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Consumer Behavior
Know the consumer
• Why do the consumers buy your product / Service?
• Why do these consumer buy your brand / service not the competitor's brand ?
• How do consumer perceive brand of your product / service, which fulfills their need. ?
• Are they satisfy or dissatisfy with your product / Service ?
• How are these feelings reflected in their buying behavior ?
Nature of Consumer Behavior
• Consumer Behavior can be Defines as….
“ The Decision process and physical activity engaged in evaluating, accruing, using or disposing of goods and services”
Nature of Consumer Behavior
• The Definition raises a few questions in our mind……….
– What or who are our consumers.– What is the decision process they are engaged
in.
Who is a Consumer
Approach 1:- Anyone who is Buying any good or services where money transition is involved
Approach 2:- Anyone actually purchase a product or services from a particular company or shop.
Consumer v/s Costumer
• There is a situations where distinction between consumer and costumer occurs
– When customer is not the actual user of the product / service or is the only one of the many user.
The Definition
“ Any person who is physically engaged in an activity of evaluation, accruing, using or disposing of goods and services”
The Rules of Consumer Behavior
• Initiator :- Any person who determines that some need or want is not being met.
• Influencer :- The person who intentionally / unintentionally influence the decision to buy or the actual purchase and or use of product or services.
• Buyer :- the person who actually makes the purchase.
• User :- The person who actually uses or consume the product o service.
Buying Process (Consumer Behavior)
Internal Environment
• Motivation and Involvement
• Attitude
• Personality and Self-Concept
• Learning and Memory
• Information Processing
• Motivation and Involvement– Type of motivation
1. Physiological2. Psychological
• Attitudes– Our learned predisposition towardsobjects, people and events
• Personality and Self-concept– Personality is the sum total of the unique
individual characteristics that make each one of us what we are.
Learning and Memory
• Information Processing
External Environment
• Cultural Influence• Sub-Cultural influence• Social Class Influence• Social Group Influence• Family Influence• Personal Influence• Other Influence
Cultural Influence“The set of basic values, perception, wants and behavior of society from
family and other important institution”
Sub-Cultural influence“A group of people with shared value system based on common life
experience and situation”
Social Class Influence“Relatively permanent and ordered division in a society whose
members share similar value, interest and behavior”
Social Group Influence“Two or more people who interact to accomplish individual or mutual
goals”
Family Influence
Personal Influence
Other Influence
Customer expectations of service
• Types of expectations customers hold for service performance
• Sources of customer expectations
Possible Levels of Customer Expectation
Consumer Expectations of Services
Consumer Expectations
• Pre-trial beliefs about a service that function as standards against which performance is judged.
Types of Expectations
• Desired service -- the level of service the customer hopes to receive
• Adequate service -- the level of service the customer will accept
Dual Customer Dual Customer Expectation LevelsExpectation Levels
Adequate Service
Desired Service
Zone ofTolerance
Adequate Service
Desired Service
Zone ofTolerance
The Zone of ToleranceThe Zone of Tolerance---The extent to which customers recognize and are willing to
accept variation in service performance
Service Components
Zones of Tolerance forZones of Tolerance forDifferent Service DimensionsDifferent Service Dimensions
Most Important Factors Least Important Factors
Level of
Expectation
Adequate Service
Desired Service
Zone ofTolerance
DesiredService
AdequateService
Zone of
Tolerance
Desired Service
Adequate Service
Zone of Tolerance and Importance of Service Dimensions
• As a service dimension becomes more important zone of tolerance will narrow and desired and adequate levels will increase
Factors that InfluenceFactors that InfluenceDesired ServiceDesired Service
DesiredService
AdequateService
Zone of
Tolerance
Enduring ServiceIntensifiers
Personal Needs
Factors that InfluenceFactors that InfluenceDesired ServiceDesired Service
• Personal Needs --- states or conditions essential to the physical or psychological well being --- physical, social, psychological, and functional
Factors that InfluenceFactors that InfluenceDesired ServiceDesired Service
• Enduring Service intensifiers --- individual stable factors that lead the customer to a heightened sensitivity– derived service expectations– personal service philosophy
Derived service expectations
Personal service philosophy
Factors that InfluenceFactors that InfluenceAdequate ServiceAdequate Service
DesiredService
AdequateService
Zone of
ToleranceSelf-PerceivedService Role
Situational Factors
Perceived ServiceAlternatives
Transitory ServiceIntensifiers
Factors That Influence Adequate Service Expectations
• Are short-term in nature and fluctuate more than the factors that influence desired expectations
Factors That Influence Adequate Service Expectations
• Transitory (Temporary) service intensifiers --- short-term, individual factors that make a consumer more aware of the need of service
Factors That Influence Adequate Service Expectations
• Perceived Service Alternatives----• As the number of alternatives increases, the level
of adequate service increases and the zone of tolerance narrows
Factors That Influence Adequate Service Expectations
• Situational Factors – Temporary changes in the normal state of
things ---- tends to lower the level of adequate service expected and widen the zone of tolerance
– Reason for purchase– Consumer mood– Weather– Time constraints– Emergency
Reason for purchase
Consumer mood
Weather
Time constraints
Emergency
Factors That Influence Adequate Service Expectations
• Self Perceived Service Role --- how well the customer perceives they are performing their own role in service delivery
Factors that InfluenceFactors that InfluencePredicted ServicePredicted Service
DesiredService
AdequateService
Zone of
Tolerance
Predicted Service
Explicit ServicePromises
Implicit ServicePromises
Word-of-Mouth
Past Experience
Factors that InfluenceFactors that InfluenceDesired and Predicted ServiceDesired and Predicted Service
• Explicit Service Promises• Implicit Service Promises• Word of Mouth • Past Experience
– particular service– within the same industry– related services
•More experience the narrower the Zone of Tolerance
Explicit Service Promises
Implicit Service Promises
Word of Mouth
Past Experienceparticular service, within the same industry, related servicesMore experience the narrower the Zone of Tolerance
Past Experienceparticular service, within the same industry, related services
Factors Influencing Customer Satisfaction
•Product/service quality•Specific product or service features•Consumer emotions•Attributions for service success or failure
Product / service quality
Specific product or service features
Consumer emotions
Acknowledgment of service
Factors Influencing Customer Satisfaction
• Perceptions of equity or fairness• Other consumers, family members, and
coworkers• Price• Personal factors
– the customer’s mood or emotional state– situational factors
Perceptions of equity or fairness
Other consumers, family members, and coworkers
Price
Personal factorsthe customer’s mood or emotional state situational factors
Evidence of Service from theCustomer’s Point of View
People
Process PhysicalEvidence
Employees Contact Customer him/herself Other customers
Operational flow of activities
Steps in process
Flexibility vs. standard
Technology vs. human
Tangible communication
Servicescape
Guarantees
Technology
Website
(Process)Operational flow of activities / Steps in
process
(Process) Flexibility vs. standard
(Process) Flexibility vs. standard
(Process) Flexibility vs. standard
(Process) Technology vs. human
(People)Employees Contact
(People) Other customers
(Physical Evidence)
Tangible communication
(Physical Evidence) Guarantees
(Physical Evidence) Technology
(Physical Evidence) Website
Strategies For Influencing Customer Perceptions
• Enhance Customer Satisfaction through Service Encounters
• Reflect Evidence of Service
• Communicate and Create a Realistic Image
• Enhance Customer Perception of Quality and Value through Pricing
Enhance Customer Satisfaction through Service Encounters
Reflect Evidence of Service
Reflect Evidence of Service
Communicate and Create a Realistic Image
Communicate and Create a Realistic Image
Enhance Customer Perception of Quality and Value through Pricing
Enhance Customer Perception of Quality and Value through Pricing
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