1. managing the consumer

8/7/2019 1. Managing the Consumer

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SEM - IMARKETING MANAGEMENT I

CONSUMER BUYER BEHAVIOR

Consumer Buyer Behavior

Defn : The buying behavior of final

consumer individuals and householdsthat buy goods and services for personalconsumption

Consumer Market

Defn : All of these final consumers

combine to make up the consumer market


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Consumer Behavior Model

There are 3 important elements :

1. The Environment2. Buyers Black Box

3. Buyers Response

TheEnvironment

BuyersBlack

Box

Buyer

Response


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The Environment

Marketing Stimuli Other

1. Product 1. Economic2. Price 2. Technological

3. Place 3. Social / Cultural

4. Promotion 4. Political


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Buyers Black Box

1. Buyers Characteristics

2. Buyers Decision Process

Buyers Responses

1. Buying attitude and preferences

2. Purchase behavior

3. Brand and company relationship


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Characteristics affecting Consumer Behavior

1. Cultural

2. Social

3. Personal

4. Psychological


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1. Culture

The set of basic values, perceptions, wants andbehaviors learned by a member of society fromfamily and other important institutions

e.g. A child generally learns following values

Success and achievement, Activity and

involvement, Respect to elders etc.Marketers are expected to spot the culturalshift to launch the new products.


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Sub-Culture

Each culture contains smaller sub-cultures orgroups of people with shared value systemsbased on common life experiences.

e.g. Bengalis, Marathi or Christian, Muslim etc

Many brands now target specific sub-cultureswith marketing plan tailored for specific needs


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Social Class

Every Society has some form of social classstructures.

Social classes are relatively permanent andordered divisions whose members share similarvalues, interest and behaviors

Generally social class is determined by variousfactors such as occupation, income, education,wealth etc.


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2. Social Factors

Consumer behavior is also influenced by Socialfactors such as consumers small groups, family,social roles and status

Many small groups influence persons behavior

Groups that have direct influence to which a

person belongs are called membership groupsGroups that does not have direct influence arecalled reference groups


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Opinion Leader

Person within a reference group who, becauseof special skills, knowledge, personality, orcharacteristics exert social influence on others

A study reveals that Opinion Leaders have 4time more influence than a common consumer

Many companies try to identify Opinion Leadersfor endorsing their product


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Social

Various other Social factors include :

1. Word of Mouth Publicity2. Online Social Networks

3. Family

4. Roles and Status


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3. Personal Factors

A buyers decision is also influenced by personalcharacteristics such as buyers age and lifecycle stage, occupation, economic situation,lifestyle, personality and self concept

Peoples buying decisions reflect and

contribute to their lifestyle their wholepattern of acting and interacting in the world.


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Personal Factors

1. Age and Life Cycle Stages

People change the goods and services they buyover their lifetime.

Tastes in food, clothes, furniture and recreationare often age related

Traditionally family life cycle stages includeyoung singles and married couples with children


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Personal Factors

2. Occupation

A persons occupation affects the goods andservices bought.

Blue collar workers tend to buy more ruggedwork clothes where as executives prefer

business suits


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Personal Factors

3. Lifestyle

A persons pattern of living as expressed in hisor her activities, interests and opinions.

People coming from the same sub-culture mayhave quite different lifestyles.

It involves measuring Activities, Interests andopinions.


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Personal Factors

4. Personality and Self Concept

The unique psychological characteristics thatlead to relatively consistent and lastingresponses to the ones own environment.

Brand personality is the specific mix of thehuman traits that may be attributed to aparticular brand


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Personal Factors

4. Personality and Self Concept

Brand personality traits are :a. Sincerity

b. Excitement

c. Competence

d. Sophistication

e. Ruggedness


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4. Psychological Factors

A persons buyering choices are furtherinfluenced by four major psychological factors :

a. Motivation

b. Perception

c. Learning

d. Beliefs and Attitudes


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4. Psychological Factors

Motivation

A need that is sufficiently pressing to direct theperson to seek satisfaction of the need

Perception

The process by which people select, organise

and interpret the information to form ameaningful picture of the world


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4. Psychological FactorsLearning

Changes in an individuals behavior arising fromexperience.

Beliefs

The descriptive thought that a person holdsabout something

AttitudeA persons consistently favorable or unfavorableevaluation, feelings and tendencies toward anobject or an idea


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Types of Buying Decision BehaviorComplex Buying Behavior

Consumer buying behavior in situations

characterised by high consumer involvement ina purchase and significant perceived differencesamong brands

Dissonance- reducing Buying Behavior

Consumer buying behavior in situationscharacterized by high involvement but fewperceived differences among brands


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Types of Buying Decision BehaviorHabitual Buying Behavior


characterized by low consumer involvement andfew significantly perceived brand differences

Variety Seeking Buying Behavior


characterized by low consumer involvement butsignificant perceived brand differences


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Buyer Decision Process

1. Need Recognition

2. Information Search

3. Evaluation of Alternatives

4. Purchase Decisions

5. Post Purchase Behavior


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1. Need Recognition

The first stage of the buyer decision process, inwhich the consumer recognizes a problem orneed


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The stage of the buyer decision process, inwhich the consumer is aroused to search formore information. The consumer may simplyhave heightened attention or may go into anactive information search


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Various information sources are :

Personal : Family, friends, neighbors

Commercial : Advertising, Salespeople, dealer

Public sources : mass media, internetexperiential sources : handling / using product


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3. Evaluation of Alternatives

The stage of the buyer decision process inwhich the consumer uses the information toevaluate the alternative brands in the choice set

Marketer needs to know as how the consumerarrives at a particular brand so that they cantake steps to influence them


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4. Purchase Decision :

The buyers decision about which brand topurchase.

Two factors :

Purchase intentionPurchase decision


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5. Post Purchase Behavior :

The stage of buyer decision process in whichthe consumer take further action after purchasebased on their satisfaction or dissatisfaction


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SEM - I MARKETING MANAGEMENT I


Buyer Decision Process for New Products

Adoption Process :

1. Awareness

2. Interest

3. Evaluation

4. Trial

5. Adoption


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SEM - I MARKETING MANAGEMENT I


Individual Differences in Innovativeness

1. Innovators (2.5%) try new ideas at risk

2. Early Adopters (13.5%) opinion leaders

3. Early Majority (34%) adopt new ideasbefore average person

4. Late Majority (34%) adopt only after

majority people tried it5. Laggards (16%) adopt new product when it

becomes tradition

1. managing the consumer

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