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Marketing management: CONSUMER BEHAVIOUR.ppt
- 2. Shopper, Buyer, andConsumer • People do not buy products, they buy benefits (Practical / Unusual) • Shoppers go into the marketplace through various means; they can be “just looking” or purposeful • Buyers complete the exchange transaction • The shopper is often the buyer, but not always • Consumers actually use or possess that which is “purchased” 2
- 3. Shopper, Buyer, andConsumer • “Influencers” exert various levels of power over the choices a person makes in certain product categories. • Different types of people seek different benefits. • A watch (Student vs Gift) • The marketplace is anywhere that a transaction can be completed. 3
- 4. Consumer Behaviour……..what is it? Allsuch activities done by a consumer, while obtaining , consuming and disposing of products and services. This includes the decision making processes that precede and follow such actions. 4
- 5. Subject draws itsconcepts from: Psychology Sociology Anthropology Economics Marketing 5
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- 7. Why study ConsumerBehavior? Consumers ‘evolve’ with time, learning, exposure and experience. They cannot be taken for granted. e.g. People booked their railway tickets from the station counters, now they prefer online purchase thru website. As a consequence, a sound understanding of consumer behavior is a pre-requisite for sustained success of any marketing program 7
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- 10. Occupants Who buys,Who constitutes the market? 10
- 11. Objects What doesthe market buy? 11
- 12. Objectives Why does themarket buy? 12
- 13. Occasions When doesthe market buy? Depends on usage occasions Urgency of Need Regular/occasional use Special occasions Big sale Impluse 13
- 14. Outlets Where doesthe market buy? Mom-and-pop Stores. These are small family-owned businesses, which sell a small collection of goods to the customers. ... Department stores. Department stores are general merchandisers. ... Category Killers. ... Malls. ... Discount Stores. ... Supermarkets. ... Street vendors. ... Hypermarkets. 14
- 15. Operations How doesthe market buy? 15
- 16. Organizations Who participatesin buying? 1. Initiators 2. Users 3. Buyers 4. Influencers 5. Deciders 6. Approvers 7. Gate Keepers. 16
- 17. 17 The Consumer Decision-MakingProcess • Consumer decision models describe the processes consumers go through before, during, and after making a purchase.
- 18. 18 Consumer Decision-Making Process Postpurchase Behavior Purchase Evaluation of Alternatives InformationSearch Need Recognition Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological Factors Factors affect affect all steps all steps
- 19. 19 •How do weknow when to shop or buy a product/service? •What are the triggers that initiate an awareness & search? •What are the internal & external sources of such triggers?
- 20. 20 • When thecurrent product/service is not satisfying the need When the consumer is running out of an product/service • When another product/service seems superior to the one currently being used • Changes in employment status • Changes in Lifestyle • Introduction of New products • Related products Simple or complex
- 21. 21 DEGREE OF DISCREPANCY DESIRED STATE ACTUAL STATE BELOW THRESHOLD AT ORABOVE THRESHOLD NO NEED RECOGNITION NEED RECOGNITION
- 22. 22 Internal search involvesthe scanning of one's memory to recall previous experiences or knowledge concerning solutions to the problem/satisfying need. Generally done for frequently purchased products/low involvement products/services . External search may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering information is low. Generally done for high involvement products
- 23. 23 •Family, friends, neighbors •Mostinfluential 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
- 24. 24 Product Attributes Evaluation ofQuality, 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.
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- 26. 26 Degree of Importance LG SAMSUNGVIDEOCON SONY 5 Brand Name 4 4 2 5 4 Picture Quality 4 4 2 5 3 Looks/Design 5 5 3 4 2 Price 3 4 5 2 1 After Sales Service 5 5 3 2 LG 4x5 + 4x4 + 5x3 + 3x2 + 5x1 = 62 SAMSUNG 4x5 + 4x4 + 5x3 + 4x2 + 5x1 = 64 VIDEOCON 2x5 + 2x4 + 3x3 + 5x2 + 3x1 = 40 SONY 5x5 + 5x4 + 4x3 + 2x2 + 2x1 = 63 Choosing a Brand on the basis of degree of importance of the determinant attributes
- 27. 27 Purchase Intention Desire tobuy the most preferred brand Purchase Decision Attitudes of others Unexpected situational factors
- 28. 28 Two Types ofOutcomes Are Possible •Positive evaluation leads to satisfaction; negative evaluation leads to dissatisfaction. • Dissonance is the feeling of uncertainty that you’ve made the right choice. • If consumers are satisfied with a purchase, they may become “loyal”.
- 29. 29 Consumer’s Expectations of Product’sPerformance Dissatisfied Customer Satisfied Customer! Product’s Perceived Performance Cognitive Dissonance
- 30. 30 Model of ConsumerBehavior 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
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