Downloaded 10 times
More Related Content
Similar to Consumer Behaviour- Factors influencing CB.ppt
Consumer Behaviour- Factors influencing CB.ppt
- 1.
- 2. A model ofconsumer behaviour – the 7 O’s framework • Who constitute the market? • What does the market buy? • Why does the market buy? • Who participates in buying? • How does the market buy? • When does the market buy? • Where does the market buy?
- 3. • Occupants • Objects •Objectives • Organizations • Operations • Occasions • Outlets
- 4. Consumer Buying Behavior •Consumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption. • Study consumer behavior to answer: “How do consumers respond to marketing efforts the company might use?”
- 5. Model of ConsumerBuying Behavior Marketing and Other Stimuli Buyer’s Black Box Buyer’s Response Product Price Place Promotion Economic Technological Political Cultural Characteristics Affecting Consumer Behavior Buyer’s Decision Process Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount
- 6.
- 7. Factors Affecting ConsumerBehavior: Cultural Social Class • People within a social class tend to exhibit similar buying behavior. • Occupation • Income • Education • Wealth • Most fundamental determinant of a person’s wants and behaviour. • Values, Perceptions, Preferences and Behaviour. Subculture • Groups of people with shared value systems based on common life experiences.
- 8. Culture, Subculture and SocialClass Values achievement & Success, Efficiency & practicality, freedom, progress, material comfort vs. respect and care for elders, honesty & integrity, hard work, achievement & success, sacrifice. Subculture provides more specific identification and socialization for its members. It includes nationalities, religions, racial groups and geographical regions. Social class are relatively homogenous and enduring divisions in a society, which are hierarchially ordered and whose members share similar values, interests and behaviour.
- 9. Social Class- characteristics •Tend to behave more alike than persons from two different social classes • Differ in dress, speech patterns, recreational preferences • Persons are perceived as occupying inferior or superior positions. • Social class is indicated bya cluster of variables- for eg. Occupation, income, wealth, education etc. • Individuals can move up or down the social- class ladder during their lifetime.
- 10. Factors Affecting ConsumerBehavior: Social Reference Groups •Membership •Reference Family •Husband, wife, kids •Influencer, buyer, user Roles and Status Social Factors
- 11. • A personsreference groups consist of all the groups that have a direct or indirect influence on the persons attitudes or behaviours. Groups having a direct influence on a person are called membership group. • Primary group vs. secondary group. • Aspirational vs. dissociative groups. • Opinion leader
- 12. • FAMILY :family of orientation and family of procreation • Roles and Status: – Role consist of the activities a person is expected to perform. – Each role carries a status.
- 13. Factors Affecting ConsumerBehavior: Personal Personal Influences Age and Family Life Cycle Stage Occupation Economic Situation Lifestyle Identification Activities Opinions Interests Personality & Self-Concept
- 14. Cultural • Culture: theset of basic values, perceptions, wants and behaviour learned by a member of society from family and other important institutions. • Achievement and success, efficiency and practicality, material comfort, individualism, progress, fitness and health, activity and involvement etc.
- 15. Cultural contd… • Subculture:a group of people with shared value systems based on common life experience and situations. • Nationalities, religions, racial groups and geographic regions.
- 16. Cultural contd… • SocialClass: relatively permanent and ordered divisions in a society whose member share similar values, interests and behaviour.
- 17. Characteristics of socialclass • Persons within social class tend to behave more alike than persons from two different social class • Persons are perceived as occupying inferior or superior positions according to their social class. • Social class is not determined by a single factor such as income but is measured as a combination of occupation, income, education and wealth. • Individuals can move from one social class to another-up or down during their lifetime. • The social class may differ in their media preferences.
- 18. Upper Class Upper Uppers LowerUppers Middle Class Upper Middles Middle Class Working Class Working Class Lower Class Upper Lowers Lower Lower INCOME OCCUPATION EDUCATION WEALTH
- 19. Social Factors • Referencegroups: a person’s reference groups consist of all the groups that have a direct (face to face) or indirect influence on the person’s attitudes or behaviour. Groups having a direct influence on a person are called Membership Groups. • Primary groups: family, friends, neighbours • Secondary groups: religious, professional • Aspiration group • Dissociative group • Opinion leader
- 20. Social Factors… Family • Familyof orientation • Family of procreation
- 21. Social Factors contd… •Roles and Status: a role consist of the activities that a person is expected to perform according to the persons around them. Each role carries a status reflecting the general esteem given to it by the society.
- 22. Personal Factors • Occupation •Economic Situation • Lifestyle: a person’s pattern of living as expressed in his or her activities, interest and opinions • Personality and Self-Concept: the unique psychological characteristic that lead to relatively consistent and lasting responses to one’s own environment. • Age and Life-cycle stage
- 23. Family Life cycle& Behavioural pattern Stage Behavioural pattern Buying pattern Bachelor Few financial burden, fashion opinion leaders, recreation oriented Basic kitchen equipment, basic furniture, cars, games, vacations Newly married Better off financially than in near future. Highest purchase rate Cars, refrigerators, stoves, sensible and durable furniture's, vacations Full nest I Home purchasing at peak. Liquid assets low. Dissatisfied with financial position & saving. Interested in new products. Influenced by advertising. Washers, dryers, TV, baby food, medicines, vitamins, Full nest II Better financial positions. Variety of foods,
- 24. Family Life cycle& Behavioural pattern Stage Behavioural pattern Buying pattern Full Nest III Better financial positions. Some children gets jobs. Hard to influence with advertising. New tasteful furniture, unnecessary appliances, magazines Empty Nest I Most satisfied with financial position. Home ownership at peak. Make gifts and contributions. Not interested in new products. Travel, recreation, self- education, luxuries, home improvements. Empty Nest II Drastic cut in income, keep home. Medical appliances, medical care products that aid health, sleep and digestion Solitary survivor Income good but likely to sell home Medical products
- 25. VALS 2 Principle OrientedStatus Oriented Action Oriented Achievers Actualizers Strugglers Strivers Fulfilleds Believers Experiencers Makers Abundant Resources Minimal Resources
- 26. Factors Affecting ConsumerBehavior: Psychological Psychological Factors Motivation Perception Learning Beliefs and Attitudes
- 27. Maslow’s Hierarchy ofNeeds Esteem Needs (self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) Self Actualization (Self-development)
- 28. Types of BuyingDecisions 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
- 29. • Hi involvementin a purchase and aware of significant differences among brands. • Product is expensive, bought infrequently, risky and highly self-expressive. • The marketer needs to develop strategies that assist the buyer in learning about the products attribute and their relative importance. • The marketer needs to differentiate the brand feature and use print media to describe the brands benefits and motivate store sales person. Complex Buying Behavior
- 30. • High involvementin purchase but sees little difference in the brands. • the consumer might experience dissonance that stems from noticing certain disquieting features or hearing favorable things about other product. • Thus marketing communications should aim at supplying beliefs and evaluations that help the consumer feel good about his or her brand choice. Dissonance-Reducing Buying Behavior
- 31. Five-Stage Model ofthe Consumer Buying Process Problem Recognition Information Search Evaluation Of Alternatives Post purchase Behaviour Purchase Decision
- 32. The Buyer DecisionProcess Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior
- 33. The Buyer DecisionProcess Step 1. Need Recognition 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
- 34. The Buyer DecisionProcess Step 2. Information Search •Family, friends, neighbors •Most influential source of information •Advertising, salespeople •Receives 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
- 35. The Buyer DecisionProcess Step 3. Evaluation of Alternatives Product Attributes Evaluation of Quality, Price, & Features Degree of Importance Which attributes matter 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.
- 36. The Buyer DecisionProcess Step 4. Purchase Decision Purchase Intention Desire to buy the most preferred brand Purchase Decision Attitudes of others Unexpected situational factors
- 37. The Buyer DecisionProcess Step 5. Postpurchase Behavior Consumer’s Expectations of Product’s Performance Dissatisfied Customer Satisfied Customer! Product’s Perceived Performance Cognitive Dissonance
- 38. Stages in theAdoption Process Awareness Interest Evaluation Trial Adoption
- 39. Adoption of Innovations Percentage of Adopters Timeof Adoption Early Late Innovators Early Adopters Early Majority 2.5% 13.5% 34% 34% 16% Laggards Late Majority
- 40. Influences on theRate of Adoption of New Products Divisibility Can the innovation be used on a trial basis? Compatibility Does the innovation fit the values and experience of the target market? Complexity Is the innovation difficult to understand or use? Relative Advantage Is the innovation superior to existing products? Communicability Can results be easily observed or described to others? Product Characteristics