ISHAN INSTITUTE OF MANAGEMENT &

TECHNOLOGY GREATER NOIDA

CONSUMER BEHAVIORTHE PSYCHOLOGY OF MARKETING

SEC - H

- ANAMIKA

- PIYUSH

- AMIT PANDEY

- VIBHA MISHRA

CONSUMER BEHAVIOR: THE PSYCHOLOGY OF

MARKETING

INTRODUCTION The study of consumers helps firms and

organizations improve their marketing strategies by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products);

The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; 

How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

THERE ARE THREE MAIN APPLICATIONS OF CONSUMER BEHAVIOR:1. Marketing strategy (1) companies that introduce

new products must be well financed so that they can stay afloat until their products become a commercial success and

(2) it is important to please initial customers, since they will in turn influence many subsequent customers’ brand choices.

2. Public policy3. Social marketing

CONSUMER RESEARCH METHODS

1. survey 2. focus group 3. personal interview 4. projective technique 5. observation 6. Online research

CONSUMER SHOPPING RECORD

CULTURE AND SUBCULTURE

Culture, as a “complex whole,” is a system of interdependent components.

Culture has several important characteristics: 

(1)  Culture is comprehensive.This means that all parts must fit together in some logical fashion.

(2) Culture is learned rather than being something we are born with. 

(3) Culture is manifested within boundaries of acceptable behavior. 

(4)  Conscious awareness of cultural standards is limited.

 (5)  Cultures fall somewhere on a

continuum between static and dynamic depending on how quickly they accept change. 

SEGMENTATION, TARGETING, AND POSITIONING  Segmentation, targeting, and

positioning together comprise a three stage process.  We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way.

INFORMATION SEARCH AND DECISION MAKING

Problem Recognition.  One model of consumer decision making involves several steps.

The first one is problem recognition—you realize that something is not as it should be.  Perhaps, for example, your car is getting more difficult to start and is not accelerating well.   

The second step is information search—what are some alternative ways of solving the problem? 

  Finally, we have the purchase stage, and sometimes

a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory).

INFORMATION SEARCH AND DECISION MAKING.Consumers engage in both internal and

external information search. 

Two interesting issues in decisions are: Variety seeking

“Impulse” purchases—unplanned buys. This represents a somewhat “fuzzy” group.  For example, a shopper may plan to buy vegetables but only decide in the store to actually buy broccoli and corn.

 DIFFUSION OF INNOVATION

The diffusion of innovation refers to the tendency of new products, practices, or ideas to spread among people.  Usually, when new products or ideas come about, they are only adopted by a small group of people initially; later, many innovations spread to other people. 

The bell shaped curve frequently illustrates the rate of adoption of a new product.  Cumulative adoptions are reflected by the S-shaped curve.  The saturation point is the maximum proportion of consumers likely to adopt a product

FAMILIES AND FAMILY DECISION MAKING

HOUSEHOLD DECISION MAKING

Roles/influence

Information gatherers/holders

InfluencersDecision makersPurchasersUsers

POTENTIAL FAMILY LIFE CYCLE STAGES

YOUNGSINGLE

BLENDED

SINGLE PARENT

FULL NEST I/II/III

EMPTY NESTI/II

OLDERSINGLE

YOUNGCOUPLE

FAMILY DECISION MAKING Individual members of families often serve

different roles in decisions that ultimately draw on shared family resources. Some individuals are information gatherers/holders, who seek out information about products of relevance. The decision maker(s) have the power to determine issues such as:

Whether to buy; Which product to buy (pick-up or passenger

car?); Which brand to buy; Where to buy it; and When to buy.

BIBLIOGRAPHY

I. InternetII. MagazinesIII. Books