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Consumer behavior has changed dramatically in the past

decade.

For example, the use of the Internet has allowedconsumers to order online, receive information without leaving

their homes, and sell products without advertising in the local

newspaper.

Buying Behavior is the decision processes and acts of people

involved in buying and using products

Concept

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CONSUMERCONSUMER

An individual who buys products or services for personal

use and not for manufacture or resale.

There is increasing use of the term "consumer" rather than"customer.

The consumer drives the economy by purchasing goods

and services from vendors.

` Action of an individual towards a situation

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CONSUMER BEHAVIOR

Consumer Behavioris the study of-

People Do Or Do

Not Buy Product

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CONSUMER BEHAVIOR

Study of when, why, how, and where people do or do not

buy product.

It attempts to understand the buyer decision making

process, both individually and in groups.

Behavior that consumers display in searching for,

purchasing, using, evaluating, and disposing of products

and services that they expect will satisfy their needs.

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Consuming Entities Kinds

The personal consumer

Products are bought for

final use by individuals(referred to as end users

or ultimate consumers).

The organizational consumer

The organizational consumer

includes profit and not-for-profit businesses, government

agencies, and institutions, all of

which must buy products,

equipment, and services in

order to run their organizations.

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OrganizationalInfluenceConsumerInfluence

Obtaining Consuming Disposing

CONSUMER

BEHAVIOR

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Consumer Behavior reflect more than how a product to be acquired

by a single person at a point of time.

CASESTUDY

Think of some marketing strategies & Tactics that try to

influence one or more dimension of consumer behavior with

Reference to Consumer Durable.

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StimuliInformation

SearchConsumer

DecisionMaking

Response

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Typical Expenditure

ofIndividual Household

S.No Particular %

1 Groceries 34

2 Utilities 13

3 Investment 12

4 Personal Grooming 9

5 Entertainment 86 Children 7

7 Travel 6

8 Loan/Taxes 6

9 Other Expense 5

11

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34

1312

9

8

66

5

% wise

Groceriesutilities

investment

personal grooming

Entertainmentchildren

Travel

Loan/Taxes

Other Expense

Typical Expenditure of Individual Household

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A new product must satisfy consumer needs, not the needs and

expectations of management.

Understanding and adapting to consumer motivation and behavior is

not an option it becomes a necessity for competitive survival.

STATEMENT

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4AA batteries include

Red indicator light on front

will blink to indicate the

dispenser is activated.

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Background:

Cadbury dominates the chocolate market in India with a 70%

share of the market.

Cadbury Dairy Milkis its largest chocolate brand which

accounts for a third of every chocolate bar consumed.

Cadbury DairyMilk

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The Task:

In 2005 the task before Cadbury Dairy Milkwas to increase its consumerfranchise.

The Strategy:

The task was to get the youth audience to adopt Cadbury Dairy Milk inthe sweet eating or " muh meetha karna" moments

The campaign of " Jab Pappu Pass Ho jaye, Kuch Meetha Ho jaye"

captured the thought of celebrating a moment of delight with Dairy Milk

A campaign was built around the idea of how "pappu" celebrated

passing his exams with Dairy Milk

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TheMedia:

Amulti-media campaign was launched on TV, Internet, Radio andOutdoor

The key was how do own the moment of " pappu passing his exams" in

the media space

An innovative tie -up with Reliance webworld was executed, wherein

students across 66 examination boards across the company could access

their results on Rworld through their Reliance mobiles. If they passed a

message congratulating them on their moment of delight from DairyMilk was displayed

The Results:

The activity contacted 20 MN students across the country and was

awarded a Bronze Lion at the Cannes Media awards in 2005

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Application of

CB

For Formulating Integrating Strategies.

Target Market Selection.

Market Opportunities.

Marketing Mix determination.

Comparative Advertisement.

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Factor Influencing Consumer Behavior

Consumer purchases are influenced strongly

Four Factors-

Cultural Factor Social Factor

Personal Factor Psychological Factor

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Characteristics Affecting Consumer Behavior

Buyer

Psychological

Personal

Social

Culture

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Factors Affecting Consumer Behavior: Culture

Social Class

People within a social classtend to exhibit similar buyingbehavior.

Occupation

Income

Education

Wealth

Most basic cause of a person's wants andbehavior. Values Perceptions

Subculture

Groups of people with sharedvalue systems based on commonlife experiences.

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Factors Affecting Consumer Behavior: Social

Groups

Membership

Reference

Family

Husband, wife, kids

Influencer, buyer, user

Roles and Status

Social Factors

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Factors Affecting Consumer Behavior:Personal

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Cognitive thinking process:

a) Perceptionb)Attitude

c) Need & Motives

Consumer Personal

Characteristics:

a) Demographyb) Lifestyles

c) Personality

Situational Variable Influence:

a) Purchase Occasionb) Market Communication

c) Product Positioning

d) Stores Patronage & Shopping

Behavior

e) Sales Personnel Influence

Culture:a) Values, belief

b) Cross Cultural Influence

c) Sub Cultural Influence

Social:

a) Social Class Structureb) society

Influential Group:

a) Reference Group

b) Familyc) Opinion

d) Innovation

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Four S's of experience gift giving

Surprise

Suspense

Sacrifice

Sharing

Consumer Gifting Behavior

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ConsumerGifting Behavior

TITLE DEFINITION

Inter-Group Group giving a gift to another group.

Inter-Category An Individual giving a gift to a group/A groupgiving a gift to a individual.

Intra-Group Group giving gifts to itself or its members.

Inter-Personal Individual giving a gift to another individual.

Intra-Personal Self-Gift.

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Diversity of Consumer Behavior

Customer

Need to understand the term Customer/ Consumer.

1990s

From the consumers point of view : Consumers today are in a tough

spot. Today, in the highly developed & technologically advanced

society, the consumers have a great deal of choices & options (and often

very close & competing) to decide on.

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Diversity of Consumer Behavior

From the marketers point of view : The purpose of marketing is to

sell more stuff to more people more often for more money in order to

make more profit.

For the consumers are today more informed, more

knowledgeable, more demanding, more discriminating.

The marketers have to earn them or win them over.

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Consumer Research

Part of Market Research in which the preference, motivation

and buying behavior of the targeted customer are identified

To determine as toWHY consumers made the purchase decisions.

To understandHOW consumers would react to promotional messages.

Formulating marketing strategies & in developing appropriate

promotional messages.

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Value of Consumer Research

Provides information on how the consumers are behaving at the

market place.

It can be used as a means of identifying future consumer needs ormarketing opportunities

To get in to customer mind

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Quantitative Research is descriptive in nature & is used by researcher to

understand the effect of various promotional input on the

consumer, thus enabling the marketer to predict consumer behavior.

The Research method used:

Experiment

Survey Technique

Observation

Consumer Research Paradigm

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Consumer Research Paradigm

Qualitative research method are used by researcher who are interested in

act of consumption rather than act of buying. These technique are

administered by highly trained interviewer analyst who also analyze

the findings. Research focus on understanding consumer experience

These Research include:

Depth Interview

Focus Group

MetaphorAnalysis

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Quantitative vs. Qualitative

Quantitative Research:

Structured research

instruments

Larger sample size

Results easily replicated

Information about how often

orhow many

Less in-depth, flexible

Qualitative Research:

Less structured instruments

Smaller sample size

Results difficult to replicate

Information about why and

how

More in-depth, flexible

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Quantitative vs. Qualitative

Quantitative Research:

Researcher should

know clearly what he /she is looking for

Statistical analysis

Qualitative Research:

Researcher may only

know roughly what he /she is looking for

Analysis is subjective

Can be used to

determine the focus offollow-up, quantitative

inquiries

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