It is a Lucid description and simple presentation on Consumer psyche for making purchase decisions.

1. CONSUM R B H
E E AVIOUR
?
?
CIMS

2. • WHY PEOPLE BUY ? WHAT IS THE
PSYCHOLOGICAL PROCESS OF
BUYING ?
• HOW PEOPLE BUY?
• WHY PEOPLE CHOOSE A
PARTICULAR BRAND OVER OTHER?
• HOW THEY BEHAVE AFTER A
PURCHASE?
• WHERE THEY BUY?
CIMS

3. What is Consumer
Behaviour?
Those activities directly involved
in obtaining , consuming and
disposing of products and
services, including the decision
processes that precede and follow
these actions
CIMS

4. This study draws on concepts
from various other disciplines
• Psychology
• Sociology
• Economics
• Marketing
CIMS

5. APPLICATION OF Consumer
Behavior Studies
• MARKET SEGMENTATION
• BRAND POSITIONING
• MARKETING COMMUNICATION
CIMS

6. Evolution of Marketing Concept
Evolution of Marketing Concept
Production Concept Product Concept
Product Concept
I have produced something , Let me add few new
Customers will accept it features to my
product
Selling Concept
Selling Concept
Push the products in
the market by sales
promotion methods
Marketing Concept
Marketing Concept
Focus on what consumers
need or want
CIMS

7. FACTORS WHICH AFFECT
CONSUMER DECISION
CIMS

8. • DEMOGRAPHIC VARIABLES
• PSYCHOGRAPHIC VARIABLES
• CULTURAL FACTORS
• SOCIAL FACTORS like INFLUENCE
OF REFERENCE GROUPS
CIMS

9. PSYCHOGRAPHIC FACTORS
PSYCHOGRAPHIC FACTORS
CIMS

10. HIGH vs. LOW Involvement
GOODS or SERVICES
• LOW INVOLVEMENT Repeat Purchase
FELT NEED Purchase +/-EXPERIENCE (learn) Attitude
• HIGH INVOLVEMENT PSYCHOLOGICAL AND OTHER FACTORS
Need Information Evaluation of
Recognition Search alternatives
Post purchase
Purchase Decision
behavious
CIMS

11. CONSUMER MOTIVATION
Perception, Social Factors, Personal
factors, Cultural factors
Marketers Try to stimulate
Marketers Try to stimulate
this need
this need
Unsatisfied need /unfulfilled Need
Unsatisfied need /unfulfilled Need Desire
Desire
Physiological
Physiological Psychological
Psychological Motive
Motive
Known or
Known or Expressed or
Expressed or
unknown Hidden ACTION
ACTION
unknown Hidden
CIMS SATISFACTION DISSATISFACTION

12. We Are Governed By Our Perceptions
We Are Governed By Our Perceptions
We use our perceptions to minimize load on
our Brain because we are unable to
process a huge load of information that
we receive everyday.
CIMS

13. DEVELOPING Consumer
Perception
Perception
Perception ACTION
ACTION
CIMS

14. ATTITUDE
ATTITUDE R
E
A
PERCEPTION
PERCEPTION
LEARNING
PERCEPTION
PERCEPTION
LEARNING L
W
BELIEF
BELIEF O
R
OTHER FACTORS L
OTHER FACTORS
D
CIMS

15. ELEMENTS of PERCEPTION
ELEMENTS of PERCEPTION
• SELECTIVE ATTENTION – NEED BASED
ATTENTION
• SELECTIVE DISTORTION – PERCEPTUAL
BLOCKING
• SELECTIVE RETENTION – ONLY REMEMBERING
THAT WHAT WE NEED TO REMEMBER
• JUST NOTICEABLE DIFFERENCE(JND)
• HALO EFFECT
• PERCEPTION OF COLOR , DESIGN etc
CIMS

16. How we perceive things or persons that depends on our attitude ,
Interest , experience, expectation and on certain attributes of the things
.
itself
We usually notice things which we have
interest in “ Oh ! This is like my own
car !!!”
‘We are influenced by our experiences and
experience forms our attitudes ‘- “Kolkata
Traffic is bad”.
bad
Our Expectations influence our perception
towords something. ”The food quality of
five star hotel must be good , because we
expect high service from them “
CIMS

17. Something that is golden in color seems “precious“.
“ Foreign “ means High quality.
“ Japanese“ means “Highly technical and good quality ”
“ Horse” means speed.
“ Fragrance/Perfume “ elicits a feeling of “wellbeing’.
“Bright Colors” means ‘exuberance’ or ‘Fun’.
“Green” means fresh or young.
“ fair complex means beautiful”
“ Sony makes good quality Television , their Mobile Phones should be also good”
“ Made in India “ confers to compromised quality.
“ Athletes make good sales people”
“ Anything that is Diamond Shaped evokes a feeling of “preciousness”.
“ Anything natural has low side effects”
“ Bengalis are sweet lovers”
“ South Indians have not much varieties in their food ”
“ Bombay is a costly city ”
CIMS

18. MEMORY(EXPERIENCE)
EXPERIENCE
Rehearsal
Sensory
inputs Short Term Long Term
Sensory Memory Memory Memory
Forgotten
Material
CIMS

19. Consumer Learning
Beheavioral Learning Theories
Beheavioral Learning Theories
• Classical Conditioning - Pavlov
CIMS

20. APPLICATION OF CLASSICAL CONDITIONING
Natural Stimulus -- Natural Response
Artificial stimulus -- Natural response
Fragrance of Natural Jasmine elicit
pleasant feeling
Perfume of Jasmine elicit same pleasant
feeling, Picture of Jasmine brings the
same feeling
CIMS

21. Consumer Learning
• Operant Conditioning – B. F Skinner
Behaviour elicited
Behaviour elicited Likelyhood of
increase or
Decrease in
response
probability
Reward or Punishment
Reward or Punishment
CIMS

22. • Positive ( + feeling) Reinforcement –
• “Buy one , get one free”
• Negative (- feeling) Reinforcement –
“ buy Colgate, get rid of bad breath “
CIMS

23. COMBINATION OF Classical
Conditioning AND Operant
CIMS
Conditioning

24. RISK PERCEPTION
• PHYSICAL RISK
• PERFORMANCE RISK
• FINANCIAL RISK
• SOCIAL RISK
• Psychological Risk
Risk takers try new products
Risk – avoiders are brand loyal
CIMS

25. Culture
• Cultural influence on purchase
• Sub cultural influence
• Mixed cultural Influence
Subculture
• BENGALI,GUJRATI ,Punjabi etc
Mixed Culture
CIMS

26. PERSONAL FACTORS
• AGE
• FAMILY LIFE CYCLE
• INCOME
• PERSONALITY AND LIFE STYLE
MARRIED WITH KID
JUST MARRIED
YOUNG AND SINGLE MARRIED WITHOUT KID
MIDDLE AGED
KIDS
OLD
CIMS

27. PERSONAL FACTORS
PERSONAL FACTORS
• CONSUMPTION IS DOMINATED BY THE SOCIAL
CLASSES AND THEIR INCOMES
PREVIOUS SOCIAL CLASS STRUCTURES
> UPPER CLASS
 MIDDLE CLASS
 LOWER CLASS
MODERN CLASS STRUCTURE
 Globals (Expats) ( More than Rs. 20 Lakh /annum)
 Strivers ( Rs 5- 15L / annum) MIDDLE CLASS
 Seekers ( Rs 2- 5L /annum)
 Aspirers ( Rs 90,000 – 2L/annum )
 Deprived ( Less 90,000 / annum)
CIMS

28. CONSUMPTION PATTERN IN INDIA FOR
MIDDLE CLASS
• GROWTH IN YOUNG WORK FORCE
• WORKING COUPLES WITH NO KIDS
• WORKING COUPLES WITH ONE KID
• INCREASE IN WHITE COLLAR PROFESSIONALS LIKE DOCTORS ,
IT PEOPLE , ARCHITECTS, FASION DESIGNERS ,BANKERS ,
LAWERS etc.
THIS CLASS GOES FOR EXPENSIVE ITEMS,EATING OUTS ,
WANTS TO SHOW OFF , ENJOYS A LOT OF CREDIT FACILITIES –
INDULGE IN ASPIRATIONAL PURCHASES
CIMS

29. Highest Spending segment
DEMOGRAPHIC SEGMENTATION – Source : Mint , March 16 ,2012 , kolkata N=2000 , Citi
emerging India Research
CIMS

30. REFERENCE GROUPS
• PRIMARY GROUP or Family of
Procreation or family of orientation
• ASSOCIATIVE OR SECONDARY
GROUP
• CELEBRITIES
• OPINION LEADERS
CIMS

31. Consumer’s Behavioural
Decision Process
FIVE STAGE MODEL
Need Information Evaluation of
Recognition Search alternatives
CONSIDERATION AWARENESS
TOTAL SET SET SET
CHOICE SET DECISION SET
Post purchase
behaviours purchase Decision
CIMS

32. Post Purchase Behaviour
Performance Performance Performance Cognitive
below Dissonance
matches exceeds
expectation expectation expectation
Negative
Neutral Exit Complain
Word of
Mouth
CIMS

33. MODELS OF CONSUMER BEHAVIOUR:
1. The Nicosia Model
2. The Howard – Sheth Model
3. The EBM Model
CIMS

34. The Nicosia Model
CIMS
Refer to page -374 ,S S kazmi , Batra book

35. The Howard – Sheth Model
CIMS
Refer to page -375 ,S S kazmi , Batra book

36. ENGEL,BLACKWELL,MINIARD MODEL
ENGEL,BLACKWELL,MINIARD MODEL
CIMS
Refer to page -376 ,S S kazmi , Batra book

37. Diffusion of Innovation
CIMS

38. • SEGMENTATION IS A PROCESS OF
DIVIDING ENTIRE HETEREOGENOUS
MARKET IN DIFFERENT CATEGORIES
DEPENDING ON THEIR
HOMOGENIOUS (SIMILAR)
CHARACTERISTICS
3-5 lakh /annum
5- 7 lakh /annum
7- 10 lakh /annum
>10 lakh /annum
CIMS

39. Bases for Segmentation
• Geographic – Location
• Demographic – Age, gender, Income
• Psychographic – Personality , Lifestyle
• Behaviorist – Occasion, Benefits sought
• Demographic – Psychographic – Mixture of
Demo and Psycho
A Product for eastern India, A product for Old people , A product for teenagers , A product
for fun loving people, A product for wedding season
CIMS

40. SEGMENTATION VARIABLES
SEGMENTATION VARIABLES
1.CONSIDER VARIABLES OF
SEGMENTATION
2. EVALUATION of SEGMENTS
3. DEVELOP PROFILE FOR EACH
SEMNENT
CIMS

41. MARKET SEGMENATION
MARUTI SUZUKI – Segmentation
Based on Price and affordability
Entry Level Segment
Mid Level Segment
Upper Segment
Premium Segment
CIMS

42. CIMS