This document discusses consumer behavior and marketing of financial products. It describes how consumer behavior involves when, why, how, and where people buy products and services. It outlines different types of customers like retail and corporate. Retail customers expect awareness, knowledge and a faithful relationship while corporate customers expect personalized services and long term financial support. Customer behavior is influenced by cultural, social, personal and psychological factors. Theories of consumer behavior are discussed like Maslow's hierarchy of needs and Pavlov's dog experiment. The diffusion process of adopting new products and ideas is explained. Challenges in marketing financial products include identifying changing customer expectations and increasing competition.

1. 1
Marketing of
Financial
Products
Lecture - 2
Parveen Sharma
1
MoFP for
TKW’s

2. 2
Contents
Consumer Behaviour
 Type of Customers
 Profile of Retail vs Corporate Customer
 Behaviour Influences
 Customer Behaviour Theories
 Diffusion Process
 Challenges
MoFP for
TKW’s
2

3. 3
 Consumer Behavior is the study of when, why, how and where people
do or do not buy products and services.
 Consumer Behavior is much more than buying things: it also
embraces the study about how having (or not having) things affect our
lives, and how our possessions influence the way we feel about
ourselves and about each other – our state of being.
NN
Consumer Behaviour
MoFP for
TKW’s

4. 4
 Retail Customers
 Institutional Customers
 Prospects
The difference between two is not only the purchasing/investment power
but also the type of financial instruments they invests in.
NN
Type of Customers
MoFP for
TKW’s

5. MoFP for
TKW’s
NN
Profile of Retail vs Corporate Customer
5
 Corporate Customer: Expect…
Smooth operation
Time honoured financial support on liberal terms
Personalized services
 Retail Customer: Expectations…
governed by emerging trends in income
governed by emerging trends in consumerism
for awareness & knowledge
for faithful relationship

6. MoFP for
TKW’s
NN
Behavioural Influences
6
 Cultural Factors
 Social Factors
 Personal Factors
 Psychological Factors
• Culture
– Forms a customers wants and
behavior
• Subculture
– Found within culture; Groups with
shared value systems
• Social class
– Groups having same social,
economic, or educational status in
society and with shared value
systems
India’s & Specially South India’s Gold love culture
successfully targeted by Reliance Gold Saving Scheme

7. MoFP for
TKW’s
NN
Behavioural Influences
7
Cultural Factors
Social Factors
 Personal Factors
 Psychological Factors
• Family &
• Family life cycle
• Purchase decision
• Opinion leaders
• Social class
People need different insurance products at
different life stages

8. MoFP for
TKW’s
NN
Behavioural Influences
8
Cultural Factors
Social Factors
 Personal Factors
 Psychological Factors
• Age group
• Life style
• Occupation
• Role model
• Economic circumstances
SBI marketing campaign
for salaried persons for
Tax Saving Investments

9. MoFP for
TKW’s
NN
Behavioural Influences
9
Cultural Factors
Social Factors
 Personal Factors
 Psychological Factors
• Motivation
• Perception
• Learning
• Attitude
Worthington National, a small Texas bank, capitalized
on people’s bad attitudes toward big banks that
accepted bailouts from the government in 2008–2009

10. NN
Customer Behaviour Theories
10
 Hierarchy of Needs by Maslow
MoFP for
TKW’s
Self
Actualization
Esteem Needs
(Self Esteem,
Status, Recognition)
Social Needs(Belonging &
Love)
Safety Needs(Freedom from worry)
Basic Needs
You connect best with prospective customers if you appeal to
their needs in a relevant, meaningful way
Post default of some debt paper the campaign
by Mirae Asset Mutual Fund which highlighted
Safety

11. NN
Customer Behaviour Theories
11
 Pavlov dog experiment
MoFP for
TKW’s
Offering a Cadbury 5 Star to investors for 5 Star
rating of funds
Application

12. MoFP for
TKW’s
NN
Consumer Behaviour Across Globe
12
Every market is different in several aspects, hence FI’s need to study
each market and consumer group very well so as to adjust their products
and marketing plans.
E.g.
In some countries it is improper to invest in companies engaged in smoking
products, wine and lending on high interest.
Shaking your head from side by side means ‘no’ in most countries but means
‘yes’ in Bulgaria.
In Italy and some countries it is improper to for a door to door sales person to call
on a woman if she is home alone.

13. 13
NN
13 MoFP for
TKW’s
Diffusion Process
 Time of Adoption for a product by different customers is not
identical
Diffusion is the process by which a new idea or new product is accepted
by the market

14. 14
NN
14 MoFP for
TKW’s
Adoption Process
 It is not only sufficient that we launch a new scheme rather it is much
more impact generating that customers adopt the same at earliest and
diffusion process is fast.
Awareness
Create Awareness
Evaluation
Evaluation of scheme
by
customers/prospects
Trail
Authentication of
scheme narrated
Adoption
Being satisfied by
motivational art and
campaign of FI

15. 15
NN
Challenges Ahead
15 MoFP for
TKW’s
 Identification of changing expectation of customer
 Mounting intensity of competition
 Multi-dimensional development in business environment
 Benchmarking of Indian service delivery standards to global
 Product and service innovation
 Increasing level of attention to anywhere & anytime services
 Increasing focus on Peripheral services
 Adoption of technology

16. 16 MoFP for
TKW’s
NN
? ueriesQ
16
Contact me @ +91-9050050288
or
Email to parveen_72@yahoo.in

17. 17
NN
Term for the Lecture
17 MoFP for
TKW’s
Islamic Banking & Financial Products

18. 18
Thank
You
MoFP for
TKW’s
18