consumer behaviour(sec a ,sec b combined)
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IMT
Section B
Paras Arora IMTDCP084
Mahesh Dontul IMTDCP078
Himanshu Saxena IMTDCP075
Chandan Kumar Singh IMTDCP071
Consumer Behavior
Section A
Sanrang
Mahima Walial
Vishal Javeri
Ankita Varma
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IMT
Various stimuli
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IMTBehavioral Fundamentals = ƒ(P,E)
Personal interaction
Environment
+
Behavior
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IMTBuying a product is a result of many things sum total of these things is Consumer Behavior
Buying decision made
Market and environmental
stimulus
Marketing mix
Cultural
Education
Consumer characteristics
Social, Personal, cultural
Consumer Psychology
Motivation, Learning,
Memory, Perception
Involvement in Decision making
High involvement
Moderate involvement
Low involvement
Consumer Decision making
process
Five stage model
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IMTConsumer Behavior Simplified
Consumer is any one who can instill a stir in the market.
• Initiator
•Gatekeeper
• Influencer
•Decider
•Buyer
•User
•Disposer
Consumer
• Individual
•Social
•Psychological
•Pre Purchase
•During Purchase
•Post Purchase
Behavior
Consumer Behavior
Creating effective visuals
Behavior is outcome of a person’s interaction with the environment.
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IMT7 O’s model of Buying Behavior
7 O’s Details
Occupants Individuals, Shops, Small offices, Educational and Research, Clinics, Restaurants, Fast food joints etc
Objects High power efficiency, Durability, Low maintenance, Aesthetics, Affordability, Efficient service, Brand name
Objectives Comfort, luxury, Status symbol, Necessity, Maintenance of electronic equipment.
Organizations Individuals- Entire family, Shops, Clinics, Organizations-Technical consultants, Stake holders etc
OperationsMarket place cash, Credit cards, Cheques, Demand
Drafts, Electronic Fund transfer
OccasionClimatic conditions, Discount, New residential or commercial establishments, Replacements etc
OutletsRetail shops, Authorized dealers, Hypermarkets,
Specialized markets, Online buying.
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IMTProcess model of Buying Behavior
ENVIRONMENTAL FACTORS BUYER'S BLACK BOXBUYER'S RESPONSEMarketing
StimuliEnvironmental Stimuli
Buyer Characteristics
Buyer Psychology Decision Process
Product Price PlacePromotion
Economic Technological Political Cultural Demographic Natural
Cultural Social Personal
Motivation Perception Learning Memory
Problem recognition Information search Evaluation of alternative Purchase decision Post-purchase behaviour
Product choiceBrand choiceDealer choicePurchase timingPurchase amount
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IMTFactors Influencing Consumer Behavior
Culturala) Cultureb) Subculturec) Social Class
Personala) Ageb) Lifecycle
stagec) Genderd) Incomee) Educationf) Personalityg) Self concepth) Lifestyle
Sociala) Family b) Friendsc) Roled) Status
Physiologicala) Motivationb) Learningc) Perceptiond) Attitude
Buyer
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IMTRelationship Between Culture and Subculture
Example:-
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IMTCultural
In USA In Japan
In JapanIn Korea
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IMT
An ad showing many racial subcultures
Cultural
This ad for Vibe Vixen magazinetargets the African American urban subculture
Subculture
Subculture
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IMTCultural contd..
Social class
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IMTPersonal
AgeAge
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IMTPersonal Contd..
Gender
Self ConceptIncome
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IMTPersonal contd..
Life style
Education
AttitudePersonality
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IMTPsychological
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IMTConsumer Involvement in Decision Making
Habitual decisions Simple decisions Lengthy decisions
eg. Tea, toothbrush, eg. Skin creams ,TV eg. Cars, Property Washing powder. microwave oven .
HIGH INVOLVEMENT
LOW INVOLVEMENT
MODERATE INVOLVEMENT
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IMTTypes of Buying
Variatio
n in
consumer choice
phenomenon
Low involvement
Hedonic
Utilitarian / Instrumental
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IMTVariations in Consumer Choice Phenomena
Utilitarian / Instrumental
Low Involvement
Hedonic / Ego Expressive
Feel Do (Know)Trigger = Impulse, Need, Pleasure
Rationalizing evaluation of alternativesProcess: Choice Heuristic: “Buy What I
Like”Ultimate Choice: Satisfying Model
Price as secondary concern
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IMTVariations in Consumer Choice Phenomena
Utilitarian / Instrumental
Low Involvement
Hedonic / Ego Expressive
Know Feel Do Trigger = Gap (actual – Desired)
Active SearchRational use of information; Rational
evaluation of alternativesProcess: Extensive Problem Solving
routine responseChoice Heuristic: “Buy the Best”Ultimate Choice: Trade off among
competing alternativesPrice as trade-off variable
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IMTVariations in Consumer Choice Phenomena
Utilitarian / Instrumental
Low Involvement
Hedonic / Ego Expressive
Know Do FeelTrigger = Stock Depletion
Passive SearchLimited / No evaluation of alternatives;
Rational Use of informationExpectancy – Confirming
Process: Choice Heuristic: “Buy the Familiar” “Buy the Cheapest”
Ultimate Choice: Satisfying ModelPrice as deciding Factor
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IMTMarketing Considerations Across Core Motivational Conditions
Utilitarian / Instrumental
Low Involvement
Hedonic / Ego Expressive
Keys to Continuity: Product Performance; Provision of
InformationCentral Threat to continuity: Better Performing Alternative
Keys to Continuity: Clear, Relevant articulation of Brand
ImageCentral Threat to continuity: Change in self or brand image
Keys to Continuity: Saliency of Brand, ensured product availability
Central Threat to continuity: interrupts in purchase cycle
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IMTTypes of Buying Decision Behavior
HighInvolvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolvement
ComplexBuyingBehavior
Variety-SeekingBehavior
Dissonance-Reducing BuyingBehavior
HabitualBuyingBehavior
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IMTTypes of Buying behavior
Significant
differences
betweenbrands
Fewdifferenc
esbetween
brands
HighInvolvement
LowInvolvement
Complex buying Variety seeking
Habitual Buying Dissonance Reducing Behavior
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IMTExamples of Buying behavior-Complex
Cars Economy
1) I10
2) A star
3) Alto
4) Santro
5) Wagon R
6) Zen
7) RitZ
8) Spark
9) Beat
10) Swift
Digital Camera
1) Sony
2) Cannon
3) Nikon
4) Kodak
5) Samsung
Digital Camera
1) Sony
2) LG
3) Samsung
4) Sansui
5) AKAI
6) Panasonic
7) Hitachi
8) Haier
High Involvement and too many brands to choose from
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IMTExamples of Buying behavior-Variety Seeking
Low involvement and too many brands to choose from
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IMTExamples of Buying behavior-Habitual
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IMTExamples of Buying behavior-Dissonance reducing .
High involvement and a few brands to choose from
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IMT
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Consumer Decision-Making Process
Post purchase Behavior Post purchase Behavior
Purchase Purchase
Evaluation of Alternatives Evaluation of Alternatives
Information Search Information Search
Need Recognition Need Recognition
Cultural, Social, Individual and Psychological Factors affect all steps
Cultural, Social, Individual and Psychological Factors affect all steps
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IMT1) Need Recognition
Result of an imbalance
between actual and
desired states.
Result of an imbalance between actual and
desired states.
Internal StimuliandExternal Stimuli
Present Status
Preferred State
Marketing helps consumers recognize an imbalance between present status and preferred state. Go
Present State
Preferred state
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IMTNEED IDENTIFICATION-Examples
Fully automatic washing machines from Godrej
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IMT1) Need Recognition-Case of a John& purchase of laptop
I don’t have a laptop ,I must have one
My laptop seems to be out of date, I should
change.
There is a discount in International City this
is the time.
It is mandatory for all MBA students.
I want to play games and watch movies
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IMT2) Information Search
Internal Information Search
Recall information in memory
External Information search
Seek information in outside environment
Non-marketing controlled Marketing controlled
Marketing should identify consumer source of information and importance of each source.
A company must design its marketing mix to make prospects aware of and knowledgeable about its brand. Go
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IMTInformation Search
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•Family, friends, neighbors•Most effective 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
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IMT2) Search Information-Case of a John& purchase of laptop
Memory scan
Consult Friends& Family
Browse through the internet
May visit computer showrooms
Start paying more attention to Computer ads
in TV and Print media
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IMT
Evoked Set
Purchase!
Evaluation of Products
Analyze product attributes
Use cutoff criteria
Rank attributes by importance
3) Evaluation of Alternatives
Marketing should talk about the adage of their product and the proposition that they are offering more than the competitor. Go
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IMTCoca Cola- Compagain for Achieving TOMA
Coca-Cola didn't have many issues selling Coke during the summer months. To ensure that coke is selected as an alternative in the wintertime, come up with a campaign. "Thirst Knows No Season"
“Thanda matlab Coca Cola”
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IMTJUST DO IT by Nike to carve niche in customer minds
"Just Do It" campaign, purportedly coined during a meeting of executives between WK and Nike ("You Nike guys, you just do it.").
Nike tied their brand to smart, humorous and cool advertising to evaluate
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IMT Think Small –By Volkswagen talked about their uniqueness
Volkswagen had plenty of success with the Beetle in Europe, but wanted to bring it to the U.S.
The DDB team knew they had to do something different to win over the jaded consumers.
the impact of its ad campaigns revolutionized advertising forever,
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IMTEvaluate the alternative (Introduce the X Factor)
• Product Feature• Price• Promotion• Service• Distribution
Marketers should introduce the X Factor to help consumers evaluate the alternatives. This X Factor can be in varied forms which can be:
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IMTPRICE
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IMTPRODUCT
Thinner cans appealed the youth- Style
X Factor -Glycerine
It’s a liquid soap
All Out with Extra MMR
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IMTSERVICES
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IMTPERFORMANCE
DABBAWALAS IN MUMBAI
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IMT3) Evaluation of Alternatives-Case of a John& purchase of laptop
Expectancy value model
Consumer assigns different values for different attributes of a product
Conjunctive model
Consumer assigns a minimum cut-off value to each attribute.
Disjunctive model
Assign maximum weight age to one particular model
Attributes
Laptops Size Price Warranty Configuration
HP 8 9 6 9
DELL 7 7 7 7
SONY 10 4 3 2
Acer 5 3 8 5
Weight age 0.4 0.3 0.2 0.1
Minimum cut off
6 6 6 6
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IMTDecision Making Sets
Total set Awareness set
Consideration set
Choice set Decision
APPLEDELLHPCOMPAQSONYACERTOSHIBABENQMSN
HPDELLSONYACERTOSHIBAAPPLE
HPDELLSONYACER
HPDELL
HP
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IMT
Purchase IntentionDesire to buy the most preferred brand
Purchase Decision
Unexpected
Situational Factors
Attitudes of Others
Purchase Decision
Marketing should reduce the time gap between the purchase intent of consumer and the actual buying. GO
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IMTPurchase Decision-case of John & laptop
Unexpected situational Behavior• John saw an ad that i7 second generation
processor is getting launched soon and he postponed his decision to buy laptop for time being
Attitude of others• John’s Father told to buy Dell as Dell’s service
is better .John was forced to buy Dell.
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IMT5) Post purchase Behavior
Can minimize through:Effective CommunicationFollow-upGuaranteesWarranties. Go
Cognitive Dissonance
??Did I make a good decision?
Did I buy the right product?
Did I get a good value?
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IMTPurchase Decision-case of John & laptop
Satisfied John John will tell good things about his laptop to his friends and relatives and this may influence them to buy the same laptop as John.John will also be attracted towards other offering the same company
Dissatisfied John Spread bad word of mouth May file a legal caseGo to media
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IMT
Thanks For your time and
consideration