Introduction to Marketing

Consumer Behavior & PsychologyDefinitionConsumer buyer behavior refers to the buying behavior of final consumers- individuals and households that buy goods for consumption- Kotler

All these final consumers make up the consumer marketIt can also be defined as the study of consumers and the processes they use to choose, use (consume), and dispose of products and services.2Model of Consumer BehaviourHow do consumers respond to various marketing efforts the company might use?

Characteristics Affecting Consumer behaviourSocial FactorsGroupsFamilyRoles & StatusPersonal FactorsAge & life-cycle stageOccupationEconomic situationLifestylePersonality & self concept

Psychological FactorsMotivationPerceptionLearning Beliefs & Attitudes

Types of Buying Decision Behaviour

Complex Buying BehaviourType of ProductExpensiveRiskyPurchased infrequentlyHighly self-expressive

BrandMust understand the information gathering and evaluation behaviour of buyersNeed to help buyers learn about the product class, attributes and relative importanceDescribe benefits Print media Motivate stores sales people and buyers acquaintance to influence the final brand choice

eg: Electronics

Dissonance-reducing Buying BehaviourType of productExpensiveRiskyPurchased infrequentlyHighly self-expressive

BrandProvide a good priceOffer convenienceMitigate dissonance - provide after sales communication with evidence and support to help consumers feel good about there product

eg; Carpets, Furniture

Habitual Buying BehaviourType of productIn expensiveFrequently Purchased Familiar/ loyal

Brand Provide a good priceOffer PromotionsCreate top of mind use colors symbols (TV led advertising)

eg; personnel care products

Variety Seeking Buying BehaviourType of productIn expensiveFrequently Purchased FamiliarLarge choice/varietyBrand Market Leader create habitual behaviourDominating shelf spaceStocking upReminder advertisementsChallengersOffers lower price/special dealsCoupons, samplesAdvertising that presence reason for trying something new

eg; confectionary

The Buyer Decision Process

The Buyer Decision Process for New ProductsConsumer go through five stages in the process of adopting a new product:AwarenessInterestEvaluationTrialAdoptionZero Moment of Truth

Individual Differences in Innovativeness

Marketing efforts in innovationInfluence of Product Characteristics on Rate of AdoptionRelative advantageCompatibilityComplexityDivisibilityCommunicability