghavendran Venugopal22ProblemRecognitionNeedGeneralexplanationProductSpecificationSupplierSearchProductSolicitationSupplierSelectionOrderRoutineSpecificationPerformanceAppraisal
  • Seminar time: 7th MayBy Prof. Raghavendran Venugopal23 TEAM 5 should give seminar on ConsumerProtection and its act, with INDIAN Context
  • Assignment time 8th MayBy Prof. Raghavendran Venugopal24 Define Consumer Buying Behavior. Explain the Simple Model of CBB. Explain the Different Buying Behavior Decisions Enumerate with neat sketch of Stages of BuyingDecisions process. What is adoption process, explain the stagesinvolved in it. Differentiate between Consumer andOrganizational Buying behavior.