Marketing – Module 2

Consumer Behaviour

• Flying Machine

• Study of how individuals, groups and organizations select, buy, use & dispose of goods, services, ideas or experiences to satisfy their needs and wants

• Factors – Cultural, Social and Personal

Cultural Factor

• Fundamental determinant of a person’s want and behaviour

• Child in US• Child in India• Subculture• Social Stratification

Socio – Economic Classification

Social Factor

• Reference Groups– Membership Groups– Primary Groups– Secondary Groups– Aspirational Groups– Dissociative Groups

• Expose individuals to new behaviors and lifestyles• They Influence attitudes and self concept• Create Pressure for conformity • Opinion Leader

Social Factor

• Family– Family of Orientation

• Parents and Siblings• Orientation towards religion, politics and Economics and a

sense of personal ambition– Family of Procreation

• Spouse and children• Husband wife joint decision making• Increase in the amount of rupee spent• The direct and indirect influence wielded by children

• Roles and Status

Personal Factor

• Age and Stage in the life cycle– Taste in food, clothing and recreation is directly

related to our age– Consumption is shaped by the family life cycle– Critical Life Events or Transitions– Psychological Life-Cycle

• Occupation and Economic Circumstances– Recession

Personal Factor

• Personality and Self-Concept– Brand Personality– Aaker

• Sincerity• Excitement• Competence• Sophistication• Ruggeddness

• Lifestyles and Values

Key Psychological Process

Motivation

• Freud’s Theory

• Maslow’s Theory

• Herzberg’s Theory

Perception

• Selective Attention

• Selective Distortion

• Selective Retention

Learning

• Drive – Strong Internal Stimulus impelling action

• Cues – minor stimuli that determine when, where and how a person responds

• Discrimination – Differences in sets of similar stimuli and can adjust our responses accordingly

EMOTIONS and MEMORY

• STM

• LTM

Consumer Buying Process

Problem Recognition

• Internal Stimulus

• External Stimulus

Information Search

• Information Sources

• Search Dynamics– Total Set– Awareness Set– Consideration Set– Choice set– Decision

Evaluation of Alternatives

• Attributes

• Beliefs and Attitudes

• Expectancy Value Model

Purchase Decision• Heuristics

– Conjunctive Heuristics– Lexicogrpahic Heuristics– Elimination-by-aspects Heuristics

• Intervening Factors– Attitude of others– Unanticipated Situational Factors

• Functional Risk• Physical Risk• Financial Risk• Social Risk• Psychological Risk• Time Risk

Post Purchase Behaviour

• PP Satisfaction

• PP Actions

• PP Uses and Disposal

Types of Consumer Buying Decisions

  TYPES OF CONSUMER BUYING DECISIONS

DIFFERENCE BETWEEN BRANDS

  HIGH INVOLVEMENT LOW INVOLVEMENT

VERY SIGNIFICANT COMPLEX BUYING BEHAVIOUR

VERIETY / NOVELTY SEEKING BEHAVIOUR

NO SIGNIFICANCEDISSONANCE

REDUCING BEHAVIOUR

HABITUAL BUYING BEHAVIOUR

Organizational Buying vs Household Buying

• Fewer, Larger Buys• Close Supplier Customer Relationship• Professional Purchasing• Multiple Buying Influencers• Multiple Sales Calls• Derived Demand• Inelastic Demand• Fluctuating Demand – Bull Whip Effect• Geographically Concentrated Buyers• Direct Purchases

Buying Situations

• Straight Rebuy

• Modified Rebuy

• New Task

Buying Roles

• Initiators• Users• Influencers• Deciders• Approvers• Buyers• Gatekeepers

Buying Motives• Product Buying Motives

– Emotional Product Buying Motives• Pride, Imitation, Affection, Comfort, Attraction, Ambition, Distinction,

Recreation, Habit – Rational Product Buying Motives

• Safety, Economy, Low Price, Suitability, Quality, Durability, Convenience

• Patronage Buying Motives– Emotional Patronage Buying Motives

• Appearance, Display, Recommendation, Imitation, Prestige, Habit– Rational Patronage Buying Motives

• Convenience, Price, Credit, Services, Efficiency, Choice, Relationship, Reputation

LA FIN