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3. CONSUMER BEHAVIOUR.pptx

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3. CONSUMER BEHAVIOUR.pptx

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3. CONSUMER BEHAVIOUR.pptx

  1. 1. CONSUMER BEHAVIOUR
  2. 2. WHAT IS CONSUMER BEHAVIOUR? Consumer behavior or consumer buying behavior are all the aspects that affect consumers’ search, selection, and purchase of products. We can use the term for the purchases of services too. Consumer behavior is an area of research within the business field of ‘marketing.’ This Photo by Unknown Author is licensed under CC BY-ND
  3. 3. HOW CONSUMER BEHAVIOUR IS DEFINED? • Consumer Behavior is defined as activities people undertake when obtaining, consuming and disposing of products and services. a. Obtaining: refers to the activities leading up to and including the purchase or receipt of a product. b. Consuming: means how, where, when and under what circumstances consumers use products. c. Disposing: refers to how consumers get rid of products and packaging.
  4. 4. Characteristics of Consumer Behaviour 1. Consumer Behavior involves Products, Services, Activities, and Ideas. 2. Consumer behavior is not restricted only to buying the offering. It includes buying (acquiring the offering), using, and disposing. 3. Consumer Behavior is dynamic because the thinking, feelings, and actions of individual consumers, targeted groups, and the society at large are constantly changing.
  5. 5. 4.Consumer behaviordoes not mean action of a single individual.Interactions may take place among a group of friends, a few co-workers, or an entire family. The individualsmay take different roles. 5. Consumer Behaviorinvolves Many Decisions Consumer behaviorneeds understanding whether what, why, when, where, how, how much, how often, and how long consumers will buy, use or dispose of an offering. 6. Consumer behaviorinvolves exchanges between human beings. People give something of value to receive somethingof value.
  6. 6. IMPORTANCE OF CONSUMER BEHAVIOUR • • • • •
  7. 7. • • • • • •
  8. 8. An interdisciplinary area of study, the subject borrows heavily from psychology, sociology; social psychology; anthropology and, economics.
  9. 9. Psychology This includes the study of the individual as well as the individual determinants in buying behaviour, consumer perception, learning and memory, attitude, self-concept, personality, motivation and involvement, decision making. Sociology This includes the study of groups as well as the group dynamics in buying behaviour, viz. ---family influences ---lifestyles and values ---social group influences. Anthropology This is the influence of society on the individual viz. --- cultural and cross- cultural issues in buying behaviour ---national and regional cultures etc. Economics This is the study of income and purchasing power, and its impact on consumer behaviour. The underlying premise is that consumers make rational choices while making purchase decisions. While resources are limited and needs and wants many, consumers collect information, and evaluate the various alternatives to finally make a rational decision. Social psychology Social psychology is to do with the way these feelings, thoughts, beliefs, in tentions and goals are constructed and how such psychological factors, in turn, influence our interactions
  10. 10. APPLICATIONS OF CONSUMER BEHAVIOUR 1. Analyzing market opportunity: Consumer behavior study help in identifying the unfulfilled needs and wants of consumers. 3. Marketing-mix decisions: Once unsatisfied needs and wants are identified, the marketer has to determine the right mix of product, price, distribution, and promotion.
  11. 11. Consumer purchases are highly influence by two factors. External Cultural Social Internal Personal Psychological
  12. 12. Cultural Factors Culture Sub culture Social Class CULTURE The set of basic values, perceptions, wants and behavior by a member of society from family and other important institution
  13. 13. Cultural Factors Culture Sub culture Social Class SUB-CULTURE A group of people with shared value system based on common life experiences and situation.
  14. 14. Cultural Factors Culture Sub culture Social Class SOCIAL CLASS Relatively permanent and ordered divisions in a society whose members share similar values, interests and behavior.
  15. 15. Social Factors Reference group Family Roles and status Roles in buying process Reference groups A person’s reference groups consists of all the groups that have a direct (face-to- face) or indirect influence on his/her attitudes or behavior. Types of Reference Group 1. Contactual Group 2. Avoidance Group 3. Aspirational Group 4. Disclaimant Group
  16. 16. Social Factors Reference group Family Roles and status Roles in buying process Family Family members can strongly influence buyer behaviour. Marketers are interested in the roles, and influence of the husband, wife and children on the purchase of different products and services.
  17. 17. Social Factors Reference group Family Roles and status Roles in buying process Roles and Status A role consists of the activities people are expected to perform according to persons around them
  18. 18. Social Factors Reference group Family Roles and status Roles in buying process Roles in buying process Initiator Influencer Decider Buyer User
  19. 19. Personal Factors Age and life cycle Occupation Economic situation Life Style AGE AND LIFE CYCLE Needs and consumption pattern of people vary with advancement in age Stages in family life cycle 1. Bachelor Stage 2. Newly married stage 3. Full Nest I 4. Full Nest II 5. Full Nest III 6. Empty Nest I 7. Empty Nest II
  20. 20. Personal Factors Age and life cycle Occupation Economic situation Life Style Occupation influence the behavior of individuals.
  21. 21. Personal Factors Age and life cycle Occupation Economic situation Life Style Economic Situation A person’s economic situation will affect product and service choice.
  22. 22. Personal Factors Age and life cycle Occupation Economic situation Life Style Life Style Lifestyle is an individual’s way or pattern of living which is reflected in his activities, interest opinions, Demographics(AIOD)
  23. 23. Psychological Factors Motivation Perception Learning Beliefs Attitudes MOTIVATION A need that is sufficiently pressing to direct the person to seek satisfaction of the need.
  24. 24. Psychological Factors Motivation Perception Learning Beliefs Attitudes PERCEPTION The process by which people select, organize and interpret information to from a meaningful picture of world.
  25. 25. Psychological Factors Motivation Perception Learning Beliefs Attitudes LEARNING Changes in an individual’s behavior arising from experience.
  26. 26. Psychological Factors Motivation Perception Learning Beliefs Attitudes BELIEFS A descriptive thought or conviction that a person holds about something.
  27. 27. ATTITUDES A person’s relatively consistent evaluation, feelings and tendencies towards an object or an idea. Psychological Factors Motivation Perception Learning Beliefs Attitudes
  28. 28. Maslow’s Hierarchy of Needs
  29. 29. Decision-Making Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior Buyer Decision Process
  30. 30. Difficulties in Judging the Buying Motives of Customers • Illiteracy of customers. • Non-disclosure of motives by the customers knowingly. • Nature of customers – certain customers do feel shy to ask for a hair dye from the seller. • Multiplicity of buying motives – a study reveals 600 kinds of buying motives. • Change in buying motives with the change in age, income, standard of living etc. • Difficulty in identifying the specific buying motives as a customer may have more than one buying motive at a time. • Lack of contact with each and every customer due to geographical, economic or other difficulties. • Individual differences between persons and their buying motives.
  31. 31. 1. Problem Recognition • • •
  32. 32. 2. Information search • • • •
  33. 33. 3. Evaluation of alternatives • • • •
  34. 34. 4. Purchase decision • • • • •
  35. 35. 5. Post-Purchase behavior • •
  36. 36. Marketers must monitor • • •
  37. 37. Post Purchase satisfaction • • •
  38. 38. Types of Buyer Behaviour
  39. 39. CLOSURE

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