consumer behavior - marketing management 1

8/12/2019 Consumer Behavior - Marketing Management 1

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Consumer Decision Making

Process


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Demographic Profiles

CCDC

Barista

Starbucks Costa


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Non loyal

respondents

responses to coffeecafes

Loyal CCDC

consumerresponses

Loyal Barista

consumerresponses

1 It is an expensive brand of coffee 4.23 2.31 2.57

2

The brand's customers are young and highly

aspirational 3.85 4.11 3.97

3 The place is for everyday coffee lovers 2.53 3.97 3.09

4

The people who visit this place are tech savvy

and possess the latet gadgets 3.33 3.91 3.43

5

The aroma of this brand of coffee is very

pleasant 3.63 3.66 3.86

6

This brand is meant to dissociate the coffee

drinking habit from being a mundane activity 3.03 3.46 2.8

7 The coffee is priced competitively 2.33 3.29 3.14

8

The people who drink this brand of coffee are

professionals and are sophisticated 3.38 4.2 3.2

9 The brand's caf is a place to hang out 3.9 4.03 3.26

10

The brand's caf is the perfect place to enjoy

solitude. 2.7 4.23 3.97


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Non loyal respondents

responses to coffee cafes

Loyal CCDC

consumer

responses

Loyal Barista

consumer

responses

11The brand projects a sophisticated image. 3.8 4.2 4.26

12It is a trend to drink the brand's ccoffee. 3.63 3.63 3.09

13

The brand's coffee makes one feel proud

about drinking coffee. 3.08 3.23 4

14

The brand reminds me of my friends and

the times we spent together 3.45 4.26 3.69

15

The brand's caf is a place for recreation,

appropriate for one to enjoy and have fun. 3.63 3.86 3.77

16

The brand's caf is a place to spend time

with friends. 3.9 2.6 3.89

17The prices are reasonable and affordable. 2.48 3.71 3.74

18

The customers are urban people whofollow the latest fashion. 3.58 3.86 3.4

19

This brand is meant for highly recognised

people. 3.1 2.6 2.29

20

The brand has the authentic colour of

coffee. 3.28 3.71 4.17

21

Consuming this brand of coffee makes one

feel refreshed and energised. 3.43 3.69 4.0322The brand uses quality ingredients. 3.48 4.03 4.23


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Non loyal

respondents

responses to coffee

cafes

Loyal CCDC

consumer

responses

Loyal Barista

consumer

responses

23The brand's caf is a place to meetnew people 2.55 4.37 4.17

24

The dcor of this brand's caf

reminds people of luxury. 3.25 4.11 4.06

25

The strength of this brand's coffee is

appropriate and has a lasting effect. 3.3 3.91 4.17

26

One feels westernised while

drinking the coffee associated with

this brand. 3.35 3.17 3.29

27

The brand's caf is a place to have

formal meetings. 2.95 4.26 3.77

28

This brand stands for quality coffee

that guarantees satisfaction. 3.5 3.89 4.11

29

The entire setting of this brand's

caf such as its interiors, lighting.

Dcor, etc creates excitement. 3.5 3.89 4.03

30

A large variety of beverages is

available at this brand's caf. 3.33 3.71 3.31

31

The interiors of this brand's caf

makes me feel relxaxed. 3.58 4.71 4.17

32The brand highlights one's status 3.53 3.57 4.34


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Self-fulfilling Effect or thePygmalion Effect

the difference between a lady and a

flower girl is not how she behaves but

how she's treated. I shall always be a flower

girl to Professor Higgins, because he always

treats me as a flower girl, and always will,

but I know I can be a lady to you because

you always treat me as a lady, and

always will."


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Indian ConsumerShare of Wallet

2005 2025

Food, Beverage, Tobacco 42% 25%

Transportation 17% 20%

Health Care 7% 13%

Personal products 8% 11%

Education & recreation 5% 9%

Housing & utilities 12% 10%

Communication 2% 6%

Apparel 6% 5%Household Products 3% 3%

Source : McKinsey Global Institute


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How India Spends2009-10 (NSS)Expenditure Bottom

(10%)

Middle(40-

50%)

Top (10%) All India

Cereals 24.9 16.2 4.8 12.5

Pulses 4.7 4.1 1.6 3.3

Fruit & veg 9 8 4.7 7

Sugar 2.4 2.6 .9 2Milk & Milk pr 4.1 8.8 6.2 7.9

Eggs,

fish,meat

2.9 3.7 2.1 3.1

Edible oil 4.8 3.9 1.5 3.1

Beverages 5.1 5.4 7.1 5.7

Other FMCG 4.8 4.9 3.4 4.4

Pan &

Intoxicants

2.2 2.3 0.9 1.7

FOOD 64.9 59.9 33.2 50.8


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How India Spends2009-10 (NSS)Expenditure Bottom

(10%)

Middle(40-

50%)

Top (10%) All India

Durables 2.3 2.7 9.8 4.8

Entertainment 0.3 1 1.5 1.2

Fuel & Light 11.9 10.2 5.5 8.5

Clothing 7 6.3 4.6 5.7Education 1.7 3.1 12.2 6.1

Health 3 4.6 7.4 5.7

Conveyance 1.4 3.2 7.7 4.9

Consumer

Service

3.1 4.5 8 5.6

Others 4.4 4.6 9.9 6.6

Non Food

Total

35.1 40.2 66.6 49.2


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Some key sources of data

NCAER

Indian Readership Survey

Ministries McKinsey Global Institutes study on The

Rise of Indias Consumer Market


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Copyright 2009Dorling Kindersley

What Influences

Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors


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According to Hofstede (1980),culture is

the collective programming of the mind

which distinguishes the members of one

human group from another.Culture determines the identity of a

human group. Hofstede distinguishes

values as individual and cultures associeties.


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Culture

Power Distance

Individualism & Collectivism

Masculinity & Feminity Uncertainity


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What is Culture?

Culture is the fundamental determinant of

a persons wants and behaviors acquired

through socialization processes with family

and other key institutions.


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Cultural Factors

Did culture influence consumer behavior of

your product:

Sub culture : race, geography, religion,

nationality.

Social Class : Education & Occupation


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Socio economic Classification

Urban : Occupation & Education ( SEC A,

B,C & D )

Rural : Type of House ( pucca, semi-pucca

and kucha ) and education ( R 1, R2 etc )


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Socioeconomic Classification (SEC) MatrixIndia (Urban)


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The rural area is segregated in to: R1,

R2, R3, R4.

Education of chief

wage earner

Type of House

Pucca Semi-pucca Kuchcha

Professional

degree

R1 R2 R3

Graduation/ PG R1 R2 R3

College R1 R2 R3SSC/HSC R2 R3 R3

Class 4-Class 9 R3 R3 R4

Up to class 4 R3 R3 R4

Self-learning R3 R4 R4

Illiterate R4 R4 R4


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No of HHs ( % of HH) in each segment

Urban

A1:1

A2: 1.9

B1: 2.5B2: 2.6

C: 6.2

D: 7.0

E1: 3.2

E2: 5.4

Sub-Total : 28.8

Rural

R1: 2.7

R2: 7.6

R3: 26.9

R4: 33.0

Sub-Total : 70.2

Source : Marketing Whitebook


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Characteristics of Social Classes

Within a class, people tend to behave alike

Social class conveys perceptions of

inferior or superior position

Class may be indicated by a cluster of

variables (occupation, income, wealth)

Class designation is mobile over time


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Social Factors

Identify the following of your consumer:

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups

Opinion Leaders


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What other Social Factors influenced your

products consumer behavior?

Reference

groups

Socialroles

Statuses

Family


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Roles and Status

What degree of status is

associated with various

occupational roles?


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Personal Factors

Age

Values

Life cycle

stage

Occupation

Personality

Self-

concept

Wealth

Lifestyle


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The Family Life Cycle

Group #5:

Explain your

study in this

context.


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Lifestyle Influences

Multi-tasking

Time-starved

Money-constrained

Group #7:

What was the lifestyle of your consumer?


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Faysal Bank of

Pakistan has

extended bankinghours for time-

pressed executives.


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LOHAS (Lifestyles of Health and

Sustainability) Market Segments

Sustainable Economy

Healthy Lifestyles

Ecological Lifestyles Alternative Health Care

Personal Development


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Model of Consumer Behavior


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Key Psychological Processes

Motivation

MemoryLearning

Perception


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Motivation

Freuds

Theory

Behavior

is guided by

subconscious

motivations

Maslows

Hierarchy

of Needs

Behavior

is driven by

the lowest,

unmet need

Herzbergs

Two-Factor

Theory

Behavior is

guided by

motivating

and hygiene

factors


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Maslows Hierarchy of Needs


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Herzbergs Two-Factor Theory

Absence of dissatisfiers not enough. Satisfiers must be present.


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Herzbergs theory

Herzbergs theory has two implications. First,

sellers should do their best to avoid dissatisfiers

(for example, a poor training manual or a poor

service policy). Although these things will not sella product, they might easily unsell it. Second,

the seller should identify the major satisfiers or

motivators of purchase in the market and then

supply them. These satisfiers will make themajor difference as to which brand the customer

buys.


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Perception

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion


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State Farm Mental Map


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Mental Accounting

Consumers tend to

Segregate gains

Integrate losses Integrate smaller losses with larger gains

Segregate small gains from large losses


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Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase

Behavior


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Problem Recognition


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Copyright 2009

Dorling Kindersley

Sources of Information

Personal

ExperientialPublic

Commercial


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Copyright 2009

Dorling Kindersley

Figure 6.5 Successive Sets Involved in



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Copyright 2009

Dorling Kindersley

Rural Consumer Behaviour

Rural consumers are more brand loyal

Restrictions on consumption

Collective consumption behaviour: for

family rather than individual Seasonality of consumption based on

seasonality of agricultural

production/income Specific patterns in the five-stage buying

decision process


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Other Theories of


Involvement Elaboration likelihood

model

Low-involvement marketing

strategies

Variety-seeking buying

behavior

Decision Heuristics (

non rational) Availability quickness & ease

Representativeness ie how

similar is the outcome

Anchoring and adjustment .

First impressions are lastingimpressions.

consumer behavior - marketing management 1

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