CONSUMER BEHAVIOUR

WHAT IS CONSUMER BEHAVIOUR

The buying behavior of final consumers-individuals and households who buy goods and services for personal consumption.

It is the study of HOW individuals, groups and organizations select, buy, use and dispose of goods and services, ideas or experiences to satisfy their needs and wants

MODEL OF CONSUMER BEHAVIOR

WHAT INFLUENCES CONSUMER BEHAVIOR?

Cultural Factors

-Culture

-Sub culture

-Social class

Social Factors

-Reference group

-Family

-Roles and status

Personal Factors

-Age and life cycle stage-Occupation

-Economic situation

-Lifestyle- Personality and self concept

Psychological Factors

-Motivation -Perception-Learning

-Beliefs and attitudes

Buyer

1. CULTURAL FACTORS1.1 Culture is the fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions.C.F exert the broadest and the deepest influence on the behaviour of the consumer

1.2. Subculture: A group of people with shared value systems based on common life experiences and situation:Subcultures include

nationalities, religions, racial groups, and geographic regions.

1.3 Social class/social stratificationThese are homogeneous divisions in the society

which share similar values, interests, and behaviorClassic depiction of social class

Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers

Characteristics Within a class, people tend to behave alike Social class conveys perceptions of inferior or superior

position Class may be indicated by a cluster of variables

(occupation, income, wealth) Class designation is mobile and changes and over time

Implication(difference in preferences like) Clothing Recreational Furnishing automobiles

2. SOCIAL FACTORS

Referencegroups

Social roles

Statuses

Family

2.1 REFERENCE GROUPS

Membership groupsMembership groups

•Primary groups•Primary groups

•Secondary groups•Secondary groups

•Aspirational groups•Aspirational groups

•Dissociative groups•Dissociative groups

REFERENCE GROUP reference groups consists of all the groups that have

a direct (face-to-face) or indirect influence on his/her attitudes or behavior.

membership groups They have direct influence on the attitude and behaviour Some memberships groups are primary groups such as

family, friends, neighbors, and co-workers with whom the person interacts fairly continuously and informally.

Some membership groups are secondary groups such as religious, professional groups that tend to be more formal.

Aspiration groups are those a person hopes to join. Dissociative groups are those whose values or behavior

an individual rejects. The buyer evaluates these elements together with the monetary cost to form a total customer cost.

Manufacturers of products and brands where reference group influence is strong must determine how to reach and influence opinion leaders in these reference groups.

An opinion leader is the person who offers informal advice , product-

related communications about a specific product or product category.

Teen icons as brand ambassador for clothes.

Marketers try to reach opinion leaders by identifying demographic and psychographic characteristics associated with opinion leadership, identifying the media read by opinion leaders, and directing messages at opinion leaders.

2.2 FAMILY

(part f reference primary group also in social factors) family is the most important consumer-buying

organization in society, and family members constitute the most influential

primary reference group. Marketers are interested in the roles and relative

influence of family members in the purchase of a large variety of products and services.

With expensive products and services, the vast majority of husbands and wives engage in more joint decision-making.

Men and women may respond differently to marketing messages.

Earlier in traditional families grand parents were decision makers but theses days joint decision making

2.3 ROLES AND STATUS:

A person participates in many groups and a person’s position in each group can be defined in terms of role and status.

Each role carries a status. Marketers must be aware of the status symbol

potential of products and brands. Marketers have status symbol products and

brands

3. PERSONAL FACTORS

Age

Values

Life cyclestage

Occupation

Personality

Self-concept

Wealth

Lifestyle

4. PSYCHOLOGICAL FACTORS

Motivation Perception Learning Beliefs and attitudes

MOTIVATION

Freud’sTheory

Behavioris guided by subconsciousmotivations

Maslow’sHierarchyof Needs

Behavioris driven by the lowest, unmet need

Herzberg’sTwo-Factor

Theory

Behavior isguided by motivating and hygiene

factors

MASLOW’S HIERARCHY OF NEEDS

HERZBERG’S TWO-FACTOR THEORY

PERCEPTION

Selective Attention

Subliminal Perception• not consciously aware yet

•Ie effects the behaviour

Selective Retention

Selective Distortion

LEARNING

It induces a change in our behaviour arising out of experience

Sony lcd-led

MEMORY Short term memory Long term memory

Brand associations

CONSUMER BUYING PROCESS

Problem Recognition

Information Search

Evaluation

Purchase Decision

PostpurchaseBehavior

Problem Recognition The buying process starts when the buyer recognizes a

problem or need. The need can be triggered by internal or external

stimuli. Marketers need to identify the circumstances that

trigger a particular need so that they can develop marketing strategies that trigger consumer interest.

Information Search An aroused consumer will be inclined to search for

more information. We can distinguish between two types of arousal.

The milder state is called heightened attention where a person simply becomes more receptive to information about a product.

The second level is active information search where a person looks for reading material, going online, etc. to learn about the product.

SOURCES OF INFORMATION

Personal(family, friends)

Experiential(handling, examining,

using the product)

Publicmass media,

consumer organizations)

Commercial(advertising, Web sites,

salespeople)

Evaluation of alternatives: No single process is used by all consumers or by one

consumer in all buying situations It is largely done on conscious and rational basis.

Beliefs and Attitudes Evaluations often reflect beliefs and attitudes. Through

experience and learning, people acquire beliefs and attitudes. These in turn influence buying behavior.

Belief —a descriptive thought that a person holds about something.

Attitude—a person’s enduring favorable or unfavorable evaluation, emotional feeling, and action tendencies toward some object or idea.

Attitudes put people into a frame of mind. Attitudes lead people to behave in a fairly consistent

way toward similar objects. Attitudes can be very difficult to change.

STAGES BETWEEN EVALUATION OF ALTERNATIVES AND PURCHASE

A consumer’s decision to modify, postpone, or avoid a purchase decision is heavily influenced by perceived risk. Functional riskPhysical riskFinancial riskSocial riskPsychological riskTime risk

Marketers must understand the factors that provoke a feeling of risk in consumers and provide information and support to reduce perceived risk.

Post-Purchase Behavior After the purchase, the consumer might experience

dissonance about their purchase and be alert to information that supports their decision.

Marketing communications should supply beliefs and evaluations that reinforce the consumer’s choice and help him or her feel good about the brand

Post-Purchase Satisfaction Satisfaction is a function of the closeness between

expectations and the product’s perceived performance.

If the performance fall short of expectations the consumer is disappointed.

If the performance meets expectations the consumer is satisfied.

If the performance exceeds expectations the consumer is delighted.

The importance of post-purchase satisfaction suggests that a product claim must truthfully represent the product’s likely performance.

Post-Purchase Actions Satisfaction or dissatisfaction with the product will

influence subsequent behavior. A dissatisfied consumer may abandon or return the

product.   Post-Purchase Use and Disposal

Marketers should also monitor how buyers use and dispose of the product. A key driver of sales frequency is product consumption rate.

Marketers must also need to know how the consumer disposes of the product once it is used.

BUSINESS BUYING BEHAVIOR

Business Market: All organizations that buy goods and

services for use in production of other products and services that are sold rented or supplied to other.

Business buying process: the decision making process by which

business buyers establish the need for purchased products and services and identify, evaluate and choose among alternative brands and suppliers

FEATURES OF BUSINESS MARKETS

Market structure