consumer behaviour basics


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consumer behaviour basics

  1. 1. Presented by : Palaash Kumar 1
  2. 2. CONTENTS 1. What is consumer behavior ? 2. Why do we study consumer behavior ? 3. Factors affecting consumer behavior 4. Psychological processes affecting consumer behavior 5. Types of buying decisions 6. The buying decision process 7. Conclusion 8. References 2
  3. 3. What is Consumer Behavior ? • The study of how final consumers (individuals & households) buy,use,dispose of goods,services,ideas,experiences for personal consumption. 3
  4. 4. Why do we study consumer behavior ? • Consumers are different • Consumer behave differently in different cultures, and societies • There are Cultural, Economic, Language, and Societal differences. 4
  5. 5. Factors Affecting Consumer Behavior 5 Personal SocialCulture
  6. 6. Factors affecting consumer behavior : Cultural 6 Social Class • People within a social class tend to exhibit similar buying behavior. • Occupation • Income • Education • Wealth Subculture • Groups of people with shared value systems based on common life experiences. •Geographic •Religions •Racial groups Determines a person's wants and behavior Values,Perceptions, Preferences, Behaviors.
  7. 7. 7 Reference Groups •Membership •Aspiration •Dissociative Family •Family of orientation •Family of procreation Roles and Status Social Factors Factors affecting consumer behavior : Social
  8. 8. Factors affecting consumer behavior : Personal 8 Personal Influences Age and Family Life Cycle Stage,eg : Titan wedding collecn Occupation,eg : comp. Software companies Economic Situation If recession expected,marketers can redesign,reposition, reprice products Personality & Self-Concept: Actual,ideal,others’
  9. 9. Psychological Factors Motivation Perception Learning Beliefs and Attitudes Psychological processes affecting consumer behavior 9
  10. 10. Maslow’s Hierarchy of Needs 10 Self-actualisation (self development) Esteem needs (self- esteem,status) Social needs (sense of belonging,love) Safety needs (security,protection) Physiological needs (Hunger,thirst)
  11. 11. • “Why are people driven by particular needs at a particular time?” • Human needs arranged in hierarchy • People satisfy the most important need first • Eg : a starving man would not be interested in anything other than food and water 11
  12. 12. Herzberg’s Theory • 2 factor theory,dissatisfiers and satisfiers distinguished • Eg : a computer that does not come with a warranty – dissatisfier,ease of use would be a satisfier. 12
  13. 13. Freud’s Theory • Freud assumed that the psychological forces shaping people’s behavior : largely unconscious • A person can’t understand his/her own motivations. • Laddering lets us trace a person’s motivation • Marketer can then decide at what level to develop the message and appeal 13
  14. 14. Perception • Process by which we select,organize and interpret information inputs to create a meaningful picture of the world. • Eg : a fast-talking salesperson • 3 important perceptual processes: • Selective attention • Selective distortion • Selective retention 14
  15. 15. Learning • Induces changes in behavior arising from experience • Eg : Suppose you buy a Dell computer,a rewarding experience will positively reinforce response to computers and Dell 15
  16. 16. Beliefs and Attitudes • Beliefs – descriptive thoughts that a person holds about something • Attitudes – a person’s enduring favourable or unfavourable evaluations,emotional feelings,action tendencies towards an object/idea • Attitudes economize on energy and thoughts,very difficult to change 16
  17. 17. Types of Buying Decisions 17 Complex Buying Behavior Dissonance- Reducing Buying Behavior Variety- Seeking Behavior Habitual Buying Behavior High Involvement Significant differences between brands Few differences between brands Low Involvement
  18. 18. The Buyer Decision Process 18 Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior
  19. 19. External Stimuli • TV advertising • Magazine ad • Radio slogan •Stimuli in the environment Internal Stimuli • Hunger • Thirst • A person’s normal needs Need Recognition Difference between an actual state and a desired state The Buyer Decision Process Step 1. Need Recognition 19
  20. 20. The Buyer Decision Process Step 2. Information Search 20 •Family, friends, neighbors •Most influential source of information •Advertising, salespeople •Receive most information from these sources •Mass Media •Consumer-rating groups •Handling the product •Examining the product •Using the product Personal Sources Commercial Sources Public Sources Experiential Sources
  21. 21. Product Attributes Evaluation of Quality, Price, & Features Degree of Importance Which attributes matter the most to me? Brand Beliefs What do I believe about each available brand? Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product? Evaluation Procedures Choosing a product (and brand) based on one or more attributes. The Buyer Decision Process Step 3. Evaluation of Alternatives 21
  22. 22. The Buyer Decision Process Step 4. Purchase Decision 22 Purchase Intention Desire to buy the most preferred brand Purchase Decision Attitudes of others Unexpected situational factors
  23. 23. Consumer’s Expectations of Product’s Performance Dissatisfied Customer Satisfied Customer ! Product’s Perceived Performance Cognitive Dissonance The Buyer Decision Process Step 5. Postpurchase Behavior 23
  24. 24. CONCLUSION • Consumer behavior influenced by 3 factors : cultural,social,personal • 4 main psychological processes affecting consumer behavior : motivation,perception,learning,memory • Typical buying processes consist of : problem recognition, information search, evaluation of alternatives, postpurchase behavior • The attitudes of others,unanticipated situational factors and perceived risk may all affect the decision to buy. 24
  25. 25. REFERENCES • Marketing Management by Philip Kotler • Principles of Marketing by Philips Kotler • Basic Marketing by Perreault & Mccarthy (Tata McGraw Hill) 15th edition • Marketing Management by Dr.Rajan Saxena 4th edition 25
  26. 26. THANK YOU 26