cb 1 mba 2 finl
TRANSCRIPT
-
8/7/2019 CB 1 MBA 2 finl
1/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Consumer BehaviorAn Introduction
-
8/7/2019 CB 1 MBA 2 finl
2/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
What isConsumer Behavior?
The behavior that consumers display in searching for,
purchasing, using, evaluating & disposing of products &services that ,they expect, will satisfy their needs.
Focuses on how individuals make decisions to spend their available
resources (time, money & effort) on consumption related items.
Decisions related to what they buy, why they buy it, when theybuy it, where they buy it, how often they buy it, how often they useit, how they evaluate it after the purchase and the impact of suchevaluations on future purchases and how they dispose off.
-
8/7/2019 CB 1 MBA 2 finl
3/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
-
8/7/2019 CB 1 MBA 2 finl
4/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
This study draws on conceptsfrom various other disciplines
Psychology
Sociology
Anthropology
Economics
Marketing
-
8/7/2019 CB 1 MBA 2 finl
5/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Need to study ?
You cannot take the consumer for
granted any more
Therefore asound understanding of
consumer behavior is essential for thelong run success ofany marketing
program
-
8/7/2019 CB 1 MBA 2 finl
6/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Perspectives
1. Understanding and predicting consumer
behavior
2. Cause and effect relationships that
govern persuasion and/or education
-
8/7/2019 CB 1 MBA 2 finl
7/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Why is this important?
Out of11000 products launched by 77
companies, only 56% are present fiveyears later
Only 8% of new product concepts offered
by112 leading companies reached themarket.Out of this 83% failed to reach
marketing objectives
-
8/7/2019 CB 1 MBA 2 finl
8/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
A new product must satisfy
consumer needs, not the needs
and expectations of management.
Understanding and adapting to
consumer motivation andbehaviour is not an option it
becomesa necessity for
competitive survival
-
8/7/2019 CB 1 MBA 2 finl
9/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Dominant forces shaping
Consumer Research
Factors that move an economy from
Production-driven to Market-driven
Level ofsophistication with which humanbehaviour is understood in psychologyand
other behavioural sciences
-
8/7/2019 CB 1 MBA 2 finl
10/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Environmental factors that affectthe marketing challenge
Extent to which the supply of valid productsand
services exceed consumer demand Ability to communicate with customers quickly
and accurately
Existence of multiple avenues of distribution
quicklyand economically Extent to which marketers can influence toinduce distributors to comply with overallmarketing strategy
Economic growth, both nationallyand globally
-
8/7/2019 CB 1 MBA 2 finl
11/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
All managers must become astute
analysts of Consumer motivation
and Behavior
Three foundations for marketing decisions
Experience Intuition
Research
-
8/7/2019 CB 1 MBA 2 finl
12/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Enhancing Consumer Value-added
Marketers have to constantly innovate
after understanding their consumers to
strip out costs permanently by focusing
on what addsvalue for the customerand eliminating what doesnt.
-
8/7/2019 CB 1 MBA 2 finl
13/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Variables involved in understanding
consumer behavior
Stimulus ads, products,
Response physical/mental reaction to the
stimulus Intervening variables mood, knowledge,
attitude,values,situations, etc.
-
8/7/2019 CB 1 MBA 2 finl
14/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Maslows Hierarchy of Needs
Esteem Needs(self-esteem, status)
Social Needs(sense of belonging, love)
Safety Needs(security, protection)
Physiological Needs(hunger, thirst)
SelfActualization
(Self-development)
-
8/7/2019 CB 1 MBA 2 finl
15/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
IndianC
onsumer:Prominent Characteristics Rationale
Price sensitive Brand conscious
Varietyseeker
C
onspicuous Looks forvalue for money
QualityConscious
Impacted by Western culture
-
8/7/2019 CB 1 MBA 2 finl
16/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Market Segmentation
Process of defining and sub-dividing a largehomogenous market into clearly identifiable segmentshaving similar needs, wants, or demand characteristics.Its objective is to design a marketing mix that preciselymatches the expectations of customers in the targetedsegment..
A marketing technique that targetsa group of customerswith specific characteristics.
-
8/7/2019 CB 1 MBA 2 finl
17/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Need forMarket Segmentation
Better understanding of customerrequirements
Handling competition effectively
Focusing customization QualityEnhancement
-
8/7/2019 CB 1 MBA 2 finl
18/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
Basis forSegmentingConsumerMarkets
Geographic Demographic
Psychographic
Behavioralistic
-
8/7/2019 CB 1 MBA 2 finl
19/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
1. Geographic Segmentation Region: by continent, country,state, or even
neighborhood.
Size of metropolitan area: segmented
according to size of population
Population density: often classified as urban,
suburban, or rural Climate: according to weather patterns common
to certain geographic regions
-
8/7/2019 CB 1 MBA 2 finl
20/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
2. Demographic Segmentation Age
Gender
Familysize Family lifecycle
Income
Occupation
Education Nationality
Religion
Social class
-
8/7/2019 CB 1 MBA 2 finl
21/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
3. Psychographic Segmentation
Activities Interests
Opinions
Attitudes Values
-
8/7/2019 CB 1 MBA 2 finl
22/22
AMITY GLOBALBUSINESS SCHOOL Chandigarh
4. Behavioralistic Segmentation
Benefits sought Usage rate
Brand loyalty
User status: potential, first-time, regular, etc.
Readiness to buy
Occasions: holidaysand events that stimulate
purchases