Consumer Behavior - Marketing Management 1
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Transcript of Consumer Behavior - Marketing Management 1
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Consumer Decision Making
Process
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Demographic Profiles
CCDC
Barista
Starbucks Costa
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Non loyal
respondents
responses to coffeecafes
Loyal CCDC
consumerresponses
Loyal Barista
consumerresponses
1 It is an expensive brand of coffee 4.23 2.31 2.57
2
The brand's customers are young and highly
aspirational 3.85 4.11 3.97
3 The place is for everyday coffee lovers 2.53 3.97 3.09
4
The people who visit this place are tech savvy
and possess the latet gadgets 3.33 3.91 3.43
5
The aroma of this brand of coffee is very
pleasant 3.63 3.66 3.86
6
This brand is meant to dissociate the coffee
drinking habit from being a mundane activity 3.03 3.46 2.8
7 The coffee is priced competitively 2.33 3.29 3.14
8
The people who drink this brand of coffee are
professionals and are sophisticated 3.38 4.2 3.2
9 The brand's caf is a place to hang out 3.9 4.03 3.26
10
The brand's caf is the perfect place to enjoy
solitude. 2.7 4.23 3.97
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Non loyal respondents
responses to coffee cafes
Loyal CCDC
consumer
responses
Loyal Barista
consumer
responses
11The brand projects a sophisticated image. 3.8 4.2 4.26
12It is a trend to drink the brand's ccoffee. 3.63 3.63 3.09
13
The brand's coffee makes one feel proud
about drinking coffee. 3.08 3.23 4
14
The brand reminds me of my friends and
the times we spent together 3.45 4.26 3.69
15
The brand's caf is a place for recreation,
appropriate for one to enjoy and have fun. 3.63 3.86 3.77
16
The brand's caf is a place to spend time
with friends. 3.9 2.6 3.89
17The prices are reasonable and affordable. 2.48 3.71 3.74
18
The customers are urban people whofollow the latest fashion. 3.58 3.86 3.4
19
This brand is meant for highly recognised
people. 3.1 2.6 2.29
20
The brand has the authentic colour of
coffee. 3.28 3.71 4.17
21
Consuming this brand of coffee makes one
feel refreshed and energised. 3.43 3.69 4.0322The brand uses quality ingredients. 3.48 4.03 4.23
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Non loyal
respondents
responses to coffee
cafes
Loyal CCDC
consumer
responses
Loyal Barista
consumer
responses
23The brand's caf is a place to meetnew people 2.55 4.37 4.17
24
The dcor of this brand's caf
reminds people of luxury. 3.25 4.11 4.06
25
The strength of this brand's coffee is
appropriate and has a lasting effect. 3.3 3.91 4.17
26
One feels westernised while
drinking the coffee associated with
this brand. 3.35 3.17 3.29
27
The brand's caf is a place to have
formal meetings. 2.95 4.26 3.77
28
This brand stands for quality coffee
that guarantees satisfaction. 3.5 3.89 4.11
29
The entire setting of this brand's
caf such as its interiors, lighting.
Dcor, etc creates excitement. 3.5 3.89 4.03
30
A large variety of beverages is
available at this brand's caf. 3.33 3.71 3.31
31
The interiors of this brand's caf
makes me feel relxaxed. 3.58 4.71 4.17
32The brand highlights one's status 3.53 3.57 4.34
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Self-fulfilling Effect or thePygmalion Effect
the difference between a lady and a
flower girl is not how she behaves but
how she's treated. I shall always be a flower
girl to Professor Higgins, because he always
treats me as a flower girl, and always will,
but I know I can be a lady to you because
you always treat me as a lady, and
always will."
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Indian ConsumerShare of Wallet
2005 2025
Food, Beverage, Tobacco 42% 25%
Transportation 17% 20%
Health Care 7% 13%
Personal products 8% 11%
Education & recreation 5% 9%
Housing & utilities 12% 10%
Communication 2% 6%
Apparel 6% 5%Household Products 3% 3%
Source : McKinsey Global Institute
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How India Spends2009-10 (NSS)Expenditure Bottom
(10%)
Middle(40-
50%)
Top (10%) All India
Cereals 24.9 16.2 4.8 12.5
Pulses 4.7 4.1 1.6 3.3
Fruit & veg 9 8 4.7 7
Sugar 2.4 2.6 .9 2Milk & Milk pr 4.1 8.8 6.2 7.9
Eggs,
fish,meat
2.9 3.7 2.1 3.1
Edible oil 4.8 3.9 1.5 3.1
Beverages 5.1 5.4 7.1 5.7
Other FMCG 4.8 4.9 3.4 4.4
Pan &
Intoxicants
2.2 2.3 0.9 1.7
FOOD 64.9 59.9 33.2 50.8
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How India Spends2009-10 (NSS)Expenditure Bottom
(10%)
Middle(40-
50%)
Top (10%) All India
Durables 2.3 2.7 9.8 4.8
Entertainment 0.3 1 1.5 1.2
Fuel & Light 11.9 10.2 5.5 8.5
Clothing 7 6.3 4.6 5.7Education 1.7 3.1 12.2 6.1
Health 3 4.6 7.4 5.7
Conveyance 1.4 3.2 7.7 4.9
Consumer
Service
3.1 4.5 8 5.6
Others 4.4 4.6 9.9 6.6
Non Food
Total
35.1 40.2 66.6 49.2
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Some key sources of data
NCAER
Indian Readership Survey
Ministries McKinsey Global Institutes study on The
Rise of Indias Consumer Market
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Copyright 2009Dorling Kindersley
What Influences
Consumer Behavior?
Cultural Factors
Social Factors
Personal Factors
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According to Hofstede (1980),culture is
the collective programming of the mind
which distinguishes the members of one
human group from another.Culture determines the identity of a
human group. Hofstede distinguishes
values as individual and cultures associeties.
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Culture
Power Distance
Individualism & Collectivism
Masculinity & Feminity Uncertainity
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Copyright 2009Dorling Kindersley
What is Culture?
Culture is the fundamental determinant of
a persons wants and behaviors acquired
through socialization processes with family
and other key institutions.
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Cultural Factors
Did culture influence consumer behavior of
your product:
Sub culture : race, geography, religion,
nationality.
Social Class : Education & Occupation
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Socio economic Classification
Urban : Occupation & Education ( SEC A,
B,C & D )
Rural : Type of House ( pucca, semi-pucca
and kucha ) and education ( R 1, R2 etc )
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Socioeconomic Classification (SEC) MatrixIndia (Urban)
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The rural area is segregated in to: R1,
R2, R3, R4.
Education of chief
wage earner
Type of House
Pucca Semi-pucca Kuchcha
Professional
degree
R1 R2 R3
Graduation/ PG R1 R2 R3
College R1 R2 R3SSC/HSC R2 R3 R3
Class 4-Class 9 R3 R3 R4
Up to class 4 R3 R3 R4
Self-learning R3 R4 R4
Illiterate R4 R4 R4
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No of HHs ( % of HH) in each segment
Urban
A1:1
A2: 1.9
B1: 2.5B2: 2.6
C: 6.2
D: 7.0
E1: 3.2
E2: 5.4
Sub-Total : 28.8
Rural
R1: 2.7
R2: 7.6
R3: 26.9
R4: 33.0
Sub-Total : 70.2
Source : Marketing Whitebook
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Copyright 2009Dorling Kindersley
Characteristics of Social Classes
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 over time
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Social Factors
Identify the following of your consumer:
Membership groups
Primary groups
Secondary groups
Aspirational groups
Dissociative groups
Opinion Leaders
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Copyright 2009Dorling Kindersley
What other Social Factors influenced your
products consumer behavior?
Reference
groups
Socialroles
Statuses
Family
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Copyright 2009Dorling Kindersley
Roles and Status
What degree of status is
associated with various
occupational roles?
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Copyright 2009Dorling Kindersley
Personal Factors
Age
Values
Life cycle
stage
Occupation
Personality
Self-
concept
Wealth
Lifestyle
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Copyright 2009Dorling Kindersley
The Family Life Cycle
Group #5:
Explain your
study in this
context.
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Copyright 2009Dorling Kindersley
Lifestyle Influences
Multi-tasking
Time-starved
Money-constrained
Group #7:
What was the lifestyle of your consumer?
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Copyright 2009Dorling Kindersley
Faysal Bank of
Pakistan has
extended bankinghours for time-
pressed executives.
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Copyright 2009Dorling Kindersley
LOHAS (Lifestyles of Health and
Sustainability) Market Segments
Sustainable Economy
Healthy Lifestyles
Ecological Lifestyles Alternative Health Care
Personal Development
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Copyright 2009Dorling Kindersley
Model of Consumer Behavior
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Copyright 2009Dorling Kindersley
Key Psychological Processes
Motivation
MemoryLearning
Perception
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Copyright 2009Dorling Kindersley
Motivation
Freuds
Theory
Behavior
is guided by
subconscious
motivations
Maslows
Hierarchy
of Needs
Behavior
is driven by
the lowest,
unmet need
Herzbergs
Two-Factor
Theory
Behavior is
guided by
motivating
and hygiene
factors
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Copyright 2009Dorling Kindersley
Maslows Hierarchy of Needs
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Copyright 2009Dorling Kindersley
Herzbergs Two-Factor Theory
Absence of dissatisfiers not enough. Satisfiers must be present.
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Herzbergs theory
Herzbergs theory has two implications. First,
sellers should do their best to avoid dissatisfiers
(for example, a poor training manual or a poor
service policy). Although these things will not sella product, they might easily unsell it. Second,
the seller should identify the major satisfiers or
motivators of purchase in the market and then
supply them. These satisfiers will make themajor difference as to which brand the customer
buys.
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Copyright 2009Dorling Kindersley
Perception
Selective Attention
Subliminal Perception
Selective Retention
Selective Distortion
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Copyright 2009Dorling Kindersley
State Farm Mental Map
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Copyright 2009Dorling Kindersley
Mental Accounting
Consumers tend to
Segregate gains
Integrate losses Integrate smaller losses with larger gains
Segregate small gains from large losses
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Copyright 2009Dorling Kindersley
Consumer Buying Process
Problem Recognition
Information Search
Evaluation
Purchase Decision
Postpurchase
Behavior
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Problem Recognition
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Copyright 2009
Dorling Kindersley
Sources of Information
Personal
ExperientialPublic
Commercial
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Copyright 2009
Dorling Kindersley
Figure 6.5 Successive Sets Involved in
Consumer Decision Making
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Copyright 2009
Dorling Kindersley
Rural Consumer Behaviour
Rural consumers are more brand loyal
Restrictions on consumption
Collective consumption behaviour: for
family rather than individual Seasonality of consumption based on
seasonality of agricultural
production/income Specific patterns in the five-stage buying
decision process
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Other Theories of
Consumer Decision Making
Involvement Elaboration likelihood
model
Low-involvement marketing
strategies
Variety-seeking buying
behavior
Decision Heuristics (
non rational) Availability quickness & ease
Representativeness ie how
similar is the outcome
Anchoring and adjustment .
First impressions are lastingimpressions.