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

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By :

Prof. Amit Kumar

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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

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Consumer Behavior Personal Influence on Consumer Behavior


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Personal Factors

• Buyer’s 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



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Personal Factors


– 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.



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Personal Factors


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 customer’s 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 For example, if a client has withdrawn a large sum of money to buy a home, the client manager offers to help the client find the best mortgage.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.



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Personal Factors


– 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.



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Personal Factors


– 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.



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Personal Factors

3. Lifestyle & Values• Lifestyle is a person’s 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.



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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.



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Personal Factors


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.



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Personal Factors


• 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)



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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 LifestylesBelievers (principle oriented consumers)Achievers (successful, work-oriented people who get satisfaction from their jobs)



http://www.sric-bi.com/VALS/survivors.shtml

http://www.sric-bi.com/VALS/makers.shtml

http://www.sric-bi.com/VALS/strivers.shtml

http://www.sric-bi.com/VALS/believers.shtml

http://www.sric-bi.com/VALS/experiencers.shtml

http://www.sric-bi.com/VALS/achievers.shtml

http://www.sric-bi.com/VALS/thinkers.shtml

http://www.sric-bi.com/VALS/innovators.shtml

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Personal Factors

Self-Concept is the complex mental pictures people have of

themselves, also known as self-image.



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

Leadership & Management

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