• Methods of Studying CONSUMER BEHAVIOR

• Using Consumer Analysis to Build

CONSUMER RELATIONSHIPS and LOYALTY
What is the meaning of consumer behavior?

• Consumer behavior is the study of consumers and the processes they use to
choose, use (consume), and dispose of products and services, including
consumers’ emotional, mental, and behavioral responses.

• Consumer behavior incorporates ideas from several sciences including

psychology, biology, chemistry, and economics.
Why is consumer behavior analysis important?

A consumer behavior analysis is important because it reveal:

• What consumers think and how they feel about various alternatives (brands,
products, etc.);
• What influences consumers to choose between various options;
• Consumers’ behavior while researching and shopping;
• How consumers’ environment (friends, family, media, etc.) influences their
behavior.
Factors affecting Consumer Decision Process:

Marketing Stimuli: Other Stimuli:

Products and Services
Economic Situation

Price
Technological

Distribution
Political

Communications Cultural

Consumer Psychology: Consumer Characteristics:

Motivation
Cultural

Perception
Social

Learning
Personal
Memory
Purchase Decision:

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

Payment Method
Consumer Buying Decision Process:
 RECIPROCITY

SCARCITY
COMMITMENT

Methods of studying
CONSUMER BEHAVIOR

AUTHORITY SOCIAL PROOF

LIKING
Using Consumer Analysis to Build CONSUMER RELATIONSHIPS and LOYALTY
PRIORITY
Making customer service a priority
Essentials of customer care
Encouraging customer feedback
Customer communications
Customer loyalty schemes
Employees and customer service
Customer relationship management
ACTION REQUIRED
Make customer care a key part of your business strategy.
Learn as much about your different customer segments as you can.
Develop a consistent brand identity.
Design and deliver a 'customer experience’.
Think of ways to make life easier for your customers.
Identify and address weaknesses that could affect customer service.
Communicate effectively with customers.
Provide a personalised service.
Measure customer service levels.
Provide opportunities for customers to give feedback
Find out more about your customers
Contact customers who have stopped buying, and find out why
Monitor and analyse the contact you have with customers
Plan your communications
Focus on customer needs
Use every channel available to talk to your customers
Use positive body language with customers
Make customer communication part of your after-sales service
Comply with your legal obligations to keep customers informed
You can offer cumulative discounts
Some schemes offer customers a discount off their next purchase
You can relate your marketing to a local or national cause
Make sure everyone gets customer care training
Lead by example and care for your employees
Encourage staff to work together to meet customer needs
Keep employees informed about your customer strategy
Develop an effective customer relationship management system
Examine other ways to use technology to boost customer service
Make sure you comply with relevant legislation
Case Study
Explanation of the case:

Martin Incorporation was involved in the cosmetics and perfume business. The company
was following the product concept of marketing and catered only to their existing customers,
while paying no attention to the changing needs and demands of the consumers.

A marketing graduate, named Ash, joined the company and advised the company about
necessary changes that must be made in the product on the basis of changing taste and
preferences of consumers to successfully sell the company`s products.

Mr Ash modernised the products and spent about 30 lakhs on packaging etc. on the basis of
relevant income and social factors that affect the consumers.

The product manager and assistant manager were not happy with the efforts made by Mr
Ash as even after 6 months of implementation of suggested changes the company was not
able to achieve effective growth in sales.

The product manager and Assistant manager were of the opinion that although some
progress was made by Mr Ash, yet many important factors affecting consumer behaviour
were also neglected by him.
M.C.Qs (Set A)
1. Any individual who purchases goods and services from the market for his/her end-use is called a..................

a. Customer b. Purchaser c. Consumer d. All these

2. ------------ is nothing but willingness of consumers to purchase products and services as per their taste, need and of course pocket.

a. Consumer behavior b. Consumer interest c. Consumer attitude d. Consumer perception

3. ------------- is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end
use.

a. Consumer behavior b. Consumer interest c. Consumer attitude d. Consumer perception

4. -------------- refers to how an individual perceives a particular message

a. Consumer behavior b. Consumer interest c. Consumer attitude d. Consumer interpretation.

5. “----------- is the action and decisions process or people who purchase goods and services for personal consumption.” 

a. Consumer behavior b. Consumer interest c. Consumer attitude d. Consumer interpretation.
6. ________________ emphasize(s) that profitable marketing begins with the discovery and understanding of consumer needs and then develops
a marketing mix to satisfy these needs.

a. The marketing concept b. The strategic plan c. The product influences d. The price influences.
7. ________________ is one of the most basic influences on an individual’s needs, wants, and behaviour.

a. Brand b. Culture c. Product d. Price

8. In terms of consumer behaviour; culture, social class, and reference group influences have been related to purchase and _______________.

a. Economic situations b. Situational influences c. Consumption decisions d. Physiological influences
9. Many sub-cultural barriers are decreasing because of mass communication, mass transit, and a ___________________.

a. Decline in the influence of religious values b. Decline in communal influences


c. Strong awareness of brands in the market d. Strong awareness of pricing policies in the market.
10. ___________ develop on the basis of wealth, skills and power.

a. Economical classes b. Purchasing communities c. Competitors d. Social classes.
 M.C.Qs (Set B)

Q1.Marketers who target consumers on the basis of their ________ believe that they can influence purchase behavior by appealing to
people's inner selves’
A.Core value B.Sophistication C.Money constrain D.Social class

Q2.Identify an economic circumstance that can greatly affect any product or brand choice.
A.Retirement B.Values C.Lifestyle D.Borrowing power

Q3.________ refers to a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to
environmental stimuli.
A.Image B.Personality C.Psychological D.TransformationLifestyle

Q4.Consumers often choose and use brands that have a brand personality consistent with how they see themselves, also known as the
________ .
A.Actual self-concept B.Ideal self-concept C.Others &; self-concept D.Prohibitive self-concept

Q5.________ portrays the "whole person" interacting with his or her environment.
A.Personality B.Lifestyle C.Attitude D.Self- concept
 M.C.Qs (Set B) cont.

Q6.At the top of Maslow& hierarchy of needs (shown as a pyramid in the text) are________ needs.
A.Esteem B.Self-actualization C.Social D.Safety

Q7.A person’s________ consist(s) of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior.
A.Subculture B.Family C.Social class D.Reference groups

Q8.Social classes differ in media preferences, with upper-class consumers often preferring________ and lower-class consumers often
preferring television.
A.Movies B.Radio C.Video or computer games D.Magazines and books

Q9.________ is one of the most basic influences on an individual’s needs , wants and behaviour.
A.Brand B.Culture C.Product D.Price

Q10.In terms of consumer behaviour; culture, social class , and reference group influences have been related to purchase and ________ .
A.Economic situations B.Situational influences C.Consumption decisions D.Physiological influences
M.C.Qs Answer

Set A Set B
1. A 1. A
2. B 2. D
3. A 3. B
4. D 4. A
5. A 5. C
6. A 6. B
7. B 7. D
8. C 8. D
9. A 9. B
10.D 10.C
THANK YOU!