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Consumer behvoiur
This document provides an overview of consumer behavior. It defines consumer behavior as how consumers search for, purchase, use, and dispose of products and services. It discusses personal consumers who buy for individual use and organizational consumers who buy for business use. It outlines factors that influence consumer behavior such as cultural, social, personal, and psychological factors. It describes concepts like motivation, perception, attitudes, and learning that impact consumer decisions. The document emphasizes that understanding consumer behavior is crucial for marketers to provide value, satisfy customers, effectively target audiences, and enhance company value.
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Consumer behvoiur
- 1. Consumer Behavior By Prof.Rajeev Kumar The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
- 2. Personal Consumer The individualwho buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend.
- 3. Organizational Consumer A business,government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.
- 4. FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR ‡ Cultural factors: Culture Sub- Culture eg: Kellogg͛s
- 5. SOCIAL CLASS ‡ Upper Class ‡ Upper Middle Class ‡ Middle Class ‡ Lower Class
- 6. SOCIAL FACTORS ‡ Social Groups ‡ Colleagues at work ‡ Consumer Action Groups ‡ Reference Groups ‡ Family
- 7. PERSONAL FACTORS ‡ Ageand Life Cycle stage ‡ Occupation and Financial status ‡ Life-style
- 8. PSYCHOLOGICAL FACTORS ‡ MOTIVATION ‡ PERCEPTION ‡ ATTITUDE ‡ LEARNING
- 9. Needs and Motivation ‡Needs are the essence of the marketing concept. ‡ Motivation is the driving force within individuals that impels them to action. Copyright 2007 by Prentice Hall
- 10. Consumer Motivation ‡ Representsthe drive to satisfy both psychological and physiological needs through product purchase and consumption. ‡ gives insights into why people buy certain products. ‡ stems from consumer needs: industries have been built around basic human needs.
- 11. Types of ConsumerNeeds ‡ Physiological needs- Fundamental human needs, including food, water and shelter ‡ Safety and Health needs- Threats to our safety and health motive purchases for personal security and protection.
- 12. ‡ Safety andHealth needs Protecting our personal information and computers represents new types of safety needs. Businesses provide a variety of products and services to appeal to safety and health conscious consumers.
- 13. Safety and HealthNeeds
- 14. Motivational conflicts andneed priorities ‡ satisfying a need often comes at the expense of another need- this causes motivational conflicts.
- 15. Maslow͛s Hierarchy ofNeeds Figure 4.10 weblink
- 16. Figure 4.1 Modelof the Motivation Process
- 17. Figure 4-2a Goals Structurefor Weight Control
- 18. The Dynamic Natureof Motivation ‡ Needs are never fully satisfied ‡ New needs emerge as old needs are satisfied ‡ People who achieve their goals set new and higher goals for themselves
- 19. This ad reflects a need for accomplishment with a toothpaste.
- 20.
- 21. PERCEPTIONS ‡ The processby which an individual selects, organizes and interprets stimuli into meaningful thoughts and pictures. (Customers perceive their environment through the sense of touch, smell, taste, hearing, etc.
- 22. BELIEFS AND ATTITUDE ‡A belief is a descriptive image or thought that an individual holds about something. ‡ A person͛s attitude is a set of his feelings and the way in which he reacts to a given idea or thought.
- 23. LEARNING ‡ Consumer learningis a process which evolves and changes as a result of newly acquired knowledge or experience
- 24. Consumer Organizational Influences Influences Obtaining Consuming Disposing Consumer Behavior
- 25. Consumer Organizational Influences Influences Culture Brand Ethnicity Product Features Personality Advertising Family Word of Mouth Life-stage Promotions Values Retail Displays Income Price Available Resources Quality Attitudes Service Opinions Store Ambiance Feelings Convenience Motivations Loyalty Programs Past Experiences Packaging Peer Groups Product Availability Knowledge
- 26. Consumer Organizational Influences Influences Obtaining Consuming Disposing Consumer Behavior
- 27. CONSUMER INFLUENCES ORGANIZATIONAL INFLUENCES Culture Ethnicity Brand Product Features Personality Family Advertising Word of Mouth Life-stage Values Promotions Retail Displays Income Available Resources Price Quality Attitudes Opinions Service Store Ambiance Motivations Past Experiences Convenience Loyalty Programs Feelings Peer Groups Packaging Product Availability Knowledge OBTAINING CONSUMING DISPOSING yHow you decide you yHow you use the product yHow you get rid of want yHow you store the remaining product to buy product yHow much you throw yOther products you in your home away after use consider buying yWho uses the product yIf you resell items yWhere you buy yHow much you consume yourself yHow you pay for yHow product compares or through a product with consignment yHow you transport expectations store product home yHow you recycle some products Consumer Behavior
- 28. Customers? ‡ Who areour existing / potential customers? ‡ What are their current / future needs? ‡ How can we satisfy these needs? ‡ Can we offer a product/ service that the customer would value? ‡ Can we communicate with our customers? ‡ Can we deliver a competitive product of service? ‡ Why should customers buy from us?
- 29. Becoming a Winner : A Three Dimensional Approach Efficiency Ladder Ability to Focus ( Specialization Ladder ) Ability To Achieve Lower cost Ability to Delight Customers ( Market Orientation - Learning Ladder )
- 30. Successful Relationships Customer Customer Value Retention Customer Satisfaction
- 31. Successful Relationships Value, Satisfaction,and Retention ‡ Defined as the ratio between the ‡ Customer Value customer͛s perceived benefits ‡ Customer and the resources used to obtain Satisfaction those benefits ‡ Customer ‡ Perceived value is relative and subjective Retention ‡ Developing a value proposition is critical
- 32. Successful Relationships Value, Satisfaction,and Retention ‡ Customer ‡ The individual's perception of the performance of the product or service Value in relation to his or her expectations. ‡ Customer ‡ Customers identified based on loyalty Satisfaction include loyalists, apostles, defectors, ‡ Customer terrorists, hostages, and mercenaries Retention
- 33. Successful Relationships Value, Satisfaction,and Retention ‡ The objective of providing value is to ‡ Customer Value retain highly satisfied customers. ‡ Customer ‡ Loyal customers are key Satisfaction ± They buy more products ‡ Customer ± They are less price sensitive Retention ± They pay less attention to competitors͛ advertising ± Servicing them is cheaper ± They spread positive word of mouth
- 34. Customer Profitability-Focused Marketing ‡Tracks costs and revenues of individual consumers ‡ Categorizes them into tiers based on consumption behavior ‡ A customer pyramid groups customers into four tiers
- 35. Customer Profitability-Focused Marketing Tier 1: Platinum Tier 2: Gold Tier 3: Iron Tier 4: Lead
- 36. Traditional Marketing ConceptVs. Value and Retention Focused Marketing Table 1-2 Traditional Marketing Value and Retention Concept Focused Marketing Make only what you can sell instead Use technology that enables of trying to sell what you make customers to customize what you make Do not focus on the product; focus on Focus on the product¶s the need that it satisfies perceived value, as well as the need that it satisfies Market products and services that Utilize an understanding of match customers¶ needs better than customer needs to develop competitors¶ offerings offerings that customers perceive as more valuable than competitors¶ offerings
- 37. Why Study ConsumerBehavior? "All marketing decisions are based on assumptions and knowledge of consumer behaviour," (Hawkins and Mothersbaugh, 2007). Researching consumer behaviour is a complex process, but understanding consumer behaviour is critical to marketers-they can use it to:
- 38. Provide value andcustomer satisfaction. Effectively target customers. Enhance the value of the company. Improve products and services. Create a competitive advantage Understand how customers view their products versus their competitors' products. Expand the knowledge base in the field of marketing, Apply marketing strategies toward a positive effect on society (encourage people to support charities, promote healthy habits, reduce drug use etc.)
- 39.
- 40. Educating Consumers AboutHealth Understanding consumers¶ issues or problems and developing methods to reach and educate consumers
- 41. Educating Consumers AboutHealth Understanding consumers¶ issues or problems and developing methods to reach and educate consumers
- 42. Evolution of ConsumerBehavior Consumers¶ Increasing Influence Wholesaler Manufacturer Retailer Consumer Manufacturing Selling Marketing Consumer Orientation Orientation Orientation Orientation U.S. 1750-1850 1850-WWII 1970-2000 2000+ Europe 1750-1850 1760-WWII 1970-2000 2000+
- 43. Consumer Behavior IsInterdisciplinary ‡ Psychology ‡ Sociology ‡ Social psychology ‡ Anthropology ‡ Economics
- 44. A Simplified Modelof Consumer Decision Making ʹ Figure 1-1
- 45. The Underlying Principlesof Consumer Behavior The Consumer Is Sovereign The Consumer Is Global Consumers Are Different; Consumers Are Alike