5. Introduction
processes a consumer uses to make purchase
decisions, as well as to use and dispose of
purchased goods or services; also includes
factors that influence purchase decisions and the
product use
7. Features of Consumerism
– Protection of rights
– Prevention of malpractices
– Unity among consumers
– Enforcing consumer rights
8. Determinants of Demand
– Income
– Consumer Preferences
– Number of Buyers
– Substitute Goods (goods that can be used to replace each
other
– Complementary Goods (goods that can be used together
10. Classification of impulse buying
– Planned impulse buying
– Reminded impulse buying
– suggestion or fashion oriented impulse buying
– pure impulse buying.
11. Buying process
– Problem recognition
– Awareness
– Attitude
– Comprehension
– Legitimization
– Trial ( depend on the product category)
– Adoption
– Post purchase behaviour
12. Five stage Consumer Decision-
making Process
Cultural, Social, and
Individual and
Psychological
Factors affect all
steps
Need Recognition
Information Search
Evaluation of Alternative
Post purchase Behaviour
Purchase
13. Factors influencing consumer
behaviour
Cultural factors (Culture and societal environment,
Subcultures, Social classes, Cultural trends)
Social factors (Reference groups and membership
groups, Family, Social roles and status)
Personal factors (Age and way of life, Purchasing
power and revenue, Lifestyle, Personality and self-concept)
Psychological factors (Motivation, Perception,
Learning)
17. Important models of consumer
behavior
The Economic Model
Learning Model
Psychological Model
The Sociological Model
The Howard Sheth Model of buying behaviour
The Nicosia Model
The Engle- Kollat -Blackwell Model
Engle, Blackwell and Miniard (EBM) Model
Webstar and Wind Model of organizational buying behaviour
The Sheth Model of Industrial buying
18. William Stanley jevons
Analyz in total utility (TU)
& marginal utility (MU)
“utils” is the unit of
measure
Consumer satisfaction
can be measured thru TU
& MU
Vilfredo pareto
Described thru
consumer’s preference
of “ various
combinations of goods &
services” based on
nature not on total utility
& marginal utility
Theories of consumer behavior
Utility Theory Indifference Theory
22. External Sources
– Directories
– Country information
– Published marketing research reports
– News sources
– CGM (Newsgroups, blogs, groups)
– Internet – single search engines, and multiple search
engines
23. The various survey methods which
are generally used
– Personal interview survey
– Telephone survey
– Mail surveys
– Online surveys
– Quantitative research data collection instruments
25. The Buyer Decision Process for
New Products
Adoption process is the mental process an individual
goes through from first learning about an innovation to final
regular use
–Stages in the process include:
Awareness Interest evaluation Trial Adoption
26. Online Customer Behaviour
Process
During this stage, well-organized web site structure
and attractive design are important things to persuade
consumers to be interested in buying product or
service.
27. Factors of Online Customer
Behaviour
– External Factors are divide into five sectors demographic, socio-
economic, technology and public policy; culture; sub- culture;
reference groups; and marketing.
– Internal Factors are the personal traits or behaviours which
include attitudes, learning, perception, motivation, self-image.
– Functional Motives is related to the consumer needs and include
things like time, convenience of shopping online, price, the
environment of shopping place, selection of products etc.
– Non-Functional Motives related to the culture or social values like
the brand of the store or product
30. Consumer expectation
– A customer expects essential benefits.
– A customer expects performance and not blank promises.
– A customer expects competency.
– Services
31. Services and Products
– Customer wants consistency, which is the capacity to
perform the promised services, reliably and accurately.
– Customer wants tangibility or the form of physical facilities,
equipment, workforce and other materials.
– Customer wants reaction – the reaction to an inquiry or to
a call.
32. Working towards Enhancing
Customer Satisfaction
– Try to provide surprise benefits.
– Constantly express the expectations that the customer
has around your product.
– Treat the customer exclusively.
– Look for expectations and performance gaps in order to
identify opportunities to delight.
– Attempt continuously to provide additional customer
value in every transaction.