buyer behaviour analysis introduction consumer decision making internal variables affecting consumer...
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Buyer Behaviour Analysis Introduction Consumer Decision Making Internal Variables affecting Consumer Decision
making: Perception Learning & Memory Motivation & Values The Self Personality & Lifestyles Attitudes Attitude change & interactive communication
Buyer Behaviour Analysis External Variables affecting
Consumer Decision making: Group influence & opinion Leadership Income & Social Class Ethnic, Racial and religious subculture Age subculture
Consumer behaviour models PLC and consumer behaviour
Perspective
Customer satisfaction factor Will he/she repurchase Will he/she recommend to others
Product performance Service facilities Environmental consequences
Post-purchase issues
Situation factors like display, proximity etc Other factors affecting customer choice
Purchase experience (stressful or pleasant) What does purchase reveal about consumer
Purchase issues
Consumers’ attitude towards attributes of product or services How do consumers infer superiority
Need of product or service Sources of info Alternative choices
Pre-purchase issues
Marketers’ perspectiveConsumers’ perspective
Purchase status
Consumer Decision MakingType of organisational buying decisions
ManyHighExtensive problem solving
New task
One or fewModerate
Limited problem solvingModified rebuy
Automatic reorder
LowHabitual decision makingStraight rebuy
Buyers involved
RiskExtent of effortBuying situation
• B2B e-commerce: involves internet transaction for information exchange, transaction and after sales service
Problem Recognition Need recognition:
Example: need for petrol when you run out of it Opportunity recognition:
Person who craves for a flashier model of car or audio system
Exposed to better quality & different products Change in circumstances:
Goes to college from school Gets a job after degree Purchases are made to adapt to changes
Advertising that provides information into what is needed to “live good life”
Pre-purchase Information Search Internal search:
Scanning own memory banks of past data Experience
External search: Ads Friends Internet People who are knowledgeable People who have made similar purchases
Other information: Heuristics (mental shortcuts)
Brand name price
Simply imitate others
Evaluation of Alternatives
Categorising product evaluation: Subordinate level: Individual brands Basic level: classifying products/grouping Super-ordinate level: more abstract like in case of
dessert, health drink, audio-systems, entertainment etc
Evoked set Inert set Inept set• Products/brands already in memory• Prominent products/ brands consumer like to consider
• Consumer is aware of, but would not consider buying
• Not at all in consumer’s mind
Consumer Decision Making Decision making by family:
House hold needs Family size
Extended family (3 generations) Nuclear family
Family composition/structure Traditional Non-traditional
Childless married couple Single person Single parent Room-mate Mixed family
Family life cycle Identifying influencers and decision makers:
adults/children/age/earning members
Family Life Cycle
Bachelor I Bachelor II Bachelor III
Young couple Childless couple Older couple
FullNest
I(<6)
FullNest
II(>6)
DelayedFull Nest
III(<6)
SP I SP II SP III
One adult HH
Two adult HH
Two adult +Children HH
Youngest child age
One adult +Children HH
Age of person <35 years 35 to 64 years >64 yearsSP: Single parent
Life Cycle Effects on Buying Young bachelors & newly weds:
“modern” sex-roles & attitudes Bars, concerts, movies, restaurants, branded
goods, above average spending Families with young children: health foods,
baby products Families with older children: junk foods,
education, games, outings Single parents: baby sitters Older couples/bachelors: home
maintenance, lawn maintenance, clubs, religious discourses
Family Decision Making(The Intimate Corporation)
HH decisions: Consensual purchase decision:
Pre-purchase discussions Post-purchase responsibilities
Accommodative purchase decisions: conflict resolution; prioritize needs & desires
Interpersonal need (family HH vs bachelor HH) Product utility Responsibility (for purchase, payment & maintenance) Power of influence of some over others within HH
Family Decision Making(The Intimate Corporation)
Sex-roles & decision making responsibilities: “who wears pants” in the HH Autonomic decision:
Car selection – male Interior decoration – female
Syncratic decision: vacation destination Identifying decision maker:
FFO: family financial officer Traditional ‘male’/’female’ tasks Individual decisions
High/low class socio-economic Purchasing ‘masculine’ & ‘feminine’ products Spousal resources (who contributes more) Experience of previous purchase
Family Decision Making(The Intimate Corporation)
Children as decision makers (consumers-in-waiting):
Sex-role socialisation by children: pick-up concept of gender identity at very early age in the choice of:
Toys Games Books/Cartoons
Cognitive development: children pass through distinct stages of cognitive development in handling info & taking decisions
Limited: <6 years age – do not employ storage and retrieval Cued: between 6 to 12 years – employ storage and retrieval Strategic: >12 years age – spontaneously employ storage &
retrieval
Internal Variables Affecting Consumer Decision Making
Perception Learning & memory Motivation & values The self Personality & lifestyles Attitudes Attitude change & interactive
communication
Perception Is the process by which sensations (sight,
sound, smell & touch) are selected, organised & interpreted
Sight: vision – color – product/packaging/logo/cultural preferences
Sound: relaxation/stimulate/disturb/annoy/destroy
Smell: (odor) evoke memories/relieve stress good/bad feelings
Brain vs fragrance One smell masking other smells (liquor/cigarettes)
Perception
Taste: strong preferences to sweet, sour, spicy, bitter (macho!), combination tastes
Smell and taste combination Touch: skin sensation at different parts of
body
CoarseCottonDenimLow class
FineSilkWoolHigh class
RemarksFemaleMalePerception
Perception
Sublimal perception: Stimulus below level of consumer’s awareness,
but when discovered creates excitement Sublimal techniques: in print, sound & images
Interpretation by consumers to different sensatory stimulus
Consumer assigns meanings based on beliefs “Eye of the beholder” – interpretational
biases based on color, smell, taste and touch
The Self Sex roles:
Male: self assertion & mastery Female: fostering of harmonious relations
Gender vs sexual identity: Society decides what men & women should do Sex-typed traits: macho / beauty Sex-typed products:
Bicycles Watches Spectacles
The Self Female sex roles:
New managerial class of women Housewife / caring Submissive Sexual objects for the pleasure of / or entice men’s attention
Male sex roles: Tough, aggressive, muscular Enjoys sports More compassionate Men as dumbs / dummies
Virtual models and their acceptance
The Self Body beautiful and relating to stereotypes:
Actors, models, sports persons, celebrities Gyms & cosmetic surgery
Multi-cultural physical dimensions of body: Plump vs slim
Body decoration: Tradition Place them in gender category Sex-role identification Status / rank identification Sense of security (five fingers-five rings, lucky charms,
precious stones) Tattoos & body piercing
Personality & Lifestyles Personality dimensions:
Old fashioned, traditional Lively Serious, intelligent, efficient Glamorous, romantic, sexy Rugged, tough, athletic, outdoor type
Lifestyles: Who we are What we do How we spend time and money Lifestyle tend to show group
mentality Product complementaries
Pers
on
Product
Setting
LIFESTYLE
Personality & Lifestyles Lifestyle Dimension can be created around:
Activities: work, hobbies, club activity, vacation Interests: family, job, community, fashion Opinions: self, politics, economics, future, culture Demographics: age, education, income, stage in life-
cycle VALS (values & lifestyles) System: developed by
SRI International, USA Principle oriented Status oriented Action oriented On top: Actualizers with abundant resources On bottom: Strugglers with minimal resources
VALS Network
Innovators
Survivors
Thinkers Achievers Experiencers
Believers Srtivers Makers
High Resources
Low Resources
Ideals Self-expression
Achievement
Personality & Lifestyles
Lifestyle Typology & geo-demographics Lifestyle differences across regions:
M/s EXPERIAN, UK’s “Global Mosaic” grouped 631 differences to 14 common lifestyles, classifying 800 million who cover 80% of world GDP
Consumer trends: Decline in concern for environment Emphasis on value of time saving products Decreased emphasis on dieting & nutritional foods Moving towards a more laid back lifestyle and
work environment
Attitudes Attitudes serve that function of consumers’
motive, in expectation of future events Utilitarian function: developing a positive
attitude if you like the taste (cheese) Value expressive function: what sort of women
read “Cosmopolitan”; what the product says about him or her as person
Ego defensive function: product that helps one to project ‘ macho’ or such image
Knowledge function: attitudes formed as result of need for meaning; influenced by information providing campaigns
Attitudes Three hierarchies of attitudes: (ABC model of
attitude) Cognition: attitude based on cognitive information
processing (learning) Behavior: attitude based on behavioral learning
process Affect: attitude based on hedonic consumption
(experimental) Attitude towards product & ads may vary Principle of cognitive consistency: harmony
among thoughts, feelings & behavior Theory of cognitive dissonance: when
confronted with inconsistencies among attitudes and behavior, one will resort to this “dissonance” by changing attitude or behavior
Attitudes Multi-attribute Attitude Model: (a market
research favourite) measures overall attitude score in relation to product attributes (Levis Jeans, Life Buoy, Ponds, Wills)
Attitudes towards product use & act of buying:
A0= Positive attitude to its use Aact= Attitude towards act of buying (garlic
pills, gym (weight loss), health food, fruits) Attitudes tend to change with age in
different age groups