You are on page 1of 22

CONSUMER BEHAVIOUR

• • • • What influences consumer behaviour? Key psychological processes The buying decision process: 5-stage model Other theories of consumer decision making

THE AIM OF MARKETING IS TO MEET & SATISFY TARGET CONSUMER’S NEEDS & WANTS BETTER THAN COMPETITORS. CONSUMER BEHAVIOUR IS THE STUDY OF HOW INDIVIDUALS, GROUPS, & ORGANISATIONS SELECT, BUY, USE & DISPOSE GOODS, SERVICES, IDEAS, OR EXPERIENCES TO SATISFY THEIR NEEDS & WANTS. .

& DEVELOPING OTHER MARKETING ACTIVITIES.STUDYING CONSUMERS PROVIDES CLUES FOR IMPROVING OR INTRODUCING PRODUCTS OR SERVICES. SETTING PRICES. CRAFTING MESSAGES. MARKETERS ARE ALWAYS LOOKING FOR EMERGING TRENDS THAT SUGGEST NEW MARKETING OPPORTUNITIES . DEVISING CHANNELS.

WHAT INFLUENCES CONSUMER BEHAVIOUR ? • Cultural factors • Social factors • Personal factors .

Model of buyer behaviour Marketing stimuli other stimuli Buyer characteristics Cultural Social Personal Psychological Buyer’s decision process Problem recogitionInformation search Evaluation of alternatives Purchase decision Post-purchase behaviour Buyer’s decisions Product Price Place Promotion Economic Technological Political Cultural & W.O. Product choice Brand choice Dealer choice Purchase timing Purchase amount .M.

Input Information processing Decision process Need recognition Variables influencing decision process Exposure Stimuli: Marketing dominated Others Attention internal search Search Environmentael influences Beliefs Comprehension Memory Alternative Attitude evaluation Acceptance Retention External External Search Outcomes Purchase Intention Individual differences Disstisfaction Satisfaction .

self-concept Psychological: • Motivation. family. economic situation. perception.Factors affecting consumer behaviour Cultural: • Culture. sub-culture. lifestyle. beliefs & attitudes . personality. roles & status Personal: • Age & lifecycle. learning. social class Social: • Reference group. occupation.

Cultural factors • Culture • Subculture • Social stratification .

family of orientation .Social factors • Reference groups: reference groups .membership groups: *primary groups *secondary groups • Family: .family of procreation • Roles & statuses: .

critical life events & transitions • Occupation & economic circumstances .psychological life-cycle .family life cycle .Personal factors • Age & stage in life cycle: .

intelligent. honest. Competence (reliable.• Personality & self concept: Stanford’s Jennifer Aaker conducted research into brand personalities & identified following 5 traits: 1. Sincerity (down-to-earth. Excitement (daring. spirited. Sophistication (upper-class & charming) 5. & up-todate) 3.multitasking those who are time-constrained • money- . wholesome. imaginative.shaped partly by whether consumers are constrained or time-constrained . & cheerful) 2. Ruggedness (outdoorsey & tough) Lifestyle & values: . & successful) 4.

organises. & interprets information inputs to create a meaningful picture of the world Selective attention 1. People are more likely to notice stimuli that they anticipate 3. People are more likely to notice stimuli that relate to a current need 2. People are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli .KEY PSYCHOLOGICAL PROCESSES • Motivation: Freud’s theory Maslow’s theory Herzberg’s theory • Perception is the process by which an individual selects.

& how a person responds . Thru’ interplay of drives.- Selective distortion - Selective retention subliminal perception • Learning: involves changes in an individual’s behaviour arising from experience. stimuli. where. responses. & reinforcements: .cues are minor stimuli that determine when.drive is a strong internal stimulus impelling action .generalisation & discrimination . cues.

“available” but not” accessible” . Longer the time delay. Memory encoding refers to how & where information gets into memory. Interfernce with presence of other product information 2. strength of a brand association increases both the likelihood that the information will be accessible & the ease with which it can be recalled by “spreading activation” Apart from strength 3 othe r important factors: 1. Memory encoding can be characterised according to amount or quantity of processing that information receives at encoding: - memory processes: retrieval. According to associative network model. weaker the association 3.• Memory short-term memory long-term memory associative network memory brand association memory processes: encoding.

Active information search 4 groups of information searches: 1. Experiential Total set (8) awareness set (6) consideration set (4) choice set (3) decision (?) . Heightened attention 2. 2 levels of arousal: 1. Public 4. & entertainment options • Information search. vacation packages. Personal 2. particularly important for luxury goods.THE BUYING DECISION • Problem recognition: internal & external stimulation can trigger need can develop marketing strategies that trigger consumer interest. Commercial 3.

Sees each bundle of attributes with varying abilities for delivering benefits sought to satisfy this need Beliefs & attitudes Expectancy-value model .• Evaluation of alternatives: multiple processes: 1. Looking for certain benefits from from the product solution 3. Consumer trying to satisfy a need 2.

in other cases. consumers may decide not to formally evaluate each brand. Lexicographic heuristic 3. they adopt phased decision strategy that combines two or more decision rules . Conjunctive heuristic 2. Quantity 4. Payment method In some cases. Timing 5. intervening factors may afect the final decision Non-compensatory models of consumer choice: 1. Dealer 3. consumer may make upto 5 decisions: 1. Insome cases .• Purchase decisions. Elimination-by-aspects heuristic Consumers do not necessarily adopt only one type of choice rule in making purchase decisions. Brand 2.

Time risk .Intervening factors: * Attitude of others * Unanticipated situation factors Purchase decision heavily influenced by perceived risk: 1. Physical risk 3. Psychological risk 5.. Functional risk 2. Social risk 4.

Post-purchase satisfaction - Post-purchase actions Post-purchase use & recall .• Post-purchase behaviour: .

OTHER THEORIES OF CONMSUMER DECISION MAKING • Level of consumer involvement: .Elaboration likely-hood model Low involvement marketing strategies - Variety seeking behaviour .

Representative heuristics 3. Anchoring & adjustment heuristic .• Decision heuristics & biasis: Rule of thumb or or mental shortcuts in decision process: 1. Available heuristics 2.

4. INDIVIDUALS OFTEN SEGGREGATE THEIR SAVINGS INTO SEPARATE ACCOUNTS TO MEET DIFFERENT GOALS EVEN THOUGH FUNDS FROM ANY OF THE ACCOUNTS CAN BE APPLIED TO ANY OF THE GOALS” Mental accounting is based on a set of core principles: 1.g. Consumers tend to integrate losses Consumers tend to integrate smaller losses with larger gains Consumers tend to segregate small gains from large losses ... Consumers tend to segregate gains 2.• Mental accounting. e. “ THE TENDENCY TO CATEGORISE FUNDS OR ITEMS OF VALUE EVEN THOUGH THERE IS NO LOGICAL BASIS FOR CATEGORISATION . 3.