CONSUMER BEHAVIOURCONSUMER BEHAVIOUR

CONCEPT OF CONSUMER BEHAVIORCONCEPT OF CONSUMER BEHAVIOR

““The study of consumer behavior is the study of The study of consumer behavior is the study of how individuals make decisions to spend of what how individuals make decisions to spend of what they buy, why they buy it, when they buy it, they buy, why they buy it, when they buy it, where they buy it, where they buy it, how often where they buy it, where they buy it, how often they buy it, and how often they use it.they buy it, and how often they use it.““the decision process and physical activity the decision process and physical activity individuals engage in when evaluating, acquiring, individuals engage in when evaluating, acquiring, using, or disposing of goods & services”.using, or disposing of goods & services”.

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

Buying MotivesBuying MotivesDEFINITION:DEFINITION:

According to W.J Stanton,According to W.J Stanton,““A motive can be defined as a drive or A motive can be defined as a drive or

an urge for which an individual seeks an urge for which an individual seeks satisfaction. It becomes a buying satisfaction. It becomes a buying motive when the individual seeks motive when the individual seeks satisfaction through the purchase of satisfaction through the purchase of something”.something”.

Behavior is a goal directed activityBehavior is a goal directed activity

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

(Hungry)(Hungry)

GoodsGoods(Food)(Food) Behavior Behavior Goal Goal

AchievementAchievement(Eating)(Eating)

CONSUMER GOODSCONSUMER GOODS INDUSTRIAL GOODSINDUSTRIAL GOODS1.1. Used by end user for Used by end user for

their own consumptiontheir own consumption2.2. Generally inexpensiveGenerally inexpensive3.3. Are less complexAre less complex4.4. Are purchase frequentlyAre purchase frequently

1.1. Used for further Used for further production of other production of other goods (raw materialgoods (raw material))

2.2. Are expensiveAre expensive3.3. Are more complexAre more complex4.4. Are one time purchase Are one time purchase

goodsgoods

IMPORTANCE OF CONSUMER BEHAVIORIMPORTANCE OF CONSUMER BEHAVIOR

The study of consumer behaviour is vital in The study of consumer behaviour is vital in framing production policies, price policies, framing production policies, price policies, decisions regarding channels of distribution and decisions regarding channels of distribution and above all decisions regarding sales promotion.above all decisions regarding sales promotion.

1.1. Production PoliciesProduction Policies2.2. Price PoliciesPrice Policies3.3. Decision regarding Channels of DistributionDecision regarding Channels of Distribution4.4. Decision regarding Sales PromotionDecision regarding Sales Promotion

MODEL OF BUYER BEHAVIOURMODEL OF BUYER BEHAVIOUR

MAJOR FACTORS INFLUENCING BUYING BEHAVIOUR MAJOR FACTORS INFLUENCING BUYING BEHAVIOUR MARKETINMARKETING STIMULIG STIMULI

OTHER OTHER STIMULISTIMULI

PRODUCTPRODUCTPRICEPRICEPLACEPLACEPROMOTIONPROMOTION

ECONOMICECONOMICTECHNOLOGICTECHNOLOGICALALPOLITICALPOLITICALCULTURALCULTURAL

BUYER’S BUYER’S CHARACTERISTICHARACTERISTICSCS

BUYER’S DECISION BUYER’S DECISION PROCESSPROCESS

CULTURALCULTURALSOCIALSOCIALPERSONALPERSONALPSYCHOLOGICALPSYCHOLOGICAL

PROBLEM PROBLEM RECOGNITIONRECOGNITIONINFORMATION SEARCHINFORMATION SEARCHEVALUATION OF EVALUATION OF ALTERNATIVESALTERNATIVESPURCHASE DECISIONPURCHASE DECISIONPOST PURCHASE POST PURCHASE BEHAVIOURBEHAVIOUR

BUYER’S BUYER’S DECISIONSDECISIONSPRODUCT CHOICEPRODUCT CHOICEBRAND CHOICEBRAND CHOICEDEALER CHOICEDEALER CHOICEPURCHASE TIMINGPURCHASE TIMINGPURCHASE AMOUNTPURCHASE AMOUNT

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

IMPORTANCE OF CONSUMER BEHAVIOR

IMPORTANCE FOR CONSUMER IMPROTANCE FOR MARKETING

IMPORTANCE FOR STUDENTSAPPLICATION TO DECISION MAKING

APPLICATION OF CONSUMER APPLICATION OF CONSUMER BEHAVIORBEHAVIOR

APLICATION OF CBAPLICATION OF CB

CB AND

MKTING MGMT

CB & NONPROFIT&SOCIAL MKTING

CB & DE-MKTING

CB & CONSUMER EDUCATIONS

CB & GOVT’AL DECISION MAKING

CB AND MARKETING CB AND MARKETING MANAGEMENTMANAGEMENT

The process of planning and executing The process of planning and executing 1.1. The conceptionThe conception2.2. PricingPricing3.3. PromotionPromotion4.4. Distribution of ideasDistribution of ideas5.5. Goods & services to exchangesGoods & services to exchanges6.6. Satisfy individual and organizational objectives.Satisfy individual and organizational objectives.

Three interrelated orientations are:Three interrelated orientations are:

Consumer wants & needs

Company objectives

Integrated strategy

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

Market opportunityAnalysis

Target market selection

Marketing mix determinants

needs Unique market

wants

income

lifestyle

Ex: soft drinks

Food store segments

Vending machinesegments

The fountain market

PRODUCT

PRICE

PLACE

PROMOTION

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

A number of writers have suggested that various A number of writers have suggested that various social and non profit organisations can be viewed social and non profit organisations can be viewed as having services or ideas that they are as having services or ideas that they are attempting to market to target group of attempting to market to target group of “consumer” or “constituents.“consumer” or “constituents.

MARKET SEGMENTATIONMARKET SEGMENTATION

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

market of commodities are not homogenous but they are market of commodities are not homogenous but they are heterogeneous. Market represent a group of customers having heterogeneous. Market represent a group of customers having common charecteristicesbut two customers are never common in common charecteristicesbut two customers are never common in their nature, habits,hobbies, income and purchase techniques.their nature, habits,hobbies, income and purchase techniques.

Definition of segmentationDefinition of segmentationAccording to Philip Kotler, “whenever a market for a According to Philip Kotler, “whenever a market for a

product or service consists of two or more buyers, product or service consists of two or more buyers, the market is capable of being segmented, that is the market is capable of being segmented, that is divided into meaningful buyer groups. The divided into meaningful buyer groups. The purpose of segmentation is to determine purpose of segmentation is to determine differences among buyers which may be differences among buyers which may be consequential in choosing away then or consequential in choosing away then or marketing to them”.marketing to them”.

LEVELS OF MARKET SEGMENTSLEVELS OF MARKET SEGMENTS

SEGMENT MARKETINGSEGMENT MARKETING NICHE MARKETINGNICHE MARKETING LOCAL MARKETINGLOCAL MARKETING INDIVIDUAL MARKETINGINDIVIDUAL MARKETING

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

CONSUMER BEHAVIOUR MODELSCONSUMER BEHAVIOUR MODELS

INPUTINPUT

PROCESSPROCESS

OUTPUTOUTPUTINITIATION:INITIATION:

INFLUENCER INFLUENCER

DECIDERDECIDER

Decision framework for studying Decision framework for studying consumer consumer behaviourbehaviour

External environmental variables External environmental variables influencing behavior,influencing behavior,

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

BUYING ROLES/ PARTICIPANTS IN THE BUYING ROLES/ PARTICIPANTS IN THE BUYING PROCESSBUYING PROCESS

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

INFLUENCER:INFLUENCER:The person who explicitly or implicitly has some influence on the final buying The person who explicitly or implicitly has some influence on the final buying decision of others.decision of others.

DECIDER:DECIDER:the decider is a person who ultimately determines any part or whole of the the decider is a person who ultimately determines any part or whole of the buying decision, i.e., whether to buy, what to buy, how to buy, when to buy, buying decision, i.e., whether to buy, what to buy, how to buy, when to buy, or where to buy. or where to buy.

BUYER:BUYER:the buyer is the person who actually purchase. Buyer may be the buyer is the person who actually purchase. Buyer may be decider or may be other person. decider or 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.

EXTERNAL ENVIRONMENTAL VARIABLE INFLUENCING EXTERNAL ENVIRONMENTAL VARIABLE INFLUENCING BEHAVIOURBEHAVIOUR

INDIVIDUAL DETERMINANTSINDIVIDUAL DETERMINANTSInformation processingInformation processingLearning and memoryLearning and memoryPersonality and self conceptsPersonality and self conceptsAttitudesAttitudesMotivation and involvementMotivation and involvement

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

DECISION PROCESSDECISION PROCESS

PROBLEM RECOGNITION

INFORMATION SEARCH AND EVALUATION

PURCHASING

POST PURCHASING BEHAVIOUR

Consumer beliefs and attitudesConsumer beliefs and attitudes InnovatorsInnovators Consumer confidenceConsumer confidence Buying stylesBuying styles techno graphicstechno graphics

CONSUMER INNOVATOR’SCONSUMER INNOVATOR’S

INNOVATORSINNOVATORS

SEGMENTATION OF EARLY ADOPTERS SEGMENTATION OF EARLY ADOPTERS OF NEW PRODUCTS AND SERVICESOF NEW PRODUCTS AND SERVICES

KEY CONSUMER BELIEFSKEY CONSUMER BELIEFS If a product is made by a company I If a product is made by a company I

trust I will buy it even if it is slightly trust I will buy it even if it is slightly more expensive.more 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 I am willing to pay more for the

product that is environmentally safe.product that is environmentally safe. I always check the ingredients and I always check the ingredients and

nutritional contents of food products nutritional contents of food products before I buy them.before I buy them.

I buy the brand I grew up with the I buy the brand I grew up with the one my mother used.one my mother used.

I would pay extra for a product that I would pay extra for a product that is consistent with the image I want to is consistent with the image I want to conveyconvey

I am influenced by what’s hot and I am influenced by what’s hot and what’s not.what’s not.

I prefer to buy the things by friends I prefer to buy the things by friends and my neighbors would approve of.and my neighbors would approve of.

Consumer Innovator Segments

Electronics Leisure Innovators Financial Food Home Appliance

INNOVATION ADOPTION MODELINNOVATION ADOPTION MODEL

DEVICED BY “Rogers”DEVICED BY “Rogers” Awareness and interest of the audience are Awareness and interest of the audience are

created by advertisers, so that the former created by advertisers, so that the former may evaluate the message of may evaluate the message of advertisement.advertisement.

The potential purchaser, if satisfied with the The potential purchaser, if satisfied with the attributes advertised, purchases a product attributes advertised, purchases a product on a trial basis. on a trial basis.

Product Comparision is made to evaluate Product Comparision is made to evaluate each and adopt a particular product.each and adopt a particular product.

INNOVATION ADOPTION MODELINNOVATION ADOPTION MODEL

INTEREST

EVALUATION

TRIAL

ADOPTION

AWARENESS

DEFFUSION OF INNOVATIONDEFFUSION OF INNOVATION

DIFFUSION OF INNOVATIONDIFFUSION OF INNOVATION DEFINITIONDEFINITION

““The framework for exploring The framework for exploring consumer acceptance of new consumer acceptance of new products is drawn from the area of products is drawn from the area of research known as the diffusion of research known as the diffusion of innovation”innovation”

PROCESSES OF INNOVATIONSPROCESSES OF INNOVATIONS

DIFFUSION PROCESSESDIFFUSION PROCESSES

ADOPTION PROCESSADOPTION PROCESS

MACRO PROCESS

MICRO PROCESS

DIFFUSION PROCESSDIFFUSION PROCESS This is concerned with how innovation This is concerned with how innovation

spreadspread Assimilation of product with the marketAssimilation of product with the market It is process of acceptance of an It is process of acceptance of an

innovation such as a new product, new innovation such as a new product, new services, new ideas, or new practices. services, new ideas, or new practices.

Mode of communication may be mass Mode of communication may be mass media, sales people, informal media, sales people, informal conversation.conversation.

Basic elements of diffusion processBasic elements of diffusion process

The innovation The channels of communication

The socal system time

INNOVATIONINNOVATION NO UNIFORM DEFINITON EXISTNO UNIFORM DEFINITON EXIST THERE ARE OTHER FACTORS DEFINE THERE ARE OTHER FACTORS DEFINE

THIS CONCEPTTHIS CONCEPT1.1. FIRM ORIENTED DEFINITIONFIRM ORIENTED DEFINITION2.2. PRODUCT ORIENTED DEFINITIONPRODUCT ORIENTED DEFINITION3.3. MARKET ORIENTED DEFINITIONMARKET ORIENTED DEFINITION4.4. CONSUMER ORIENTED DEFINITIONCONSUMER ORIENTED DEFINITION5.5. FACTORS INFLUENSING THE RATE OF FACTORS INFLUENSING THE RATE OF

DIFFUSIONDIFFUSION

FIRM ORIENTED DEFINITIONSFIRM ORIENTED DEFINITIONS

A firm – oriented approach treats the A firm – oriented approach treats the newness of a product from the newness of a product from the perspective of the company producing perspective of the company producing or marketing it. When the product is or marketing it. When the product is new to the company, it is considered new to the company, it is considered new. This definition ignores whether new. This definition ignores whether or not the product is actually new to or not the product is actually new to the market place.the market place.

PRODUCT ORIENTED DEFINITIONPRODUCT ORIENTED DEFINITION

In contrast to firm oriented In contrast to firm oriented definitions, a product- oriented definitions, a product- oriented approach focuses on the features approach focuses on the features inherent in the product itself and on inherent in the product itself and on the effects these features are likely the effects these features are likely to have on consumers established to have on consumers established usage patterns. usage patterns.

TYPES OF PRODUCT INNOVATIONTYPES OF PRODUCT INNOVATION

CONTINUOUS INNOVATIONCONTINUOUS INNOVATION DYNAMICALLY CONTINOUS DYNAMICALLY CONTINOUS

INNOVATIONINNOVATION DISCONTINUOUS INNOVATIONSDISCONTINUOUS INNOVATIONS

MARKET ORIENTED DEFINITIONSMARKET ORIENTED DEFINITIONS

It judges the newness of a product in terms It judges the newness of a product in terms of exposuresof exposures

Two definitionsTwo definitions A product is considered new if it has A product is considered new if it has

been purchased by a relatively small been purchased by a relatively small (fixed) percentage of potential market.(fixed) percentage of potential market.

A product is considered new if it has A product is considered new if it has been on the market for a relatively short been on the market for a relatively short (specified) period of time.(specified) period of time.

CONSUMER ORIENTED DEFINITIONCONSUMER ORIENTED DEFINITION

In this context, a new product is any In this context, a new product is any product that a potential consumer product that a potential consumer judges to be new. Newness is based judges to be new. Newness is based on the consumers perception of the on the consumers perception of the product, rather than on physical product, rather than on physical features or market realities.features or market realities.

FACTORS INFLUENCING THE RATE FACTORS INFLUENCING THE RATE OF DIFFUSIONOF DIFFUSION

Diffusion researchers have identified Diffusion researchers have identified six products characteristics that six products characteristics that seem to influence consumer seem to influence consumer acceptance of new products:acceptance of new products:

Relative advantagesRelative advantages CompatibilityCompatibility Trial ability (or divisibility)Trial ability (or divisibility) Observability (or Communicability)Observability (or Communicability) CostCost

CHANNEL OF COMMUNICATIONCHANNEL OF COMMUNICATION

WAYS OF COMMUNICATIONWAYS OF COMMUNICATION1.1. BETWEEN THE MARKET & CONSUMERSBETWEEN THE MARKET & CONSUMERS2.2. AMONG CONSUMERSAMONG CONSUMERS3.3. IMPERSONAL SOURCES SUCH AS IMPERSONAL SOURCES SUCH AS

ADVERTISING AND EDITORIAL MATTERSADVERTISING AND EDITORIAL MATTERS4.4. INTERPERSONAL SOURCES SUCH AS INTERPERSONAL SOURCES SUCH AS

SALES PEOPLE AND INFORMAL OPINION SALES PEOPLE AND INFORMAL OPINION LEADERSLEADERS

5.5. INTERACTIVE MARKETING MESSAGES INTERACTIVE MARKETING MESSAGES (NEW CONCEPT)(NEW CONCEPT)

SOCIAL SYSTEMSOCIAL SYSTEM

A social system is a physical, social, or A social system is a physical, social, or cultural environment to which people cultural environment to which people belong and with in which they function. belong and with in which they function. Characteristics of modern social system:Characteristics of modern social system:

1.1. A positive attitude towards changeA positive attitude towards change2.2. An advanced technology and skilled labour forceAn advanced technology and skilled labour force3.3. A general respect for education and science.A general respect for education and science.4.4. An emphasis on rational and ordered social An emphasis on rational and ordered social

relationships, rather than an emotional ones.relationships, rather than an emotional ones.5.5. An out reach prospectsAn out reach prospects6.6. A system in which members can readily see A system in which members can readily see

themselves in quite different roles.themselves in quite different roles.

TIMETIME

Time is the backbone of the diffusion Time is the backbone of the diffusion process. process. three ways three ways

1.1. Purchase timePurchase time2.2. Adopter categoriesAdopter categories3.3. Rate of AdoptionRate of Adoption

PURCHASE TIMEPURCHASE TIME

Purchase time refers to the amount Purchase time refers to the amount of time that elapse between of time that elapse between consumers initial awareness of a new consumers initial awareness of a new product or service and the point at product or service and the point at which they purchase or reject it. which they purchase or reject it.

ADOPTER CATEGORIESADOPTER CATEGORIES

It involves a classification scheme It involves a classification scheme that indicates where a consumer that indicates where a consumer stands in relation to other consumers stands in relation to other consumers in terms of timein terms of time

RATE OF ADOPTIONRATE OF ADOPTION

The rate of adoption is concerned with The rate of adoption is concerned with how long it takes a new product or how long it takes a new product or services to be adopted by members of services to be adopted by members of a social system. The general veiw is a social system. The general veiw is that the rate of adoption for new that the rate of adoption for new products is getting faster or shorter, products is getting faster or shorter, Ex. fashionEx. fashion

ADOPTON PROCESSADOPTON PROCESSAdoption

Trial

Legitimating

Attitude

Comprehension

Awareness

OPINION LEADERSHIPOPINION LEADERSHIP

OPINION LEADERSHIPOPINION LEADERSHIP

DEFINITION:DEFINITION:

““Opinion leaders are those people who are able, Opinion leaders are those people who are able, in a given situation, to expert personal influence”.in a given situation, to expert personal influence”.

CHARECTERISTICES OF OPINION CHARECTERISTICES OF OPINION LEADERSLEADERS

Social class positionSocial class position Greater exposure to mass mediaGreater exposure to mass media Greater interest and knowledge of the Greater interest and knowledge of the

areas of influenceareas of influence More gregarious More gregarious More innovativeMore innovative More familiar and loyal to group standards More familiar and loyal to group standards

and valuesand values Appear to exhibit the personality trait of Appear to exhibit the personality trait of

public individuation.public individuation.

MEASUREMENT OF OPINION MEASUREMENT OF OPINION LEADERSHIPLEADERSHIP

Consumer researches are interested Consumer researches are interested in identifying and measuring the in identifying and measuring the impacts of the opinion leadership impacts of the opinion leadership process on consumption behavior. process on consumption behavior.

BASIC MEASUREMENT TECHNIQUESBASIC MEASUREMENT TECHNIQUES

Self-Designating MethodsSelf-Designating Methods Sociometric MethodsSociometric Methods

1.1. The specific individuals to whom they The specific individuals to whom they provided advice or information about the provided advice or information about the product or brand under study product or brand under study

2.2. The specific individuals who provided them The specific individuals who provided them with advice or information about the with advice or information about the product or brand under study.product or brand under study.

Key informant Methods Key informant Methods Objective MethodsObjective Methods

USES OF OPINION LEADERSUSES OF OPINION LEADERSConsumers, generally, do not speak Consumers, generally, do not speak about products or services unless they about products or services unless they expect to derive some kind of expect to derive some kind of satisfaction from the activity. satisfaction from the activity.

1.1. Product- InvolvementProduct- Involvement2.2. Self- InvolvementSelf- Involvement

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

3.3. Other- involvementOther- involvement4.4. Message - InvolvementMessage - Involvement

CONSUMER DECISION MAKING CONSUMER DECISION MAKING MODELMODEL

MEANINGMEANING

A process by which a person is required to A process by which a person is required to make a choice from various alternative make a choice from various alternative options is referred to as decision- making.options is referred to as decision- making.

Providing consumers with other alternative Providing consumers with other alternative is a good business strategy and can also is a good business strategy and can also result in substantial increase in sales. result in substantial increase in sales. While for the consumer, he or she will be While for the consumer, he or she will be pleased when able to choose and decide pleased when able to choose and decide on the best from the alternatives on the best from the alternatives available. available.

LEVELS OF CONSUMER DECISION LEVELS OF CONSUMER DECISION MAKINGMAKING

SPECIFIC LEVELS OF CONSUMER SPECIFIC LEVELS OF CONSUMER DECISION MAKINGDECISION MAKING

1.1. EXTENSIVE PROBLEM SOLVINGEXTENSIVE PROBLEM SOLVING2.2. LIMITED PROBLEM SOLVINGLIMITED PROBLEM SOLVING3.3. ROUTINIZED RESPONSE BEHAVIORROUTINIZED RESPONSE BEHAVIOR4.4. VARIETY SEEKINGVARIETY SEEKING

Extensive problem solvingExtensive problem solving

The consumer needs a great deal of The consumer needs a great deal of information to establish a set of information to establish a set of criteria on which to judge specific criteria on which to judge specific brands and a correspondingly large brands and a correspondingly large amount of information concerning amount of information concerning each of the brands to be considered.each of the brands to be considered.

The marketer has to ensure two tasksThe marketer has to ensure two tasks1.1. The marketer must continue to provide The marketer must continue to provide

satisfaction to the existing customers by satisfaction to the existing customers by maintaining quality, service and value.maintaining quality, service and value.

2.2. He must try to attract new customers by He must try to attract new customers by making use of sales promotion techniques making use of sales promotion techniques like point of purchase displays, off-price like point of purchase displays, off-price offers, etc., and also introduce new offers, etc., and also introduce new features to the products.features to the products.

LIMITED PROBLEM SOLVINGLIMITED PROBLEM SOLVING

Consumers already have established Consumers already have established the basic criteria for evaluating the the basic criteria for evaluating the product category and the various product category and the various brands in the category. Their search brands in the category. Their search for additional information is more like for additional information is more like “fine – tuning”, they must gather “fine – tuning”, they must gather additional brand information to additional brand information to discriminate among the various discriminate among the various brands.brands.

ROUTINIZED RESPONSE BEHAVIOURROUTINIZED RESPONSE BEHAVIOUR

Consumers have some experience with Consumers have some experience with the product category and a well- the product category and a well- established set of criteria with which established set of criteria with which to evaluate the brands they are to evaluate the brands they are considering. They may search for the considering. They may search for the small amount of additional small amount of additional information; they simply review what information; they simply review what they already know. they already know.

VARIETY SEEKINGVARIETY SEEKING

Some buying situation are Some buying situation are characterized by low involvement but characterized by low involvement but significant brand differences, here significant brand differences, here consumers often do a brand consumers often do a brand switching.switching.

CHARACTERISTICS OF CONSUMER PROBLEM- CHARACTERISTICS OF CONSUMER PROBLEM- SOLVING APPROACHESSOLVING APPROACHES

Routine Routine problem problem solvingsolving

Limited Limited problem problem solvingsolving

Extensive Extensive problem problem solvingsolving

Purchase Purchase involvementinvolvementlevellevel

LowLow MediumMedium HighHigh

Problem Problem recognitionrecognition

AutomaticAutomatic SemiautomatSemiautomaticic

ComplexComplex

Information Information search and search and evaluationevaluation

minimalminimal LimitedLimited extensiveextensive

Purchasing Purchasing orientationorientation

ConvenienceConvenience mixedmixed ShoppingShopping

Post purchase Post purchase processesprocesses

Very limited Very limited habit Brand habit Brand LoyalityLoyality

Limited Limited Inertia to Inertia to repurchase repurchase brand brand Switching if Switching if dissatisfactiodissatisfactionn

Complex Complex loyality if loyality if satisfied satisfied Complaints if Complaints if DissatisfiedDissatisfied

TYPES OF BUYING BEHAVIORTYPES OF BUYING BEHAVIOR

HIGH HIGH INVOLVEMENTINVOLVEMENT

LOW INVOLVEMENTLOW INVOLVEMENT

Significant Significant differences differences between Brandsbetween Brands

Complex Buying Complex Buying BehaviorBehavior

Variety seeking Buying Variety seeking Buying BehaviorBehavior

Few Differences Few Differences between Brandsbetween Brands

Dissonance reducing Dissonance reducing Buying BehaviorBuying Behavior

Habitual Buying Habitual Buying BehaviorBehavior

TYPES OF CONSUMER DECISIONSTYPES OF CONSUMER DECISIONS

WHAT TO BUYWHAT TO BUY HOW MUCH TO BUYHOW MUCH TO BUY WHERE TO BUYWHERE TO BUY WHEN TO BUYWHEN TO BUY HOW TO BUY HOW TO BUY

MODULE OF CONSUMER DECISION MODULE OF CONSUMER DECISION MAKINGMAKING

MODEL OF CONSUMER BEHAVIOURMODEL OF CONSUMER BEHAVIOUR

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

SCHIFFMAN & KANUK MODEL SCHIFFMAN & KANUK MODEL

Field -1Field -1

SubSubFieldFieldOne firm One firm Attributes Attributes

Sub field Sub field one one Consumer Consumer AttributesAttributes

Attributes

Search Evaluate Field -2

Motivation

Decision (Action) Field -3

Purchase Behaviour

Consumption or Storage

Feedback

ExperienceField -4

C.B MODEL BY NICOSIA

L.G SCHIFFMAN & L.L.KANUK’S L.G SCHIFFMAN & L.L.KANUK’S MODEL OF CONSUMER DECISION MODEL OF CONSUMER DECISION

MAKINGMAKING

Firm’s Marketing Firm’s Marketing efforteffortProductProductPricePricePlacePlacePromotionPromotion

Socio cultural Socio cultural environmentenvironmentFamilyFamilyInformal sourcesInformal sourcesNon commercial Non commercial sourcessourcesSocial classSocial classSubculture andSubculture and cultureculture

INPUT

Need RecognitionNeed RecognitionPrepurchase Prepurchase searchsearchEvaluation of Evaluation of alternativesalternatives

Psychological Field•Motivation•Perception•Learning

•Personality•Attitudes

Experience

CONSUMER DECISION MAKING

PROCESS

output Purchases •Trial

•Repeat purchase

Post Purchase evaluation

MARKET MOVERSMARKET MOVERS