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Marketing Management Chapter 08

Marketing Management Chapter 08

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Marketing Management Text and Cases Consumer Behaviour - Personal and Organisational

8
8-1 8-1

Chapter

Consumer Behaviour Personal and Organisational
© SHH Kazmi, 2007

Marketing Management Text and Cases, S H H Kazmi

Excel Books Excel Books

Consumer Behaviour - Personal and Organisational

³Consumer behaviour refers to the mental and emotional processes and the observable behaviour of consumers during searching, purchasing, and post consumption of a product or service.´ Satish K. Batra and S. H. H. Kazmi, µConsumer Behaviour¶, Excel Books, 2004.

© SHH Kazmi, 2007

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Consumer Behaviour - Personal and Organisational

Social Factors Culture and Subculture Roles and Family Social Class Reference Groups

Psychological Factors Motivation Perception Learning Attitudes Personality

Personal Factors Demographic Factors Lifestyle Situational factors Involvement Level

Consumer Decision-Making Process Problem Recognition Information Search Alternatives¶ Evaluation Purchase Action Postpurchase Actions

Various Factors Influencing Consumer Behaviour

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Consumer Behaviour - Personal and Organisational

Social Factors
Social factors refer to forces that other people exert and which affect consumers¶ purchase behaviour. These include culture and subculture, roles and family, social class, and reference groups.

© SHH Kazmi, 2007

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Consumer Behaviour - Personal and Organisational

Culture and Subculture
Culture influences consumers through the norms and values established by the society in which they live. Subcultures exist within a given dominant culture.

© SHH Kazmi, 2007

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Consumer Behaviour - Personal and Organisational

Roles and Family

Initiator (Need recognition)

Gatekeeper (Information search)

Influencer (Evaluation of alternatives)

Decisionmaker (Decision to buy)

Buyer (Purchase)

User (Consumption) & evaluation

Joint Decision-Making Process

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Consumer Behaviour - Personal and Organisational

Social Class
µSocial class defines the ranking of people in a society into a hierarchy of distinct status classes; upper, middle and lower, so that the members of each class have relatively the same status based on their power and prestige.¶

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Consumer Behaviour - Personal and Organisational

Reference Groups
A reference group refers to a group of people with whom an individual identifies herself/himself and the extent to which that person assumes many values, attitudes, or behaviours of group members.

© SHH Kazmi, 2007

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Consumer Behaviour - Personal and Organisational

Psychological Factors
Psychological factors are internal to an individual and generate forces within that influence her/his purchase behaviour. The major forces include motives, perception, learning, attitude, and personality.

© SHH Kazmi, 2007

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Consumer Behaviour - Personal and Organisational

Motivation
This refers to driving forces within an individual produced by a state of tension caused by unfulfilled needs, wants, and desires.
Learning

Unfulfilled Needs, Wants and Desires

Felt Tension

Drive

Appropriate Behaviour Cognitive Processes

Goal or Need Fulfilment

Tension Reduction

Motivation Process
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Consumer Behaviour - Personal and Organisational

Motivation Research
Some of the methods used to probe the subconscious mind include:     In-depth interviews Projective techniques Association tests Focus group

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Consumer Behaviour - Personal and Organisational

Perception
Perception is the process by which an individual selects, organises, and interprets stimuli into a meaningful and coherent picture of the world. Perception includes three distinct processes:    Sensation Information selection Interpreting the information

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Consumer Behaviour - Personal and Organisational

Learning
Learning is viewed as a relatively permanent change in behaviour occurring as a result information or experience, both direct and indirect. There are two basic approaches to learning: (1) behavioural approach, and (2) cognitive learning approach.

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Consumer Behaviour - Personal and Organisational

Attitudes
³An attitude is an enduring organisation of motivational, emotional, perceptual, and cognitive processes with respect to some aspect of our environment.´

© SHH Kazmi, 2007

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Consumer Behaviour - Personal and Organisational

Personality
Personality refers to a dynamic concept that describes the growth and development of an individual¶s whole psychological system, which looks at some aggregate whole that is greater than the sum of the parts.

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Consumer Behaviour - Personal and Organisational

Marketers consider four main theories of personality as more relevant to their purpose and include (1) Self-concept theory: Self-concept describes the totality of an individual¶s thoughts and feelings having reference to herself/himself as an attitude object. (2) Psychoanalytic theory: Personality is the result of childhood conflicts between three fundamental components of personality: Id, Ego, and Superego. (3) Social-cultural theory: Social and cultural variables are more important than biological drives in the development of individual personality. (4) Trait theory: Personality is composed of a set of traits that are relatively stable and describe a general pattern of behaviour.
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Personal Factors
Personal factors include those aspects that are unique to a person and influence purchase behaviour. These include demographic factors, lifestyle, and situational factors.

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Consumer Behaviour - Personal and Organisational

Demographic Factors
Demographic factors include individual customers¶ age, gender, education, occupation, income, marital status, family size, etc. These characteristics affect the purchase and consumption behaviour of persons.

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Consumer Behaviour - Personal and Organisational

Lifestyle
Lifestyle is an indicator of how people live and express themselves on the basis of their activities, interests, and opinions.

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Consumer Behaviour - Personal and Organisational

Situational Factors
All those factors particular to a time and place that do not follow from a knowledge of personal (intra-individual) and stimulus (choice alternative) attributes and that have a demonstrable and systematic effect on current behaviour.

© SHH Kazmi, 2007

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Consumer Behaviour - Personal and Organisational

Involvement Level
Consumer involvement is considered as an important variable that can help explain how consumers process the information and how this information might influence their purchase or consumption related behaviour. There are several broad types of involvement related to the product, the message, or the perceiver.    Product involvement Advertising involvement Purchase situation involvement

© SHH Kazmi, 2007

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Consumer Behaviour - Personal and Organisational

Consumer Decision Processes
There are various types of consumer-decision processes.    Nominal decision-making Extended decision-making Limited decision-making

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Consumer Behaviour - Personal and Organisational

High

Level of involvement

Low Nominal Limited Extended

Types of Decision-making

Involvement Level and Types of Decision- Making
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Consumer Behaviour - Personal and Organisational

Consumer Decision-making Process
Consumer decision-making generally involves five stages:      Problem or need recognition, information search, alternatives evaluation, purchase, and post-purchase evaluation.

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Consumer Behaviour - Personal and Organisational

Need Recognition Nisha is fed up with her now obsolete computer with CRT monitor. She needs a 15´ laptop for easy mobility and comfort.

Stages in Consumer Decision Process

Information Search Nisha surfs the Internet to learn about laptops. Alternatives¶ Evaluation Nisha considers several brands in terms of reputation, features¶ service support, and price. Store Selection and Purchase

Post-purchase action

Nisha chooses one model of IBM laptop. It has features that appeal to her, dealer gives her Rs. 800 discount, and she buys it.

Dissonance and evaluation.
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Consumer Behaviour - Personal and Organisational

Organisational Consumer
³The decision-making process by which organisations establish the need for purchased products and services and identify, evaluate and choose among alternative brands and suppliers.´ Organisational buyer characteristics differ from final consumers in several important aspects.    Group-based Decision-making Technical Knowledge Rational Motives Dominate

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Consumer Behaviour - Personal and Organisational

Decision Approach and Purchase Patterns
Organisational purchases and buying patterns differ from final consumers in many ways.      Formality Negotiations Less Frequent Purchases Reciprocity Service

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Consumer Behaviour - Personal and Organisational

Types of Decision Situations 
  Straight Re-buy Modified Re-buy New Task

© SHH Kazmi, 2007

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Organisational Buyer Decision Process
The size of a decision-making unit (DMU) may vary according to how new, complex and important the purchase decision is; and how centralised, structured and specialised the organisation is.

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Consumer Behaviour - Personal and Organisational

Problem Recognition
The first stage of organisational buying decision involves recognising a need or problem.

Product Specification
Participants involved in the decision-making process assess the problem or need and determine what is required to resolve or satisfy it.

Product and Vendor Search
The organisation tries searching for possible products to solve the problem, and also to locate firms who may qualify to be suitable suppliers for those products.

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Consumer Behaviour - Personal and Organisational

Product and Vendor Evaluation
The buying centre makes an evaluation to determine which products meet the laid down specifications. Various vendors are also evaluated on criteria such as price, delivery, service, warranty, credit terms, etc.

© SHH Kazmi, 2007

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Consumer Behaviour - Personal and Organisational

Product and Vendor Selection
Information gathered during evaluation stage is used to select finally the product to be purchased, as well as the vendor from which the purchase will be made.

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Consumer Behaviour - Personal and Organisational

Performance Evaluation
The last stage in purchase decision process involves an evaluation of the product as well as vendor performance.

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