Cognitive Dissonance In Context Of Consumer Buying Behavior

Presented By:Gaurav Juneja

PGDM - 5867

Cognitive dissonance

• Cognitive dissonance is an uncomfortable feeling caused by holding conflicting ideas simultaneously

• Customer do this by changing their attitudes, beliefs, and actions

• Dissonance is also reduced by justifying, blaming, and denying

• In a state of dissonance, people may feel surprise, dread, guilt, anger, or embarrassment

• People are biased to think of their choices as correct, despite any contrary evidence

• A classical example of this idea (and the origin of the expression "sour grapes") is expressed in the fable The Fox and the Grapes

Stages of the Consumer Buying Process:

Stages

• Problem Recognition--difference between the desired state and the actual condition

• Information search-- Internal search, Memory.• Evaluation of Alternatives--need to establish criteria for

Evaluation features the buyer wants or does not want. • Purchase decision--Choose buying alternative, includes

Product, package, store, method of purchase etc• Purchase--May differ from decision, time lapse between

4 &, product availability• Post-Purchase Evaluation-- outcome: Satisfaction or

Dissatisfaction.

Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an Indian meal, may think that really you wanted a Chinese meal instead.

Types of Consumer Buying Behaviour

• Level of Involvement in purchase decision. Importance and Intensity of interest in a product in a particular situation

• Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others

The four type of consumer buying Behaviour are:

• Routine Response/Programmed Behaviour

• Limited Decision Making• Extensive Decision Making/Complex

high involvement• Impulse buying

Factors Effecting the Consumer Buying Decision Process

• Cultural and sub culture Factor - the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation

• Social Factor - Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture

• Family Influence - Role...things you should do based on the expectations of you from your position within a group.

• Reference Group - Individual identifies with the group to the extent that he takes on many of the values, attitudes or Behaviours of the group members.

• Social Class - An open group of individuals who have similar social rank.US is not a classless society. US criteria; occupation, education, income, wealth, race, ethnic groups and possessions.

• Personal factor – unique to a particular person. Demographic factor, sex, age, race etc.

• Psychological factors – Psychological factors include motive

Research and Analysis

• The systematic and objective identification, collection, analysis, dissemination, and use information for the purpose of assisting management in decision making related to the identification and solution of problem and opportunities in marketing.

• Research problem – to study buying behaviour of consumer for indigenous and imported products.

• Data Source – primary data and secondary data.• Research approach – survey approach.• Research approach – exploratory method.• Research instruments – Questionnaire

Q1. Persons Like to go Shopping

Supermarket

Mall

Traditional Shop

E- Shopping

0 5 10 15 20 25 30 35

No. of Respondents

Interpretation: at present time mostly customer like to went to the mall (43%) and consumer second preference super mart (24%) and third preference equally e-shopping and traditional shopping(16%).

Q2. No. Of Visit

• Interpretation: Consumer behaviour was to for the shopping in the mall, e-shopping, supermarket and traditional shops. Only 36% consumer want to go to the daringly and 30% of the consumer monthly and 18% customer 15-20 days and 16% customer rarely go for shopping.

During weekend

Monthly

15-20 Days

Rarely

0 5 10 15 20 25 30

No. of respondents

Q3. Are You Brand Conscious

• Interpretation: 67% users said that we are brand conscious and only 33% customers not like a brand means that he is not dependent on branded product.

67%

33%

Yes No

Q4. Satisfied with the brands available in the market

• Interpretation: in the market 86% customers said that branded product easily available and in the market and 14% customer said that not easy available in the present market

86%

14%

Yes No

Q5.Favours in liberalization for easy availability of imported goods.

• Interpretation: 86% of customers said that in the market easy availability of the imported products.

Yes

No

0

10

20

30

40

50

60

Q6.Parameter effect of buying decision

• Interpretation: in the market customer behaviour on the basis of the buying product mostly people prefer a quality as 51% and other 49% people buying on the basis of easy availability and price and only 2% people like State/City.

Quality50%

Price21%

Easy availability27%

National/State1%

No. Of respondents

Q6. Types of garment you prefer

Imported

Indigenous

2.5 7.5 12.5 17.5 22.5 27.5 32.5 37.5 42.5Imported Indigenous

No. Of respondents 28 42

Percentage of respondents 0.4 0.600000000000001

Chart Title

Q7. Types of cosmetic prefer

• Interpretation: in the market 60% customer prefer a Indian cosmetic product and only 40% customer like international cosmetic product

Imported Indigenous

No. of respondents 28 42

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

42.5

No. of respondents

Conclusion and Suggestion

• These days no of customer buying from malls has been increased also the frequency to visit the malls has been increased substantially. People are more brands conscious and they are satisfied with the range of products available there.

• We can conclude from our study that still more inclination is towards indigenous product the preference ratio of indigenous to imported products is 6:4. This is because of the relatively higher price of imported product.

Suggestion• Customer like best quality on any price, so company should add latest

technology to their products.• After sales services is the area where Indian and international company

can highly satisfy the existing customer, because they can make more customer through their word of mouth. So Indian and International Company should provide latest and reliable service to their customers.

• Customer’s behaviour always looks for some extra benefit with purchasing. They demand for affordable price for product and gifts with purchasing.

• International Company should make strategy to cater every income group customers in city. Upper income group are affordable to purchase but lower income group is not. So International Company should make policies to send their product and every home.

• The Indian company should give more emphasis on advertising to create market awareness and to make a brand image in the minds of investors.