31524649 consumer behaviour

8/2/2019 31524649 Consumer Behaviour

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CONSUMER

BEHAVIOUR


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CB is the study of human responses to products , services ,and

the marketing of products & services.

CB is like fishing


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The study of consumers helps firms and organizations

improve their marketing strategies by understanding issues

such as

The psychology of how consumers think, feel, reason, and

select between different alternatives (e.g., brands, products);

The psychology of how the consumer is influenced by his or

her environment (e.g., culture, family, signs, media);

The behavior of consumers while shopping or making other

marketing decisions;


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Limitations in consumer knowledge or information

processing abilities influence decisions and

marketing outcome;

How consumer motivation and decision strategies

differ between products that differ in their level ofimportance or interest that they entail for the

consumer; and

How marketers can adapt and improve their

marketing campaigns and marketing strategies to

more effectively reach the consumer.


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Decision making

decision processes are the decision making

processes undertaken by consumers in regard to a

potential market transaction before, during, and after

the purchase of a product or service
http://en.wikipedia.org/wiki/Decision_makinghttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Decision_making


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General model

A general model of the decision process consists of

the following steps:

Problem recognition;

Gathering Information Alternative education

Purchase decision

Post-purchase behavior/buyer's remorse (cognitive

dissonance)


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Information search and decision making. Consumers

engage in both internal and external information search.


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Cultural, Social,

Individual and

Psychological

Factors

affect

all steps

Need Recognition

Information Search

Evaluation of Alternatives

Purchase

Post purchase Behavior


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Need Recognition

Result of an imbalance between

actual and desired states.


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Internal Stimuliand

External Stimuli

Present Status

Preferred State

Marketing helpsconsumers

recognize animbalance between

present status andpreferred state


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Stimulus

Any unit of input

affecting one or more

of the five senses:

sight

smell

taste

touch

hearing


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Want

Recognition of

an unfulfilled

need and a

product (or

attribute orfeature)

that will satisfy

it.


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Recognition of an unfulfilled need and a product

(or attribute or feature) that will satisfy it.

When a current product isnt performing

properly

When the consumer is running

out of an product

When another product seems superior to

the one currently used

I f i S h


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Information Searches

Internal

External

Process of recalling pastinformation stored

in the memory.

Process of seeking

information in the

outside environment.


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Internal Information Search

Recall information in memory

External Information search

Seek information in outsideenvironment

Non-marketing controlled Marketing controlled


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External Information Searches

Need MoreInformation

More RiskLess knowledge

Less productexperience

High level of interest

Less RiskMore knowledge

More productexperience

Low level of interest

Need LessInformation


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Evoked Set

Group of brands, resulting from an

information search, from which a

buyer can choose.


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Evaluation of Alternatives

Evoked Set

Purchase!

Evaluation of Products Analyze

product attributes

Rank attributes by importance


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Inert set: Does not see any specific advantage.

Not + orve

Inept set: set of brands that have been rejected


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Purchase

Determines which attributesare most important

in influencing aconsumers choice

To buyor not to buy...


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Explain the consumers Post purchase evaluation process.

Cognitive Dissonance

Inner tension that a consumer

experiences after recognizing an

inconsistency between behaviorand values or opinions.

P h B h i


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Postpurchase Behavior

Cognitive Dissonance

?Did I make a good decision?Did I buy the right product?

Did I get a good value?

Can minimize through:Effective Communication

Follow-upGuarantees

Warranties


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consumer buying decisions and discuss the significance

of consumer involvement.

Types of Consumer Buying Decisions

Routine

ResponseBehavior

Limited

DecisionMaking

Extensive

DecisionMaking

LessInvolvement

MoreInvolvement

Fi F i fl i D i i


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Five Factors influencing Decisions

1. Level of consumer involvement

2. Length of time to make decision

3. Cost of good or service

4. Degree of information search

5. Number of alternatives considered


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Routine Response Behavior( RRB)

Little involvement in selection process

Frequently purchased low cost goods

May stick with one brand Buy first/evaluate later

Quick decision


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Limited Decision Making (Limited problem solving

LPS)

Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands

Short to moderate time to decide


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Extensive Decision Making (Extensive problem

solving EPS)

High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide

May experience cognitive dissonance


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Level of Involvement

Situation

Social Visibility

Interest

Perceived Risk ofNegative

Consequences

PreviousExperience

FactorsDetermining

Level ofInvolvement

M k ti I li ti f I l t


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Marketing Implications of Involvement

High-involvement

purchases require:

extensive promotion totarget market and

good advertisement

Low-involvement

purchases require: in-

store promotion andeye-catching package

design


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Factors Influencing Buying Decisions

SocialFactors

IndividualFactors

Psycho-logicalFactors

CulturalFactors

CONSUMERDECISION-MAKING

PROCESS

BUY /

DONT BUY


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Culture

Set of values norms, attitudes,

and other meaningful symbols

that shape human behavior and

the artifacts, or products, of that

behavior as they are transmitted

from one generation to the next.


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Cultural Influences on Buying Decisions

Values

Language

Myths

Customs

Rituals

Laws

Components of

AmericanCulture

Material Artifacts


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Culture is...

Learned

Functional

Pervasive

Dynamic

Culture is...Having the quality or tendency to pervade or permeate:

the pervasive odor of garlic


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Value

Enduring belief that a specific

mode of conduct

is personally or socially

preferable to another

mode of conduct.


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Core American Values

Success

Materialism

Freedom

Progress

Youth

Capitalism

Core

AmericanValues


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Global Language Blunders

Chevrolets Nova translated to No Go

Coors Turn it Loose became

Suffer from Diarrhea

Toyotas MR2 sounded like aswearword in French

Coca-Cola in Chinese meansbite the wax tadpole


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social factors that affect consumer buying decisions

Social Influences

ReferenceGroups

Opinion Leaders

Family Members

Social Influences onBuying Decisions


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Reference Group

Agroup in society that influences an individualspurchasing behavior.


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Types ofReference

Groups

Direct

Indirect

Primary

Secondary

Aspirational

Non-aspirational

Implications of Reference Groups


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Implications of Reference Groups

They serve as information sources andinfluence perceptions

They affect an individuals aspirationlevels

Their norms either constrain orstimulate consumer behavior


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Opinion Leaders

An individual who influences the opinion of others.


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Family

Purchase Rolesin the Family

ChildrenInfluencePurchaseDecisions

Instigators

Influencers

Decision-Makers Purchasers

Consumers


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individual factors that affect consumer buying

decisions.

Gender

AgeFamily Life Cycle

PersonalitySelf-Concept

Lifestyle

IndividualInfluences

Individual Influences

h l i l f h ff b i


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psychological factors that affect consumer buying

decisions.

Psychological Influences

PsychologicalInfluences on

Buying Decisions

Perception

Motivation

Learning

Beliefs & Attitudes


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Perception

Process by which people select,

organize, and interpret stimuli

into meaningful and coherent

picture.


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Selective

Distortion

SelectiveRetention

Selective Exposure


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SelectiveExposure

SelectiveDistortion

Consumer notices certain stimuliand ignores others

Consumer changes or distortsinformation that conflicts

with feelings or beliefs

SelectiveRetention

Consumer remembers onlythat information thatsupports personal beliefs

A Consumers Selective Exposure


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p

Exposure to over 250advertisement messages per day

Notices only11 to 20 ads

M k i I li i f P i


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Marketing Implications of Perception

Important attributes

Higher price

Brand names

Quality and reliability

Threshold level of perception

Product changes

M l Hi h f N d


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Maslows Hierarchy of Needs

Maslows

Hierarchy of

Needs

Physiological

Safety

Social

Esteem

Self-Actualization

L i


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Learning

A process that creates changes in behavior, immediate or

expected, through experience and practice.


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Types of Learning

Types ofLearning Description

Experiential

Conceptual

An experience changes behavior

Not learned through directexperience

S i l G li i


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Stimulus Generalization

A form of learning that occurs when one response is

extended to a second stimulus similar to the first.

B li f d Attit d


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Beliefs and Attitudes

Belief

Attitude

An organized pattern of

knowledge that an individual

holds as true about his or her

world.

A learned tendency to respond

consistently toward a given

object.

31524649 consumer behaviour

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