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WHAT IS CONSUMER BEHAVIOUR?
Consumer Behaviour can be defined as the sum total of how
individuals and groups recognize and determine their needs
and how they purchase and experience goods and services to
meet those needs.
It includes:-
What
Where
Why
When
How
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Marketing Strategy
Marketing Strategy is basically the answer to the question,
How will we provide superior customer value to our target
customer?
Product
Price
Communication
Distribution
Service
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Role of Consumer Behaviour in Marketing Strategy
Marketing strategy
Design, implementation, and control of a plan to influence
exchanges to achieve organizational objectives
5. Design
In consumer markets, these are designed to
Increase chances of favorable thoughts and feelings of particular
products, services and brands among consumers
Increase chances of trial and purchase
Developed by manufacturers, retail stores, and other direct
marketers to
Increase chances of favorable thoughts and feelings among
consumers about purchasing from them
Increase chances of actual purchase
Developed by companies that make funds available for purchase
to
Increase chances of usage of services offered by consumers
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6. Implementation
Marketing strategies involve developing and presenting
marketing stimuli directed at selected target markets to
influence
What they think
How they feel
What they do
Essence of marketing strategy is to understand markets,
develop and implement superior strategies to attract and hold
them profitably
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7. Powerful force on consumers and society at large
The power of marketing and the ability of consumer research and
analysis to yield insight into consumer behavior should not be
discounted or misused
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8. Consumer Perception
According to S.P. Robbins: Perception may be defined as a process by
which individuals organise and interpret their sensory impressions in order
to give meaning to their environment.
According to Joseph Reitz, “Perception includes all those processes by
which an individual receives information about his environment- seeing,
hearing, feeling, tasting and smelling”
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9. FACTORS IFLUENCING PERCEPTION
Factors in Perceiver (Internal Factors)
a. Needs and Motives
b. Self-concepts
c. Beliefs
d. Past Experience
e. Current Psychological State
f. Expectations
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10. Factors in the Target or Perceived (External Factors)
a. Size
b. Intensity
c. Frequency
d. Status
e. Contrast
Factors in The Situation
a. Physical Setting
b. Social Setting
c. Organizational Setting
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11. Elements of Perception
Sensation
When a person is exposed to any of the marketing stimuli or an ad, the first reflex is
initiate in him is known as sensation.
Example: when a person come across a beautiful ad of a Mercedes Benz on the
centre spread of a magazine.
Absolute Threshold
the absolute threshold is the amount of intensity needed to detect a difference
between something and nothing.
Example: Suppose you are driving on the highway and a billboard is in the
distance. A billboard might have the most entertaining copy ever written, but this
genius is wasted if the print is too small for passing motorists to see it from the
highway.
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12. Differential Threshold/ JND
The minimal difference that can be detected between two similar stimuli is called
the differential threshold or the Just Noticeable Difference.
Example: Hindustan Unilever increases the price of a 1.5kg package of Surf Excel
Blue Detergent from Rs. 110 to Rs. 120.
Subliminal Perception
Suppose a person sitting at a movie and is exposed to messages like Eat popcorn
and Drink Coke. However, each message is shown on the screen for only a fraction
of a second, so short a time that you are not consciously aware of them.
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13. Influence of Perception on CBB
Selective Distortion:
It is changing or twisting currently received information. It occurs when a person
receives information inconsistent with personal feelings or beliefs.
Selective Retention:
In this, a person remembers information inputs that support personal feelings and
beliefs and forgets inputs that do not.
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14. CONSUMER LEARNING
According to E. R. Hilgard, Learning is a relatively permanent change in behaviour
that occurs as a result of prior experience.
The process of acquiring the ability to respond adequately to a situation which may
or may not have been previously encountered.
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16. THEORIES OF CONSUMER LEARNING
Behavioural/ Connectionist learning Theory
Classical Conditioning: Ivan Pavlov A Russian Physiologist Experiment
Operant Conditioning: In which desired voluntary behaviour leads to a reward or
prevents puishments
Cognitive Learning Theory
The importance of perception, problem solving and insight
Social Learning Theory
Learning comes from watching models- presents, teachers, peers, motion pictures,
television performers, bosses. An extension of operant consequences
Involvement Theory
importance of sort of things in his or her life.
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17. INFLUENCE OF LEARNING ON CB
Recognition and Recall
Cognitive Responses to Advertising
Attitudinal and Behaviuoral Measures Brand Loyalty
Brand Equity
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18. INFORMATION PROCESSING
Just as a computer processes information received as input, so too does the
human mind process the information it receives as input.
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19. INFORMATION PROCESSING AND MEMORY STORES
Sensory Store
Short-Term Store
Long-Term Store
Rehearsal and Encoding
Retention
Retrieval
Interferences
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20. CONSUMER MOTIVATION
According to Dalton E. Mcfarland, Motivation refers to the way in which urges,
drives, desires, aspirations, and striving or needs direct, control or explain the
behaviour of human beings.
Key elements:
Intensity
Direction
persistance
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21. Motives
According to William J. Stanton, A motive may be defined as a drive or an urge for
which an individual seeks satisfaction.
According to Berelson and Steiner, A motive is the inner state that energizes
activities or moves and that directs or channels behaviour to work goals.
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22. MASLOW’S NEED PRIORITY MODEL/
MASLOW’S HIERARCHY OF NEEDS THEORY
There are two types of needs – Basic and Secondary or acquired.
Basic needs are important for survival where as secondary needs are not so
important.
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24. Maslow has further classified the needs as lower order needs and higher order
needs.
First two needs in the hierarchical order are lower needs and rests three are higher
order needs.
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25. INFLUENCE OF MOTIVATION ON CONSUMER BEHAVIOUR
Functional Motives
Aesthetics/ Emotional Motives
Social Motives
Situational Motives
Curiosity Motives
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26. INVOLVEMENT
Consumer involvement refers to the degree of information processing or extent of
importance that consumer attaches to a product. The degree of involvement has a
very significant effect on consumer behaviour. When more expensive products are
to be purchased, the consumer gets more involvement in purchase process but he
may not be equally involved in a product which is less expensive.
High Involvement
Low Involvement
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28. CONSUMER ATTITUDE
According to Bem, Attitudes are likes and dislikes.
According to Allport, Attitude is learned predispositions to respond to an object or
class of object in a consistently favourable or unfavourable way.
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29. Nature of Attitude
Attitude have an object
Attitudes have Direction, Degree and Intensity
Attitude have Structure
Attitudes are learned
Attitudes are Predispositions
Attitudes have a Relationship with behaviour
Attitudes are Consistent
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31. Personality
The term personality has been derived from Latin word PERSONARE which means
to speak through. Personality is used in terms of influencing others through
external appearance.
According to Schiffman and Kanuk, Personality can be defined as those inner
psychological characteristics that both determine and reflect how a person
responds to his or environment.
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32. Nature of Personality
Impact behaviours and actions
Psychological and Physiological
Personality Reflects Individual Differences
Personality is consistent and Enduring
Personality can change
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34. Group Behaviour
According to David H. Smith, “A group is a set of two or more individuals who are
jointly characterised by a network of relevant communications, shared sense of
collective identity and one or more shared dispositions with associated normative
strength”.
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35. Nature of Groups
Two or More Persons
Collective Identity
Interaction
Shared Goal Interest
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36. Social Group Influencing on Consumer Behaviour
Family
Reference Groups
Opinion Leaders
Roles and Status
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37. Social Class
Social Class is defined as the division of members of a society into a hierarchy of
distinct status classes, so that members of each class have relatively the same
status and members of all other classes have either more or less status
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38. Social Class Categories
Upper- Upper Class
Lower-Upper Class
Upper-Middle Class
Lower-Middle Class
Upper-Lower Class
Lower-Lower Class
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40. Applications of Social Class Influences
Advertising
Market Segment
Distribution
Product Development
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41. Opinion Leaders
Opinion leaders are individuals whose ideas and behaviour serve as a model to
others. Opinion leaders communicate messages to a primary group, influencing the
attitudes and behaviour change of their followers.
Opinion Leader is a process by which the opinion leader informally influences the
actions or attitude of others, who may be opinion seekers of opinion recipients.
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42. Characteristics of Opinion Leadership
Higher Social Status:
Opinion leaders have approximately the same social class position as non-leaders,
although they have higher social status within the class.
Media Exposure:
Knowledge
Social/ Gregarious
Innovator
Familiar
Individuated
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44. Influence of Opinion Leadership
Product-Involvement
Self-Involvement
a. Gaining Attentions
b. Showing Connoisseurship
c. Having Inside Information
d. Suggesting Status
e. Spreading the Gossips
f. Seeking Confirmation
g. Asserting Supiority
Other Involvement
Message Involvement
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45. Reference Group
Reference group can be defined as actual or imaginary, institutions, individuals or
groups having significant relevance on the target individual’s evaluations,
aspirations or behaviour.
A reference groups is an individual(s) or group(s) that influences the shaping of an
individual’s opinion, belief, attitude and/or behaviour.
Some of them are Normative Reference Group and Comparative Reference
Group.
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46. Types of Reference Group
Friendship Group
Shopping Group
Work Groups
Virtual Groups or Communities
Brand Communities
Consumer Action Groups
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47. Influence of Reference Groups
Compliance: Necessity of the beliefs and values considered
Identification: Group beliefs and values followed while living in group
Internationalization: Group Beliefs and Value can be the same at individual level
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48. Culture
Culture is everything that is socially learned and shaped by the members of a
society.
Culture is a society’s personality.
Culture is the sum total of learned beliefs, values and customs that serve to direct
the consumer behaviour of members of a particular society.
Beliefs consists of the very large number of mental or verbal statements (i.e. I
believe…) that reflect a person’s particular knowledge and assessment of
something (another person, a store, a product, a brand)
Values also are beliefs. Values differ from other beliefs.
Customs are covert modes of behaviour that constitute culturally approved or
acceptable ways of behaving in a specific situations. Customs consist of everyday
or routine behaviour. Thus, while beliefs and values are guides for behaviour,
customs are usual and acceptable ways of behaving.
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49. Factors Affecting Culture
Social Factors:
a. Reference Groups
b. Family
C. Roles and Status
Personal Factors:
a. Age and stage in the lifecycle
b. Occupation and Economic Circumstances
c. Personality and Self-concept
d. Lifestyle and Values
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50. Role of Culture in Influencing Consumer Behaviour
The impact of culture is so natural and automatic that influence on behaviour is
usually taken for granted.
Culture can exist and sometimes reveal itself at different perceived or subjective
levels. There are three levels of subjective culture are as follow:
Level1. Supranational
Level2. National
Level3. Group
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51. SUBCULTURE
Subculture is defined as broad groups of consumers within a society’s culture
having similar values which distinguish them from the rest of society
Subculture can be distinctive because of the age, ethnicity, class, location and/or
gender of the members.
The qualities that determine a subculture as distinct may be linguistic, aesthetic,
religious, political, sexual, geographical or combination of factors.
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52. Types of Subculture
Nationality Subculture
Religious Subculture
Geographic and Regional Subculture
Racial Subculture
Age Subculture
Gender as a Subculture
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54. FAMILY
Family is defined as two or more persons related by blood, marriage, or adoption
who reside together.
Although families sometimes are referred to as households, not all households are
families.
Example: a household might include individuals who are not related by blood,
marriage or adoption. Such as unmarried couples, family friends, roommates.
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60. Buying Role of Consumers
Initiator
Influencer
Decider
Gatekeeper
Buyer
User
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61. Consumer Decision Making Process
Problem/ Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Behaviour
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62. Diffusion Of Innovation
According to Rogers, Diffusion is a process by which an innovation is
communicated through certain channels over time among the members of a social
system.
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67. ORGANIZATIONAL BUYING
Organizational/industrial/businessOrganizational/industrial/business
buying can be defined as the decision-buying can be defined as the decision-
making process by which formalmaking process by which formal
organizations establish the need fororganizations establish the need for
purchase products and services andpurchase products and services and
identify, evaluate and choose amongidentify, evaluate and choose among
alternative brands and suppliers.alternative brands and suppliers.
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68. Objectives of Organizational Buying
Non-Task Objectives
Task Oriented Objectives
Cost
Quality
Service
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69. Organizational Buying Process
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Post Purchase
Evaluation
Purchase Routine
Selection
Supplier
Selection
Proposal
Solicitation
Supplier Search
Product
Specification
General Need
Description
Problem
Recognition
70. Buying Centre/Decision Making Units
A buying centre includes all those persons in an
organization who become involved in the purchase
decision.
Identifying Key Members of Buying Centre:
1. Top Management Persons
2. Technical Persons (functions)
3. Buyers/Purchasers (Purchase or Materials
Department)
4. Accounts/Finance Persons
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71. Role of Buying Centre
Initiators
Users
Buyers
Influencers
Deciders
Approvers
Gate-Keepers
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72. Consumerism: An Application of Consumer Behaviour
Consumerism is a social force within the environment
designed to aid and protects the consumers by exerting legal,
moral and economic pressures on business.
Consumerism is a social movement seeking to augment the
rights and powers of the buyers in relation to sellers.
Let the seller beware or Caveat Venditor in comparison to the old age
Caveat Emptor or Let the buyer beware.
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73. Importance of Consumerism
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Improvement in
Supply
Educating Consumer
Better Relation with
Customers
No Unfair Trade
Practices
Better Support of
Government
Producers Rating
Product Rating
Liaison with Government
and Producers
74. Obstacles in Growth of Consumerism
Lack of LeadershipLack of Leadership
IlliteracyIlliteracy
Difficulty in Disseminating ConsumerDifficulty in Disseminating Consumer
EducationEducation
Cumbersome Legal ProcessCumbersome Legal Process
Lack of Effective Implementation ofLack of Effective Implementation of
Legislative MeasuresLegislative Measures
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75. Factors Contributing to Consumerism
Globalization
New Organizational Technologies
Unprecedented Market Competition
Misleading and Deceptive Advertising
Unfair Trade Practices
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