Marketing Management - Pgpmi - Class 12

8/2/2019 Marketing Management - Pgpmi - Class 12

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Marketing Management

26/10/07

CBS PGPMI - Class 12Sivapriya Krishnan


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Consumer Behaviour-Nature,

Scope and Applications


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Who is a consumer?

A consumer is typically one who engagesin any one or all of the activities describedin the definition

Customer is one who actually purchases aproduct or service from a particularorganisation or shop.


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Two broad types of consumer

Personal Buys goods or services for his/her own use

Organisational Including profit and non profit businesses,

government agencies and institutions

The focus of the course will be on theindividual consumer


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Consumer behaviour-somedefinitions

The decision process and the physical activityengaged in when evaluating, acquiring, usingordisposingof goods and services

The study of consumer behaviour is the study ofhow individuals make decisions to spend theiravailable resources (time,money, effort) onconsumption related items. It includes the studyof whatthey buy, whythey buy it, whenthey buyit, wherethey buy it, how oftenthey buy it andhow often they useit.


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Some consumer behaviourroles

Role Description

Initiator The person who determines that some needor want is not being met

Influencer The person who intentionally/ unintentionallyinfluences the decision to buy the actualpurchase and/ or use of product or service

Buyer The buyer who actually makes the purchase

User The person who actually uses or consumesthe product or service


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Why the field of ConsumerBehaviour developed

Marketing concept evolution Production orientation: cheap efficient

production and intensive distribution

Product orientation: focuses totally on theproduct quality

Selling orientation: assumes consumers willnot buy without hardsell

Marketing orientation: determines the needsand wants of specific target markets.


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Why the field of ConsumerBehaviour developed

Dawning realisation that consumersrebelled at using identical products

They preferred products that reflected their

own special needs, personalities andlifestyles.

Hence, marketers adopted Market

Segmentation-this technique called forgreater understanding of the consumer


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Consumer Adoption Process

Adoption : individuals decision to becomea regular user

Consumer adoption should translate intoconsumer loyalty


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Innovation: any good, service, idea that isperceived by someone as new

Innovation diffusion process is the spreadof a new idea from its source of inventiono creation to its ultimate users or adopters


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Five stages of adoption / innovation diffusion : Awareness : aware but no information

Interest : stimulated to seek information

Evaluation: considers whether to try theinnovation

Trial : tries the innovation to estimate its

value

Adoption : makes full use of innovation


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Sivapriya Krishnan

Innovator

2.5%

Early adopters

13.5%

Early majority 34%

Late Majority 34%

Laggards

16%


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Individual influencers of

buying behaviour

Perception


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What is perception?

Perception is the process by which a personselects, organizes, and interprets stimuli into ameaningful and coherent picture of the world.

Stimuli Vision

Smell

Sound

Touch

Smell


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Consumer motivation and

involvement


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Model of motivation process

Learning

Unfulfilled needs, wants

and desiresTension Drive Behaviour

Goal or need

fulfillment

Cognitive processes

Tension

reduction


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Individual determinants ofbehaviour

Motivation

Motivation is that internal force which arouses oractivates some need and provides direction of

behaviour towards fulfillment of that need. May be physiological, biological or pyschological

Involvement

Refers to the personal relevance or importance

of a product or service that a consumerperceives in a given situation.

High involvement leads to high motivation


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Individual determinants ofbehaviour (contd)

Attitudes

Learned pre-dispositions towards objects,people and events

Not inborn or innate

Personality and self concept

It is the sum total of unique individual

characterstics that makes each one of uswhat we are.


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Beliefs: large number of verbal or mentalstatements that reflect a persons particularknowledge and assessment about something

Values are also beliefs, but Relatively few in no.

Guide for culturally appropriate behaviour Enduring

Not tied to specific objects or things

Widely accepted by members of society

Customs: overt modes of behaviour thatconstitute approved or acceptable ways ofbehaving in specific situations


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Learning and memory

We are exposed to a wide range ofinformation everyday, though we retain very

less We remember only that which is of relevance

to us, or where we have a motivation to

remember Our motives, attitudes and personality act as

filters


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Evaluation of Classicalconditioning

Repetition, Stimulus generalization anddiscrimination are useful theories

Classical conditioning theories assume that

consumers are passive beings who react withpredictable responses to stimuli after repeatedtrials.

In reality, our assessment of products are oftenbased on the rewards we experience as a resultof making specific purchases.


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Operant Conditioning

Our assessment of products are oftenbased on rewards we experience as aresult of making specific purchases-

instrumental conditioning


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Model of Instrumentalconditioning

Stimulus

Situation

(Need good looking

Jeans)

Try brand A

Try brand B

Try brand D

Try brand CUnrewarded

Baggy in seat

REWARD

Perfect fit

UnrewardedTight in seat

Unrewarded

Legs too tight

Repeat Behaviour


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Instrumental conditioning

Positive reinforcement Consists of events that strengthen the

likelihood of a specific response (using a

shampoo that leaves your hair feeling smoothand silky is likely to result in a repeatpurchase)

Negative reinforcement

A negative outcome that also encourages aspecific behaviour

Massed or distributed learning


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Evaluation of instrumentalconditioning

This model of learning applies to manysituations where consumers learn aboutproducts, services and retail stores

Classical conditioning simple behaviour Operant explains complex, goal oriented

activities

Considerable amount of learning also takesplace in the absence of +ve orvereinforcement


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Cognitive learning theory

Not all learning takes place as result of repeatedtrials

More often, however, we search for information

on which to base a decision. We evaluate whatwe learn carefully, in order to make the bestpossible decision.

Learning based on mental activity is called

cognitive learning (CL) CL theories are strongly based on memory andmemory processes


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Information processing

The process and activities which consumersengage in while gathering, assimilating and

evaluating information This is also influenced by our motives,

attitudes, personality and self concept


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Influence of the external environmenton consumer behaviour

Cultural

Sub cultural

Social class Social group

Family

Personal Other influences


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What is lifestyle?

A lifestyle typically depicts the whole person in

active interaction with his environment

Lifestyle

is a group phenomenon pervades various aspects of life

implies a central life interest

varies according to sociologically relevant variables


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Hierarchy of Influences onlifestyle

Market reaction of

Consumer

Purchase decisions

Lifestyle patterns and values

Culture and society


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Approaches to study lifestyle

Draws on a variety of disciplines such asanthropology, psychology, sociology andeconomics.

Consumer psychographic profiles are derived bymeasuring different aspects of consumerbehaviour such as Products and services consumed

Activities interests and opinions (AIO)

Value systems

Personality traits and self-conception


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Lifestyle portrayed thrugarments ads1. Dinesh Formal businessman

2. Raymonds Upperclass, non ostentatious

3. Peter England Young, upwardly mobile, yet VFM (not yetarrived)

4. Arrow Upperclass, traditional, formal (arrived)5. Levis Young, sexy, bold, iconoclastic

6. Lee Active, outdoors lifestyle

7. Siyaram Ethnic, fashionable, adventurous

8. Allen Solly Dares to be different while conforming

9. Gwalior Classy, heritage oriented, pedigree

10. Colour Plus Fashionable, youthful, variety seeker


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Female Lifestyle types-India

1. The gregarious hedonist

2. The contemporary housewife

3. The affluent sophisticate4. The tight-fisted traditionalist

5. The troubled homebody

6. The anxious rebel7. The contented housewife


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Targeting of products

Durables Washing machines Contemporary Housewife, affluent

sophisticate, gregarious hedonist

Wet Grinders Contemporary Housewife, affluentsophisticate

Vacuum cleaner

Steel cupboards Watches

Non durables Gel toothpaste

Tamarind paste

Skin care cream

Upmarket perfumes Talcum powder


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The Buying process


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Problem

recognition

Info, search& evaluation

Purchasing

Processes

Post Purchase

Behaviour

The Buying process


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Information search

Internet

Advertising

In-store promotion Dealer information

Package info

Sales personnel Samples and demo


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Factors likely to increase search

Product factors

Situational factors

Experience

Social acceptability

Consumer factors

Demographic characteristics

Personality


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Information processing

Retention

Yielding

Comprehension

Attention

Exposure


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Exposure: degree to which people

notice stimuli Attention: degree to which people focus

on stimuli

Comprehension: understanding

Acceptance: act of agreeing/disagreeing

Retention: entry of stimulus into the longterm memory

Al i l i


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Alternative evaluationsin buying decisions

Product attributes

Utility function of each attribute

Importance weights of each attribute Set of brand beliefs


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Purchase process

Physical surroundings

Social surroundings

Task definition Temporal dimensions

Antecedent conditions


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Post-purchase evaluation

Dissatisfaction

Expectancy confirmation

Satisfaction


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Marketers response strategies

Monitor consumer reaction

Product quality under Mktg.responsibility

Handle complaints quickly/efficiently

Be a courteous/helpful host

State realistic product claims

Help consumer on product use

Sell solution instead of product Post purchase assurance

Marketing Management - Pgpmi - Class 12

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