Into Duct Ion to CB

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An Introduction


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Those activities directly involved in obtaining

, consuming and disposing of products and

services, including the decision processes

that precede and follow these actions


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This study draws on concepts from

various other disciplinesy Psychology

y Sociology

y Anthropology

y Economics

y Marketing


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You cannot take the consumer forgranted any more

Therefore a sound understanding of

consumer beh

aviour is essential for th

elong run success of any marketingprogram


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Perspectivesy Logical Positivism

1. Understanding and predicting consumer behaviour

2. Cause and effect relationships that governpersuasion and/or education

y Post Modern to understand consumptionbehaviour without any attempt to influence it


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Why is this important?y Out of 11000 products launched by 77 companies, only

56% are present five years later Kuczmaski & Associates

y Only 8% of new product concepts offered by 112leading companies reached the market. Out of this 83%

failed to reach marketing objectives Group EFOLtd.,Marketing News, Feb 1, 1993, Pg 2


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MEET THE NEW CONSUMER

and smile when you do becauseshe is your boss. It may not be

the person you thought you

knew. Instead of choosing from

what you have to offer, she tells

you what she wants. You figure itout how to give it to her.-Fortune Editor


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Understanding and adapting to consumer motivation

and behaviour is not an option it becomes a necessity

for competitive survival


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A sales success occurs because demandeither exists already or is latent andawaiting activation by the right marketing

offering


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Dominant forces shaping Consumer

Research

y Factors that move an economy from Production-driven

to Market-driven

y Level of sophistication withwhichhuman behaviour isunderstood in psychology and other behavioural

sciences


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Environmental factors that affect the

marketing challengey Extent to which the supply of valid products and

services exceed consumer demand

y Ability to communicate with customers quicklyand accurately

y Existence of multiple avenues of distributionquickly and economically

y Extent to which marketers can influence to induce

distributors to comply with overall marketingstrategy

y Economic growth, both nationally and globally


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Motivational Researchy It seeks to learn what motivates people in making

choices. The techniques are such as to delve into theconscious, subconscious and the unconscious.

y women dont buy cosmetics, they buy hope.

y women bake cakes out of the unconscious desire togive birth


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Marketers must contend with small changingsegments ofhighly selective buyers intent on

receiving genuine value at the lowest price


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All managers must become astute

analysts of Consumer motivation andBehaviour

Three foundations for marketing decisionsy Experience

y Intuition

y Research


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Marketers have to constantly innovate

after understanding their consumers to

strip out costs permanently by focusing

on what adds value for the customer and

eliminating what doesnt.


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Individualised Marketingy A very personal form of marketing that recognises,

acknowledges, appreciates and serves individuals who

become or are known to th

e marketer.y Data based marketing; DM

y Customized marketing


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understanding consumer

behaviour

y Stimulus ads, products, hungerpangs

y

Response physical/mental reaction to thestimulus

y Intervening variables mood, knowledge, attitude,

values, situations, etc.


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Overall Model of Consumer Behaviour

Self-Concept&

Learning

Decision ProcessesExternal Influences

Internal Influences

CultureSubcultureDemographicsSocial statusReference groups

Family

Marketing Activities

PerceptionLearning

MemoryMotivesPersonalityEmotions

Attitudes

Problem Recognition

Information Search

Alt Eval & Selection

Outlet select &

Purchase

Postpurchase

Processes


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Factors Affecting Consumer Behavior:

Psychological

Factors Affecting Consumer Behavior:

Psychological

PsychologicalFactors

Motivation

Perception

Learning

Beliefs andAttitudes


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Nee s

Esteem Needs(self-esteem, status)

Social Needs(sense of belonging, love)

Safety Needs(security, protection)

Physiological Needs(hunger, thirst)

SelfActualization

(Self-development)


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Nee s

Esteem Needs(self-esteem, status)

Social Needs(sense of belonging, love)

Safety Needs(security, protection)

Physiological Needs(hunger, thirst)

SelfActualization

(Self-development)


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Decisions

Complex

BuyingBehavior

Dissonance-

Reducing Buying

Behavior

Variety-

SeekingBehavior

Habitual

Buying

Behavior

HighInvolvement

Significant

differencesbetween

brands

Fewdifferences

between

brands

LowInvolvement


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Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior


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The Buyer Decision ProcessStep 1. Need Recognition

External Stimuli

TV advertising

Magazine ad

Radio slogan

Stimuli in the

environment

Internal Stimuli

Hunger

Thirst

A persons normalneeds

Need RecognitionDifference between an actualstate and a desiredstate


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The Buyer Decision ProcessStep 2. Information Search

Family, friends, neighborsMost influential source of

information

Advertising, salespeopleReceives most information

from these sources

Mass MediaConsumer-rating groups

Handling the productExamining the productUsing the product

Personal Sources

Commercial Sources

Public Sources

Experiential Sources


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The Buyer Decision ProcessStep 3. Evaluation of Alternatives

The Buyer Decision ProcessStep 3. Evaluation of Alternatives

Product AttributesEvaluation of Quality, Price, & Features

Product AttributesEvaluation of Quality, Price, & Features

Degree of ImportanceWhich attributes matter most to me?

Degree of ImportanceWhich attributes matter most to me?

Brand BeliefsWhat do I believe about each available brand?

Brand BeliefsWhat do I believe about each available brand?

Total Product SatisfactionBased on what Im looking for, how satisfied

would I be with each product?

Total Product SatisfactionBased on what Im looking for, how satisfied

would I be with each product?

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.


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The Buyer Decision ProcessStep 4. Purchase Decision

Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

Attitudes

of others

Unexpected

situational

factors


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The Buyer Decision ProcessStep 5. Postpurchase Behavior

Consumers Expectations of

Products Performance

Dissatisfied

Customer

Satisfied

Customer!

Products Perceived

Performance

Cognitive Dissonance


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Process

Awareness

Interest

Evaluation

Trial

Adoption


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of New Products

DivisibilityCan the innovation

be used on a

trial basis?

CompatibilityDoes the innovation

fit the values and

experience of thetarget market?ComplexityIs the innovation

difficult tounderstand or use?

RelativeAdvantage

Is the innovationsuperior to existing

products?

CommunicabilityCan results be easily

observed or describedto others?

ProductCharacteristics

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