Download - 1. Managing the Consumer
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SEM - IMARKETING MANAGEMENT I
CONSUMER BUYER BEHAVIOR
Consumer Buyer Behavior
Defn : The buying behavior of final
consumer individuals and householdsthat buy goods and services for personalconsumption
Consumer Market
Defn : All of these final consumers
combine to make up the consumer market
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Consumer Behavior Model
There are 3 important elements :
1. The Environment2. Buyers Black Box
3. Buyers Response
TheEnvironment
BuyersBlack
Box
Buyer
Response
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The Environment
Marketing Stimuli Other
1. Product 1. Economic2. Price 2. Technological
3. Place 3. Social / Cultural
4. Promotion 4. Political
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Buyers Black Box
1. Buyers Characteristics
2. Buyers Decision Process
Buyers Responses
1. Buying attitude and preferences
2. Purchase behavior
3. Brand and company relationship
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Characteristics affecting Consumer Behavior
1. Cultural
2. Social
3. Personal
4. Psychological
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1. Culture
The set of basic values, perceptions, wants andbehaviors learned by a member of society fromfamily and other important institutions
e.g. A child generally learns following values
Success and achievement, Activity and
involvement, Respect to elders etc.Marketers are expected to spot the culturalshift to launch the new products.
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Sub-Culture
Each culture contains smaller sub-cultures orgroups of people with shared value systemsbased on common life experiences.
e.g. Bengalis, Marathi or Christian, Muslim etc
Many brands now target specific sub-cultureswith marketing plan tailored for specific needs
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Social Class
Every Society has some form of social classstructures.
Social classes are relatively permanent andordered divisions whose members share similarvalues, interest and behaviors
Generally social class is determined by variousfactors such as occupation, income, education,wealth etc.
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2. Social Factors
Consumer behavior is also influenced by Socialfactors such as consumers small groups, family,social roles and status
Many small groups influence persons behavior
Groups that have direct influence to which a
person belongs are called membership groupsGroups that does not have direct influence arecalled reference groups
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CONSUMER BUYER BEHAVIOR
Opinion Leader
Person within a reference group who, becauseof special skills, knowledge, personality, orcharacteristics exert social influence on others
A study reveals that Opinion Leaders have 4time more influence than a common consumer
Many companies try to identify Opinion Leadersfor endorsing their product
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Social
Various other Social factors include :
1. Word of Mouth Publicity2. Online Social Networks
3. Family
4. Roles and Status
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3. Personal Factors
A buyers decision is also influenced by personalcharacteristics such as buyers age and lifecycle stage, occupation, economic situation,lifestyle, personality and self concept
Peoples buying decisions reflect and
contribute to their lifestyle their wholepattern of acting and interacting in the world.
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Personal Factors
1. Age and Life Cycle Stages
People change the goods and services they buyover their lifetime.
Tastes in food, clothes, furniture and recreationare often age related
Traditionally family life cycle stages includeyoung singles and married couples with children
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Personal Factors
2. Occupation
A persons occupation affects the goods andservices bought.
Blue collar workers tend to buy more ruggedwork clothes where as executives prefer
business suits
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Personal Factors
3. Lifestyle
A persons pattern of living as expressed in hisor her activities, interests and opinions.
People coming from the same sub-culture mayhave quite different lifestyles.
It involves measuring Activities, Interests andopinions.
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Personal Factors
4. Personality and Self Concept
The unique psychological characteristics thatlead to relatively consistent and lastingresponses to the ones own environment.
Brand personality is the specific mix of thehuman traits that may be attributed to aparticular brand
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Personal Factors
4. Personality and Self Concept
Brand personality traits are :a. Sincerity
b. Excitement
c. Competence
d. Sophistication
e. Ruggedness
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4. Psychological Factors
A persons buyering choices are furtherinfluenced by four major psychological factors :
a. Motivation
b. Perception
c. Learning
d. Beliefs and Attitudes
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4. Psychological Factors
Motivation
A need that is sufficiently pressing to direct theperson to seek satisfaction of the need
Perception
The process by which people select, organise
and interpret the information to form ameaningful picture of the world
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4. Psychological FactorsLearning
Changes in an individuals behavior arising fromexperience.
Beliefs
The descriptive thought that a person holdsabout something
AttitudeA persons consistently favorable or unfavorableevaluation, feelings and tendencies toward anobject or an idea
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Types of Buying Decision BehaviorComplex Buying Behavior
Consumer buying behavior in situations
characterised by high consumer involvement ina purchase and significant perceived differencesamong brands
Dissonance- reducing Buying Behavior
Consumer buying behavior in situationscharacterized by high involvement but fewperceived differences among brands
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Types of Buying Decision BehaviorHabitual Buying Behavior
Consumer buying behavior in situations
characterized by low consumer involvement andfew significantly perceived brand differences
Variety Seeking Buying Behavior
Consumer buying behavior in situations
characterized by low consumer involvement butsignificant perceived brand differences
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Buyer Decision Process
1. Need Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase Decisions
5. Post Purchase Behavior
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Buyer Decision Process
1. Need Recognition
The first stage of the buyer decision process, inwhich the consumer recognizes a problem orneed
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Buyer Decision Process
2. Information Search
The stage of the buyer decision process, inwhich the consumer is aroused to search formore information. The consumer may simplyhave heightened attention or may go into anactive information search
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Buyer Decision Process
2. Information Search
Various information sources are :
Personal : Family, friends, neighbors
Commercial : Advertising, Salespeople, dealer
Public sources : mass media, internetexperiential sources : handling / using product
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Buyer Decision Process
3. Evaluation of Alternatives
The stage of the buyer decision process inwhich the consumer uses the information toevaluate the alternative brands in the choice set
Marketer needs to know as how the consumerarrives at a particular brand so that they cantake steps to influence them
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Buyer Decision Process
4. Purchase Decision :
The buyers decision about which brand topurchase.
Two factors :
Purchase intentionPurchase decision
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Buyer Decision Process
5. Post Purchase Behavior :
The stage of buyer decision process in whichthe consumer take further action after purchasebased on their satisfaction or dissatisfaction
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Buyer Decision Process for New Products
Adoption Process :
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
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CONSUMER BUYER BEHAVIOR
Individual Differences in Innovativeness
1. Innovators (2.5%) try new ideas at risk
2. Early Adopters (13.5%) opinion leaders
3. Early Majority (34%) adopt new ideasbefore average person
4. Late Majority (34%) adopt only after
majority people tried it5. Laggards (16%) adopt new product when it
becomes tradition