4. consumer behaviour

7/27/2019 4. Consumer Behaviour

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Study of consumer behavior, a vitalpart of marketing as marketing aimsto meet the needs and wants of the

consumer


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Give the Consumer what she/he wants servesas the evergreen dictum for smart marketing

In mass marketing understanding what eachindividual requires is not possible.

How does the consumer make the value selectionand goes for a particular Brand. Lot of research

done on the Psychological process that guidesconsumer behavior.

E.g. The value buyer seeks in a Car Functionalvalue, Social value, Status value, Economic value


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Buying Motives

Buying Habits

Consumer

Characteristics

Psychological process

Underlying

Buyer behavior

Stages in

Buying process

Participants &roles

BUYING

BEHAVIOR


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1. Personal Factors

a. Personal Demographics

b. Personal Psychographics

2. Socio Cultural Factors

a. Cultural

b. Social Groups/Personal Groups


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Age, Gender

Values

Life cycle

stage

Occupation

Personality

Self-

concept

Income

Lifestyle


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Includes Age, Gender, Stage in Life Cycle,Education, Occupation, Economic Position etc.

His Personal Bio Data, decides what & where

he will buy. Income related example Tea (A buyer from a

low income group may buy an unbranded localproduct from a ration shop, lower middle class

low priced A1 tea from a Kirana shop, middleclass reasonable good brand from Margin freechain, an upper middle class may go for Tetleyfrom a high end retail store.)


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Gender Men and women differ in theirpreference of perfume / Deodorant, watches,clothes etc.

Age Preference of TV channels, clothes etc Occupation Formal Clothes may be purchased

according to the occupation, Magazines etc


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Individuals may differ based on Personality, Lifestyle, selfconcept, value system, etc which impact buying behavior.

Difficult to understand.

1. Personality: Extrovert (impulsive, easily swayed byfriends and peer opinions), Introvert (slow in takingdecisions, likes to be alone). Compliance individuals(prefer known brands and like to conform to acceptednorms) , Aggressive individuals (like to attract attentionby using specific brands ) and Detached individuals (no

particular pattern). Determinants of personality areheredity, environment, and situations2. Life Style: Life Aspirations. Status & material prosperity.

Pace of life e.g. Club, Hotel, Dress, Jewelry purchase willbe affected by life style factors.


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3. Values A child growing up in U.S is exposed to thefollowing values: freedom, material comfort,humanitarianism etc. A child growing up in India isexposed to integrity, respect for elders, collectivism etc.

4. Self Concept How we view ourselves. Consumerschoose brands that are consistent to their self concept.A housewife may hesitate buying readymade curriesbecause it may be inconsistent with her concept of

herself being a hardworking housewife. A socialworker may choose khadi clothes.


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Multi-tasking

Time-starved

Money-constrained


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Cultural Factors:

Acquired mostly in the Childhood.

Culture includes religion, Caste, Language,

Tradition etc. Influences buying behavior deeply.

Cultural diversity operates in dress, eating habits,marriage practices, festivals etc. Specially in therural areas.

Culture influences Individuals life style.

Subculture (caste, sub sect) influences theindividual more deeply.


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Man is influenced by the society and he influencesthe Society.

Performs different Roles in the family, at office, asa part of a professional group etc.

A persons reference group are all the groups thathave a direct or indirect effect on his behavior

Three Consumer Reference Groups

1. Primary group(Intimate Group) family, friends,

neighbors2. Secondary Group Religious, professional groups

3. Large Social Class - Working class, Upper class, middleclass


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1. Intimate Group: Family (family of orientation andfamily of procreation), Peer Group, friends, closecolleagues.

face to face & Frequent interaction. Deep influence.

2. Secondary Group: Larger & less intimate.Occupation, Professional group, Place of Residence,Club etc. May exhibit similar buying habits.

3. Larger Social Class: Influence of Income Class,Occupation, Position, Area etc. Similar buyingbehavior.


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An opinion leader are influential members of a groupto whom others turn for advice regarding specificproducts.

They are highly confident, socially active, andinvolved with the particular product category.

Marketers try to reach out to the opinion leaders byidentifying their demographic and psychographiccharacteristics, identifying the media they read anddirecting messages at them

Every group has opinion leaders example -Villageleaders, Church priests etc.

Opinion leaders play a special role in rural marketing


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Consumer decision is in response to somestimulus.

Psychological Process pertaining to decision

making, including-Motivation (Springs from his motives)

-Perception (his interpretation)

-Learning (what he understands)-Memory (Stays in his mind)


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Motivation

MemoryLearning

Perception


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Freuds

Theory

Behavior

is guided by

subconscious

motivations

Maslows

Hierarchy

of Needs

Behavior

is driven by

the lowest,

unmet need

Herzbergs

Two-Factor

Theory

Behavior is

guided by

motivating

and hygiene

factors


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A motivated person is ready to act next comes how theconsumer views the market place. Her perception is moreimportant than the reality

Perception is defined as the process by which anindividual selects, organizes and interprets stimuli intomeaningful pictures

Buyer makes sense out of the information she receives. E.g. House the information coming from builder,

upcoming projects, feedback from friends etc.

People are selective in 3 aspects with respect to perception.

- Selective in Attention (voluntary and involuntaryattention, an average person is exposed to about 1500brand communications)- Selective in Distortion (tendency to interpret theinformation in a way that suits our preconceptions)- Selective in Retention


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Learning Individuals acquire the product andconsumption knowledge and experience thatthey apply to future purchase behavior.

Marketer has a great role to play.


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All info gets deposited and comes as a flashback with the stimuli.

Lot of research done by marketers.

Catchy & Repeat messages.


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How, when and where do they buy.

The types of consumer goods purchased

- Convenience Goods

- Shopping Goods

- Specialty Goods


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Convenience goods: Purchased often as a routine.No planning involved. Recurring need. Manyoutlets. Substitute brand is possible. Example Bread, milk, tea powder etc.

Shopping goods: Not required so frequently.Clothes, Shoes, electrical appliances. Considerableexpenditure. Limited outlets.

Specialty goods: High Priced e.g. cars, Jewelry, Club

Membership etc. Very limited outlets, mostly direct.Customer gives lot more thought and time. Selectivedistribution and Showrooms. Entire family may beinvolved in decision making


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Store Loyals shop at the same outlet mostof the time

Store Switchers shop at different stores

Cherry Pickers extremely price sensitive,they are out and out for saving money. Theyshop at many outlets to get the best

bargains.Empty nesters prefer convenience of home delivery

/ direct marketing


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1. Problem Recognition (Need)2. Awareness (Information Search)3. Comprehension (evaluate the alternatives)4. Attitude (favorable or unfavorable)5. Legitimization (actually go for it or not)6. Trial7. Adoption (Purchase decision)8. Post Purchase decision (restlessness)

e.g. Bike or a house (or college selection).This model works more for high volume purchase,which is more complex, Individual buyer andbuying situation.


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Innovators

Early Adaptors

Early Majority

Late Majority

Laggards


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Innovators constitute 2.5% of the market. High risktaking individuals and opinion leaders.

Early adopters Constitute 13.5% of the total market.Have same characteristics as the innovators and are

price insensitive. Early Majority comprise of 34% of the total market.

Shift to new product after taking the opinion ofinnovators and early adopters. Moderate risk takers.

Late Majority 34% of the market. Conservative andslow decision makers.

Laggards Constitute 16% of the market. loyal toexisting brands. Very conservative. Buy the newproducts when price comes down.


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Initiators

Influencers

Deciders

Payer

Users

Role of tweens as influencers has become

prominent in household purchases


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Product Motives

1. Emotional product motives

2. Rational product motives

Patronage motives

1. Emotional patronage motives

2. Rational patronage motives


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What are the personal demographic andpsychographic factors which affect a consumers buyingbehavior?

What are the consumer reference groups?

Who is an opinion leader?

What are the types of consumer goods?

What are the stages that consumer goes through inbuying decisions?

List the consumer behavior types as far as adoptingnew products is concerned.

4. consumer behaviour

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