CONSUMER BEHAVIOUR

By- A

bhiji

th R

.

i)Need RecognitionDesire….??

External & internal factors

ii)Information searchSEARCH:-Purposeful attention devoted to gathering of information related to the satisfaction of some particular perceived need.Family,Friends,Neighbours,Opinion leaders

BUYING PROCESS

Print media,TV ,Internet & Radio

iii)Evaluation of AlternativesCritical Stage in Buying1)A product is a bundle of attributes2)Information cues about product characteristics, Brand image & brand concept3)More critical attributes to reduce the number of alternatives4)Evaluation process

iv)Purchase decision•Like & dislike about alternative brands which influence the intension to buy•Situational factors like dealers terms, falling price etc are considered•Perceived risk also influences

v)Post purchase experience & Behaviour

Feedback after brand purchase & product useCognitive dissonance: If purchased brand doesn’t yield the desired satisfaction ,negative feelings occur & creates anxiety, doubtsPost purchase dissonance: The consumer is experiencing a doubt whether the decision was corrector notCreating realistic expectations, product design keepingConsumer lifestyle in mind, providing means for communicating With the company, the customer deserved to be thanked ..to

avoid PPD

PERCEIVED RISK

Uncertainty faced by the consumers when they cannot assess the post purchase consequences before purchasing the product or service

1. Financial Risk2. Functional Risk3. Physical Risk4. Psychological Risk5. Social Risk6. Time Risk

Family life cycleChild or teenager

Young single

Young couple

Full nest

Empty nest

Widow(er)

NEW URBAN FAMILY

• When individual tastes diverged sharply from one another & are backed by sufficient spending power

• Family focused brands are placing Ad’s so that the context of consumption for NUF is

communicatedNestle Maggi,Asian paints, Surf excel Ad’s

Industrial Consumer Behavior•Features•Purchasing agents/Professional agents•Large volumes•Price breaks•Self use/ Resale•Small target group•Derived demand•More decision makers•Branding less

Differences between Indv. CB & Indus. CB

Subjective/Objective*Formalities*roles involved*mktg mixSP, Ad& Distribution Vs Personal Sales, design, service/price

Kinds of customersTransactional( price sensitive)*consultation requiring*collaborative (leads to continuous improvement)

Industrial Buying Process•ESPPC factors*Consumer behaviour imp. Variable•Stages• Initiation Stage-New buy situation• Search Stage:in-supplier/out supplier• Feedback Stage

Buying Centre

• Decider*initiator*influencer*user*purchaser*gatekeeper

• Basic aspects– Composition, Influences vary with category– Dynamic– Role of the Informal

• Buying Situations– New-buy/Straight re buy/modified re buy

MARKETING RESEARCH

• Why– Relationships*adherence to rule*shareholder

expectations*public appreciation• Info is Crucial!• Research topics in Marketing– Consumer Behaviour*Product positioning/devlpmt/life cycle– Branding– Mkt segmentation– Advertising, SP– Sales/distribution

Marketing Research process

• Problem Identification/ Formulation – (Problem well stated is half solved)

• Evaluation of Alternatives– Eg. The case of turn over of employees– Ways of analysis

• Discuss with experts*Literature survey• Primary research-direct mails/phone/personal interview

• Hypothesis– Predictive statement which is clear, testable, showing

relations, specific, simple, with time allotted.(H0&Ha)

Research Design

• Sampling Design, Observation Design, Statistical Design, Operational Design.

Sampling design– How many?, In what manner?

• Probability/Non Probability Sampling• Raw data Processing– Editing*Coding*Classification*Tabulation

Marketing research analysis

• Tools like SPSS, SSP• Multiple regression analysis• Regression analysis• Conjoint analysis( To decide on trade off’s)• Cluster Analysis• Factor analysis– Co-relation Matrix, Identify patterns

• Discriminant Analysis• Correspondence Analysis

MARKETING RESEARCH METHODS

The Major concepts in demand measurement are MARKET DEMAND

• Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined period of time in a defined marketing environment under a defined marketing programme….

COMPANY DEMAND• Company demand is the company’s estimated share of market demand at

alternative levels of company’s marketing effort . One major reason for undertaking marketing research is to identify the market opportunities .Once the research is complete, the company must measure and forecast the size, growth and profit potential of each market opportunity

NEW PRODUCT LAUNCH RESEARCH

A Marketer to ensure product success uses the following guidelines :-1, Distinguish the product from the competition in a consumer relevant way

2,Capitalise on key corporate competencies and brand strength

3,Develop and market product to people’s needs and habits

4,market to long-term trends

5,Not to ignore research, and not be paralyzed by it

6,Make sure the timing is right

7,Be a marketing leader and not a distant follower

8,offer a real value to customers

9,Determine a short-term product and long-term sales potential

10,Gain legitimacy and momentum for the brand

11,Give the trade as good a deal as the customer

12,Clearly define,understand,and talk to your target

13,Develop n communicate a distinctive n appealing brand character n stick to it

14,Spend competitively n efficiently ,behind a relevant proposition

15,make sure the consumer is satisfied n stays that way

ADVERTISING RESEARCHAdvertising research is a subset of marketing research.it systematically gather n analyses information to help develop or evaluate advertising strategies , individual advertisements, or whole advertising campaigns . Advertiser needs to know how consumer perceive its products or service , what their views about the competition are and what image of the brand or the company would be most appropriate to build

Advertising research is required to serve a number of purposes, which are grouped into four categories : Advertising strategy research Creative concept research Pre-testing of advertisement Post-testing

ADVERTISING STRATEGY RESEARCHThe strategy is developed by carefully blending the elements of the creative mix . The mix elements are :

1,Product n its

positioning

2,Target audience

3,Communication media

5,Pre-testing n post-testing

4,creative concept

CUSTOMER SATISFACTION RESEARCH

Customer satisfaction research is that area of marketing research which focuses on customers' perceptions with their shopping or purchase experience.

Many firms are interested in understanding what their customers thought about their shopping or purchase experience, because finding new customers is generally more costly and difficult than servicing existing or repeat customers.

METHODS

TYPE

1,Quantitative Research Studies

2,Qualitative Research Studies

1,Descriptive or documentary research

2,Inferential or models-based research

RETAIL STORES IMAGE RESEARCHThe concept of store image was used by Martineau(1958) for the first time. He defined it as “a store defined in customers’ mind partly based on functional attributes and partly based on psychological attributes.” He claimed that store image includes its characteristic attributes and it makes customers feel the store different from others. Functional attributes are assortment of commodities, layout, location, price-value relation, and service that consumers can objectively compare with other stores. Psychological attributes are attractiveness and luxuriousness that represent special attributes of that store.

Researchers have studied a multitude of retailer attributes that influence the overall image eg :-

The variety n quality of product, service, n brands sold, the physical store appearance, behavior n service quality of employees , the price level, depth n frequency of promotions…

DISTRIBUTION RESEARCHThe study has been now divided into supply chain research n also on logistics research. In the case of supply chain, following are included for research1,Alignment of market with the supply 10,Supply chain risk

2,linking demand chain and firm performance 11,Supply chain stategy

3,outsourcing 12,Service supply chains

4,Reverse logistics 13,Stock loss

5,supply chain agility

6,supply chain collaboration

8,supply chain information systems

9,supply chain risk and resilience

COMPETITOR ANALYSIS RESEARCH

The competitive intelligence is the legal n ethical process of collecting n analyzing information,converting it into intelligence n then using it to determine the capabilities,vulunerabilities,n intentions of the competition. There are 3 level @ which the research is undertaken

1, Feature level

2,Solution level

3,Hidden competition

PREPARATION OF MARKETING RESEARCH REPORTThe result of marketing is effectively communicated to the management .Presenting the result of a marketing result study to mgmt. generally involves a formal written reports as well as an oral presentation . The report n presentation are extremely important`.

FIRST , bcoz the result of marketing research are often intangible n the written report is usually the only documentation of the project.

SECOND, the written report n oral presentation are typically the only aspect of the study and the consequently the overall evalution of the research project rests on how well this info is communicated .

THIRD, Since the written research report and the oral presentation are typically the responsibility of the supplier .

UNDERSTAND THE RESULT AND DRAW CONCLUSIONS

The following outline is the suggested format for writing research report :-• TITLE PAGE • SUMMARY OF FINDING • TABLE OF CONTENTS • LIST OF TABLES• LIST OF FIGURES

• BACKGROUND TO THE RESEARCH PROBLEM • OBJECTIVES• HYPOTHESES

• SAMPLE N SAMPLING METHOD • STATISTICAL OR QUALITATIVE METHODS • SAMPLE DESCRIPITION

• RESULTS , INTERPRETATION AND CONCLUSION

INTRODUCTION

METHODOLOGY – DATA COLLECTION

FINDINGS

THANK YOU