Consumer Behavior

The Decision Process and Physical activity individuals engage in, while Evaluating , Acquiring, Using and Disposing of Good & Services.

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 The psychology of how consumers think, feel, reason, and

select between different alternatives (e.g., brands, products).

The psychology of how the consumer is influenced by his or

her environment (e.g., culture, family, media).

Limitations in consumer knowledge or information processing

abilities influence decisions and marketing outcome.

How marketers can adapt and improve their marketing

campaigns and marketing strategies to more effectively reach the consumer.

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Factors Influencing Consumer Behavior Cultural & Social

Culture Sub-Culture

Personal & Psychological

Age Occupation

Social Class
Reference Groups Family

Lifestyle
Personality Self Concept Motivation Learning Attitude Perception
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Role and Status

Consumer Behavior Roles

Initiator Influencer Decider

Buyer
User

The above roles can be played by a Single Consumer or may be observed by Different People.
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Why study Consumer Behavior

Significance in Daily Lives. Application to Decision Making.
Micro Perspective Organizational towards achieving its Objectives.
Level Perspective

Societal Perspective Considering influence of Consumers on Society and Economy, deciding what to produce, for whom and how.

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Applications of Consumer Behavior

1.

Marketing Management. i. Market Opportunity Analysis ii. Target Market Selection iii. Marketing Mix Determination (Product, Price, Place, Promotion) Govt. Decision Making 1. Exploring Growth Avenues 2. Consumer Protection

2.

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3.

Non Profit Org. & Social Marketing. Awareness Campaigns

4.

De-marketing De-marketing: Efforts to encourage the consumer to reduce the consumption of a particular Product or Service

5.

Consumer Education Studying our own purchase Behavior

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Relationship Between Marketing & CB

Market Analysis - Company -Competitors -Conditions -Consumers Market Strategy -Product -Price -Place -Promotion

Market Segmentation

Consumer Outcomes -Individual -Firm -Society

Decision Process
-Problem -Info Search -Alternatives -Purchase, use , dispose
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 Product
What size, shape and features should the product

have? How should it be packaged? What type of warranties and service programs should be provided? What type of accessories and associated products should be offered? Etc.

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 Price
How price aware are the consumers in the relevant

product category? How sensitive are consumers to price differences among brands? How large a price reduction is needed to encourage purchases? What other discounts/offers could be made? etc

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 Place
What type of retail outlet should sell the firms

offerings? Where should they be located and how many should be there? What arrangements are needed to distribute products to retailers? What image and clientele should the retailer seek to cultivate? Etc.

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 Promotions
What methods of promotion are best for each

specific situation? What are the most effective means of gaining consumer attention? What methods best convey the intended message? How often a given ad should be repeated? Etc..

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 Think of a recent important purchase briefly draw a flowchart of the steps you recall moving through from the awareness of need to post purchase What influenced you at each step?

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