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.

1. Consumer
Behavior
And
Advertising
research
by ZaiB un Nisa
Hafsa Murtaza
Aziz
Rajia

2. Understanding 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.

3. Consumer Decision-
Making Process
Five-step process used by
consumers when buying goods or
services.
• Need Recognition
• Information Search
• Evaluation of Alternatives
• Behavior Purchase
• Post-purchase

4. Why is consumer behavior important
• A consumer behavior analysis should reveal
• What consumers think and how they feel about various
alternatives (brands, products, etc.)
• What influences consumers to choose between various options
• Consumers’ behavior while researching and shopping;
• How consumers’ environment (friends, family, media, etc.)
influences their behavior.

5. • Consumer: “Consumer is a purchaser of
goods and services for immediate use or
consumption”.
• Buyer: He is the person who purchase
goods either for resale or for use in
production or for use of somebody else.
• Customer: He is the one who purchases
goods for his own use or for the use of
others or else he is regular customer of a
particular product and he is a regular
customer of particular shop.

6. Characteristics of consumer behavior
• It is a process where consumer decide what to buy, when to buy,
how to buy, where to buy & how much to buy.
• It comprises of both mental and physical activities of consumer.
• Consumer behavior is very complex and dynamic which keeps on
changing constantly.
• Individual buying behavior is affected by various internal factors like
his needs, wants, attitudes & motives and also by external factors
like social groups, culture , status, environmental factors etc.
• Consumer behavior starts before buying and even after buying.

7. Factors that influence
consumer behavior
• 1. Personal factors: an individual’s interests and opinions that can
be influenced by demographics (age, gender, culture, etc.).
• 2. Psychological factors: an individual’s response to a marketing
message will depend on their perceptions and attitudes.
• 3. Social factors: family, friends, education level, social media,
income, they all influence consumers’ behavior.

8. Types of consumer behavior
• 1. Complex buying behavior
• This type of behavior is encountered when consumers are
buying an expensive, infrequently bought product. They are
highly involved in the purchase process and consumers’
research before committing to invest. Imagine buying a house
or a car; these are an example of a complex buying behavior.

9. Dissonance-reducing buying behavior
• The consumer is highly involved in the purchase process but
has difficulties determining the differences between brands.
‘Dissonance’ can occur when the consumer worries that they
will regret their choice.

10. Habitual buying behavior
• Habitual purchases are characterized by the fact that the
consumer has very little involvement in the product or brand
category. Imagine grocery shopping: you go to the store and
buy your preferred type of bread. You are exhibiting a habitual
pattern, not strong brand loyalty.

11. Variety seeking behavior
• In this situation, a consumer purchases a different product not
because they weren’t satisfied with the previous one, but
because they seek variety. Like when you are trying out new
shower gel scents.

12. Market
Segmentati
on
Segmentation is essentially an
identification of the subsets of
buyers within a market that share
a similar needs and demonstrates
similar buyer behaviour. The world
is made up of billion buyers with
there own set of needs and
behaviour. Segmentation made to
match different group of buyers
with different set of needs & buyer
behaviour. Such a group is known
as “segment.”

13. Product Differentiation
• It is the process of distinguishing a product or offering from
others, to make it more attractive to a particular target
market. This involves differentiating it from competitors products
as well as a firms own product offerings.

14. Difference between market segmentation
& product differentiation
Market Segmentation
• Consumer oriented
• Focuses on group
of customers
• Attempt to match
the supply With demand.
• Aims at facing
intense comp
• Concentrate on large mkt.
Product differentiation
• Product oriented
• Focuses on product
differences
• Attempt to
match demand with supply
• Aims at increasing sales

15. Advantages of
Market Segmentation
• Increase in sales volume.
• Helps to prepare effective marketing plans.
• Enables to take decisions
• Helps to understands needs of consumers.
• Helps to win competition.
• Makes best use of resources.
• Achieve marketing goals
• Specialized marketing
• Creates innovations
• Higher market share.
• Quality products at reasonable prices

16. Advertising Research

17. Advertising Research
• Advertising Research is a scientific technique of depth analysis
of consumers 'behaviors. It is done through a process, which
involves systematic gathering, recording, and analysis of data
related to the effectiveness of an advertisement.

18. Objectives
of
Advertising
Research
To Enhance Awareness: easy to
plan the marketing strategy
To Know People’s Action/Re-action:
records and analyzes people’s
action or re-action regarding a
particular product/service.
Analysis : it is simple to design and
develop a creative ad, effective
enough to influence consumers.

19. Essentials of Advertising Research
• Research Equipment: basic requirement of advertising research-
includes a skilled person, computer system & relevant newspapers
and magazine
• Media Research: helps to reach the potential customers in a short
period of time and at lower cost.
• Marketing Trends: Knowledge of marketing trends help advertisers to
know what products people are buying and what are the specific
features of the products, which compels people to buy.
• Target audience

20. Method of Advertising Research
• Pre-testing: Pre- testing of ads is done to diagnose any possible
communication problems before beginning an ad campaign.
• Post-testing: Post-testing of ads help advertisers to evaluate the
ad campaign results.

21. Pre- Testing
• Pre-testing is used to increase the likelihood of creating the
most effective advertising messages. This helps in spotting any
communication gaps or flaws in the ad message content before
it is used.
• METHODS OF PRE-TESTING:
• 1.Print Advertising Direct Questioning: The researcher using
this method asks respondents specific questions about the ads
such as What does the ad say to you? Does the ad tell you
something new and different about the product

22. • 2.Order of merit test: Respondents see two or more alternative
ads and arrange them in rank order
• 3.Mock Magazine tests: Ads to be tested are “stripped into” into
a magazine which is left with respondents for a specified time.
• 4. Focus groups: A group of 8 to 10 people who are potential
users of the product or service, participate in a moderated but
free wheeling discussion and interview. Lasts for about one
hour and supervised by a trained moderator who provides
direction and control.

23. Methods of Post-Testing
• 1.Unaided Recall: respondents are asked without prompt whether
they read saw or heard ad messages.
• 2. Aided recall: Respondents are shown certain ads with the name of
the sponsor or brand concealed and then asked if their previous
exposure was through reading, viewing or listening.
• 3.Day- after- recall – most popular method of post testing in
broadcast media. Measure of effectiveness is always the number of
people who can recall the ad. Respondents may be asked simple
question as “While watching program last night, did you see a
commercial for (brand name) ?”

24. • Recognition: It refers to whether a respondent
can recognize an advertisement as having seen
before. Such tests are conducted by mail survey in
which questionnaires are mailed to 1000
households picked from a mailing list or telephone
book. Provides mechanism for breaking a print ad
into important elements such as headline, visual,
copy and how these are remembered by a sample
of respondents.
• 5. Inquiry: It refers to checking the effectiveness of
ads appearing in various print media on the basis of
which consumers respond by requesting for more
information. The inquiry may depend on phone calls
from interested persons, coupons returned or
requests for free samples Researchers can test
advertisements’ attention getting value, readability,
comprehension.

25. Benefits of Advertising Research
• Develops creative design and strategy: helps in making a well-
defined strategy to develop your business.
• Identifies Opportunity in the Market
• Measures Your Reputation
• Identifies Major Problems
• Analyzes Progress: helps to analyze the performance of your
product.
• Minimize the Risk