Post on 22-Jan-2015
description
CONSUMER BEHAVIOUR
Satish joshi
“Consumer Behavior: How and Why People Buy”
A basic study of why consumer do what they do in the marketplace. If the business is consumer-centric in its orientation, the study of consumer behavior would be the starting point of all business and marketing decision making.
The study of consumer behavior includes the company asking the right questions in order to understand and analyze its consumers. In some instances, consumers are analyzed as a segment, while in others, they are analyzed as individual consumers.
CONSUMER BEHAVIOUR
In order to analyze consumers, marketers need answers to the following questions:
1. Who Buys? What is their demographic, geographic,
psychographic or behavioral orientation?2. What is Bought? Is it a core product, augmented product,
service, etc.3. Why is the Purchase Made? Influences on purchasing – family, culture,
friends, marketers, age, social status, etc.
CONSUMER ANALYSIS
Consumer BehaviorIn order to analyze consumers, marketers need
answers to the following questions:4. How Often is the Purchase Made? Frequency of purchase, number of purchases,
etc.5. Where is the Purchase Made? Location, convenience, online, offline, etc.6. When is the Purchase Made? Time, season, occasion, etc.7. How is the Purchase Made? Decision making process
Consumer Behaviour is also defined as activities people undertake when obtainig, consuming and disposing of products and services.
Model of Consumer BehaviorMarketing and
Other StimuliMarketing andOther Stimuli
Buyer’s Black BoxBuyer’s Black Box
Buyer’s ResponseBuyer’s Response
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
Characteristics Affecting Consumer Behavior
Buyer’s Decision Process
Product Choice
Brand Choice
Dealer Choice
Purchase Timing
Purchase Amount
Characteristics Affecting Consumer Behavior
BuyerBuyer
Psychological
Personal
Social
Culture
Factors Influencing Consumer Behavior
Cultural Factors
Culture is the most basic determinant of a person’s wants and behavior
Culture includes a set of learned beliefs, values, attitudes, habi6ts and forms of behaviour that are shared by a society and are transmitted from generation to generation within that society.
Subcultures are groups of people with shared value systems based on common life experiences and situations
Subcultural category Variations (examples)
Religion Hindu, Muslim, Parsi, Jain
Geographic location North, South, East
Age Preteen, Teen, Gen Y, Gen X, Baby Boomers, Seniors.
Gender Male, Female
Occupation Service, Professionals
Social class (status) Upper, middle, lower
“Social class is the relatively permanent and homogenous division in the society into which individuals and families sharing similar values, life styles, interest and behaviour can be categorised”
Characteristic Features of Social Classes
Persons within a given social class tend to behave alike
Social class is hierarchicalSocial class is not measured by single variable
Social class is continuous
Social Classes
• Six classes: upper-upper, lower-upper, upper-middle, lower-middle, working class, lower class.• Two-category social class—Blue and white collar.• Nine category-- lower-lower, lower-middle, lower-upper middle-lower, middle-middle, middle-upper, upper lower, upper-middle, upper-upper class.
India’s SEC (socioeconomic classification) combines occupation and education and classify respondent in SEC A1, A2,B1, B2, C1, C2 and D classes.
Types of Reference Groups
Normative reference groupComparative reference group Indirect referenceContactual reference groupAspirational groupDisclamant groupAvoidance group
Consumer Purchase Process
Defining the need / want
Internal or external sources
Defining criteria
Whom to buy and
when to buy
Expectations and reality –
cognitive dissonance
Types of Buying Decisions
ComplexBuying
Behavior
Dissonance-Reducing Buying
Behavior
Variety-SeekingBehavior
HabitualBuying
Behavior
HighInvolvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolvement