3 Understanding Consumer Behaviour

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Prof. Vikram Parekh on IMC ([email protected])

3. Understanding

Consumer Behaviour


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Chapter Takeaways

Consumer behaviour and its importance inpromotional planning

Cultural, social, personal and psychologicalfactors influencing decision-making andtheir impact on promotions

Consumer decision-making processes & theuse ofadvertising and promotions toinfluence them


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Concerns of consumer behaviour

How people buy, what they buy, when theybuy & why they buy

Processes used to select, buy, use &dispose off products & the impact of theseprocesses on marketers

Study ofcharacteristics of individualconsumers to understand their needs,behaviours and motivations


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Model of buyer behaviour

Marketing

stimuli Product

Price

Place

Promotion

Other stimuli

Economic

Political

Technological

Cultural

Buyers

characteristics Cultural

Social

Personal

Psychological

Buyers

decisionprocess

Problemrecognition

Informationsearch

Evaluation ofalternatives

Purchase decision

Post-purchasebehaviour

Buyers

decisions Product choice

Brand choice

Dealer choice

Purchase timing

Purchase amount


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Culture

Set of values, ideas, attitudes, beliefs, norms, customs,

rituals & symbols learned & transmitted from

generation to generation over time

Individualism

vs. freedomAbstinence vs.

materialism

Joint family vs.

nuclear familyRamayan vs. K-

serials


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Culture

Sub-culture

Subsets of the largerculture along lines ofrace, religion,region, etc.

E.g. Gujaratis,environmentalists,

gays, aesthetics,urbanites, etc.

Social classes

Hierarchical divisionof the society alonglines ofoccupation,income, education,lifestyle, etc.

E.g. Brahmins,

middle class,agricultural class,etc.


7/27Prof. Vikram Parekh on IMC ([email protected])

Hidesign caters to the elite class



Social factors

Groups used as a yardstick in forming onesthinking, feeling, values & behaviour

Can be aspiration or dissociative groups

Referencegroups

One of the strongest influences on an individualsbuying behaviour

Often a single buying unit, with 1 or 2 primedecision-makers

Family

Products are often chosen to communicate onesrole & status in a society

Role & statusin a group



Airtel influences through

reference groups



Buying roles in a family/ purchase

unit

Buyer

Initiator

Influencer

DeciderBuyer

User



Marketers target people in specific

roles



Personal factors

A buyers

demographics &

psychographics, such

as age, stage in lifecycle, occupation,

economic situation,

lifestyle, personality

& self-concept, etc.also affect purchase

decisions



Psychological factors

Makes a person move towards goal fulfillmentMotivation

The process by which a person selects, organizes & interpretsinformation to create a meaningful picture of the worldPerception

The process by which individuals acquire the purchase & consumptionknowledge & experience to apply to future related behaviourLearning

Belief: Descriptive thought regarding the truth or validity of aproposition

Attitude: Favourable or unfavourable dispositions towards something

Beliefs &

Attitudes



Maslows hierarchy of needs



Herzbergs two-factor theory

Motivators

Hygienefactors

Motivationto act



Perception

Selectiveattention

Selectivecomprehension

Selectiveretention



How do you perceive these ads?



Learning

Behavioural theories

Learning is a result ofaction

Drive: Strong internalstimulus propelling action

Cues: Minor stimulidetermining when, where &how a person responds

Reinforcement can be positive

or negative Future responses can be by

generalization ordiscrimination

Cognitive theories

Learning occurs from achange in mental state

Learning relates newinformation to previouslylearned information

Cognitive processes such asperception, motivation,beliefs & attitudes, etc.

influence behaviour Effect of environmental

factors can be minimized


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How do the following brands

influence consumer attitudes?


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Model of consumer decision-

making

Problemrecognition

Informationsearch

Alternativeevaluation

Purchasedecision

Post-purchase

evaluation

Motivation PerceptionAttitude

formationIntegration Learning

A. Stages in the consumer decision-making process

B. Relevant internal psychological processes


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Encouraging problem recognition

through communication


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Information search

Intern

alsearch Past

experiences

Knowledgeregarding

alternatives

Extern

alsearch Personal

sources

Commercialsources

Public sourcesPersonal

experience


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Quick Q!

Which of the following is likely to have

the most influence on a consumer

wanting to purchase a luxury car?

a. Television

b. Print

c. Word-of-mouth

d. Internet


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Communication helps evaluate

alternatives


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Purchasedecision

When tobuy?

Whereto buy?

Howmuch to

buy?

How topay?

Purchase decision

To buy or not to

buy?

Role of

unexpected

situational factors


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Post-purchase tasks

Managingcustomer

satisfaction

Managingpost-

purchasedissonance

Obtainingcustomerfeedback

Regulatingproduct

disposal

3 Understanding Consumer Behaviour

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