Meaning<br /><ul><li>The term consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs
Consumer behavior focuses on how an Individual make decisions to spend their available resources( Time, money, effort) on Consumer related items that includes-</li></li></ul><li>Cont’d..<br /><ul><li>What they buy?
The impact of such evaluations on future purchases?
How they dispose it?</li></li></ul><li>Why Study Consumer Behavior?<br /><ul><li>To implement the Marketing Concept . . a plan to influence buyer – seller exchanges to meet organizational goals </li></ul>To understand complex influences on consumption processes <br />To increase a manager’s confidence to predict consumer responses to their marketing strategy<br />To avoid “the Self-Reference Criterion”<br />
SITUATIONAL INFLUENCES<br /><ul><li>Physical and
Problem Recognition-<br />The buying process starts when the buyer recognizes a problem or need triggered by internal or external stimuli<br />Internal stimulus- Hunger, Thirst, Safety<br />External stimulus- Neighbor's car<br />Marketers need to identify the circumstances that trigger their interest and formulate strategies accordingly<br />
Successive sets involved in consumer Decision making<br />
Evaluation of alternatives<br />Some basic concepts will help us understand consumer evaluation processes<br />First, the consumer is trying to satisfy a need.<br />Second, the consumer is looking for certain benefits from the product solution<br />Third, The consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits sought to satisfy this need.<br />For example- <br />Hotels- Location, Cleanliness, atmosphere, pice<br />
Purchase decision<br />A consumer's decision to purchase something includes where to buy, when to buy and whether to buy. <br />For routine goods such as groceries, consumers may simply go to their favorite grocery store, but for electronic purchases, they may browse multiple stores. <br />They will evaluate each merchant based on prior experience with the store, special offers and whether they can return the product easily.<br /> A store that's visually appealing, has helpful sales associates and offers specials and discounts influences a buyer. <br />
Post purchase behavior<br /> After making a purchase, a consumer mentally ranks her purchase satisfaction. She will evaluate if she liked the product, if she enjoys the product and the quality of the product.<br /> This evaluation determines whether the customer will purchase the product or brand again and whether it would be from the same store. <br />Customers who are happy with their purchases and feel they received a quality product at a good price, will become repeat customers and will tell others about their experience. <br />
Post Purchase satisfaction-<br /> Satisfaction is a function of the Closeness between expectation and the perceived performance<br /> Performance<Expectation Disappointed<br /> Performance= Expectation Satisfied<br /> Performance> Expectation Delight<br />Post Purchase Action-<br />If satisfied- <br />Likely to purchase the product again<br />Say good words about the product<br />If Dissatisfied- <br />Abandon , Complaint, Case filing<br />
Models of consumer behavior <br />An Economic view- <br />Consumers are characterized as rational thinkers<br />To behave rationally they have to <br />Be aware of all the products alternatives<br />Be capable of correctly ranking the alternatives in terms of benefits and disadvantages<br />Be able to identify the best alternative<br />Theory is unrealistic in following Grounds-<br />People are limited in their skills and knowledge<br />People are limited by their existing goals and values<br />
A Passive view-<br />Consumers are perceived as impulsive and Irrational buyers<br />Regard consumers as an object which can be manipulated to serve the interest of marketers<br />Limitation- <br />Fails to recognize that the consumers play an equally important role in buying situation<br />
A cognitive View- <br />Portrays the consumer as a thinking problem solver<br />Consumer frequently pictured as either receptive to or actively searching for product and services that fulfill their needs and enrich their lives<br />It focuses on process by which consumer seeks and evaluate information about the selected brands and retail outlets( Information processors)<br />Consumers often develop shortcut decision rules called Heuristics<br />
An Emotional view<br />Various feeling that guide the purchase decision of the consumers<br />Less Emphasis is placed on the search of the pre-purchase information . Instead more emphasis is placed on the current mood and feelings<br />Consumers mood are also important in decision making because it impacts on when to shop , where they shop, whether in shop individually or in group<br />