Cb unit-v (individual influences on consumer decision making)

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  1. 1. 07/04/15 1 By : Prof. Amit Kumar
  2. 2. 07/04/15 2 Course: Consumer Behavior Unit-1 Consumer in the Marketplace Unit-2 Models of Consumer Behavior Unit-3 Cultural Influences on Consumer Decision making Unit-4 Sociological Influences on Consumer Decision making Unit-5 Personal / Individual Influences on Decision making Unit-6 Psychological Influences on Decision making Unit-7 Consumer Decision Making Process Unit-8 Consumer Influence & Diffusion of Innovation Consumer Behavior IILM-Graduate School of Management
  3. 3. 07/04/15 3 Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  4. 4. 07/04/15 4 Personal Factors Buyers decisions are also influenced by personal characteristics. These includes, 1. Age and Stage in Life-Cycle 2. Occupation & Economic Situation 3. Lifestyle & Values 4. Personality & Self Concept Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  5. 5. 07/04/15 5 Personal Factors 1. Age and Stage in Life-Cycle People buy different goods & services over a life-time. Taste in food, furniture and recreation is often age-related. Consumption is shaped by family life cycle and the number, age, and gender of people in the household at any point of time. Marketers should also consider critical life events or transitions- marriage, childbirth, illness, relocation, divorce, career change-as giving rise to new need. These should alert service providers- banks, lawyers, and marriage, employment counselors-to ways they can help. Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  6. 6. 07/04/15 6 Personal Factors 1. Age and Stage in Life-Cycle BOA is using event-based triggers to help its premier customers. BOA, using Relationship Optimizer solution, monitor large deposits, withdrawals, insufficient funds and other events that deviate from a customers normal behavior. Client managers are alerted to these events and phone the client to see if they can be of any assistance. For example, if a client has withdrawn a large sum of money to buy a home, the client manager offers to help the client find the best mortgage. While a mortgage in itself is not a debt, it is the lender's security for a debt. Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  7. 7. 07/04/15 7 Personal Factors 2. Occupation & Economic Situation Occupation also influences consumption patterns. A blue- collar worker will buy work cloths, work shoes, and lunchboxes. A company president will buy dress suits, air travel, and country club memberships. A company can even tailor its products and services for certain occupational groups: Computer software companies, for example, design different products for brand managers, engineers, lawyers, and physicians. Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  8. 8. 07/04/15 8 Personal Factors 2. Occupation & Economic Situation Product choice is greatly affected by economic circumstances: spendable income, saving and assets, debts, borrowing power, and attitude towards spending and saving. Luxury-goods makers such as Gucci, Prada, and Burberry can be vulnerable to an economic downturn. If economic indicators point to a recession, marketers can take steps to redesign, reposition and reprice their products and services. Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  9. 9. 07/04/15 9 Personal Factors 3. Lifestyle & Values Lifestyle is a persons pattern of living in the world as expressed in activities, interests & opinion. e.g. Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy, natural lifestyle. Marketers search for relationships between their products and lifestyle groups. For example, a computer manufacturer might find that most computer buyers are achievement-oriented. Marketers may then aim the brand more clearly at the achiever lifestyle. Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  10. 10. 07/04/15 10 Personal Factors 3. Lifestyle & Values Marketers are always uncovering new trends in consumer lifestyles. One of the latest lifestyle trends businesses are currently targeting is LOHAS. Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  11. 11. 07/04/15 11 Personal Factors 3. Lifestyle & Values LOHAS Consumer who worry about the environment, want products to be produced in a sustainable way, and spend money to advance their personal development and potential have been named LOHAS. The markets for LOHAS products encompasses things like organic foods, energy-efficient appliances and sonar panels, as well as alternative medicine, yoga tapes and ecotourism. Taken together, they accounted for a $230 billion market in 2000..thinking about the P & S that are perceived as better for the environment and society. Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  12. 12. 07/04/15 12 Personal Factors 3. Lifestyle & Values Lifestyle is shaped by whether consumers are: Money-constrained ( Wal -Mart-everyday low prices) or Time-constrained ( multitasking people, Texas unveiled a product design called WANDA- Wireless Any Network Digital Assistant, that allows user to talk on a cell phone while web browsing over Wi-Fi while conducting business via Bluetooth) Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  13. 13. 07/04/15 13 VALS framework -Values, Attitudes and Lifestyles 1. Innovators Successful, Sophisticated, high self esteem, image is important, niche oriented 2. Thinkers Mature, Satisfied, practical people. choices, look for value, durable, functionality 3. Achievers Goal oriented lifestyle, focus on career & family, favor for premium product 4. Experiencers Young, enthusiastic, Like cool stuff, like excitement and variety spend a high proportion of income on fashion, entertainment 1. Believers Conservative, traditional, like familiar product and loyal to established brands 2. Strivers Trendy and fun loving who are resource-constrained, concerned about the opinion of others 3. Makers Practical, down-to-earth, self-sufficient who like to work with their hands, prefer product with a practical or functional purpose 4. Survivors Few resources, buy at a discount, little motivation to buy, loyal to their favorite brands. Major tendencies of the four groups with higher resources are: Major tendencies with lower resources are: American Lifestyles Believers (principle oriented consumers) Achievers (successful, work-oriented people who get satisfaction from their jobs) Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management
  14. 14. 07/04/15 14 Personal Factors Self-Concept is the complex mental pictures people have of themselves, also known as self-image. Consumer Behavior Personal Influence on Consumer Behavior IILM-Graduate School of Management