Consumer behaviour
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Consumer behaviour

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  • 1.In habitual buying you jump from need recognition to purchase decision 2. The buying process may be abandoned at any stage either due to lack of resources or because products do not match needs, or the the current way in which the need is satisfied is better. 3. info search depends on level of involvement in product. Sources of info 4. Setting parameters for evaluation. Personality, lifestyle, attitudes, soc class, culture, fly, demo 5. Post purchase – insights into future modif for product- frost free, detergent cake with coating
  • SOR model Selective attention, retention and distortion Attitudes are influenced by culture, fly, social class, ref grps Distortions because of environmental factors and influences, inferences may not be those intended by the communicator – gelatine is made from animal bones hence jelly not acceptable A glass of beer/wine is healthy hence drinking is healthy Subliminal advertising – bagpiper gold, bacardi lime Work backwards fro currently held attitude, info to coin your message- wipro lighting;chevrolet intro ads
  • Lipstick Car/vehicle Inability or insufficient info to evaluate – doc or cost of product(2) House purchase Gold ornaments, clothing, accesories

Consumer behaviour Presentation Transcript

  • 1. Why study consumers?
    • Consumers are party to the exchange process. Studying
    • Consumers will lead to successful exchange outcomes.
    • Consumers are an important stakeholder for the business.
    • Consumer purchase decisions are impacted by macro-
    • Environmental factors as well as competing offerings.
    • Studying consumers helps a business analyse and influence
    • Factors affecting demand ( desire backed by ability and
    • Willingness to pay)
  • 2. Consumer Behaviour
    • ‘ Consumer behaviour studies how individuals, groups and organisations, select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and desires.’ (Kotler)
  • 3. The buying process Psychological Factors Social Factors Demographic factors Behavioural Factors/Purchase situation Awareness of needs and wants Information search Setting criterion and evaluating alternative solutions Purchase decision Purchase Post purchase evaluation Postpone decision Routinised response The buying process is a ‘problem solving’ process.
  • 4. Awareness of needs and wants
    • Consumers motivations for purchasing a product are often
    • Complex and are not visible or discernable not only to
    • Marketers but often to consumers themselves.
    • Marketers can make consumers aware of needs by using
    • Various stimuli . (bad breath, body odour)
    • Needs change across life stages and are also influenced by
    • Psychological and social factors.
  • 5. How are problems (needs) recognised? The ‘means-end chain’ (Gutman, Peter, et al) Weight management programme Exercises for Weight loss Body toning Better diet Can wear trendy clothes Look good Feel energetic Have a good social life Feel confident Feel positive
  • 6. Information search
    • At this stage the consumer searches for solutions to her problem/
    • Need.
    • How much search a consumer undertakes depends on
    • -urgency of problem
    • -how much information she already has
    • -Ease of obtaining information
    • -time available to conduct search
    • -level of involvement in the purchase decision
    • The consumer may conduct an
    • -internal search: recall past experiences/info on product
    • -external search: friends, relatives, magazines, TV, newspaper, etc.
  • 7. How do consumers process information?
    • Receiving information – attention
    • Storing and retrieving information – comprehension and integration
    • Forming attitudes
    • Drawing inferences
  • 8. Evaluation of alternatives
    • Giving weightage to product attributes
    • Trade offs between attributes given limited resources
    • Salient and determinant attributes
    • At this stage consumers form attitudes towards the product
    • And brand
    • Evaluation influenced by social and psychological factors
    • During this process product solutions are divided into sets:
    • Evoked/Awareness set
    • Consideration set
    • Choice set
    • Marketing communication influences the evaluation process.
  • 9. Purchase decision and actual purchase
    • After evaluating alternative consumers may discontinue the
    • Buying process or take a decision to purchase.
    • Purchase decision may be influenced by
    • -attitudes of others
    • -situational factors
    • Purchase decision is essentially about ‘product’ and ‘brand’ but
    • There are important sub decisions such as: vendor, quantity, timing
    • Payment method.
  • 10. Post purchase evaluation Post purchase evaluation can lead to a feeling of satisfaction or Dissatisfaction. Feelings of dissatisfaction in the period immediately after Purchase are often the result of a phenomenon called ‘cognitive Dissonance’.
  • 11. Information processing as well as decision making is affected by the following:
    • Demographics
    • Social Factors
    • Cultural factors
    • Psychological Factors
    • Behavioural factors
  • 12. Demographic factors
    • Age (‘physical’ and ‘psychological’ ?)
    • Income (spell length in a particular income category)
    • Occupation
    • Gender
    • Family size and stage in life cycle
    • Geographic location
    • Impact of demographic factors cannot be isolated from other factors
  • 13. Social factors-Social Class
    • Social Classes are permanent divisions in society wherein people in the same class share similar values, lifestyles, interests, wealth, status education and behaviour .
    Income Education Occupation Family income, occupation Interactions Possessions Each social class has a particular status ascribed to it based on its life Style and positive or negative estimations of honour given to each Class. This influences consumption.
  • 14. Social factors -Family
    • Many products are purchased for the family as a consumption unit
    • Buying decisions are heavily influenced by family
    • Members who may play a variety of roles (Initiator, influencer,
    • Decider, buyer, user)
    • A family is a ‘group of people who are related by blood, marriage
    • Or adoption who reside together’
    • Family influence in the buying process is dependent on the extent of
    • Cohesion and communication within a family
    • Family influences not only product/brand choice but also vendor,
    • Quantity and timing decisions.
  • 15. Social Factors – Reference Groups A reference group is a person or a group of people that influence a buyers values, attitudes and behaviour. Reference groups reduce risk of purchase and consumption and are A trusted source of product/brand information as compared to other Sources.
    • A reference group exerts influence in 3 ways:
    • Conformance: the group frames norms of behaviour which
    • Includes consumption of products and individuals are expected to
    • Conform to group norms.
  • 16. Reference groups – Contnd. 2. Information: Providing information on product/brand benefits and Criterion for evaluation (experts) 3. Aspirations: Sometimes buyers are influenced by a group to which They do not belong but aspire to belong to. (filmstars, sports persons) Buyers may simultaneously belong to several reference groups and Marketers have to find out which one yields more influence for their Product. Marketers also want to know the type of influence exerted by the Reference group and profile of the person/s (opinion leaders) Exerting this influence. Opinion leaders are early adopters of the Product who have a lower risk perception of product purchase and Usage.
  • 17. Culture Culture is a set of values, artifacts, symbols and norms that help Individuals communicate with each other and interpret and evaluate Each other’s behaviour. Influences: Race, religion, region, nation Culture Abstract elements: Values, Norms, Rituals, symbols Material elements: Artifacts, materials, technology Cultural factors influence every stage of the buying process.
  • 18. Psychological factors Learning: It is a relatively permanent change in behaviour Resulting from past experience. It influences the way a person Perceives the world around her in terms of people, objects Their context. (I-pod, search engines). Attitudes/beliefs A positive experience of product purchase and usage results in Positive reinforcement and vice versa. Marketers through their Marketing mix want to influence learning.
    • Marketers can:
    • Understand the context (environment) in which decisions are
    • made
    • 2. Provide stimuli to create a favourable response
    • 3. Influence the process of cognition (problem solving)
  • 19. Decision making in the buying process
    • Decision making in the buying process depends on the degree of involvement in the buying situation
    • ‘ Involvement’ is determined by
    • -functional importance of product
    • -financial importance of the product
    • -Perceived risk of purchase
    • -emotional value attached to product category
    • -social significance of product
  • 20. Types of buying decisions
    • Depending on the level of ‘involvement’, buying decisions can be categorised as :
    • -Complex
    • -dissonance reducing
    • -variety seeking
    • -habitual