Cbmc unit 2

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Cbmc unit 2

  1. 1. CBMC UNIT 2Individual determinants of consumer behavior  Motivation,  Personality and Self Concept,  Consumer Perception,  Consumer Learning,  Consumer AttitudeMotivation  Driving force within individuals that impels them to action.  Innate needs: we are born with these, also called physiological needs. Ex. Food, water, shelter, clothes.  Acquired needs: we develop after birth, also called psychological needs. Ex. Love, acceptance, esteem.Goals  Behavior is always goal oriented. It’s the outcome of motivation.  Goal selection is either based on cognition or previous learning/experience.  Generic or product specific  Positive or negativeFailure to achieve a goal  Frustration  Fight (substitute) or flight (defense)PersonalityPsychological characteristics that determine how a person responds to his or herenvironment.The 3 theories  Psychoanalytic theory: human drives are largely unconscious in nature and serve to motivate many consumer actions.  Neo-Freudian theory: talks about the fundamental role of social relationships in the formation and development of personality.  Trait theory: individuals possess innate psychological traits and these traits can be measured.Brands also have personalities  Individuals buy brands that are extension of their personality.  Social mediaPerceptionProcess by which individuals select, organize, and interpret stimuli into ameaningful and coherent picture of the worldOrganization of perceptions by ConsumersAccording to Getstalt psychology: figure and ground, grouping and closure.StereotypesHalo effect
  2. 2. The perceived image of a brand is more important than the actual physicalcharacteristics of product.Perception of risk 1. Functional risk 2. Physical risk 3. Financial risk 4. Social risk 5. Psychological risk 6. Time riskHow risk is handled? 1. Seek information 2. They are brand loyal 3. Select the product on the basis of brand 4. Image of the POS 5. Buy most expensive model 6. Seek reassuranceLearningProcess by which individuals acquire the purchase and consumption knowledge andexperience they apply to future related behavior.Most of the learning is incidental.Process:Motivation, cues, response and reinforcement.How consumers learn?  Behavioral theories: observable responses  Cognitive theories: mental processingAttitudeBehavior in a consistently favorable or unfavorable way with respect to a givenobject. Ex. A product category, a brand, a service, an advertisement, a web site or aretail establishment.Models to understand and measure consumer attitude  Tricomponent attitude model  Multiattribute attitude model  Trying to consume attitude model  Attitude toward the ad modelTricomponent attitude modelConsists of three parts: cognitive, affective and conative componentCognitive component : captures consumer’s knowledge and perceptions aboutproduct and servicesAffective component : focuses on consumer’s emotions or feelings with respect to aparticular product or serviceConative component: an expression of the consumer’s intention to buyMultiattribute attitude model 1. Attitude toward object 2. Attitude toward behavior
  3. 3. 3. Theory of reasoned actionTrying to consume attitude modelDesigned to account for the many cases in which action or outcome is not certainAttitude towards the ad modelExamines the influence of advertisements on the consumer’s attitudes toward thebrandAttitude formationStrategies of attitude change 1. Changing the basic motivational function 2. Associating the attitude object with a specific group or event 3. Relating the attitude object to conflicting attitudes 4. Changing beliefs about competitors brands 5. The elaboration modelConsumer Decision ProcessProcess by which a person is required to make a choice from various alternativeoptions is referred as consumer decision makingDecision making process 1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post purchase experienceFactors influencing decision makingMarketing Mix Influences Socio-cultural influencesProduct Personal InfluencePrice Reference GroupPromotion FamilyPlace Social Class Culture & sub culturePsychological Influence Situational InfluencesMotivation Purchase taskPersonality Social surroundingsPerception Other surroundingsLearning Temporal effectAttitudesLifestyleConsumer Behavior ModelsRelevance 1. The Nicosia Model  Message exposure causes consumer’s attitude formation
  4. 4.  Consumer’s information search and evaluation of alternatives  Act of purchase  Feedback of the consumerHoward Sheth ModelThree possible kind of consumer problem solving:  Extensive Problem Solving  Limited problem solving  Routinized response behaviorExtensive Problem Solving  Consumer’s knowledge about brand in limited  Seeks information and alternatives  Ads need to be informativeLimited problem solving  Knowledge only of a few brands  Not able to assess brand difference  Ads here play a roleRoutinized response behavior  Knowledge and beliefs about certain brands are well established  Choice is confined and made by habitThe Engel-Kollat-Blackwell model  Information input  Information processing  Decision making process  External variables operating in the backgroundOrganizational buying behavior  Consumable and non consumable items  Price, quality and performanceCharacteristics  Group Based decision making  Technical Knowledge base  Few buyers  Ticket size is huge  Close supplier-buyer relationship  Fluctuating demand  Direct purchasing  LeasingOrganizational buying process 1. Problem recognition 2. Product specification 3. Product-vendor search 4. Product & vendor evaluation 5. Product and vendor selection
  5. 5. 6. Performance evaluationRandom notes  Government organizations purchase through tenders  No. of individuals involved  Its secondary buying most of the times  Group buying  Negotiations  Its need based  A proper process existsFactors influencing organizational  Organizational Culture: decisions, risk handling, innovation & change  Environmental influences: Physical, technology, economic, political, legal  Interpersonal factors  Individual factors: motivation, perception, Learning

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