Unit 6 consumer behavior

1. Marketing
Management
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Marketing Management
Unit 1 – Marketing Concepts
Unit 4 – Physical Distribution Decision
Unit 2 – Product Decision
Unit 3 – Price Decision
Unit 5 – Promotion Decision
Unit 6 – Consumer Behavior

3. Meaning & Definition
Nature & Scope of Marketing
Importance of Marketing Management
Marketing orientation / Concepts
Functions of Marketing
 Marketing Mix – 7 P’s
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Unit 1 – Marketing Concepts

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Unit 2 – Product Decision
 Why New product fails
 Branding Functions
 Types of Branding labeling

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Unit 3 – Pricing Decision
 Concepts of Price
 Factors affecting Price determination
 Pricing Policies
 Types of Price

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Unit 4 – Physical Distribution Decision
 Meaning
 Functions & Types of Channels of
Distribution
 Channel Intermediaries
 Channel Management Decisions
 Retailing & Wholesaling

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Unit 5 – Promotion Decision
 Concepts of Promotion
 Promotion Mix
1. Advertising
2. Types of Advertising
3. Personal Selling
4. Sales Promotion & its types
5. Publicity
6. Public relations

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Unit 6 – Consumer Behavior
 Concepts
 Factors influencing in Consumer Buying Behavior
AIDAS formula in consumer adoption process

9. In this era of competition,
understanding the consumer is
a necessity for marketers.
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10. Consumer Market
Consists of all the individuals
and households who buy or
acquire goods & services for
personal consumption.
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1.Consumer behavior or Buyer behavior is
The study of consumers &
how they make decisions, &
it includes factors that influence the
purchase and use of products.
– Understand consumers and their buying
behaviors is very important for the marketers.
– Implement the marketing concept.

12. Consumer behavior
• What they buy?
• Why they buy it?
• When they buy it?
• Where they buy it from?
• How often they buy it?
Marketers focuses on how individuals make decisions
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13. “Consumer Behavior”
deals with two different
The Household Consumer
(Personal Consumer)
The Organizational Consumer
(Business or Industrial consumer)
Categories
of
Consumers
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14. Household Consumer
• Buys Goods & Services for their
own personal use, Family
for the use of the household.
who are referred to as end users.
• Examples: You and I purchasing everyday materials
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15. Organizational Consumer
• Buys Goods & Services to
Produce other goods and services
For resale or
Run their organization.
– Example: Car manufacturers buy steel, build cars, and
then sell them.
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16. Organizational Buying Vs Household Buying
More time spent on purchasing
process
Less time spent on purchasing
processes
Organizational buyers are few in
numbers (Concentrated)
Large no of consumer buyers
(Scattered)
Quantity of purchase is more
(Larger)
Quantity of purchase is
comparatively low (Smaller)
Segmentation on
Geographic, Demographic &
Psychographic
Segmentation on purchasing
approach, Situational factors
Product promotion is through
personal selling
Product promotion is through
Advertisement
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17. 3.Types of Buying Behavior
There are THREE Types of Decision-making:
Routine Decision
Limited Decision
Extension Decision
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18. Types of Buying Behavior
• Routine Decision:
Purchases are made frequently and do not
require much thought.
– Examples? chewing gum, newspaper
– In business companies usually use the same supplier for
all routine purchases
(ex. office supplies).18

19. Types of Buying Behavior
• Limited Decision:
Limited decision-making takes more time than routine decision-making.
This usually involves more expensive purchases or less
frequent purchases.
– More expensive, less frequent purchases
• Pair of jeans
– Businesses can use this for purchases of office
equipment or furniture etc…
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20. Types of Buying Behavior
• Extension Decision:
• Happens when the consumer methodically goes
through the decision-making process.
– Usually for Expensive purchases (Car, Home)
– Consumers take time to come to the correct
conclusion.
– In business this could take place when purchasing a
company vehicle. 20

21. 4. Factors Influencing
Consumer Behavior
1. Cultural Factor
2. Social Factor
3. Personal Factor
4. Psychological Factor
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22. Factors Influencing Consumer
Behavior
1. Cultural Factor:
Culture
Sub Culture
Social Classes.
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23. Factors Influencing Consumer Behavior
Culture
Person grows up in society, he learns a basic set
of values, preferences & behavior by a
Member of society,
Family & Institutions.
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24. Factors Influencing Consumer
Behavior
• Sub Culture
Nationality groups,
Religious groups,
Tribal groups,
Geographical areas
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Distinct
characteristics
of life style

25. Factors Influencing Consumer Behavior
Social Classes.
Like Upper class,
Middle class,
Lower class.
Occupation,
Income,
Education etc
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26. Factors Influencing Consumer
Behavior
2. Social Factor
i) Groups
ii) Family
iii) Roles and status
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27. Family Influence on Buying
Behavior
• Husband-Dominant
• Wife-Dominant
• Equal
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28. Factors Influencing Consumer
Behavior
3. Personal Factor
i) Age and life cycle stage
ii) Occupation
iii) Economic situation
IV) Life Style Activities (Work, hobbies, shopping, etc)
Interest (Food, fashion, family recreation) and
Opinions (about themselves, Business, Products)
V) Personality. Extroversion – Introversion
Self-confidence, Dominance, sociability, Aggressiveness 28

29. Stages in Family Life-Cycle
1. Single
2. Newly Married Couples
3. Full Nest I
4. Full Nest II
5. Full Nest III
6. Empty Nest II
7. Solitary Survivor
8. Solitary Survivor, Retired
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30. 4. Psychological Factors
i) Motivation
ii) Perception
iii) Learning
iv) Beliefs and attitudes
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31. Psychological Factors
Motivation:
–Maslow
• Hierarchy of Needs
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32. Maslow’s Hierarchy of Needs
PSYCHOLOGICAL NEEDS
Basic Life Needs - Air, Food, Drink, Shelter, clothing, etc.
SAFETY NEEDS
Protection, Insurance plan , Pension scheme, etc
ESTEEM NEEDS
Achievement, Status, Responsibility, Recognition
SELF-ACTUALIZATION
Personal Growth and Fulfillment
Social Needs
Family, Affection, Relationships, Work Group, etc
Existence Needs
Relatedness
Needs
Growth Needs
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33. Psychological Factors
• Learning
–Changes in an individual’s behavior arising
form experience
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34. Psychological Factors
• Learning
–Changes in an individual’s behavior arising
form experience
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35. Psychological Factors
• Beliefs
– Descriptive thoughts that a person holds about
something
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36. Psychological Factors
• Attitudes
– Enduring favorable or unfavorable cognitive
evaluations emotional feelings and action tendencies
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37. AIDAS formula
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38. AIDAS formula
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A – Attention (awareness):
Attract the attention of the customer towards the
message in the content. The first
step towards any piece of content is to capture
attention. Content Creators start with a concept
deeply relevant and timely to the audience. The
content solves a problem, explains a solution or
simply generates expectation.
I – Interest:
Interest of the customer with a relevant copy.
Once the attention is grabbed, the content should
provide the consumer with Value, in a way that
the user can understand and empathize.

39. AIDAS formula
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D – Desire:
Convince customers, with the content,
that they want and desire the product or
service in discussion to satisfy their
needs. In this step, the customer knows
what he needs, and probably is evaluating
different options.
A – Action:
Lead customers towards taking action.
Once the content generated desire, it
must provide means to quickly convert the
consumer.

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