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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi8-1
Consumer Behaviour - Personal and OrganisationalMarketing Management Text and Cases
Excel Books8-1
Consumer Behaviour - Personal and Organisational
8Chapter
© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi8-2
Consumer Behaviour - Personal and Organisational
“Consumer behaviour refers to the mental and emotional processes and the
observable behaviour of consumers during searching, purchasing, and post
consumption of a product or service.”
Satish K. Batra and S. H. H. Kazmi, ‘Consumer Behaviour’, Excel Books, 2004.
© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi8-3
Consumer Behaviour - Personal and Organisational
Various Factors Influencing Consumer Behaviour
Social Factors
Culture and Subculture Roles and Family Social Class Reference Groups
Psychological Factors
Motivation Perception Learning Attitudes Personality
Personal Factors
Demographic Factors Lifestyle Situational factors Involvement Level
ProblemRecognition
Information Search
Alternatives’ Evaluation
Purchase Action
Postpurchase Actions
Consumer Decision-Making Process
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Social FactorsSocial factors refer to forces that other people exert and which affect consumers’ purchase behaviour. These include culture and subculture, roles and family, social class, and reference groups.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Culture and SubcultureCulture influences consumers through the norms and values established by
the society in which they live.
Subcultures exist within a given dominant culture.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Roles and Family
Joint Decision-Making Process
Initiator
(Need recognition)
Gatekeeper
(Information search)
Influencer
(Evaluation of alternatives)
Decision- maker
(Decision to buy)
Buyer
(Purchase)
User
(Consumption) & evaluation
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Social Class‘Social class defines the ranking of people in a society into a hierarchy of distinct
status classes; upper, middle and lower, so that the members of each class
have relatively the same status based on their power and prestige.’
© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi8-8
Consumer Behaviour - Personal and Organisational
Reference GroupsA reference group refers to a group of people with whom an individual
identifies herself/himself and the extent to which that person assumes many
values, attitudes, or behaviours of group members.
© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi8-9
Consumer Behaviour - Personal and Organisational
Psychological FactorsPsychological factors are internal to an individual and generate forces within that
influence her/his purchase behaviour. The major forces include motives,
perception, learning, attitude, and personality.
© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi8-10
Consumer Behaviour - Personal and Organisational
MotivationThis refers to driving forces within an individual produced by a state of tension
caused by unfulfilled needs, wants, and desires.
Motivation Process
Learning
Unfulfilled
Needs, Wants and Desires
Felt
Tension
Drive Appropriate
Behaviour
Goal or Need
Fulfilment
Cognitive Processes
Tension Reduction
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Motivation ResearchSome of the methods used to probe the subconscious mind include:
In-depth interviews
Projective techniques
Association tests
Focus group
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
PerceptionPerception is the process by which an individual selects, organises, and
interprets stimuli into a meaningful and coherent picture of the world.
Perception includes three distinct processes:
Sensation
Information selection
Interpreting the information
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
LearningLearning is viewed as a relatively permanent change in behaviour occurring as a
result information or experience, both direct and indirect.
There are two basic approaches to learning:
(1) behavioural approach, and
(2) cognitive learning approach.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Attitudes“An attitude is an enduring organisation of motivational, emotional, perceptual,
and cognitive processes with respect to some aspect of our environment.”
© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi8-15
Consumer Behaviour - Personal and Organisational
PersonalityPersonality refers to a dynamic concept that describes the growth and
development of an individual’s whole psychological system, which looks at some
aggregate whole that is greater than the sum of the parts.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Marketers consider four main theories of personality as more relevant to their
purpose and include
(1) Self-concept theory: Self-concept describes the totality of an individual’s
thoughts and feelings having reference to herself/himself as an attitude object.
(2) Psychoanalytic theory: Personality is the result of childhood conflicts
between three fundamental components of personality: Id, Ego, and
Superego.
(3) Social-cultural theory: Social and cultural variables are more important than
biological drives in the development of individual personality.
(4) Trait theory: Personality is composed of a set of traits that are relatively
stable and describe a general pattern of behaviour.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Personal FactorsPersonal factors include those aspects that are unique to a person and influence
purchase behaviour. These include demographic factors, lifestyle, and situational
factors.
© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi8-18
Consumer Behaviour - Personal and Organisational
Demographic FactorsDemographic factors include individual customers’ age, gender, education,
occupation, income, marital status, family size, etc. These characteristics affect
the purchase and consumption behaviour of persons.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
LifestyleLifestyle is an indicator of how people live and express themselves on the basis
of their activities, interests, and opinions.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Situational FactorsAll those factors particular to a time and place that do not follow from a
knowledge of personal (intra-individual) and stimulus (choice alternative)
attributes and that have a demonstrable and systematic effect on current
behaviour.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Involvement LevelConsumer involvement is considered as an important variable that can help
explain how consumers process the information and how this information might
influence their purchase or consumption related behaviour.
There are several broad types of involvement related to the product, the
message, or the perceiver.
Product involvement
Advertising involvement
Purchase situation involvement
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Consumer Decision Processes
There are various types of consumer-decision processes.
Nominal decision-making
Extended decision-making
Limited decision-making
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Involvement Level and Types of Decision- Making
Level of involvement
High
Low
Nominal Limited Extended
Types of Decision-making
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Consumer Decision-making ProcessConsumer decision-making generally involves five stages:
Problem or need recognition,
information search,
alternatives evaluation,
purchase, and
post-purchase evaluation.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Stages in Consumer Decision Process
Need Recognition
Alternatives’ Evaluation
Post-purchase action
Nisha is fed up with her now obsolete computer with CRT monitor. She needs a 15” laptopfor easy mobility and comfort.
Nisha surfs the Internet to learn about laptops.
Nisha considers several brands in terms of reputation, features’ service support, and price.
Nisha chooses one model of IBM laptop. It has features that appeal to her, dealer gives her Rs. 800 discount, and she buys it.
Dissonance and evaluation.
Information Search
Store Selection and
Purchase
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Organisational Consumer“The decision-making process by which organisations establish the need for
purchased products and services and identify, evaluate and choose among
alternative brands and suppliers.”
Organisational buyer characteristics differ from final consumers in several
important aspects.
Group-based Decision-making
Technical Knowledge
Rational Motives Dominate
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Decision Approach and Purchase PatternsOrganisational purchases and buying patterns differ from final consumers in
many ways.
Formality
Negotiations
Less Frequent Purchases
Reciprocity
Service
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Consumer Behaviour - Personal and Organisational
Types of Decision Situations Straight Re-buy
Modified Re-buy
New Task
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Organisational Buyer Decision ProcessThe size of a decision-making unit (DMU) may vary according to how new,
complex and important the purchase decision is; and how centralised,
structured and specialised the organisation is.
© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi8-30
Consumer Behaviour - Personal and Organisational
Problem RecognitionThe first stage of organisational buying decision involves recognising a need
or problem.
Product SpecificationParticipants involved in the decision-making process assess the problem or
need and determine what is required to resolve or satisfy it.
Product and Vendor SearchThe organisation tries searching for possible products to solve the problem,
and also to locate firms who may qualify to be suitable suppliers for those
products.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Product and Vendor EvaluationThe buying centre makes an evaluation to determine which products meet
the laid down specifications. Various vendors are also evaluated on criteria
such as price, delivery, service, warranty, credit terms, etc.
© SHH Kazmi, 2007
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Consumer Behaviour - Personal and Organisational
Information gathered during evaluation stage is used to select finally the
product to be purchased, as well as the vendor from which the purchase will
be made.
Product and Vendor Selection
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Consumer Behaviour - Personal and Organisational
Performance EvaluationThe last stage in purchase decision process involves an evaluation of the product as well as vendor performance.