Paras Arora Mahesh Dontul Himanshu Saxena Chandan Kumar Singh

Behavioral Fundamentals = (P,E)

Personal interaction

Environment

Behavior
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Buying a product is a result of many things sum total of these things is Consumer Behavior

Buying decision made

Market and environmental stimulus

Consumer characteristics

Consumer Psychology

Involvement in Decision making

Consumer Decision making process

Marketing mix Cultural Education

Social, Personal, cultural

Motivation, Learning, Memory, Perception

High involvement Moderate involvement Low involvement

Five stage model

Consumer Behavior Simplified

Consumer is any one who can instill a stir in the market.

Creating effective visuals

Behavior is outcome of a persons interaction with the environment.

Consumer

Behavior

Initiator Gatekeeper Influencer Decider Buyer User Disposer

Individual Social Psychological

Consumer Behavior

Pre Purchase During Purchase Post Purchase

7 Os model of Buying Behavior

7 Os Occupants Objects Objectives Organizations

Details Individuals, Shops, Small offices, Educational and Research, Clinics, Restaurants, Fast food joints etc High power efficiency, Durability, Low maintenance, Aesthetics, Affordability, Efficient service, Brand name Comfort, luxury, Status symbol, Necessity, Maintenance of electronic equipment. Individuals- Entire family, Shops, Clinics, OrganizationsTechnical consultants, Stake holders etc Market place cash, Credit cards, Cheques, Demand Drafts, Electronic Fund transfer Climatic conditions, Discount, New residential or commercial establishments, Replacements etc Retail shops, Authorized dealers, Hypermarkets, Specialized markets, Online buying.
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Operations Occasion Outlets

Process model of Buying Behavior

ENVIRONMENTAL FACTORS Marketing Stimuli Environmental Stimuli BUYER'S BLACK BOX Buyer Characteristics Buyer Psychology Decision Process  Problem recognition  Information search  Evaluation of alternative  Purchase decision  Post-purchase behaviour

BUYER'S RESPONSE

 Product  Price  Place Promotion

 Economic  Technological  Political  Cultural  Demographic  Natural

 Cultural  Social  Personal

 Motivation  Perception  Learning  Memory

Product choice Brand choice Dealer choice Purchase timing Purchase amount

Factors Influencing Consumer Behavior

Buyer Personal a) Age b) Lifecycle stage c) Gender d) Income e) Education f) Personality g) Self concept h) Lifestyle

Cultural a) Culture b) Subculture c) Social Class

Social a) Family b) Friends c) Role d) Status

Physiological a) Motivation b) Learning c) Perception d) Attitude

Cultural
In USA In Japan

In Japan

In Korea

Cultural contd..

Subculture

Social class

This ad for Vibe Vixen magazine targets the African American urban subculture
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Personal

Age
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Personal Contd..

Gender

Self Concept Income

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Personal contd..

Life style

Education

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Social

Family

Friends

Status Role

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Phycological

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Consumer Involvement in Decision Making

LOW INVOLVEMENT

MODERATE INVOLVEMENT

HIGH INVOLVEMENT

Habitual decisions

Simple decisions

Lengthy decisions

eg. Tea, toothbrush, Washing powder.

eg. Skin creams ,TV microwave oven .

eg. Cars, Property

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Types of Buying Low involvement Hedonic

Utilitarian / Instrumental
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Variations in Consumer Choice Phenomena

Utilitarian / Instrumental
Feel Do (Know) Trigger = Impulse, Need, Pleasure Rationalizing evaluation of alternatives Process: Choice Heuristic: Buy What I Like Ultimate Choice: Satisfying Model Price as secondary concern

Low Involvement

Hedonic / Ego Expressive

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Variations in Consumer Choice Phenomena

Know Feel Do Trigger = Gap (actual Desired) Active Search Rational use of information; Rational evaluation of alternatives Process: Extensive Problem Solving routine response Choice Heuristic: Buy the Best Ultimate Choice: Trade off among competing alternatives Price as trade-off variable

Utilitarian / Instrumental

Low Involvement

Hedonic / Ego Expressive

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Variations in Consumer Choice Phenomena

Know Do Feel Trigger = Stock Depletion Passive Search Limited / No evaluation of alternatives; Rational Use of information Expectancy Confirming Process: Choice Heuristic: Buy the Familiar Buy the Cheapest Ultimate Choice: Satisfying Model Price as deciding Factor

Utilitarian / Instrumental

Low Involvement

Hedonic / Ego Expressive

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Variations in Usage Phenomena

Utilitarian / Instrumental

Low Involvement

Hedonic / Ego Expressive

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Variations in Consumer Usage Phenomena

Utilitarian / Instrumental

Loyalty = Affective Commitment Satisfaction = Brand Self Image Congruency Relationship = Love, Commitment, Self Concept Connection Relationship trial extensions, word of mouth, price premium, Missionary, Forgiveness, Tolerance

Low Involvement

Hedonic / Ego Expressive

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Variations in Consumer usage Phenomena

Loyalty = Reward for Performance Satisfaction = (Performance minus Expectations) compared to alternatives Relationship = Brand Partner Quality

Utilitarian / Instrumental

Relationship repeat, word of mouth, price premium

Low Involvement

Hedonic / Ego Expressive

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Variations in Consumer Usage Phenomena

Loyalty = Inertia, Habit Satisfaction = Absence of Negatives Relationship = Behavioral Interdependence Relationship predisposition to rebuy

Utilitarian / Instrumental

Low Involvement

Hedonic / Ego Expressive

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Marketing Considerations Across Core Motivational Conditions

Utilitarian / Instrumental

Keys to Continuity: Product Performance; Provision of Information Central Threat to continuity: Better Performing Alternative

Low Involvement
Keys to Continuity: Saliency of Brand, ensured product availability Central Threat to continuity: interrupts in purchase cycle

Hedonic / Ego Expressive

Keys to Continuity: Clear, Relevant articulation of Brand Image Central Threat to continuity: Change in self or brand image
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Types of Buying Decision Behavior

High Involvement Significant differences between brands Few differences between brands

Low Involvement

Complex Buying Behavior DissonanceReducing Buying Behavior

VarietySeeking Behavior Habitual Buying Behavior

Chapter 4 Version 3e

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Types of Buying behavior

Complex buying Variety seeking

Significant difference s between brands Few difference s between brands

Dissonance Reducing Behavior

Habitual Buying

High Involvement

Low Involvement
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Consumer Decision-Making Process

Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase Post purchase Behavior
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1) Need Recognition

Result of an imbalance between actual and desired states.

Marketing helps consumers recognize an imbalance between present status and preferred state

Result of an imbalance Internal Stimuli between actual and

and External Stimuli desired states.

Preferred State

Preferred state

Present Status
Present State
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1) Need Recognition-Case of a John& purchase of laptop

 I dont have a laptop ,I must have one  My laptop seems to be out of date, I should change.  There is a discount in International City this is the time.  It is mandatory for all MBA students. I want to play games and watch movies
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2) Information Search

Internal Information Search  Recall information in memory

External Information search  Seek information in outside environment   Non-marketing controlled Marketing controlled

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Information Search

Personal Sources

Family, friends, neighbors Most effective source of information Advertising, salespeople Receives most information from these sources Mass Media Consumer-rating groups Handling the product Examining the product 32 Using the product
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Commercial Sources

Public Sources

Experiential Sources

2) Search Information-Case of a John& purchase of laptop

 Memory scan  Consult Friends& Family  Browse through the internet  May visit computer showrooms  Start paying more attention to Computer ads in TV and Print media

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3) Evaluation of Alternatives

Evoked Set

Evaluation of Products
Analyze product attributes Use cutoff criteria Rank attributes by importance

Purchase!
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3) Evaluation of Alternatives-Case of a John& purchase of

laptop Attributes Laptops HP DELL SONY Acer Weight age Minimum cut off Size 8 7 10 5 0.4 6 Price 9 7 4 3 0.3 6 Warranty 6 7 3 8 0.2 6 Configuration 9 7 2 5 0.1 6

 Expectancy value model

 Consumer assigns different values for different attributes of a product  Conjunctive model  Consumer assigns a minimum cut-off value to each attribute.  Disjunctive model  Assign maximum weight age to one particular model
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Decision Making Sets

Total set APPLE DELL HP COMPAQ SONY ACER TOSHIBA BENQ MSN

Awareness Considerat Choice set set ion set HP DELL SONY ACER TOSHIBA APPLE HP DELL SONY ACER HP DELL

Decision HP

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Purchase Decision

Purchase Intention
Desire to buy the most preferred brand

Attitudes of Others

Unexpected Situational Factors

Purchase Decision
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Purchase Decision-case of John & laptop

 Unexpected situational Behavior

John saw an ad that i7 second generation processor is getting launched soon and he postponed his decision to buy laptop for time being Attitude of others Johns Father told to buy Dell as Dells service is better .John was forced to buy Dell.

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5) Post purchase Behavior

Cognitive Dissonance

Did I make a good decision? Did I buy the right product? Did I get a good value?

Can minimize through: Effective Communication Follow-up Guarantees Warranties

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Purchase Decision-case of John & laptop Satisfied John John will tell good things about his laptop to his friends and relatives and this may influence them to buy the same laptop as John. John will also be attracted towards other offering the same company Dissatisfied John  Spread bad word of mouth  May file a legal case Go to media

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