What is Sales Management? Introduction to Personal Selling L2 Prepared by: Prof Sameer Kulkarni.
Consumer Behaviour Prof Sameer Kulkarni. Consumer Mind: A Black Box Stimulus Company Controlled...
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Transcript of Consumer Behaviour Prof Sameer Kulkarni. Consumer Mind: A Black Box Stimulus Company Controlled...
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Consumer Behaviour
Prof Sameer Kulkarni
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Consumer Mind: A Black Box
StimulusCompany Controlled
ProductPrice
AdvertisingPromotion
DisplayDistribution
Social
Word of MouthReference
Group
Consumer Mind(Black Box)
Response
Buy
No Buy
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Customer Decision Making Process
TechnologyDevelopment/
New Generations
CUSTOMERAwareness
Values•Differ Pleasure vs.•Instant Pleasure
Social Structure•Individualism vs.•Collectivism
Personality•Assertive•Exhibitionist•Self Concept•Life-Style•Aspirations
Drivers of Change
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How they Buy ?
• High involvement products:High priceComplex featuresSignificant differences between alternativesHigh perceived riskReflect self concept of buyerE.g. Selection of a Car
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How they Buy ?
• Low involvement productsAlternatives within the same product class are
similarDoes not reflect buyers self conceptFrequent brand switching behaviour• E.g. buying a bathing bar (Toilet Soap)
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Purchase decision in low involvement products
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Theory of evoked set (Howard & sheth’s theory)
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Its not product but the Situation
• Routinized response • Limited problem solving• Extensive problem solving
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Types of Buying Behavior
High Involvement Low Involvement
Significant DifferencesBetween Brands
Complex BuyingBehaviour
Variety Seeking BuyingBehaviour
Few DifferencesBetween Brands
Dissonance Reducing BuyingBehaviour
Habitual BuyingBehaviour
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Motivational reasons
• Sheth’s consumer motives– Five dimensions of motivation concerning
products/services benefits• Functional – utility or function performed• Aesthetic/emotional – appearance or attractiveness• Social – status or esteem value• Situational – unexpected benefit• Curiosity – interest aroused
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Purchase decision in high involvement products
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Routinized response(straight re buy)
• Customer is aware of his /her choice• Decision is based on personal experience• Spends little /no time in choosing an alternative• Perceives low risks
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Limited problem solving(modified re buy)
• Launch of a new product which leads in a change in the customer’s decision criteria.
• Buying leads to trial purchase• Brand extension helps in removing obstacles• Perceives moderate risk
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Extensive problem solving(new task)
• Requires extensive learning• Awareness about alternatives is zero• Has no decision criteria• Unable to evaluate different brands• Relocating to a new & unknown environment
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Rational behind behaviour
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Psychological Factors
Motivation
Learning
Perception
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Motivation(Sigmund Freud)
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Influence on Buyer Behaviour
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Values motivates in buying
• Functional value• Conditional value• Social value• Emotional value• Knowledge value• (according to Sheth , Newman & Gross)
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Learning Theory• Human behaviour is learntOne learns @ the pain of punishmentOr @ the lure of rewards• Directing human behaviour is done by developing
stimuli and cues which bring to fore the latent need• Attractive advertisement , shelf display, packaging,
how to use instructions ,store layout ,availability & sales persons are examples of cues developed by a
marketer.
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Basis of Differences • Gender differences –
hunter=men, nurse=women
• Intelligence differences – caste, class,
education, etc.
• Personality differences – job specializations
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• Plato stated more than 2000 years ago: “No two persons are born exactly alike; but
each differs from the other in natural endowments, one being suited for one occupation and the other for another.”
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Cognitive dissonance theory
• Leon Festinger-1957 ,wrote the theory of cognitive dissonance
• Psychological discomfort caused by inconsistency among a person’s beliefs , attitudes / actions e.g. smoking
• Varies in intensity based on importance of issue & degree of inconsistency
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Lifestyles(Indian Perspective)
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Buyer lifestyle• Survivors: Price conscious , not very knowledgeable , depressed.• Sustainers: Strugglers , swayed by brand guarantee , impulse
buyers.• Belongers: Conventional conservative , nostalgic ,
unexperimental.• Emulators : Ambitious , upwardly mobile , status conscious , buy
to impress others.• Achievers : Leaders , work in hi tech top line products.• I-am-me: Young , Self engrossed , impulsive.• Experimental : Pursue a rich inner life , High sense of social resp.• Integrate : Fully matured psychologically , combination of best
elements
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