Consumer behaviour Intro

7/17/2019 Consumer behaviour Intro

http://slidepdf.com/reader/full/consumer-behaviour-intro-568efb4e3bce7 1/31

Consumer Buying Behavior

Consumer buying behavior refers to the buying

behavior of final consumers – individuals &

households who buy goods and services for

personal consumption

The central question for marketers is: ““How doHow do

consumers respond to various marketingconsumers respond to various marketing

efforts the company might use?”efforts the company might use?”

Consumer Buying Behavior



Five Premises of Consumer Behavior

Consumer behavior is purposeful and

goal oriented

The consumer has free choice

Consumer behavior is a process

Consumer behavior can be influenced

There is a need for consumer education



A Model of Consumer Behavior



Personal Characteristics

Affecting Consumer Behavior

Cultural Factors

Social Factors

Personal Factors

Psychological Factors



Factors nfluencing Consumer

Behavior



implified !odel

Marketing

Stimuli

TargetAudience

ResponseBlack Box



SITUATIONALSITUATIONAL

INFLUENES INFLUENES

• !"#sical and!"#sical and

• Social SurroundingsSocial Surroundings• TimeTime• !urc"ase Use!urc"ase Use• Bu#er$s onditionBu#er$s ondition

SOIALSOIALINFLUENES INFLUENES

• RolesRoles

• Famil#Famil#• Re%erence &roupsRe%erence &roups

Social lasses Social lasses• ultureulture

!S'(OLO&IAL!S'(OLO&IAL INFLUENESINFLUENES

• !erception!erception• Moti)esMoti)es

• LearningLearning• AttitudesAttitudes• !ersonalit#!ersonalit#

onsumer *ecision !rocessonsumer *ecision !rocess

!a"or #nfluences in the Consumer$s

“Black Bo%

'roblem

(ecognition 'ost'urchase



omplete model o% consumer +e"a)ior

Stimuli,marketer

dominated-

ot"er.

External

searc"

Memor#

Internal

searc"

Exposure

Attention

ompre"ension

Acceptance

Retention

Searc"

Needrecognition

Alternati)e

e)aluation

!urc"ase

Outcomes

*issatis%action Satis%action

Indi)idual

di%%erences• resources• moti)ation /

in)ol)ement• kno0ledge• attitudes• personalit#-

)alues- li%est#le

In%luences• culture• social class• %amil#

• situation

Start



)eed (ecognition

!re%erred State

Marketing "elps

consumers recogni1e

,or create. an im+alance

+et0een present statusand pre%erred state

• 2"en a current product isn$t

per%orming properl#

• 2"en t"e consumer is runningout o% an product

• 2"en anot"er product seems

superior to t"e one currentl# used



• T"ink o% a recent important purc"ase3 +rie%l# dra0 a

%lo0c"art o% t"e steps #ou recall mo)ing t"roug" %rom

t"e a0areness o% need to post purc"ase

• 2"at in%luenced #ou at eac" step4



Consumer *ecision+!aking

'rocess

!ostpurc"ase Be"a)ior

!ostpurc"ase Be"a)ior

!urc"ase!urc"ase

E)aluationo% Alternati)es

E)aluationo% Alternati)es

In%ormation Searc"In%ormation Searc"

Need RecognitionNeed Recognition

ultural- Social-ultural- Social-Indi)idual andIndi)idual and!s#c"ological!s#c"ological

FactorsFactors

a%%ecta%%ectall stepsall steps

ultural- Social-ultural- Social-Indi)idual andIndi)idual and!s#c"ological!s#c"ological

FactorsFactorsa%%ecta%%ect

all stepsall steps



• (o0 do #ou kno0 0"en to s"op4 2"at are t"e

triggers t"at initiate an a0areness / searc"4

• 2"at are t"e internal / external sources o% t"ese

triggers4



T"e in%ormation searc" stage

An internal searc" in)ol)es t"e

scanning o% one5s memor# to recall pre)ious

experiences or kno0ledge concerning

solutions to t"e pro+lem66 o%ten su%%icient %or

%re7uentl# purc"ased products8

An external searc" ma# +e necessar#

0"en past experience or kno0ledge is

insu%%icient- t"e risk o% making a 0rong

purc"ase decision is "ig"- and9or t"e cost o%

gat"ering in%ormation is lo08

!ersonal sources

,%riends and %amil#.

!u+lic sources ,rating

ser)ices like onsumer

Reports.

Marketer6dominated

sources ,ad)ertisingor sales people.

T"e e)oked set: a group o%

+rands %rom 0"ic" t"e +u#er can

c"oose



• go +ack to #our past purc"ase3 0"at 0ere t"e

speci%ic internal and external sources o%

in%ormation t"at in%luenced #our decision4

• "o0 do #ou determine ,and rate. t"e credi+ilit# o%

t"ese sources4

• 0"at speci%ic in%ormation in%luenced #ou4



*eterminants of ,%ternal earch



Bu#er Be"a)ior

• Initiator : t"e person 0"o %irst suggests or t"inks o% t"e idea o% +u#ing a

particular product or ser)ice8

• In%luencer : a person 0"ose )ie0s or ad)ice carr# 0eig"t in making t"e%inal +u#ing decision

• *ecider : t"e person 0"o ultimatel# makes t"e %inal +u#ing decision or an#

part o% it

• Bu#er : t"e person 0"o makes t"e actual purc"ase

• User : t"e person 0"o consumes t"e product or ser)ice

Ot"er people o%ten in%luence a consumers purc"ase decision8

T"e marketer needs to kno0 0"ic" people are in)ol)ed in t"e

+u#ing decision and 0"at role eac" person pla#s- so t"atmarketing strategies can also +e aimed at t"ese people8

,;otler et al- <==>.8

Note: teens are increasingl# assuming more o% t"ese roles

T"ink a+out #our past purc"ase3 0"o 0as in 0"ic" role4



onsumer decision making

)aries 0it" t"e le)el o% in)ol)ement in t"e

purc"asing decision

• Extensi)e: pro+lem sol)ing occurs 0"en

+u#ers purc"ase more expensi)e- less

%re7uentl# purc"ased products in an

un%amiliar product categor# re7uiringin%ormation searc" / e)aluation? ma#

experience cogniti)e dissonance8

•

Limited: pro+lem sol)ing occurs 0"en +u#ers are

con%ronted 0it" an un%amiliar +rand in a %amiliar product

categor#

• Routine: response +e"a)ior occurs

0"en +u#ers purc"ase lo0 cost- lo0 risk- +rand lo#al-

%re7uentl# purc"ased- lo0 personal identi%ication or

rele)ance- items 0it" 0"ic" t"e# are %amiliar8

Increase in

onsumer

e)aluationprocesses



• 7uickl# list <@ items #ou "a)e purc"ased in t"e past

mont"

• reexamine "o0 long it took #ou to make a decision

on eac"

• 0"# did suc" a di%%erence in decision occur4



Factors a%%ecting

onsumer in)ol)ement

• !re)ious experience: lo0 le)el in)ol)ement

• Interest: "ig" in)ol)ement

• !ercei)ed risk o% negati)e conse7uences: "ig" in)ol)ement

• Situation: lo0 to "ig" due to risk

• Social )isi+ilit#: in)ol)ement increases 0it" product )isi+ilit#

• O%%er extensi)e in%ormation on "ig" in)ol)ement products• In6store promotion / placement is important %or lo0 in)ol)ement products• Linking lo06in)ol)ement product to "ig"6in)ol)ement issue can increase sales

So



T#pes o% consumer in)ol)ement

and decision making

Routine Limited Extensi)e

In)ol)ement S"ort Lo0 to

moderate

(ig"

Time Lo0 S"ort tomoderate

Long

ost S"ort Lo0 tomoderate

(ig"

In%ormationSearc"

Internal onl# Mostl#internal

Internal /external

Num+er o%alternati)es

one %e0 man#



• t"ink o% an important purc"asing decision

#ou "a)e made

• 0"at are some o% t"e t"oug"ts #ou "a)e "ad%ollo0ing #our purc"ase4 An# regrets4

• 0"at "as in%luenced t"ose t"oug"ts4

• "o0 "a)e #ou dealt 0it" t"e discom%ort4

• "o0 "as t"e compan# anticipated or dealt 0it"

#our discom%ort4



'ostpurchase Behavior

Can minimize through:E%%ecti)e ommunication

Follo06up&uarantees2arranties

Underpromise /o)erdeli)er

ogniti)e *issonanceogniti)e *issonance

4*id I make a good decision4*id I make a good decision4

*id I +u# t"e rig"t product4*id I +u# t"e rig"t product4

*id I get a good )alue4*id I get a good )alue4



ogniti)e *issonance

• ps#c"ological discom%ort caused +# inconsistencies

among a person$s +elie%s- attitudes- and actions

• )aries in intensit# +ased on importance o% issue and

degree o% inconsistenc#

• induces a dri)e stateC to a)oid or reduce dissonance

+# c"anging +elie%s- attitudes- or +e"a)iors andt"ere+# restore consistenc#

Tendenc# to a)oid in%ormation can +e countered +# eliciting interest-

norm o% %airness- or percei)e use%ulness o% in%ormation

!ost6decision +u#er$s remorseC ma# +e increased +# importance or di%%icult#

or irre)ersi+ilit# o% decision

ounter6attitudinal action- %reel# c"osen 0it" little incenti)e or

Dusti%ication- leads to attitude c"ange ,e8g8- ne0 product at special lo0

price.

Applications:



• t"ink o% an inno)ation in #our %ield

• descri+e di%%erent groups o% emplo#ees in #our

organi1ation 0"o 0ould respond earl# and

%a)ora+l#- as 0ell as later and un%a)ora+l#

• 0"at are t"e di%%erences +et0een t"ese groups4

• "o0 could #ou use t"is in%ormation to market t"e

inno)ation to t"em more e%%ecti)el#4



• Identi%# an inno)ation in #our organi1ation or an

organi1ation #ou are %amiliar 0it"

• Identi%# t"e su+groups 0"o responded to t"e

inno)ation using t"e Rogers / S"oemaker

stake"older model

• 2"at could "a)e +een done to %acilitate

acceptance +# eac" o% t"ese groups4



Ela+oration Likeli"ood Met"od ,ELM. o% persuasion



Persuasive Communication

Nature of Active Cognitive Processing: (initial

attitude, argument quality, etc!

Favora"le

#houghts

Predominate

$nfavora"le

#houghts

Predominate

Neither or

Neutral

Predominate

Cognitive Structure Change: Are ne% cognitions

ado&ted and stored in memory' Are different

res&onses made salient than &reviously'

• &ersonal relevance• &ersonal im&ortance

• &ersonal res&onsi"ility

otivated to Process'

• dissonance arousal• need for cognition

• re&etition

• cognitive com&le)ity• critical thin*ing• distraction free• lo% arousal

A"ility to Process'

• a&&ro&riate schema• message &ace• re&etition• issue familiarity

+nduring &ositive

attitude change

(&ersuasion!

+nduring negative

attitude change

("oomerang!

• greater &ersistence• resistant to counterattac*s fading• &redictive of "ehavior • - "rand memory• - ela"oration• -usage intention• - attitude accessi"ility

• - attitude confidence• - attitude."ehavior consistency

Peri&heral Cues Present'• reci&rocity (o"ligated, did a favor!• consistency (%ay it/s done, similar to "efore!• social &roof (&eer &ressure, conformity!• li*ing (attractiveness, friendliness!• cele"rity (identification, &restige!• authority (e)&ertise, e)&erience, credi"ility!

• ra&id s&eech, forceful &resentation, charismatic style• scarcity (limited time offer!• tangi"le re%ards• a&&ealing visuals music (emotional arousal!• fear a&&eal• %ea* counter.arguments

Attitude Shift:• short.lived• susce&ti"le to influence• un&redicta"le

0etain or 0egain

1nitial Attitude

Ela+oration Likeli"ood Met"od ,ELM. o% persuasion

Items > K = < <J and <K are re)erse scored



2rite in t"e num+er t"at +est %its #our )ie0:

< >

completel# mostl# mostl# completel#

%alse %alse true true

GGGGG<8 I 0ould pre%er complex to simple pro+lems8

GGGGG8 I like to "a)e t"e responsi+ilit# o% "andling a situation t"at re7uires a lot o% t"inking8 GGGGG8 T"inking is not m# idea o% %un8 H

GGGGG>8 I 0ould rat"er do somet"ing t"at re7uires little t"oug"t t"an somet"ing t"at is sure to

c"allenge m# t"inking a+ilities8 H

GGGGG8 I tr# to anticipate and a)oid situations 0"ere t"ere is likel# c"ance I 0ill "a)e to t"ink

in dept" a+out somet"ing8 H

GGGGGJ8 I %ind satis%action in deli+erating "ard and %or long "ours8

GGGGGK8 I onl# t"ink as "ard as I "a)e to8 H GGGGG8 I pre%er to t"ink a+out small- dail# proDects to long6term ones8 H

GGGGG=8 I like tasks t"at re7uire little t"oug"t once I$)e learned t"em8 H

GGGGG<@8 T"e idea o% rel#ing on t"oug"t to make m# 0a# to t"e top appeals to me8

GGGGG<<8 I reall# enDo# a task t"at in)ol)es coming up 0it" ne0 solutions to pro+lems8

GGGGG<8 Learning ne0 0a#s to t"ink doesn$t excite me )er# muc"8 H

GGGGG<8 I pre%er m# li%e to +e %illed 0it" pu11les t"at I must sol)e8 GGGGG<>8 T"e notion o% t"inking a+stractl# is appealing to me8

GGGGG<8 I 0ould pre%er a task t"at is intellectual- di%%icult- and important to one t"at is some0"at

important +ut does not re7uire muc" t"oug"t8

GGGGG<J8 I %eel relie% rat"er t"an satis%action a%ter completing a task t"at re7uired a lot o% mental

e%%ort8 H

GGGGG<K8 It$s enoug" %or me t"at somet"ing gets t"e Do+ done? I don$t care "o0 or 0"# it 0orks8 H

<8 I usuall# end up deli+erating a+out issues e)en 0"en t"e# do not a%%ect me personall#8

Need %or

ognition Scale

Items - >- - K- - =- <- <J- and <K are re)erse scored

Consumer behaviour Intro

Documents

Transcript of Consumer behaviour Intro