Más contenido relacionado


presentation_consumer_behaviour 35th batch.ppt

  1. Consumer Behavior i
  2. Objectives • Developing an understanding of the internal and external influences which shape the behaviour of both consumer and organisational buyers • Identifying the discrete stages of the buying process undertaken by consumers and organisational buyers • Appreciating how an understanding of buyer behaviour can be used in market segmentation and target marketing and
  3. Why do we need to study Consumer Behaviour •Because no longer can we take the customer/consumer for granted. sanjeev sahani
  4. • All managers must become astute (intelligent/smart) analysts of consumer motivation and behaviour sanjeev sahani
  5. DEFINITION • Consumer Behaviour may be defined as the decision process and physical activity individuals engage in when evaluating , acquiring, using or disposing of goods and services. • According to Belch and Belch "consumer behaviour is the process and activities people engage in when searching for, selecting,purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires".
  6. Nature of Consumer Behaviour • Systematic process : Consumer behaviour is a systematic process relating to buying decisions of the customers. The buying process consists of the following steps : • Need identification to buy the product • Information search relating to the product • Listing and evaluating the alternatives • Purchase decision • Post purchase evaluation by the marketer sanjeev sahani
  7. Nature of Consumer Behaviour • Influenced by various factors: Consumer behaviour is influenced by a number of factors the factors that influence consumers include marketing, personal, psychological, situational, social and cultural etc. • Different for different customers : All consumers do not behave in the same manner. Different consumers behave differently. The different in consumer behaviour is due to individual factors such as nature of the consumer's lifestyle, culture etc.
  8. Nature of Consumer Behaviour • Different for different products : Consumer behaviour is different for different products there are some consumers who may buy more quantity of certain items and very low quantity of some other items. • Vary across regions : The consumer behaviour vary across States, regions and countries. For instance, the behaviour of urban consumers is different from that of rural consumers. normally rural consumers are conservative (traditional) in their buying behaviour
  9. Nature of Consumer Behaviour • Vital for marketers : Marketers need to have a good knowledge of consumer behaviour they need to study the various factors that influence consumer behaviour of the target customers. The knowledge of consumer behaviour enables marketers to take appropriate marketing decisions. • Reflect status : Consumer buying behaviour is not only influenced by status of a consumer coma but it also reflect it. Those consumers who owned luxury cars, watches and other items are considered by others as persons of higher status.
  10. Nature of Consumer Behaviour • Result in spread effect : Consumer behaviour as a spread effect. The buying behaviour of one person may influence the buying behaviour of another person. For instance, a customer may always prefer to buy premium brands of clothing, watches and other items etc. This may influence some of his friends, neighbours and colleagues. This is one of the reasons why marketers use celebrities like Shahrukh Khan, sachin to endorse their brands.
  11. Nature of Consumer Behaviour • Undergoes a change : The consumer behaviour undergoes a change over a period of time depending upon changes in age , education and income level etc, for example, kids may prefer colourful dresses but as they grow up as teenagers and young adults, they may prefer trendy clothes. sanjeev sahani
  12. Nature of Consumer Behaviour • Information search : Search for information is a common consumer behaviour. Consumers cannot purchase goods and services if they are unaware that a good or service exists. When a consumer decides to buy a certain item, his decision must be based on the information he has gathered about what products our services are available to fulfill his needs. There might be a product available that would be better suited to the consumers needs, but if he is unaware of product, he will not buy it.
  13. Nature of Consumer Behaviour • Brand loyalty : Brand loyalty is another characteristic of consumer behaviour. Brand loyalty is the tendency of a consumer to buy product products or services from a certain company that one likes or equates with having high quality goods and services. For example, if Naina's first car was a Honda as a teenager and the car lasted 200,000 miles, she might have a tendency to buy hondas again in the future due to her previous positive experience. This brand loyalty may be so strong that she forgoes the information search all together when considering for next vehicle. •
  14. Scope of Consumer Behaviour 1) Consumer behaviour and marketing management 2) Consumer behaviour and non profit and social marketing 3) Consumer behaviour and government decision making i) Government services ii) consumer protection 4) Consumer behaviour and demarketing 5) Consumer behaviour and consumer education
  15. Scope of Consumer Behaviour • 1) Consumer behaviour and marketing management : Effective business managers realise the importance of marketing to the success of their firm. A sound understanding of consumer behaviour is essential to the long run success of any marketing program. In fact, it is seen as a corner stone of the Marketing concept, an important orientation of philosophy of many marketing managers. The essence of the Marketing concept is captured in three interrelated orientations consumers needs and wants, company integrated strategy.
  16. Scope of Consumer Behaviour • Consumer behaviour and non profit and social marketing : In today's world even the non-profit organisations like government agencies, religious sects, universities and charitable institutions have to market their services for ideas to the "target group of consumers or institution." At other times these groups are required to appeal to the general public for support of certain causes or ideas. Also they make their contribution towards eradication of the problems of the society. Thus a clear understanding of the consumer behaviour and decision making process will assist these efforts.
  17. Scope of Consumer Behaviour • 3) Consumer behaviour and government decision making : In recent years the relevance of consumer behaviour principles to government decision making. Two major areas of activities have been affected: • i) Government services: It is increasingly and that government provision of public services can benefit significantly from an understanding of the consumers, or users, of these services. • ii) consumer protection: Many Agencies at all levels of government are involved with regulating business practices for the purpose of protecting consumers welfare.
  18. Scope of Consumer Behaviour • Consumer behaviour and demarketing: It has become increasingly clear that consumers are entering an era of scarcity in terms of some natural gas and water. These scarcities have led to promotions stressing conservation rather than consumption. In other circumstances, consumers have been encouraged to decrease or stop their use of particular goods believed to have harmful effects. Programs designed to reduce drug abuse, gambling, and similar types of conception examples. These actions have been undertaken by government agencies non profit organisations, and other private groups. The term "demarketing" refers to all such efforts to encourage consumers to reduce their consumption of a particular product or services.
  19. Scope of Consumer Behaviour • 5) Consumer behaviour and consumer education: Consumer also stands to benefit directly from orderly investigations of their own behaviour. This can occur on an individual basis or as part of more formal educational programs. For example, when consumers learn that a large proportion of the billions spend annually on grocery products is used for impulse purchases and not spend according to pre planned shopping list, consumers may be more willing to plan effort to save money. In general, as marketers that can influence consumers' purchases, consumers have the opportunity to understand better how they affect their own behaviour.
  20. Importance of consumer behaviour: • 1) production policies • 2) Price policies • 3) Decision regarding channels of distribution • 4) Decision regarding sales promotion • 5) Exploiting marketing opportunities • 6) Consumer do not always act or react predictably • 7) Highly diversified consumer preferences • 8) Rapid introduction of new products • 9) Implementing the "Marketing concept":
  21. Applications of consumer behaviour • 1) Analysing market opportunity: Consumer behaviour study help in identifying the unfulfilled needs and wants of consumers. This requires examining the friends and conditions operating in the Marketplace, consumers lifestyle, income levels and energy influences. This may reveal unsatisfied needs and wants. Mosquito repellents have been marketed in response to a genuine and unfulfilled consumer need.
  22. Applications of consumer behaviour • 2) Selecting target market: Review of market opportunities often helps in identifying district consumer segments with very distinct and unique wants and needs. Identifying these groups, behave and how they make purchase decisions enable the marketer to design and market products or services particularly suited to their wants and needs. For example, please sleep revealed that many existing and potential shampoo users did not want to buy shampoo fax price at rate 60 for more and would rather prefer a low price package containing enough quantity for one or two washers. This finding LED companies to introduce the shampoos sachet, which become a good seller.
  23. Applications of consumer behaviour 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. Where too, consumer behaviour study is very helpful in finding answers to many perplexing questions. The factors of marketing mix decisions are: i) product ii) price iii) promotion iv) distribution
  24. Applications of consumer behaviour • 4) Use in social and non profits marketing: Consumer behaviour studies are useful to design marketing strategies by social, governmental and not for profit organisations to make their programmes more effective such as family planning, awareness about AIDS. •
  25. Can Marketing be standardised? • No. Because cross - cultural styles, habits, tastes, prevents such standardisation sanjeev sahani
  26. Factors affecting Consumer Behavior • The behaviour of buyers is the product of two broad categories of influence; these are endogenous factors (i.e. those internal to the individual) and exogenous factors (i.e. those external to the individual) Whilst these are variables that are largely outside the direct control of marketing managers, an understanding of them can be harnessed to great effect. sanjeev sahani
  27. Buyer Behaviour 4Ps Marketing Environment Buyer Characteristics Buyer DecisionProcess Buyer Decision Consumer sanjeev sahani
  28. Marketing Stimuli Product Price Place Promotion 4 Ps sanjeev sahani
  29. Other Stimuli Economic Technological Political Cultural Marketing Environment sanjeev sahani
  30. Buyer characteristics • Cultural • Social • Personal • Psychological sanjeev sahani
  31. Exogenous (External )influences on buyer behaviour • Factors which are external to the individual but have a substantial impact upon his/her behaviour are social and cultural in nature. • These include culture, social class or status, reference groups and family membership.
  32. • Culture • Culture is perhaps the most fundamental and most pervasive external influence on an individual's behaviour, including his/her buying behaviour. Culture has been defined as: • “…the complex of values, ideas, attitudes and other meaningful symbols created by people to shape human behaviour and the artifacts of that behaviour as they are transmitted from one generation to the next.” sanjeev sahani
  33. • Three key aspects of culture are brought out by this definition. • First, culture is created by people. The behavioural patterns, ideas, economic and social activities and artifacts of a people's forebears shapes the culture of today. • Second, culture is enduring. It evolves over time but is stable in the short to medium term and is in fact passed, largely intact, from generation to generation. In particular, the values of the society tend to be enduring. • Third, cultural influences have both tangible and intangible results. For instance, language and patterns of speech are products of culture and are observable. Basic beliefs and values are also the outcome of the cultural environment within which a person lives but these mental phenomena are intangible outcomes. sanjeev sahani
  34. Social status • Social class or social status is a powerful tool for segmenting markets. • Empirical research suggests that people from the same social group tend to have similar opportunities, live in similar types of housing, in the same areas, by similar products from the same types of outlets and generally conform to similar styles of living. • At the same time, whilst people within the same social category exhibit close similarities to one another, there are usually considerable differences in consumption behaviour between social groups. • The variables used to stratify a population into social classes or groups normally include income, occupation, education and lifestyle. sanjeev sahani
  35. Reference groups • People are social animals who tend to live in groups. The group(s) to which a person belongs exerts an influence upon the behaviour, beliefs and attitudes of its members by communicating norms and expectations about the roles they are to assume. • Thus, an individual will refer to others with respect to: ‘correct’ modes of dress and speech; the legitimacy of values, beliefs and attitudes; the appropriateness of certain forms of behaviour, and also on the social acceptability of the consumption of given products and services. • These “others' constitute reference groups. Reference groups provide a standard of comparison against which an individual can judge his/her own attitudes, beliefs and behaviour. sanjeev sahani
  36. Three reference Groups • a group to which an individual belongs (also known as a peer group) • a group to which an individual aspires, and • a group whose perspective has been adopted by the individual sanjeev sahani
  37. Reference groups have only the weakest influence on buying behaviour. The key difference appears to be the extent to which a product is used or consumed publicly. That is, if the product or brand is evident to those within the reference group then that group's influence is likely to stronger with regard to purchasing behaviour. sanjeev sahani
  38. Endogenous(Internal) influences on buyer behaviour • Endogenous influences are those which are internal to the individual. These are psychological in nature and include needs and motives, perceptions, learning processes, attitudes, personality type and self-image. sanjeev sahani
  39. Needs and motives • When an individual recognises that he/she has a need, this acts to trigger a motivated state. Need recognition occurs when the individual becomes aware of a discrepancy between his/her actual state and some perceived desired state. Once the need is recognised then the individual concerned will form a motive. A motive may be defined as an impulse to act in such a way as to bring about the meeting of a specific need. sanjeev sahani
  40. Perceptions • Whereas motivation is a stimulus to action, how an individual perceives situations, products, promotional messages, and even the source of such messages, largely determines how an individual acts. A basic definition of perception would be ‘how people see things’. Berelson and Steiner5 have defined perception more formally as: • “…the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.” • Individuals can have vastly differing interpretations of the same situation. Whilst all human beings receive information through the same five senses-vision, hearing, smell, taste and touch the extent to which they attend to a piece of information, how they organise that information and how information is interpreted tends to differ. sanjeev sahani
  41. Age and life-cycle stage • Consumer purchases are influenced by age and by the stage in the family life- cycle. Thus, a two-year old will have different requirements from a middle-aged person, and a 24-year-old person, married with young children, will buy with a different set of priorities when compared with a 24-year-old single person. In different countries the age composition varies.. sanjeev sahani
  42. Gender The roles and status associated with men and women vary within most cultures and between cultures. You need to be aware of these differences and of the way in which changes are occurring. sanjeev sahani
  43. Selective attention: • All people are daily bombarded by stimuli, both commercial and non-commercial. People simply cannot pay attention to all these messages and therefore they develop mechanisms to reduce the amount of information that they actually process. • People pay attention to stimuli which meet an immediate need. Thus a farmer within whose district poultry have been reported as suffering from Newcastle disease will be especially attentive to messages relating to the prevention of this affliction in his/her ostrich flock. sanjeev sahani
  44. Learning • Much of human behaviour is learned. The evidence of learning is a change in a person's behaviour as a result of experience. Theory suggests that learning is the product of interactions between drives, stimuli, cues, responses and reinforcement. For instance, a farmer may have a strong drive towards increasing his/her productivity. sanjeev sahani
  45. • A farmer may see the adoption of a newly available two-wheeled tractor as a way of increasing his/her productivity to the extent required. The encouragement of the farmer's neighbours, and perhaps his/her village headman, seeing the same type of tractor operating successfully on a neighbouring farm, receiving visits from salesmen and reading promotion literature are all cues that can impinge upon the farmer's impulse to invest in a two-wheeled tractor. sanjeev sahani
  46. Attitudes four fundamental characteristics of attitudes 1) First thing is that attitudes are enduring. They may change over time but they tend to be reasonably stable in the short to medium term. 2) Stresses that attitudes are learned from the individual's own experience and/or from what they read or hear from others. 3) Third, that attitudes precede and impact upon behaviour. Attitudes reflect an individual's characters towards another person, an event, product or other object. A person may be either favourably or unfavourably predisposed towards an object; sanjeev sahani
  47. • . A consumer may be unfavourably predisposed towards locally manufactured dairy products because of dissatisfaction in the past with the quality of a specific type of cheese and with the shelf-life of fresh milk from the country's Dairy Produce Board. The negative experience of the consumer, which relates to very specific products, is readily transferred to all other dairy products marketed by the Board and the consumer exhibits a preference for imported dairy products. sanjeev sahani
  48. Personality and self-concept • Individuals tend to perceive other human beings as ‘types of persons’. There are, for example, people perceived to be nervous types, ambitious types, self-confident types, introverts, extroverts, the timid, the bold, the self-deprecating, and so on. These are personality traits. Like attitudes, personality traits serve to bring about a consistency in the behaviour of an individual with respect to his/her environment. sanjeev sahani
  49. • . An individual's self-image is how he/she sees him/herself. Self-image is a fusion of how a person would ideally like to be, the way a person believes others see him/her and how a person actually is. • For the marketer the importance of self- images rests in the opportunities to relate product characteristics to these images. • The promotional campaign would focus on the congruence between the self-image and the product image, i.e. a sophisticated, more refined product for a sophisticated, more refined consumer. sanjeev sahani
  50. sanjeev sahani
  51. Buyer’s Decision Process • Problem Recognition • Information Search • Evaluation of Alternatives • Purchase Decision • Consumption • Postpurchase behaviour sanjeev sahani
  52. A five-stage model of the buying process sanjeev sahani
  53. Problem recognition • The buying process begins with a recognition on the part of an individual or organisation that they have a problem or need. The farmer recognises that he/she is approaching a new cultivation season and requires seed; a grain trading company realises that stocks are depleted but demand is rising and therefore wheat, rice and maize must be procured; a rural family is expecting an important guest who must be honoured by the slaughter and preparation of a goat for a feast. • Problems and needs can be triggered by either internal or external stimuli. A poor peasant family may purchase a goat, which they can ill-afford, either because they have an innate sense of hospitality (internal stimulus) or because social convention dictates that a goat be procured and prepared for special visitors (external stimulus). sanjeev sahani
  54. • Marketing research needs to identify the stimuli that trigger the recognition of particular problems and needs . • The Prosess that occurs whenever the customer sees a significance between his/her deisred state of affaires and some desired ideal state. sanjeev sahani
  55. Information search • : Information gathering may be passive or active. Passive information gathering occurs when an individual or group simply becomes more attentive to a recognised solution to a given need. That is, he/she exhibits heightened attention. • The potential buyer becomes more aware of advertisements or other messages concerning the product in question. • In other circumstances the individual is proactive rather than reactive with respect to information. A trader who sees potential in a new vegetable which is being imported into the country will actively search out information about the product, sources of supply, prices and import regulations. • He/she is likely to converse with other traders, request literature from potential suppliers, etc. sanjeev sahani
  56. information sources used will fall into Three categories • personal sources (family, friends, work colleagues, neighbours, acquaintances) • commercial sources (promotional materials, press releases, technical journals or consumer magazines, distributors, packaging) • public sources (mass media) sanjeev sahani
  57. Evaluation of alternatives • : The process of evaluating alternatives not only differs from customer to customer prospective customer but the individual will also adopt different processes in accordance with the situation. It is likely that when making judgments customers will focus on those product attributes and features that are most relevant to their needs at a given point in time. Here, the marketer can differentiate between those characteristics which a product must have before it is allowed to enter the customer's mind set. sanjeev sahani
  58. • A quite different set of criteria might be used in deciding between alternative products and suppliers within the evoked set e.g. the period of credit given by the supplier, the ability of the supplier to deliver the total order in periodic batches and the reliability of the supplier in the past. sanjeev sahani
  59. Purchase decision • At the evaluation stage the prospective customer will have arrived at a judgment about his/her preference among the evoked set and have formed a purchase intention. • However, two factors can intervene between the intention and the purchase decision: the attitude of others and unanticipated events. • If the attitude of other individuals or organizations who influence the prospective customer is strongly negative then the intention may not be converted to a firm commitment or decision. sanjeev sahani
  60. • Unanticipated events can also intervene between intention and action. Whenever human beings form judgments or seek to make decisions they invariably make assumptions. These assumptions are often implicit rather than explicit. • A farmer may state an intention to purchase a mechanical thresher within the next twelve months but when his/her implicit assumption of ‘a good harvest’ is not realised, due to drought, the purchase of the machine is postponed. sanjeev sahani
  61. sanjeev sahani
  62. Postpurchase behaviour: • The process of marketing is not concluded when a sale is made. Marketing continues into the post purchase period. The aim of marketing is not to make a sale but to create a long term relationship with a customer. Organizations maintain profitability and growth through repeat purchases of their products and services by loyal customers. sanjeev sahani
  63. • Having procured the product the customer will experience either satisfaction or dissatisfaction with his/her purchase. • The level of satisfaction or dissatisfaction is largely a function of the congruence between the buyer's expectations of the product and the product's perceived performance. • Buyer expectations of a product are usually based upon promotional messages from the product's supplier, family, friends, work colleagues and, perhaps, professional advisors. In addition, the buyer's own perceptual processes influence expectations. • If the product's perceived performance either matches or exceeds its expected performance then the buyer is likely to feel highly satisfied. sanjeev sahani
  64. • Another aspect of postpurchase behaviour that is of interest to marketers is how the buyer actually uses the product. • It is common to find buyers using a product in a different way from that for which it was either designed or intended. • Such deviations can present problems or opportunities to the product supplier. • For instance, whilst maize meal is chiefly used as a foodstuff, consumers discovered that it makes an excellent cleansing agent for shoes and other items of clothing when these have become badly stained. • This new use for the product could represent a marketing opportunity for a repackaged and repositioned product. sanjeev sahani
  65. Industrial buyer characteristics • Individuals who purchase products on behalf of an enterprise they either own or are employed by have two distinct sets of goals that they pursue: their own and those of the organisation. • As an individual, the industrial buyer enjoys exercising authority, seeks job satisfaction, the approval and respect of both peers and superiors and other personal goals and avoids unnecessarily risky decisions. • Industrial buyers are also motivated by the desire to achieve organisational goals such as cost control, improved efficiency of operations, reliable supplies of essential inputs, improved product performance and so on. sanjeev sahani
  66. • An appropriate marketing campaign would attend to both the buyer's personal and organisational goals . • The key elements in this process are as follows. • (a) Decision-making unit (DMU) Various people are involved in the buying process within an organisation. Collectively they constitute the DMU or buying centre. • (b) Interaction between buyer and seller It is quite usual in business-to-business buying for buyers and sellers to negotiate and influence each other in determining the form of the final transaction and other aspects of the interaction. sanjeev sahani
  67. • (c) Major types of buying situation The numerous types of buying situation have been grouped into three buy-classes by a number of writers on business markets. The three buy-classes are: • Straight rebuy; • Modified rebuy; • New task. sanjeev sahani
  68. GOVERNMENT BUYER BEHAVIOUR • Governments and other governmental institutions, such as local authorities and nationalised industries, are important buyers in most national markets. • (a) Buying will be a bureaucratic process • (b) A tender system is usually used • (c) Political influence • (e) Types of business and government buying sanjeev sahani
  69. Motivations of organisational buyers sanjeev sahani
  70. Buyer’s Decision • Product Choice • Brand Choice • Dealer Choice • Purchase Timing • Purchase Amount sanjeev sahani
  71. Cultural factors • Culture • Sub - culture • Social Class sanjeev sahani
  72. Social factors • Reference Groups • Family • Roles and Statuses sanjeev sahani
  73. Personal Factors • Family Life Cycle • Occupation and Economic circumstances • Lifestyle • Personality and self - concept sanjeev sahani
  74. Psychological Factors • Motivation • Perception • Learning • Beliefs and Attitudes sanjeev sahani
  75. Buying Roles • Initiator • Influencer • Decider • Buyer • User sanjeev sahani
  76. Buying Behaviour • Complex • Dissonance (Difference Of Opinion)- Reducing • Habitual • Variety seeking sanjeev sahani
  77. Post - Purchase Behaviour • Satisfaction • Actions • Use and Disposal sanjeev sahani