80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
CONSUMER BEHAVIOR Marketing Management.ppt
1. INTRODUCTION TO BUYER BEHAVIOR
At the end of this module, the learning
outcomes are:
• Buyer behavior is a ‘complex’ process
• Various factors affecting buyer behavior
1
2. INTRODUCTION TO BUYER BEHAVIOR
Suggested readings
• Marketing Management
by Philip Kotler, 16th edition, Chapter 3
2
3. INTRODUCTION TO BUYER
BEHAVIOR
Gillette
• Leading shaving products Company
• Came more than 30 years back
• Launched Gillette Vector
• In 2002
• How it performed
• Poor Sales
3
6. INTRODUCTION TO BUYER
BEHAVIOR
Gillette
Indian Consumer
• they witnessed a man shave while sitting
barefoot on the floor in a tiny hut in India.
• He had no electricity, no running water and
no mirror.
• Realized that they need to visit India
• How People shave?
6
8. INTRODUCTION TO BUYER
BEHAVIOR
Gillette
Indian Consumer
• They learned that families often live in huts without
electricity and share a bathroom with other huts.
• So men shave sitting on their floors with a bowl of water,
often without a mirror, in the dark morning hours.
• As a result, shaving could take up to half an hour,
compared with the five to seven minutes it takes to
shave in American households.
• And Indian men strain to not cut themselves.
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11. INTRODUCTION TO BUYER BEHAVIOR
Indian Shaving scenario
• https://www.youtube.com/watch?v=cSfPL3gB
22c
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12. INTRODUCTION TO BUYER
BEHAVIOR
Gillette
• After 18 months
Gillette Guard
• Gillette Guard, a low-cost razor designed
for India and other emerging markets.
• Introduced three years ago, Guard quickly
gained market share and today represents
two out of every three razors sold in India.
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13. INTRODUCTION TO BUYER
BEHAVIOR
Gillette
Indian Consumer
• The version of that razor had a plastic push bar
that slid down to unclog the razor.
• The bar was added because Indian men have
thicker hair and a higher hair density than their
American counterparts.
• Adding to that, they often shave less frequently
than American men, so they wind up shaving
longer beards.
13
15. INTRODUCTION TO BUYER
BEHAVIOR
Gillette Guard
• 9 percent market share, Guard has grown
share faster than any other P&G brand in
India.
• And Gillette's market share for razors and
blades in India has grown to 49.1 percent.
• More than 5 Crore Indian men use it.
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17. LOOK AT THESE
• Why frozen vegetables sales are sluggish?
• Why Bru Espresso sales has not taken off?
• Why Kellogg’s cornflakes is struggling with
sales?
• Failure of Soya based drinks
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18. WHAT DO WE OBSERVE
• Importance of understanding consumer behavior
• Organization need to understand
• Why consumers buy?
• When consumers buy?
• What consumers buy?
• What are the factors influencing his buying?
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19. BUYER: AN ENIGMA
• 80% of new products launched fail
• Failure to understand buyer behavior
• Buyer – A Black Box
• Marketers still trying to solve this riddle
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20. Consumer Behavior
Consumer behavior is the study of
how individuals, groups, and
organizations select, buy, use, and
dispose of goods, services, ideas,
or experiences to satisfy their
needs and wants.
24. What Is Culture?
Culture
is the fundamental determinant of a
person’s wants and behaviors acquired
through socialization processes with
family and other key institutions.
30. What Is Culture?
Social Classes
• marketers can use this as a basis to segment
the market; the various strata provide a basis
for market segmentation.
• For example, a person belonging to middle
class prefers economically priced cars.
• But upper income group will prefer highly
priced cars.
30
32. Social Factors
Reference Groups
• all the groups that have a direct (face-to-face) or indirect
influence on their attitudes or behavior.
• primary groups with whom the person interacts fairly
continuously and informally, such as family, friends, neighbors,
and coworkers.
• People also belong to secondary groups, such as religious,
professional, and trade-union groups, which tend to be more
formal and require less continuous interaction.
32
34. Social Factors
Reference Groups
People are also influenced by groups to which they do
not belong
– Aspirational groups are those a person hopes to
join
– Dissociative groups are those whose values or
behavior an individual rejects
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36. Social Factors
Reference Groups
Where reference group influence is strong, marketers must determine how to
reach and influence the group’s opinion leaders.
– An opinion leader is the person who offers informal advice or
information about a specific product or product category, such as which
of several brands is best or how a particular product may be used
– Opinion leaders are often highly confident, socially active, and frequent
users of the category.
• Marketers try to reach them by identifying their demographic and
psychographic characteristics,
36
37. Social Factors
An opinion leader
• is the person who offers informal advice or
information about a specific product or
product category, such as which of several
brands is best or how a particular product
may be used
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40. Social Factors
Reference groups influence members in at least three
ways.
– They expose an individual to new behaviors and
lifestyles
– They influence attitudes and self-concept
– They create pressures for conformity that may
affect product and brand choices.
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41. Social Factors
Family
• Family is the most important consumer buying organization in society;
family members constitute the most influential primary reference group
– Family of orientation consists of parents and sibling; affects
consumption choices
– Family of procreation is the person’s spouse and children
– Majority of husbands and wives engage in joint decision making for
expensive products and services
– Women value connections and relationships with family and friends and
place a higher priority on people than on companies.
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42. Family
Amount of Rupees spent by and the direct and indirect
influence wielded by children and teens has increased.
• Direct influence describes children’s hints, requests, and demands
• Indirect influence means parents know the brands, product choices, and
preferences of their children without hints or outright requests
• By the time children are about 2 years old, they can often recognize
characters, logos, and specific brands.
• They can distinguish between advertising and programming by about ages 6
or 7.
• A year or so later, they can understand the concept of persuasive intent on
the part of advertisers.
• By 9 or 10, they can perceive the discrepancies between message and
product.
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43. Social Factors
Family
• One research indicated
• Two-third of 13 to 21-year-olds make or
influence family purchase decisions on mobile,
software and vacation decisions.
• Teens spend over 120 billion $ a year.
• Role of television and internet
• Increasing role of teens in family decision
making 43
44. Social Factors
Family
• Increasing role of Children/younger groups
Hyundai
• https://www.youtube.com/watch?v=gBftFV8t
QAQ&ab_channel=HyundaiIndia
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45. Social Factors
Social Roles and Statuses
• Roles and status in groups are an important source of
information and help to define norms for behavior.
• A role consists of the activities a person is expected to
perform.
• People choose products that reflect and communicate
their role and their actual or desired status in society.
• Marketers must be aware of the status-symbol
potential of products and brands.
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46. Social Factors
Social Roles and Statuses
• People buy products reflecting their roles.
Toyota Yarris ads
• https://www.youtube.com/watch?v=1iDKdjLq
Ae0&ab_channel=logodesigner
Maruti Nexa ads
• https://www.youtube.com/watch?v=3IrWCOG
8Wp0&ab_channel=NexaExperience
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47. Personal Factors
• Age
• Life cycle stage
• Occupation
• Wealth
• Personality
• Values
• Lifestyle
• Self-concept
48. Personal Factors
Age and Stage of Lifecycle
• 63% of Indian families are nuclear
• Average family size is 4.5
• Consumption varies according to age.
• Marketers need to consider critical events in
Life.
• Marriage, Death, Child Birth
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49. Consumer Behavior
HDFC Life Child Insurance plan
• https://www.youtube.com/watch?v=2b9nQjq
nX2w&ab_channel=HDFCLife
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51. Personal Factors
Occupation and economic circumstances
Marketers need to look
• Occupation
• Economic circumstances
Covid 19
Oberoi
• Offering Healthier options
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52. Personal Factors
Covid 19
5 Star Hotels
• Offering quarantine facilities
• Rooms into offices
Skoda Rapid
• Longer payment options.
• Payment capacities reduced.
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53. Personality
Personality refers to a set of distinguishing
human psychological traits that lead to relatively
consistent and enduring responses to
environmental stimuli. Personality can be a
useful variable in analyzing consumer brand
choices.
54. Personality
• Consumers buy products which reflect their
personality.
• brand personality as the specific mix of
human traits that we can attribute to a
particular brand.
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58. Personality
Lifestyle and Values
• A lifestyle is a person’s pattern of living in the world as
expressed in activities, interests, and opinions.
• Marketers search for relationships between their products and
lifestyle groups.
• Lifestyles are shaped partly by whether consumers are money
constrained or time constrained.
• Consumers who experience time famine are prone to
multitasking, doing two or more things at the same time, and
pay others to perform tasks because time is more important to
them than money.
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60. Lifestyle and Values
Steel Junction
• Retail shop owned by Tata Steel
• Steel products through retail shops.
• Understanding of customer lifestyles
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61. WHAT DOES THE CONSUMER BUY
• Consumer buys products
• Reflects his/her personality
• Two types of products
– High Involvement
– Low Involvement
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62. CONSUMER BEHAVIOR
HIGH INVOLVEMENT PRODUCTS
Characteristics
• Price
• Complex features
• Large differences between alternatives
• High perceived risks
• Reflect self-concept of buyers
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63. CONSUMER BEHAVIOR
LOW INVOLVEMENT PRODUCT
Characteristics
• Less reflection of buyers self concept
• Alternatives within the same product class are
similar
• Frequent brand switching behavior
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64. BUYING SITUATIONS
• Situations vary
• Due to
- Awareness of company brands
- Customer has a decision criteria
- Customer is able to evaluate and decide
on his choice
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66. STRAIGHT REBUY
• Customer aware of his choices
• Spends little time on choices
• Highly brand loyal
• Highly satisfied
• Example
ITC – Wills smoker
66
79. PERCEPTION
• Human being see or hear only what they want
to anticipate
• This is ‘perception’
• Issues related to perception
– Selective attention
– Selective distortion
– Selective retention
– Subliminal Perception
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81. PERCEPTION
Selective attention
• Do we pay need to all advertisements
• We skip many
• Why?
• We pay selective attention to certain stimuli
• We pay attention to things which we feel will
help us
• Marketers try to understand this
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84. PERCEPTION
Selective distortion
• When we see messages
• We add our own values/beliefs
• Filter the original message
• Distort
Example
Feviquick advertisement
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85. PERCEPTION
Selective retention
• How many advertisements you saw yesterday
are able to recall?
• Very few
• Results show less than 5%
• Marketers need to create message in a
manner which customers are able to recall?
85
88. PERCEPTION
Subliminal Perception
• Subliminal messages are hidden messages
that are made to act on your subconscious
mind. They are an attempt to make you think
or want something without you even realizing
it.
• Kingfisher Water Ad
• Is it Water or Kingfisher brands of Alcoholic
beverages
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94. Purchase Decision
• Forms preferences among the brands
• Intention to buy
• The most preferred brand
• Five subdecision
– Brand
– Dealer
– Quantity
– Timing
– Payment method
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96. Types of perceived risk
Functional
risk
Physical risk
Financial risk
Social risk
Psychological
risk
Time risk
97. Types of perceived risk
Perceived Risks by Customers
• A consumer’s decision to modify, postpone, or avoid a
purchase decision is heavily influenced by one or more
types of perceived risk:
• Functional risk—The product does not perform to
expectations.
• Physical risk—The product poses a threat to the physical
well-being or health of the user or others.
• Financial risk—The product is not worth the price paid.
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98. Types of perceived risk
Perceived Risks by Customers
• Social risk—The product results in
embarrassment in front of others.
• Psychological risk—The product affects
the mental well-being of the user.
• Time risk—The failure of the product
results in an opportunity cost of finding
another satisfactory product
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99. The Buying Decision Process
• Postpurchase behavior
– Postpurchase
satisfaction
– Postpurchase actions
– Postpurchase uses
and disposal
100. The Buying Decision Process
Bisleri
• Asks you to destroy used Bottles
• Not just throw
• Filled up with spurious water
• Fake products.
100
