mn 3052 week2 consumer behaviour (2)
DESCRIPTION
aqTRANSCRIPT
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Dynamics of Consumer Behavior
Dr. G.D Samarasinghe Department of Management of Technology
University of Moratuwa
MN 3052:
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Leaning Outcomes
• Define consumer markets
• Construct simple models of consumer buyer behaviour
• Analyze factors influencing consumer behavior
• Explain the buyer decision process
• Differentiate the types of buying behavior
• Apply concepts in the Sri Lankan and Global markets
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Consumer Buying Behavior
• Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households - who buy goods and services for personal consumption.
• These final consumers make up the consumer market.
• The central question for marketers is:– “How do consumers respond to various
marketing efforts the company might use?”
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Model of Buyer Behaviour
ProductProductPricePricePlacePlacePromotionPromotion
Marketing andMarketing andother stimuliother stimuli
EconomicEconomicTechnologicalTechnologicalPoliticalPoliticalCulturalCultural
Buyer’s responsesBuyer’s responses
Buyer’s black boxBuyer’s black boxProduct choiceProduct choiceBrand choiceBrand choiceDealer choiceDealer choicePurchase timingPurchase timingPurchase amountPurchase amountBuyerBuyer
characteristicscharacteristics BuyerBuyerdecisiondecisionprocessprocess
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Consumer Behaviour Influences
Cultural
Culture
Sub-culture
Socialclass
Social
Referencegroups
Family
Rolesand
status
Personal
Age andlife-cycle
OccupationEconomicsituationLifestyle
Personalityand
self-concept
Psycho-logical
MotivationPerceptionLearning
Beliefs andattitudes
Buyer
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Culture
• Culture can be defined as the sum of learned beliefs, values, and customs that serve to direct consumer behavior of members of a particular society.
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Subculture
– Group of people
– With shared value systems
– Based on common life experiences
– And situations
Ex: Based on religion, age, race
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Social Class
• Relatively permanent
• Ordered divisions in a society
• Whose members share similar:– Values– Interests– Behaviors
Ex : Based on income & occupation (Lower – lower, lower – middle, lower – upper etc.)
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Social Factors
• Groups– Membership - primary and secondary– Reference and aspirational– Opinion leaders
• Family– Most important consumer influence– changing family roles and evolving lifestyles– children may influence strongly
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Social Factors
• Roles– Activities people expected
to perform by others
• Status– Each role carries a status
reflecting the general esteem society gives it
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Personal Factors
• Age
• Life-cycle stages -
• Occupation
• Economic situation
• Lifestyle
• Personality
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Age & Life Cycle Stages
• Bachelor Stage : young, single people not living at home
• Newly Married Couples : Young, no children
• Full nest 1 : Youngest child under 6 yrs• Full nest 2 : Youngest child 6 or over 6 yrs• Full nest 3 : Older marries couples with
dependent children
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Contd..
• Empty Nest 1 : Older married couples, no children living with them, Head of household is in labor force
• Empty Nest 2 : Same as above and head retired
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Personal Factors
• Occupation– May determine goods or services purchased– Identify occupations with product need– Specialized professional products
• Economic situation– Affects product choice– Indicator for income sensitive products
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Personal Factors
• Lifestyle– A person’s pattern of living as expressed by
psychographics– Profiles a person’s whole pattern of acting and
interacting with the world– Lifestyle classifications
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Personal Factors
• Personality– Unique psychological characteristics leading
to relatively consistent and lasting responses to one’s own environment
– Traits– Product and brand choices
• Self-concept– Self-image– Possessions reflect identity
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Psychological Factors
• Motivation
• Perception
• Learning
• Beliefs
• Attitudes
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Psychological Factors
• Motivation– Biological needs– Psychological needs
• Motive– Need sufficiently pressing– To drive a person to seek satisfaction
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Psychological Factors
1. Freud’s Theory of Motivation– Largely unconscious– Repression of urges– A person does not fully understand their own
motivation
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2. Maslow’s Hierarchy of Needs
Physiological needs
Safety needs
Social needs
Self-actualization needs
Esteem needs
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Psychological Factors
• Perception– Process by which people:– Select, organize and interpret information– To form a meaningful picture of the world
• Selective attention
• Selective distortion
• Selective retention
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Psychological Factors
• Learning
– Changes in individual behaviour– Arising from experience– Most human behaviour is learned
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Psychological Factors
• Beliefs– A descriptive thought that a person holds about
something
• Attitudes– A person’s consistently favorable or
unfavorable evaluations, feelings, and tendencies toward an object or idea
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The Buyer Decision Process
Needrecognition
Purchasedecision
Purchasedecision
Evaluation ofalternatives
Evaluation ofalternatives
Post purchasebehaviour
Post purchasebehaviour
Informationsearch
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Consumer Buying Roles
• Initiator• Influencer• Decider• Buyer• User
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Discussion on Contemporary Issues of CB in Sri Lankan and Global Context
• Green Consumerism
•Sacred Values and Ethics
•Impulse Buying in Retailing
•Ethnocentrism and Postmodernism