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CONSUMER BEHAVIOUR

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•Process starts much before the goods have been acquired or bought.•The psychology of how consumers think. and then the post-purchase behavior shows the acceptance of goods/service by the end user. •The psychology of how the consumer is influenced by his environment. feel and select between different alternatives. •Consumer behavior can be defined as the decision-making process and physical activity involved in acquiring. . using and disposing of goods and services. evaluating. •Process of decision-making for purchase and using the goods.

consumer Influences organizational Influences obtaining consuming disposing consumer Behavior .

consumer Influences • organizational Influences • Brand • Product Features • Advertising • Word of Mouth • Promotions • Retail Displays • Price • Quality • Service • Store Ambiance • Convenience • Loyalty Programs • Packaging • Product Availability Culture • Ethnicity • Personality • Family • Life-stage • Values • Income • Available Resources • Attitudes • Opinions • Feelings • Motivations • Past Experiences • Peer Groups • Knowledge .

Obtaining How you decide you want to buy Other products you consider buying Where you buy How you pay for product Consuming How you use the product How you store the product in your home Who uses the product How much you consume How product compares with expectations Disposing How you get rid of remaining product How much you throw away after use If you resell items yourself or through a consignment store How you recycle some products How you transport product home .

Methods of Studying Consumer Behavior • Observation • In-home observation: examining how and when consumers use and consume products in their households • Shadowing: following and observing consumers in the shopping and consumption processes. and MRI . galvanic skin response. Researchers may ask questions about reasons for behaviors • Physiological methods: Techniques borrowed from medicine. psychology and other sciences including cameras to measure eye movement.

buying.Consumer Research Methods • Interviews and Surveys • Surveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys. mall intercepts. and mail questionnaires) • Focus Groups: a group discussion led by a moderator skilled in persuading consumers to thoroughly discuss a topic of interest • Longitudinal Studies: repeated measures of activities over time to determine changes in opinions. and consumption behaviors .

Field experiment and package design • Independent variables might include number of advertisements • Dependent variables might include purchase intent or behavior .Laboratory experiment .Consumer Research Methods • Experimentation • Attempts to understand cause-and-effect relationships by carefully manipulating independent variables to determine how these changes affect dependent variables • .

Consumer Research Methods • Consumption Research • Builds on the three primary research methods to examine how people use products and services rather than how they buy them • May use ethnographic tools to under-stand how values and culture influence usage of products and other behaviors • May identify new uses for existing products or new product to satisfy unmet or changing consumer needs .

The Underlying Principles of Consumer Behavior: .

CONTRIBUTING AREAS OF CONSUMER BEHAVIOUR .

CONTRIBUTING AREAS OF CONSUMER BEHAVIOUR  ECONOMICS  PSYCHOLOGY  SOCIOLOGY  SOCIO PSCHOLOGY  ANTHROPOLOGY .

ECONOMICS DEMAND   SUPPLY  INCOME  PURCHASING POWER .

PSYCHOLOGY  NEEDS AND MOTIVATION  PERSONALITY  PERCEPTION  LEARNING  ATTITUDES .

SOCIOLOGY  SOCIETY  SOCIAL CLASS  POWER  ESTEEM  STATUS .

SOCIO PSYCHOLOGY  GROUP BEHAVIOUR  GROUP INFLUENCES  CONFIRMITY TO GROUP NORMS .

ANTHROPOLOGY  VALUES  BELIEF  JOINT FAMILY SYSTEM .

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WHY MARKET SEGMENTATION • Identifying additional benefits desired by the consumer • Willingness of consumers to pay for the additional benefits • Firm to determine a suitable pricing strategy • Firm to develop an appropriate distribution strategy • Plan marketing activities around the consumers .

Criteria for selecting Market Segment • Identification • Measurability • Accessibility • Substantiality • Stability .

Bases For Segmentation • Geographic Segmentation • Demographic Segmentation • Psychological Segmentation • Socio Cultural Segmentation • Benefit Segmentation .

Factors Influencing Consumer Behaviour • Cultural Factors • Social Factors • Personal Factors • Psychological Factors. .