Consumer behavior involves the various stages a consumer goes through when purchasing goods or services. Understanding consumer behavior is essential for marketing success as consumers are increasingly value-conscious. Globally, consumers are worried about job stability but many feel secure in North America and China. While some consumers are loyal to favorite brands if prices are reasonable, others proactively search for savings, selectively splurge in some categories, and shop across channels. Key factors influencing consumer behavior include culture, subculture, social groups, personal characteristics, psychological aspects, and marketing activities. Household spending varies globally with countries spending more on healthcare, housing, food, transportation, or education depending on their needs and priorities.
Consumer's Choice: Brand Choice and Store Choice factors, Post purchase dissonance, Product use and non-use, Product disposition, Satisfaction and Dissatisfaction, Consumer Complaint Behavior, Satisfaction and Brand Loyalty, Strategic implications of post purchase behavior
Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants
Consumer learning is vital in creating Brand loyalty and Brand equity. In this presentation you will come to know about how people learn and what you should do as a company to make consumers learn about your product.
Consumer Behavior
Consumer Behavior is the study of when, why, how and where people do or do not buy a product. It basically depends on the psychology of the consumer. It attempts to understand the buyer decision making process both individually & in groups.
In the study of Consumer Behaviour main focus is the customer satisfaction because customer is the only person with whose presence businesses actually exists
Meaning and nature of buyer behavior, differences between consumer buying and organizational buying in terms of characteristics and process, Strategic use of consumer behavior knowledge in marketing and public policy decisions. Modern Consumerism and the global consumer movement
Consumer's Choice: Brand Choice and Store Choice factors, Post purchase dissonance, Product use and non-use, Product disposition, Satisfaction and Dissatisfaction, Consumer Complaint Behavior, Satisfaction and Brand Loyalty, Strategic implications of post purchase behavior
Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants
Consumer learning is vital in creating Brand loyalty and Brand equity. In this presentation you will come to know about how people learn and what you should do as a company to make consumers learn about your product.
Consumer Behavior
Consumer Behavior is the study of when, why, how and where people do or do not buy a product. It basically depends on the psychology of the consumer. It attempts to understand the buyer decision making process both individually & in groups.
In the study of Consumer Behaviour main focus is the customer satisfaction because customer is the only person with whose presence businesses actually exists
Meaning and nature of buyer behavior, differences between consumer buying and organizational buying in terms of characteristics and process, Strategic use of consumer behavior knowledge in marketing and public policy decisions. Modern Consumerism and the global consumer movement
A consumer is a person or an organization that consumes whether he buys or not. That is, consumer is known for actual use or employment of a product or service; he or she does not worry about paying for the same. On the contrary, customer is definitely a buyer or who purchases and may or may not actually consume a given product or service.
The Consumer
Research Process
The Importance of the Consumer
Research Process
Largely Influenced by Psychology, sociology, and anthropology
Developing Research Objectives
Secondary Data
Designing Primary research
Qualitative Collection Method
Depth Interview
A consumer is the ultimate user of goods and services. Thus everyone is a consumer in one-way or the other. Every buyer may not be user of that product thus all buyer are consumer of something but all consumer are not necessarily buyer of that product.
A consumer is a person or an organization that consumes whether he buys or not. That is, consumer is known for actual use or employment of a product or service; he or she does not worry about paying for the same. On the contrary, customer is definitely a buyer or who purchases and may or may not actually consume a given product or service.
The Consumer
Research Process
The Importance of the Consumer
Research Process
Largely Influenced by Psychology, sociology, and anthropology
Developing Research Objectives
Secondary Data
Designing Primary research
Qualitative Collection Method
Depth Interview
A consumer is the ultimate user of goods and services. Thus everyone is a consumer in one-way or the other. Every buyer may not be user of that product thus all buyer are consumer of something but all consumer are not necessarily buyer of that product.
Running head PRINCIPLES OF MARKETING1PRINCIPLES OF MARKETING.docxglendar3
Running head: PRINCIPLES OF MARKETING 1
PRINCIPLES OF MARKETING 1
Week 4 Writing Assignment Marketing
Principles of Marketing
Professor Engle
April 12, 2020
Part 1 - Consumer Behavior: How People Make Buying DecisionsConsumer Buying Behavior
Consumer behavior is explained as the selection, buying and consumption of goods or services to fulfill their wants that lead towards satisfaction. Consumer behavior usually involves different processes. First of all, the consumer efforts to find those commodities to which he would provide more utility and would like to consume. Then consumers estimate the money that he has to spend on buying commodities. At last, the consumer makes a comparison of the prices of commodities and after that, if it is suitable then he takes the final decision of buying commodities of his choice.
Product/Service: I am selecting refrigerators as a product that I will offer to customers.
1) Consumer Behavior Model- Environmental Factors
Many environmental factors affect consumer buying behavior like political environment, economic environment, social environment, technological environment, and cultural environment. I will elaborate on only the two more targeted in the present scenario.
The Technological Environment
Technology has brought much advancement not only to products and services, but it also has changed the way of promotional activities. Now there are a variety of features that are introduced like flex-zone, air filtration, adjustable shelves, spill-proof digital shelves, full extension drawers, full-width pantry drawers, electric temperature control, door alarms, designer LED lighting, under counter ice makers, under counter Kegerators. All these advancements are just due to technological advancement. Now the buying behavior of the consumer has changed and they prefer the latest technological product.
Technologies also alter the promotional mix in another significant way: They change the way firms market their products and services. Revolutionary changes originated through the internet, which introduces marketers to a new source that is fully supported for the promotion of goods and services. Marketers should follow technological improvements and adapt their approaches, to take benefit of the opportunities.
The Cultural Environment
Culture can be defined as the combination of art, customs, knowledge, morals, beliefs, value and habits acquired by society. Culture sets certain limitations on behavior that called norms and defilement of these cultural norms consequences in the formation of sanction. Both norms and sanctions affect the consumption pattern. Every society makes its own culture and that influences the choices, wants and behavior of consumers. Chinese don’t prefer durability while the Japanese prefer it. Like people of Islamic countries do not like and permit live-in relationship, it is the culture of Islamic countries, so unmarried live alone and prefer mini-fridge. While in Europe and other c.
Running head PRINCIPLES OF MARKETING1PRINCIPLES OF MARKETING.docxtodd581
Running head: PRINCIPLES OF MARKETING 1
PRINCIPLES OF MARKETING 1
Week 4 Writing Assignment Marketing
Principles of Marketing
Professor Engle
April 12, 2020
Part 1 - Consumer Behavior: How People Make Buying DecisionsConsumer Buying Behavior
Consumer behavior is explained as the selection, buying and consumption of goods or services to fulfill their wants that lead towards satisfaction. Consumer behavior usually involves different processes. First of all, the consumer efforts to find those commodities to which he would provide more utility and would like to consume. Then consumers estimate the money that he has to spend on buying commodities. At last, the consumer makes a comparison of the prices of commodities and after that, if it is suitable then he takes the final decision of buying commodities of his choice.
Product/Service: I am selecting refrigerators as a product that I will offer to customers.
1) Consumer Behavior Model- Environmental Factors
Many environmental factors affect consumer buying behavior like political environment, economic environment, social environment, technological environment, and cultural environment. I will elaborate on only the two more targeted in the present scenario.
The Technological Environment
Technology has brought much advancement not only to products and services, but it also has changed the way of promotional activities. Now there are a variety of features that are introduced like flex-zone, air filtration, adjustable shelves, spill-proof digital shelves, full extension drawers, full-width pantry drawers, electric temperature control, door alarms, designer LED lighting, under counter ice makers, under counter Kegerators. All these advancements are just due to technological advancement. Now the buying behavior of the consumer has changed and they prefer the latest technological product.
Technologies also alter the promotional mix in another significant way: They change the way firms market their products and services. Revolutionary changes originated through the internet, which introduces marketers to a new source that is fully supported for the promotion of goods and services. Marketers should follow technological improvements and adapt their approaches, to take benefit of the opportunities.
The Cultural Environment
Culture can be defined as the combination of art, customs, knowledge, morals, beliefs, value and habits acquired by society. Culture sets certain limitations on behavior that called norms and defilement of these cultural norms consequences in the formation of sanction. Both norms and sanctions affect the consumption pattern. Every society makes its own culture and that influences the choices, wants and behavior of consumers. Chinese don’t prefer durability while the Japanese prefer it. Like people of Islamic countries do not like and permit live-in relationship, it is the culture of Islamic countries, so unmarried live alone and prefer mini-fridge. While in Europe and other c.
Without an understanding of consumers, how they think, and the reasons for how they behave, it is very difficult for a business to give them exactly what they want.
The study of consumer behaviour improves decision-making as some of the guesswork is removed.
Through a better understanding of consumer behaviour, businesses can make better choices with their marketing to attract more of their target customers.
What is Consumer Behaviour?
Consumer behaviour is the study of consumption. It aims to have a better understanding of consumer actions and processes used in their purchase decisions, as well as the usage of products and services and how they are disposed of.
Exploring how the consumer’s emotions, attitudes and preferences affect buying behaviour, consumer behaviour draws upon ideas from several fields including psychology, sociology, anthropology, biology, marketing and economics.
An underlying motivation drives a consumer to act and purchase. These motivations fit under the problem recognition phase discussed above.
This motivation can be either positive or negative. A positive motivation could be a pleasure – having dinner a nice restaurant or a night on the town. A negative motivation could be the avoidance of unpleasantness such as purchasing toothpaste to minimise tooth decay, getting toothaches and having to visit a dentist.
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The session will also cover data analysis techniques and criteria for graduating landing pages.
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In the world of content creation, many AI bloggers have drifted away from their original vision, resulting in low-quality articles that search engines overlook. Don't let that happen to you! Join us to discover how to leverage AI tools effectively to craft high-quality content that not only captures your audience's attention but also ranks well on search engines.
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Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
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SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
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2. Who is a Consumer
•A person who has indicated his or her willingness to obtain goods
or services from a supplier with the intention of paying them
•Someone who has purchased goods or services for personal
consumption
•A person or group of people such as household who are the final
users of product or services
3. Consumer Behaviour
It is a branch which deals with the
various stages a consumer goes
through before purchasing products
or services for his end use.
4. Need to study ?
‘You cannot take the consumer for
granted any more’
Therefore a sound understanding of
consumer behaviour is essential for
the long run success of any marketing
program
5. Globally ,more than half of consumers are worried about job loss,one-
third are optimistic about their finances
Consumer Sentiment
6. •The majority of consumers in Mainland China and North America aren’t
worried about job loss.
•About one-third of shoppers around the world are staying loyal to their
favorite brands instead of downgrading to cheaper options, and some are
even splurging on certain types of purchases.
•In North America, 65 percent expressed no concern about losing their job.
•Consumers in Mainland China also felt more secure in their employment,
with 57 percent saying they’re not worried about job loss.
Customer Insights
7. Four truths about today’s consumers
1. They proactively search for savings.
Forty-four percent agreed that they’re “increasingly looking for ways to save
money
2. They are brand-loyal . . . but only if the price is right.
Fifty-eight percent of survey respondents said they’ve modified their buying
behavior when it comes to their favorite brands.
3. They are selective splurges.
Eleven percent of consumers decided to upgrade their purchases in certain
categories. In aggregate, the world’s consumers appear to be “rebalancing the
portfolio”—spending less in categories where they don’t favor any particular
brand, and spending more in others
4. They shop across channels.
Consumers claimed to have shifted a considerable fraction of their spending
toward online and discount channels.
8. Factors Influencing Consumer Behaviour
Culture:
•Basic values, perceptions, wants and behaviors
•Learned from family and important institutions
Subculture:
•Group of people with shared value systems
•Based on common life experiences and situations
9. Social factors:
•Groups: reference, membership, and aspirational groups
•Opinion leader
•Family
•Roles and Status
Factors Influencing Consumer Behaviour
10. Personal factors:
•Family life cycle
•Occupation
•Economic situation
•Lifestyle: activities, interests, and
opinions (AIO’s)
•Personality and self-concept:
brand personality
Factors Influencing Consumer Behaviour
11. Psychological factors:
•Motivation: needs and motives, Maslow’s
Hierarchy of Needs
•Perception: selective attention, distortion,
and retention
•Learning: drives, stimuli, cues, responses,
and reinforcement
•Beliefs and attitudes
Factors Influencing Consumer Behaviour
12. Changes in Global Consumer Behaviour
•The most recent Accenture Global Consumer Survey found that 64
percent of consumers switched from at least one service provider — a
bank, utility or wireless carrier, for example — due to poor customer
service
•73% – say they have increasingly been using the Internet to
research and buy products and services in the past three years
•Use of social media is disrupting patterns of loyalty, creating new
forms of commercial communities and recreating the purchasing process
•over half of consumers globally tell us they increasingly consider the
environmental impact of the product or manufacturer before purchasing
• to deliver more tailored services and to shift from traditional products
to the more experiential offerings to consumers
•Customer experience begins before a consumer is actually a
customer. All consumer touch points should offer consistent, relevant
experiences
13. Models of Consumer Behaviour
•Learning Model
•Economic Model
•Psychoanalytic Model
•Sociological Model
14. Learning Model
•The response of satisfaction reinforces the
relationship
•Learns to associate connection between stimulus and
response which becomes habit
Drivers of Learning Model:-
Drive − A strong internal stimulus which compels action.
Stimuli − These are inputs which are capable of arousing
drives or motives.
Cues − It is a sign or signal which acts as a stimulus to a
particular drive.
Response − The way or mode in which an individual reacts
to the stimuli.
15. If the response to a given stimulus is “rewarding”, it reinforces the
possibility of similar response when faced with the same stimulus or cues.
If an informational cue like advertising, the buyer purchases a product
(response); the favorable experience with the product increases the
probability that the response would be repeated the next time the need
stimulus arises (reinforcement)
16. Economic Model
Individuals allocate their resources to maximum needs and
wants
• Law of Principal of Maximum utility
• Law of equal marginal utility enables a customer to secure the
maximum utility from limited purchasing power
1)Price effect
2)Substitution effect
3)Income Effect
Consumers have complete knowledge about the utility of each product
and service, i.e., they are capable of completing the accurate
satisfaction that each item is likely to produce.
Price is used as a measure of sacrifice in obtaining the goods or
services. The overall objective of the buyer is to maximize his
satisfaction out of the act of purchase
17. Psychoanalytic Model
•According to this model, the individual consumer has a complex set
of deep seated motives which drive him towards certain buying
decisions.
• The buyer has a private world with all his hidden fears, suppressed
desires and totally subjective longings
• His buying action can be influenced by appealing to those desires
and longings
18. •According to sociological model, the individual buyer behaviour is
influenced by society—by intimate groups as well as social classes
•As his role, status, interaction, influence, group relation, lifestyle ,
income,
•occupation , place of residence, social class etc
•That is, his buying decisions are not totally determined by the
concept of utility. That is his buying decisions are governed by social
compulsions
Sociological model
For instance
A manager and an employee may have different buying behaviors
given their respective roles in the company they work for
But if they live in the same society or attend the same people , they
may buy the products from the same company
20. Global Household spending
•USA Spends maximum on healthcare about 21% and the least is spend
•by Saudi Arabia 1.7%
•Japan Spends maximum on housing , fuel and utilities about 21% and
the least is spend by Russia 10.3%
•South Korea Spends maximum on education about 6.7% and the least is
spend by Russia 1.1%
•Russia Spends maximum on food about 30.7% and the least is spend by
USA 6.8%
•Mexico Spends maximum on transport about 19% and the least is spend
by Saudi Arabia 9.1%
22. Demand Function of an Individual
The individual demand function has a functional relationship between
individual demand and the factors affecting individual demand.
It is expressed as −
Dx = f (Px, Pr, Y, T, F)
Where,
Dx = Commodity Demand x;
Px = Commodity x”s price;
Pr = Related Goods’ Price;
F = Expectation of Change in Price in future.
Y = Consumer’s Income;
T = Tastes and Preferences.
24. Global Food & Beverages
Asia spends around $1500 billion on food, followed by Sub-Saharan
Africa $286
By 2030, global food demand is expected to rise by 35%
Top countries spending on food –
•Switzerland — $8,024 per person
•Norway — $7,624 per person
•Australia — $7277 per person
•Japan — $6,556 per person
25. Global and regional per capita food consumption (kcal per capita per day
• The increase in the world average consumption would have been higher
but for the declines in the transition economies that occurred in the 1990s.
•It is generally agreed, however, that those declines are likely to revert in
the near future
•current energy intakes range from 2681 kcal per capita per day in
developing countries, to 2906 kcal per capita per day in transition countries
and 3380 kcal per capita per day in industrialized countries
26. Global Education
Expenditure
•Asia spends maximum on education, especially South Korea 7% of their
household income, while Europe and Central Asia spends least(Russia
approx, 1%)
•Luxembourg , Norway, Switzerland are the highest spending countries on
education with $19,049.81, $13, 510.48, $13,066.64 per student
27. Demand Function of Market
The market demand function has a functional relationship between
market demand and the factors affecting market demand.
The market demand function can be expressed as −
Dx = f(Px, Pr, Y, T, F, PD, S, D)
Where,
Dx = Market demand of commodity x;
Px = Price of given commodity x;
Pr = Related Goods’ Price;
Y = Consumer’s Income;
T = Tastes and Preferences;
F = Expectation of Change in Price in future;
PD = Size and Composition and Size of population;
S = Season and Weather;
D = Income Distribution.
28. Overall Model of Consumer Behaviour
Self-Concept
&
Learning
Decision ProcessesExternal Influences
Internal Influences
Culture
Subculture
Demographics
Social status
Reference groups
Family
Marketing Activities
Perception
Learning
Memory
Motives
Personality
Emotions
Attitudes
Problem Recognition
Information Search
Alt Eval & Selection
Outlet select & Purchase
Postpurchase
Processes
29. Expenses
Total Purchases
(%)
Doctors and Dentists 3.0%
Groceries 8.6%
Hospitals and Nursing Homes 1.7%
Rent or Mortgage 31.5%
Utilities 5.3%
USA Spending Pattern
The percentages cited below are based on an average
American household income of $63,000.
30. China's $2.2 trillion budget
Chinese Government Spending
China spends about 2.3 trillion yuan on education sector followed by
social security and employment
32. Chinese HNWIs are worlds apart from American HNWIs when it
comes to luxury spending
There is a gaping 41% difference between Chinese HNWIs (86%), and
American HNWIs (45%), in terms of future aspiration to buying luxury
items
33. China’s working-age population
•By 2030, this group will expand by 20 percent—an
additional 100 million people—and per capita
consumption is expected to more than double
•2016 McKinsey Global Sentiment Survey of more than
22,000 consumers finds that nearly 30 percent of these
Chinese consumers are willing to pay more for new and
innovative household products—double the share of
their counterparts in North America and Western Europe
•These individuals are more optimistic about their
financial future and more willing to spend a greater
share of their disposable income than previous
generations.
36. •More than 30% of Indians say they cannot afford vacation/travel.
•Around half of all Indians spend 500 to 2,500 on clothes each month.
•75% of Indians with a household income of 15 lakhs or more spend 1,500 or
more per month on clothes
•46% of full-time workers spend over 1,500 per month on clothes, for part-time
workers this is 18%.
•21% of Indian women spend more than 3,000 per year on new footwear
compared to 16% of Indian men
•1 in 3 Indians in Central India say they can't afford eating out, as opposed to 1
in 10 in West India.
•16% of Indian women state they spend 3,000 or more on a date, while only
14% of men spend the same.
Spending Behaviour Survey In India 2016
37. Japan Spending
Consumer Spending in Japan decreased to 297004.80 JPY Billion in the
fourth
quarter of 2016 from 297023.80 JPY Billion in the third quarter of 2016.
38. Monthly Expenditure Household of
Japan
Japan is an aging population and is under huge debt of (US$10.46 trillion)
in 2013, more than twice the annual gross domestic product
39. •About two thirds of internet users in the
EU shopped online in 2016
•The most popular type of goods and
services purchased online in the EU was
clothes and sport goods (61 % of e-
buyers),
•followed by travel and holiday
accommodation (52 %).
•68 % of e-buyers reported to have no
problem when purchasing online
•32 % of online shoppers bought or
ordered goods or services from sellers in
other EU countries
EuroStat of Individuals
40. • E-shoppers aged 16-24 were the top age group when it came to clothes
and sports goods purchases (69 %),
•Those aged 25-54 in buying household goods (49 %) and the older age
group (55-74) in online purchases of travel and holiday accommodation
(57 %).
EuroStat of
Individuals
41. Clothes and sports goods predominate
in online purchases
•The 16-24 age-group had the highest
proportions of e-shoppers purchasing
clothes and sport goods (69 %), video
games software, other software and
upgrades (28 %) and e-learning material (8
%).
•People aged 25-54 had the highest
proportion of internet users buying
household goods (49 %), tickets for events
(40 %), electronic equipment (26 %), food
or groceries (25 %), telecommunication
services (20 %) and computer hardware
(18 %).
•The older (55-74) age group took the lead
in buying travel and holiday
accommodation (57 %), books, magazines
EuroStat of Individuals
42. •This group will grow by more than one-third in number,
from 164 million in 2015 to 222 million in 2030. It will
generate 51 percent of urban consumption growth in
developed countries and 19 percent of global urban
consumption growth
•These consumers spend more per head than
younger people, largely because of heavy spending on
healthcare.
•People over 50 bought nearly two-thirds of the new cars
sold in the United States in 2011
The retiring and elderly in developed
economies
43. North America’s working-age population
•MGI research finds that many younger consumers are under income
pressure, are poorer than the previous generation, and are more cost
conscious.
•Compared with older cohorts, young adults are 10 to 20 percentage points
more likely to consider and use sharing-economy services for everything from
accommodation to car rental to furnishings.
45. •By 2020, in addition to the BRIC economies, Mexico, Indonesia, Turkey and
Poland will rank in the world’s top 20 biggest consumer markets;
•As the spending potential of consumers increases, there will be growing
demand for higher-end fast moving consumer goods products leading to a
gradual shift in spending patterns from basic necessities to discretionary
items
•luxuries, household durables and communications but demographic
challenges will persist for consumer goods companies;
Spending Pattern across Emerging Companies
46. Spending Pattern Analysis
•Different countries have different spending pattern
•Critical for companies to provide the right amount of services, so
there
•comes the need of Analytics, which give insightful to companies
Customer analytics is becoming critical.
To understand why, consider this:
•Customers are more empowered and connected than ever. And
becoming more so.
•Customers have access to information anywhere, any time – where
to shop, what to buy, how much to pay, etc
47. Analytics
•That makes it increasingly important to predict how customers will
behave when interacting with your organization, so you can respond
accordingly.
•The deeper your understanding of customers' buying habits and
lifestyle preferences, the more accurate your predictions of future
buying behaviors will be
•Successful will be at delivering relevant offers that attract rather
than alienate customers
49. With customer analytics, you can:
•Increase response rates, customer loyalty and, ultimately, ROI
by contacting the right customers with highly relevant offers and
messages.
•Reduce campaign costs by targeting those customers most
likely to respond.
•Decrease attrition by accurately predicting customers most
likely to leave and developing the right proactive campaigns to
retain them.
•Deliver the right message by segmenting customers more
effectively and better understanding target populations.