Consumer behaviorour by Neeraj Bhandari ( Surkhet.Nepal )
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Consumer behaviorour by Neeraj Bhandari ( Surkhet.Nepal )
- 1. • Understanding Consumer Buying Behavior Iamwhat,Iam!
- 2. What they buy? Why they buy? When they buy? Where they buy? How often they buy and use a product or service? Iamwhat,Iam!
- 3. Why Study Consumer Behavior? Consumer Behavior Determines the Economic Health of a Nation Consumer Behavior Determines the Success of Marketing Programs Consumer Behavior Determines the Economic Health of Everyone Iamwhat,Iam!
- 4. Consumer Behavior • The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs. Chapter One Slide Iamwhat,Iam!
- 5. Two Consumer Entities Personal Consumer • The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend. Organizational Consumer • A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function. Chapter One Slide Iamwhat,Iam!
- 6. Iamwhat,Iam!
- 7. ConsumerBuyingDecisionProcess Who Makes the Buying Decision Types of Buying Decisions Stages in the Buying Process Marketers Must Identify and Understand: Iamwhat,Iam!
- 8. Consumer Buying Decision Process Understand • Buying roles • Buying behavior • Buying decision process • Initiator • Influencer • Decider • Buyer • User Iamwhat,Iam!
- 9. Consumer Buying Decision Process Understand • Buying roles • Buying behavior • Buying decision process • Complex buying behavior • Dissonance-reducing buying behavior • Habitual buying behavior • Variety-seeking buying behavior Iamwhat,Iam!
- 10. Consumer Buying Decision Process Understand • Buying roles • Buying behavior • Buying decision process • Five stages in the consumer buying process • The amount of time spent in each stage varies according to several factors Iamwhat,Iam!
- 11. Consumer Buying Decision Process Five-Stage Model of the Consumer Buying Process Iamwhat,Iam!
- 12. Need Recognition • Need/Problem Recognition • Can be triggered by internal or external stimuli • Needs become wants, which lead to behavior • Marketing stimuli can stimulate a desire for information Iamwhat,Iam!
- 13. Information Search (1of2) • Sources of information: • Internal Sources • Personal Sources • External Sources • Time, effort and expense dedicated to information search depends on: • Degree of risk involved in the purchase • Amount of expertise with the product category • Actual cost of the search • Evoked set: • A narrowed down set of alternatives that the customer is considering Iamwhat,Iam!
- 14. Consumer Buying Decision Process Successive Sets Involved in Consumer Decision Making Iamwhat,Iam!
- 15. Evaluation of Alternatives • Customers evaluate products as bundles of attributes • Brand attributes • Product features • Aesthetic attributes • Price • Customers place different levels of importance on attributes • Important considerations in the evaluation stage: • Products must be in the evoked set • Consumers’ choice criteria must be understood • Marketing programs must be designed to influence consumers’ opinions about product or brand image Iamwhat,Iam!
- 16. Purchase Decision • Purchase intention and the act of buying are distinct concepts • Potential intervening factors between intention and buying (car example): • Unforeseen circumstances • Angered by the salesperson or sales manager • Unable to obtain financing • Customer changes mind • Key issues in the purchase decision stage: • Product availability • Possession utility Iamwhat,Iam!
- 17. PostpurchaseEvaluation • Four possible outcomes in the postpurchase stage: • (1) Delight • (2) Satisfaction • (3) Dissatisfaction • (4) Cognitive Dissonance • Firm’s ability to manage dissatisfaction and cognitive dissonance is: • A key to creating customer satisfaction • A major influence on word-of-mouth communication Iamwhat,Iam!
- 18. Factors Influencing Consumer Buying Behavior • Cultural Factors • Culture: A set of rules, values, beliefs, behavior and concepts that is common to and binds members of society. • Subculture: Every culture has its own set of sun cultures • Social Class • Upper Class • Upper Middle Class • Middle Class • Lower Class • , Religion • Geographic area Iamwhat,Iam!
- 19. Personal Factors • Age and Lifecycle Stage • Occupation and Financial Status • Life Style Iamwhat,Iam!
- 20. Psychological Factors Motivation A motive is a strong urge that drives a person’s activities towards unfulfilled needs and wants. • Maslow , need can be classified as • 1. Physiological Needs • 2. Security Needs • 3. Social Needs • 4. Esteem Needs • 5. Self-Actualization Needs Iamwhat,Iam!
- 21. Social Factors Reference Groups Primary Reference Group Membership Reference Group Aspiration Reference Group Disclaimant Reference Group Avoidance Reference Group Secondary Reference Group Family Iamwhat,Iam!
- 22. Perception Perception is a process by which an individual selects, organizes, and interprets stimuli into meaningful thoughts and pictures. Customer Perceives their environment through the sense of touch, smell, risk etc. Customer buying behavior are also influenced by the risk factors involved. Understanding the customer's perception helps the marketers position their product better than that of the competitors. Beliefs and Attitude Iamwhat,Iam!
- 23. Promotion and the AIDA Model Exhibit 14-4 Promotion Objectives Adoption Process AIDA Model Informing Persuading Reminding Attention Interest Desire Action Awareness Interest Evaluation Trial Decision Confirmation } } { 14-9 Iamwhat,Iam!