Unit3 CB Models

8/3/2019 Unit3 CB Models

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Consumer BehaviourModelsUNIT-2

Dr. Urvashi Makkar Professor &

Chairperson- Marketing,

IMS, Ghaziabad


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Ag endaConsumer Decision Making FrameworkReference GroupsVarious Layers of Consumers Variables havingImpact on Market-Driven ApproachKotlers Consumer Behaviour ModelStages in Buyer Decision Making

Pre-Purchase Information SearchFactors affecting Process of Decision Making in Pre-Purchase SearchPost- Purchase DecisionChoice Criteria depends on 3 levels of Decision

MakingCognitive DissonanceHoward-Sheth Model of Consumer Behaviour Consumer Segmentation-An Important Tool to Understand Consumer DecisionMakingConsumer Profiling


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S ocial Factors Cultural Factors

Psycholo gical Factors Personal Factors

Family Influence,Reference groupinfluences, Roles andS tatus

Culture, S ub-Culture,S ocial Class

Beliefs and Attitude,Learnin g

Psycho graphics,Motivation,Personality, Occupation,Economic circumstances,Ag e and family life cycle

Consumeras Decision

Maker

Internal

External

Consumer Decision Makin g Framework


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Reference Groups

S ocial Class

FriendsFamily

IndividualReference Groups:-

Primary/ S econdary

Formal / Informal

Membership/ S ymbolic


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V arious Layers of ConsumersV ariables havin g Impact on Market-

Driven Approach

Demo graphic Layer

Behavioral LayerA ttitudinal Layer

Motivational LayerMarket Driven

Approach


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K otlers Consumer BehaviourModel

Input/ External Influences

Marketin g S timulus (i)

OtherS timulus (ii)

Product

Price

PromotionChannels

of Distribution

EconomicTechnolo gical

Political

S ocialCulture

P rocess/ Consumer Decision Making

BuyerCharacteristics

(i)

BuyerDecisionProcess

(ii)

Psycholo gical

PersonalCulture

Output/ Consumer Decisions/ Actions

Product ChoiceBrand ChoiceDealer ChoicePurchase Timin gPurchase Amount

S tep I S tep II S tep III


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S ta ges in Buyer Decision

Makin g (Buyer Decision Process)Problem Reco gnition

Pre-Purchase Information S earch

Evaluation of alternatives

Purchase Decision

Post- Purchase Decision


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Firms Marketin g Efforts ( S timuli)

- Product

- Promotion

- Price

- Channels of Distribution

S ocial/Cultural Environment

- Family

-Informal S ources

- S ocial Class

- Culture

External Influences

Evaluation of A lternatives

Need Reco gnitionPre-Purchase S earch

Psycholo gical FieldMotivation, ,Perception,Learnin g, Personality,Attitude

Purchase

-Trial

-Repeat Purchase

Post-Purchase Evaluation

Experience

Consumer Decision Makin g

Information P

rocessing Frame work

Post-Decision Behaviour

Input

Process

Output

K otlers Consumer Behaviour Model


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PurchaseS atisfaction

Co gnitiveDissonance

Post-Purchase BehaviourPre-PurchaseS earch


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Factors affectin g Process of Decision Makin g in Pre-Purchase

S earch

InvolvementDifferentiationTime Pressure


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Factors affectin g Process of Decision Makin g(contd.)

Hi ghlyDifferential/Complex Buyin g Behaviour

Variety

Seekin g Behaviour

Dissonance-Reducin g Behaviour

Habitual Buyin g Behaviour

Hi gh

Hi gh

Low

Low

Involvement

D i f f e r e n t i a t i o n


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Choice Criteria depends on 3levels of Decision Makin g

Extensive Problem S olvin g Limited Problem S olvin g Routinized/HabitualResponse Behaviour


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PurchaseS atisfaction

Co gnitiveDissonance

Post-Purchase BehaviourPre-PurchaseS earch


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TheThe feelin gfeelin g onon partpart of of thethecustomercustomer thatthat thethe decisiondecision toto buybuy

waswas appropriateappropriate becausebecause thethe productproduct

metmet hishis expectationsexpectations. .

Purchase S atisfaction


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TheThe tensiontension thatthat resultsresults fromfrom

holdin gholdin g twotwo conflictin gconflictin g ideasideas ororbeliefsbeliefs atat thethe samesame time,time, inin termsterms of of ConsumerConsumer BehaviourBehaviour

TheThe ne gativene gative feelin gsfeelin gs thatthat aaconsumerconsumer maymay experienceexperience afteraftermakin gmakin g aa commitmentcommitment to to purchasepurchase. .

Co gnitive Dissonance


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AA dissatisfieddissatisfied consumerconsumer decidesdecides toto::

TakeTake nono actionaction. . DiscontinueDiscontinue purchasin gpurchasin g aa productproduct

Consumers Response to Dissatisfaction


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TheThe tensiontension thatthat resultsresults fromfrom

holdin gholdin g twotwo conflictin gconflictin g ideasideas ororbeliefsbeliefs atat thethe samesame time,time, inin termsterms of of ConsumerConsumer Behaviour,Behaviour, thethe ne gativene gativefeelin gsfeelin gs thatthat aa consumerconsumer maymayexperienceexperience afterafter makin gmakin g aacommitmentcommitment to to purchasepurchase. .

Co gnitive Dissonance


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Different Types of ConsumersBased on Post Purchase Behavior

Butterflies True Friends

S tran gers Barnacles

Hi gh

Hi gh

Low

Low

Loyalty

P r o

f i t a b i l i t y


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Consumers lo g on to Net forresearch on goods

W ritankar Mukherjee KOLKATA

Economic Times Business of Brands

August, 19,2008,Tuesday


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INDIAN consumers are usinginternet for not just research into

financial products but evenpurchasing them. A latest studyindicated that about 18% of all

financial products are sold online inIndia. However, using internet for research on products still takes

centrestage. Nearly 68% of consumers go online to research onproducts that interest them.


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T he study was conducted by Googleand implemented by the strategicmarket research firm Media ScreenLLC to gain deeper understanding of the Indian consumer behaviour inthe online space. T he encouragingtrend is that such activities are not just limited to the urban pockets.


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U sing internet for such transactionsis more skewed towards metros dueto the greater penetration of internet.But, there is an equally optimisticdemand arising from smaller towns. As regulations on selling financialproducts become more relaxed inIndia, the number of onlinetransactions will increase manifold,Google India business head(financial services) Sridhar Seshadritold E T .


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T he study highlighted that comparingcosts and product details are the two

most common online financial researchactivities. Between the two, comparingcosts have become more important

than evaluating product details (48%vs 42%). T he financial companywebsites are the most important online

source when making the finaldecision, said Mr Seshadri.


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However, search engines play a

major role in accessing other websites and nearly 67% of respondents use them for financial

product research. Some 30% of consumers use search engines tobecome aware of special

rates/promotions and to accessexpert advice. Around 55% see anonline advertisement and click on

them to learn more.


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Coming to the specifics, consumersundertaking research for banking

services, for instance, get suchinformation from TV advertisements(41%), search engines (69%) andbanks website (47%). Credit cardshoppers, too, use comparisonshopping sites for gatheringinformation. T hose seeking new loans

rely as much on online sources as onadvice from friends, family or colleagues, the Google study noted.


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Howard- S heth Model of Consumer Behaviour

Four Sets of Variables

Inputs Perceptual and Learning constructs

Outputs Exogenous or External Variables


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Overt search Confidence

Intention

S atisfaction

Brand

Compre-hension

Attitude

Intention

Purchase

Attention

ChoiceCriteria

AttitudeS timulus

Ambi

guity

Motives

Attention

Perceptual

Bias

BrandCompre-hension

S timulus Display

i. Significativea. Quality

b. Pricec.Distinctivenessd. Servicee. Availability

ii. S ymbolica, b, c, d, e,

iii. Sociala. Family

b. Referencegroups

c. Social class

Inputs

Perceptualconstructs

Learnin g

constructsOutputs


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Exo genous or External V ariables

Importance of Purchase Personality V ariables S ocial Class Culture Time Pressure Financial S tatus


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Consumer S egmentation-

An Important Tool to UnderstandConsumer Decision Makin g


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Consumer S egmentation

DemographicsBehavioralGeographicSocio-EconomicBenefit Segmentation

Segmentation Based on- Psychographics Life Styles/AIOs


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Consumer Profilin g & Adv.

AnalysisConsumer-Profile in terms of

Demographics,

Behavioral andPsychographicsSocio-economic Classification (SEC)

SEC ASEC BSEC CSEC D


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Demo graphics

Personality

ConsumerLifestyle

Psycho graphics

Lifestyle andPsycho graphics

Demo graphics

Media Habits

Benefit S ou ght

Brandattitudes &Beliefs

PurchaseBehaviour, etc.

Purchase


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Consumer Lifestyle

Consumer Lifestyle is function of AIOs

Activities Interests Opinions


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Current Trends havin g Impact on

Consumer Decision Makin g ProcessThe rise of Young/Children as DirectConsumer Changed Family Buying Behavior Changed Family Structures-

Joint/Nuclear Families

Increasing Influence of Children inDecision Making

Women as Consumer


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Marketers wakin g up to8-year-old gad get gurus

Savitha V & Sushmita

MohapatraET, 5/11/2007


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C hildren in the age group of 8 to 14years play consultants to parents inbuying mobile phones, computersand TV


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They do in-depth research on the Net, study thespecifications , compare product features and actas consultants.They are the young savvy consumers who knowexactly what they want. We mean really young, 8to 14 years of age, to be precise.The recent survey done by Walt Disney Companyand Group M shows that children in this agegroup function as consultants to their parentswhen it comes to buying mobile phones,computers and TV sets .

Up to 76% of the children surveyed display highinvolvement in mobile phone purchases and 61%in computers.They know the brands, they know the features

and they know what works.


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In lots of categories, we found kids are theconsultants for parents. They do a lot of researchand are highly informed on the attributes andspecifications of a product.They are also very finicky about brands . The 13-14-yearolds are more brand conscious than theyounger ones, says Antoine Villeneuve, senior vice-president and managing director, WaltDisney Television International (India).


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Mr Villeneuve attributes this level of involvement mainly to the influence of media. There is a lot of media consumption within thisage group.They get a lot of information from the internet,news papers and news channels, he says.And its this age group that the companies aretargetting with their communication messages. The age group 10-20 is one that is curious abouttechnology.They are more exposed to advertisements andare probably more social when compared to their

parents.They inevitably pick up the latest news aboutphones, says Ish Bawa, marcom head, BenQIndia. BenQ targets this audience through theinternet and also holds college road shows.


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We have seen that parents depend a lot onchildren particularly for comparison of one

product to another.Our products have technology at its core andchildren probably understand it better than their parents.They have a good say especially when it comesto entertainment products, says VRamachandran, director (marketing & sales), LG.The web has become an important tool for marketing, especially to the young generation. LGhas put a strong focus on its web site, targettingteenagers and young adults, Mr Ramachandran

says.Companies also tap the teenager market withtargetted content. Although we have notlaunched any communication targetting the 8-14age group primarily. We address our communication to kids above 14-15 years of age,who we identify as pioneer young.


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Economic Times

Business of Brands (22-07-08)


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Economic Times

B usiness of B rand (August,27,2008, Wednesday)


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Unit3 CB Models

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