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IntroductionIntroductionIntroductionIntroduction IntroductionIntroductionIntroductionIntroduction totototo totototo
IntroductionIntroductionIntroductionIntroduction IntroductionIntroductionIntroductionIntroduction totototo totototo
ConsumerConsumerConsumerConsumer ConsumerConsumerConsumerConsumer BehaviourBehaviourBehaviourBehaviour BehaviourBehaviourBehaviourBehaviour
What,What,What,What, What,What,What,What, WhyWhyWhyWhy WhyWhyWhyWhy &&&& &&&& HowHowHowHow HowHowHowHow
Consumer Consumer Behaviour Behaviour
Module Module 01 01 & & 02 02
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ConsumerConsumerConsumerConsumerConsumerConsumerConsumerConsumer vsvsvsvsvsvsvsvs
ConsumerConsumerConsumerConsumerConsumerConsumerConsumerConsumer vsvsvsvsvsvsvsvs CustomerCustomerCustomerCustomerCustomerCustomerCustomerCustomer
• • Consumer Consumer is is the the generic generic term term to to
indicate indicate the the user user of of a a particular particular type type of of
product product
• • Customer Customer is is the the consumer consumer who who uses uses
the the product product of of a a company company
– – In In practice, practice, both both these these terms terms are are
used used interchangeably interchangeably
– – Our Our objective objective here here is is to to study study how how
and and why why consumers consumers purchase purchase
products products of of certain certain nature nature
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TheTheTheTheTheTheTheThe PurposePurposePurposePurposePurposePurposePurposePurpose ofofofofofofofof
TheTheTheTheTheTheTheThe PurposePurposePurposePurposePurposePurposePurposePurpose ofofofofofofofof BusinessBusinessBusinessBusinessBusinessBusinessBusinessBusiness
• • There There is is only only one one valid valid definition definition of of
business business purpose purpose ; ; To To create create Customers Customers
• • What What the the business business thinks thinks it it produces produces is is
not not of of importance importance
• • What What the the customer customer thinks thinks he he is is buying, buying,
what what he he considers considers as as Value, Value, is is Decisive Decisive
• • It It determines determines what what a a business business is, is, what what it it
produces produces and and whether whether it it will will prosper prosper
Peter Peter Drucker Drucker
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ConceptsConceptsConceptsConceptsConceptsConceptsConceptsConcepts ofofofofofofofof CreatingCreatingCreatingCreatingCreatingCreatingCreatingCreating CustomersCustomersCustomersCustomersCustomersCustomersCustomersCustomers

Production Production Concept Concept

Product Product Concept Concept

Selling Selling Concept Concept

Marketing Marketing Concept Concept

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ProductionProductionProductionProductionProductionProductionProductionProduction
ProductionProductionProductionProductionProductionProductionProductionProduction ConceptConceptConceptConceptConceptConceptConceptConcept
The The production production concept concept is is characterized characterized as as the the
concept concept used used by by Henry Henry Ford Ford in in the the early early 1900s. 1900s.
Ford Ford produced produced a a car car for for $850 $850 in in an an era era when when only only
the the wealthy wealthy could could afford afford a a car. car. The The assembly assembly line line
concept concept allowed allowed him him to to reduce reduce the the price price to to $360. $360.
Because Because of of Ford’s Ford’s products, products, Americans Americans developed developed
the the nation’s nation’s extensive extensive highway highway system system and, and,
eventually, eventually, suburbs suburbs and and their their adjacent adjacent shopping shopping
malls. malls.
The The production production concept concept assumes assumes that that consumers consumers
are are mostly mostly interested interested in in product product availability availability at at low low
prices. prices.
Implicit Implicit marketing marketing objectives objectives are are cheap, cheap, efficient efficient
production, production, and and intensive intensive distribution distribution systems. systems.
This This concept concept makes makes sense sense when when consumers consumers are are
more more interested interested in in obtaining obtaining the the product product than than
they they are are in in specific specific features. features.
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productproductproductproductproductproductproductproduct conceptconceptconceptconceptconceptconceptconceptconcept • •
productproductproductproductproductproductproductproduct conceptconceptconceptconceptconceptconceptconceptconcept
• • The The product product concept concept assumes assumes that that consumers consumers will will
buy buy the the product product that that offers offers them them the the highest highest quality, quality,
the the best best performance, performance, and and the the most most features. features.
• • A A product product orientation orientation leads leads the the company company to to strive strive
constantly constantly to to improve improve the the quality quality of of its its product product and and to to
add add new new features features that that are are technically technically feasible feasible without without
finding finding out out first first whether whether or or not not consumers consumers really really want want
these these features. features.
• • This This concept concept leads leads to to “marketing “marketing myopia,” myopia,” that that is, is, a a
focus focus on on the the product product rather rather than than on on the the consumer consumer
needs needs it it presumes presumes to to satisfy. satisfy.
– – Railroads Railroads are are often often used used as as an an example example of of marketing marketing
myopia. myopia.
– – A A more more modern modern example example of of marketing marketing myopia myopia might might
be be the the PDS. PDS.
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SellingSellingSellingSellingSellingSellingSellingSelling ConceptConceptConceptConceptConceptConceptConceptConcept • •
SellingSellingSellingSellingSellingSellingSellingSelling ConceptConceptConceptConceptConceptConceptConceptConcept
• • The The selling selling concept concept is is a a natural natural extension extension of of the the
production production and and product product concepts. concepts. In In this this concept, concept,
marketing’s marketing’s primary primary focus focus is is selling selling the the product(s) product(s)
that that it it has has unilaterally unilaterally decided decided to to produce. produce.
• • A A hard hard sell sell approach approach is is often often used used to to persuade persuade
consumers consumers to to buy buy something something (even (even if if they they do do not not
really really want want it). it).
• • A A negative negative of of this this concept concept is is that that consumers consumers may may not not
return return for for repeat repeat sales sales because because they they may may not not have have
wanted wanted the the product product to to begin begin with. with.
• • This This approach approach is is typically typically used used by by the the marketers marketers of of
unsought unsought goods goods (such (such as as life life insurance). insurance).
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MarketingMarketingMarketingMarketingMarketingMarketingMarketingMarketing
MarketingMarketingMarketingMarketingMarketingMarketingMarketingMarketing ConceptConceptConceptConceptConceptConceptConceptConcept
• • The The field field of of consumer consumer behavior behavior is is rooted rooted in in a a marketing marketing strategy strategy
that that evolved evolved in in the the late late 1950s 1950s
• • Instead Instead of of trying trying to to persuade persuade customers customers to to buy buy what what the the firm firm had had
already already produced, produced, marketing-oriented marketing-oriented firms firms found found that that it it was was a a
lot lot easier easier to to produce produce only only products products they they had had first first confirmed, confirmed,
through through research, research, that that consumers consumers wanted. wanted.
– – This This consumer-oriented consumer-oriented concept concept came came to to be be known known as as the the
marketing marketing concept. concept.
– – Consumer Consumer needs needs and and wants wants became became the the firm’s firm’s primary primary
focus. focus.
• • The The key key assumption: assumption: To To be be successful, successful, a a company company must must
determine determine the the needs needs and and wants wants of of specific specific target target markets markets and and
deliver deliver the the desired desired satisfactions satisfactions better better than than the the competition. competition.
• • The The marketing marketing concept concept is is based based on on the the premise premise that that a a marketer marketer
should should make make what what it it can can sell, sell, instead instead of of trying trying to to sell sell what what it it has has
made. made.
– – The The older older selling selling concept concept focused focused on on the the needs needs of of the the
seller. seller.
– – The The marketing marketing concept concept focuses focuses on on the the needs needs of of the the buyer. buyer.
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ImplementingImplementingImplementingImplementing ImplementingImplementingImplementingImplementing
ImplementingImplementingImplementingImplementing ImplementingImplementingImplementingImplementing
MarketingMarketingMarketingMarketing MarketingMarketingMarketingMarketing ConceptConceptConceptConcept ConceptConceptConceptConcept
• • Marketing Marketing is is the the process process via via which which a a
firm firm creates creates Value Value for for its its chosen chosen
customers customers
• • Value Value is is created created by by meeting meeting customer customer
needs needs
• • To To remain remain a a viable viable concern, concern, the the firm firm
must must sustain sustain this this process process of of creating creating
and and capturing capturing Value Value over over time time
• • The The plan plan by by which which the the value value is is
created created on on a a sustained sustained basis basis is is the the
firm’s firm’s Marketing Marketing Strategy Strategy
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MarketingMarketingMarketingMarketingMarketingMarketingMarketingMarketing
MarketingMarketingMarketingMarketingMarketingMarketingMarketingMarketing ProcessProcessProcessProcessProcessProcessProcessProcess
• • Analyse Analyse
– – Customer, Customer, Company, Company, Competitors, Competitors,
collaborators, collaborators, Context Context – – SWOT, SWOT,
Market Market Research Research etc etc
• • Strategise Strategise
– – Segmentation, Segmentation, Targeting, Targeting, Positioning Positioning
• • Penetrate Penetrate
– – Product, Product, Promotion, Promotion, Place, Place, Pricing Pricing – –
Marketing Marketing Mix Mix
• • Consolidate Consolidate
– – Customer Customer acquisition, acquisition, Customer Customer
Retention Retention – – Brand Brand Equity Equity
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ConsumerConsumerConsumerConsumerConsumerConsumerConsumerConsumer ResearchResearchResearchResearchResearchResearchResearchResearch

Consumer Consumer

behavior behavior

You, You, the the

seller seller

must must be be

able able to to

determine determine

The The set set of of actions actions that that make make up up

an an individual's individual's consideration, consideration,

purchase purchase and and use use of of products products

and and services. services.

Includes Includes the the purchase purchase as as well well as as

consumption consumption of of the the products products and and

services. services.

What What is is motivating motivating the the customer customer

to to buy. buy.

This This enables enables you you to to convert convert

features features into into benefits benefits for for that that

particular particular individual individual

In In which which step step of of the the purchase purchase

decision decision process process is is the the buyer. buyer.

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PurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasing DecisionDecisionDecisionDecisionDecisionDecisionDecisionDecision ProcessProcessProcessProcessProcessProcessProcessProcess

Problem Recognition (motive arousal)

Problem Recognition (motive arousal) Internal Search •Habitual •Routine Search for

Internal Search •Habitual •Routine

Internal Search •Habitual •Routine
Internal Search •Habitual •Routine
Internal Search •Habitual •Routine Search for Information
Internal Search •Habitual •Routine Search for Information
Internal Search •Habitual •Routine Search for Information

Search for Information

Search for Information
Internal Search •Habitual •Routine Search for Information
Search •Habitual •Routine Search for Information External Search •Extended •Limited Evaluation of

External Search •Extended •Limited

Evaluation of Alternatives

The Purchase Decision

External Search •Extended •Limited Evaluation of Alternatives The Purchase Decision Post Purchase Behaviour 12 12

Post Purchase Behaviour

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ProblemProblemProblemProblemProblemProblemProblemProblem
ProblemProblemProblemProblemProblemProblemProblemProblem RecognitionRecognitionRecognitionRecognitionRecognitionRecognitionRecognitionRecognition
• • May May occur occur when when the the consumer consumer receives receives
information information from from advertising advertising or or from from conversation conversation
with with friends friends that that causes causes awareness awareness of of a a need. need.
• • In In consultative consultative selling selling sometimes sometimes hinges hinges on on the the
seller's seller's ability ability to to uncover uncover a a need. need.
• • May May occur occur when when the the consumer consumer re-evaluates re-evaluates the the
current current situation situation and and perceives perceives an an area area of of void void or or
dissatisfaction. dissatisfaction.
• • No No matter matter what what kind kind of of need need exists exists some some
prospects prospects do do not not consciously consciously recognize recognize it it until until the the
seller seller brings brings it it out out into into the the open. open.
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SearchSearchSearchSearchSearchSearchSearchSearch forforforforforforforfor
SearchSearchSearchSearchSearchSearchSearchSearch forforforforforforforfor InformationInformationInformationInformationInformationInformationInformationInformation
• • Limited Limited by by
–Time –Time and and cost. cost.
–Experience –Experience and and urgency. urgency.
–Value –Value of of purchase. purchase.
–Risk –Risk involved involved in in the the purchase purchase
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InternalInternalInternalInternalInternalInternalInternalInternal
InternalInternalInternalInternalInternalInternalInternalInternal InfluencesInfluencesInfluencesInfluencesInfluencesInfluencesInfluencesInfluences
• • Needs Needs and and motives motives
• • Personality Personality
• • Perception Perception
• • Consumer Consumer learning learning & & knowledge knowledge
• • Attitudes Attitudes
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ExternalExternalExternalExternalExternalExternalExternalExternal
ExternalExternalExternalExternalExternalExternalExternalExternal InfluencesInfluencesInfluencesInfluencesInfluencesInfluencesInfluencesInfluences
• • Culture Culture
• • Subculture Subculture
• • Family Family Life Life Cycle Cycle
• • Social Social Class Class
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InformationInformationInformationInformationInformationInformationInformationInformation
InformationInformationInformationInformationInformationInformationInformationInformation SearchSearchSearchSearchSearchSearchSearchSearch
• • Family, Family, friends, friends,
Personal Sources
neighbors neighbors
• • Advertising, Advertising,
salespeople salespeople
Commercial Sources
• • Mass Mass Media, Media,
Consumer-rating Consumer-rating
Public Sources
groups groups
• • Handling Handling the the product product
Experiential Sources
• • Examining Examining the the product product
• • Using Using the the product product
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EvaluationEvaluationEvaluationEvaluationEvaluationEvaluationEvaluationEvaluation ofofofofofofofof AlternativesAlternativesAlternativesAlternativesAlternativesAlternativesAlternativesAlternatives

Evoked Evoked Set Set is is the the list list of of

alternatives alternatives

Salient Salient attributes attributes are are used used to to

evaluate evaluate products. products.

Determinate Determinate attributes attributes are are motives motives

used used to to make make a a decision. decision.

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PurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasing
PurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasing DecisionDecisionDecisionDecisionDecisionDecisionDecisionDecision
• • Several Several alternatives alternatives may may seem seem equally equally
acceptable; acceptable;
• • Can Can be be made made easier easier by by a a professional professional seller seller
• • Involves Involves a a set set of of related related decisions. decisions.
• • Decision Decision criteria criteria
– – Tangible Tangible features features of of the the product. product.
– – Financial Financial considerations considerations such such as as price, price,
discounts, discounts, credit credit policies, policies, etc. etc.
– – Intangible Intangible factors: factors: reputation, reputation, past past
performance performance of of the the seller, seller, possible possible delivery delivery
dates, dates, etc. etc.
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LevelsLevelsLevelsLevelsLevelsLevelsLevelsLevels ofofofofofofofof ConsumerConsumerConsumerConsumerConsumerConsumerConsumerConsumer DecisionDecisionDecisionDecisionDecisionDecisionDecisionDecision MakingMakingMakingMakingMakingMakingMakingMaking

Complex Complex Decision Decision Making Making or or

Extensive Extensive Problem Problem Solving Solving Model Model

Low Low Involvement Involvement Decision Decision Making Making or or

Limited Limited Problem Problem Solving Solving Model Model

Routinised Routinised Response Response Behaviour Behaviour

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FourFourFourFour FourFourFourFour viewsviewsviewsviews viewsviewsviewsviews ofofofof ofofofof consumerconsumerconsumerconsumer consumerconsumerconsumerconsumer

decisiondecisiondecisiondecision decisiondecisiondecisiondecision makingmakingmakingmaking makingmakingmakingmaking

Economic Economic

Passive Passive

Cognitive Cognitive

Emotional Emotional

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PostPost−PostPostPostPost−PostPost−−purchase−−−purchase−purchasepurchasepurchasepurchasepurchasepurchase
PostPost−PostPostPostPost−PostPost−−purchase−−−purchase−purchasepurchasepurchasepurchasepurchasepurchase EvaluationEvaluationEvaluationEvaluationEvaluationEvaluationEvaluationEvaluation
• • Cognitive Cognitive Dissonance Dissonance aka aka "Buyers "Buyers Remorse“ Remorse“
- - post-purchase post-purchase anxiety anxiety
– – Depends Depends upon upon the the importance importance of of the the
decision decision and and the the attractiveness attractiveness of of rejected rejected
alternatives. alternatives.
• • Minimize Minimize this this anxiety anxiety
– – By By selling selling products products that that meet meet needs, needs,
– – By By reinforcing reinforcing the the buyer's buyer's belief belief that that the the
right right decision decision was was made made
– – By By demonstrating demonstrating the the capabilities capabilities and and
quality quality of of the the product, product,
– – By By post post purchase purchase follow-up follow-up to to be be sure sure that that
deliveries deliveries are are prompt, prompt, quantities quantities are are
correct, correct, and and the the product product is is functioning functioning as as
expected. expected.
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ModelModelModelModelModelModelModelModel ofofofofofofofof ConsumerConsumerConsumerConsumerConsumerConsumerConsumerConsumer
ModelModelModelModelModelModelModelModel ofofofofofofofof ConsumerConsumerConsumerConsumerConsumerConsumerConsumerConsumer BehaviorBehaviorBehaviorBehaviorBehaviorBehaviorBehaviorBehavior
Marketing & Other Stimuli
Buyer’s Black Box
Buyer’s Response
Product Choice
Brand Choice
Dealer Choice
Purchase Timing
Purchase Amount
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SUNRISE SUNRISE ACADEMY ACADEMY Bangalore Bangalore Business Business Value Value Chain Chain VALUE VALUE STAGES
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BusinessBusiness ValueValue ChainChain

VALUE VALUE STAGES STAGES

Marketing Marketing Customer Customer Market Market Program Program Mindset Mindset Performance Performance
Marketing Marketing
Customer Customer
Market Market
Program Program
Mindset Mindset
Performance Performance
Investment Investment
-
-
Price Price premiums premiums
- - Product Product
-
-
Awareness Awareness
-
-
Price Price elasticity elasticity
- - Communications Communications
-
-
Associations Associations
-
-
Market Market share share
- - Trade Trade
-
-
Attitudes Attitudes
-
-
- - Employee Employee
-
-
Attachment Attachment
-
-
Cost Cost structure structure
- - Other Other
-
-
Activity Activity
-
-
Profitability Profitability
FILTERS FILTERS
Program Program
Consumer Consumer
Multiplier Multiplier
Multiplier Multiplier
Consumer Multiplier Multiplier Multiplier Multiplier - - Stock Stock price price - - P/E P/E ratio
Consumer Multiplier Multiplier Multiplier Multiplier - - Stock Stock price price - - P/E P/E ratio
Consumer Multiplier Multiplier Multiplier Multiplier - - Stock Stock price price - - P/E P/E ratio

- - Stock Stock price price

- - P/E P/E ratio ratio

- - Market Market capitalization capitalization

Expansion Expansion success success

Market Market Multiplier Multiplier
Market Market
Multiplier Multiplier

- - Clarity Clarity

- - Relevance Relevance

- - Distinctiveness Distinctiveness

- - Consistency Consistency

- - Channel Channel support support

- - Consumer Consumer size size and and profile profile

- - Competitive Competitive reactions reactions

- - Market Market dynamics dynamics

- - Growth Growth potential potential

- - Risk Risk profile profile

- - Brand Brand contribution contribution

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ConsumerConsumerConsumerConsumer ResearchResearchResearchResearch ParadigmsParadigmsParadigmsParadigms • •
ConsumerConsumerConsumerConsumer ResearchResearchResearchResearch ParadigmsParadigmsParadigmsParadigms
• • Qualitative Qualitative Research Research Methods Methods
• • Quantitative Quantitative Research Research Methods Methods
• • Combining Combining Qualitative Qualitative and and
Quantitative Quantitative Research Research Findings Findings
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TheTheTheTheTheTheTheThe consumerconsumerconsumerconsumerconsumerconsumerconsumerconsumer researchresearchresearchresearchresearchresearchresearchresearch processprocessprocessprocessprocessprocessprocessprocess

Developing Developing research research objectives objectives

Collecting Collecting secondary secondary data data

Designing Designing primary primary research research

Data Data analysis analysis and and

Reporting Reporting research research findings findings

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ConsumerConsumerConsumerConsumerConsumerConsumerConsumerConsumer SituationsSituationsSituationsSituationsSituationsSituationsSituationsSituations

consist consist of of temporary temporary environmental environmental factors factors

that that form form the the context context within within which which a a

consumer consumer activity activity occurs occurs at at a a particular particular

place place and and time. time.

include include factors factors that: that:

Involve Involve the the time time and and place place in in which which a a

consumer consumer activity activity takes takes place place

Explain Explain why why the the action action takes takes place place

Influence Influence consumer consumer behavior behavior

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SituationalSituationalSituationalSituationalSituationalSituationalSituationalSituational
SituationalSituationalSituationalSituationalSituationalSituationalSituationalSituational ElementsElementsElementsElementsElementsElementsElementsElements
• • Physical Physical surroundings surroundings
• • Social Social surroundings surroundings
• • Time Time
• • Task Task definition definition
• • Antecedent Antecedent states states
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PhysicalPhysicalPhysicalPhysicalPhysicalPhysicalPhysicalPhysical
PhysicalPhysicalPhysicalPhysicalPhysicalPhysicalPhysicalPhysical SurroundingsSurroundingsSurroundingsSurroundingsSurroundingsSurroundingsSurroundingsSurroundings
• • .are .are the the
concrete concrete physical physical
and and spatial spatial aspects aspects
of of the the environment environment
that that encompass encompass a a
consumer consumer activity. activity.
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EffectsEffectsEffectsEffectsEffectsEffectsEffectsEffects ofofofofofofofof MusicMusicMusicMusicMusicMusicMusicMusic
EffectsEffectsEffectsEffectsEffectsEffectsEffectsEffects ofofofofofofofof MusicMusicMusicMusicMusicMusicMusicMusic onononononononon ShoppersShoppersShoppersShoppersShoppersShoppersShoppersShoppers
• • In In a a supermarket supermarket store store study study sales sales increased increased
daily daily by by 38% 38% when when slower slower music music was was played. played.
• • A A restaurant restaurant study study found found when when slow slow music music
was was played, played, liquor liquor sales sales increased. increased.
– – Playing Playing peppy peppy music music while while on on hold hold or or
waiting waiting in in line line doesn’t doesn’t make make time time pass pass more more
quickly. quickly.
– – Louder Louder music music increases increases “pace “pace of of events” events”
perception perception but but raises raises estimates estimates of of time time
durations. durations.
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TheTheTheTheTheTheTheThe EffectsEffectsEffectsEffectsEffectsEffectsEffectsEffects ofofofofofofofof CrowdingCrowdingCrowdingCrowdingCrowdingCrowdingCrowdingCrowding

Density Density - - how how closely closely packed packed people people are are (i.e., (i.e., the the

physical physical arrangements arrangements of of people people in in a a space). space).

Crowding Crowding - - the the unpleasant unpleasant feelings feelings that that people people

experience experience when when they they perceive perceive that that densities densities are are too too

high high and and that that their their control control of of the the situation situation has has been been

reduced reduced to to unacceptable unacceptable levels. levels.

High-density High-density situations situations may may be be beneficial beneficial - -

More More perceived perceived control control in in bar bar study, study, less less in in bank bank study. study.

In In “fun” “fun” situations, situations, density density enhances enhances pleasure. pleasure.

There There is is usually usually an an optimal optimal level level of of density. density.

Other Other elements elements (time, (time, convenience) convenience) as as important important for for

shopping shopping behavior. behavior.

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StoreStoreStoreStoreStoreStoreStoreStore LocationLocationLocationLocationLocationLocationLocationLocation

influences influences consumers consumers from from several several

perspectives. perspectives.

Consumers Consumers have have “cognitive “cognitive maps” maps” of of a a

city’s city’s geography geography that that may may not not match match the the

actual actual locations locations of of retail retail stores. stores.

Image Image transference transference exists: exists: The The image image of of

anchor anchor stores stores affects affects that that of of smaller smaller stores stores

in in the the same same shopping shopping center. center.

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StoreStoreStoreStore LayoutLayoutLayoutLayout

is the physical organization of a store that creates specific traffic patterns, assists retailers in the presentation of merchandise, and helps create a particular atmosphere. Store Atmospheric refers to how managers manipulate the design of the building, interior space, layout of aisles, texture of carpets and walls, scents, colors, shapes, and sounds experienced by customers to achieve a certain effect.

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OlfactoryOlfactoryOlfactoryOlfactory CuesCuesCuesCues • Shoppers perceive higher quality goods in scented stores. •
OlfactoryOlfactoryOlfactoryOlfactory CuesCuesCuesCues
• Shoppers perceive higher quality
goods in scented stores.
• Odors should be consistent with store
offerings.
• These cues are expensive to
maintain.
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SocialSocialSocialSocialSocialSocialSocialSocial SurroundingsSurroundingsSurroundingsSurroundingsSurroundingsSurroundingsSurroundingsSurroundings

deals deals with with

the the effects effects of of

other other people people on on

a a consumer consumer in in a a

consumption consumption

situation. situation.

other people people on on a a consumer consumer in in a a consumption consumption situation.

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TheTheTheTheTheTheTheThe TaskTaskTaskTaskTaskTaskTaskTask DefinitionDefinitionDefinitionDefinitionDefinitionDefinitionDefinitionDefinition

the the situational situational reasons reasons for for buying buying or or

consuming consuming a a product product or or service service at at a a

particular particular time time and and place. place.

Usage Usage situations situations form form the the context context in in

which which a a product product is is used used and and influence influence

the the product product characteristics characteristics sought sought by by a a consumer. consumer.

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OccasionOccasion−OccasionOccasion−−Based−BasedBasedBased OccasionOccasion−OccasionOccasion−−Based−BasedBasedBased

MarketingMarketingMarketingMarketing MarketingMarketingMarketingMarketing OpportunitiesOpportunitiesOpportunitiesOpportunities OpportunitiesOpportunitiesOpportunitiesOpportunities

Sometimes Sometimes a a product product

is is locked locked into into one one

usage usage situation, situation,

limiting limiting market market

potential. potential.

Consumers Consumers may may

come come to to consider consider the the

product product inappropriate inappropriate

for for all all other other situations. situations.

the the product product inappropriate inappropriate for for all all other other situations. situations. 37 37

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TimeTimeTimeTime TimeTimeTimeTime asasasas asasasas aaaa aaaa SituationalSituationalSituationalSituational
TimeTimeTimeTime TimeTimeTimeTime asasasas asasasas aaaa aaaa SituationalSituationalSituationalSituational SituationalSituationalSituationalSituational
VariableVariableVariableVariable VariableVariableVariableVariable
• • How How much much time time a a consumer consumer has has available available to to do do a a
task task influences influences the the buying buying strategy strategy used used to to select select
and and purchase purchase the the product. product.
• • With With limited limited time, time, there there is is less less information information search. search.
• • Time Differences Are Influenced by Culture
Time Differences Are Influenced by
Culture
– – Linear Linear Separable. Separable. There There is is a a past, past, present, present,
future. future. The The future future is is expected expected to to be be better: better: the the
idea idea of of “progress”. “progress”. Activities Activities are are a a means means to to an an
end. end.
– – Circular Circular Traditional. Traditional. The The future future is is like like the the
present. present. Do Do today today only only what what has has to to be be done done
today. today. Time Time and and money money aren’t aren’t related. related.
– – Procedural Procedural Traditional. Traditional. Task Task Orientation. Orientation.
Meetings Meetings take take as as long long as as necessary. necessary.
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TimeTimeTimeTimeTimeTimeTimeTime asasasasasasasas aaaaaaaa ProductProductProductProductProductProductProductProduct •
TimeTimeTimeTimeTimeTimeTimeTime asasasasasasasas aaaaaaaa ProductProductProductProductProductProductProductProduct
• • Many Many Purchases Purchases Are Are Made Made to to Buy Buy Time Time
– – The The “time-buying “time-buying consumer” consumer” is is a a
consumer consumer who who engages engages in in buying buying
time time through through these these products products
– – Time-saving Time-saving qualities qualities are are a a key key
promotional promotional idea idea
– – Time Time can can act act as as a a product product attribute attribute
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GiftGift−GiftGiftGiftGift−GiftGift−−Giving−−−Giving−GivingGivingGivingGivingGivingGiving
GiftGift−GiftGiftGiftGift−GiftGift−−Giving−−−Giving−GivingGivingGivingGivingGivingGiving MotivationsMotivationsMotivationsMotivationsMotivationsMotivationsMotivationsMotivations
Low
High
Reciprocity
Voluntary
Altruism
creation
Gift
Type
Ritual
Love,
Obligatory
obligation
friendship
Degree of Self-Interest
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GiftGiftGiftGiftGiftGiftGiftGift BehaviorBehaviorBehaviorBehaviorBehaviorBehaviorBehaviorBehavior andandandandandandandand
GiftGiftGiftGiftGiftGiftGiftGift BehaviorBehaviorBehaviorBehaviorBehaviorBehaviorBehaviorBehavior andandandandandandandand GenderGenderGenderGenderGenderGenderGenderGender
• • Women Women start start shopping shopping earlier earlier for for
Christmas Christmas (October (October vs. vs. November) November)
• • Spend Spend more more time time shopping/gift shopping/gift (2.4 (2.4
vs. vs. 2.1 2.1 hours) hours)
• • Are Are more more successful successful (fewer (fewer of of their their
gifts gifts are are exchanged) exchanged)
• • But But men men spend spend 50% 50% more/gift. more/gift.
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AntecedentAntecedentAntecedentAntecedentAntecedentAntecedentAntecedentAntecedent
AntecedentAntecedentAntecedentAntecedentAntecedentAntecedentAntecedentAntecedent StatesStatesStatesStatesStatesStatesStatesStates
are are the the temporary temporary physiological physiological and and
mood mood states states that that a a consumer consumer brings brings to to a a
consumption consumption situation. situation.
– – Physiological Physiological State: State: Hunger. Hunger.
– – Mood Mood State: State: Happy Happy feelings feelings
• • Can Can lead lead to to problem problem recognition. recognition.
• • Can Can change change the the “feeling” “feeling” component component
of of hierarchy hierarchy of of effects effects
• • Mood Mood states states influence influence behavior, behavior, e.g. e.g.
shopping shopping to to alleviate alleviate loneliness. loneliness.
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UsageUsageUsageUsage UsageUsageUsageUsage Situation,Situation,Situation,Situation, Situation,Situation,Situation,Situation, Person,Person,Person,Person, Person,Person,Person,Person, andandandand andandandand

ProductProductProductProduct ProductProductProductProduct InteractionsInteractionsInteractionsInteractions InteractionsInteractionsInteractionsInteractions

The The Buying Buying Act Act Results Results From From

Interactions Interactions That That Occur Occur AmongAmong

Consumption Consumption situations situations

Characteristics Characteristics of of the the buying buying

unit/person unit/person

The The product product or or service service being being

offered offered

4343

ManagerialManagerialManagerialManagerial ManagerialManagerialManagerialManagerial
ManagerialManagerialManagerialManagerial ManagerialManagerialManagerialManagerial ImplicationsImplicationsImplicationsImplications ImplicationsImplicationsImplicationsImplications ofofofof ofofofof
SituationalSituationalSituationalSituational SituationalSituationalSituationalSituational FactorsFactorsFactorsFactors FactorsFactorsFactorsFactors
• • Positioning. Positioning. Situational Situational variables variables offer offer
multiple multiple opportunities opportunities for for positioning. positioning.
• • Research. Research. May May indicate indicate which which situations situations
present present opportunities opportunities for for new new products. products.
• • Marketing Marketing Mix. Mix. Firms Firms may may be be able able to to
present present time-saving time-saving attributes attributes as as a a tradeoff tradeoff
for for a a higher higher price. price.
• • Segmentation. Segmentation. An An increase increase in in the the female female
work work force force presents presents opportunities opportunities to to
market market to to the the segment segment of of males males doing doing
more more of of their their own own shopping. shopping.
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