marketing management

© SHH Kazmi, 2007

Excel BooksMarketing Management Text and Cases, S H H Kazmi8-1

Consumer Behaviour - Personal and OrganisationalMarketing Management Text and Cases

Excel Books8-1

Consumer Behaviour - Personal and Organisational

8Chapter

© SHH Kazmi, 2007



“Consumer behaviour refers to the mental and emotional processes and the

observable behaviour of consumers during searching, purchasing, and post

consumption of a product or service.”

Satish K. Batra and S. H. H. Kazmi, ‘Consumer Behaviour’, Excel Books, 2004.

© SHH Kazmi, 2007



Various Factors Influencing Consumer Behaviour

Social Factors

Culture and Subculture Roles and Family Social Class Reference Groups

Psychological Factors

Motivation Perception Learning Attitudes Personality

Personal Factors

Demographic Factors Lifestyle Situational factors Involvement Level

ProblemRecognition

Information Search

Alternatives’ Evaluation

Purchase Action

Postpurchase Actions

Consumer Decision-Making Process

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Social FactorsSocial factors refer to forces that other people exert and which affect consumers’ purchase behaviour. These include culture and subculture, roles and family, social class, and reference groups.

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Culture and SubcultureCulture influences consumers through the norms and values established by

the society in which they live.

Subcultures exist within a given dominant culture.

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Roles and Family

Joint Decision-Making Process

Initiator

(Need recognition)

Gatekeeper

(Information search)

Influencer

(Evaluation of alternatives)

Decision- maker

(Decision to buy)

Buyer

(Purchase)

User

(Consumption) & evaluation

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Social Class‘Social class defines the ranking of people in a society into a hierarchy of distinct

status classes; upper, middle and lower, so that the members of each class

have relatively the same status based on their power and prestige.’

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Reference GroupsA reference group refers to a group of people with whom an individual

identifies herself/himself and the extent to which that person assumes many

values, attitudes, or behaviours of group members.

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Psychological FactorsPsychological factors are internal to an individual and generate forces within that

influence her/his purchase behaviour. The major forces include motives,

perception, learning, attitude, and personality.

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MotivationThis refers to driving forces within an individual produced by a state of tension

caused by unfulfilled needs, wants, and desires.

Motivation Process

Learning

Unfulfilled

Needs, Wants and Desires

Felt

Tension

Drive Appropriate

Behaviour

Goal or Need

Fulfilment

Cognitive Processes

Tension Reduction

© SHH Kazmi, 2007



Motivation ResearchSome of the methods used to probe the subconscious mind include:

In-depth interviews

Projective techniques

Association tests

Focus group

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PerceptionPerception is the process by which an individual selects, organises, and

interprets stimuli into a meaningful and coherent picture of the world.

Perception includes three distinct processes:

Sensation

Information selection

Interpreting the information

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LearningLearning is viewed as a relatively permanent change in behaviour occurring as a

result information or experience, both direct and indirect.

There are two basic approaches to learning:

(1) behavioural approach, and

(2) cognitive learning approach.

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Attitudes“An attitude is an enduring organisation of motivational, emotional, perceptual,

and cognitive processes with respect to some aspect of our environment.”

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PersonalityPersonality refers to a dynamic concept that describes the growth and

development of an individual’s whole psychological system, which looks at some

aggregate whole that is greater than the sum of the parts.

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Marketers consider four main theories of personality as more relevant to their

purpose and include

(1) Self-concept theory: Self-concept describes the totality of an individual’s

thoughts and feelings having reference to herself/himself as an attitude object.

(2) Psychoanalytic theory: Personality is the result of childhood conflicts

between three fundamental components of personality: Id, Ego, and

Superego.

(3) Social-cultural theory: Social and cultural variables are more important than

biological drives in the development of individual personality.

(4) Trait theory: Personality is composed of a set of traits that are relatively

stable and describe a general pattern of behaviour.

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Personal FactorsPersonal factors include those aspects that are unique to a person and influence

purchase behaviour. These include demographic factors, lifestyle, and situational

factors.

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Demographic FactorsDemographic factors include individual customers’ age, gender, education,

occupation, income, marital status, family size, etc. These characteristics affect

the purchase and consumption behaviour of persons.

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LifestyleLifestyle is an indicator of how people live and express themselves on the basis

of their activities, interests, and opinions.

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Situational FactorsAll those factors particular to a time and place that do not follow from a

knowledge of personal (intra-individual) and stimulus (choice alternative)

attributes and that have a demonstrable and systematic effect on current

behaviour.

© SHH Kazmi, 2007



Involvement LevelConsumer involvement is considered as an important variable that can help

explain how consumers process the information and how this information might

influence their purchase or consumption related behaviour.

There are several broad types of involvement related to the product, the

message, or the perceiver.

Product involvement

Advertising involvement

Purchase situation involvement

© SHH Kazmi, 2007



Consumer Decision Processes

There are various types of consumer-decision processes.

Nominal decision-making

Extended decision-making

Limited decision-making

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Involvement Level and Types of Decision- Making

Level of involvement

High

Low

Nominal Limited Extended

Types of Decision-making

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Consumer Decision-making ProcessConsumer decision-making generally involves five stages:

Problem or need recognition,

information search,

alternatives evaluation,

purchase, and

post-purchase evaluation.

© SHH Kazmi, 2007



Stages in Consumer Decision Process

Need Recognition

Alternatives’ Evaluation

Post-purchase action

Nisha is fed up with her now obsolete computer with CRT monitor. She needs a 15” laptopfor easy mobility and comfort.

Nisha surfs the Internet to learn about laptops.

Nisha considers several brands in terms of reputation, features’ service support, and price.

Nisha chooses one model of IBM laptop. It has features that appeal to her, dealer gives her Rs. 800 discount, and she buys it.

Dissonance and evaluation.

Information Search

Store Selection and

Purchase

© SHH Kazmi, 2007



Organisational Consumer“The decision-making process by which organisations establish the need for

purchased products and services and identify, evaluate and choose among

alternative brands and suppliers.”

Organisational buyer characteristics differ from final consumers in several

important aspects.

Group-based Decision-making

Technical Knowledge

Rational Motives Dominate

© SHH Kazmi, 2007



Decision Approach and Purchase PatternsOrganisational purchases and buying patterns differ from final consumers in

many ways.

Formality

Negotiations

Less Frequent Purchases

Reciprocity

Service

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Organisational Buyer Decision ProcessThe size of a decision-making unit (DMU) may vary according to how new,

complex and important the purchase decision is; and how centralised,

structured and specialised the organisation is.

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Problem RecognitionThe first stage of organisational buying decision involves recognising a need

or problem.

Product SpecificationParticipants involved in the decision-making process assess the problem or

need and determine what is required to resolve or satisfy it.

Product and Vendor SearchThe organisation tries searching for possible products to solve the problem,

and also to locate firms who may qualify to be suitable suppliers for those

products.

© SHH Kazmi, 2007



Product and Vendor EvaluationThe buying centre makes an evaluation to determine which products meet

the laid down specifications. Various vendors are also evaluated on criteria

such as price, delivery, service, warranty, credit terms, etc.

© SHH Kazmi, 2007



Information gathered during evaluation stage is used to select finally the

product to be purchased, as well as the vendor from which the purchase will

be made.

Product and Vendor Selection

© SHH Kazmi, 2007



Performance EvaluationThe last stage in purchase decision process involves an evaluation of the product as well as vendor performance.

marketing management - consumer behaviour

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