22300725 Consumer Behaviour Models

8/4/2019 22300725 Consumer Behaviour Models

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CONSUMER BEHAVIOURCONSUMER BEHAVIOUR


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CONCEPT OF CONSUMER BEHAVIORCONCEPT OF CONSUMER BEHAVIOR

The study of consumer behavioris the study ofhowThe study of consumer behavioris the study ofhowindividuals make decisions to spend of what they buy,individuals make decisions to spend of what they buy,why they buy it, when they buy it, where they buy it,why they buy it, when they buy it, where they buy it,where they buy it, how often they buy it, and how oftenwhere they buy it, how often they buy it, and how oftenthey useit.they useit.

the decision process and physicalactivity individualsthe decision process and physicalactivity individualsengagein when evaluating, acquiring, using, orengagein when evaluating, acquiring, using, ordisposing of goods & services.disposing of goods & services.


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SEVERAL ASPECTSSEVERAL ASPECTS

Customers and ConsumersCustomers and Consumers The Ultimate ConsumerThe Ultimate Consumer

Individual buyerIndividual buyer

The decision processThe decision process A Subset of Human BehaviorA Subset of Human Behavior


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Buying MotivesBuying Motives

DEFINITION:DEFINITION:

According to W.J Stanton,According to W.J Stanton,

A motive can be defined as a drive oranA motive can be defined as a drive oranurge for whichan individual seeksurge for whichan individual seekssatisfaction. It becomes a buying motivesatisfaction. It becomes a buying motivewhen theindividual seeks satisfactionwhen theindividual seeks satisfactionthrough the purchase of something.through the purchase of something.


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Behavioris a goal directed activityBehavioris a goal directed activity

Motive/NeedMotive/Need Goal (preparing)Goal (preparing)

(Hungry)(Hungry)

GoodsGoods

(Food)(Food) BehaviorBehavior Goal AchievementGoal Achievement

(Eating)(Eating)


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CONSUMER GOODSCONSUMER GOODS INDUSTRIAL GOODSINDUSTRIAL GOODS

1.1. Used by end user for theirUsed by end user for theirown consumptionown consumption

2.2.

Generall

yinex

pens

iveGenerall

yinex

pens

ive

3.3. Areless complexAreless complex

4.4. Are purchase frequentlyAre purchase frequently

1.1. Used for furtherUsed for furtherproduction of other goodsproduction of other goods

(raw material(raw material))

2.2. AreexpensiveAreexpensive

3.3. Are more complexAre more complex

4.4. Are one time purchaseAre one time purchasegoodsgoods


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IMPORTANCE OF CONSUMER BEHAVIORIMPORTANCE OF CONSUMER BEHAVIOR

The study of consumer behaviouris vitalin framingThe study of consumer behaviouris vitalin framingproduction policies, price policies, decisions regardingproduction policies, price policies, decisions regardingchannels of distribution and aboveall decisionschannels of distribution and aboveall decisions

regarding sales promotion.regarding sales promotion.1.1. Production PoliciesProduction Policies

2.2. Price PoliciesPrice Policies

3.3. Decision regarding Channels ofDistributionDecision regarding Channels ofDistribution

4.4. Decision regarding Sales PromotionDecision regarding Sales Promotion


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MODEL OF BUYER BEHAVIOURMODEL OF BUYER BEHAVIOUR

MAJOR FACTORS INFLUENCING BUYING BEHAVIOURMAJOR FACTORS INFLUENCING BUYING BEHAVIOUR

MARKETINGMARKETINGSTIMULISTIMULI

OTHEROTHERSTIMULISTIMULI

PRODUCTPRODUCT

PRICEPRICE

PLACEPLACE

PROMOTIONPROMOTION

ECONOMICECONOMIC

TECHNOLOGICALTECHNOLOGICAL

POLITICALPOLITICAL

CULTURALCULTURAL

BUYERSBUYERSCHARACTERISTICSCHARACTERISTICS

BUYERS DECISIONBUYERS DECISIONPROCESSPROCESS

CULTURALCULTURAL

SOCIALSOCIAL

PERSONALPERSONALPSYCHOLOGICALPSYCHOLOGICAL

PROBLEM RECOGNITIONPROBLEM RECOGNITION

INFORMATION SEARCHINFORMATION SEARCH

EVALUATION OFEVALUA

TION OFALTERNATIVESALTERNATIVES

PURCHASE DECISIONPURCHASE DECISION

POST PURCHASEPOST PURCHASEBEHAVIOURBEHAVIOUR

BUYERS DECISIONSBUYERS DECISIONS

PRODUCT CHOICEPRODUCT CHOICE

BRAND CHOICEBRAND CHOICE

DEALER CHOICEDEALER CHOICE

PURCHASE TIMINGPURCHASE TIMINGPURCHASE AMOUNTPURCHASE AMOUNT


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WHY WE STUDY COUNSUMER BEHAVIOR/WHY WE STUDY COUNSUMER BEHAVIOR/IMPORTANCE OF CONSUMER BEHAVIORIMPORTANCE OF CONSUMER BEHAVIOR


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IMPORTANCE OF CONSUMER BEHAVIOR

IMPORTANCE FOR CONSUMERIMPROTANCE FOR MARKETING

IMPORTANCE FOR STUDENTSAPPLICATION TO DECISION MAKING


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APPLICATION OF CONSUMER BEHAVIORAPPLICATION OF CONSUMER BEHAVIOR


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APLICATION OF CBAPLICATION OF CB

CBAND

MKTING MGMT

CB & NONPROFIT&SOCIAL MKTING

CB &DE-MKTING

CB & CONSUMEREDUCATIONS

CB & GOVTALDECISION MAKING


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CB AND MARKETINGCB AND MARKETING

MANAGEMENTMANAGEMENTThe process of planning and executingThe process of planning and executing1.1. The conceptionThe conception

2.2. PricingPricing

3.3. PromotionPromotion

4.4. Distribution ofideasDistribution ofideas

5.5. Goods & services to exchangesGoods & services to exchanges

6.6. Satisfy individualand organizational objectives.Satisfy individualand organizational objectives.


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Three interrelated orientations are:Three interrelated orientations are:

Consumer wants & needs

Company objectives

Integrated strategy


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Several major activities can be undertaken by an organizationSeveral major activities can be undertaken by an organization

Market opportunity

Analysis

Target market

sele

ction

Marketing mixdeterminants

needsUnique market

wants

income

lifestyle

Ex: soft drinks

Food storesegments

Vending machinesegments

The fountainmarket

PRODUCT

PRICE

PLACE

PROMOTION


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CONSUMER BEHAVIOR & NONPROFIT & SOCIAL MARKETINGCONSUMER BEHAVIOR & NONPROFIT & SOCIAL MARKETING

A number of writers have suggested thatvarious socialA number of writers have suggested thatvarious socialand non p

rofit o

rganisations c

an b

evie

wed

ashavi

ngand non p

rofit o

rganisations c

an b

evie

wed

ashavi

ngservices orideas that they areattempting to market toservices orideas that they areattempting to market totarget group ofconsumer orconstituents.target group ofconsumer orconstituents.


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MARKET SEGMENTATIONMARKET SEGMENTATION


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CONCEPT & DEFINITIONCONCEPT & DEFINITIONThe concept of market segmentation is based on the fact that the market ofThe concept of market segmentation is based on the fact that the market of

commodities are nothomogenous but they areheterogeneous. Marketcommodities are nothomogenous but they areheterogeneous. Marketrepresenta group of customers having common charecteristicesbut tworepresenta group of customers having common charecteristicesbut twocustomers are never common in their nature, habits,hobbies, incomeandcustomers are never common in their nature, habits,hobbies, incomeandpurchase techniques.purchase techniques.


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Definition of segmentationDefinition of segmentation

According to Philip Kotler, whenevera market foraAccording to Philip Kotler, whenevera market foraproduct or service consists of two or more buyers, theproduct or service consists of two or more buyers, themarketis capable of being segmented, thatis dividedmarketis capable of being segmented, thatis dividedinto meaningful buyer groups. The purpose ofinto meaningful buyer groups. The purpose ofsegmentation is to determine differences among buyerssegmentation is to determine differences among buyerswhich may be consequentialin choosing away then orwhich may be consequentialin choosing away then ormarketing to them.marketing to them.


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LEVELS OF MARKET SEGMENTSLEVELS OF MARKET SEGMENTS

SEGMENT MARKETINGSEGMENT MARKETING

NICHE MARKETINGNICHE MARKETING

LOCAL MARKETINGLOCAL MARKETING INDIVIDUAL MARKETINGINDIVIDUAL MARKETING


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IMPORTANCE OF MARKET SEGMENTATIONIMPORTANCE OF MARKET SEGMENTATION

ADJUSTMENT OF PRODUCT AND MARKET APPEALSADJUSTMENT OF PRODUCT AND MARKET APPEALS

BETTER POSITION TP SPOT MARKETING OPPORTUNITIESBETTER POSITION TP SPOT MARKETING OPPORTUNITIES

ALLOCATION OF MARKETING BUDGETALLOCATION OF MARKETING BUDGET

MAKING THE COMPETITION EFFECTIVELYMAKING THE COMPETITION EFFECTIVELY

EVALUATION OF MARKETING PROGRAMMEEVALUATION OF MARKETING PROGRAMME

EVALUATION OF MARKETING ACTIVITIESEVALUATION OF MARKETING ACTIVITIES

INCREASE IN SALES VOLUMEINCREASE IN SALES VOLUME


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CONSUMER BEHAVIOUR MODELSCONSUMER BEHAVIOUR MODELS

INPUT

INPUT

PROCESSPROCESS

OUTPU

TOU

TPU

T

INITIATION:INITIATION:

INFLUENCERINFLUENCER

DECIDERDECIDER


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Decision framework for studying consumerDecision framework for studying consumerbehaviourbehaviour

ExternalenvironmentalvariablesExternalenvironmentalvariablesinfluencing behavior,influencing behavior,

Individual determinants of behaviour,Individual determinants of behaviour, The consumer decision processThe consumer decision process


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BUYING ROLES/ PARTICIPANTS IN THEBUYING ROLES/ PARTICIPANTS IN THE

BUYING PROCESSBUYING PROCESS

INITATORS:INITATORS:The person who first suggest & think of theidea of buying the particular product.The person who first suggest & think of theidea of buying the particular product.

INFLUENCER:INFLUENCER:The person who explicitly orimplicitly has someinfluence on the final buying decisionThe person who explicitly orimplicitly has someinfluence on the final buying decisionof others.of others.

DECIDER:DECIDER:the decideris a person who ultimately determines any part or whole of the buyingthe decideris a person who ultimately determines any part or whole of the buyingdecision, i.e., whether to buy, what to buy, how to buy, when to buy, or where todecision, i.e., whether to buy, what to buy, how to buy, when to buy, or where tobuy.buy.

BUYER:BUYER:

the buyeris the person who actually purchase. Buyer may be decider orthe buyeris the person who actually purchase. Buyer may be decider ormay be other person.may be other person.

USER:USER:the person who actually uses or consumes the services or products.the person who actually uses or consumes the services or products.


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EXTERNAL ENVIRONMENTAL VARIABLE INFLUENCINGEXTERNAL ENVIRONMENTAL VARIABLE INFLUENCING

BEHAVIOURBEHAVIOUR

INDIVIDUAL DETERMINANTSINDIVIDUAL DETERMINANTS

Information processingInformation processing

Learning and memoryLearning and memoryPersonality and self conceptsPersonality and self concepts

AttitudesAttitudes

Motivation and involvementMotivation and involvement


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INDIVIDUAL DETERMINANTS OF BEHAVIOURINDIVIDUAL DETERMINANTS OF BEHAVIOUR

CULTURAL INFUENCESCULTURAL INFUENCES

SUBCULTURAL INFLUENCESSUBCULTURAL INFLUENCES

SOCIAL CLASS INFLUENCESSOCIAL CLASS INFLUENCES SOCIAL GROUP INFLUENCESSOCIAL GROUP INFLUENCES

FAMILY INFLUENCESFAMILY INFLUENCES

PERSONAL INFLUENCESPERSONAL INFLUENCES OTHER INFLUENCESOTHER INFLUENCES


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DECISION PROCESSDECISION PROCESS

PROBLEM RECOGNITION

INFORMATION SEARCHAND EVALUATION

PURCHASING

POST PURCHASINGBEHAVIOUR


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Consumer beliefs and attitudesConsumer beliefs and attitudes

InnovatorsInnovators

Consumer confidenceConsumer confidence

Buying stylesBuying styles techno graphicstechno graphics


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CONSUMER INNOVATORSCONSUMER INNOVATORS


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INNOVATORSINNOVATORS

SEGMENTATION OF EARLY ADOPTERS OFSEGMENTATION OF EARLY ADOPTERS OFNEW PRODUCTS AND SERVICESNEW PRODUCTS AND SERVICES


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KEY CONSUMER BELIEFSKEY CONSUMER BELIEFS

Ifa productis made by a company I trustIfa productis made by a company I trustI will buy iteven ifitis slightly moreI will buy iteven ifitis slightly moreexpensive.expensive.

I buy based on quality not on price.I buy based on quality not on price. I am willing to pay more for the productI am willing to pay more for the product

thatis environmentally safe.thatis environmentally safe.

I always check theingredients andI always check theingredients andnutritional contents of food productsnutritional contents of food productsbefore I buy them.before I buy them.


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I buy the brand I grew up with the oneI buy the brand I grew up with the onemy mother used.my mother used.

I would pay extra fora product thatisI would pay extra fora product thatisconsistent with theimage I want toconsistent with theimage I want toconveyconvey

I am influenced by whats hotand whatsI am influenced by whats hotand whats

not.not. I prefer to buy the things by friends andI prefer to buy the things by friends and

my neighbors would approve of.my neighbors would approve of.


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Consumer Innovator Segments

Electronics

Leisure Innovators

Financial Food

Home Appliance


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INNOVATION ADOPTION MODELINNOVATION ADOPTION MODEL

DEVICED BYRogersDEVICED BYRogers

Awareness and interest of theaudienceareAwareness and interest of theaudiencearecreated by advertisers, so that the former maycreated by advertisers, so that the former may

evaluate the message ofadvertisement.evaluate the message ofadvertisement.

The potential purchaser, if satisfied with theThe potential purchaser, if satisfied with theattributes advertised, purchases a product on aattributes advertised, purchases a product on atrial basis.trial basis.

Product Comparision is made to evaluateeachProduct Comparision is made to evaluateeachand adopta particular product.and adopta particular product.


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INNOVATION ADOPTION MODELINNOVATION ADOPTION MODEL

INTEREST

EVALUATION

TRIAL

ADOPTION

AWARENESS


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DEFFUSION OF INNOVATIONDEFFUSION OF INNOVATION


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DIFFUSION OF INNOVATIONDIFFUSION OF INNOVATION

DEFINITIONDEFINITION

The framework forexploring consumerThe framework forexploring consumeracceptance of new products is drawn fromacceptance of new products is drawn fromthearea ofresearchknown as thethearea ofresearchknown as thediffusion ofinnovationdiffusion ofinnovation


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PROCESSES OF INNOVATIONSPROCESSES OF INNOVATIONS

DIFFUSION PROCESSESDIFFUSION PROCESSES

ADOPTION PROCESSADOPTION PROCESS

MACRO PROCESS

MICRO PROCESS


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DIFFUSION PROCESSDIFFUSION PROCESS

This is concerned withhow innovationThis is concerned withhow innovationspreadspread

Assimilation of product with the marketAssimilation of product with the market

Itis process ofacceptance ofanItis process ofacceptance ofaninnovation suchas a new product, newinnovation suchas a new product, newservices, new ideas, or new practices.services, new ideas, or new practices.

Mode of communication may be massMode of communication may be massmedia, sales people, informalmedia, sales people, informalconversation.conversation.


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Basic elements of diffusion processBasic elements of diffusion process

TheinnovationThe channels ofcommunication

Thesocal system time


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INNOVATIONINNOVATION

NO UNIFORM DEFINITON EXISTNO UNIFORM DEFINITON EXIST

THERE ARE OTHER FACTORS DEFINE THISTHERE ARE OTHER FACTORS DEFINE THISCONCEPTCONCEPT

1.1. FIRM ORIENTEDDEFINITIONFIRM ORIENTEDDEFINITION

2.2. PRODUCT ORIENTEDDEFINITIONPRODUCT ORIENTEDDEFINITION

3.3. MARKET ORIENTEDDEFINITIONMARKET ORIENTEDDEFINITION

4.4. CONSUMER ORIENTEDDEFINITIONCONSUMER ORIENTEDDEFINITION

5.5. FACTORS INFLUENSING THE RATE OF DIFFUSIONFACTORS INFLUENSING THE RATE OF DIFFUSION


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FIRM ORIENTED DEFINITIONSFIRM ORIENTED DEFINITIONS

A firmA firm oriented approach treats theoriented approach treats the

newn

ess of

aproduct f

rom t

heper

spective

newn

ess of

aproduct f

rom t

heper

spective

of the company producing or marketing it.of the company producing or marketing it.When the productis new to the company,When the productis new to the company,itis considered new. This definitionitis considered new. This definition

ignores whether or not the productisignores whether or not the productisactually new to the market place.actually new to the market place.


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PRODUCT ORIENTED DEFINITIONPRODUCT ORIENTED DEFINITION

In contrast to firm oriented definitions, aIn contrast to firm oriented definitions, aproductproduct-- oriented approach focuses on theoriented approach focuses on thefeatures inherentin the productitselfandfeatures inherentin the productitselfandon theeffects these features arelikely toon theeffects these features arelikely tohave on consumers established usagehave on consumers established usagepatterns.patterns.


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TYPES OF PRODUCT INNOVATIONTYPES OF PRODUCT INNOVATION

CONTINUOUS INNOVATIONCONTINUOUS INNOVATION

DYNAMICALLY CONTINOUS INNOVATIONDYNAMICALLY CONTINOUS INNOVATION

DISCONTINUOUS INNOVATIONSDISCONTINUOUS INNOVATIONS


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MARKET ORIENTED DEFINITIONSMARKET ORIENTED DEFINITIONS

It judges the newness ofa productin terms ofIt judges the newness ofa productin terms ofexposuresexposures

Two definitionsTwo definitions A productis considered new ifithas beenA productis considered new ifithas been

purchased by arelatively small (fixed)purchased by arelatively small (fixed)percentage of potential market.percentage of potential market.

A productis considered new ifithas been onA productis considered new ifithas been onthe market forarelatively short (specified)the market forarelatively short (specified)period of time.period of time.


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CONSUMER ORIENTED DEFINITIONCONSUMER ORIENTED DEFINITION

In this context, a new productis anyIn this context, a new productis anyproduct thata potential consumer judgesproduct thata potential consumer judgesto be new. Newness is based on theto be new. Newness is based on theconsumers perception of the product,consumers perception of the product,rather than on physical features or marketrather than on physical features or marketrealities.realities.


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FACTORS INFLUENCING THE RATEFACTORS INFLUENCING THE RATE

OF DIFFUSIONOF DIFFUSION

Diffusion researchers haveidentified sixDiffusion researchers haveidentified sixproducts characteristics that seem toproducts characteristics that seem toinfluence consumeracceptance of newinfluence consumeracceptance of new

products:products: RelativeadvantagesRelativeadvantages

CompatibilityCompatibility

Trialability (or divisibility)Trialability (or divisibility)

Observability (or Communicability)Observability (or Communicability) CostCost


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CHANNEL OF COMMUNICATIONCHANNEL OF COMMUNICATION

WAYS OF COMMUNICATIONWAYS OF COMMUNICATION

1.1. BETWEEN THE MARKET & CONSUMERSBETWEEN THE MARKET & CONSUMERS

2.2. AMONG CONSUMERSAMONG CONSUMERS

3.3. IMPERSONAL SOURCES SUCH ASIMPERSONAL SOURCES SUCH ASADVERTISING AND EDITORIAL MATTERSADVERTISING AND EDITORIAL MATTERS

4.4. INTERPERSONAL SOURCES SUCH AS SALESINTERPERSONAL SOURCES SUCH AS SALES

PEOPLE AND INFORMAL OPINION LEADERSPEOPLE AND INFORMAL OPINION LEADERS5.5. INTERACTIVE MARKETING MESSAGESINTERACTIVE MARKETING MESSAGES

(NEW CONCEPT)(NEW CONCEPT)


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SOCIAL SYSTEMSOCIAL SYSTEM

A social system is a physical, social, or culturalA social system is a physical, social, or culturalenvironment to which people belong and withenvironment to which people belong and within which they function.in which they function.

Characteristics of modern social system:Characteristics of modern social system:1.1. A positiveattitude towards changeA positiveattitude towards change

2.2. An advanced technology and skilled labour forceAn advanced technology and skilled labour force

3.3. A generalrespect foreducation and science.A generalrespect foreducation and science.

4.4. An emphasis on rationaland ordered socialrelationships,An emphasis on rationaland ordered socialrelationships,ra

ther

tha

nanemot

ion

alon

es.

rather

tha

nanemot

ion

alon

es.

5.5. An outreach prospectsAn outreach prospects

6.6. A system in which members can readily see themselves inA system in which members can readily see themselves inquite differentroles.quite differentroles.


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TIMETIME

Timeis the backbone of the diffusionTimeis the backbone of the diffusionprocess.process.

three

wayst

hreeways1.1. Purchase timePurchase time

2.2. Adopter categoriesAdopter categories

3.3. Rate of AdoptionRate of Adoption


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PURCHASE TIMEPURCHASE TIME

Purchase timerefers to theamount ofPurchase timerefers to theamount oftime thatelapse between consumers initialtime thatelapse between consumers initialawareness ofa new product or serviceawareness ofa new product or serviceand the pointat which they purchase orand the pointat which they purchase or

rejectit.rejectit.


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ADOPTER CATEGORIESADOPTER CATEGORIES

Itinvolves a classification scheme thatItinvolves a classification scheme thatindicates where a consumer stands inindicates where a consumer stands inrelation to other consumers in terms ofrelation to other consumers in terms oftimetime


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RATE OF ADOPTIONRATE OF ADOPTION

Therate ofadoption is concerned withTherate ofadoption is concerned withhow long it takes a new product orhow long it takes a new product orservices to beadopted by members ofaservices to beadopted by members ofasocial system. The generalveiw is that thesocial system. The generalveiw is that the

rate ofadoption for new products israte ofadoption for new products isgetting faster or shorter, Ex. fashiongetting faster or shorter, Ex. fashion


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ADOPTON PROCESSADOPTON PROCESSAdoption

Trial

Legitimating

Attitude

Comprehension

Awareness


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OPINION LEADERSHIPOPINION LEADERSHIP


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OPINION LEADERSHIPOPINION LEADERSHIP

DEFINITION:DEFINITION:

Opinion leaders are those people who areable, in aOpinion leaders are those people who areable, in agiven situation, to expert personalinfluence.given situation, to expert personalinfluence.


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CHARECTERISTICES OF OPINIONCHARECTERISTICES OF OPINION

LEADERSLEADERS

Social class positionSocial class position

Greaterexposure to mass mediaGreaterexposure to mass media

Greaterinterestand knowledge of theareas ofGreaterinterestand knowledge of theareas of

influenceinfluence More gregariousMore gregarious

MoreinnovativeMoreinnovative

More familiarand loyal to group standards andMore familiarand loyal to group standards and

valuesvalues Appear to exhibit the personality trait of publicAppear to exhibit the personality trait of public

individuation.individuation.


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MEASUREMENT OF OPINIONMEASUREMENT OF OPINION

LEADERSHIPLEADERSHIP

Consumerresearches areinterested inConsumerresearches areinterested inidentifying and measuring theimpacts ofidentifying and measuring theimpacts ofthe opinion leadership process onthe opinion leadership process on

consumption behavior.consumption behavior.


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BASIC MEASUREMENT TECHNIQUESBASIC MEASUREMENT TECHNIQUES

SelfSelf--Designating MethodsDesignating Methods

Sociometric MethodsSociometric Methods1.1. The specific individuals to whom they providedThe specific individuals to whom they provided

advice orinformation about the product or brandadvice orinformation about the product or brandunder studyunder study

2.2. The specific individuals who provided them withThe specific individuals who provided them withadvice orinformation about the product or brandadvice orinformation about the product or brandunder study.under study.

Key informant MethodsKey informant Methods

Objective MethodsObjective Methods


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USES OF OPINION LEADERSUSES OF OPINION LEADERS

Consumers, generally, do not speakaboutConsumers, generally, do not speakaboutproducts or services unless they expect toproducts or services unless they expect toderive somekind of satisfaction from thederive somekind of satisfaction from theactivity.activity.

1.1. ProductProduct-- InvolvementInvolvement

2.2. Sel

fSel

f-- Involve

mentIn

volve

ment

Gaining attentionGaining attention Showing connoisseurshipShowing connoisseurship Feeding likea pioneerFeeding likea pioneer Having Inside InformationHaving Inside Information Suggesting StatusSuggesting Status Spreading the GospelSpreading the Gospel Seeking ConfirmationSeeking Confirmation Asserting SuperiorityAsserting Superiority

3.3. OtherOther-- involvementinvolvement4.4. MessageMessage -- InvolvementInvolvement


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CONSUMER DECISION MAKING MODELCONSUMER DECISION MAKING MODEL


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MEANINGMEANING

A process by whicha person is required to makeA process by whicha person is required to makea choice from various alternative options isa choice from various alternative options isreferred to as decisionreferred to as decision-- making.making.

Providing consumers with otheralternativeis aProviding consumers with otheralternativeis agood business strategy and can also resultingood business strategy and can also resultinsubstantialincreasein sales. While for thesubstantialincreasein sales. While for theconsumer, he or she will be pleased when ableconsumer, he or she will be pleased when able

to chooseand decide on the best from theto chooseand decide on the best from thealternatives available.alternatives available.


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LEVELS OF CONSUMER DECISIONLEVELS OF CONSUMER DECISION

MAKINGMAKING

SPECIFIC LEVELS OF CONSUMERSPECIFIC LEVELS OF CONSUMERDECISION MAKINGDECISION MAKING

1.1. EXTENSIVE PROBLEM SOLVINGEXTENSIVE PROBLEM SOLVING

2.2. LIMITED PROBLEM SOLVINGLIMITED PROBLEM SOLVING

3.3. ROUTINIZED RESPONSE BEHAVIORROUTINIZED RESPONSE BEHAVIOR

4.4. VARIETY SEEKINGVARIETY SEEKING


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Extensive problem solvingExtensive problem solving

The consumer needs a great deal ofThe consumer needs a great deal ofinformation to establisha set of criteria oninformation to establisha set of criteria onwhich to judge specific brands and awhich to judge specific brands and a

correspondingly largeamount ofcorrespondingly largeamount ofinformation concerning each of the brandsinformation concerning each of the brandsto be considered.to be considered.


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The marketerhas to ensure two tasksThe marketerhas to ensure two tasks

1.1. The marketer must continue to provideThe marketer must continue to providesatisfaction to theexisting customers bysatisfaction to theexisting customers by

maintaining quality, serviceand value.maintaining quality, serviceand value.

2.2. He must try to attract new customers byHe must try to attract new customers bymaking use of sales promotion techniquesmaking use of sales promotion techniqueslike point of purchase displays, offlike point of purchase displays, off--pricepriceoffers, etc., and also introduce new featuresoffers, etc., and also introduce new featuresto the products.to the products.


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LIMITED PROBLEM SOLVINGLIMITED PROBLEM SOLVING

Consumers already haveestablished theConsumers already haveestablished thebasic criteria forevaluating the productbasic criteria forevaluating the productcategory and thevarious brands in thecategory and thevarious brands in the

category. Their search foradditionalcategory. Their search foradditionalinformation is morelikefineinformation is morelikefine tuning,tuning,they must gatheradditional brandthey must gatheradditional brand

information to discriminateamong theinformation to discriminateamong thevarious brands.various brands.


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ROUTINIZED RESPONSE BEHAVIOURROUTINIZED RESPONSE BEHAVIOUR

Consumers have someexperience with theConsumers have someexperience with theproduct category and a wellproduct category and a well-- establishedestablishedset of criteria with which to evaluate theset of criteria with which to evaluate the

brands they are considering. They maybrands they are considering. They maysearch for the smallamount ofadditionalsearch for the smallamount ofadditionalinformation; they simply review what theyinformation; they simply review what they

already know.already know.


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VARIETY SEEKINGVARIETY SEEKING

Some buying situation are characterizedSome buying situation are characterizedby low involvement but significant brandby low involvement but significant branddifferences, here consumers often do adifferences, here consumers often do a

brand switching.brand switching.

CHARACTERISTICS OF CONSUMER PROBLEMCHARACTERISTICS OF CONSUMER PROBLEM--


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SOLVING APPROACHESSOLVING APPROACHES

RoutineRoutineproblemproblem

solvingsolving

LimitedLimitedproblemproblem

solvingsolving

ExtensiveExtensiveproblem solvingproblem solving

PurchasePurchaseinvolvementinvolvement

levellevel

LowLow MediumMedium HighHigh

ProblemProblemrecognitionrecognition

AutomaticAutomatic SemiautomaticSemiautomatic ComplexComplex

Information searchInformation searchand evaluationand evaluation

minimalminimal LimitedLimited extensiveextensive

PurchasingPurchasing

orie

ntationo

rient

ation

ConvenienceConvenience mixedmixed ShoppingShopping

Post purchasePost purchaseprocessesprocesses

Very limitedVery limitedhabit Brandhabit BrandLoyalityLoyality

Limited InertiaLimited Inertiato repurchaseto repurchasebrandbrandSwitching ifSwitching ifdissatisfactiondissatisfaction

ComplexloyalityComplexloyalityif satisfiedif satisfiedComplaints ifComplaints ifDissatisfiedDissatisfied


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TYPES OF BUYING BEHAVIORTYPES OF BUYING BEHAVIOR

HIGH INVOLVEMENTHIGH INVOLVEMENT LOW INVOLVEMENTLOW INVOLVEMENT

SignificantSignificantdifferencesdifferencesbetween Brandsbetween Brands

Complex Buying BehaviorComplex Buying Behavior Variety seeking BuyingVariety seeking BuyingBehaviorBehavior

Few DifferencesFew Differencesbetween Brandsbetween Brands

Dissonancereducing BuyingDissonancereducing BuyingBehaviorBehavior

Habitual Buying BehaviorHabitual Buying Behavior


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TYPES OF CONSUMER DECISIONSTYPES OF CONSUMER DECISIONS

WHATTO BUYWHATTO BUY

HOW MUCH TO BUYHOW MUCH TO BUY

WHERE TO BUYWHERE TO BUY WHEN TO BUYWHEN TO BUY

HOW TO BUYHOW TO BUY


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MODULE OF CONSUMER DECISION MAKINGMODULE OF CONSUMER DECISION MAKING


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MODEL OF CONSUMER BEHAVIOURMODEL OF CONSUMER BEHAVIOUR

C.B. MODEL BY NICOSIAC.B. MODEL BY NICOSIA

SCHIFFMAN & KANUK MOD

ELSCHIFFMAN & KANUK MOD

EL

FieldField --11


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FieldField 11

SubSub

FieldField

One firmOne firmAttributesAttributes

Sub fieldSub fieldoneone

ConsumerConsumerAttributesAttributes Attributes

Search Evaluate Field -2

Motivation

Decision (Action) Field -3

Purchase Behaviour

Consumption or Storage

Feedback

ExperienceField -4

C.B MODEL BY NICOSIA


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L.G SCHIFFMAN & L.L.KANUKSL.G SCHIFFMAN & L.L.KANUKSMODEL OF CONSUMER DECISION MAKINGMODEL OF CONSUMER DECISION MAKING


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Firms MarketingFirms Marketingefforteffort

ProductProduct

Price

Price

PlacePlace

PromotionPromotion

Socio culturalenvironmentSocio culturalenvironment

FamilyFamily

Informal sourcesInformal sources

Non commercial sourcesNon commercial sourcesSocial classSocial class

SubcultureandSubcultureand cultureculture

INPUT

Need RecognitionNeed Recognition

Prepurchase searchPrepurchase search

Evaluation ofEvaluation ofalternativesalternatives

Psychological FieldMotivationPerceptionLearning

PersonalityAttitudes

Experience

CONSUMER DECISION MAKING

PROCESS

outputPurchases

TrialRepeat purchase

Post Purcha

seeval

uation


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MARKET MOVERSMARKET MOVERS

22300725 Consumer Behaviour Models

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Transcript of 22300725 Consumer Behaviour Models