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TYBMS

SPECIAL STUDIES IN MARKETING MODULE NO 1:


Asst. Prof Mrs. Iram Shaikh

CONSUMER BEHAVIOUR:

INTRODUCTION: Behavior that a consumer display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Two different kinds: Personal Consumer Organizational Consumer

1. 2.

DEFINITION:
THE DICTIONARY OF MARKETING AND ADVERTISING: Consumer behavior is observable activities chosen to maximise satisfaction through the attainment of economic goods and services such as choice of retail outlet, preference for particular brands and so on. LOUDON AND DELLA BITA: Consumer behavior is the decision process and physical activity individuals engage in when evaluating, acquiring, using, or disposing goods and services.

WHY STUDY CONSUMER BEHAVIOUR?


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Consumers do not always act or react as the theory would suggest. Consumers preferences are changing and become highly diversified. Consumers dislikes the uses of identical products and prefer differentiated products. To create market segmentation. Rapid introduction of new products with technological advancement. Used to sell products. For marketing management. Assistance to managers. Development of public policies. Knowledge of human behavior.

RESEARCH PERSPECTIVE ON C. B:
The

Decision Making Perspective: (Consumers are the decision makers)

The

Experiential Perspective: (Purchases for leisure or just for a change)

The

Behavioural Influence Perspective: (Strong environmental forces)

DECISION MAKING MODEL:

THERE ARE THREE STAGES:

The

Input Stage Process Stage Output Stage

The

The

INPUT: EXTERNAL INFLUENCES


Firms marketing efforts: 1. Product 2. Promotion 3. Price 4. Channels of distribution Socio- cultural environment: 1. Family 2. Reference groups 3. Non commercial sources 4. Social class 5. Culture & sub culture

THE PROCESS STAGE: CONSUMER


DECISION MAKING
Need recognisation Prepurchase search Evaluation of alternatives
1. 2. 3. 4. 5.

Psychological field: Motivation Perception Learning Personality Attitudes

THE OUTPUT STAGE : POST DECISION


BEHAVIOUR

PURCHASE

1. 2.

Trial Repeat Purchase


POSTPURCHASE EVALUATION

FACTORS AFFECTING CONSUMER BEHAVIOUR:

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PSYCHOLOGICAL FACTORS: Motivation Perception Learning Beliefs & Attitudes PERSONAL FACTORS: Age & Life-cycle position Occupation Economic Situation Life Style & personality

1. 2. 3. 4.

FACTORS AFFECTING CONSUMER BEHAVIOUR:


SOCIAL FACTORS: Role & Status Family Reference group

CULTURAL FACTORS: Cultural Sub- cultural Social class

MOTIVATION
Derived from Latin word Movere meaning To Move Driving force within the individuals that impels them for action Motivation can be positive and negative.

FRED LUTHANS: Motivation is a process that starts with a physiological or psychological deficiency or need that activates behaviour or a drive that is aimed at a goal or incentive.

THEORIES OF MOTIVATION

Maslows

Hierarchy Of Needs

David

Mc Clelland Theory

MASLOWS HIERARCHY OF NEEDS


Self actualisation need
Esteem needs

Social needs

Safety needs

Physiological needs

DAVID MC CLELLAND THEORY


Need For Achievement: Egoistic need and self actualisation need.

Need For Power: To control other persons & environment.

Need For Affiliation : Similar to social need. Socially dependent on others.

PERCEPTION:

How we see the world around us Process by which an individual receives, interprets & respond to stimuli in his environment. There are two stages of perception: 1. Attention filter: interested in or attracted to. (Advertisement, TV programmes, etc) 2. Interpretation process: organising the stimuli contents in to his/ her models of reality. Output of this is cognitionawareness of the stimuli.

FACTORS & PRINCIPLES OF PERCEPTION


Factors Influence The Perception Process: Stimulus factors: features of the product or services. Audience / Individual factors: individual characteristics / differences. Principles Of Perception : 1. Selective 2. Organized 3. Depends upon stimuli factors 4. Depends upon personal factors

BELIEFS

& ATTITUDES

BELIEF: Descriptive thought that a person holds about something, based on knowledge, opinion or faith. Negative belief or positive belief. Play decisive role in buying decision. ATTITUDES: Persons enduring favourable or un-favourable evaluations, emotional feelings and actions, tendencies toward some object or idea. Can be learned or developed.

CONCEPT OF AGE & FAMILY LIFE CYCLE


Concept Of Age : Man passes through different stages of his life cycle . Needs & preferences changes. Family Life Cycle: Progression of stages: 5 basic stages of FLC: 1. Bachelorhood 2. Honeymooners 3. Parenthood: (full nest I, full nest II, full nest III) 4. Post parenthood ( empty nest I, empty nest II) 5. Dissolution (death of one spouse- the solitary survivor, the retired solitary survivor)

OCCUPATION, ECONOMIC SITUATION:


Occupation

& economic situation of a person affects product preference, frequency of buying, quality quantity.

PERSONALITY:

Inner psychological characteristics like: qualities, attributes, traits, factors, & mannerisms that distinguish one person to another. NATURE / PROPERTIES OF PERSONALITY:

Personality reflects individuals difference Personality is consistent & enduring Personality can change

THEORIES OF PERSONALITY
3 major theories of personality between consumer behaviour and personality. They are: 1. Freudian Theory / freuds psychoanalytic theory: human drives are largely unconscious in nature which serves to motivate consumers action. 2. Neo- Freudian Theory: Role of social relationship in formulating and developing personality. 3. Trait Theory: every human have psychological traits at different degree which can be motivated.

SELF CONCEPT:
Totality

of the individuals thoughts & feelings having reference to himself as an object.


Two School Of Thoughts:
The kind of person that one believes he or she is, The kind of person that one believes that others think he or she is.

1. 2.

TYPES OF SELF CONCEPT:


Actual self: perceive himself or herself Ideal self: would like to perceive himself or herself

Social self: how others perceive him or her Ideal social self: person would like others to perceive him or her Expected self: an image in between actual and ideal self Situational self: self- image in specific situation Extended self: impact of personal possessions on self- image Possible self: like to become, could become, or is afraid to becoming.

LIFE STYLE IDENTIFICATION


Lifestyle marketing is a process of establishing relationships between products offered in the market & targeted lifestyle groups. The Marketing Dictionary Of Rona Ostrow & Sweetman R. Smith: Lifestyle is a distinctive mode of behaviour centered around activities, interests, opinions, attitudes & demographic characteristics, distinguishing one segment of a population from another. A consumers lifestyle is seen as the sum of his interactions with his environment. Lifestyle studies are a component of the broader behavioural concept called psychographics

CHARACTERISTICS OF LIFESTYLE:
Group phenomenon Pervades various aspects of life Implies a central life interest Vary according to sociologically relevant variables AIO Inventories: (activities, interests, & opinions) Provides great insight into an individuals likes & dislikes as a consumer. Used as a research tool to determine influences on consumer behaviour & appropriate consumer market.

BUYING BEHAVIOUR

Assaels Four types:


HIGH INVOLVEMENT LOW INVOLVEMENT Variety Seeking Buying Behaviour

Significant Difference Between Brands Few Difference Between Brands

Complex Buying Behaviour

Dissonance Reducing Buying Behaviour

Habitual Buying Behaviour

CONSUMER INVOLVEMENT Consumer involvement is the perceived personal importance and/or interest consumers attach to the acquisition, consumption & disposition of a goods, services or an idea. Factors Influencing The Consumer Involvement: 1. Type of product 2. Characteristics of communication with consumer 3. Characteristics of situation under which the consumer is operating 4. Consumers personality

TYPES & LEVELS OF CONSUMER INVOLVEMENT:


Types of consumer involvement : 1. Situational involvement 2. Enduring involvement Levels of consumer decision making : 1. Routinized Response Behaviour (RRB) / Routine Decision Behaviour / Least Involvement Decision. 2. Limited Problem Solving(lps) / Limited Decision Making Level / Low Involvement Decision. 3. Extensive Problem Solving(eps) / Extensive Decision Making Level / High Involvement Decision.

ADOPTION PROCESS

The acceptance & continued use of a product or brand by an individual is referred to as Adoption. According to Philip Kotler adoption process is the mental process through which an individual passes from first hearing about an innovation to final adoption. Rogers defines the innovation process as the spread of a new idea from its source of invention or creation to its ultimate users or adopters.

STAGES OF ADOPTION PROCESS


Awareness Comprehensive Attitude Legitimating
Aware of Existence about the product Knowledge & understanding about the product Develops favourable or unfavourable behaviour about the product Convinced to buy the product Test & tries the product Whether or not to use the product

Trial Adoption

ADOPTER CATEGORIES
Adopter categories Innovators Early adopters Description Very eager products to try new Relative % 2.5 13.5

Check before adopting a new idea

Early majority
Late Majority

Adopt new ideas just prior to the average time


Adopt new ideas just after to the average time

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34

Laggards

The last people to adopt innovation

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100

DIFFUSION OF INNOVATION PROCESS

/ DIFFUSION

The diffusion process: Macro process that focuses on the spread of an innovation (a new product, service, or idea) from the source to the consuming public. Group phenomenon The adoption process: Micro process that examines the stages thrpigh which an individual consumer passes when making a decision to accept or reject a new product Individual phenomenon.

FACTORS INFLUENCING THE RATE OF


DIFFUSION Relative advantage: The degree to which an innovation is perceived as superior to the preceding products. Compatibility: the degree to which an innovation is consistent wit the existing products. Complexity: how difficult the innovation is to understand & use. Trialability: extent to which the innovation may be tried on a limited basis. Observability: communication of the innovation. Cost : magnitude of financial resources required to obtain & operate this innovation.

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