Consumer Behavior

Remember Me?
I'm the fellow who goes into a restaurant, sits down and patiently waits while the waitresses do everything but take my order. I'm the fellow who goes into a department store and stands quietly while the sales clerks finish their little chitchat. I'm the man who drives into a petrol pump and never blows his horn, but waits patiently while the attendant finishes chatting with his colleagues.

Contd.
"Yes, you might say, I'm a good guy. But do you know who else I am? I am the fellow who never comes back, and it pleases me to see you spending thousands of rupees every year to get me back into your store, when I was there in the first place, and all you had to do to keep me was to give me a little service; show me a little courtesy." Source: From a Business Bureau bulletin submitted by A Reader

Consumer Behavior

Consumer Behavior is the Process Involved When Individuals or Groups Select, Use, or Dispose of Products, Services, Ideas or Experiences (Exchange) to Satisfy Needs and Desires.

Types of Consumer Buying Behavior

Routine Response Limited Decision Making Extensive Decision Making Impulse Buying

Routine Response / Programmed Behavior

Frequently purchased low cost items. Low involvement required. Little search and decision effort

Purchased almost automatically.

Examples- routine response

Limited Decision Making

Occasional buying. When information is needed for a unfamiliar brand in a familiar product category. Requires a moderate amount of time for information gathering. Loyalty to a brand

Examples- limited decision

Extensive Decision Making

Complex process- requires high involvement unfamiliar, expensive, infrequently bought products. High degree of economic/performance/psychological risk. Lot of time spent seeking information and deciding.

Examples- extensive decision

Impulse Buying
Basis - purchase of the same product does not always elicit the same Buying Behavior. Reason determines the extent of decisionmaking.

Examples- impulse buying

THIS

or

THIS ??

going for the dinner- reason can be an anniversary celebration, or a meal with a couple of friends.

Tata Steel used steeljunction to encourage consumers to go steel shopping and to develop deeper understanding of individual and household customers.

What Influences Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors

What is Culture?
Culture is the fundamental determinant of a persons wants and behaviors acquired through socialization processes with family and other key institutions.

Subcultures
Nationalities

Religions

Geographic regions

Social Classes
Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers

Characteristics of Social Classes

Within a class, people tend to behave alike Social class conveys perceptions of inferior or superior position Class may be indicated by a cluster of variables (occupation, income, wealth) Class designation is mobile over time

Social Factors

Reference groups

Family

Social roles

Statuses

Reference Groups
Membership groups

Primary groups

Secondary groups

Provogue uses teenage icons as brand ambassadors and a youth targeted website to connect to its customers

Roles and Status

What degree of status is associated with various occupational roles?

Personal Factors
Age
Selfconcept Lifestyle Values Personality Life cycle stage

Occupation
Wealth

The Family Life Cycle

Lifestyle Influences

Multi-tasking

Time-starved
Money-constrained

Faysal Bank of Pakistan has extended banking hours for time-pressed executives.

Model of Consumer Behavior

Key Psychological Processes

Motivation

Perception

Learning

Memory

Motivation

Maslows Hierarchy of Needs Behavior is driven by the lowest, unmet need

Maslows Hierarchy of Needs

Perception
Selective Attention

Selective Distortion

Selective Retention

Consumer Buying Process

Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior

Problem Recognition

Sources of Information

Personal

Commercial

Public

Experiential

Successive Sets Involved in Consumer Decision Making

Stages between Evaluation of Alternatives and Purchase

Perceived Risk
Functional Physical Financial Social

Psychological
Time

Post Purchase Behavior

Post Purchase Satisfaction Post Purchase Actions