Consumer BehaviourConsumer Behaviour

Based on concepts from Based on concepts from

■ PsychologyPsychology■ SociologySociology■ AnthropologyAnthropology■ MarketingMarketing■ EconomicsEconomics

Why do we need to study Why do we need to study Consumer Behaviour?Consumer Behaviour?

Because no longer can we take Because no longer can we take the customer/consumer for the customer/consumer for

granted.granted.

Failure rates of new products Failure rates of new products introducedintroduced

■ Out of 11000 new products introduced Out of 11000 new products introduced by 77 companies, only 56% are by 77 companies, only 56% are present 5 years later.present 5 years later.

■ Only 8% of new product concepts Only 8% of new product concepts offered by 112 leading companies offered by 112 leading companies reached the market. Out of that 83% reached the market. Out of that 83% failed to meet marketing objectives.failed to meet marketing objectives.

All managers must become astute All managers must become astute analysts of consumer motivation analysts of consumer motivation

and behaviourand behaviour

Can Marketing be Can Marketing be standardised?standardised?

No.No.

Because cross - cultural styles, Because cross - cultural styles, habits, tastes, prevents such habits, tastes, prevents such

standardisation.standardisation.

Unless Managements actUnless Managements act

The more successful a firm has The more successful a firm has been in the past, the more likely is been in the past, the more likely is

it to fail in the future.it to fail in the future.

Why?Why?

Because people tend to repeat Because people tend to repeat behaviour for which they have behaviour for which they have

been rewarded.been rewarded.

Language ProblemsLanguage Problems

■ ““Please leave your values at the desk” - Paris Please leave your values at the desk” - Paris hotelhotel

■ ““Drop your trousers here for best results” - Drop your trousers here for best results” - Bangkok laundryBangkok laundry

■ ““The manager has personally passed all water The manager has personally passed all water served here” - Acapulco restaurantserved here” - Acapulco restaurant

■ ““Because of the impropriety of entertaining Because of the impropriety of entertaining guests of the opposite sex in the bedroom, it is guests of the opposite sex in the bedroom, it is suggested that the lobby be used for the suggested that the lobby be used for the purpose.” - Zurich hotelpurpose.” - Zurich hotel

■ Ladies are requested not to have children in Ladies are requested not to have children in the bar.”- Norway barthe bar.”- Norway bar

““Come alive with Pepsi”Come alive with Pepsi”

■ ““Come alive out of the grave” - Come alive out of the grave” - GermanyGermany

■ ““Pepsi brings your ancestors back from Pepsi brings your ancestors back from the grave” - Chinathe grave” - China

Buyer BehaviourBuyer Behaviour

Consumer

4PsMarketing

EnvironmentBuyer

CharacteristicsBuyer

Decision ProcessBuyer

Decision

Marketing StimuliMarketing Stimuli

4 Ps

Product Price Place Promotion

Other StimuliOther Stimuli

MarketingEnvironment

Economic Technological Political Cultural

Buyer characteristicsBuyer characteristics

■ CulturalCultural■ SocialSocial■ PersonalPersonal■ PsychologicalPsychological

Buyer’s Decision ProcessBuyer’s Decision Process

■ Problem RecognitionProblem Recognition■ Information SearchInformation Search■ Evaluation of AlternativesEvaluation of Alternatives■ Purchase DecisionPurchase Decision■ ConsumptionConsumption■ Postpurchase behaviourPostpurchase behaviour

Buyer’s DecisionBuyer’s Decision

■ Product ChoiceProduct Choice■ Brand ChoiceBrand Choice■ Dealer ChoiceDealer Choice■ Purchase TimingPurchase Timing■ Purchase AmountPurchase Amount

Cultural factorsCultural factors

■ CultureCulture■ Sub - cultureSub - culture■ Social ClassSocial Class

Social factorsSocial factors

■ Reference GroupsReference Groups■ FamilyFamily■ Roles and StatusRoles and Status

Personal FactorsPersonal Factors

■ Family Life CycleFamily Life Cycle■ Occupation and Economic Occupation and Economic

circumstancescircumstances■ LifestyleLifestyle■ Personality and self - conceptPersonality and self - concept

Psychological FactorsPsychological Factors

■ MotivationMotivation■ PerceptionPerception■ LearningLearning■ Beliefs and AttitudesBeliefs and Attitudes

Buying RolesBuying Roles

■ InitiatorInitiator■ InfluencerInfluencer■ DeciderDecider■ BuyerBuyer■ UserUser

Buying BehaviourBuying Behaviour

■ ComplexComplex■ Dissonance - ReducingDissonance - Reducing■ HabitualHabitual■ Variety seekingVariety seeking

Buying ProcessBuying Process

■ Problem RecognitionProblem Recognition■ Information SearchInformation Search■ Evaluation AlternativesEvaluation Alternatives■ Purchase DecisionPurchase Decision

Post - Purchase BehaviourPost - Purchase Behaviour

■ SatisfactionSatisfaction■ ActionsActions■ Use and DisposalUse and Disposal