Big Data Analytics – unraveling the Big Mystery

Consumer Buying – A Recap

 What is Consumer Behaviour?

The psychological and behavioral processes involved

when individuals or groups

search, select, purchase or use

products, services, ideas or experiences

to satisfy their expected needs and desires

 Why study Consumer Behaviour?

By knowing how consumers behave and what

psychology go behind their behaviour....

Marketers can

-create communication strategies and

-take other Marketing-related actions

to influence consumers’ choices... profitably!

 Let’s get to the basics…

“CONSUMER” VS “CUSTOMER”

Who is a “Consumer”? And who is a “Customer”?

 “Consumer” vs “Customer”

Complan/Horlicks vs Bournvita as Milk Food Drink (MFD)

Other examples and an interesting read...

http://govinda-pd-mktg101.blogspot.in/p/the-customer-and-consumer-consumer.html
 Decision Making Process

• Need Recognition
• Information Search
• Evaluation of Alternatives
• Purchase activity
• Post-purchase Behaviour
 The Buying Roles

• INITIATOR
• INFLUENCER
• DECISION MAKER
• BUYER
• USER

e.g. A child comes back from school and says – Crayons are required
for Art & Craft classes next week
The Evoked Set
 The Consumer Buying Funnel

• All Brands in the product category

• Awareness Set of Brands
• Consideration Set
• Trial (Ever Tried Brands)
• Repeat Purchase
• Regular Usage
 How are these questions asked?
Awareness (TOM, Spontaneous)
Q1. When you think of shampoos, which brands come to your mind?
THE FIRST MENTIONED BRAND IS “TOM”, REST ARE
“OTHER SPONTANEOUS BRANDS”

Q2. (AIDED AWARENESS) Please have a look at this list of brands that
you have not mentioned. Which of these are you aware of?
TOTAL AWARENESS = TOM + OTHER SPONT +
AIDED
 Types of Buying Situations

Types of of buying situations of consumers, lot of

times, depend on two things
- Level of involvement
- Extent of brand differentiation
in the product category
 What is “Level of Involvement (LOI)”?

HOW MUCH OF TIME AND EFFORT IS SPENT IN THE

INFORMATION SEARCH AND DECISION MAKING
PROCESS FOR THE PRODUCT CATEGORY

HIGH LOI: Lot of time and effort is spent in info search

LOW LOI: Not much of time and effort is spent in info

search
 What is “Brand Differentiation”?

HOW MANY BRANDS ARE THERE IN THE PRODUCT

CATEGORY AND HOW DIFFERENTLY ARE THEY
POSITIONED IN THE MINDS OF THE CONSUMERS?
Types of Buying – Involvement vs Brand Differentiation

Based on LOI and Brand Differentiation, there can be 4

types of buying situations:

• Complex Decision Making

• Dissonance Reduction Buying
• Variety Seeking Buying Behaviour
• Habitual Buying Behaviour
 Consumer Decision Rules

• Compensatory

• Non-compensatory
 Rate the following brands in terms of your
preference on each attribute in a 1 – 5 scale, 5 =
Excellent,…, 1 = Poor
% Imp Dove Tresemme H&S Clear Sunsilk
Gives shiny hair
Cleans hair well
Removes dandruff
…

…
…

Compensatory
Good vfm Rule: Brand with highest weighted average score will be
selected
 A type of decision
rule in which a
consumer evaluates
each brand in terms
Compensatory
of each relevant
Decision Rules
attribute and then
selects the brand
with the highest
weighted score.
 Rate the following brands in terms of your
preference on each attribute in a 1 – 5 scale, 5 =
Excellent,…, 1 = Poor
% Imp Dove Tresemme H&S Clear Sunsilk
Gives shiny hair
Cleans hair well
Removes dandruff
…

…
…

Good vfm
Non-Compensatory rule: There has to be a minimum cut-off for each attribute
and then only, the brand can be selected
 A type of consumer
decision rule by which
Non- positive evaluation of
compensatory a brand attribute does
Decision not compensate for a
Rules negative evaluation of
the same brand on
some other attribute.
The Consumer Decision Making Model