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Meaning of Consumer/Buyer
Behavior Consumer is the most important person in business.His attitude, behavior, needs and reactions play animportant role in regard to marketing plans andpolicies of companies.
Companies study the behaviours of consumersconstantly for their benefits.
Consumer behavior is comparatively new area within
the scope of business management. The purpose of study of consumer behavior is to
understand human actions and reactions (consumerbehaviour) in the best possible manner.
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Defining Consumer
Behavior1) Consumer Behavior is the Process Involved When Individuals or
Groups Select, Use, or Dispose of Products, Services, Ideas orExperiences (Exchange) to Satisfy Needs and Desires.
2) Consumer behaviour refer to the study of how individuals makesdecisions in spending their available resources like time, money and effort
on various consumption related items.
3) Kotler & Armstrong : Consumer buying behaviour refer to the buying
behaviour of consumer
individual household who buy goods and servicefor personal consumption
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Definition of Consumer/Buyer
behaviour Consumer behavior is the process whereby
individuals decide what, when, where, how and
from whom to purchase goods and services. Walters and Paul
Buyer behaviour is all psychological, social andphysical behaviour of potential customers as they
become aware of, evaluate, purchase, consume andtell others about the products and services.
Webster
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Blackwell,Miniard &Engel defined behaviour as activitiespeople undertake when obtaining, consuming anddisposing of product and service
Consumer behaviour: Identify the three element ofconsumer behaviour:
A)Obtaining product & service: Obtaining refer to the
activities leading up to and including the purchase ofproduct.
B) Consuming product and services: Consuming activityrefer to how, where, when, and under what circumstancesconsumer use product
C) Disposing product and services: Disposing activitiesrefer to how consumer get rid of product and packagingafter consumer the product
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Consumer behaviour refer to the study of how individuals makesdecisions in spending their available resources like time, money andeffort on various consumption related items.
Who buy product or services
How do they buy product or service?Where do they buy them?
How often do they buy them
When do they buy them?
Why do they buy them?
How often do they use them?
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Importance of Studying Consumer
Behaviour The economists have called the customer a king
The study of consumer behaviour is very useful indetermining the form, style, packing ,brand
,trademark etc of the product Consumer behaviour also help to formulate various
marketing policies
To understand consumer behaviour one can know the
various consumption related aspects of individuals
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Factors influencing buyer behaviour
Social factors.-Family, roles and status, ref. groups Economic factors.-size of family, consumer
credit,income
Cultural factors.-sub culture, soc. Class (wealth,income)
Personal factors.-age, occ., life style, personality
Physiological factors.-basic needs
Psychological factors.-motivation, perception,learning, beliefs, attitude
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Meaning & Importance of Buyer/Consumer
Psychology Knowledge : knowledge is one type of information and
on the basis of the knowledge, the psychology ofcustomer develop
Attitudes & Emotions: Attitude is a state of mind orfeeling. if includes a predisposition to behave in someway
Intentions : Intention means desires to do something Buying Motives: It is the integral state which direct the
behaviour of a person.
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Types of Buyers
1. Friendly/co-operative buyer.
2. Timid/reserved/shy buyer.
3. Silent buyer.
4. Undecided buyer.5. Price or quality conscious
buyer.
6. Argumentative buyer.
7. Suspicious buyer.
8. Impatient buyer.
9. Bargain buyer.
10. Impulsive buyer.
11. Over-cautiosu buyer.12. Slow-thinking buyer
13. Rude/ill-manneredbuyer.
14. Clever/intelligentbuyer.
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Issues During Stages in
the
Consumption Process
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Decisions taken by the buyer while
purchasing
Need recognition Information search
Evaluation ofalternatives
Purchase decision
Post-purchaseBehaviour
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Type of buying behaviour
Complex buying behaviour
Dissonance reduces buying behaviour
Variety seeking buying behaviour Habitual buying behaviour
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Complex buying behaviour: When the customerhighly involved in the purchase and there aresignificant different among brand, they show this type
of behaviour Dissonance reducing behaviour: The customer is
highly involved because the product is expensive andrisky. there are very little difference among brands so
the customer is confused and wants to collect a lotinformation. After the purchase the customer mightdevelop dissonance because of dissatisfying feature ofthe purchased product
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Varitey Seeking buying behaviour: Customer showlow involvement because the product is not expensiveand purchased frequently
Habitual buying behaviour: customer has lowinvolvement and absence of significant brand different.
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Theories of personality
Trait theory
Freudian psychonalytic theory
Jungian theory Socio psychological or New freudian theory
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Trait theory: A personality trait can be define as anenduring attribute of a person that appears constantlyin a variable of situation
Individual can be describes in term of construction oftraits such asaffiliation,achievement,anxiety,aggression anddependency
Trait distinguishes one personality from another.
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Freudian psychoanalytic: psychoanalytic theory isbased on the notion that man is motivated more byunforeseen forces than he is controlled by consciousrational thought
Element:
1)Pre-conscious element
2) Conscious element(feeling,belief,desier)3) Unconscious(ideas,wishes,dreams)
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Jungian Theory: theory based on predisposingpatterns borrowed by the individual from his ancestors
Sensing intuiting Thinking feeling
Extroversion Introversion
Judging perceiving
Socio psychological: according to this, the individualand society are interlinked
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Self concept Selfconcept can be described simply as how one perceives
himself and his behaviour in the market place
Self- concept divided into six types as:
Actual Self: How a person actually perceives himself Ideal Self: This is concerned with how an individual would like
to ideally perceive himself
Expected Self: This kind of image is between actual and self-image
Social self: How a person thinks other perceive him Ideal social self: How a person would like other to perceive him
Situational Self:A person self image in a specific situation
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Perception
Perception is the process through which theinformation from outside environment is selected,received, organized and interpreted to make itmeaningful information results in decisions andactions
Perception is define as the process by which anindividual select, organize and interpret stimuli into ameaningful and coherent picture of the world
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Perception and consumer
behaviour People can emerge with different perception of the same object
because of these perceptual processes Selective attention Selective distortion Selective retention
Selective Attention: people are exposed to a huge amount ofdaily stimuli in the form of advertisement but a person cannotpossibly give attention to all the advertisements
Selective Distortion: It describes the tendency of people totwist information into personal meaning
Selective Retention: people tend to retain information thatsupports their attitudes and beliefs
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Consumer attitudeAttitude have usually been associated with the notion
of liking or disliking something
Attitude can be define as a learned orientation ordisposition ,towards an object or situation ,whichprovides a tendency to respond favourably or un-favourably to the object or situation
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Characteristics of AttitudeAttitude are not innate Appearance of an attitude is
dependent on learning
Attitude cannot be observed
Attitude are not temporary states but are more lessenduring once they are formed
Attitude always imply a relationship between the
person and objects Marketer are concerned with understanding attitude
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Attitude Formation
Attitude formation is learning on attitude There are some sources of influence on attitude formation Personality affects attitude formation
Economic factor Family factor Social factor Political factor Psychological factor Personality factor Reference group factors
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Attitude components
Congnitive component(belief)
Affective component(feeling)
Conative component( response tendencies)
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Attitudes - defined
An attitude may be defined as a learned predisposition torespond in a consistently favourable or unfavourablemanner with respectto a given object
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Copyright 2005 McGraw-HillAustralia Pty LtdPPTs t/a Consumer BehaviourbyKaren WebbSlides prepared by Sarah
Fletcher and MorenaDobrowolski 9-27
Attitude models Two main attitude models:
Tri-component model
Fishbeins multi-attribute model
The tri component model of
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The tri-component model of
attitudes
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Copyright 2005 McGraw-HillAustralia Pty LtdPPTs t/a Consumer BehaviourbyKaren WebbSlides prepared by Sarah
Fletcher and MorenaDobrowolski 9-29
The tri-component model of
attitudesAttitudes are generally considered to be made up of
three elements:
Affective component
Feelings
Based on physiological nervous reactions to an object
Cognitive component
Beliefs
What a person believes to be true about an idea, event,person, activity or object
Behavioural intentions
An observable reaction
e.g. to purchase a particular brand
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9-30
Fishbeins multi-attribute model of
attitudes Multi attitude model examines attitude in terms of
selected product attributes or belief
Attitude towards object model
Attitude towards behaviour model
Attitude towards ad model
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Functions of attitudesAttitudes have 4 main functions:
1. Adjustment function
Attitudes help consumers adjust to situations People seek out group acceptance in order to gain praise or
rewards and avoid punishment
2. Ego defensive function Attitudes are formed to protect the ego
3. Value expressive function A consumers attitudes are often a reflection of their values
4. Knowledge function Attitudes help consumers make decisions and process and
filter information
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The Customer as a Learner Learning is a change in the content of long-term
memory
Human learning is directed at acquiring a potential forfuture adaptive behavior
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Consumer psychographic Psychographics is commonly known as study of
lifestyle of consumers. It plays an important part inconsumer behaviour and helps in the promotion of
those products and services which are related to itemsof personal care, fashion, automobiles, telephonicservices, etc. in a country like India where lifestylediffers widely from region to region, the study ofconsumer psychographic is of great significance to themarketer.
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Measurement of life style Demographics age,education,income,family, gender
etc
Attitude people, place, ideas etc
Usage rate heavy,medium, light, no users
Media pattern the specific media the consumerutilise
Activities and interests Hobbies, sportValues Widely held about what is acceptable or
desirable
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Determinants of consumer buying
behaviour Cultural factor includes a consumers culture,
subculture and social class
Social factor include reference group,Family, status
Personal factor include age occupation,lifestyle
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Family roles by stage in decision
MAKING Consumer information processing
Brand evaluation
Intention to buy Purchase
Post purchase evaluation
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Social factor
Reference group
Family
Opinion leader(opinion leadership is the process bywhich one person informally influences the action orattitudes of other who may be opinion seeker ormerely opinion recipients)
Role and status
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Culture
Culture is a set of learned belief values,attitudes,habits and from of behaviour that are shared by asociety and are from generation to generation
Features :
The culture is inculcated into an individual and passedon from generation to generation
Cultural values keep on changing through the passageof time
The cultural values are shared by the society as whole
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Sub cultural Each cultural contains smaller group of sub cultural
that provides specific identification for its member.the member of s specific sub cultural possess belief
,values and custom that set them apart from othermember of the same society
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Social class
Social class are relatively homogeneous and ensuringdivision in a society that are hierarchically ordered andwhose member share similar values ,interest and
behaviour ( kotler) Characteristics:
Person of two different social classes tend to behave
differently Social class is not measured by a single variable but is
measured as a weighted function of one occupation,income ,education ,status
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Social class is hierarchical
A person social class in indicated by number ofvariables as occupation ,income ,wealth and educationrather than by any single variable
Social class categories
Upper class
Middle class Lower class
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Consumer decision making process
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BUYING PROCESS
Wants and Needs
Pre-Purchase Activity
Purchase Decision
Post-Purchase Evaluation
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PRE-PURCHASE ACTIVITY
Relevant information search
Evaluation of alternative choices
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RELEVANT INFORMATION SEARCH
Personal Experience
External Searches
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EXTERNAL SEARCHES
Formal searches
Informal searches
Internet searches
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POST-PURCHASE EVALUATION
After the buyer actually purchases the
product, the buyer then evaluates how
satisfied he/she is with the product
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POST-PURCHASE BEHAVIOR
Satisfied with purchase
Disappointed in product
Buyer remorse
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Types of decision process Extended consumer decision making
Limited consumer decision making
Routing consumer decision making