Consumer Behaviour

- Falguni Singh (02)

Firm’s Marketing Effort

Socio-cultural Environment

•Need Recognition•Pre-purchase search•Evaluation of alternatives Experience

Purchase

Post Purchase Evaluation

Input

Process

Output

External Influences

Consumer Decision Making

Post Decision Behaviour

Psychological Factors

Consumer Decision Making Model

Socio – Cultural Environment

1. Reference Group– Friends Group– Work Group– Brand Community

2. Family Life Cycle– Bachelorhood– Honeymooner– Parenthood– Post-parenthood– Dissolution

Socio Cultural Environment

Reference group Brand Community

“ A brand community is defined as a specialized, non – geographically bound community, based on a structured set of social relationships among admirers of the brand”

Example : http://www.hotwheelscollectors.com/

Socio Cultural Environment• Marketers believe in order to build up loyalty,

product must have an active social life.• Sometimes marketers design a specific product or

service to create a sense of community or take advantage of pre-existing relationship.

• Example

• Example : http://www.youtube.com/watch?v=FlPSqoBwkaE

• Agency : Grey Worldwide

Socio Cultural Environment

Family Life Cycle Honeymooners

• Stage (II) starts right after marriage and lasts until first child is born.

• Availability of combined income allowing indulgent purchasing of possessions.

• Start-up expenses in establishing new home.

• Example http://www.youtube.com/watch?v=eLDBFoVQ5SI

• Ad Agency - DDB Mudra

Socio Cultural Environment

Family Life Cycle Parenthood

• Stage (III) starts when a couple has its first child.• Stages lasts for long duration (20 years ).• Children becomes focus of their lives, child-

rearing and educational responsibility gains priority.

• Example: http://www.youtube.com/watch?v=GJlvT-Dmh24&list=PL502D27EB8B72940B

• Ad Agency - Ogilvy & Mathers

Consumer Decision Making Model

Firm’s Marketing Effort

Socio-cultural Environment

•Need Recognition•Pre-purchase search•Evaluation of alternatives

Psychological Factors

Experience

Purchase

Post Purchase Evaluation

Input

Process

Output

External Influences

Consumer Decision Making

Post Decision Behaviour

Psychological Factors• Motivation

– Maslow’s hierarchy of needs• Self Actualization• Egoistic Needs• Social Needs• Safety and Security Needs• Physiological Needs

• Perception• Learning

– Classical Conditioning

• Personality– Consumer innovativeness and related personality traits– Product personality and geography– Personality and color

• Attitudes

Psychological FactorsMotivation Maslow hierarchy of needs Safety Needs

• These needs are concerned not only with physical safety but also include order, stability, familiarity, health. Health and availability of health care are important safety concern.

Example : http://www.youtube.com/watch?v=tVNQDMseXTM Agency : Trinton Communications

Psychological FactorsMotivation Maslow hierarchy of needs Social Needs

• This level includes needs such as love, affection, sense of belongingness, acceptance.

• People seek warm and satisfying human relationship with other people.

Example : http://www.youtube.com/watch?v=R8vwm3UFt78Agency : McCann Erickson

Psychological FactorsMotivation Maslow hierarchy of needs Egoistic Needs

• These needs can take either an inward or an outward orientation.

• Inward orientation involves individual’s need for self acceptance, self esteem, success, personal satisfaction.

Example : http://www.youtube.com/watch?v=8u0x8TWrIi8 Agency : Lowe Lintas

Psychological Factors

Learning Behavioral learning theory Classical Conditioning

• An analogous to Pavlov’s experiment would be…

Example : http://www.dettol.co.in/solutionsfinder.html

(US) X : Antiseptic , doctors recommend. Unconditioned Response

(CS) X1, X2, X3

(CS) X1, X2, X3 Conditioned Response

Psychological FactorsPersonality Consumer innovativeness Dogmatism

• Dogmatism is a personality trait that measures the degree of rigidity versus openness.

• High dogmatic consumers are more likely to choose established, rather than innovative products. Low dogmatic are more likely to prefer innovative products.

• For high dogmatic consumers marketers use celebrities/experts in new product advertising .

Example http://www.youtube.com/watch?v=7a9K59G0Z0g

Psychological FactorsPersonality Product personality and geography

• For certain products consumers possess strong geographical association (eg: Technology).

• Manufacturer creates a geographical personality for the product to add to the product’s brand equity.

Example http://www.youtube.com/watch?v=5Nwi8x7fyuIAgency : Ogilvy & Mathers

Psychological FactorsPersonality Product and Color

• Consumer not only ascribe personality traits to products and services but also tend to associate personality factors with specific colors.

• Blue = Commands respect, Green = Natural, Red = Hot and exciting, Black = Sophistication, mystery.

Example http://www.youtube.com/watch?v=Imf5kQ7c_NcAgency : Chapter five

• Reference : – Schiffman and Kanuk, Consumer Behavior (Pearson

Prentice Hill, 2007)– www.afaqs.com– www.youtube.com– www. dettol.co.in– www.hotwheelscollectors.com

Thank You