Consumer Behavior-Unit 1&26

8/14/2019 Consumer Behavior-Unit 1&26

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Consumer Behavior

Semester -3



What is Consumer Behavior

• The Behavior that consumers display in

searching for , purchasing , using , evaluating ,

and disposing of products , services , and

ideas to satisfy certain needs or desires .

• Personal Consumer / Organizational Consumer





Why study consumer Behavior

• Shorter Product Life cycle

Eg : mobile phones , cameras etc.

• Evolving consumer Preferences – Eg : Herbal Products

• Environmental Concerns – Green Products , Electric cars etc .

• Changing Lifestyles – Sugar free drinks , Diet food etc .

• Faster technology adoption – Online shopping etc .



Why study consumer Behavior

• To understand issues like –

– How consumers think , feel , reason and select among

different alternatives ( eg: brands & products )

– How consumers are influenced by their environment (eg: culture , family , peer group , and media )

– The behavior of consumers while shopping or making

any choice decisions

– How marketers can adapt and improve their

marketing campaigns or strategies to quickly

penetrate into the market .



Understanding consumer and market

segments

• Market Segmentation can be defined as the

process of dividing a market into distinct

subsets of consumers with common needs or

characteristics and selecting one or more

segments to target with a distinct marketing

mix .



Bases for Segmentation

• Geographic Segmentation- Region , citywise ,climate etc .

• Demographic Segmentation – Age , sex,

marital status , Income , Education ,Occupation etc .

• Psychological Segmentation –needs –

motivation , personality , attitude , perceptionetc .

• Psychographic – Life style segmentation



Bases for Segmentation Contd..

• Socio cultural – cultural , religion , sub culture, social class , family life cycle

• Use Related – Usage rate , awareness status

etc .• Use – situation segmentation – eg: time,

objective , location etc.

• Benefit Segmentation -• Hybrid Segmentation –psychographic-

demographic , geodemographic



Micro factors influencing Consumer

Behavior

Buyer

Social Factors

Social Class

Reference Group

Family

Roles & Status

Personal Factors

Age & Life cycle stage

Occupation

Personality

Lifestyle

Psychological Factors

Motivation

Perception

Beliefs & Attitudes

Learning

Cultural Factors

Culture

Sub culture



Assignment/ Presentation

• Surf Internet and write short notes on the following(withexamples ) – VALs

– Psychographic analysis (AIO)

– Hybrid Segmentation – Baby Boomers

• Pick atleast two print advertisements of any product /brand from a magazine /newspaper and give atleast 5

reasons( in points) why did it appeal to you,as a consumer .Mention the name of the magazine/newspaper and pastethe Ad(or photocopy ) in your assignment .



Culture

• Culture is the set of basic values , perceptions, wants and behaviors learned by a member ofsociety from family, place of residence and

other important institutions .• Culture is the most basic cause of person’s

wants and behavior

• Every group or society has culture and culturalinfluences on buying behavior may varygreatly from country to country .



Culture

• Enculturation : Learning of one’s own culture

is known as enculturation

• Acculturation : The learning of new or foreign

culture is known as acculturation

• Culture is learned , shared , has language &

symbols , rituals , dynamic .



Sub Culture

• It provides more specific identification and

socialization for members belonging to a

particular religion , racial group ,and

geographic regions .



Emergence of New Consumer culture

• Eating out grows in Urban India

• Pub culture in its infancy

• Women gain confidence with color cosmetics• Fair skin on the wishlist

• Films dictate fashion

• PC games attracting younger generation /PSPs• Saving rates dropping



Example : Rituals ( America)

• Wedding – White gown

• Birth of Child – Silver spoon

• Birthday – Cake , party , candles

• Graduation – Pen , card

• Valentine’s day –Card , Flowers , Roses

• New Year’s Eve – Champagne , party

• Going to the Gym – Towel, water , specialclothes , wrist band



Example :American Core Values

Value General Features Relevance to Consumer

Behavior

Achievement and success ,

Activity

Hard work is good , Keeping

busy is healthy and natural

Justification of acquisition of

goods ( “ You deserve it “ )

Time saver products , enhance

leisure timeIndividualism Being oneself ( self reliance ,

self interest , self esteem)

Stimulates acceptance of

customized or unique products

that enable to express his or

her own identity)

Freedom Freedom of choice Fosters interest in wide

product lines anddifferentiated products

Youthfulness A state of mind that stresses

being “young at heart “ and

having youthful apperance

Stimulates acceptance of

products that provide the

illusion and maitaining or

fostering youthfulnss



Few Indian Examples : Handouts

• Companies – Maggi

• Ads catch up with new trends

• Industry – Food Industry / Fashion Industry /Gadgets

• Geographies – Delhi / Tamil Nadu / Gujarat



Groups

• A group consist of people who have a sense ofrelatedness as a result of interaction with each

other .



Groups

Type Distinction

Formal vs Informal Formals Groups have clearly specified

goal , structure etc . Informal groups are

loosely structured

Primary vs Secondary Primary Groups are involved in gace to

face interaction ;secondary groups

interact less intensely

Aspirational vs Dissociative Aspirational Groups are those which an

individual wishes to join ;dissociativegroup is one that an individual wishes to

avoid



Reference Group

• A person or group that serves as a point of

comparison (or reference) for an individual in

the formation of either general or specific

values ,attitudes or behavior







Extent of Reference Group Infuence

• Visibility of Consumption

• Commitment to Group

• Conformity Requirement• Capability to take independent decisions



Marketing startegies & Reference

Groups

• Personal Selling Strategies

• Advertising Strategies – Celebrity

Endorsement / Emotional Appeal /

aspirational appeal / peer appeal /expert

appeal



Referent Group Appeal

Situation/ Product Appeal Element Types of Appeal Aim of

Communication

Urmila in Lux ad Film Star Aspirational Increase brand

awareness& reduce

perceived risk

Aamir Khan in Coke

Ad

Film Star Aspirational Increase Brand

wareness & create

favorable attitude

Colgate Total/

Indian Dental

Association

Association Backing Expert Reduced perceived

risk from

consumptionWheel Detergent

showing poor wash

quality if wheel not

used

A typical middle

class housewife

Peer Group Branf awareness/

creation of

favorable brand

attitude /creation

of purchase

intention



Effectiveness of Endorsement

• Credibility

• Attention

• PR Coverage• Higher Recall

• Associative benefit



Family / Household decision making

• Roles

– Information gatherer

– Influencer

– Gatekeepers – Decision makers

– Purchasers

– Users – Maintainers

– Disposers



Family Life Cycle

• Stage 1 – Bachelorhood

• Stage 2- Honeymooners

• Stage 3- Parenthood – Full nest 1

– Full nest 2

– Full nest 3

• Stage 4- Postparenthood

• Stage 5- Dissolution



Bachelorhood

• Employed , graduates , college going

• Young single Adults – spend on rent ,automobiles , travel , entertainment , clothing ,assesories

• Niche segment for travel agents , housingdevelopments , health clubs , sports clubs ,magazines etc.

• “ To be married “ market ……bridal industry (wedding sites , special parlours , special markets ,products etc .)



Honeymooners

• Young married couples

• Start up expenses – house , major/minorappliances , furniture , utensils ,etc .)

• Special magazines – Goodhousekeeping,Betterhomes etc .



Parenthood

• Sometimes called Full nest stage …usually extends over 20years

• Full nest 1: immediately afetr the first child is born….manywives stop working …reduction in family income ….newpurchases like baby clothes , food , health products etc….choice of vacations , restaurants , automobiles etc .

• Full nest 2: Financial position improves with careeradvancement of husband …wife may return to work…lessinfluenced by advertising …with experience

•

Full nest 3 : family’s income continues to grow ….childrenalso employed ….influence by ads almostnegligible….replacement of old items , more tastefulfurniture , cars , luxury items , vacations etc .



Post Parenthood

• Children have left home …empty nest stage

• Comfortable stage for parents to spend on

themselves , travel , extended holidays …higher

disposable income because of savings…..

• Empty nest 1: satisfactory financial position

….spendings on gifts , vacations

• Empty nest 2: Income is drastically cut , expenseson medical care , products that aid their health ,

sleep , digestion etc .



Dissolution

• Death of one spouse

• Simple living and economical



Marketing applications – Household

Buying

• Understand difference in consumptionpatterns of different households

• Develop product and promotional startegies

with recognition of changing gender roles andresponsibilities

• Use of concept of family life cycle as basis ofmarket segmentation

• Target products and services properly for thefamily roles in decision making



Social Factors

• This is relatively homogeneous and enduringdivisions of the society as all societies exhibitsocial stratification

• Social Class is usually determined by a cluster ofvariables rather than single variable (occupation ,income , wealth , education etc .)

• Marketers must be careful about the kind of

advertisements /communication they make asper the target audience ( language prefernces /lifestyle differences etc .)



Handouts & Discussion on Ads on

social Class

• Luxaflex

• Citibank etc .





Consumer Motivation



Consumer Motivation

• Consumer Motivation is one of the driving forcesof Consumer Behavior

• Consumers buy and use products because theyare motivated by the need and desire to do so .

• The Primary objective of Marketing and

Marketing Communication is to motivateconsumers to prefer and purchase one productand a specific brand over other



Motives

• Motive is a construct representing an

unobservable inner force that stimulates and

compels a behavioral response and provides

specific directions to that response



Consumer Motives

Motives Explanation Example : Car

Functional Involves utility of the product/service or

the function it performs

Purchase of a car because of

its fuel efficiency, space ,

reliability

Aesthetics

/emotional

Involves the appearance or

attractiveness of product /service

Purchase of a car because of

its color , shape , style etc .

Social Reflected in the status and esteem

value

Purchase of a car because it

shows that the buyer is a “cut

above “

Situational Unexpected benefit of a product and

service : Discounted price etc .

Freebies along with purchase

Curiosity Interest arises by a product and service Purchase of a sports car

because it will be a new

experience



Arousal of Motives

• Physiological arousal

– Hunger need

• Emotional arousal

– Daydreaming , desires etc .

• Cognitive arousal

– Advertisements ……call up parents when you see ads

of telecom operators etc .• Environmental/Situational arousal

– 6’o’clock – smell of bakery food arouse need for food



Role of Motives

• Role of Motives in Consumer Behavior is to arouse anddirect the behavior of Consumers.

Defining Basic Striving :Motives influence consumers to

develop and identify their basic striving which includesgeneral goals ….safety, affiliation ,achievement etc .

Example : “ You can’t imagine how fast it will help you

grow in life !!!” Aptech Certified Internet Professional

Aptech Computer Education



Role Of Motives …..Contd

Identifying Goal Objects

Consumers view products or services as

means by which they can satisfy their motives

…..Consumer Illusion

Example: “By Wearing Reid and Taylor ,

you can personify “ James Bond “ or

“Amitabh Bachchan “



Role Of Motives ………..Contd

Influencing Choice Criteria

Motives themselves can guide consumers

to buy a certain product and not the other



Classification Of Motives

• Strong vs Weak

• Positive vs Negative

• Rational vs Emotional

• Latent vs Manifest Motives



Strong vs Weak Motive

• Strong Motives : Consumers are well aware ofthe importance of the buying decision …..infavor of marketers

• Weak Motive : Consumer ignorant of theimportance of buying decision ..marketersneed to facilitate consumer’s action to reachdesired goal .

• Air Conditioners /Referigerators etc .



Positive and Negative Motivation

• Positive : When consumer feel a driving force towards an object orcondition…..also known as need

• Negative : When they feel a driving force away from an object/condition……….fear/aversion

• Ad by VLCC….Before-95 Kgs /After- 70 Kg …. • Two photographs of the same person are given such that the

negative motive of not being fit will make you attracted to avail theservices rendered by VLCC.

• Ad by Neutrogena• “Now get a perfect sunless tan instantly ………(model smiling)”

• “Dermatologist Report : A year of incidental Sun equals Baking for aweek at the Beach !”



Rational vs Emotional

• Rational : When the consumer’s buying behavioris a carefully chosen and well considered one

• Consumer’s selection is based on objectiveevaluation : size , weight , price etc .

• Emotional : If the consumer is emotionally guidedin selecting the object ….pride , emotion ,statusetc .

• Personal /Subjective criteria : pride , fear ,affection , status etc .



Latent vs Manifest

• Manifest motives: These motives are known to customersand he openly admits to being influenced by them…..conform to society’s prevailing value system

•Latent motives are unknown to customers …customer isreluctant to admit their influence on him in front of others

• Eg : Why did you buy “ Lux” Soap ? – for healthy skin , fragrance etc ……….manifest

– Because I want to have skin as beautiful as Aishwarya Rai..latent



Example

Manifest Motives Consumption Behavior Latent

•It is a hi Tech Car

•Its large size is

comfortable•It is a fault free

engineering marvel

Purchase aMercedes Benz

•It will demonstrate

my success•I can make others

feel envious



Consumer Buying Process

NeedRecognit

ion

ProductAwaren

ess/Informat

ionSearch

Interest

Evaluation andIntentio

n

Purchase

Decision

PostPurchas

eBehavio

r



Need Recognition

• Need arousal

– Internal stimulus : hunger, thirst etc

– External stimulus : display of an item

• Marketer must identify the drive

• Timing of need arousal is important





Maslow’s Needs Exemplified

Physiological Needs

Products Vitamins, herbal supplements, medicines, food,

exercise equipment, fitness clubs

Marketing themes Pepfiz antacid—‖Just one and heartburn’s done‖

Jiyo Jee Bhar Ke, Thodi si Pet Pooja…Kabhi bhi

kahin bhi ….,

Safety Needs

Products Cars and car accessories, burglar alarm systems,retirement investments, insurance,

medicines,Cement

Marketing themes Jeetey Raho

Volvo—―Protect the body. Ignite the soul.‖



Contd…..

Belongingness

Products Beauty aids, entertainment, clothing, cars

Marketing themes Old Spice —‖The Mark of a Man‖

Loreal ….‖Because I am worth it ―

Esteem Needs

Product Clothing, cars, jewelry, hobbies, beauty spa services

Marketing themes Toyota : ―Quality Revolution‖

kitchen appliances—―The sign of a great cook.‖

Diamonds are Forever , Reid n Taylor ,Tag Heur Watches

Self-Actualization

Products Education, cultural events, sports, hobbies, luxury goods, technology, travel

Marketing themes Nike – Just Do it

―An evening with Jagjit Singh ―,



Needs

• Every individual has needs :some are innate ,others are acquired

• Innate : food , water , air clothing , shelter ,sex….needed to sustain biological life ….Primaryneeds or motives

• Acquired needs : Need for self esteem , prestige,affection , power , learning …….psychological….Secondary needs or motives .

Product Awareness/ Information



Product Awareness/ Information

Search

• Consumer gathers information – Heightened attention : consumer more receptive and alert

to the information

– Active information search : tries to collect information

• Sources of information

– Personal : family , friends , neighbors etc .

– Commercial: Advertisement, sales men , dealers etc .

– Public Sources: mass media ,consumer rating organization

etc . – Experiential Sources :handling , examining , using the

product .



Stages of Information Processing

• Exposure

• Attention

• Comprehension

• Acceptance

• Retention



Interest

• State of mind that exists when a consumer

perceives a need and /or is aware of

alternative products capable of satisfying that

need .

• If attention is diverted , buying process is

broken down



Evaluation and Intention

• Stage of mental trial of the product

• Draws conclusions about their relative

satisfaction giving potential value .

•Develops the intention to either purchase

/reject the brand/ product



Evaluation of Alternatives

• Options available to the marketer :

• Modify the Product : Redesign

• Altering beliefs about the brand

• Altering belief’s about the competitor’s brand

• Calling attention to neglected attributes

• Shifting the buyer’s ideals



Purchase Decision

• Consider attitudes of others : negative attitude orconsumer motivation

• Anticipated Situational factors : family income

• Unanticipated situational factors : accidents , illness ,travelling etc .

• 5 purchase decisions : – Brand decision

– Vendor decision

– Quantity Decision – Timing Decision

– Payment method decision





Types of Buying Decisions

• RRB/ habitual buying

• LPS buying

• EPS buying



Post Purchase feelings/Behavior

• Consumer is satisfied if the product matcheshis expectations

• Highly satisfied , if exceeds expectations

• Repeat Purchase ……word of mouth ….” Ourbest advertisement is a satisfied customer”

• Dissonant Customer : Return the product or

seek information that confirm its high value….Action: Complaining

• Post purchase disposal



Needs

• Every individual has needs :some are innate ,others are acquired

• Innate : food , water , air clothing , shelter ,sex….needed to sustain biological life ….Primaryneeds or motives

• Acquired needs : Need for self esteem , prestige,affection , power , learning …….psychological….Secondary needs or motives .

Marketing Strategy and consumer



Marketing Strategy and consumer

Behavior

• Marketing Analysis – consumer, conditions

,competitor , company

• Marketing Segmentation

• Marketing Strategy-4 Ps

• Consumer Decision Process

• Outcomes-customer satisfaction, sales ,

Product/brand image





Consumer Personality

• Personality is an internal system which includesall those aspects of a person that are inheritedand all those aspects that are learned .

• Those inner psychological characteristics thatboth determine and reflect how a personresponds to his or her environment . – Inner characteristics : those specific qualities

,attributes ,traits ,factors ,and mannerisms thatdistinguish one individual from other individuals

• Aggressive , friendly , moody, arrogant………



Sources of Influence

• Inherited from parents

• Influenced by the environment in which the

person is brought up

• Own individuality



Personality and Consumer Behavior

• Optimal Stimulation Level (OSL) – Physically stimulating , emotionally energizing

– Golfer vs Polo Player /Bunjee jumping etc .

– Innovators (first consumers to buy ,seek information about newproducts etc……more curious , buy products with greater risks

• Dogmatism – Tendency to resist change /new ideas

• Need for Cognition – Effortful thinking, deliberating , contemplating

• Susceptibility to influence

– Desire to enhance their self image as observed by others ….Consumerswith lower information procewssing confidence tend to be moreinfluenced by ads ,relative to those with higher self confidence.



Example

• “ Women around the world don’t hesitate to

do it .Why should I ?”

• Beautiful women around the world over are

opting for the Gillette Satin Care Ready shaver

.A smart choice since it’s an international

razor designed exclusive for women . Itsspecial features include :………….”







Marketing Applications of Personality

• Position Brands as per the consumerpersonality type

• Avoid targetting innovative products to rigid

consumers and consumers with low tolerancefor ambiguity

• Identify the extent to which consumers ofthe product category are prone to discounts/rebates and how value conscious they are,then market accordingly



Theory of Self Concept

Dimensions Actual Self concept Ideal Self Concept

Private Self How I actually see myself How I would like to see

myself

Social self How others actually see

me

How I would like others to

see me



Example : Ad by Nike

• “Got what it takes “ • “It takes courage to fight the odds ,stamina to lat forever

,conviction from within and a dream to be victorious “

• The new winter line from NIKE, fights defeat ,absorbsvictory .

• Just do it !!!!!

• Most of us constantly strive to bridge gap between ourprivate actual self and ideal self .Thus ,those who don’t

exercise know that excercising is good ,and ideally wouldlike to .This ad is exhorting them to go ahead and taketheprepatory step, i.e to buy a track suit

l d d



Actual and Desired Concepts

Actual Self Concept

:Private / Social

Desired Self

Concepts :Private /Social

Product

MediaServices

d



Attitude

• Attitude is a learned predisposition to behave

in a consistently favorable or unfavorable way

with respect to a given object /stimuli.

Ch i i f i d



Characteristics of Attitude

• Attitudes have an object

– Focal point …physical object ,or a service or an action

• They have direction , intensity , and degree

– For or against ,extent of like /dislike , how strongly aperson feels about his conviction

• They have structure

– Consistent , generalizable towards a class of object• They are learned

– Direct /indirect experiences

S f A i d D l



Sources of Attitude Development

• Personal experience

– Needs

– Selective Perception/interpretation

– Personality

• Group Associations (family , work and peer

groups etc.)

• Influential others (experts , opinion leaders,relatives ,celebrities etc.)

C f A i d



Components of Attitude

• Cognitive Component

• Affective component

• Behavioral Component

C i i C



Cognitive Component

• Consumer’s Belief about an object

• Eg : Dettol Soap is antibacterial , is effective , notperfumed

• These beliefs may or may not conform to reality

• More the number of positive beliefs about the brand ,greater the positiveness of each positive belief ,morefavorable the overall cognitive component of attitude

Aff ti C t



Affective Component

• A consumer’s feelings or emotional reactions tothe object represent the affective component .

• May be a result of cognitive evaluation

• Emotional or effective evaluation of products

/brands• Amul Cheese vs Britannia Cheese

B h i l/C ti C t



Behavioral/Conation Component

• One’s tendency to respond in a certainmanner towards an object or activity

• Recommendations to friends etc .

• Actual behavior

Attitude Components &



p

Manifestations

StimuliProducts

Situations

Retail

Outlets

Sales People

Ads

Other

Objects

Cognitive

Affective

Behavioral

Beliefs about

specific

attributes or

overall objectEmotions or

feelings about

specific

attributes or

overall objects

Behavioral

intentions with

respect to

specific

attributes or

overall objects

Overall

orientation

towards an

object

Attit d B h i C i t



Attitude Behavior Consistency

• Factors influencing Attitude –Behaviorconsistency :

• Consumer Influences – Consumer’s access to resources

– Consumer’s past experience with the brand – Action/inertia orientation of the Consumer

• Situational Influences – Time gap between positive attitude formation and

actual opportunity to buy – Message repetition

– Social Influence

M difi ti f Attit d



Modification of Attitude

• A Change in attitude is ensured through :

• Appropriate Source of Communication

• Appeal Characteristics

S f C i ti



Source of Communication

• Source Credibility

– Credible Sources like BIS( Bureau of Indian

Standards ),ISO 9001, Indian Dental Association

etc.• Celebrity as source

– Shahrukh “Mayur” Khan , Aamir Khan for Tata Sky

, Amitabh Bachchan for Reid n Taylor , Sachin

Tendulkar for Boost

A l Ch t i ti



Appeal Characteristics

• Fear Appeal

– Accidents in case of Drunken driving ,social fears

like bad breath , body odor, bacterial infections etc

• Humor appeal – Bingo , Centre shock etc.

– Attracts attention, does not generally increase

persuasion ,increases liking of the ad .

Appeal characteristics Contd



Appeal characteristics Contd….

• Comparisons – Ads by Detergents ( Rin vs Tide )

• Emotional appeal

– Ads by Insurance Companies – Attracts attention , memorable etc .

• Value expressive vs Utilitarian approach – Creates an image for the product user

– Ads for Perfumes , cosmetics etc.

Strategies adopted by Marketers to



g p y

bring Attitudinal Change

• Change Consumer’s basic motivational function

– Utilitarian function

– The Ego defensive function

– The Knowledge function – Eg : Ad by NDDB for milk promotion

– Eg: How much is calcium requirement in a body ?

•Associate the product with the admired group

– Cause related ads -Blind Relief association , Old age

Homes etc .

Strategies contd



Strategies ….contd

• Resolving conflicting attitudes – Navratri special food in Nirulas , special vegfood in

Pizza Hut , Sugarfree etc.

• Change beliefs about the product /brand

– Adding an attribute

– Tanishq jewellery for Woking women, Citizen Watchesad by Kareena Kapoor

• Changing beliefs about the Competitors Brands

Tricomponent Model



Tricomponent Model

AffectPositive/ne

gativefeelings

Cognition

Beliefs

Conation

Behavior/action

/intentionto buy

Attitude towards the Ad Model



Attitude- towards- the- Ad Model

• Impact of Advertising or some other promotionalvehicle ( eg: a catalogue )

• Consumer forms various feelings (affect) and

judgments ( cognition) as a result of exposure toAds

• These feelings and judgements in turn affect the

consumer’s attitude toward an ad and beliefsabout the brand

Attitude Toward the Ad Model



Attitude –Toward- the -Ad Model

Judgments

about the Ad

(Cognition)

Exposure to

an Ad

Beliefs about

the brandAttitude

toward the

Brand

Attitude

toward the

Ad

Feelings from

the Ad

(Affect)

Nicosia Model



Nicosia Model

• Developed by Fransisco Nicosia

• There are four basic “ Fields “ in the model

• Assumption : Neither the buyer nor the seller has had anyprevious experience directly related to the product /brand

• The model is viewed as representing a situation where afirm is designing communications(ads, products etc)to

deliver to consumers , whose response will influencesubsequent actions of the firm .

Nicosia Model Contd



Nicosia Model Contd….

Firm’sAttribute

s

Consumer’s

attributes

Search and

Evaluation

Decision

(Action)

Consumption

Message

exposure Attitude

Purchasing

Behavior

Experience

FIELD ONE: From the source of message to the consumer’s attitude

FIELDTWO:Search

and evaluation

of means/end

relations

Motivation

FIELD

THREE: Act

of Purchase

FIELD

FOUR:Feedback

Nicosia Model : Explained



Nicosia Model : Explained

• Field 1 represents the output of commercial messagefrom the firm in form of advertising or other form ofpromotions …….this becomes input for field 2

• Field 2: Evaluation by the consumer of the product andother alternatives …..If there is favorable attitude andmotivation to buy , it becomes input for Field 3

• Field 3 : Represents act of purchase

• Field 4 : Includes – use and storage of the product ,

– retention of experience by the consumer as an influencingfactor in future purchase

– Feedback of sales

Howard Sheth Model



Howard Sheth Model

• The model explains the buyer decision processusing 6 sets of variables :

1. Input variables

2. Behavioral determinants3. Perceptual Reaction

4. Processing Determinants

5. Inhibitors6. Output Variable

Howard Sheth Model



Howard Sheth Model

InputsProducts ,

services , brandFacts , Images ,

feelings

Behavioral Determinants

Personality

Culture

Social ClassImportance of purchase decision

Perceptual

reactionPerceptual bias

Sensitivity toinformation

Filtering of

information

ProcessingDeterminants

Purchase

motivation

Avalilablesatisfactions

Judgemental

criteris

OutputsAttention

Understanding

Attitudes

Purchase intention

/purchase

behavior/decision

Actual Purchase

Or no purchase or

delay

Inhibitors

Price of the product /brand

Availability of product/brand

Financial status of individual

Time constraints on individual



Post Purchase Behavior

Consumption



Consumption

• Consumption, in its broadest and simplestform , means possession and/or use of goods

and services

Consumer’s post purchase



behavior

• Consumption

• No consumption

• Disposition

• Repeat purchase

• Recommend the product / brand to others .

Confirmation/Disconfirmation



Confirmation/Disconfirmation

• Confirmation : Product performance is asgood as expected

• Disconfirmation :

– Positive : When the product performance is betterthan expected

– Negative : Performance at lower level than that

expected.







Post Purchase dissonance



Post Purchase dissonance

• Did I make the right decision?

• Should I have done / bought something else ?

• Feeling of uncertainty about whether right choiceis being made…..

• Occurs before the consumer is determined aboutthe satisfaction

PPD is a function of :



PPD is a function of :

• Importance of Purchase decision

• Consumers tendency toward anxiety

• Finality of the purchase decision

• Clarity of the final purchase choice

Reducing Dissonance : Attempt by



Consumer

• Change his evaluation of alternatives: SelectedRetention

• Seeking new information : To reassure

• Changing attitudes

Marketing Applications : Consumer



satisfaction and Dissonance

• Confirming expectations

• Inducing attitude change: Promotional

techniques like free Samples , sachets etc .

• Reinforcing buyers

Marketing Applications of Post



Purchase behavior

• Encourage brand and outlet loyalty• Respond promptly to dispel rumors and other

negative communications

• Offer redress to consumers who complain andthereby regain a positive brand or outletimage

• Use feedback from both positive and negativepost purchase behaviors to improve productsand promotions

Communication



Communication

• Communication is defined as transmitting ,receiving and processing information

Communication Process



Communication Process

Example



Example

• Senders : are the companies that manufacture shoeslike Reebok , Nike etc .( the firms hire adbertisingagencuies to construct messages )

• Encoding : Taking the idea and transforming it into anattention –getting form , through an ad or some other

verbal . The ad creative performs this role• Message Channel :The channel may be television

carrying an ad , billboard , newspaper etc .

• Decoding : occurs when the message touches the

receiver’s senses in some way. Some consumers willhear and see a TV ad …..smell perfume …readingcoupon offer etc .

Example : Contd …..



Example : Contd …..

• Quality marketing communication occurs when therecievers decode or understand the message as it wasintended by the sender

• Noise is anything that distorts or disrupts the message .

Can occur at any stage• Clutter : exists when consumers are exposed to

hundreds of marketing messages per day , and mostare tuned out .

• Feedback : takes form of purchases , inquiries ,complaints , questions , visits to the store or “ likes “ or“hits “ on the websites / Social networking sites

Process of Marketing Communication



Process of Marketing Communication

Marketing

Manager or

Company

Consumer

( Target

Audience

Target

Audience

Interpretati

on

Ad media (

Print/Electro

nic /Direct)

Sales man

PRAdvertising

/Publicity

/Sales

Presentatio

n

Sender

Encoding

Channel Media

Decoding

Receiver

Feedback (Marketing

Research Sales Reports )

Barriers to Communication



Barriers to Communication

• Between individuals ( age , gender, socialstatus , personality etc )

• Within companies ( poor downward/

upward/lateral flow etc .)• Between Companies ( poor selling techniques

, poor media choices , unfocussed advertising ,

failure to find correct contact persons )

Marketing Communication



Marketing Communication

• The marketing communication mix(also calledpromotion mix )consists of four major tools:

– Advertising

– Sales Promotion

– Publicity

– Personal Selling – Public Relations

Objectives of Marketing

C i ti



Communication

• Informing

• Persuading

• Reminding



IMC contd….



• According to American Marketing Association….

“IMC is a planning process designed toassure that all brand contacts received by the

customer or prospect for a product ,service ,

or organization are relevant to that personand consistent over time “

Factors in setting the Communication

i



mix

• Type of Product Market• Push or Pull Strategy

– Push strategy :• When there is no Brand loyalty

• Product is an impulse item

– Pull strategy :• When there is high brand loyalty

• High involvement category

• Buyer readiness stage• Product Life Cycle stage

• The Company’s market rank

Buyer Readiness Stage



y g

• Advertising & Publicity play the most importantrole in awareness building stage

• Customer comprehension is affectd byadvertising & personal selling

• Customer conviction : Personal selling

• Closing of sale : Personal selling & Salespromotion

• Repeat purchase : Personal selling , salespromotion , remider advertising

PLC



• Introduction Stage : Advertising & Publicity havethe highest cost effectiveness followed by

personal selling / Sales promotion to induce trial

• Growth Stage : all tools are toned down as WOMgains momentum

• Maturity Stage : Sales Promotion / advertising /

personal selling all grow important

• Decline : Sales promotion / advertising &

Pubilicity are reduced

Company’s Market rank



p y

• Impact on the target audience is measured byasking :

– Whether they recognize / recall the brand

– How many times they saw the message – How they felt about the message

– The previous and current attitudes towards the

product and company

4Ps vs 4 Cs



• Product vs Consumer

• Price vs Cost

• Place vs Convenience

• Promotion vs communication

Documents

Consumer Behavior-Unit 1&26