influencing consumers behaviour

Influencing Consumer’sBehaviour

Prof. Prashant Kumar GuptaJain College of BBA, BCA and B.Com.

Consumer Buying Behavior

The buying behavior of final consumers—individuals and households who buy goods and services for personal

consumption.

Consumer Market

All the individuals and households who buy goods and services for personal consumption.

Lets Revise…!

Influencing Consumer Behaviour

Cultural Factors

Culture

Sub Culture

Social Class

Social Factors

Reference Groups

Family

Roles &Statuses

Personal Factors

Age & Stage In The Life Cycle

Occupation & Economic Circumstances

Personality & Self-Concept

Lifestyle & Values

Key Psychological Factors

Motivation

Perception

Learning

Memory

Culture is the fundamental determinant of a person’s wants and behaviour.

Set of values, perceptions, preferences and behaviours acquired from family and key institutions in the process of growing up.

If a person is born in US then the values he will look for will be success, efficiency, comfort, freedom,

progress, etc.A person born in middle class in India will be

exposed to values like honesty, integrity, respect, hard work, sacrifice, etc.

Cultural factors :Culture

Culture includes smaller sub-cultures which provide more specific identification.

These include nationalities, religions, racial groups and geographic regions.

Cultural factors :Sub-Culture

Homogeneous divisions in society like caste in India or the seven classes in the US.

Indian Marketers use the term socioeconomic classification, which uses the combination of education and occupation of

chief wage earner to classify buyers in urban area

Cultural factors :Social Class

People in same social class behave in similar manner. They have similar dress, speech, preferences, etc.

People are perceived to be in inferior or superior position according to their social class.

Individuals can move up and down in the social class ladder.

Many variables together define social class like income, occupation, wealth, educatio,etc.

Features of social class

All groups which have direct or indirect influence on behaviour and attitude.

Groups having direct influence are called membership groups.

Primary groups consist of people with there is fairly continuous and informal interaction like friends, family

and co-workers.

Secondary group includes religion, professional and trade-union groups which are more formal and have less

interaction.

SOCIAL FACTORS :Reference Groups

Its important to note that people also get influenced by groups they do not belong to.

Aspirational groups of which an individual wishes to be part of.

Dissociative group of whose values and behaviour are not acceptable for an

individual.

Most influential primary reference group.

Family of Orientation consists of parents and siblings from where orientation is acquired

towards religion, politics and sense of ambition, love, etc.

Family of Procreation which includes spouse and children.

SOCIAL FACTORS :Family

Person’s position in each group can be defined in terms of role and status.

Role is the activities that a person is expected to perform.

Each role carries a status like a CR has more status than other students.

SOCIAL FACTORS :Roles and Statuses

Consumption is decided by the family life cycle.

Life events like marriage, career change, etc. should also be considered.

PERSONAL FACTORS :Age & Stage In The Life Cycle

Consumption Patterns are affected by occupation.

Economic circumstances like spendable income, savings play an important role.

PERSONAL FACTORS:Occupation & Economic Circumstances

Personality- Set od psychological traits that lead to consistent responses to environment.

Personality can be used to analyse consumer brand choices.

Following five traits have been identified by Jenifer Aaker from Stanford:-

1.Sincerity:down-to-earth, honest, wholesome and cheerful2.Excitement: daring, spiritual, imaginative and up-to-date3.Competence: reliable, intelligent and successful4.Sophistication: upper-class and charming5.Ruggedness: tough

PERSONAL FACTORS

:Personality

Consumers choose products and services as per following:-1. Actual self-concept (how one views oneself)2. Ideal self-concept (how one would like to view oneself)3. Others self-concept (how one think others see oneself)

PERSONAL FACTORS :Self Concept

People from same culture, subculture, social class, etc. may have different lifestyles.

Lifestyle is the pattern of living in terms of activities, interests and opinions.

PERSONAL FACTORS :Lifestyle and Values

Person can have many needs Biogenic needs- Arising from hunger, thirst

or discomfort Psychogenic Needs- Need for recognition,

esteem or belonging Need + Sufficient Intensity = Motive Motive drives a person to act

Psychological Processes:Motivation

Freud’s Theory

Maslow’s Theory

Herzberg’s Theory

Motivation :Three Theories

Sigmund Freud

Abraham Maslow

Fredrick Herzberg

Psychological factors that shape the behaviour are unconcious

Eg: A person is not clear with what are his motivations

Freud’s Theory

Maslow’s Theory

Two factor theory Dissatisfiers: Factors that cause dissatisfaction Satisfiers: Factors that cause satisfaction

Avoid dissatisfiers like poor service Satisfiers must be present like good service

Herzberg’s Theory

A motivated person acts which is influenced by his or her perception of situation.

Perception is the process by which an individual selects, organises and interprets information inputs to create a meaningful picture of the world

People have different perceptions because of selective attention, selective distortion and selective retention.

Psychological Process:Perception

Change in individual’s behaviour from experience is learning.

Memory can be short term or long term. Point of importance is memory retrieval.

Other Psychological Processes :Learning & Memory

Thank You…!