UNIT 1 INTRODUCTION TO CONSUMER BEHAVIOR
1. State the concept of consumer behavior.
Consumer Behaviour is the study of the following elements: • When • Why • How • Where The people do or do not buy a product.
2. What is the meaning of consumer behavior?
The term Consumer Behavior, individual buyer behavior, end user and consumer buying behavior all stands for the same.
It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it.
3. Define Consumer Behavior.
“Consumer Behavior is the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires.”
Belch and Belch
4. State the characteristics of consumer behavior.
• Brand Loyalty • Price Elasticity of Demand.
5. What are all the significance of consumer behavior.
The Study of Consumers’ Behavior is vital in framing production policies, price policies, decisions regarding channels of distribution and decisions regarding sales promotion. • Production Policies • Price Policies • Decision regarding channels of distribution • Decision regarding sales promotion • Exploiting Marketing Opportunities • Consumer do not always act or react Predictably • Consumer preference are changing and becoming Highly diversified. • Rapid Introduction of New Products • Implementing the “Marketing Concepts”
6. What are all the different dimensions of consumer behavior.
7.State the different factors affecting consumer behavior.
A Consumer’s buying behavior is influenced by cultural, social, personal, and psychological factors. It is classified into two as follows. 8. What are all the Internal Influences of CB? • Psychological factors => Motivation =>Perception =>Learning =>Beliefs and Attitude • Personal factors =>Age and Life Cycle Stage =>Occupation and Economic =>Circumstances =>Personality =>Life style
=>Self image 9. State the External Influences of CB. • Socio-cultural Influences =>Culture =>Subculture =>Cross-culture =>Social class =>Family =>Reference Group =>Roles and Status
10. Describe the buying habits of consumers.
Significant Difference between brands Complex behavior buying
Variety-seeking buying behavior
Few differences Dissonance-reducing between brands buying behavior
11. What are the application of knowledge of consumer behavior in marketing decisions?
Consumer behavior has a number of applications in the area of marketing as follows: • Analysing Market Opportunity • Selecting the Target Market
The following steps are involved in the Industrial buying process. =>It involves an automatic choice. as happens when the inventory level reaches a predetermined reorder point.
. • Problem Recognitions • General Needs Description • Product Specification • Supplier Search • Proposal Solicitation • Supplier Selection • Purchase Routine Selection • Post Purchase Evaluation
The Industrial buyers have a derived demand and a homogeneous mix as compared to consumer. divided on the geographical area and are more complex to deal with since there are more than one decision-maker involved. State the industrial buying process. Straight Re-buy: =>It is like making habitual purchase.• Determining the Marketing Mix • Use in Non-Profit and Social Marketing
12. 1. What do you mean by industrial buying behavior. What are all the different types of industrial buying?
The Purchase decision process in organizations is significantly influenced by the complexity and difficulty of a given purchase situation.
Decision frequently made by severely people. Individual purchasers often make quick decisions. Purchase made based on emotional responses to products or promotions. Purchase made based on rational criteria. Purchase usually made by ultimate user of the product. =>There is moderate level of uncertainty as the organization wants to repurchase a product or service but with some minor modifications.2. New Task: =>It involves extended decision-making as the decision is new because the item is being purchased for the first time to perform a new job or solves a new problem. Most purchases are low risk and low cost. Purchase frequently made on impulse.
15. 3. Buyers often geographically
Consumer Buying Purchases for individual or household consumption. Modified Re-buy: =>It involves limited decision-making. Purchases made after care weighing of alternatives. Purchasers often engage in lengthy decisions process.
Industrial Buying Purchase made for some purpose other than personal consumption. State the difference between industrial buying and consumer buying. Decisions usually made by individuals. Purchases made by someone other than the user of the product. Buyers generally dispersed throughout
. Purchase frequently involve high risk and high cost.
Promotion emphasizes advertising. Promotion emphasizes personal selling
total population. • They provide the framework for discussion and research work.
. • They help to understand complex relationships.concentrated in certain areas.
UNIT 2 CONSUMER BEHAVIOR MODELS 1. Models help us in the following ways: • They help in the development of theories. State the meaning of model. A model is very often referred to as an abstract representation of a process or relationship.
explanation and control of buying behavior. =>The following are the different models of consumer buying behavior : • Black Box Model • John Howard Model • Howard Sheth Model • Engel-Kollat-Blackwell Model • Nicosia Model
.What is Black Box Model? According to this model.response model of buyer behavior.Product offerings
Consumer Decision Process Purchase Behavior or No Purchase 2. the starting point for understanding buying behavior is the stimulus . State the various types of Individual Consumer Behavior Models =>The aim to provide a simplified portrayal of consumer processes to did our description. The following figure shows that marketing and other stimuli enter the consumer’s “black box” and produce certain responses.
the movement from EPS to RPS is a movement toward a state of “total understanding” of a brand.State the model of John Howard. what Howard calls the ABC’s of marketing (brand recognition. attitude. 4.
Extensive Problem Solving(EPS) – Decision stage
• Limited Problem Solving(LPS) – Growth stage
Routine Problem Solving(RPS) – Maturity stage
=>According to Howard. and believes and a variety of external environmental forces. constitutes for Howard the “brand image”.Buyers Buyers Characteristics Decision
Cultural Product choice Social Brand choice Personal Dealer choice Pshychological Purchase timing Purchase amount
Buyers Decision Process
Problem recognition Information search Evaluation of alternatives Purchase decision Post purchase
Black-Box model is behavior based on how a person’s behavior is influenced by the interactions of personal influences such as inner needs. Basic to the model is the view that consumers are in one of three different decisions corresponding to the first three stages of the product life cycle. and confidence).
. =>This total understanding. thoughts.
What are the various Elements of Howard’s Consumer Decision Model? • Information • Brand Recognition • Attitude • Confidence • Intention • Purchase
6. 7. Apart from these basic core steps. State the Howard Sheth Model in brief. perceptions. This model basically serves two purposes: It indicates how complex the whole question of consumer behavior really is. attitudes etc. This model is slightly complicated and shows that consumer behavior is a complex process and concepts of learning. It provides the framework for including various concepts like learning. perception and attitudes.. the model also includes a number of other related variables grouped into five categories: • Information input • Information processing
. What are the contents in Engel-Kollat-Blackwell Model? This model talks of consumer behavior as a decision making process in the form of five step(activities) which occur over a period of time.5. which play a role in influencing consumer behavior. influence consumer behavior.
Organizational buying is the decision-making process by which organizations establish the need for purchased products and services. This may result in a search for the product or an evaluation of the product attributes by the consumer.
Elements of Nicosia: • Field one • Field two • Field three • Field four 9. What are the Models of Industrial Consumer Behavior?
. evaluate.• Product-brand evaluation • General motivating influences • Internationalized environment influences
8. Describe briefly about Nicosia Model. This model tries to explain buyer behavior by establishing a link between the organization and its (prospective) consumer. 10.What is industrial consumer behavior? Industrial buyers make purchase decisions in order to satisfy their goals as do final consumers. and choose among alternative brands and suppliers. This model describes a circular flow of influences where each component provides input to the next. and identify.
the characteristics of that organization will influence buying decisions. Sheth. Industrial buyers must purchase products and services within the context of an organization.
Determinants of the Expectations of Decision – making Individuals • • • Background of Individuals Information Sources Active Search
Organisation Specific Factors
Organisational buying process
Product –Specific Factors
Autonomous Decision making
. • Sheth model • Webster and wind model
Sheth Model This model of the industrial buying process was elaborated by Jagdish N.The different models of organizational buying behavior discuss these factors differing levels of attention being given to each.
influencer. deciders. buyer.What are the Various Aspects of Sheth Model? Psychological world of Individual Factors affecting Joint Decision-making Process of Joint Decision-making Webster and Wind Model
A more comprehensive model of the organizational buying decision making process has been developed by Webster and wind.
Decision – making Process
. the buying center consists of five buying roles: users.Conflict Resolution Tatics
Selection of Supplier or Brand
11. and gatekeeper.
According to this model.
These variables influence how the consumer proceeds through a decision process regarding products and services.
A person’s buying choices are influenced by four major psychological factors.12.
State the concept of Psychological influences on consumer behavior. which are shown in figure below:
Psychological Influences on Consumer Behavior
. Consumer’s psychological state is difficult to determine. What are the Variables of Webster and Wind Model? Environmental Variables Organisational Variables Social Variables Individual Characteristics
UNIT 3 INTERNAL INFLUENCES AFFECTING CONSUM ER BEHAVIOUR
Define Motivation: Motivation can be defined as the processes that account for an individual’s intensity. The following are the three key elements in this definitions : • Intensity • Direction • Persistence
3. direction. and persistence of effort toward attaining a goal.2.
Motivation is a Continuous process
Motivation is a psychological concept Entire Individual is Motivated Frustrated Individual Fails to be Motivated Goals Lead to Motivation Self-concept as a unifying forces
Cogniti ve Proces s
. State the Motivation Process diagram. State the Nature of Motivation.
What are all the various needs in Maslow’s Theory? Some important prepositions of Maslow’s need model are below:
.Unfulfill ed Needs
Fulfillment of Goal or Need (Achievem ent of Goal)
Reducti on in Tensio n
5. The theories of motivation are as follows: Maslow’s Need Priority Model McGuire’s Psychological Motives Herberg’s Motivation-Two factor theory Mc Clelland’s Needs theory of Motivation Porter-Lawler Model Expectancy theory of Motivation
6. What are the Motivational Theories? There are various of motivation. and many of them offer useful insights for marketing managers.
McGuire developed a classification system that organizes these various theories into sixteen categories. Describe briefly about Infulence of Motivation on Consumer Behavior. This system helps marketers to isolate motives likely to be involved in various consumption situations. State the theory of McGuire’s Psychological Motives. Consumer Decision Making: Jagdish Sheth identified five consumer motives each oriented to the achievement of specific goals:
. Cognitive Preservation Motives Cognitive Growth Motives Affective Preservation Motives Affective Growth Motives 8. Man is wanting animal A satisfied need is no longer a motivator
Needs have hierarchy of importance
2. It will demonstrate my success. Purchase a Mercedes Benz
1. Functional Motives Aesthetics/Emotional Motives Social Motives Situational Motives Curiosity Motives
Consumer Needs Functional Aesthetic Social Situational Curiosity
Consumer Decision Making Selecting a generic category Making a Modal choice Making a specific choice
2. I can make others feel envious. 2. It is a hi-tech car and performs well. It is fault free engineering marvel. Its large size is comfortable.
. 3. Consumer Conflict Resolution: • Approach-Approach Motivational Conflict • Approach-Avoidance Conflict • Avoidance-Avoidance Conflict • Purchase/Consumption pattern and Motives Manifest Motives Motives
organized and interpreted to make it meaningful to us. received.Robbins.” 10. According to S. Covert or Internal Environment Translation Response organism Decisions
Attention Sensory and Neural Mechanisms
Recognition Mediators and Physical organisms
Satisfaction Expectation and Performance Evaluation
Performance Action Satisfaction Reaction Retrospection
Behavior Overt physical action Covert Mental State
. What are all the various Components of Perception?
Stimuli 1. “Perception may be defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. Over Environment =Physical =Socio-cultural =Work relation 2.9.P.State the meaning of Perception Perception is the process through which the information from outside environment is selected.
Describe the various Factors Influencing Perception. =>The following are the various steps in perceptual process: Perceptual Selection Perceptual Organization Perceptual Interpretation 13. Define Learning.
. Situations Physical setting Social setting Organizational setting Perception
Factors in the Perceiver Needs and Motives Self Concept Past Experience Beliefs Expectations Current Psychological State
Factors in the Target Intensity Frequency Status Size Contrast
12.Factors in the 11. What is the various Process of Perception? => Perception is a process consists of several sub-processes.
Behavioral Learning Theory
. State the Characteristics of Learning.” 14.” According to E. Strength of Learning Extinction Stimulus Generalization Stimulus Discrimination Response Environment 15.Learning may be defined as “The process of acquiring the ability to respond adequately to a situation which may or may not have been previously encountered. the favorable modification of response tendencies consequent upon previous experience.R. “Learning is a relatively permanent change in behavior that occurs as a result of prior experience. • Recognition and Recall • Cognitive Responses to Advertising • Attitudinal and Behavioral Measures of Brand Loyalty 17.Hilgard. How learning Influences on Consumer Behavior. the process of acquiring insight into situation. What are the various Elements of Learning? Motivation Cues Response Reinforcement 16. State the Theories of Learning.
Cognitive Learning Theory Social Learning Theory
18. What are the various Functions of Attitude? Adjustment Function Ego-Defensive Function Value-Expressive Function
. perceptual. Define Attitude. emotional. Degree and Intensity Attitudes have Structure Attitudes are learned Attitudes are Predispositions Attitudes have a relationship with behavior Attitudes are consistent 20. “Attitudes are an overall evaluation that allows one to respond class of object in a consistently favorable or unfavorable manner with respect to a given object alternative. and motivational process with respect to some aspect of people’s environment.”
19. Attitude is a relatively permanent organizing or cognitive.State the Nature of Attitude. Attitudes have an object Attitudes have Direction. According to Engel.
How attitude Influence on Consumer Behavior Negative Learned Attitude Positive Learned Attitude Negative Learned Attitude Positive Experience Attitude 22. What are the Personal Influence on Consumer Behavior? =>Personal factors such as age. Knowledge Function 21. Describe briefly about Attitude Models. The following are the two types of Attitude Models: Tri-Component Attitude Model Cognitive Component Affective Component Conative Component Multi-Attribute Attitude Model Attitude-toward-object model Attitude-toward-Behavior model Theory of Reasoned-Action Model Theory of Trying to consumer Attitude-toward-the-Ad Model 23. occupation. Define Personality. 24.
. lifestyles or living patterns and personality affect the buying behavior of a person. economic circumstances.
“Personality can be defined as those inner psychological characteristics that both determine and reflect how a person responds to his or her environment. According to Schiffman and Kanuk. • Differential Features • Differential Emotional Reactions • Differential Stress Handling 27. Impact Behaviors and Actions Psychological and physiological Personality reflects Individual Differences Personality is consistent and enduring Personality can change 26. Personality is an individual’s characteristics response tendencies across similar situations. How personality Influences on Consumer Behavior Compliance. and Detachment Generalized Self-Confidence Self-Consciousness Self-Monitoring
.The term Personality has been derived from Latin word “Personare” which means ‘to speak through’. What are the Nature of Personality. Describe briefly on Significance of Personality.”
Affiliation. • Consumer Expectation+ Equal customer service= Satisfaction
Consumer Expectation + Higher customer service= Delighted Satisfaction
. and Achievement Affect Intensity 28. • Expectations are defined as beliefs about a product’s or service’s attributes or performance at sometime in the future and are a key determinant of satisfaction. What are all the Consumer Expectations and Satisfactions? • Consumer expectations and satisfaction also impact purchase decisions. Self-Esteem Dogmatism Rigdity Tolerance of Ambiguity Attention to Social Comparison Information Optimum stimulation level State versus Action Orientation Separateness-Connectedness Impulsiveness Extraversion and Neuroticism Need for cognition Need for Power. • Consumer Expectation + Lower customer service = Dissatisfaction.
State the Meaning of Consumer Expectation. o Consumer Expectation may be defined as the desires or wants of the consumer. o These expectations are in most instances. different from what the customer gets in a real-life situation from the organization. What are all the various Benefits of Consumer Satisfaction? • Loyalty
. Describe briefly the Issues relating to Consumer Expectation. Define Consumer Satisfaction. What are all the Factors Influencing Consumer Satisfaction o Product o Sales Activity o After-Sales o Culture 33. Customer Satisfaction is the attitude-like feeling of a customer towards a product or service after it has been used. It is generally described as the full meeting of one’s expectation.29. 32. Knowledge and Expectation of Consumer. Level of Expectation Customer Satisfaction Performance Significantly below Expectations Exceeding Expectations Components of Expectations 31. 30.
Understand what can Go Wrong Focus on Controllable Issues Manage Customer Expectations Offer Satisfaction Guarantees Make it Easy for customers to complain Create relationship programs Make customer satisfaction Measurement Ongoing Priority.• Repeat Purchase • Referrals • Retention • Reduced Costs • Premium Prices Managing Consumer Satisfaction There are several things that marketers can to manage customer satisfaction and leverage it in their marketing efforts.
How Socio-Cultural Influences on Consumer Behavior? Socio-Cultural environment refers to influence exercised by certain social and cultural factors on the purchase behavior of consumer.
UNIT 4 EXTERNAL INFLUENCES AFFECTING CONSUMER BEHAVIOR
o Culture is Invented o Culture is Learned o Culture is Socially Shared o Culture are similar but different o Culture is Gratifying and Persistent o Culture is Adaptive o Culture is Organized and Integrated o Culture is Perspective
What are all the Factors affecting Culture? Social factors : Reference Groups.
State briefly the Characteristics of Culture. Culture can exits and sometimes reveal itself at different perceived or subjective levels.
2. Roles and Status. Family. Personal factors : Age.
Cultural Influences on Consumer Behavior The impact of culture is so natural and automatic that its influence on behavior is usually taken for granted. Occupation. Culture is everything that is socially learned and shared by the members of a society. Culture consists of material and nonmaterial components. Socio-Cultural forces consists of influences from the cultural and social environment.
Define Sub-Culture .
Subculture is a distinct cultural group that exists as an identifiable segment within a larger. more complex society. country-of-origin. race. race. etc. heritage. geographic location.
What are all the Types of Sub-Culture? Nationality Sub-culture Religious Sub-culture Geographic and Regional Sub-Culture Racial Sub-Culture Age Sub-Culture Sex as a Sub-Culture
Define Cross Culture. and sex are important sub-culture categories. age. Self oriented values Other oriented values Environment oriented values
. How the Sub-Culture Influences on Consumer Behavior? • Sub-Culture is a distinct culture group that exists as an identifiable segment within a larger.5.
Cross culture is important to note that if the culture of a society or a country is further divided into sub-culture owing to diversities in language.. • Nationality.
9. more complex society.
What are the Cross Cultural Values and state its basic areas. • Sub-Culture are relevant units of analysis for market research.
Basic areas for Cross Cultural Analysis Language and Meaning Differences in Marketing segmentation opportunity Differences in the Criteria for Evaluating products and services Differences in Consumption pattern and perceived benefits of products and services Difference in the economic and cultural social condition and family structure
10. including products and advertisements. Culture provides a set of rules for how people will interact in exchange relationship what constraints and ways in behavior and decisions are acceptable. How
Cross Cultural Influences on Consumer Behavior?
Consumers buy meanings and marketers communication meanings through various forms of communication media.
11. so that members of each class have relatively the same status and members of all other classes have either more or less status. What
are all the Features of Social Class?
Social Classes are Multidimensional Social classes are Hierarchical
do you mean by Social Class?
Social class is defined as the division of members of a society into a hierarchy of distinct status classes. The Cross-Cultural analysis of Consumer Behavior is essential to a growing number of marketing managers.
12. especially as they are increasingly required to operate within global business stragtegies.
The basic hypothesis behind attempting to link each social class with distinctive consumption pattern seems to be that the needs and wants of members of a particular class are product of social conditioning by the environment. “Social stratification is the division of members of a society into a hierarchy of distinct status classes. Schiffman and L. normatively dictates the kind of food. A collection of people which possesses most of the following characteristics is usually deemed to constitute a group: More than one person Sufficient interaction between members
. recreation.L. Define
Social Stratification. education. so that members of each class have relatively the same status and members of all other classes have either more or less.”
15.G. and other purchases. o According to L. Membership of a particular class.
How Social Class Influences on Consumer Behavior Class differences are distinctly symbolized by consumption differences.
o Social stratification refers to the perceived hierarchies in which consumer’s rate others as higher or lower in social status.What is Group? A group consists of people who have a sense of relatedness as a result of interaction with each other. Social classes Restrict behavior Social classes are Homogeneous Social classes are Dynamics
13. vacations. Kanuk.
• For example: a household might include individuals who are not related by blood. Describe
briefly on Types of Groups
Primary versus Secondary Groups Formal versus Informal Groups Membership versus Symbolic Groups
18. such as unmarried couples. marriage. family friends. or adoption who reside together. What
do you mean by Family?
• Family is defined as two or more persons related by blood. State
the various Nature of Group. or boarders.Types of Family Married couples
. Perception of themselves as a group A certain set of agreed/accepted values Allocation of specific roles Social relations between members
16. roommates. or adoption. 19. marriage.
o Norms o Values o Role o Status o Socialization o Power
are not the sole reasons accounting for the strength of the family’s influence. How
the Family Influences on Consumers Behavior. These two factors. State
the various Characteristics of Family. Nuclear family Extended family
o Culture o Sub-Culture o Social class o Reference Groups and social interactions o Stage in life cycle o Mobility o Geographic location o Children o Marriage
are the Functions of the Family. however.
The family is both a primary group and a reference group.
Economic Well-Being Emotional support Suitable family lifestyles Socialization of Family members
namely. initiator. or a specific guide for behavior. Family decision-making is the process by which decisions that directly or indirectly involve two or more family members are made. influencer. Reference groups that serve as benchmarks for specific or narrowly defined attitudes or behavior are called comparative reference group. or behavior. How
Reference Group Influence on Consumer ?
A reference group is any person or group that serves as a point of comparison for an individual in forming either general or specific values.
Reference groups that influences general or broadly defined values or behavior are called normative reference groups. State
the various Types of Reference Group. Reference groups that serve as benchmarks for specific or narrowly defined attitude. buyer and user.
• Friendship Groups • Shopping Group • Work Group • Virtual Groups • Brand Communities • Consumer-Action Group
do you mean by Reference Group?
A reference group is any person or group that serve as a point of comparison for an individual in forming either general or specific values. decider. Family members perform various roles in decision-making. attitudes.
26. Communication can be defined as transmission of information and messages to consumer via the media of personal contact.
Communication is Unavoidable Continuous process Two-way Traffic Role of Perception Universal
28. mail. Describe
the Process of Communication. print tele/electronic means and broadcast. It is an important tool in the hand of marketing used by them to create a customer. State
the various Features of Communication. Define
Communication is the process by which information is transmitted between individuals or organization so that an understanding response results.
. Both normative and comparative reference groups are important.
29. or had the intention of buying now. Increasing Category Expansion and Consumption: Sales promotions are likely to stimulate demand by creating new occasions for purchase. Purchasing More or Accelerating Timing of Purchase: Purchasing more and accelerating timing refers to those situations when consumers buy more than their immediate requirement or shift their purchase timing as a result of promotions.
30. or by increasing the consumption rate by consumers. How
Communication Influence on Consumer Behavior? Brand Switching: Some promotions encourage consumers to buy a different brand than the one they bought on an earlier purchase occasion. How
to Design an Effective Communication?
Communication Strategy Target Audience Media Strategy Message Strategy Advertising Appeals Media
. Repeat Buying: Repeat purchase may result because of habit formation that may develop because the brand is bought more than once due to sales promotion.
social surroundings. temporal considerations and finally antecedent conditions.UNIT 5 PURCHASE DECISION PROCESS
Buying Intention Problem Recognition Information Search Alternative evaluation Positive attitude Purchase
Situational Influence Physical surroundings Social surroundings Temporal considerations Antecedent conditions
. o Situational factor refer to physical surroundings.
What is Consumer Purchase Decision process? o The keys to influencing the purchase process are understanding purchase intention and the situational influences. o This purchase intention will get converted into purchase actually only when situational factors act favorably.
=> These stages are as follows: o Pre-purchase behavior Need Arousal Information search Evaluation behavior o Purchase Decision o Post-Purchase behavior 3.
2.What is Pre-Purchase behavior? 1.2. Need recognition: Problem recognition results when a consumer recognizes a difference of sufficient magnitude between what is perceived as the desired state of affairs and what is the actual state of affairs and activate the decision process. Information –search Process
. What are all the various Stages in Consumer Purchase Decision Process? => The consumer passes through three stages in taking a decision for purchasing a particular commodity.
What are the various Factors Influencing Consumers Store Choice Decision? Location of store Store design and Physical facilities Merchandise Advertising and Sales Promotion Personnel Customer Services Clientele
Define Post Purchase Behavior. Information Evaluation Process Evaluative criteria may vary from one consumer to another.
What is Purchasing Process? The Key to influencing the purchase process are understanding purchase intention and the situational influences.
5. Purchase intentions get converted into purchase actually only when situational factors act favorably.The term “search” refers to mental as well as physical information seeking and processing activities. which one engages in to facilitate decision making regarding some goal-object in the market place. Consumer like to think of themselves as intelligent shoppers. The marketer is interested in knowing how consumers process the information gathered during the search process on their evoked set of brands.
The degree of involvement is determined by how important consumers perceive the product and Service.Once the consumer makes a decision to purchase a product. Decisions on Related Products or Services
What do you mean by Consumer Involvement: High and Low involvement.
High Involvement/Rational In this category one finds expensive business purchases – anything relating to the technological infrastructure. The following are two activities : 1. and perhaps the hiring of certain employees. the office location and lease.
2.State the various Categories of Involvement. Involvement ranges from low to high. 3. advertising. Decisions on Product Set-Up and Use 2. there can be several types of additional behavior associated with that decision.
8. Consumer Involvement refers to degree of information processing or extent of importance that a consumer attaches to a product. The degree of involvement has a very significant effect on consumer behavior. as well as the company health insurance plan. Low Involvement/Rational
. High involvement/Emotional Business purchases that fall into this category might include such things as office design. There are four general categories of involvement as follows:
Strong positioning can help. of gratification.These are the things one buy out of habit. Process that information carefully Chooses that brand which is expected to provide maximum satisfaction. without much thought.
2. Information Search Highly Involved Seeks out information from various commercial and non-commercial sources. especially in a crowded product category. 9. the customer chooses that brand which is likely to give the least problem. 4. This category includes most of the things one put into the basket at the drug store or market. the promise of a benefit. How the Low involvement differs from high involvement? Factors 1. Information Processing 3. Expectation
. Lowly Involved Passively gathers information that comes his way.What are the Factors Influencing Consumer Involvement? Previous Experience Interest Perceived Risk of negative consequences Situation Social visibility 10. Learns the information in a random fashion Subject to minimum acceptable level of satisfaction. Low Involvement Emotional The advertising challenge here tends to be the flash promise of pleasure.
Influence of personality & Lifestyle 6. Behavior is influenced by personally and lifestyle. Influence on customer of Group Norm 5. What are the High involvement Strategies? o Change existing beliefs about the consequences of behavior o Change consumers’ evaluation of the consequences of a particular action
. Personality and lifestyle as influence are not very relevant. advertising proves to be effective here. What are the various Low involvement Strategies? Link the product or service at an involving issue Link the product to a presently involving personal situation Develop high involvement advertisements Change the importance of Product benefits Reveal or Introduce Important product characteristics 12.4.
Group norms do not exist. If perceived as sponsored information the impact is limited since all information is processed carefully to avoid risky decisions. Since all information including advertising claims are accepted uncritically. so reference group acts as a source of information.
11. So reference group influence does not work here. Marketer’s Role as Information Provider
Group norms and values dictate product choice.
Order placement Purchase Authorization of payment Consummation
. What are the contents in Online Purchase Decision Process? The Purchase process model consists of seven activities that can be grouped into three phases: Pre Purchase phase Purchase consummation Post Purchase phase Information search on Product/Service
Alternative Evaluation PrePurchase Negotiation of terms such as Price. Delivery preparation Time.o Introduce new belief o Change existing normative beliefs o Change Motivation to comply with subjective norms o Introduce new normative components 13.
Pre-purchase preparation Consumer Information search process Product selection and negotiation process Purchase consummation Post-Purchase interaction 15.Delivery/Receipt of product
After Sale customer service
Post purchase Interaction
14.State the various Steps in Online Purchase Decision Process.Define Diffusion of Innovation. What is E-tools in Customer Service? Personalized web pages Frequently Asked Questions Chat Rooms Electronic Mail Electronic Mail Help Desk Call Centres 16.
Consumer researches who specialize in the diffusion of innovations are primarily interested in understanding two closely related process: Diffusion Process Adoption Process 17. List out the Factors Influencing the Rate of diffusion. how they are assimilated within a market.The framework for exploring consumer acceptance of new products is drawn from the area of research known as the diffusion of innovations. State the Elements of Diffusion Process Innovation Communication channels Social system Time 19. It is the process by which an innovation is communicated through certain channels over time among the members of a social system.What are all the Diffusion process in CB? The diffusion process is concerned with how innovations spread. Type of Group Type of Decision Marketing effort Fulfillment of felt need Relative advantage
18. that is.
What are the Emerging Issues in Consumer Behavior?
. State the meaning of Adoption Process. • Innovators • Early adopters • Early majority • Late majority • Laggards 22. Compatibility Complexity Trialability Observability Cos 20. =>The focus of this process is the stage through which an individual consumer passes while arriving at a decision to try or not to continue using or to discontinue using a new product. List out the Categories of Adopters. =>It involves the following phases: o Awareness o Comprehension o Attitude o Legitimation o Trial o Adoption 21.
Change his evaluation of the Altenatives Seeking new information Changing Attitudes
. Quality Incentives Budgeting Applications Categories of Consumer behavior Life-time value of a customer Online Marketing 23. an individual may reformulate his preferences and decide not to smoke. frequently viewing the surgeon general’s warnings. After experiencing respiratory discomfort. bearing the social stigma placed on smokers. How to Manage Dissonance? Dissonance is the discomfort created when the outcome of individual’s choice is not consistent with their pre-choice beliefs.