CONSUMER BEHAVIOUR




                     By- Abhijith R.
BUYING PROCESS
     i)Need
  Recognition
  Desire….??
   External &
internal factors
ii)Information search
 SEARCH:-Purposeful attention devoted to gathering of
 information related to the satisfaction of some particular
 perceived need.
 Family,Friends,Neighbours,Opinion leaders
Print media,TV ,Internet & Radio

iii)Evaluation of Alternatives
Critical Stage in Buying
1)A product is a bundle of attributes
2)Information cues about product
characteristics, Brand image & brand concept
3)More critical attributes to reduce the number
of alternatives
4)Evaluation process

iv)Purchase decision
•Like & dislike about alternative brands
which influence the intension to buy
•Situational factors like dealers terms,
falling price etc are considered
•Perceived risk also influences
v)Post purchase experience
& Behaviour
Feedback after brand purchase & product
 use
Cognitive dissonance: If purchased brand
doesn’t yield the desired satisfaction ,negative
feelings occur & creates anxiety, doubts
Post purchase dissonance: The consumer is
experiencing a doubt whether the decision was correct
or not
Creating realistic expectations, product design keeping
Consumer lifestyle in mind, providing means for communicating
With the company, the customer deserved to be thanked ..to
   avoid PPD
PERCEIVED RISK
Uncertainty faced by the consumers when they
  cannot assess the post purchase consequences
  before purchasing the product or service
1. Financial Risk
2. Functional Risk
3. Physical Risk
4. Psychological Risk
5. Social Risk
6. Time Risk
Family life cycle
    Child or teenager


     Young single

    Young couple

       Full nest

     Empty nest

      Widow(er)
NEW URBAN FAMILY
• When individual tastes diverged sharply from
  one another & are backed by sufficient
  spending power
• Family focused brands are placing Ad’s so that
  the context of consumption for NUF is
  communicated
Nestle Maggi,Asian paints, Surf excel Ad’s
Industrial Consumer Behavior
•Features
  •Purchasing agents/Professional agents
  •Large volumes
  •Price breaks
  •Self use/ Resale
  •Small target group
  •Derived demand
  •More decision makers
  •Branding less
Differences between Indv. CB & Indus. CB

            Subjective/Objective*Formalities*roles involved*mktg
                                                mix
SP, Ad& Distribution Vs Personal Sales, design, service/price

Kinds of customers
Transactional( price sensitive)*consultation requiring*collaborative (leads to
continuous improvement)

Industrial Buying Process
•ESPPC factors*Consumer behaviour imp. Variable
•Stages
    •Initiation Stage-New buy situation
    •Search Stage:in-supplier/out supplier
    •Feedback Stage
Buying Centre
• Decider*initiator*influencer*user*purchaser*gat
  ekeeper
• Basic aspects
  – Composition, Influences vary with category
  – Dynamic
  – Role of the Informal
• Buying Situations
  – New-buy/Straight re buy/modified re buy
MARKETING RESEARCH
• Why
  – Relationships*adherence to rule*shareholder
    expectations*public appreciation
• Info is Crucial!
• Research topics in Marketing
  – Consumer Behaviour*Product
    positioning/devlpmt/life cycle
  – Branding
  – Mkt segmentation
  – Advertising, SP
  – Sales/distribution
Marketing Research process
• Problem Identification/ Formulation
  – (Problem well stated is half solved)
• Evaluation of Alternatives
  – Eg. The case of turn over of employees
  – Ways of analysis
     • Discuss with experts*Literature survey
     • Primary research-direct mails/phone/personal interview
• Hypothesis
  – Predictive statement which is clear, testable, showing
    relations, specific, simple, with time allotted.(H0&Ha)
Research Design
• Sampling Design, Observation Design,
  Statistical Design, Operational Design.
Sampling design
  – How many?, In what manner?
• Probability/Non Probability Sampling
• Raw data Processing
  – Editing*Coding*Classification*Tabulation
Marketing research analysis
•   Tools like SPSS, SSP
•   Multiple regression analysis
•   Regression analysis
•   Conjoint analysis( To decide on trade off’s)
•   Cluster Analysis
•   Factor analysis
    – Co-relation Matrix, Identify patterns
• Discriminant Analysis
• Correspondence Analysis
MARKETING RESEARCH
          METHODS
The Major concepts in demand measurement
are
   MARKET DEMAND
    • Market demand for a product is the total volume that would be bought by a
      defined customer group in a defined geographical area in a defined period
      of time in a defined marketing environment under a defined marketing
      programme….


   COMPANY DEMAND
    • Company demand is the company’s estimated share of market demand at
      alternative levels of company’s marketing effort . One major reason for
      undertaking marketing research is to identify the market opportunities
      .Once the research is complete, the company must measure and forecast the
      size, growth and profit potential of each market opportunity
NEW PRODUCT LAUNCH
               RESEARCH
A Marketer to ensure product success uses the following guidelines :-
1, Distinguish the product from the competition in a consumer relevant way
2,Capitalise on key corporate competencies and brand strength
3,Develop and market product to people’s needs and habits
4,market to long-term trends
5,Not to ignore research, and not be paralyzed by it
6,Make sure the timing is right
7,Be a marketing leader and not a distant follower
8,offer a real value to customers
9,Determine a short-term product and long-term sales potential
10,Gain legitimacy and momentum for the brand
11,Give the trade as good a deal as the customer
12,Clearly define,understand,and talk to your target
13,Develop n communicate a distinctive n appealing brand character n stick to it
14,Spend competitively n efficiently ,behind a relevant proposition
15,make sure the consumer is satisfied n stays that way
ADVERTISING RESEARCH
Advertising research is a subset of marketing research.it systematically gather n
analyses information to help develop or evaluate advertising strategies ,
individual advertisements, or whole advertising campaigns . Advertiser needs to
know how consumer perceive its products or service , what their views about the
competition are and what image of the brand or the company would be most
appropriate to build
Advertising research is required to serve a number of purposes, which are
grouped into four categories :
 Advertising strategy research
 Creative concept research
 Pre-testing of advertisement
 Post-testing
      ADVERTISING STRATEGY RESEARCH
The strategy is developed by carefully blending the elements of the creative mix . The mix elements
are :
    1,Product n                         3,Communication          4,creative       5,Pre-testing n
        its          2,Target
                     audience                media                concept          post-testing
    positioning
CUSTOMER SATISFACTION
               RESEARCH
Customer satisfaction research is that area of marketing research which focuses on
customers' perceptions with their shopping or purchase experience.
Many firms are interested in understanding what their customers thought about their
shopping or purchase experience, because finding new customers is generally more
costly and difficult than servicing existing or repeat customers.

                               METHODS
                    1,Quantitative Research Studies
                     2,Qualitative Research Studies
                                   TYPE
                 1,Descriptive or documentary research
                 2,Inferential or models-based research
RETAIL STORES IMAGE RESEARCH
The concept of store image was used by Martineau(1958) for the first time. He defined it as
“a store defined in customers’ mind partly based on functional attributes and partly based
on psychological attributes.” He claimed that store image includes its characteristic
attributes and it makes customers feel the store different from others. Functional attributes
are assortment of commodities, layout, location, price-value relation, and service that
consumers can objectively compare with other stores. Psychological attributes are
attractiveness and luxuriousness that represent special attributes of that store.
Researchers have studied a multitude of retailer attributes that influence the overall image
eg :-
The variety n quality of product, service, n brands sold, the physical store appearance,
behavior n service quality of employees , the price level, depth n frequency of promotions…


DISTRIBUTION RESEARCH
The study has been now divided into supply chain research n also on logistics research.
In the case of supply chain, following are included for research
1,Alignment of market with the supply                10,Supply chain risk
2,linking demand chain and firm performance           11,Supply chain stategy
3,outsourcing                                         12,Service supply chains
4,Reverse logistics                                    13,Stock loss
5,supply chain agility
6,supply chain collaboration
8,supply chain information systems
9,supply chain risk and resilience
COMPETITOR ANALYSIS
                   RESEARCH
The competitive intelligence is the legal n ethical process of collecting n analyzing
information,converting it into intelligence n then using it to determine the
capabilities,vulunerabilities,n intentions of the competition. There are 3 level @ which the
research is undertaken
1, Feature level
2,Solution level
3,Hidden competition
          PREPARATION OF MARKETING RESEARCH REPORT
The result of marketing is effectively communicated to the management .Presenting the result of
a marketing result study to mgmt. generally involves a formal written reports as well as an oral
presentation . The report n presentation are extremely important`.
FIRST , bcoz the result of marketing research are often intangible n the written report is usually
the only documentation of the project.
SECOND, the written report n oral presentation are typically the only aspect of the study and
the consequently the overall evalution of the research project rests on how well this info is
communicated .
THIRD, Since the written research report and the oral presentation are typically the
responsibility of the supplier .
UNDERSTAND THE RESULT AND
        DRAW CONCLUSIONS
The following outline is the suggested format for writing research report :-
•   TITLE PAGE
•   SUMMARY OF FINDING
•   TABLE OF CONTENTS
•   LIST OF TABLES
•   LIST OF FIGURES


•   BACKGROUND TO THE RESEARCH PROBLEM
•   OBJECTIVES
•   HYPOTHESES


•   SAMPLE N SAMPLING METHOD
•   STATISTICAL OR QUALITATIVE METHODS
•   SAMPLE DESCRIPITION



• RESULTS , INTERPRETATION AND CONCLUSION
Consumer behaviour

Consumer behaviour

  • 1.
    CONSUMER BEHAVIOUR By- Abhijith R.
  • 2.
    BUYING PROCESS i)Need Recognition Desire….?? External & internal factors ii)Information search SEARCH:-Purposeful attention devoted to gathering of information related to the satisfaction of some particular perceived need. Family,Friends,Neighbours,Opinion leaders
  • 3.
    Print media,TV ,Internet& Radio iii)Evaluation of Alternatives Critical Stage in Buying 1)A product is a bundle of attributes 2)Information cues about product characteristics, Brand image & brand concept 3)More critical attributes to reduce the number of alternatives 4)Evaluation process iv)Purchase decision •Like & dislike about alternative brands which influence the intension to buy •Situational factors like dealers terms, falling price etc are considered •Perceived risk also influences
  • 4.
    v)Post purchase experience &Behaviour Feedback after brand purchase & product use Cognitive dissonance: If purchased brand doesn’t yield the desired satisfaction ,negative feelings occur & creates anxiety, doubts Post purchase dissonance: The consumer is experiencing a doubt whether the decision was correct or not Creating realistic expectations, product design keeping Consumer lifestyle in mind, providing means for communicating With the company, the customer deserved to be thanked ..to avoid PPD
  • 5.
    PERCEIVED RISK Uncertainty facedby the consumers when they cannot assess the post purchase consequences before purchasing the product or service 1. Financial Risk 2. Functional Risk 3. Physical Risk 4. Psychological Risk 5. Social Risk 6. Time Risk
  • 6.
    Family life cycle Child or teenager Young single Young couple Full nest Empty nest Widow(er)
  • 7.
    NEW URBAN FAMILY •When individual tastes diverged sharply from one another & are backed by sufficient spending power • Family focused brands are placing Ad’s so that the context of consumption for NUF is communicated Nestle Maggi,Asian paints, Surf excel Ad’s
  • 8.
    Industrial Consumer Behavior •Features •Purchasing agents/Professional agents •Large volumes •Price breaks •Self use/ Resale •Small target group •Derived demand •More decision makers •Branding less
  • 9.
    Differences between Indv.CB & Indus. CB Subjective/Objective*Formalities*roles involved*mktg mix SP, Ad& Distribution Vs Personal Sales, design, service/price Kinds of customers Transactional( price sensitive)*consultation requiring*collaborative (leads to continuous improvement) Industrial Buying Process •ESPPC factors*Consumer behaviour imp. Variable •Stages •Initiation Stage-New buy situation •Search Stage:in-supplier/out supplier •Feedback Stage
  • 10.
    Buying Centre • Decider*initiator*influencer*user*purchaser*gat ekeeper • Basic aspects – Composition, Influences vary with category – Dynamic – Role of the Informal • Buying Situations – New-buy/Straight re buy/modified re buy
  • 11.
    MARKETING RESEARCH • Why – Relationships*adherence to rule*shareholder expectations*public appreciation • Info is Crucial! • Research topics in Marketing – Consumer Behaviour*Product positioning/devlpmt/life cycle – Branding – Mkt segmentation – Advertising, SP – Sales/distribution
  • 12.
    Marketing Research process •Problem Identification/ Formulation – (Problem well stated is half solved) • Evaluation of Alternatives – Eg. The case of turn over of employees – Ways of analysis • Discuss with experts*Literature survey • Primary research-direct mails/phone/personal interview • Hypothesis – Predictive statement which is clear, testable, showing relations, specific, simple, with time allotted.(H0&Ha)
  • 13.
    Research Design • SamplingDesign, Observation Design, Statistical Design, Operational Design. Sampling design – How many?, In what manner? • Probability/Non Probability Sampling • Raw data Processing – Editing*Coding*Classification*Tabulation
  • 14.
    Marketing research analysis • Tools like SPSS, SSP • Multiple regression analysis • Regression analysis • Conjoint analysis( To decide on trade off’s) • Cluster Analysis • Factor analysis – Co-relation Matrix, Identify patterns • Discriminant Analysis • Correspondence Analysis
  • 15.
    MARKETING RESEARCH METHODS The Major concepts in demand measurement are MARKET DEMAND • Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined period of time in a defined marketing environment under a defined marketing programme…. COMPANY DEMAND • Company demand is the company’s estimated share of market demand at alternative levels of company’s marketing effort . One major reason for undertaking marketing research is to identify the market opportunities .Once the research is complete, the company must measure and forecast the size, growth and profit potential of each market opportunity
  • 16.
    NEW PRODUCT LAUNCH RESEARCH A Marketer to ensure product success uses the following guidelines :- 1, Distinguish the product from the competition in a consumer relevant way 2,Capitalise on key corporate competencies and brand strength 3,Develop and market product to people’s needs and habits 4,market to long-term trends 5,Not to ignore research, and not be paralyzed by it 6,Make sure the timing is right 7,Be a marketing leader and not a distant follower 8,offer a real value to customers 9,Determine a short-term product and long-term sales potential 10,Gain legitimacy and momentum for the brand 11,Give the trade as good a deal as the customer 12,Clearly define,understand,and talk to your target 13,Develop n communicate a distinctive n appealing brand character n stick to it 14,Spend competitively n efficiently ,behind a relevant proposition 15,make sure the consumer is satisfied n stays that way
  • 17.
    ADVERTISING RESEARCH Advertising researchis a subset of marketing research.it systematically gather n analyses information to help develop or evaluate advertising strategies , individual advertisements, or whole advertising campaigns . Advertiser needs to know how consumer perceive its products or service , what their views about the competition are and what image of the brand or the company would be most appropriate to build Advertising research is required to serve a number of purposes, which are grouped into four categories :  Advertising strategy research  Creative concept research  Pre-testing of advertisement  Post-testing ADVERTISING STRATEGY RESEARCH The strategy is developed by carefully blending the elements of the creative mix . The mix elements are : 1,Product n 3,Communication 4,creative 5,Pre-testing n its 2,Target audience media concept post-testing positioning
  • 18.
    CUSTOMER SATISFACTION RESEARCH Customer satisfaction research is that area of marketing research which focuses on customers' perceptions with their shopping or purchase experience. Many firms are interested in understanding what their customers thought about their shopping or purchase experience, because finding new customers is generally more costly and difficult than servicing existing or repeat customers. METHODS 1,Quantitative Research Studies 2,Qualitative Research Studies TYPE 1,Descriptive or documentary research 2,Inferential or models-based research
  • 19.
    RETAIL STORES IMAGERESEARCH The concept of store image was used by Martineau(1958) for the first time. He defined it as “a store defined in customers’ mind partly based on functional attributes and partly based on psychological attributes.” He claimed that store image includes its characteristic attributes and it makes customers feel the store different from others. Functional attributes are assortment of commodities, layout, location, price-value relation, and service that consumers can objectively compare with other stores. Psychological attributes are attractiveness and luxuriousness that represent special attributes of that store. Researchers have studied a multitude of retailer attributes that influence the overall image eg :- The variety n quality of product, service, n brands sold, the physical store appearance, behavior n service quality of employees , the price level, depth n frequency of promotions… DISTRIBUTION RESEARCH The study has been now divided into supply chain research n also on logistics research. In the case of supply chain, following are included for research 1,Alignment of market with the supply 10,Supply chain risk 2,linking demand chain and firm performance 11,Supply chain stategy 3,outsourcing 12,Service supply chains 4,Reverse logistics 13,Stock loss 5,supply chain agility 6,supply chain collaboration 8,supply chain information systems 9,supply chain risk and resilience
  • 20.
    COMPETITOR ANALYSIS RESEARCH The competitive intelligence is the legal n ethical process of collecting n analyzing information,converting it into intelligence n then using it to determine the capabilities,vulunerabilities,n intentions of the competition. There are 3 level @ which the research is undertaken 1, Feature level 2,Solution level 3,Hidden competition PREPARATION OF MARKETING RESEARCH REPORT The result of marketing is effectively communicated to the management .Presenting the result of a marketing result study to mgmt. generally involves a formal written reports as well as an oral presentation . The report n presentation are extremely important`. FIRST , bcoz the result of marketing research are often intangible n the written report is usually the only documentation of the project. SECOND, the written report n oral presentation are typically the only aspect of the study and the consequently the overall evalution of the research project rests on how well this info is communicated . THIRD, Since the written research report and the oral presentation are typically the responsibility of the supplier .
  • 21.
    UNDERSTAND THE RESULTAND DRAW CONCLUSIONS The following outline is the suggested format for writing research report :- • TITLE PAGE • SUMMARY OF FINDING • TABLE OF CONTENTS • LIST OF TABLES • LIST OF FIGURES • BACKGROUND TO THE RESEARCH PROBLEM • OBJECTIVES • HYPOTHESES • SAMPLE N SAMPLING METHOD • STATISTICAL OR QUALITATIVE METHODS • SAMPLE DESCRIPITION • RESULTS , INTERPRETATION AND CONCLUSION