Consumer Behaviour
Transcript of Consumer Behaviour
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Prof Javed
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Consumer Behaviour is the study of how individuals make decisions to spend their available resources(time,money,effort) on consumption related items.
What they buy? How they use and dispose the products?
When they buy? Why they buy? Where they buy,How often?
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Cultural factorsSocial factorsPersonal factorsPsychological factors
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Individual buying pattern is affected by his culture
Subculture has more specific identification
Culture affects buying behaviourEggless cakes for Jains ,Alcohol free
products offered to Gulf countries. Purchase of gold on Padwa – Indian
cultureMarathi Ads are aired to cater to the vast
majority of people in the state French –particular about their language
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Family ,friends, formal social groups, colleagues, consumer action groups influence the consumer buying behavior significantly.
Family : Family of orientation –one’s parents and siblings
Family of Procreation-spouse and children
Newly wed couples buy honeymoon packages
Husbands have started taking keen interest in housekeeping , cooking due to rising proportion of working women
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Reference groups They have a direct /indirect influence on a
person’s behavior Primary reference groups 1.Membership Group: Members of
Swadeshi /Gandhigiri club 2.Aspirational group-whom one aspires
to join ! 3.Disclaimant group- Being a member
dislikes the values 4.Avoidance /dissociative group- not a
member and dislikes their attitudes & behaviour
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Secondary reference groupsOpinion leaders –special
skills ,knowledge , personality Identify media read /tuned to by
opinion leadersE.g: kitchenware –Housewife is
the best opinion leader
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Age Easy to digest and eat –old ageLow fat low calorie –health conscious
adultsSweet meat –young adolescentsStage in lifecycleDivorce, remarriage , widowhood …
life circumstances have an effect on consumer behavior.
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Occupation and financial status Blue collared worker –Lunch box,
work clothes, work shoes. White collared executives –laptop,travel,adventure
Personality , self concept, Lifestyle affect buying behavior e.g. Choice of apparel ,Real estate, home appliances, automobiles
Personality –psychological characteristics that give enduring & consistent responses to the environment
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Motivation : Why one buys and when?Perception : interpret information to
create meaningful picture of the world. Understanding Customer’s perception would help marketers creating a proper image around the brand (Positioning)
Beliefs and attitudes Learning – test rides , free samples are
aimed at changing attitudes towards the product
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Initiator – gives the idea of purchasing the product
Influencer- advices and influences the purchase decision
Decider – a person who decides – where ,when , how to buy a product
Buyer – actually purchases the product User – final beneficiary who uses the
product Maintainer- repairs /services the product Disposer – a person who disposes the
product
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Extensive problem solving buying behavior
Expensive and infrequently purchased products
Consumers collect a lot of data High involvement product Marketers must differentiate their brand to
stay ahead of competition Marketers must help customers know
the brand E.G : Washing machine, music system,
automobiles
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Routine buying behavior.
Routine purchasesLow involvement products – Salt In case the customer reaches for the
same brand, it is due to habit and not brand loyalty necessarily
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Variety Seeking behaviorNeed for variety is felt by the
consumerBrand switching for variety than
satisfaction reasonsE.g: Cookies
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Impulse buying behavior On the spot decision Instantaneous purchaseMarketers lure customers through
free gifts ,discounts. In store displays-danglers, banners,
cut outs…Point of purchase communication
Sensory Branding
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Problem /need recognition
Information search
Evaluation of alternatives
Purchase decision
Post purchase behavior
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A person recognizes a need or a problem
Internal stimuli – Hunger External stimuli-AdsMarketers need to identify stimuli
that trigger needs
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Two levels of arousal 1.Heightened attention : more receptive
to information about the product2.Active information search – calls up
friends ,visit stores. Sources of Consumer Information Personal sources-
family ,friends ,neighbors Commercial sources- dealers, sales
persons. Ads, displays Experiential sources- handling the
product ,free samples /test rides. Public sources – media, Testing labs.
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Awareness set –total set of brands Contender set – applies criteria like
budget, preferences.Choice set – strong contenders form
which he /she will purchase
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Consumers seek bundle of benefits E.g : while buying a camera –
picture ,focus ,size and speed Customers develop brand beliefs on
every attribute of the brand. Customers believe that Olympus camera has better focus ,pocket friendly (Denim pockets)
These set of beliefs enable consumers to develop ‘Brand image ‘
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Factors affecting purchase decision Attitude of others-Purchase
intention adjustment Unanticipated situational factors
–health , job , death of spouse.Perceived risk – money ,self
confidence , Attribute uncertainty Decisions – Brand –vendor-
quantity-timing-payment
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Concept of satisfaction /delight Cognitive dissonance – when he does
not get all the benefits he was looking for or competitor’s brand offers his sought benefits
Reinforce: ‘ yehi hai right choice baby’ Educate the consumer for proper usage –
Washing machines for making lassi in Punjab
Disposal – no harm to the environment-Kodak , HP empty cartridges, Samsung –damaged mobile handsets
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Professionally and technically qualified buyers
0 or 1 level channelPerformance ,reliability , durability Packaging is more protective than
being promotional Impulse buying is rare Multiple buying influencesNegotiations/tenders and bidding
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Straight rebuy–regular and routine purchases like consumables , tools, spares.
Modified rebuy –specifications of products to be purchased change, need to look out for new suppliers along with the existing suppliers .
New task buying-completely new products
Process of Buying
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Demographic – o Industry – which industry should
we focus on?o Company size – what size
companies should we focus on?o Location – what geographical areas
should we focus on?
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b. Operating variables – Technology – what customer technology should we focus on?
o Usage status – Should we focus on heavy, medium, light users or nonusers?
o Customer capabilities – Should we focus on customers needing many or few services?
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c. Purchasing approaches – Highly centralized or decentralized purchasing organization
o Engineering dominated, financially dominated.
o Strong relationships or go after most desirable companies. Leasing, service contracts, system purchase, sealed bidding –
o Companies seeking qualities, service, price – purchasing criteria
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d. Situational factors – o Urgency – needing quick & sudden
delivery or service.o Specific application – certain
application or all application.o Size of order – large or small orders
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e. Personal characteristics – o Buyer sellers similarity – companies
whose people & values are similar to ours.
o Attitude towards risk – risk taking or risk avoiding companies.
o Loyalty – companies that show high loyalty to their suppliers.