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Consumer Behavior

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Consumer Behavior

  1. 1. Consumer Behaviour
  2. 2. Based on concepts from <ul><li>Psychology </li></ul><ul><li>Sociology </li></ul><ul><li>Anthropology </li></ul><ul><li>Marketing </li></ul><ul><li>Economics </li></ul>
  3. 3. Why do we need to study Consumer Behaviour? Because no longer can we take the customer/consumer for granted.
  4. 4. Failure rates of new products introduced <ul><li>Out of 11000 new products introduced by 77 companies, only 56% are present 5 years later. </li></ul><ul><li>Only 8% of new product concepts offered by 112 leading companies reached the market. Out of that 83% failed to meet marketing objectives. </li></ul>
  5. 5. All managers must become astute analysts of consumer motivation and behaviour
  6. 6. Can Marketing be standardised? No. Because cross - cultural styles, habits, tastes, prevents such standardisation.
  7. 7. Unless Managements act The more successful a firm has been in the past, the more likely is it to fail in the future.
  8. 8. Why? Because people tend to repeat behaviour for which they have been rewarded.
  9. 9. Language Problems <ul><li>“ Please leave your values at the desk” - Paris hotel </li></ul><ul><li>“ Drop your trousers here for best results” - Bangkok laundry </li></ul><ul><li>“ The manager has personally passed all water served here” - Acapulco restaurant </li></ul><ul><li>“ Because of the impropriety of entertaining guests of the opposite sex in the bedroom, it is suggested that the lobby be used for the purpose.” - Zurich hotel </li></ul><ul><li>Ladies are requested not to have children in the bar.”- Norway bar </li></ul>
  10. 10. “Come alive with Pepsi” <ul><li>“Come alive out of the grave” - Germany </li></ul><ul><li>“Pepsi brings your ancestors back from the grave” - China </li></ul>
  11. 11. Buyer Behaviour Consumer 4Ps Marketing Environment Buyer Characteristics Buyer Decision Process Buyer Decision
  12. 12. Marketing Stimuli 4 Ps Product Price Place Promotion
  13. 13. Other Stimuli Marketing Environment Economic Technological Political Cultural
  14. 14. Buyer characteristics <ul><li>Cultural </li></ul><ul><li>Social </li></ul><ul><li>Personal </li></ul><ul><li>Psychological </li></ul>
  15. 15. Buyer’s Decision Process <ul><li>Problem Recognition </li></ul><ul><li>Information Search </li></ul><ul><li>Evaluation of Alternatives </li></ul><ul><li>Purchase Decision </li></ul><ul><li>Consumption </li></ul><ul><li>Postpurchase behaviour </li></ul>
  16. 16. Buyer’s Decision <ul><li>Product Choice </li></ul><ul><li>Brand Choice </li></ul><ul><li>Dealer Choice </li></ul><ul><li>Purchase Timing </li></ul><ul><li>Purchase Amount </li></ul>
  17. 17. Cultural factors <ul><li>Culture </li></ul><ul><li>Sub - culture </li></ul><ul><li>Social Class </li></ul>
  18. 18. Social factors <ul><li>Reference Groups </li></ul><ul><li>Family </li></ul><ul><li>Roles and Status </li></ul>
  19. 19. Personal Factors <ul><li>Family Life Cycle </li></ul><ul><li>Occupation and Economic circumstances </li></ul><ul><li>Lifestyle </li></ul><ul><li>Personality and self - concept </li></ul>
  20. 20. Psychological Factors <ul><li>Motivation </li></ul><ul><li>Perception </li></ul><ul><li>Learning </li></ul><ul><li>Beliefs and Attitudes </li></ul>
  21. 21. Buying Roles <ul><li>Initiator </li></ul><ul><li>Influencer </li></ul><ul><li>Decider </li></ul><ul><li>Buyer </li></ul><ul><li>User </li></ul>
  22. 22. Buying Behaviour <ul><li>Complex </li></ul><ul><li>Dissonance - Reducing </li></ul><ul><li>Habitual </li></ul><ul><li>Variety seeking </li></ul>
  23. 23. Buying Process <ul><li>Problem Recognition </li></ul><ul><li>Information Search </li></ul><ul><li>Evaluation Alternatives </li></ul><ul><li>Purchase Decision </li></ul>
  24. 24. Post - Purchase Behaviour <ul><li>Satisfaction </li></ul><ul><li>Actions </li></ul><ul><li>Use and Disposal </li></ul>