Consumer Behaviour

Deepak Sonpar dsonpar@gmail.com

5 February 2012

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All managers must become astute analysts of consumer motivation and behaviour Three foundations for marketing decisions
– Experience – Intuition – Research

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Consumer?
A person who identifies a need or desire, makes a purchase, and then disposes of the product
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What is Consumer Behaviour? Behaviour consumers display for purchasing. evaluation and disposing of product/services. that they expect will satisfy their needs 5 February 2012 4 . using.

Consumer Behavior is a “Process” CONSUMER’S PERSPECTIVE PREPURCHASE ISSUES How does a consumer decide about needing a product? Is product acquisition a stressful or pleasant experience? MARKETER’S PERSPECTIVE How are consumer attitudes formed/changed? How do situational factors affect purchase decision? PURCHASE ISSUES POSTPURCHASE ISSUES 5 February 2012 Does product provide pleasure or perform function? How is product disposed of? What determines customer satisfaction and repurchase? 5 .

Why is it important to study CB? Knowledge and data about customers – Help to define the market – Identify threats/opportunities to a brand – Help segment the market • Demographic • Psychographic 5 February 2012 1-6 .

but for what they mean – Brands… • …Convey image/personality • …Define our place in modern society • …Help us to form bonds with others who share similar preferences 5 February 2012 1-7 .The meaning of Consumption • People often buy products not for what they do.

CB draws from many disciplines MICRO CONSUMER BEHAVIOR (INDIVIDUAL FOCUS) Exp Psych Clinic Psych Develop Psych Human Ecology Microeconomics Social Psych Sociology Macroeconomics Semiotics/Literary Criticism Demography History Cultural Anthropology 1-8 MACRO CONS BEHAV (SOCIAL FOCUS) 5 February 2012 .

Wheel of Consumer Behavior Figure 1.3 5 February 2012 1-9 .

Perception The process by which an individual selects. organizes.How we see the world around us 5 February 2012 10 . and interprets stimuli into a meaningful and coherent picture of the world .

html 11 .Perception and Priorities .5 Mn – Sold out ($100) a day earlier 5 February 2012 http://www.washingtonpost.Washington Post • A rugged musician plays violin at Kennedy square • Earns a few dollars and brief span of attention from a young lady and a kid • Few perceive that beauty can be found at a subway station Joshua Bell • Joshua Bell – Violin worth $3.com/wp-dyn/content/article/2007/04/04/AR2007040401721.

Sensation and Perception Adding meaning to raw sensations 5 February 2012 2-12 .

Vision • Color – Color provokes emotion – Reactions to color are biological & cultural 5 February 2012 2-13 .

Vision • Size – We tend to eat more: • When food container is larger • When our plate still contains food • When we see assortment of foods – We focus on height rather than width when pouring liquid into a glass 5 February 2012 2-14 .

and/or a mood – Smell of coffee reminds one of its taste 5 February 2012 2-15 .Smell • Odours = mood & memory – Odour recalls a memory.

Hearing • Many aspects of sound affect people’s feelings and behaviour 5 February 2012 2-16 .

Touch • Senses affect product experience & judgment • Fabric textures and surfaces with products & packaging Perception High Class Low Class Male Wool Denim Heavy Female Silk Cotton Light Coarse Fine 5 February 2012 2-17 .

Taste • Cultural changes determine desirable tastes 5 February 2012 2-18 .

ignore. or completely miss stimuli 5 February 2012 2-19 .Exposure • A stimulus comes within range of someone’s sensory receptors – We can concentrate.

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Selectivity • Selective Attention • Selective Retention 5 February 2012 21 .

Semiotics • Correspondence between signs and symbols and their role in the assignment of meaning • Consumer products = social identities – Advertising as culture/consumption dictionary 5 February 2012 2-22 .

Semiotic Relationships Object (Product) Marlboro Cigarettes Cowboy Rugged American Sign (Image) 5 February 2012 Interpret (Meaning) 2-23 .

Use of Perception in Marketing 5 February 2012 24 .

Perceptual Positioning • Brand perceptions = functional attributes + symbolic attributes • Perceptual map – Company’s own strengths and weaknesses in comparison with competitors 5 February 2012 2-25 .

Perceptual Map 5 February 2012 2-26 .

product class. users. and quality 5 February 2012 2-27 . occasions. price leadership. competitors.Positioning Strategy • Marketing mix elements influence the consumer’s interpretation of brand’s meaning • Brand’s position as a function of: – Lifestyle. attributes.

the higher the perceived quality of the product)..g.Price/Quality Relationship The perception of price as an indicator of product quality (e. 5 February 2012 28 . the higher the price.

and Store Name on Perceived Value Objectiv e Price + Perceived Quality Perception of Price + Perceived Sacrifice + Perceived Value - + - Willingness to Buy 5 February 2012 A. Brand Name. Conceptual Relationship of Price Effect 29 .Conceptual Model of the Effects of Price.

Extended Conceptualization to Include Brand Name and Store Name 5 February 2012 + Perceived Value - + - Willingness to Buy 30 .Brand Name Store Name Objectiv e Price Perception of Brand Perception of Store + + Perceived Quality Perception of Price + Perceived Sacrifice + B.

John Wiley. and Kanuk. New Jersey. • George Katona and Eva Mueller "A Study of Purchase Decision Behaviour" in Lincoln Clark Ed. L. 5 February 2012 31 . Pergamon Press. New York..Bibliography • Schiffman. 1969. 9th edition.Sheth "The Theory of Buyer Behaviour". • John A. Prentice Hall. Howard and Jagdish N. Dynamics of Consumer Decision. L.. 1972.. 2007 Consumer Behavior.

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