unit – i consumer behaviour

7/21/2019 UNIT – I Consumer Behaviour

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CONSUMER BEHAVIOR [NMBA NK 01]UNIT – I

Overview of Consuer Be!"viour

M"#"n$ %"

Assis'"n' %r

NIET( )re"'e



University Syllabus

• Un&ers'"n&in* Consuer Be!"vior+ Me"nin* "

Con,e-' of Consuer "n& Cus'oer(• Consuer .e"rnin*( /ieren' Mo&es Consuer Be!"vior(

• Consuer /e,ision "$in* -ro,ess+Con,e-' Consuer /e,ision2 .eves of Consuer /e,isi

M"$in*2 Consuer /e,ision M"$in* Mo&e(• C!"n*in* In&i"n Consuer Be!"vior+/rivers C!"n*e2 C!"n*in* Consuer Tren&s2

• Rur" Consuer Be!"vior2 New Consu-'i%"''erns(

•

Or*"ni3"'ion" Bu#in* Be!"viourConsuer Be!"viour 4 Cus'oer .o#"'# B#5M"#"n$ %"n&e#



Consumer Behaviour

T!e 7e!"viour '!"' ,onsuers &is-se"r,!in* for( -ur,!"sin*( ev"u"'in*( "n& &is-osin* of -ro&u,servi,es '!"' '!e# e8-e,' wi s"'isf#

nee&s9

Consuer Be!"viour 4 Cus'oer .o#"'# B#5M"#"n$ %"n&e#



Personal Consumer

T!e in&ivi&u" w!o 7u#s *oo&s "n& sefor !is or !er own use( for !ouse!ofor '!e use of " f"i# e7er( orfrien&9




Development of theMarketing Concept

%ro&u,'ionCon,e-'

Sein* Con,e-'

%ro&u,' Con,e-'

M"r$e'in*Con,e-'




The Production Concept

•

Assues '!"' ,onsuers "rein'eres'e& -ri"ri# in -ro&u,'"v"i"7ii'# "' ow -ri,es

•M"r$e'in* o7=e,'ives5• C!e"-( e>,ien' -ro&u,'ion• In'ensive &is'ri7u'ion• M"r$e' e8-"nsion




The Product Concept

•

Assues '!"' ,onsuers wi 7u# '!e -ro&u,' '!"' o'!e '!e !i*!es' @u"i'#( '!e 7es' -erfor"n,e( "n&os' fe"'ures

• M"r$e'in* o7=e,'ives5

–u"i'# i-roveen' –A&&i'ion of fe"'ures

• Ten&en,# 'ow"r& M"r$e'in* M#o-i"




The Selling Concept

• Assues '!"' ,onsuers "re uni$e# 'o

7u# " -ro&u,' uness '!e# "re "**ressive-ersu"&e& 'o &o so

• M"r$e'in* o7=e,'ives5

•

Se( se( se

• .",$ of ,on,ern for ,us'oer nee&s "n&s"'isf",'ion




Implementing the MarketingConcept

• Consuer Rese"r,!• Se*en'"'ion

• T"r*e'in*

• %osi'ionin*




Segmentation Targeting andPositioning

•Segmentation! -ro,ess of &ivi&in* '!e

"r$e' in'o su7se's of ,onsuers wi'! ,oonnee&s or ,!"r",'eris'i,s

•Targeting! see,'in* one ore ore of '!e

se*en's 'o -ursue

•Positioning! &eveo-in* " &is'in,'

i"*e for '!e -ro&u,' in '!e in& of '!e,onsuer




Su,,essfu %osi'ionin*

•

Couni,"'in* '!e 7eneD's of '!e -ro&u,'( r"'!i's fe"'ures

• Couni,"'in* " Uni@ue Sein* %ro-osi'ion for -ro&u,'




The Marketing Mi"

•Product•Price

•Place

•Promotion




The Societal MarketingConcept

A ,o-"nies -ros-er w!en so,ie'# -ros-

Co-"nies( "s we "s in&ivi&u"s( wou& 77e''er o if so,i" res-onsi7ii'# w"s "nin'e*r" ,o-onen' of ever# "r$e'in*&e,ision9

Re@uires " "r$e'ers "&!ere 'o-rin,i-es of so,i" res-onsi7ii'#9




Model of Consumer Behaviorby Philip Kotler

Marketing Stimuli

Product

Price

Place

Promotion

#therStimuli

$conomic

Technological

Political

Cultural

Buyer%sCharacteristic

Cultural

Social

Personal

Psychological

Buyer%sDecision Process

Problem recognition

Information search

$valuation of alternatives

Purchase decision

Post purchase behavior

BuyeDecis

Product

Brand c

Dealer c

Purchase

Purchase




Major Factors Influencing BuyerBehavior

1. Cultural Factors

2. Social Factors

3. Personal Factors

4. Psychological Factors




Cultural Factors

1. Culture

2. Sub Culture

3. Social Class




Social Factors

1. Reference Groups

2. Family

3. Roles and Status




Personal Factors

1. ge and stage in the !ife Cycle2. "ccupation and #conomic Circumstance

3. !ifestyle

4. Personality and Self Concept




Psychological Factors

1. $oti%ation

2. Perception

3. !earning

4. &eliefs and ttitudes




Model of Consumer Behaviorby Henry ssael

The IndividualConsumer

Consumer

&esponse

Consumer

Decision Making

$nvironmentalIn'uences

(eedback

To Consumer

(eedback to $nvironmentDevelopment of Marketing

StrategiesConsuer Be!"viour 4 Cus'oer .o#"'# B#5M"#"n$ %"n&e#

Th I di id l C



The Individual Consume

S'iui T!e

ConsuerRes-on

Consumer Thought

Perceptions)ttitudesBene*ts

Consumer CharacteristicDemographicsPersonality+ife Cycle

InformationProcessing

DecisionMaking

(eedback




!he Individual Consumer

1. Consumer 'hought (ariablesa. Perceptions

b. ttitudes

c. &enefits

2. Consumer Characteristic

a. )emographicsb. Personality

c. !ifestyle


$nvironmental



$nvironmentalIn'uences

S'iui

Cu'ure F",e 'o F",e)rou-s

Si'u"'ion"/e'erin"

T!eConsuer

Res-onse

Cultural ,aluesSubcultural In'uencesCross Cultural In'uences

&eference -roups(amily


" i t l I fl



"nvironmental Influences

1. Culturea. Cultural (alues

b. Sub Culturalc. Cross Cultural

2. Face to Face Groupsa. References Groups

b. Family

3. Situational )eterminants




Major Factors Influencing BuyerBehavior by Schiffman # Kanu$

1. 'he Consumer as an *ndi%idual

2. Consumer in their Social and Cultural Settings


h C di id l



!he Consumer as an Individual

1. Consumer +eed and $oti%ation2. Personality , Consumer Perception

3. !earning and Consumer *n%ol%ement

4. 'he Consumer ttitudes

-. Communication and Persuasion




Consumer in their Social and CulturSettings

1. Group )ynamics and cultural Settings2. Family

3. Social Class

4. Culture

-. Sub Cultural. Cross Cultural




Major Factors Influencing BuyerBehavior Ho%ard # Seth

1. #/ogenous (ariables

2. 0ypothetical Construct




Digital &evolution in the Marketplace

Aows ,us'oi3"'ion of -ro&u,'s( servi,

"n& -roo'ion" ess"*es i$e never 7ef

En!"n,es re"'ions!i-s wi'! ,us'oore ee,'ive# "n& e>,ien'#

H"s in,re"se& '!e -ower of ,us'oers "*iven '!e ",,ess 'o ore infor"'ion


G!# s'u&# ,onsuer



G!# s'u&# ,onsuer7e!"viour

•Un&ers'"n&in* ,onsuer 7e!"viour

wi !e- #ou 7e,oe 7e''er"r$e'ers "s i' is '!e foun&"'ion for

Se*en'in* "r$e's

%osi'ionin* -ro&u,'s

/eveo-in* "n "--ro-ri"'e "r$e'in*

Consuer Be!"viour 4 Cus'oer .o#"'# B#5

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.hy study consumer



.hy study consumerbehaviour/•Knowe&*e of ,onsuer 7e!"viour is

essen'i" for non+-roD' or*"ni3"'ions

–Non -roD's !"ve &ieren' ,us'oers 'o -e

–/onors( users( voun'eers( *ener" -u7i,(*overnen'

–Be''er un&ers'"n&in* of our ,onsu-'ion7e!"viour9999999


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+e els of Cons mer Decisio



+evels of Consumer DecisioMaking

$"tensiveProblemSolving

+imited ProblemSolving

&outine &esponseBehaviour


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( t Th t )0 t th T f



(actors That )0ect the Type ofDecision Making Process Used

• I-or'"n,e of '!e &e,ision

•E8'en' of -revious e8-erien,e

•E8is'en,e of we+es'"7is!e& &e,ision ,

•Aoun' of infor"'ion "' !"n& "7ou' e"'ern"'ive

• T!e nu7er of "'ern"'ives "v"i"7e

•Mo&e of ,onsu-'ion 7ein* foowe&


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C D i i M ki



Consumer Decision Making 1 Process

• Nee& Re,o*ni'ion

• %re+-ur,!"se Se"r,!

• Ev"u"'ion of A'ern"'ives


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2eed or Problem &ecognit

•

T!e re"i3"'ion '!"''!ere is " &ieren,e7e'ween ",'u" "n&&esire& s'"'es

• T!e !i*!er '!e *"-( '!es'ron*er '!e nee& or7i**er '!e -ro7eJ


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Types of Problems

• A,'ive Versus In",'ive-ro7es

• A,'ive5 '!ose #ou "re "w"reof

• In",'ive5 '!ose '!"' #ou "reno' #e' "w"re of 7u' e8is'J

• T!ose '!"' re@uireie&i"'e sou'ions "n&'!ose '!"' &o no' re@uireie&i"'e sou'ions


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Problem &ecognition and



Problem &ecognition andMarketing Strategy

• I&en'if# e8is'in* ,onsuer -ro7es "n& Dn& sofor '!ese

• .ower '!e ",'u" s'"'e

• In,re"se '!e &esire& s'"'e

• In,re"se '!e i-or'"n,e of '!e *"- 7e'ween ",'

&esire& s'"'es• Conver' in",'ive -ro7es 'o ",'ive -ro7es

• Conver' -ro7es in'o ones re@uirin* "n ie&sou'ion


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Pre3Purchase Search

• T#-es of Infor"'ionSour,es

• T#-es of Infor"'ionSou*!'

• F",'ors Ae,'in* E8'en' ofInfor"'ion Se"r,!


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Types of Information Sourc

P$&S#2)+

(riends2eighbors&elativesCo34orkersSalespeople

Tele Calling

IMPERSO

Newspape

Magazine

Consumer

Direct-ma

Inormatio

a!"ertiseInternal w


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Types of Information Soug

• Br"n&s or "'ern"'ives"v"i"7e

• Ev"u"'ive ,ri'eri" 'o 7euse&

• )ener"#( -ro&u,' fe"'ures

•

R"'in*s of 7r"n&s onev"u"'ive ,ri'eri"


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(actors that Increase the +evel o



(actors that Increase the +evel oPre3purchase Search

• Product (actors! 5igher search

4hen• It is a long3lasting or infre6uentlyused product

• There are fre6uent changes inproduct styling

• +arge volume is purchased• The price is high

• There are many alternative brands

• There is much variation in features


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•Situational (actors! 5igher searc

4hen!• $"perience is lo4er

• Previous e"perience 4asunsatisfactory

•

Social )cceptability! 5igher searc4hen!• Purchase is a gift

• Product is socially visible in use


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•,alue3&elated (actors! 5ighersearch 4hen!• Purchase is discretionary

• )ll alternatives have both positivand negative 6ualities

• 2o agreement among users e"ist

• Con'icting information is availab

• #ther considerations e"ist


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+evel of Pre3purchase



+evel of Pre3purchaseSearch

•Consumer (actors! 5igher search

4hen!• Consumers are 4ell3educated havehigher income levels and are younge

• Consumers are lo4 in dogmatism an

risk perception• +evel of involvement is high

• Shopping is seen as an en7oyableactivity


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$valuation of )lternatives 1 Ty



$valuation of )lternatives 1 Tyof Consumer Choice Process

•

Ae,'ive ,!oi,es• More !ois'i,2 "n over" ev"u"'ion

• 7"se& on !ow one fees "7ou' " -ur,!"s

•A''ri7u'e+7"se& ,!oi,es

• H"ve -re+&e'erine& ev"u"'ive ,ri'eri"• M"# re@uire 7o'! e8'ern" "n& in'ern" s

• Co-i,"'e& &e,ision rues "# 7e use&


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2ature of $valuative Crite

•

C"n 7e '"n*i7e or in'"n*i7e• In,u&e surro*"'e in&i,"'ors

• A''ri7u'es '!"' "re use& "s in&i,"'ors of"no'!er "''ri7u'e

•

Are of'en r"n$e& in or&er of i-or'"n


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Consumer Decision &ule




•

%ro,e&ures use& 7# ,onsuers 'o f",7r"n& or o'!er ,onsu-'ion+re"'e& ,


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C D i i & l




•

Compensatory• Br"n&s ev"u"'e& in 'ers of e",! r,ri'eri" "n& '!e 7es' 7r"n& or one w!i*!es' s,oreJ is ,!osen

•2on3compensatory• %osi'ive ev"u"'ions &o no' ,o-ensne*"'ive ev"u"'ions


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2on3Compensatory Consum



2on Compensatory ConsumDecision &ules

•

Con7unctive Decision &ule•%ro&u,' "''ri7u'es "re i&en'iDe&•" ini"# ",,e-'"7e ,u'o -es'"7is!e& for e",! "''ri7u'e

•7r"n&s '!"' f" 7eow '!e ,u'oon "n# one "''ri7u'e "re eiifro fur'!er ,onsi&er"'ion9


M"#"n$ %"n&e#

2on3Compensatory Consum



2on Compensatory ConsumDecision &ules

•

Dis7unctive Decision &ule•,onsuers i&en'if# -ro&u,' "''ri•es'"7is! " ini"# ",,e-,u'o -oin' for e",! "''ri7u'e

• ",,e-' '!e 7r"n& '!"' eee8,ee&s '!e ,u'o for any

"''ri7u'e


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2on3Compensatory Consumer Decision &u



2on3Compensatory Consumer Decision &u

•+e"icographic Decision &ule!•%ro&u,' "''ri7u'es "re i&en'iDe&

• %ro&u,' "''ri7u'es "re r"n$e& in 'ers of i-• 7r"n&s "re ,o-"re& in 'ers of '!e "''ri7u'e,onsi&ere& os' i-or'"n'

• Br"n& '!"' s,ores !i*!es' on '!e Drs' "''ri7u'

,!osen• If '!ere is " 'ie( '!e s,ores on '!e ne8' "''ri7u,onsi&ere&


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I i )lt ti $ l t



Issues in )lternative $valuat

• .ifes'#es "s " Consuer /e,ision S'r"'e*

• In,o-e'e Infor"'ion

• Non+,o-"r"7e A'ern"'ives

• Series of /e,isions

• Consu-'ion Vision• Men'" -i,'ure of '!e ,onse@uen,es of usin* "-"r'i,u"r -ro&u,'


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Coping 4ith Missing Informat



Coping 4ith Missing Informat

•

/e"# &e,ision un'i issin* infor"'iois o7'"ine&

• I*nore issin* infor"'ion "n& use"v"i"7e infor"'ion

•C!"n*e '!e &e,ision s'r"'e*# 'o one '!7e''er ",,oo&"'es for '!e issin*infor"'ion

• Infer '!e issin* infor"'ionConsuer Be!"viour 4 Cus'oer .o#"'# B#5

M"#"n$ %"n&e#

Information Search and



Marketing Strategy• )e' -ro&u,'s in'o ,onsuers evo$e& se'

• .ii' infor"'ion se"r,! if #our 7r"n& is '!-referre& 7r"n&

• In,re"se infor"'ion se"r,! if #our "'ern"no' '!e -referre& 7r"n&

• Use -oin'+of+-ur,!"se "&ver'isin* ee,'ive


)lternative $valuation an



Marketing Strategy• I&en'if# &e,ision rue use& 7# '"r*e' "r$euse sui'"7e -roo'ion" ess"*es

• InLuen,e '!e ,!oi,e of ev"u"'ive ,ri'eri"

• InLuen,e '!e r"'in* of #our -ro&u,' onev"u"'ive ,ri'eri" use&

• Use surro*"'e in&i,"'ors ee,'ive#

• Use ,onsu-'ion vision


The #rgani8ational Buying



g y gProcess

•M"r$e' S'ru,'ure "n& /e"n&

•Or*"ni3"'ion" &e"n& is

demand2 i' ,oes u'i"'e# f&e"n& for ,onsuer *oo&s or serv


The #rgani8ational Buying Pro



The #rgani8ational Buying Pro

•

Or*"ni3"'ion" 7u#in* &e,isions 'enore ,o-e8 '!"n ,onsuer &e,isio

• T!e organi8ational buying proces

'o 7e ore for" '!"n '!e ,o-ro,ess


Participants in the #rgani8atio



p gBuying Process

•A buying center is " '!ose in&ivi&"n& *rou-s w!o -"r'i,i-"'e in -ur,!"sin* &e,ision+"$in* -ro,w!o s!"re ,oon *o"s "n& '!e r

"risin* fro '!e &e,isions


Participants in the #rgani8ational BProcess



Une8-e,'e&Si'u"'ion"

F",'ors

Une8-e,'e&Si'u"'ion"

F",'ors

A ' ' i ' u & e s

o f

O ' ! e r s

A ' ' i ' u & e s

o f

O ' ! e r s

Process

E'!i,"/e,ision+

M"$in* Uni'of "

Bu#in*Or*"ni3"'ion is C"e&

I'sBu#in*Cen'er9

UsersInLuen,ers

Bu#ers)"'e$ee-ers

Roes In,u&e

/e,i&er

A--rovers


Ma7or In'uences on#rgani8ational Buyers



#rgani8ational Buyers


#rgani8ational Buying Decisi



Problem

&ecognition

-eneral

2eedDescription

Product

Speci*cation

SupplierSelection

#rder3

&outineSpeci*ca

tion

Performance

&evie4


Problem &ecognition



Problem &ecognition

• Problem recognition is w!en soeone in " ,o

re,o*ni3es " -ro7e or nee& '!"' ,"n 7e e' 7",@uirin* " *oo& or " servi,e

• %ro7e re,o*ni'ion ,"n o,,ur 7e,"use of in'erne8'ern" s'iui


-eneral 2eed Description



-eneral 2eed Description

• -eneral need &es,ri-'ion is w!en " ,o-"n#

&es,ri7es '!e *ener" ,!"r",'eris'i,s "n& @u"n'inee&e& i'e

• G!"' "re soe i'es '!"' wou& 7e in,u&e& in "*ener" nee&s &es,ri-'ion for " 'r"inin* ee'in*


Product Speci*cation



Product Speci*cation

• Product speci*cation is w!en '!e 7u#in* or*"

&e,i&es on "n& s-e,iDes '!e 7es' 'e,!ni," -ro&,!"r",'eris'i,s for " nee&e& i'e

• G!"' "re soe i'es '!"' wou& 7e in,u&e& in "-ro&u,' s-e,iD,"'ion &es,ri-'ion for " 'r"inin*


Supplier Search



Supplier Search

•

Supplier search is w!en " 7u#er 'ries 'o Dn& '!ven&or

• G!"' "re '!e 7es' w"#s for 7u#ers 'o i&en'if# su


Proposal Solution



Proposal Solution

• %ro-os" sou'ion is w!en @u"iDe& su--iers "re

'o su7i' -ro-os"s

• G!"' "re soe i-or'"n' 'oos for wri'in* "n&rese"r,!in* " -ro-os"


Supplier Selection



Supplier Selection

• Supplier selection is w!en " 7u#er re,eives -r

"n& see,'s " su--ier or su--iers

• G!"' "re '!e si8 "''ri7u'es '!"' ee'in* -"nner,onsi&er w!en see,'in* " o,"'ion


#rder3&outine Speci*cation



#rder &outine Speci*cation

• #rder3routine speci*cation w!en " 7u#er wri

Dn" or&er wi'! '!e ,!osen su--iersJ( is'in* '!e'e,!ni," s-e,iD,"'ions( @u"n'i'# nee&e&( e8-e,of &eiver#( re'urn -oi,ies( w"rr"n'ies( "n& so on


Performance &evie4



Performance &evie4

• Performance revie4 is w!en " 7u#er r"'es i's

s"'isf",'ion wi'! su--iers( &e,i&in* w!e'!er 'o,on'inue( o&if#( or &ro- '!e re"'ions!i-


Changing Indian Consumers



• In&i" is one of '!ef"s'es' *rowin*"r*e e,onoiesin '!e wor&9

•Over '!e "s' 1<

#e"rs In&i" !"s,!"n*e u,!f"s'er '!"n "n#9


T!e In&i"n ,onsuer is r"-i&#Tr"nsforin*



Tr"nsforin*• %"r"&i* s!if' in "os' " '!e "s-e,' of ife

Ou'oo$ Fro Tr"&i'ion" 'o Mo&ern


E8-e,'e& U'ii'# fro%ro&u,'sServi,es

F F i



%ro&u,'sServi,esFro Fun,'ion" 'o.ifes'#e


E"'in* H"7i's

Fro Tr"&i'ion" Me"s 'o In&i"ni3e& PM,/on"&



Fro Tr"&i'ion" Me"s 'o In&i"ni3e& M,/on"&


,alueI%d ratherhave moretime than

money 1 ?@=

I Shopclosest to

myoAcehome 3



9: (or someamount ofgroceryshopping

consumers arespending ;<=less time

;: (or someamount ofeating outspendsconsumers arespending about><= less time

money 1 ?@=

I like toshop butnot have

time 1 ?@=

Saving timeis more

importantthan saving

fe4 &upees 1>9=

>=


Av"i"7ii'# of ow in'eres' r"'e Dn"n,s,!ee9



s,!ee9

T!e newer *ener"'ion is wiin* 'o -"

!i*!er if '!e# '!in$ '!"' '!e# "re *e''!i*!er v"ue9

U-*r"&e is -"r' of ife5Aver"*e ife of Mo7ie5 1 e"r

Aver"*e ife of TV5 : e"rsAver"*e ife of C"rs5 <+ e"rs

Soon !oes wi 7e ,!"n*e& fre@uen'#

Ce"r# &ur"7ii'# is no on*er '!e oConsuer Be!"viour 4 Cus'oer .o#"'# B#5M"#"n$ %"n&e#

Bu#in* " TV Se'+ F",'or

$arly Mid



$arly2ineties

)vailability Price Picture

uality

Mid2ineties

$Acacy ofan e"changescheme

2o ofchannels acompanyo0ered

Today

Sophistican

5igh3end(lat T,

Smart T,Consuer Be!"viour 4 Cus'oer .o#"'# B#5

M"#"n$ %"n&e#

Many Drivers



•Demographics

•Increased -lobal $"posure

•Increased DiscretionaryIncomes across 4ider spectof population across 4idergeography:


unit – i consumer behaviour

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