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

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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