Consumer Behavior– you are what
you buy…!
• Think of a recent important purchase– briefly draw a flowchart of the steps you recall moving through from the awareness of need to post purchase
• What influenced you at each step?
>>Assuming the following: It Consists of all the individuals and households who buy or acquire goods
and services or personal consumption
Consumer Market
Consists of all the individuals and households who buy or acquire goods and services for personal consumption
Consumer Decision-Making Process
Cultural, Social, Individual and Psychological
Factors affect
all steps
Cultural, Social, Individual and Psychological
Factors affect
all steps
Need RecognitionNeed Recognition
Information SearchInformation Search
Evaluation of AlternativesEvaluation
of Alternatives
PurchasePurchase
Postpurchase Behavior
Postpurchase Behavior
• How do you know when to shop? What are the triggers that initiate an awareness & search?
• What are the internal & external sources of these triggers?
Factors Influencing Consumer Behavior
>> Personal>> Psychological>> Social
>> Cultural
Personal Factors Age Life-Cycle Stage Occupation Economic Circumstances Life Style
Psychological Factors“Wants”
Based on a want or desire to have something. Not a necessity
Psychological Factors
Motivation:Freud
○ Id ("pleasure principle”)○ Ego (“reality principle”)○ Super Ego (“Super-ego aims for perfection so
called Conscience to kill the mis-behavior/guilt ”)Maslow
○ Hierarchy of Needs (survival, comfort, psychological, self- esteem, self- actualization)
Psychological Factors
PerceptionThe process by which an individual selects,
organizes, and interprets inputs to create a meaningful picture of the world.○ Selective Exposure: people are only open to messages they
want to receive.○ Selective Distortion: shows how people change messages
to match their self-concept or twist them to match their perception of reality.
○ Selective Retention: shows that people remember only what they want to remember.
LearningChanges in an individual’s behavior arising form
experience
BeliefsDescriptive thoughts that a person holds about
something
Functional Factors
“Needs”Need over wants. Delivers to a real
“need” to have something.
Social Class Relatively homogenous, enduring divisions in a
society, hierarchically ordered with members sharing similar values, interests, and behaviors
•Upper Upper 1%•Lower Upper 2%•Upper Middle 12% American •Middle 32% Social•Working 38% Classes•Upper Lower 9%•Lower Lower 7%
Group Influences Brand Choice
Strong Weak
▪ Strong
▪ Weak
Public Luxuries•Golf Clubs•Snow Skis•Snail Boat
Private Luxuries•TV Video Games•Ice Makers•Trash Compactors
Public NecessitiesWrist Watch AutomobilesDress Clothes
Private Necessities
•Mattresses•Floor Lamps
Product Choice
Family Influence on Buying Behavior
Husband-Dominant Wife-Dominant Equal
Culture & Subcultures•Cultures
The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment
•SubculturesGroups of individuals who have similar value and behavior patterns within the group but differ from those in other groups.
Adoption Process
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Decision
6. Confirmation
Examples of Buying Motives:Psychological or Functional?
A senior wants to impress his date at the prom .
His primary motive is …?
Psychological
Examples of Buying Motives:Psychological or Functional?
A girl wants to remember her grandmother on her birthday.
Her primary motive is…?
Psychological
Examples of Buying Motives:Psychological or Functional?
A homemaker needs a new washing machine and has had good experiences with Sears.
Her primary motive is …?
Functional
Examples of Buying Motives:Psychological or Functional?
A teacher wants to buy a practical car to be used for family transportation.
Her/His primary motive is …?
Functional
Examples of Buying Motives:Psychological or Functional?
An overweight 40 year old man wants to loose weight so that he can reduce his blood pressure.
His primary motive is…?
Functional
Why is this important? To learn Consumer Behavior
Out of 11000 products launched by 77 companies, only 56% are present five years later – Kuczmaski & Associates
Only 8% of new product concepts offered by 112 leading companies reached the market. Out of this 83% failed to reach marketing objectives – Group EFO Ltd., Marketing News, Feb 1, 1993, Pg2
Dominant forces shaping Consumer Research
Factors that move an economy from Production-driven to Market-driven
Level of sophistication with which human behaviour is understood in psychology and other behavioural sciences
Overall Model of Consumer Behavior
Self-Concept
&
Learning
Decision Processes
Problem Recognition
Information Search
Alt Eval & Selection
Outlet select & Purchase
Postpurchase Processes
Internal InfluencesPerception
LearningMemory
MotivesPersonality
EmotionsAttitudes
External InfluencesCulture and SubcultureDemographicsSocial StatusReference Groups Family & Marketing Activities
The Types of Buying Decisions
ComplexBuying
Behavior
Variety-SeekingBehavior
Reducing BuyingBehavior
HabitualBuying
Behavior
HighInvolvement
Low Involvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
The Short falls:-Telemarketing Fraud The elderly are vulnerable to
fraud by telemarketers. A program to combat this fraud
is the Know Fraud Program. Many Organizations have to
fight this happening.
Negligent Consumer Behavior Negligent behavior is composed of
actions and inactions that may negatively affect the long-term quality of life of individuals and society.
This type of behavior can occur in two different contexts:Product MisuseConsumption of Hazardous Products
Many injuries result from misuse of a safe product - not from product defects.
Using a cell phone while driving is being outlawed in some areas.
“The most dangerous component is the consumer, and there’s no way to recall him.”
Corporate Social Responsibility
Firms have become viewed as responsible for more than generating profits.
“Corporate social responsibility” refers to the idea that firms have an obligation to help the larger society by offering some of their resources.
Some Pictures!
Movie time on Consumer Behavior! Followed by Feedbacks!!!
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