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Consumer Behavior & Psychology

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Definition Consumer buyer behavior refers to the buying behavior of final consumers- individuals and households that buy goods for consumption- Kotler All these final consumers make up the consumer market

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Model of Consumer Behaviour How do consumers respond to various marketing efforts the company might use?

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Characteristics Affecting Consumer behaviour

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Social Factors Groups Family Roles & Status

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Personal Factors Age & life-cycle stage Occupation Economic situation Lifestyle Personality & self concept

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Psychological Factors Motivation Perception Learning Beliefs & Attitudes

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Types of Buying Decision Behaviour

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Complex Buying Behaviour Type of Product Expensive Risky Purchased infrequently Highly self-expressive Brand Must understand the information gathering and evaluation behaviour of buyers Need to help buyers learn about the product class, attributes and relative importance Describe benefits Print media Motivate stores sales people and buyers acquaintance to influence the final brand choice eg: Electronics

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Dissonance-reducing Buying Behaviour Type of product Expensive Risky Purchased infrequently Highly self-expressive Brand Provide a good price Offer convenience Mitigate dissonance - provide after sales communication with evidence and support to help consumers feel good about there product eg; Carpets, Furniture

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Habitual Buying Behaviour Type of product In expensive Frequently Purchased Familiar/ loyal Brand Provide a good price Offer Promotions Create top of mind use colors symbols (TV led advertising) eg; personnel care products

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Variety Seeking Buying Behaviour Type of product In expensive Frequently Purchased Familiar Large choice/variety Brand Market Leader create habitual behaviour Dominating shelf space Stocking up Reminder advertisements Challengers Offers lower price/special deals Coupons, samples Advertising that presence reason for trying something new eg; confectionary

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The Buyer Decision Process

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The Buyer Decision Process for New Products Consumer go through five stages in the process of adopting a new product: Awareness Interest Evaluation Trial Adoption

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Zero Moment of Truth

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Individual Differences in Innovativeness Marketing efforts in innovation

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Influence of Product Characteristics on Rate of Adoption Relative advantage Compatibility Complexity Divisibility Communicability