bhawna unit 1cb

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Consumer BehaviorConsumer Behavior

UnitUnit--11

By:

Bhawna Srivastav

MBA (SMS-20/2010)


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DefinitionDefinition

y The decision process and physical activity engaged in when

evaluating, acquiring, using or disposing of goods and services.

y It blends elements from psychology,

sociology, social anthropology and economics.

y

It attempts to understand the buyer decision making process, bothindividually and in groups.

y It studies characteristics of individual consumers such

as demographics and behavioral variables in an attempt to

understand people's wants.

y

It also tries to assess influences on the consumer from groups suchas family, friends, reference groups, and society in general.


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NATURE OF CONSUMERNATURE OF CONSUMER

BEHAVIOURBEHAVIOUR

y Consumer Behaviour is dynamic in nature, means it keeps on

changing challenging, to study a human mind is a very big

task.

y Coming to the scope of consumer behavior it has a vast

scope we include the whole world into it and for every

product whether electronics, FMCG, consumer durables etc,

we need to study consumers' mind


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Scope of CBScope of CB

y Scope of Consume behavior refer to the study of market potential

available in particular Area of the country, based on the customer

taste, habits and standard of living of the people living there.

Psychology

y Sociology

y Social Psychology

y Cultural Anthropology

y Economics


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Some ConsumerSome Consumer BehaviourBehaviour

RolesRoles

Role Description

y Initiator :The person who determines that some need or want is

not being met.

y Influencer :The person who intentionally/unintentionally influences

the decision to buy the actual purchase and/or use of product orservice.

y Buyer :The person who actually makes the purchase.

y User :The person who actually uses or consumes the product or

service.


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Importance ofStudy of consumerImportance ofStudy of consumer

behaviorbehavior To design the optimal product or service forcustomers. To determine where the product or Service shouldbe available that would easy for the customers to

buy. To determine what price will the customers give uppurchasing product or service? To determine which method of Promotion would bemost effective for getting the customers to buy a

product. It helps in changing the behavior of the consumers. To improve performance of the organization. To achieve the organizational objectives.


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Framework for studying CBFramework for studying CB


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Marketing Strategy andMarketing Strategy and

ConsumerConsumer BehaviourBehaviour

y (i) Marketing Analysis

y (a) Consumer

y (b) Company

y (c) Competition

y (d) Condition

y (ii) Marketing Segmentationy (e) Identify product related needs

y (f) Group customers with similar need sets

y (g) Describe each group

y (h) Select target market

y (iii) Marketing Strategy

y (i) Product

y (j) Price

y (k) Distribution

y (l) Communication

y (m) Service


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y (iv) Consumer Decision Process

y (n) Problem recognition

y (o) Information searchinternal, external

y (p) Alternative evaluation

y (q) Purchase

y (r) Use

y (s) Evaluation

y (v) Outcomes

y

(t) Customer satisfactiony (u) Sales

y (v) Product/Brand image


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Problems in studying CBProblems in studying CB

y Changing Values and lifestyle.

y Culture and cross-cultural differences.

y Recognizing actual problem

y Consumers are extremely complex individuals

y Each consumer segment has unique need


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The Consumer Buying ProcessThe Consumer Buying Process

Marketing Inputs

Product

Price

Promotion

Place

Consumer

Purchase Decisions

Product Choice

Location Choice

Brand Choice

Other Choices

Psychological Inputs

Culture

Attitude

Learning

Perception


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The Buying Decision ProcessThe Buying Decision Process

1. Recognition of the need e.g a new PC

2. Choice of involvement level (time and effort justified)

e.g. two week ends

3. Identification of alternatives e.g.Dell, PC World

4. Evaluation of alternatives I.e. price, customer service,

software support, printer/scanner package

5. Decision - choice made e.g Epsom

6.Action e.g buy Epsom model from Comet

7. Post-purchase behaviour I.e. use, breakdowns, etc


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Types of buying behavior.Types of buying behavior.

There are four typical types of buying behavior based on the typeof products that intends to be purchased:

1) Complex buying behavior is where the individual purchases a

high value brand and seeks a lot of information before the

purchase is made.

2) Habitual buying behavior is where the individual buys aproduct out of habit e.g. a daily newspaper, sugar or salt.

3) Variety seeking buying behavior is where the individual likes

to shop around and experiment with different products.

4) Dissonance reducing buying behavior is when buyer are highly

involved with the purchase of the product, because thepurchase is expensive or infrequent.


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