consumer behavior in marketing

8/8/2019 Consumer Behavior in marketing

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Consumer Behavior

Who buys the product?

What does he buy?

When does he buy? How does he buy?

Why does he buy?

Where does he buy


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Who buys the product?

Individual orIndustrial buyer

On the basis ofInvolvement of customer products can be classified as

a) High Involvement Product

b) Low Involvement Product

High Involvement Product

Characteristics

High Price ( TV)

Complex Features ( PC, motor cycles)

Large difference between alternatives

High Perceived Risk ( Shares, Perishable products)

Reflecting self concept ( clothes, perfumes, jewellery , Hobbies)

Low Involvement Product

Low cost, not reflecting buyers self concept, small difference between alternatives

. Eg toilet soap


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Classification of behavior Depending on Involvement and differentiation

of product (buying situations)

Routine response

Limited Decision making

Extensive Decision making

Routine response

low involvement & low differentiation .eg toilet soap , tooth paste

Products with lower price & frequently purchased

Limited Decision making

High involvement & low differentiation . Eg TV, refrigerators ,new brand

Comparative Investment is more and less frequently purchased.

Time consuming ,moderate risk and leads to trial purchase.

Companys strategy is brand extension (lifeboy liquid soap) to avoid

newness

Extensive Decision making

High involvement & High differentiation

Purchasing unfamiliar product ,high price and purchased once


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What does he buy?

product or service (what type)

Product classification

On the basis of durability

Non durable products ( soap, foods products)

Durable Products ( TV, automobile etc)

Services


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Product

Consumer Goods Industrial Goods

Convenience Shopping Specialty Unsought

furniture Mercedes encyclopedia

life insurance

Staples Impulse Emergency

salt cold drink drugs,umbrela

Toothpaste ice cream

soap


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Theories of Motivations


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SELF

ACTUALIZATION

ESTEEM NEEDS

SOCIAL NEEDS

SAFETYNEEDS

PRIMARYNEEDS

MASLOWS HIERARCHYTHEROM


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ASSUMPTIONS

MANIS WANTING BEING

SATISFIED NEED IS NOT MOTIVATOR

NEEDS HAVE HIERARCHY OF IMPORTANCE

Basic Needs- air, food, drink, shelter, warmth, sex, sleep, etc.

Safety Needs- protection from elements, security, order, law, limits,stability, etc.

Affiliation work group, family, affection, relationships, etc.

Esteem Needs Self esteem, achievement, recognition

Self Actualization Personal Potential, personal growth, self fulfillment


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Hertzberg's Two FactorTheory

Satisfiers (Motivators) and dissatisfiers (Hygiene) present in work situation

Presence of motivators motivate persons but absence doesnt affect that much

where as presence of hygiene affects more.

Motivators brand name, customer service, focused sales team

Hygiene product quality, price, warranty

McClelland's Theory of Achievement Motivation

Three motives that drive human performance .need for belonging, need for power and

need for achievement.

These drivers motivate customer to purchase product & marketer has to differentiate

advertise according to that.

Need for belonging- Johnson baby soap , Cadbury, Master card

Need for Achievement- Onida TV advertisement,

Need for power-


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Learning Theory

Learning through punishment or lure of reward which can be conditioned or

result of trial

It is result of factors like drives, stimuli, cues, responses and reinforcement

Theory of Cognitive Dissonance

Explains Customers post purchase behavior

Present when alternatives are more and all are almost similar also price of

product is more. Result of high involvement.

It is post purchase behavior when buying process or product performance

doesnt happen the way we expect. eg post purchase behavior for car

purchasing thinking about after sales service ,car performance


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STIMULI

MKTG OTHER

BUYER

CHARACTER. BUYING

ROCESS

CULTURAL

SOCIAL

PERSONAL

PSYCHOL

OGICAL

PROBLEM

RECOGNITION

INFORMATION

SEARCH

EVALUATION

OF

ALTERNATIVES

PURCHASE

DECISION

POSTPURCHAS

E BEHAVIOR

BUYERS

DECISSIONPRODUCT

CHOICE

BRAND

CHOICE

DEALER

CHOICE

PURCHAS

E TIMING

PURCHAS

E AMOUNT

PROD

UCT

PRICE

PROM

OTION

PLAC

E

POLITIC

AL

ECONO

MICAL

SOCIAL

TECHN

OLOGIC

AL

CONSUMER BEHAVIOR MODEL


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The Consumer Buying Process

Marketing Inputs

Product

Price

Promotion

Place

consumer

Purchase Decisions

Product Choice

Location Choice

Brand Choice

Other Choices

Psychological Inputs

Culture

AttitudeLearning

Perception


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Consumer Buying Behavior

Cultural Social Personal PsychologicalCulture

Subculture

Social class

Reference

group

-Primary

- Secondary

Roles status

Age

Occupation

Lifestyle

Personality self

concept

Perception

Motivation

Attitude

Need & motives

Learning


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Psychological Factors

Needs and motives

Customer buy product when there is need

Needs follows hierarchy when first is satisfied then second comes.

Basic need- Customer purchase toilet soap for basic need of cleaning when this is

satisfied then he goes for another

Security need- alarm or godrej lock

Love needs- greeting cards ,gifts, clubs, chocolates

Affiliation needs- parker pen, Mercedes car

Self actualization needs- social camps or activities, meditation camps etc

Perception

It is process of being exposed to Stimuli ( 4ps,environment),paying attention to

stimuli,selecting them,organizing , interpreting them and reacting to them.

It has three dimensions

Selective attention, Selective distortion and selective retention


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Selective attention

When stimuli matches to expectation and it is beneficial, attention is paid

Eg customer want to purchase car then only he will pay attention to different offers and

advertisements of cars

Selective Distortion

Happens because customer add their values and beliefs to the message.

Eg ITC cigarette add shown young person smoking with older persons

Kelvin Care add showing young children on ramp

Selective Retention


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Learning

It is the process by which people get knowledge and experience which they use

while buying and purchasing. Eg new product in market (liquid soap)

Attitude

Persons favorable or unfavorable reaction of a stimulus. It is the consistently

positive or negative inclination towards objects, ideas ,products or people.

Company has to influence attitude by taking help of marketing mix.( surf ki

kharidari mai hi samzdari hai)

Personal Factors

Age

It affects purchasing power, taste, needs ,interest and behavior

Stages like birth, infanthood, growing child, teenager, adolescent adult,middleaged and finally death

Income

Occupation and income affects consumer behavior.eg carpenter will purchase

hacksaw .car satisfies basic need of transportation but choice will different for

different income group


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Education

It affects consumer behavior as educated people will be well aware of alternatives.

Eg demand for magazine or news paperGeographic Location

Metro city, urban or rural area, cold area or desert. eg clothes

Personality

Persons distinct psychological and physical characteristics. Adventures sports-high risk takers

Cultural Factors

It represents all beliefs, values, traditions , habits shared by a group and passed

on to successive generations. It involves

Cultural Changes ( eg role of women)

Core values ( Cigarette advertisement showing young as well as old person)

Sub culture ( based on nationality, religion, region as north Indian)

Social Class ( lower , middle and upper class)


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Social Influences

Social Status or roles

Reference Group ( social ,economic or professional group)

Family

Roles as decider ,influencer, buyer and user.

Male dominating ; insurance

Wife dominating ; kitchen appliances

Situational Influence

Proper arrangement, display, advertisement ,recommendation by retailer


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Types of buyer behaviour

Complex buyer behaviour e.g. Intel

Pentium Processor

Dissonance-reducing behaviour (brandreduces after-sales discomfort)

Habitual buying behaviour e.g. salt - little

difference

variety seeking behaviour - significant

brand differences e.g. soap powder


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The Buying Decision Process

recognition of the need e.g. Bike

choice of involvement level (time and effort justified) e.g.two weeks

identification of alternatives e.g. Hero Honda ,Bajaj,TVS,LML

evaluation of alternatives I.e. price, instalment ,mileage,comfort ,style ,maintainace ,service,

decision - choice made e.g. Hero Honda

action e.g. buy Hero Honda post-purchase behaviourI.e. use, breakdowns, etc


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INDUSTRIAL BUYING BEHAVIOR

Marketing of goods to Industrial and Institutional Customers

Difference between consumer market and Industrial Market

Fewer buyers

Larger size buyers

Close supplier Customer RelationshipDerived Demand

Inelastic demand

Fluctuating Demand

Professional Purchasing

Several Buying InfluencesDirect Purchasing

Reciprocity

Geographic concentration of buyers


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Industrial Buying Process

Need Recognition

General need Description

Product Specification

Supplier Search

Inviting Proposal from qualified suppliers

Supplier Selection

Determination of Order Size and placement of order

Review and Feedback

consumer behavior in marketing

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