7/27/2019 Basic Concepts of Consumer Behaviour

1/25

CONSUMER BEHAVIOUR

7/27/2019 Basic Concepts of Consumer Behaviour

2/25

What Is Consumer Behavior?

Activities people undertake when

obtaining, consuming, and disposingof products and services

7/27/2019 Basic Concepts of Consumer Behaviour

3/25

Obtaining Consuming Disposing

Consumer

Influences

Organizational

Influences

Consumer Behavior

7/27/2019 Basic Concepts of Consumer Behaviour

4/25

Consumer

InfluencesOrganizational

InfluencesBrand

Product Features

Advertising

Word of Mouth

Promotions

Retail Displays

PriceQuality

Service

Store Ambiance

Convenience

Loyalty ProgramsPackaging

Product Availability

CULTURAL

SOCIAL

PERSONAL

PSYCHOLOGICAL

Culture

Subculture

Social Class

GroupsMembershipReferenceAspirational groups

Opinion leadersFamilyRoles andStatus

Age & life-cycleOccupation

Economic

situation

Lifestyle

Personality &

self-concept

MotivationPerceptionLearningBeliefs andattitudes

7/27/2019 Basic Concepts of Consumer Behaviour

5/25

Obtaining Consuming Disposing

How you decide

you want to buy

Other products

you consider

buying

Where you buy

How you pay for

product

How youtransport

product home

How you use the

product

How you store the

product in your

home

Who uses the

product

How much you

consume

How productcompares with

expectations

How you get rid

of remaining

product

How much you

throw away

after use

If you resell

items yourself

or through a

consignment

store

How you recycle

some products

7/27/2019 Basic Concepts of Consumer Behaviour

6/25

Overall Model of Consumer Behavior

Self-Concept

&Learning

Decision ProcessesExternal Influences

Internal Influences

CultureSubcultureDemographics

Social statusReference groups

FamilyMarketing Activities

Perception

Learning

Memory

MotivesPersonality

Emotions

Attitudes

Problem Recognition

Information Search

Alt Eval & Selection

Outlet select & Purchase

Post-purchase

Processes

7/27/2019 Basic Concepts of Consumer Behaviour

7/25

What Is Consumer Behavior?

Activities people undertake when

obtaining, consuming, and disposing of

products and services

A field of study that focuses onconsumer activities

Scope goes beyond just why and how

people buy to include ConsumptionAnalysis

7/27/2019 Basic Concepts of Consumer Behaviour

8/25

Questions???

7/27/2019 Basic Concepts of Consumer Behaviour

9/25

Maslows Hierarchy

7/27/2019 Basic Concepts of Consumer Behaviour

10/25

Perception

Process by which an individual selects,

organizes, and interprets information to form

a cohesive picture about an entity

Perceptions affect consumer behavior

However, remember that individuals can perceive

the same entity in different ways

7/27/2019 Basic Concepts of Consumer Behaviour

11/25

Perception

Selective Attention: Receive some messages andscreen out the rest An average person is exposed to 1500 ads or brand messages a

day

Most of these are screened out; So, how do marketers capturemind space?

People are more likely to notice stimuli that relate to current needs

People are more likely to notice stimuli they anticipate

People are more likely to notice stimuli that deviate relatively largerthan others

Marketers must bypass attention filters; provide unexpectedstimuli (salesperson, sudden offers)

7/27/2019 Basic Concepts of Consumer Behaviour

12/25

Perception

Selective Distortion: Tendency to interpret /

distort information to be consistent with prior

brand and product beliefs

Taste tests: Blind taste tests showed equal split;Open tests showed preferences

Can work to the advantage of marketers of strong

brands

A car may seem to drive smoother

A beer may taste better

7/27/2019 Basic Concepts of Consumer Behaviour

13/25

Perception

Selective Retention: Though people fail toregister much information, they retaininformation that supports their attitudes andbeliefs Remember good points about products we like and

forget good points about competing products

Works to the advantage of strong brands

Explains why marketers repeat messages for

reinforcement

7/27/2019 Basic Concepts of Consumer Behaviour

14/25

CULTURE AND

SUBCULTURE

7/27/2019 Basic Concepts of Consumer Behaviour

15/25

CULTURE

The sum total of learned beliefs,values,and customs that serve

to direct the consumer behavior of members of a particularsociety.

7/27/2019 Basic Concepts of Consumer Behaviour

16/25

Characteristics of culture

Culture is a learned response.

Culture includes inculcated values.

Culture is a social phenomenon.

Culture is gratifying and continues for a long

time.

Cultures are similar and yet different.

Culture prescribes the ideal standards of behavior.

7/27/2019 Basic Concepts of Consumer Behaviour

17/25

Culture & consumer behavior

Culture is learned:Culture I learned at childhood itself from the socialenvironment. Often we are children play and enact the reallife situation of social & culture ritual.

Three distinct forms of culture learning.

Formal learning: what the elder family memberteach the younger one how to behave.

7/27/2019 Basic Concepts of Consumer Behaviour

18/25

Cont...

Informal learning: what the child learns primarily byimitating the behavior of selected others such as family,

friend, or TV heroes.

Technical learning: In which teacher instruct thechild in an educational environment about what should be

done, how it should be done, and why it should be done.

7/27/2019 Basic Concepts of Consumer Behaviour

19/25

7/27/2019 Basic Concepts of Consumer Behaviour

20/25

Culture & consumer behavior

Sharing of culture: Culture is transferredthrough family, schools, houses of worship, and media

Culture is dynamic:

- Change occur due to Technology, Migration,Population shift, Resource shortages, wars, Changing

values etc.

- Also known as TREND . ( Ex, Fashion,

Automobile, Foods, Entertainment, Lifestyles, womenwork outside the home are few Hot object to study.

7/27/2019 Basic Concepts of Consumer Behaviour

21/25

Diversity by Indian Railways Indian village by Amul

Emerging Culture Ritual & Tradition

7/27/2019 Basic Concepts of Consumer Behaviour

22/25

Indian Core Values

Family orientation

Saving orientation

Festivities

Shopping as a ritual

Mythology

Food Habits

7/27/2019 Basic Concepts of Consumer Behaviour

23/25

7/27/2019 Basic Concepts of Consumer Behaviour

24/25

7/27/2019 Basic Concepts of Consumer Behaviour

25/25

Examples of Major Sub-cultural Categories

CATEGORIES EXAMPLES

Nationality Greek, Italian, Russian

Religion Catholic, Hindu, Mormon

Geographic region Eastern, Southern, Southwestern

Race African American, Asian, Caucasian

Age Teenagers, Xers, elderly

Gender

Female, maleOccupation Bus driver, cook, scientist

Social class Lower, middle, upper