22104132 Consumer Buying Behaviour

8/9/2019 22104132 Consumer Buying Behaviour

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Definitions of CONSUMER BEHAVIORDefinitions of CONSUMER BEHAVIOR

The study of consumer behavior focusesThe study of consumer behavior focuseson how individuals make their decisions toon how individuals make their decisions to

spend their available resources (time,spend their available resources (time,money ,effort) on consumption relatedmoney ,effort) on consumption relateditemsitems

Consumer Behavior is the study of humanConsumer Behavior is the study of human

responses to products/services and theresponses to products/services and themarketing of products/servicesmarketing of products/services


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Significance of CONSUMERSignificance of CONSUMER

BEHAVIORBEHAVIOR The primary purpose of studying consumerThe primary purpose of studying consumer

behavior is why and how consumers make theirbehavior is why and how consumers make theirpurchase decisionspurchase decisions

To understand marketing and environmentalTo understand marketing and environmentalstimulistimuli

To know the factors influencing consumerTo know the factors influencing consumerbehaviorbehavior

To know how consumers will respond toTo know how consumers will respond todifferent product features,prices,advertisementdifferent product features,prices,advertisementappealsappeals


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BEHAVIORBEHAVIOR To distinguish different consumer groupsTo distinguish different consumer groups

and to develop products that satisfy theand to develop products that satisfy the

needs.needs. To understand how consumers makeTo understand how consumers make

purchasing choices amongpurchasing choices amongproducts/services.products/services.

To know why same consumer is attractedTo know why same consumer is attractedto different productsto different products


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BEHAVIORBEHAVIOR Continuously upgrading the consumerContinuously upgrading the consumer

To know what features or product designTo know what features or product designacceptable by consumeracceptable by consumer

To understand the buying roles of theTo understand the buying roles of theconsumerconsumer

To predict post purchase satisfaction orTo predict post purchase satisfaction or

dissatisfaction behaviordissatisfaction behavior Making the consumer individualistic moreMaking the consumer individualistic more

consciousconscious


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BEHAVIORBEHAVIOR Consumer behavior is the field ofConsumer behavior is the field of

interdisciplinary dimensionsinterdisciplinary dimensions

PsychologyPsychology The study of individualsThe study of individuals individual behaviorindividual behavior attitudes, values,attitudes, values,belief, perception, learning, personality,belief, perception, learning, personality,motivationmotivation

SociologySociology the study of groupsthe study of groups groupgroupbehaviorbehavior social class, reference groups,social class, reference groups,group dynamicsgroup dynamics


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BEHAVIORBEHAVIOR Socio PsychologySocio Psychology deals withdeals with

interpersonal behaviorinterpersonal behavior behavior ofbehavior of

individuals in group contextindividuals in group context intergroupintergroupcollaboration, group decisioncollaboration, group decision making,making,integration of individual needs with groupintegration of individual needs with groupneedsneeds

AnthropologyAnthropology Influence of the cultureInfluence of the cultureand society on individual.and society on individual.


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Model of consumer buying processModel of consumer buying process

Components of consumer buying processComponents of consumer buying processa) Identify buying rolesa) Identify buying rolesb) buyingb) buying behaviourbehaviour

c) buying researchc) buying researchSteps in buying processSteps in buying processa) Need/recognitiona) Need/recognitionb) Informational searchb) Informational search

c) evaluation of alternativesc) evaluation of alternativesd) purchase decisiond) purchase decisione) Post purchasee) Post purchase behaviourbehaviour


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Buying rolesBuying roles

Initiator/InfluencerInitiator/Influencer provides informationprovides informationabout the product/serviceabout the product/service

GatekeeperGatekeeper controls the flow ofcontrols the flow ofinformationinformation

DeciderDecider decides whether to shop thedecides whether to shop the

purchase or notpurchase or not BuyerBuyer involves in actual purchase or theinvolves in actual purchase or the

productproduct


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PreparerPreparer transforms the product intotransforms the product intoconsumptionconsumption

MaintainerMaintainer provides repair/maintenanceprovides repair/maintenanceservicesservices

UserUser use or consume the productuse or consume the product

DisposerDisposer decides whether to continue ordecides whether to continue ordiscontinue in using the productdiscontinue in using the product


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Types of buyingTypes of buying behaviourbehaviour

Complex buyingComplex buying behaviourbehaviour It is aIt is a behaviourbehaviour ofofthe consumer when the purchase is highlythe consumer when the purchase is highly

inexpensive or the products which are boughtinexpensive or the products which are boughtinfrequently and riskyinfrequently and risky

Dissonance reducing buyingDissonance reducing buying behaviourbehaviour-- It is aIt is a

behaviourbehaviour when the consumer is confronted withwhen the consumer is confronted witha unfamiliar brand name in a familiar producta unfamiliar brand name in a familiar productclassclass


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Habitual buyingHabitual buying behaviourbehaviour -- It is aIt is abehaviourbehaviour when the consumer doesnt findwhen the consumer doesnt finddifficulty in making a purchase due todifficulty in making a purchase due toawareness of brandsawareness of brands

Novelty seeking buyingNovelty seeking buying behaviourbehaviour -- It is aIt is abehaviourbehaviour when the consumer involves inwhen the consumer involves in

the purchase for novel or new brandsthe purchase for novel or new brands


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Buying ResearchBuying Research

The methods used in conducting buyingThe methods used in conducting buyingresearch :research :

a)a) Focus Group InterviewFocus Group Interview

b)b) InIn--depth Interviewdepth Interview

c)c) Projective TechniquesProjective Techniques


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a)a) Focus Group InterviewFocus Group Interview -- conducted by aconducted by atrained moderator in a natural manner with atrained moderator in a natural manner with a

group of respondents. A focus group is agroup of respondents. A focus group is a

sample of respondents from the specifiedsample of respondents from the specified

target market. Focus group interview takestarget market. Focus group interview takesplace in the form of freeplace in the form of free--flowing groupflowing group

discussion among various target groups. Thediscussion among various target groups. The

moderator plays a key role to establish themoderator plays a key role to establish therapport with the participants to keep therapport with the participants to keep the

discussion moving forward and probe thediscussion moving forward and probe the

respondents to elicit insights into the problem.respondents to elicit insights into the problem.


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Model of consumer buyingModel of consumer buying

processprocessApplications of focus group interviewApplications of focus group interview Understanding consumer perceptions,Understanding consumer perceptions,

perceptions concerning a product categoryperceptions concerning a product category

Obtaining impression of new productObtaining impression of new productconceptsconcepts

Generating ideas about new and existingGenerating ideas about new and existing

productsproducts Developing creative concepts ofDeveloping creative concepts of

advertising copy from the consumeradvertising copy from the consumer


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Model of consumer buyingModel of consumer buyingprocessprocess

Detailed understanding the complicatedDetailed understanding the complicatedbehavior of the consumer and otherbehavior of the consumer and othergroupsgroups

Situations where product consumptionSituations where product consumptionexperience is sensory in nature ( which isexperience is sensory in nature ( which isemotional in nature)emotional in nature)

c)c) Projective techniquesProjective techniques an unstructuredan unstructured

and indirect form of questioning thatand indirect form of questioning thatencourages the respondent to projectencourages the respondent to projecttheir underlying motivations, attitudes,their underlying motivations, attitudes,belief etc regarding the issue of concern.belief etc regarding the issue of concern.


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In projective techniques, the respondentsIn projective techniques, the respondentsare asked to interpret the behavior ofare asked to interpret the behavior ofothers rather than their own behaviorothers rather than their own behavior

Ex of projective techniquesEx of projective techniques wordwordassociation tests, sentence completionassociation tests, sentence completiontests, story completion tests, picturetests, story completion tests, pictureresponse or TAT ( Thematic Apperceptionresponse or TAT ( Thematic ApperceptionTest), Role playing, Third personTest), Role playing, Third person

techniques etc.techniques etc. Word association testWord association test respondents arerespondents are

presented with the help of words one at apresented with the help of words one at atime and are asked to respond to each withtime and are asked to respond to each with

the first word that comes in mindthe first word that comes in mind


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Sentence completion testSentence completion test respondentsrespondentsare provided with the part of story andare provided with the part of story andrequired to give conclusion in their ownrequired to give conclusion in their ownwords.words.

Picture response or TAT ( ThematicPicture response or TAT ( ThematicApperception Test)Apperception Test) the respondents arethe respondents are

shown a picture and asked to tell a storyshown a picture and asked to tell a storydescribing it.describing it. Role playingRole playing respondents are asked torespondents are asked to

assume the behavior of someone else andassume the behavior of someone else and

have to rolehave to role--play their behavior.play their behavior.


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Model of consumer buyingModel of consumer buyingprocessprocess

Third person techniqueThird person technique in whichin whichrespondents are presented with verbal orrespondents are presented with verbal orvisual situation and are asked to relatedvisual situation and are asked to relatedthe beliefs and attitudes of a third person.the beliefs and attitudes of a third person.The third person may be friend,The third person may be friend, neighbourneighbouror family etcor family etc


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2) steps in buying process2) steps in buying process

a)a) Need/recognitionNeed/recognition -- It starts when theIt starts when the

buyerbuyer recognisesrecognises a problem or needa problem or need b)b) Informational searchInformational search InformationInformation

about the felt need by the consumers canabout the felt need by the consumers canbe collected through various sourcesbe collected through various sources personal sources, commercial sources,personal sources, commercial sources,public sources, experimental sourcespublic sources, experimental sources


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Evaluation of alternativesEvaluation of alternatives -- ConsumerConsumerevaluates various alternatives beforeevaluates various alternatives beforemaking a purchasemaking a purchase quality, price etcquality, price etc

Purchase decisionPurchase decision -- The factors thatThe factors thatinfluence the purchase decision areinfluence the purchase decision areproduct choice, brand choice, dealerproduct choice, brand choice, dealer

choice, purchase timing & purchasechoice, purchase timing & purchaseamountamount


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Post purchasePost purchase behaviourbehaviour -- After making aAfter making apurchase the consumer experiencespurchase the consumer experiencessatisfaction or dissatisfaction in using thesatisfaction or dissatisfaction in using theproductproduct

Types of post purchaseTypes of post purchase behaviourbehaviour

Post purchase satisfactionPost purchase satisfaction the defectsthe defectsidentified by the consumer should beidentified by the consumer should bereplacedreplaced


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Post purchase actionPost purchase action If the consumer isIf the consumer ishighly satisfied then there is a highhighly satisfied then there is a highprobability of repeated purchaseprobability of repeated purchase

Post purchase use and disposalPost purchase use and disposal If theIf theconsumer finds a new use after using theconsumer finds a new use after using theproduct, that should be highlighted by theproduct, that should be highlighted by the

company through advertisingcompany through advertising


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Product InnovationProduct Innovation

Product Innovation refers to newProduct Innovation refers to new -- idea,idea,concept, method, practice, product orconcept, method, practice, product orservice which is perceived by someone asservice which is perceived by someone asnewnew

Innovations take time to penetrate intoInnovations take time to penetrate intothe members of the social systemthe members of the social system


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Product AdoptionProduct Adoption

Adoption refers to the acceptance orAdoption refers to the acceptance orcontinual use of new product or brand bycontinual use of new product or brand bythe individualsthe individuals

Adoption is a stepAdoption is a step--byby--step mental processstep mental processof adopting or accepting a new productof adopting or accepting a new product

Adoption is the process by which theAdoption is the process by which theindividual passes several stages to arriveindividual passes several stages to arriveat decision in using a new productat decision in using a new product


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Adoption ProcessAdoption Process

Stages in Adoption processStages in Adoption process

a) Awarenessa) Awareness consumer is exposed toconsumer is exposed to

innovation, but lacks informationinnovation, but lacks information b) Comprehensionb) Comprehension consumer hasconsumer has

information & understanding about theinformation & understanding about thenew product. It reveals the interestnew product. It reveals the interesttowards the producttowards the product


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c) Attitudec) Attitude refers to favourable orrefers to favourable orunfavourable disposition of the consumerunfavourable disposition of the consumertowards the producttowards the product

d) Legitimisationd) Legitimisation refers torefers to thetheconsumers are highly convinced about theconsumers are highly convinced about thenew productnew product

e) Triale) Trial The product is tested beforeThe product is tested beforeacceptanceacceptance


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f) Adoption or rejectionf) Adoption or rejection If the trial isIf the trial ispositive, the product is accepted orpositive, the product is accepted orotherwise the product is rejectedotherwise the product is rejected

ConclusionConclusion

Adoption process is helpful in managingAdoption process is helpful in managingproduct innovation and also in designingproduct innovation and also in designingpromotional strategypromotional strategy


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Categories of AdoptersCategories of Adopters

Early majorityEarly majority constitute 34% of the totalconstitute 34% of the totalmarket . They are just before the averagemarket . They are just before the averagemember of the social class.member of the social class.

Late majorityLate majority constitute 34% of the totalconstitute 34% of the totalmarket. They are skeptical . The people aremarket. They are skeptical . The people areafter the average member of the social classafter the average member of the social class

LaggardsLaggards constitute 16% of total market. Theyconstitute 16% of total market. Theyare last to adopt new product. They are havingare last to adopt new product. They are havinglow social economic status. They have lesslow social economic status. They have lessinterest to try new product and spend less oninterest to try new product and spend less onpromotionpromotion


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Diffusion of innovationDiffusion of innovation

Diffusion refers to the acceptance of theDiffusion refers to the acceptance of theinnovation which is spread by theinnovation which is spread by thecommunication(mass media, salesman,communication(mass media, salesman,

opinion leaders) to the members of theopinion leaders) to the members of thesocial system over a period of timesocial system over a period of time

Diffusion refers how new product capturesDiffusion refers how new product capturestarget markettarget market

Diffusion is the aggregate of all individualsDiffusion is the aggregate of all individualsdecision to adopt new productdecision to adopt new product


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Factors influence the rate of diffusionFactors influence the rate of diffusion

These factors explain what is theThese factors explain what is thedefinition of new product or when it isdefinition of new product or when it iscalled the new product according tocalled the new product according to

consumers)consumers)FactorsFactors

1)1) Firm oriented definitionFirm oriented definition consistent withconsistent with

the view that a firm which is capable ofthe view that a firm which is capable ofcopy or modify the competitors productcopy or modify the competitors productwas qualified as new productwas qualified as new product


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2)2) Product oriented definitionProduct oriented definition

a) continuous innovationa) continuous innovation it refers to theit refers to theintroduction of the modified product rather thanintroduction of the modified product rather than

new productnew product

b) dynamically continuousb) dynamically continuous creation of newcreation of newproducts rather than modified productsproducts rather than modified products

c) discontinuous innovationc) discontinuous innovation consumers feelconsumers feeldifficulty to adopt the patterns of new productdifficulty to adopt the patterns of new product


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3)3) Market oriented definitionMarket oriented definition A product isA product isconsidered new if it is relatively purchasedconsidered new if it is relatively purchasedby the majority of the potential marketby the majority of the potential market

4)4) Consumer oriented definitionConsumer oriented definition

a) relative advantagea) relative advantage the degree to whichthe degree to whichthe potential customer perceive a newthe potential customer perceive a newproduct as superior to competitorsproduct as superior to competitors


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b) compatibilityb) compatibility the degree to whichthe degree to whichpotential customer feel a new product ispotential customer feel a new product isconsistent with the needs of the consumerconsistent with the needs of the consumer

c) complexityc) complexity the degree to which the newthe degree to which the newproduct is difficult to understand its usageproduct is difficult to understand its usageby the consumersby the consumers

d)d) trialabilitytrialability the degree to which the newthe degree to which the newproduct is suitable to try before usage atproduct is suitable to try before usage atfree of costfree of cost


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e)e) observabilityobservability the degree to which thethe degree to which theproduct benefits or attributes can beproduct benefits or attributes can bedescribed to potential consumers by thedescribed to potential consumers by thecompany sourcescompany sources


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Organizational buyingOrganizational buying

process/Industrial buying processprocess/Industrial buying process DefinitionDefinition : It is defined as the decision: It is defined as the decision--

making process by which formalmaking process by which formalorganizations establish the need fororganizations establish the need forpurchased products/services to identify,purchased products/services to identify,evaluate and choose among alternativeevaluate and choose among alternativebrands and suppliers.brands and suppliers.

It was developed by Fredrick E Webster &It was developed by Fredrick E Webster &YoramYoram WindWind


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Characteristics/features ofCharacteristics/features ofOrganizational buying processOrganizational buying process

1) The organizational buyers are called as1) The organizational buyers are called asproducer/manufacturer business units consists ofproducer/manufacturer business units consists ofall the individuals/organizations who acquireall the individuals/organizations who acquire

goods/services that enter into the production ofgoods/services that enter into the production ofother products/services that are sold, rented orother products/services that are sold, rented orsupplied to others.supplied to others.

2) The various types of organizational buying2) The various types of organizational buying

units are in the areas of services, agriculture,units are in the areas of services, agriculture,forestry, fisheries, wholesalers, retailers,forestry, fisheries, wholesalers, retailers,construction units, farming, governmental unitsconstruction units, farming, governmental unitsetc.etc.


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Characteristics/features of Organizational buyingCharacteristics/features of Organizational buyingprocessprocess

6) Technical knowledge6) Technical knowledge They are professionalThey are professional

buyers and are quitebuyers and are quite knowledgableknowledgable aboutaboutproducts/services. Their purchase is directed byproducts/services. Their purchase is directed bytechnically competent individuals.technically competent individuals.

7) Rational Motivators7) Rational Motivators they are economical inthey are economical innature and the costs & benefits are carefullynature and the costs & benefits are carefullyweighed. Product quality specifications,weighed. Product quality specifications,consistency, assurance, delivery, credit terms,consistency, assurance, delivery, credit terms,

warranty are other elements influencing in thewarranty are other elements influencing in theselection of vendors.selection of vendors.

8) Formal procedures8) Formal procedures involves proposals,involves proposals,quotation requests, purchasing contracts, pricequotation requests, purchasing contracts, price

and product specificationsand product specifications


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Characteristics/features of OrganizationalCharacteristics/features of Organizationalbuying processbuying process

9) Complexity9) Complexity It requires consciousIt requires consciousconsiderations with higher financial risksconsiderations with higher financial risks

10) lengthy negotiations10) lengthy negotiations the size of the orderthe size of the order

is large and purchaser price is very important.is large and purchaser price is very important. 11) Derived demand11) Derived demand the demand for industrialthe demand for industrial

goods will ultimately be derived from thegoods will ultimately be derived from thedemand for consumer goodsdemand for consumer goods

12) Inelastic demand12) Inelastic demand if the total demand forif the total demand forthe industrial product remains affected by pricethe industrial product remains affected by pricechanges then demand is inelasticchanges then demand is inelastic


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Ex: the footwear manufacturers are not going toEx: the footwear manufacturers are not going tobuy more leather if the price of the leatherbuy more leather if the price of the leatherreduces.reduces.

13) Fluctuating demand13) Fluctuating demand the nature of thethe nature of thedemand in industrial goods is highly volatiledemand in industrial goods is highly volatile

14) Straight/routine14) Straight/routine rebuyrebuy It is a buyingIt is a buyingsituation where the purchaser will reorder thesituation where the purchaser will reorder theproduct without any modificationproduct without any modification

Ex: electricity, water, office supplies etcEx: electricity, water, office supplies etc


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15) Modified15) Modified rebuyrebuy It is a buyingIt is a buyingsituation where buyer/purchaser wants tosituation where buyer/purchaser wants tomodify product specifications/prices.modify product specifications/prices.

16) Reciprocal buying16) Reciprocal buying a papera papermanufacturer will by necessary equipmentmanufacturer will by necessary equipmentfrom chemical manufacturer whichfrom chemical manufacturer which inturninturnbuys the stationery from the paperbuys the stationery from the papermanufacturermanufacturer

17) Leasing17) Leasing organizational buyers go fororganizational buyers go forequipment leasing instead of outrightequipment leasing instead of outright

purchasepurchase


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Steps in Organizational/Industrial buyingSteps in Organizational/Industrial buyingprocessprocess

1) Problem recognition1) Problem recognition

2) Need description2) Need description

3) Vendor search3) Vendor search 4) Proposal request4) Proposal request

5) Vendor selection5) Vendor selection

6) Purchase routine selection6) Purchase routine selection 7) Post purchase evaluation7) Post purchase evaluation


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1) Problem recognition1) Problem recognition for ex:for ex:breakdown of the machine which requiresbreakdown of the machine which requiresreplacement of new parts immediatelyreplacement of new parts immediately

2) Need description2) Need description Industrial buyerIndustrial buyertends to define product , quality as thetends to define product , quality as thecombination which fits the product to usecombination which fits the product to usein the future.in the future.

3) Vendor search3) Vendor search In this organizationIn this organizationtries to identify companies who may be thetries to identify companies who may be theappropriate suppliers of the specifiedappropriate suppliers of the specified

roductroduct


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Organizational buyers have a wide rangeOrganizational buyers have a wide rangeof informational sources to use in theirof informational sources to use in theirassessment of products & suppliers.assessment of products & suppliers.

4) Proposal request4) Proposal request the company maythe company maysend a request for proposal to qualifiedsend a request for proposal to qualifiedvendor asking them to bid based onvendor asking them to bid based on

product specification.product specification. 5) Vendor selection5) Vendor selection the vendor selectionthe vendor selection

is based on the following criteria :is based on the following criteria :


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Overall reputation of the supplier, financingOverall reputation of the supplier, financingterms, technical service offered,terms, technical service offered,convenience in placing the order, data onconvenience in placing the order, data on

the reliability of product, quality or price,the reliability of product, quality or price,reliability of the delivery time promised,reliability of the delivery time promised,repair and maintenance service after therepair and maintenance service after thedate of purchase.date of purchase.

6) Purchase routine selection6) Purchase routine selection InvolvesInvolvesplacing an order specifying all terms withplacing an order specifying all terms withvendor who processes it and ships thevendor who processes it and ships the

product. It is then received, approved andproduct. It is then received, approved and


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payment is made. Companies oftenpayment is made. Companies oftennegotiate a contract to cover purchase overnegotiate a contract to cover purchase overspecific length of timespecific length of time

7) Post purchase evaluation7) Post purchase evaluation involvesinvolvesevaluation of suppliers performance by theevaluation of suppliers performance by thebuyer. It rates the suppliers performancebuyer. It rates the suppliers performanceperiodically based on quality, price,periodically based on quality, price,delivery, post sales service. Vendors maydelivery, post sales service. Vendors mayalso receive the report so that they mayalso receive the report so that they maymodify their performance for bettermodify their performance for better

customer service.customer service.


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Cognitive Dissonance TheoryCognitive Dissonance Theory

Cognitive dissonance is a tension betweenCognitive dissonance is a tension betweentwo opposite thoughts after consumer hastwo opposite thoughts after consumer hasbought something. The consumer isbought something. The consumer isuncertain of the purchase decision he hasuncertain of the purchase decision he hasmade ( whether it is right choice or not)made ( whether it is right choice or not)

This theory was developed by the formerThis theory was developed by the former

Stanford University PsychologistStanford University Psychologist LeonLeonFestingerFestinger in 1957in 1957

CognitionCognition A thought about an objectA thought about an object


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Cognitive dissonance refers to theCognitive dissonance refers to thetendency of consumers to worry about thetendency of consumers to worry about thewisdom of major purchases after theywisdom of major purchases after theyhave been made.have been made.

Ex: A product positioned as a luxuryEx: A product positioned as a luxuryproduct with an elegant design, expensiveproduct with an elegant design, expensivepackaging, limited distribution, and adspackaging, limited distribution, and ads

that stress exclusiveness should not bethat stress exclusiveness should not bepriced at or below an average productpriced at or below an average productcreate dissonance in the minds ofcreate dissonance in the minds of

consumersconsumers


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This theory suggests that we have anThis theory suggests that we have aninner drive to hold all our attitudes andinner drive to hold all our attitudes andbeliefs in harmony to avoidbeliefs in harmony to avoiddisharmony(dissonancedisharmony(dissonance discomfort)discomfort)

This theory refers to the situation involvingThis theory refers to the situation involvingconflicting attitudes, beliefs or behaviors.conflicting attitudes, beliefs or behaviors.Due to this it creates a discomfort which isDue to this it creates a discomfort which is

called dissonance.called dissonance. When cognitive dissonance occurs after aWhen cognitive dissonance occurs after a

purchase, it is called post purchasepurchase, it is called post purchase

dissonance.dissonance.


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For instance : when consumers have madeFor instance : when consumers have madea commitmenta commitment -- made a down payment ormade a down payment orplaced an order for a expensive productplaced an order for a expensive product(laptop), they often begin to feel cognitive(laptop), they often begin to feel cognitivedissonance when the unique qualities ofdissonance when the unique qualities ofthe brand not selected i.e., left behindthe brand not selected i.e., left behind

The principle of this theory is to reduceThe principle of this theory is to reducepost purchase dissonance in consumerpost purchase dissonance in consumerpurchase decisionpurchase decision


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Cognitive Dissonance TheoryCognitive Dissonance Theory When the individual is consistent with theWhen the individual is consistent with the

target behavior and the target attitude thentarget behavior and the target attitude thenit results in consonance. When there isit results in consonance. When there isinconsistency between the target behaviorinconsistency between the target behavior

and the target attitude then it resultsand the target attitude then it resultsdissonance ( which is the theme ofdissonance ( which is the theme ofcognitive dissonance).cognitive dissonance).

Ex: I like driving car , but if the drivingEx: I like driving car , but if the drivingresults in accidents or frequent repairs thenresults in accidents or frequent repairs thenit creates discomfort or dissonanceit creates discomfort or dissonance


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Cognitive Dissonance TheoryCognitive Dissonance Theory In this ex: driving car is (target behaviorIn this ex: driving car is (target behavior --A)A) and as a result of accident and repairand as a result of accident and repairwhich results negative attitude towards thewhich results negative attitude towards theproduct ( target attitudeproduct ( target attitude -- B).B).

This theory states that cognitions areThis theory states that cognitions areconsonant, dissonant and irrelevant.consonant, dissonant and irrelevant.Cognitions are consistent or consonantCognitions are consistent or consonant if Aif A

implies B ( Aimplies B ( A Behavior , BBehavior , B Attitude).Attitude).Cognitions are consonant when one followsCognitions are consonant when one followsfrom the another on the basis of logic orfrom the another on the basis of logic orexperience.experience.


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Cognitions can be inconsistent or dissonantCognitions can be inconsistent or dissonantif A is opposite of B. Cognitions areif A is opposite of B. Cognitions aredissonant when they are opposed to onesdissonant when they are opposed to onesexperience and the relationship of events.experience and the relationship of events.

Ex: when an individual buys an expensiveEx: when an individual buys an expensivecar but is not suitable of long drives then itcar but is not suitable of long drives then itis said to be dissonantis said to be dissonant

Cognitions can be unrelated or irrelevant ifCognitions can be unrelated or irrelevant ifA is not related to B. cognitions are totallyA is not related to B. cognitions are totallyirrelevant when two events are notirrelevant when two events are not

interrelated.interrelated.


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Cognitive Dissonance TheoryCognitive Dissonance Theory The extent to which dissonance depends onThe extent to which dissonance depends on

the significance of the purchase decision,the significance of the purchase decision,attractiveness of the rejected alternative, theattractiveness of the rejected alternative, thenumber of the negative views in the choicenumber of the negative views in the choice

made, number of options considered ,made, number of options considered ,whether the choice is made (forced orwhether the choice is made (forced orvoluntary).voluntary).

Dissonance can be reduced by :Dissonance can be reduced by :

ii)changing his/her attitudes)changing his/her attitudes

ii) beliefs based on the situation, activelyii) beliefs based on the situation, activelyseeking the positive information aboutseeking the positive information about


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Cognitive Dissonance TheoryCognitive Dissonance Theory iii)selective exposureiii)selective exposure It is the tendencyIt is the tendency

to avoid information inconsistent withto avoid information inconsistent withones attitudes/beliefsones attitudes/beliefs


Cognitive dissonance helps to reduce postCognitive dissonance helps to reduce postpurchase dissonance in consumerpurchase dissonance in consumerpurchase decision.purchase decision.

It applies to all situations involving attitudeIt applies to all situations involving attitudeformation and change.formation and change.

It results in problemIt results in problem--solving and decisionsolving and decision--

makingmaking


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Motivation is a drive that impels theMotivation is a drive that impels theindividual to his goal. For ex: as hungerindividual to his goal. For ex: as hungerman impels to eat , so does dissonanceman impels to eat , so does dissonance

impels a person to change individualimpels a person to change individualoutcomes or behavior.outcomes or behavior.

The marketers need to design consistentThe marketers need to design consistent

marketing mix that matches consumersmarketing mix that matches consumersattitudes, beliefs etc to reduce dissonanceattitudes, beliefs etc to reduce dissonance


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Opinion LeadershipOpinion Leadership

Opinion Leaders are the individuals whoOpinion Leaders are the individuals whoactively seek information and advice aboutactively seek information and advice aboutproducts/services.products/services.

Opinion leaders are also called asOpinion leaders are also called asinfluentials.influentials.

Ex: Any satisfied customer is a opinionEx: Any satisfied customer is a opinionleader.leader.

Opinion leaders have strong informalOpinion leaders have strong informalrelationships with the endrelationships with the end--users.users.


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Opinion LeadershipOpinion Leadership Features/characteristics of opinion leadersFeatures/characteristics of opinion leaders

They are socially more active than endThey are socially more active than endusersusers

Opinion leaders are primarily communityOpinion leaders are primarily communitysocial leaders whom the mass market issocial leaders whom the mass market isassociated because of snob appeal.associated because of snob appeal.

Opinion leaders are found in all the areas ofOpinion leaders are found in all the areas of

society and a specific person can become asociety and a specific person can become aopinion leader to a certain product areasopinion leader to a certain product areasand they act as opinion followers to someand they act as opinion followers to some

other areas.other areas.


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Opinion LeadershipOpinion Leadership People who primarily interact within socialPeople who primarily interact within social

class and acquire their lifestyle and otherclass and acquire their lifestyle and otherideas from people like themselves are calledideas from people like themselves are calledas opinion leaders.as opinion leaders.

Opinion leaders are the sources of bothOpinion leaders are the sources of bothinformation and advice. It is a two wayinformation and advice. It is a two wayprocess. The consumers can seek theprocess. The consumers can seek the

following information :following information : Ex: which of the brands are the best, whereEx: which of the brands are the best, where

to shop, who provides the best service, howto shop, who provides the best service, how

to make use of the specific product etcto make use of the specific product etc


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SelfSelf involvement motivatorsinvolvement motivators reducereducepost purchase uncertainty. Gain attentionpost purchase uncertainty. Gain attentionor status. Assert superiority and expertise.or status. Assert superiority and expertise.

ProductProduct--involvement motivatorsinvolvement motivators expressexpresssatisfaction or dissatisfaction with asatisfaction or dissatisfaction with aproduct/serviceproduct/service

Social involvement motivatorsSocial involvement motivators expressexpress

neighbourhoodness and friendship byneighbourhoodness and friendship bydiscussing about product/service that maydiscussing about product/service that maybe useful to others.be useful to others.


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MessageMessage involvementinvolvement express onesexpress onesreaction to a stimulating advertisement byreaction to a stimulating advertisement bytelling others about ittelling others about it

Innovativeness, willingness to talk, selfInnovativeness, willingness to talk, self--confidence, adaptability, gregariousness,confidence, adaptability, gregariousness,diffusion etc are some of the qualities ofdiffusion etc are some of the qualities of

the opinion leaders.the opinion leaders.


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Opinion LeadershipOpinion Leadership Measurement techniques for determiningMeasurement techniques for determining

opinion leadershipopinion leadership

Self designating methodSelf designating method EachEachrespondent is asked a series of questionsrespondent is asked a series of questions

to determine the degree to which he/sheto determine the degree to which he/sheperceives as an opinion leader. Thisperceives as an opinion leader. Thismethod measures the individuals selfmethod measures the individuals self

perceptionperception Ex:Ex: do you influence other people in thedo you influence other people in the

selection of the productsselection of the products


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Opinion LeadershipOpinion Leadership SociometricSociometric methodmethod the members of thethe members of the

social system are asked to identify whomsocial system are asked to identify whomthey give advice and to whom they go forthey give advice and to whom they go foradvice and information about a productadvice and information about a product

category. This method measures thecategory. This method measures thepattern of the individuals living in thepattern of the individuals living in thesociety.society.

Ex: whom do you ask, who asks you forEx: whom do you ask, who asks you forinformation about product category.information about product category.


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Opinion LeadershipOpinion Leadership Key informant methodKey informant method carefully selectedcarefully selected

key information in a social system arekey information in a social system areasked to designate as opinion leadersasked to designate as opinion leaders

Ex: who are the most influential people inEx: who are the most influential people in

the groupthe group

Objective MethodObjective Method it artificially placesit artificially placesindividuals in a position to act as opinionindividuals in a position to act as opinion

leaders and measures the results of theirleaders and measures the results of theirefforts. It measures the individuals abilityefforts. It measures the individuals abilityto influence others.to influence others.


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Opinion Leaders are the individuals whoOpinion Leaders are the individuals whoactively seek information and advice aboutactively seek information and advice aboutproducts/services. Opinion leaders may beproducts/services. Opinion leaders may bethe friends,the friends, neighboursneighbours, family members ,, family members ,leaders of the social community.leaders of the social community.

Opinion leadership is effective due to theOpinion leadership is effective due to theeffective wordeffective word--ofof--mouth communicationmouth communication


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Opinion LeadershipOpinion Leadership Measurement techniques for determiningMeasurement techniques for determining

opinion leadershipopinion leadership

Self designating methodSelf designating method

SociometricSociometric methodmethod

Key informant methodKey informant method

Objective MethodObjective Method


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ConsumerismConsumerism

Consumerism is a social force which makesConsumerism is a social force which makesthe business community more honest,the business community more honest,efficient, responsive and responsible.efficient, responsive and responsible.

Consumerism makes manufacturers &Consumerism makes manufacturers &sellers compelled to adopt fair tradesellers compelled to adopt fair tradepractices.practices.

Consumerism can be viewed as anConsumerism can be viewed as an

opportunity for businessmen to serve theopportunity for businessmen to serve theconsumers in a better and moreconsumers in a better and more effecienteffecientway.way.


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Features/ CharacteristicsFeatures/ Characteristics It proves to be a weapon for marketers toIt proves to be a weapon for marketers to

effectively implement the societal concepteffectively implement the societal conceptof marketing.of marketing.

It helps the consumers to get rid ofIt helps the consumers to get rid oftraders who resort to practices fromtraders who resort to practices fromhoarders, black marketers etc.hoarders, black marketers etc.

It ensures that government takesIt ensures that government takesnecessary measures to protect thenecessary measures to protect theconsumer interests by guaranteeing theirconsumer interests by guaranteeing their

legitimate rights.legitimate rights.


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ConsumerismConsumerism It makes the marketers to provide the trueIt makes the marketers to provide the true

information in their advertisements, truthinformation in their advertisements, truthabout labeling & product performance.about labeling & product performance.

Consumerism is the collective action of theConsumerism is the collective action of the

consumers to protect their own interest.consumers to protect their own interest.

It has three determinantsIt has three determinants business,business,government and consumers itself.government and consumers itself.

Through consumerism, it is the moralThrough consumerism, it is the moralresponsibility of the manufacturer toresponsibility of the manufacturer toprovide the necessary instructions manualprovide the necessary instructions manual

to the consumers along with the productto the consumers along with the product

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ConsumerismConsumerism To ensure that the products are safe,To ensure that the products are safe,

products are tested before getting it affixedproducts are tested before getting it affixedwith the necessary quality standardswith the necessary quality standardsapproval.approval.

Consumer educationConsumer education information andinformation andknowledge about company, product etc.knowledge about company, product etc.

Consumerism is anyConsumerism is any organisedorganised movementmovement

of citizens and government to enhance theof citizens and government to enhance therights and power of buyer in relation torights and power of buyer in relation tosellers.sellers.


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Factors influencing consumerismFactors influencing consumerism

Poverty & backwardness of the countryPoverty & backwardness of the country

Explosive population growthExplosive population growth UnemploymentUnemployment

IlliteracyIlliteracy

Inability to understand the technicalInability to understand the technicalcomplexity of the product.complexity of the product.

Disparities in the distribution of income &Disparities in the distribution of income &

wealth.wealth.


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ConsumerismConsumerism The Consumer Protection Act , 1986The Consumer Protection Act , 1986

It is an important legislation passed by theIt is an important legislation passed by thegovernment of India to ensure a propergovernment of India to ensure a propersystem in the protection of consumer rightssystem in the protection of consumer rights

and theand the redressalredressal of consumer disputes.of consumer disputes. The objectives of this act areThe objectives of this act are

To provide for the better protection of theTo provide for the better protection of the

interests of the consumersinterests of the consumers To make establishment of consumerTo make establishment of consumer

councils and authorities for the settlementcouncils and authorities for the settlement

of consumer disputes.of consumer disputes.

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ConsumerismConsumerismAccording to section 2(d) of this act, heAccording to section 2(d) of this act, he

who purchases goods for consideration andwho purchases goods for consideration andwho hires any services for consideration iswho hires any services for consideration isa consumer.a consumer.

To protect the legitimate rights of theTo protect the legitimate rights of theconsumer.consumer.

It includes all the servicesIt includes all the services banking,banking,

finance, insurance, transportation etcfinance, insurance, transportation etc This act also ensures right to giveThis act also ensures right to give

protection against marketing of goodsprotection against marketing of goodswhich are hazardous, dangerous to life &which are hazardous, dangerous to life &


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ConsumerismConsumerism Right to give correct information on theRight to give correct information on the

quality, quantity, purity and standards ofquality, quantity, purity and standards ofthe products/services delivered by thethe products/services delivered by thecompany.company.

To protect the consumer from unfair tradeTo protect the consumer from unfair tradepractices from the marketers.practices from the marketers.

The right to be able to make a choice fromThe right to be able to make a choice from

a variety of products at competitive prices.a variety of products at competitive prices. The right to seekThe right to seek redressalredressal against unfairagainst unfair

trade practices and exploitation.trade practices and exploitation.

The right to consumer educationThe right to consumer education


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ConsumerismConsumerism Topics coveredTopics covered

Features of ConsumerismFeatures of Consumerism

Factors influencing ConsumerismFactors influencing Consumerism

The Consumer Protection Act, 1986The Consumer Protection Act, 1986

StatutoryStatutory Regulators Consumer ProtectionRegulators Consumer ProtectionActAct

22104132 Consumer Buying Behaviour

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Transcript of 22104132 Consumer Buying Behaviour