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Munif Ahmad Consumer Behavior By Munif Ahmad

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Page 1: Consumer Behaviour

Munif Ahmad

Consumer Behavior

By Munif Ahmad

Page 2: Consumer Behaviour

Munif Ahmad

Consumer Buying BehaviorConsumer Buying Behavior refers to the buying behavior of

final consumers (individuals & households) who buy goods and services for personal consumption.

Study consumer behavior to answer: ““How do consumers respond to How do consumers respond to

marketing efforts the company marketing efforts the company might usemight use?”?”

Page 3: Consumer Behaviour

Munif Ahmad

ConsumerPurchaseDecision

Motives

Personality

Needs

Perception

Learning

AttitudesB

usi

nes

sCultu

re

Economic

Fam

ilySocial

SIMPLE MODEL FOR CONSUMER BEHAVIOUR

Page 4: Consumer Behaviour

Munif Ahmad

Model of Consumer BehaviorMarketing andOther Stimuli

Marketing andOther Stimuli

Buyer’s ResponseBuyer’s Response

Product

Price

Place

Promotion

Economic

Technological

Political

Cultural

Characteristics Affecting Consumer Behavior

Buyer’s Decision Process

Product Choice

Brand Choice

Dealer Choice

Purchase Timing

Purchase Amount

Page 5: Consumer Behaviour

Munif Ahmad

Characteristics Affecting Consumer Behavior

BuyerBuyer

Psychological

Personal

Social

Culture

Page 6: Consumer Behaviour

Munif Ahmad

Factors Affecting Consumer Behavior:Culture

Social Class

• People within a social class tend to exhibit similar buying behavior.

• Occupation

• Income

• Education

• Wealth

Social Class

• People within a social class tend to exhibit similar buying behavior.

• Occupation

• Income

• Education

• Wealth

Most basic cause of a person's wants and behavior.

ValuesPerceptions

Most basic cause of a person's wants and behavior.

ValuesPerceptions

Subculture

• Groups of people with shared value systems based on common life experiences.

• North Indian Consumers

• African American Consumers

• Asian American Consumers

• Mature Consumers

Subculture

• Groups of people with shared value systems based on common life experiences.

• North Indian Consumers

• African American Consumers

• Asian American Consumers

• Mature Consumers

Page 7: Consumer Behaviour

Munif Ahmad

Factors Affecting Consumer Behavior:Social

Groups

• Membership

• Reference

Groups

• Membership

• Reference

Family• Husband, wife, kids• Influencer, buyer, user

Family• Husband, wife, kids• Influencer, buyer, user

Roles and StatusRoles and Status

Social FactorsSocial Factors

Page 8: Consumer Behaviour

Munif Ahmad

Factors Affecting Consumer Behavior:Personal Personal InfluencesPersonal Influences

Age and Family Life CycleStage

Age and Family Life CycleStage OccupationOccupation

Economic SituationEconomic Situation

Lifestyle IdentificationLifestyle Identification

ActivitiesActivities OpinionsOpinions

InterestsInterests

Personality & Self-ConceptPersonality & Self-Concept

Page 9: Consumer Behaviour

Munif Ahmad

VALS 2

Principle Oriented Status Oriented Action Oriented

AchieversAchievers

ActualizersActualizers

StrugglersStrugglers

StriversStrivers

FulfilledsFulfilleds

BelieversBelievers

ExperiencersExperiencers

MakersMakers

Abundant ResourcesAbundant Resources

Minimal ResourcesMinimal Resources

Page 10: Consumer Behaviour

Munif Ahmad

Factors Affecting Consumer Behavior:PsychologicalFactors Affecting Consumer Behavior:Psychological

Psychological Factors

MotivationMotivation

PerceptionPerception

LearningLearning

Beliefs and Attitudes

Beliefs and Attitudes

Page 11: Consumer Behaviour

Munif Ahmad

Maslow’s Hierarchy of Needs

Esteem Needs(self-esteem, status)

Social Needs(sense of belonging, love)

Safety Needs(security, protection)

Physiological Needs(hunger, thirst)

Self Actualization

(Self-development)

Page 12: Consumer Behaviour

Munif Ahmad

Types of Buying Decisions

ComplexBuying

Behavior

Dissonance-Reducing Buying

Behavior

Variety-SeekingBehavior

HabitualBuying

Behavior

HighInvolvement

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

LowInvolvement

Page 13: Consumer Behaviour

Munif Ahmad

The Buyer Decision Process

Need RecognitionNeed Recognition

Information SearchInformation Search

Evaluation of AlternativesEvaluation of Alternatives

Purchase DecisionPurchase Decision

Post-purchase BehaviorPost-purchase Behavior

Page 14: Consumer Behaviour

Munif Ahmad

SITUATIONS

ProblemRecognition

InformationSearch

Alternative Evaluationand Selection

Outlet Selectionand Purchases

Post-purchaseProcesses

SITUATIONS

EXTERNAL INFLUENCESCulture

SubcultureDemographicsSocial Status

Reference GroupsFamily

Marketing Activities

INTERNAL INFLUENCESPerceptionLearningMemoryMotives

PersonalityEmotionsAttitudes

SELF-CONCEPTand

LIFESTYLE

Desires

Experiences and Acquisitions

Experiences and Acquisitions

Needs

DECISION MAKING PROCESSES

Page 15: Consumer Behaviour

Munif Ahmad

The Buyer Decision ProcessStep 1. Need RecognitionThe Buyer Decision ProcessStep 1. Need Recognition

External Stimuli

• TV advertising

• Magazine ad

• Radio slogan

•Stimuli in the environment

External Stimuli

• TV advertising

• Magazine ad

• Radio slogan

•Stimuli in the environment

Internal Stimuli

• Hunger

• Thirst

• A person’s normal needs

Internal Stimuli

• Hunger

• Thirst

• A person’s normal needs

Need RecognitionDifference between an actual state and a desired state

Need RecognitionDifference between an actual state and a desired state

Page 16: Consumer Behaviour

Munif Ahmad

The Buyer Decision ProcessStep 2. Information Search

•Family, friends, neighbors•Most influential source of information

•Advertising, salespeople•Receives most information

from these sources

•Mass Media•Consumer-rating groups

•Handling the product•Examining the product•Using the product

Personal Sources Personal Sources

Commercial SourcesCommercial Sources

Public SourcesPublic Sources

Experiential SourcesExperiential Sources

Page 17: Consumer Behaviour

Munif Ahmad

The Buyer Decision ProcessStep 3. Evaluation of AlternativesThe Buyer Decision ProcessStep 3. Evaluation of Alternatives

Product AttributesEvaluation of Quality, Price, & Features

Product AttributesEvaluation of Quality, Price, & Features

Degree of ImportanceWhich attributes matter most to me?

Degree of ImportanceWhich attributes matter most to me?

Brand BeliefsWhat do I believe about each available brand?

Brand BeliefsWhat do I believe about each available brand?

Total Product SatisfactionBased on what I’m looking for, how satisfied

would I be with each product?

Total Product SatisfactionBased on what I’m looking for, how satisfied

would I be with each product?

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.

Page 18: Consumer Behaviour

Munif Ahmad

The Buyer Decision ProcessStep 4. Purchase Decision

Purchase IntentionDesire to buy the most preferred brand

Purchase IntentionDesire to buy the most preferred brand

Purchase DecisionPurchase Decision

Attitudes of others

Unexpected situational factors

Page 19: Consumer Behaviour

Munif Ahmad

The Buyer Decision ProcessStep 5. Postpurchase BehaviorThe Buyer Decision ProcessStep 5. Postpurchase Behavior

Consumer’s Expectations of

Product’s Performance

Consumer’s Expectations of

Product’s Performance

Dissatisfied Customer

Dissatisfied Customer

Satisfied Customer!Satisfied Customer!

Product’s Perceived

Performance

Product’s Perceived

Performance

Cognitive Dissonance

Page 20: Consumer Behaviour

Munif Ahmad

Stages in the Adoption Process

AwarenessAwareness

InterestInterest

EvaluationEvaluation

TrialTrial

AdoptionAdoption

Page 21: Consumer Behaviour

Munif Ahmad

Adoption of InnovationsP

erce

nta

ge

of

Ad

op

ters

Time of AdoptionEarly Late

Inn

ova

tors

Early Adopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority

Page 22: Consumer Behaviour

Munif Ahmad

Influences on the Rate of Adoptionof New Products

DivisibilityCan the innovation

be used on a trial basis?

CompatibilityDoes the innovation

fit the values and experience of the

target market?ComplexityIs the innovation

difficult tounderstand or

use?

Relative AdvantageIs the innovation

superior to existing products?

Communicability Can results be easily

observed or described to others?

ProductCharacteristics

Page 23: Consumer Behaviour

Munif Ahmad

Consumer Buying Behavior refers to the buying behavior of final consumers (individuals Behavior Consumer is a broad label that refers to any individuals or households that use goods and services generated within the economy. A consumer is a person who uses any product or service. 2. Consumer Buying & Study consumer behavior to answer: “How do consumers respond to marketing efforts the company might use?” (households) who buy goods and services for personal consumption.

Consumer Buying Behavior refers to the buying behavior of final consumers (individuals Behavior Consumer is a broad label that refers to any individuals or households that use goods and services generated within the economy. A consumer is a person who uses any product or service. 2. Consumer Buying & Study consumer behavior to answer: “How do consumers respond to marketing efforts the company might use?” (households) who buy goods and services for personal consumption.

Consumer Behavior Transcript

Page 24: Consumer Behaviour

Munif Ahmad

Model of Consumer Product Price Behavior Stimuli Marketing and Other Economic Technological Place Political Promotion Cultural Buyer’s Characteristics Decision Affecting Buyer’s Black Box Consumer Process Behavior Product Choice Purchase Timing Brand Choice Buyer’s Response Purchase Dealer Choice Amount

Model of Consumer Product Price Behavior Stimuli Marketing and Other Economic Technological Place Political Promotion Cultural Buyer’s Characteristics Decision Affecting Buyer’s Black Box Consumer Process Behavior Product Choice Purchase Timing Brand Choice Buyer’s Response Purchase Dealer Choice Amount

Transcript

Page 25: Consumer Behaviour

Munif Ahmad

Perceptions Subculture Social ClassGroups of people with sharedPeople within a social class value systems based on tend to exhibit similar buying common life experiences. behavior.North Indian ConsumersOccupationAfrican American Consumers • Income • Asian American Consumers • Education • Mature Consumers • Wealth Values Most basic cause of a person's wants and behavior. 4. Factors Affecting Consumer Behavior: Culture

Perceptions Subculture Social ClassGroups of people with sharedPeople within a social class value systems based on tend to exhibit similar buying common life experiences. behavior.North Indian ConsumersOccupationAfrican American Consumers • Income • Asian American Consumers • Education • Mature Consumers • Wealth Values Most basic cause of a person's wants and behavior. 4. Factors Affecting Consumer Behavior: Culture

Transcript

Page 26: Consumer Behaviour

Munif Ahmad

5. Factors Affecting Consumer Behavior: Groups Social Membership • Reference • Family Husband, wife, kids Social Factors • • Influencer, buyer, user Roles and Status

5. Factors Affecting Consumer Behavior: Groups Social Membership • Reference • Family Husband, wife, kids Social Factors • • Influencer, buyer, user Roles and Status

6. Factors Affecting Consumer Behavior: Personal Personal Influences Age and Family Life Cycle Occupation Stage Economic Situation Personality & Self-Concept Lifestyle Identification Activities Opinions Interests

6. Factors Affecting Consumer Behavior: Personal Personal Influences Age and Family Life Cycle Occupation Stage Economic Situation Personality & Self-Concept Lifestyle Identification Activities Opinions Interests

Transcript

Page 27: Consumer Behaviour

Munif Ahmad

7. Factors Affecting Consumer Behavior: Psychological Motivation Beliefs and Psychological Factors Perception Attitudes Learning

8. Maslow’s Hierarchy of NeedsSelf Actualization (Self-development ) Esteem Needs ( self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst)

7. Factors Affecting Consumer Behavior: Psychological Motivation Beliefs and Psychological Factors Perception Attitudes Learning

8. Maslow’s Hierarchy of NeedsSelf Actualization (Self-development ) Esteem Needs ( self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst)

Transcript

Page 28: Consumer Behaviour

Munif Ahmad

9.Types of Buying Decisions High Low Involvement Involvement Significant differences Complex Variety- between Buying Seeking brands Behavior Behavior Few differences Dissonance- Habitual between Reducing Buying Buying brands Behavior Behavior

10. The Buyer Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior

9.Types of Buying Decisions High Low Involvement Involvement Significant differences Complex Variety- between Buying Seeking brands Behavior Behavior Few differences Dissonance- Habitual between Reducing Buying Buying brands Behavior Behavior

10. The Buyer Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior

Page 29: Consumer Behaviour

Munif Ahmad

11. DECISION MAKING PROCESSES EXTERNAL INFLUENCES Experiences and Acquisitions SITUATIONS Culture Problem Subculture Recognition Demographics Social Status Information Reference Groups Search Family Marketing Activities SELF-CONCEPT Alternative Evaluation Desires and and Selection LIFESTYLE Needs INTERNAL INFLUENCES Outlet Selection Perception and Purchases Learning Memory Post-purchase Motives Processes Personality SITUATIONS Emotions Experiences and Acquisitions Attitudes

11. DECISION MAKING PROCESSES EXTERNAL INFLUENCES Experiences and Acquisitions SITUATIONS Culture Problem Subculture Recognition Demographics Social Status Information Reference Groups Search Family Marketing Activities SELF-CONCEPT Alternative Evaluation Desires and and Selection LIFESTYLE Needs INTERNAL INFLUENCES Outlet Selection Perception and Purchases Learning Memory Post-purchase Motives Processes Personality SITUATIONS Emotions Experiences and Acquisitions Attitudes

Transcript

Page 30: Consumer Behaviour

Munif Ahmad

Evaluation procedures Total product satisfaction Brand beliefs Degree of importance 6. External Stimuli Product attributes 5. Internal Stimuli It is affected by 2 (step:3) factors: Evaluation of alternatives Experiential Sources state Public Sources actual state and a desired Commercial Sources Difference between an Personal Sources (step:1) Need recognition Information search (step:2) 12.

Evaluation procedures Total product satisfaction Brand beliefs Degree of importance 6. External Stimuli Product attributes 5. Internal Stimuli It is affected by 2 (step:3) factors: Evaluation of alternatives Experiential Sources state Public Sources actual state and a desired Commercial Sources Difference between an Personal Sources (step:1) Need recognition Information search (step:2) 12.

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Page 31: Consumer Behaviour

Munif Ahmad

Product’s Perceived Performance Desire to buy the most Expectations of preferred brand Product’s Performance Consumer’s Purchase Intention Post purchase behavior (step:4) (step:5) Purchase decision 13.

Product’s Perceived Performance Desire to buy the most Expectations of preferred brand Product’s Performance Consumer’s Purchase Intention Post purchase behavior (step:4) (step:5) Purchase decision 13.

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