Consumer Behavior.pptx
-
Upload
charanteja9 -
Category
Documents
-
view
215 -
download
0
Transcript of Consumer Behavior.pptx
-
8/22/2019 Consumer Behavior.pptx
1/38
&
MARKETING STRATEGY
CONSUMER BEHAVIOUR
By:
Sai Dutta Panda
R Charan Teja
-
8/22/2019 Consumer Behavior.pptx
2/38
BEHAVIOURAL ECONOMICS
It is a term for a range of approaches that seek tounderstand and explain consumer behaviour
more accurately than predictions associated with
traditional economic theory.
-
8/22/2019 Consumer Behavior.pptx
3/38
BEHAVIOURAL MODELS
Economic model.
Learning model.
Psychological model.
Sociological model.
-
8/22/2019 Consumer Behavior.pptx
4/38
MARKETING STRATEGY
The marketing logic by which the business unithopes to create customer value and achieve
profitable customer relationships.
-
8/22/2019 Consumer Behavior.pptx
5/38
MARKETING STRATEGY
For formulation of marketing strategy,
2 questions need to be answered:
Which customers will the company serve?(targeting and segmentation)
How can we serve these customers best?
(positioning)
-
8/22/2019 Consumer Behavior.pptx
6/38
-
8/22/2019 Consumer Behavior.pptx
7/38
MARKETING STRATEGY
Marketing strategy includes:
Positioning.
Product strategy. Pricing strategy.
Distribution strategy.
Market communication strategy.
Market research.
-
8/22/2019 Consumer Behavior.pptx
8/38
CONSUMER BEHAVIOUR
Cultural
Culture
Subculture
Social Class
Social
ReferenceGroups
Family
Roles AndStatus
Personal
Age Occupation
EconomicSituation
Lifestyle
Personality & SelfConcept
Psychological
Motivation Perception
Learning
Beliefs &Attitudes
-
8/22/2019 Consumer Behavior.pptx
9/38
ARE WE RATIONAL
-
8/22/2019 Consumer Behavior.pptx
10/38
LOSS AVERSION
People dislike losing something twice as much
as they like gaining it.
More sensitive to losses compared to gains of
similar magnitude.
-
8/22/2019 Consumer Behavior.pptx
11/38
LOSS AVERSION
Disposition Effect: the tendency of investors to
continue holding assets that have dropped in value
and to sell assets that have increased in value.
-
8/22/2019 Consumer Behavior.pptx
12/38
Endowment Effect: the tendency of individuals toplace a higher price or value on an object if they
own it than if they do not.
We generally demand more money to part with
something once we own it than we would be
willing to pay for it in the first place
LOSS
AVERSION
-
8/22/2019 Consumer Behavior.pptx
13/38
STATUS QUO BIAS
Tendency to stick with current choices andpatterns of behaviour
Application:
Offer a free subscription for a fixed period,
which then reverts automatically to a full payment
Automatic enrolment into personal pension plans
in the US.(NEST)
-
8/22/2019 Consumer Behavior.pptx
14/38
-
8/22/2019 Consumer Behavior.pptx
15/38
DEFAULT OPTION Tendency of individuals to stick with the default
option offered, rather than make a conscious
decision.
Termed choice architecture, which encapsulates
how choices are framed, or presented, to individuals.
Examples:
University of Chicago Professors
Annual car insurance policies
-
8/22/2019 Consumer Behavior.pptx
16/38
FRAMING EFFECTS
The appraisal of alternative options can also dependon the way the choice is presented, or framed.
Preference for positive rather than negative frames,
(loss aversion).
Example: presentation of past performance
statistics.
-
8/22/2019 Consumer Behavior.pptx
17/38
ANCHORING EFFECT
Anchoring effect is a type of framing effect wherethe appraisal of options is affected by an original
starting value (or anchor).
Example: conservative, moderate and aggressive
(0%, 40%, 80%) (40%,70% ,100%)
-
8/22/2019 Consumer Behavior.pptx
18/38
HYPERBOLIC DISCOUNTING AND
PROCRASTINATION
The decision maker makes value comparisonsbetween immediate and delayed consequences
and the decision is influenced by his time
preference.
The longer the delay, the larger the IDR for futureoutcome.
IDR also declines with the size of the outcome.
-
8/22/2019 Consumer Behavior.pptx
19/38
HYPERBOLIC DISCOUNTING AND
PROCRASTINATION
Simply put, people have a tendency to prefer
short-term gratification over longer term returns.
Effects of hyperbolic discounting may be
exacerbated by our tendency to procrastinate.
Example: Pension Commission.
-
8/22/2019 Consumer Behavior.pptx
20/38
MENTAL ACCOUNTING
Mental accounting occurs when sums of moneyare treated and valued differently depending on
where they came from and/or where they are
kept. (fungible).
Example:
people coming to a store to buy at lamp and to
buy a dinner table.
New York taxi drivers.
-
8/22/2019 Consumer Behavior.pptx
21/38
AVAILABILITY EFFECT AND
SALIENCE
People judge the likelihood of an outcomeoccurring by how easily the outcome can be
brought to mind or imagined.
Overestimate the likelihood of outcomes that are
particularly memorable, highly emotional or have
happened recently.
-
8/22/2019 Consumer Behavior.pptx
22/38
AVAILABILITY EFFECT AND
SALIENCE
Example:
High level of insurance purchases made
immediately after disasters such as floods and
earthquakes.
Tendency to invest too much money in the stock
market when in boom and too little when it has
been on the decline.
-
8/22/2019 Consumer Behavior.pptx
23/38
OVERCONFIDENCE
Example:
People rated their own accuracy in prediction of
market stocks at 68% while the actual accuracy
was only 47%.
Consumers opt to forgo the opportunity to insure
themselves against unforeseen circumstances.
Investors choose actively managed funds rather
than passive index trackers
-
8/22/2019 Consumer Behavior.pptx
24/38
TRUST
The more an individual trusts another individualor organisation, the less it is necessary to check
information and impose controls.
Example: voluntary and community organisations
may be better placed to deliver financial services.
-
8/22/2019 Consumer Behavior.pptx
25/38
-
8/22/2019 Consumer Behavior.pptx
26/38
-
8/22/2019 Consumer Behavior.pptx
27/38
-
8/22/2019 Consumer Behavior.pptx
28/38
Size
Composition
Location Trends
Resources
Reputation Constraints
Values
Strengths
Weaknesses
Current
Positioning
Define, analyse
market segments.
Analyse
possibilities for
differentiation.
Select target
segments to
serve.
Select benefits to
emphasise on
customers.
Articulate desiredposition in market.
Marketing
Action Plan.
Marketing Strategy by Michael R. Pearce
MARKET
ANALYSIS
INTERNALANALYSIS
COMPETITOR
ANALYSIS
MARKETING STRATEGY AT BANCO AZTECA
-
8/22/2019 Consumer Behavior.pptx
29/38
-
8/22/2019 Consumer Behavior.pptx
30/38
-
8/22/2019 Consumer Behavior.pptx
31/38
-
8/22/2019 Consumer Behavior.pptx
32/38
-
8/22/2019 Consumer Behavior.pptx
33/38
-
8/22/2019 Consumer Behavior.pptx
34/38
-
8/22/2019 Consumer Behavior.pptx
35/38
-
8/22/2019 Consumer Behavior.pptx
36/38
-
8/22/2019 Consumer Behavior.pptx
37/38
-
8/22/2019 Consumer Behavior.pptx
38/38