Consumer behavior


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Consumer behavior

  1. 1. Consumer Behavior– you are what you buy… By: Vincy Victor. K 1 Ratan Global Business School07/16/13
  2. 2. Consumer Decision-Making Process Postpurchase Behavior Postpurchase Behavior PurchasePurchase Evaluation of Alternatives Evaluation of Alternatives Information SearchInformation Search Need RecognitionNeed Recognition Cultural, Social,Cultural, Social, Individual andIndividual and PsychologicalPsychological FactorsFactors affectaffect all stepsall steps Cultural, Social,Cultural, Social, Individual andIndividual and PsychologicalPsychological FactorsFactors affectaffect all stepsall steps 2Ratan Global Business School07/16/13
  3. 3. Need Recognition Preferred State Marketing helps consumers recognize (or create) an imbalance between present status and preferred state • When a current product isn’t performing properly • When the consumer is running out of an product • When another product seems superior to the one currently used 3Ratan Global Business School07/16/13
  4. 4. The information search stage An internal search involves the scanning of one's memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products. An external search may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering information is low. Personal sources (friends and family) Public sources (rating services like Consumer Reports) Marketer-dominated sources (advertising or sales people) The evoked set: a group of brands from which the buyer can choose 4Ratan Global Business School07/16/13
  5. 5. Determinants of External Search 5Ratan Global Business School07/16/13
  6. 6. Buyer Behavior • Initiator: the person who first suggests or thinks of the idea of buying a particular product or service. • Influencer: a person whose views or advice carry weight in making the final buying decision • Decider: the person who ultimately makes the final buying decision or any part of it • Buyer: the person who makes the actual purchase • User: the person who consumes the product or service Other people often influence a consumers purchase decision. The marketer needs to know which people are involved in the buying decision and what role each person plays, so that marketing strategies can also be aimed at these people. (Kotler et al, 1994). Note: teens are increasingly assuming more of these roles Think about your past purchase– who was in which role? 6Ratan Global Business School07/16/13
  7. 7. Consumer decision making varies with the level of involvement in the purchasing decision • Extensive: problem solving occurs when buyers purchase more expensive, less frequently purchased products in an unfamiliar product category requiring information search & evaluation; may experience cognitive dissonance. • Limited: problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category • Routine: response behavior occurs when buyers purchase low cost, low risk, brand loyal, frequently purchased, low personal identification or relevance, items with which they are familiar. Increase in Consumer evaluation processes 7Ratan Global Business School07/16/13
  8. 8. Factors affecting Consumer involvement • Previous experience: low level involvement • Interest: high involvement • Perceived risk of negative consequences: high involvement • Situation: low to high due to risk • Social visibility: involvement increases with product visibility • Offer extensive information on high involvement products • In-store promotion & placement is important for low involvement products • Linking low-involvement product to high-involvement issue can increase sales So… 8Ratan Global Business School07/16/13
  9. 9. Postpurchase Behavior Can minimize through: Effective Communication Follow-up Guarantees Warranties Underpromise & overdeliver Cognitive DissonanceCognitive Dissonance ?Did I make a good decision?Did I make a good decision? Did I buy the right product?Did I buy the right product? Did I get a good value?Did I get a good value? 9Ratan Global Business School07/16/13
  10. 10. Sour Grapes– a story of cognitive dissonance …after being unable to reach the grapes the fox said, “these grapes are probably sour, and if I had them I would not eat them.” --Aesop 10Ratan Global Business School07/16/13
  11. 11. 11Ratan Global Business School07/16/13
  12. 12. Ratan Global Business School 1207/16/13
  13. 13. Conclusion There should be a good decision- making units and the processes which involves in acquiring, consuming, and disposing of goods, services, experiences, and ideas. Ratan Global Business School 1307/16/13
  14. 14. Thank You Ratan Global Business School 1407/16/13