consumer behavior. introduction consumer behavior is 'the process and activities people engage...
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Consumer Behavior
INTRODUCTIONConsumer behavior is 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.'
Consumer behavior(in consumer business context) referred to as the study of when, why, how, where and what people do or do not buy products. It blends elements from psychology, sociology,social psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer.
Relationship marketing is an influential asset for customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Each method for vote counting is assumed as a social function but if Arrow’s possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonic, unanimity, homogeneity and weak and strong Paretooptimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer.
Internal influences
Consumer behavior is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings. consumer behavior concern with consumer need consumer actions in the direction of satisfying needs leads to his behavior of every individuals depend on thinking process
External influences
Consumer behavior is influenced by: culture,sub-culture, locality, royalty, ethnicity, family, social class, reference groups, lifestyle, and market mix factors.
Consumer Markets
Consumer Buying Behavior
Level of Involvement and Consumer Problem-Solving Processes
• Level of Involvement– High– Low– Enduring– Situational
• Routinized Response Behavior• Limited Problem Solving• Extended Problem Solving• Impulse Buying
Consumer Buying Decision Process
Problem RecognitionProblem Recognition
Problem RecognitionProblem Recognition
Information SearchInformation Search
Consumer Buying Decision Process
Information Search
• Internal
Information Search
• Internal • External
Problem RecognitionProblem Recognition
Information SearchInformation Search
Evaluation of AlternativesEvaluation of Alternatives
Consumer Buying Decision Process
Evaluation of Alternatives
Consideration Set (Evoked Set)
Evaluative Criteria
Problem RecognitionProblem Recognition
Information SearchInformation Search
Evaluation of AlternativesEvaluation of Alternatives
PurchasePurchase
Consumer Buying Decision Process
Postpurchase EvaluationPostpurchase Evaluation
Problem RecognitionProblem Recognition
Information SearchInformation Search
Evaluation of AlternativesEvaluation of Alternatives
PurchasePurchase
Consumer Buying Decision Process
Postpurchase Evaluation
Cognitive Dissonance
Did I Do the Right Thing?
SITUATIONALSITUATIONAL INFLUENCES INFLUENCES
• Physical Physical Surroundings Surroundings• Social SurroundingsSocial Surroundings• TimeTime• Purchase ReasonPurchase Reason• Buyer’s Mood and Buyer’s Mood and Condition Condition
Consumer Buying Decision ProcessConsumer Buying Decision Process
Possible Influences on Consumer Buying
Decisions
SITUATIONALSITUATIONAL INFLUENCES INFLUENCES
• PhysicalPhysical Surroundings Surroundings• Social SurroundingsSocial Surroundings• TimeTime• Purchase ReasonPurchase Reason• Buyer’s Mood and Buyer’s Mood and Condition Condition
PSYCHOLOGICALPSYCHOLOGICAL INFLUENCESINFLUENCES
• PerceptionPerception• MotivesMotives• LearningLearning• AttitudesAttitudes• Personality andPersonality and Self-concept Self-concept• LifestylesLifestyles
Consumer Buying Decision ProcessConsumer Buying Decision Process
Possible Influences on Consumer Buying Decisions
Psychological Influences on the Buying
Decision Process
• Perception– Information Inputs– Selective Exposure– Selective Distortion– Selective Retention
• Motives– Maslow’s Hierarchy of Needs– Patronage Motives
Maslow’s Hierarchy of Needs
Esteem Needs
Social Needs
Safety Needs
Psychological Needs
Self-Actualization
Psychological Influences on the Buying
Decision Process
• Learning• Attitudes• Personality and
Self-Concept• Lifestyles
SITUATIONALSITUATIONAL INFLUENCES INFLUENCES
• Physical Physical Surroundings Surroundings• Social SurroundingsSocial Surroundings• TimeTime• Purchase ReasonPurchase Reason• Buyer’s Mood and Buyer’s Mood and Condition Condition
SOCIAL SOCIAL INFLUENCES INFLUENCES
• Roles Roles • FamilyFamily• Reference Groups Reference Groups and Opinion Leaders and Opinion Leaders• Social ClassesSocial Classes• Culture andCulture and Subcultures Subcultures
PSYCHOLOGICALPSYCHOLOGICAL INFLUENCESINFLUENCES
• PerceptionPerception• MotivesMotives• LearningLearning• AttitudesAttitudes• Personality andPersonality and Self-concept Self-concept• LifestylesLifestyles
Consumer Buying Decision ProcessConsumer Buying Decision Process
Possible Influences on Consumer Buying Decisions
Social Influences
• Roles • Family Influences
– Consumer Socialization
• Reference Groups and Opinion Leaders
• Social Classes
Social Class Behavioral Traits and Purchasing Characteristics
Income varies among the groups, Prize quality merchandise but goals are the same Favor prestigious brandsVarious lifestyles: preppy, conven- Products purchased must re- tional, intellectual, etc. flect good tasteNeighborhood and prestigious Invest in art schooling important Spend money on travel,
theater, books, tennis, golf, and swimming clubs
Upper Class (14% of Population)Includes upper-upper, lower-upper, upper-middle
Behavioral Traits Buying Characteristics
Source: Adapted with permission from Richard P. Coleman, “The Continuing Significance of Social Class to Marketing,” Journal of Consumer Research, Dec. 1983, pp. 265-80, with data from J. Paul Peter and Jerry C. Olson, Consumer Behavior: Marketing Strategy Perspective (Homewood, Ill.; Irwin, 1987), p. 433
Social Class Behavioral Traits and Purchasing Characteristics
Often in management Like fashionable itemsConsidered white collar Consult experts via books,Prize good schools articles, etc., before Desire an attractive home in a purchasing nice, well-maintained Spend for experiences they neighborhood consider worthwhile for their Often emulate the upper class children (e.g., ski trips, college Enjoy travel and physical activity education)Often very involved in children’s Tour packages, weekend trips school and sports activities Attractive home furnishings
Middle Class (32% of Population)
Behavioral Traits Buying Characteristics
Source: Adapted with permission from Richard P. Coleman, “The Continuing Significance of Social Class to Marketing,” Journal of Consumer Research, Dec. 1983, pp. 265-80, with data from J. Paul Peter and Jerry C. Olson, Consumer Behavior: Marketing Strategy Perspective (Homewood, Ill.; Irwin, 1987), p. 433
Social Class Behavioral Traits and Purchasing Characteristics
Emphasis on family, especially for Buy vehicles and equipment economic and emotional support related to recreation, camp- (e.g., job opportunity tips, help in ing, and selected sports times of trouble) Strong sense of valueBlue collar Shop for best bargains at off- Earn good incomes price and discount storesEnjoy mechanical items and Purchase automotive equip- recreational activities ment for making repairs Enjoy leisure time after working Enjoy local travel, hard recreational parks
Working Class (38% of Population)
Behavioral Traits Buying Characteristics
Source: Adapted with permission from Richard P. Coleman, “The Continuing Significance of Social Class to Marketing,” Journal of Consumer Research, Dec. 1983, pp. 265-80, with data from J. Paul Peter and Jerry C. Olson, Consumer Behavior: Marketing Strategy Perspective (Homewood, Ill.; Irwin, 1987), p. 433
Social Class Behavioral Traits and Purchasing Characteristics
Often down and out through no Most products purchased are fault of their own (e.g., layoffs, for survival company takeovers) Ability to convert good Can include individuals on discards into useable items welfare and the homelessOften have strong religious beliefsMay be forced to live in less desirable neighborhoodsIn spite of their problems, often good- hearted toward othersEnjoy everyday activities when possible
Lower Class (16% of Population)
Behavioral Traits Buying Characteristics
Source: Adapted with permission from Richard P. Coleman, “The Continuing Significance of Social Class to Marketing,” Journal of Consumer Research, Dec. 1983, pp. 265-80, with data from J. Paul Peter and Jerry C. Olson, Consumer Behavior: Marketing Strategy Perspective (Homewood, Ill.; Irwin, 1987), p. 433
Social Influences
• Culture and Subculture– African-American Subculture– Hispanic Subculture– Asian-American Subculture