A basic study of why consumer do what they do in the marketplace. If the business is consumer-centric in its orientation, the study of consumer behavior would be the starting point of all business and marketing decision making.
The study of consumer behavior includes the company asking the right questions in order to understand and analyze its consumers. In some instances, consumers are analyzed as a segment, while in others, they are analyzed as individual consumers.
CONSUMER ANALYSIS In order to analyze consumers, marketers need answers to the following questions: 1. Who Buys?
What is their demographic, geographic, psychographic or behavioral orientation?
2. What is Bought?
Is it a core product, augmented product, service, etc.
3. Why is the Purchase Made?
Influences on purchasing – family, culture, friends, marketers, age, social status, etc.
Consumer Behavior In order to analyze consumers, marketers need answers to the following questions: 4. How Often is the Purchase Made?
Frequency of purchase, number of purchases, etc.
5. Where is the Purchase Made?
Location, convenience, online, offline, etc.
6. When is the Purchase Made?
Time, season, occasion, etc.
7. How is the Purchase Made?
Decision making process
Consumer Behaviour is also defined as activities people undertake when obtainig, consuming and disposing of products and services.
Marketing and Other Stimuli Model of Consumer Behavior Product Price Place Promotion Economic Technological Political Cultural Buyer’s Black Box Characteristics Affecting Consumer Behavior Buyer’s Decision Process Buyer’s Response Purchase Timing Purchase Amount Product Choice Brand Choice Dealer Choice
Characteristics Affecting Consumer Behavior Culture Social Personal Psychological Buyer
Cultural Factors Culture is the most basic determinant of a person’s wants and behavior Culture includes a set of learned beliefs, values, attitudes, habi6ts and forms of behaviour that are shared by a society and are transmitted from generation to generation within that society.
Subcultures are groups of people with shared value systems based on common life experiences and situations
“Social class is the relatively permanent and homogenous division in the society into which individuals and families sharing similar values, life styles, interest and behaviour can be categorised”
Characteristic Features of Social Classes Persons within a given social class tend to behave alike Social class is hierarchical Social class is not measured by single variable Social class is continuous
Social Classes • Six classes: upper-upper, lower-upper, upper-middle, lower-middle, working class, lower class. • Two-category social class—Blue and white collar. • Nine category-- lower-lower, lower-middle, lower-upper middle-lower, middle-middle, middle-upper, upper lower, upper-middle, upper-upper class. India’s SEC (socioeconomic classification) combines occupation and education and classify respondent in SEC A1, A2,B1, B2, C1, C2 and D classes.
Types of Reference Groups Normative reference group Comparative reference group Indirect reference Contactual reference group Aspirational group Disclamant group Avoidance group
Consumer Purchase Process Expectations and reality – cognitive dissonance Internal or external sources Whom to buy and when to buy Defining the need / want Defining criteria
Types of Buying Decisions Complex Buying Behavior Variety- Seeking Behavior High Involvement Low Involvement Dissonance- Reducing Buying Behavior Significant differences between brands Habitual Buying Behavior Few differences between brands