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Consumer Behaviour

Prof Sameer Kulkarni

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Consumer Mind: A Black Box

Stimulus

Company

Controlled

Product

PriceAdvertising

Promotion

Display

Distribution

Social

Word of Mouth

Reference

Group

Consumer Mind

(Black Box)Response

Buy

No Buy

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Customer Decision Making Process

Media

Borderless

Competition

Technology

Development/

New Generations

CUSTOMERAwareness

ValuesDiffer Pleasure vs.

Instant Pleasure

Social StructureIndividualism vs.

Collectivism

PersonalityAssertiveExhibitionist

Self Concept

Life-Style

Aspirations

Drivers of Change

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How they Buy ?

High involvement products:

High price

Complex featuresSignificant differences between alternatives

High perceived risk

Reflect self concept of buyer

E.g. Selection of a Car

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How they Buy ?

Low involvement products

Alternatives within the same product class are

similarDoes not reflect buyers self concept

Frequent brand switching behaviour

E.g. buying a bathing bar (Toilet Soap)

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Purchase decision in low involvement

products

Problem/need

Recognition

Evaluation of

AlternativesDecision

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Theory of evoked set

(Howard & sheths theory)

Total Set

(All Brands)

Awareness Set

(Brands aware of)

Consideration

Set

(Brands Considered)

Decision Set

(Brand Decided)Purchase Set

Total Set

IFB ,Whirlpool

LG

Samsung

Godrej

Awareness Set

IFB , Whirlpool

LG , Samsung

Consideration

Set

Whirlpool , LG

Samsung

Decision Set

Whirlpool, Godrej

Purchase Set

Godrej

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Its not product but the Situation

Routinized response Limited problem solving

Extensive problem solving

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Types of Buying Behavior

High Involvement Low Involvement

Significant Differences

Between Brands

Complex Buying

Behaviour

Variety Seeking Buying

Behaviour

Few Differences

Between Brands

Dissonance Reducing

BuyingBehaviour

Habitual Buying

Behaviour

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Motivational reasons

Sheths consumer motives

Five dimensions of motivation concerning

products/services benefits

Functional utility or function performed

Aesthetic/emotional appearance or attractiveness

Social status or esteem value

Situational unexpected benefit

Curiosity interest aroused

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Purchase decision in high involvement

products

NeedRecognition

Developmentof Decision

Criteria

Search for

Alternatives

Evaluation of

AlternativesDecision

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Routinized response

(straight re buy)

Customer is aware of his /her choice

Decision is based on personal experience

Spends little /no time in choosing an alternative

Perceives low risks

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Limited problem solving(modified re buy)

Launch of a new product which leads in a

change in the customers decision criteria.

Buying leads to trial purchase

Brand extension helps in removing obstacles

Perceives moderate risk

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Extensive problem solving(new task)

Requires extensive learning

Awareness about alternatives is zero Has no decision criteria

Unable to evaluate different brands

Relocating to a new & unknown environment

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Rational behind behaviour

Buyer

Motivations

Economic

Factors

Psychological

Factors

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Psychological Factors

Motivation

Learning

Perception

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Motivation

(Sigmund Freud)

Id

(Irrational/emotional)

Super Ego

(Moral)

Socially accepted methods

Ego

(Extremely rational)

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Influence on Buyer Behaviour

Cultural

Culture Subculture Social Class

Social

Reference Group Family Roles & Statuses

Personal

Age life cycle state Occupation Economic circumstances Life style personality and

self concept

Psychological

Motivation Perception Learning Beliefs and attitudes

Buyer

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Values motivates in buying

Functional value

Conditional value

Social value Emotional value

Knowledge value

(according to Sheth , Newman & Gross)

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Learning Theory

Human behaviour is learnt

One learns @ the pain of punishment

Or @ the lure of rewards

Directing human behaviour is done by developing

stimuli and cues which bring to fore the latent need

Attractive advertisement , shelf display, packaging,

how to use instructions ,store layout ,availability &sales persons are examples of cues developed by a

marketer.

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Basis of Differences

Gender differences

hunter=men,

nurse=women

Intelligence differencescaste,

class,

education, etc.

Personality differences

job specializations

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Plato stated more than 2000 years ago:

No two persons are born exactly alike; but

each differs from the other in natural

endowments, one being suited for one

occupation and the other for another.

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Cognitive dissonance theory

Leon Festinger-1957 ,wrote the theory of

cognitive dissonance

Psychological discomfort caused by

inconsistency among a persons beliefs ,

attitudes / actions e.g. smoking

Varies in intensity based on importance of

issue & degree of inconsistency

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Lifestyles

(Indian Perspective)

Integrated OuterDriven

InternallyDriven

NeedDriven

Survivors

Sustainers

Be longer

I-am-me

Experiment

SociallyConscious

Emulator

Achiever

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Buyer lifestyle Survivors: Price conscious , not very knowledgeable , depressed.

Sustainers: Strugglers , swayed by brand guarantee , impulsebuyers.

Belongers: Conventional conservative , nostalgic ,unexperimental.

Emulators : Ambitious , upwardly mobile , status conscious , buyto impress others.

Achievers : Leaders , work in hi tech top line products.

I-am-me: Young , Self engrossed , impulsive.

Experimental : Pursue a rich inner life , High sense of social resp.

Integrate : Fully matured psychologically , combination of bestelements

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