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Consumer Behaviour is the study of howindividuals make decisions to spend their

available resources(time,money,effort) onconsumption related items.What they buy? How they use and disposethe products?When they buy?Why they buy?Where they buy,How often?

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Cultural factorsSocial factors

Personal factorsPsychological factorsStudy these factors from Reference books .

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Culture refers to traditions , taboos, values of the society within which an individual lives.

Certain nationality or religious identityCultural messages are highly conspicuous inmarketing communicationPillsbury-love

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Culture affects buying behaviourEggless cakes for Jains ,Alcohol free productsoffered to Gulf countries.

Purchase of Durables, gold on Dassehra Indian cultureSubculture has more specific identificationMarathi Ads are aired to cater to the vastmajority of people in the stateFrench particular about their language

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Family ,friends, formal social groups,colleagues, consumer action groups influencethe consumer buying behavior significantly.Family : Family of orientation ones parentsand siblingsFamily of Procreation -spouse and children

(Newly wed couples buy consumer durables)Husbands have started taking keen interest athome !!

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Reference groupsThey have a direct /indirect influence on a personsbehavior

Primary reference groups1.Membership Group: Members of SwadeshiJ.M/Gandhigiri club/Tulsi Mahima2.Aspirational group-one aspires to join !3.Disclaimant group- Being a member - dislikes thevalues4.Avoidance /dissociative group- not a member anddislikes their attitudes & behaviour

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Secondary reference groupsOpinion leaders special skills ,knowledge ,

personalityIdentify media read /tuned to by opinionleadersE.g: kitchenware Housewife is the bestopinion leaderMukhiya , Teachers,Doctors in ruralmarkets.

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AgeChoice of accessories , entertainment

Video games ,Sweet meat youngadolescentsStage in lifecycleDivorce, remarriage , widowhood lifecircumstances have an effect on consumerbehavior.

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Occupation and financial statusSelf employed .,Different professions Personality , self concept, Lifestyle affect buyingbehavior e.g. Choice of apparel ,Real estate,home appliances, automobilesPersonality psychological characteristics thatgive enduring & consistent responses to theenvironment

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Introvert Extrovert, Sociable Loner ,Competitive co-operative

Reid and Taylor conveys success andmaterial wealth aspiring young executivesMTV appeals to people who value thatcharacterization

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Motivation : Why one buys and when?Perception : Understanding Customers

perception would help marketers creating aproper image around the brand (Positioning)Beliefs and attitudesLearning test rides , free samples are aimedat changing attitudes towards the product

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Segment that wants gourmet food in a luxuryhotel has different motives from the

segment that hangs around at a food jointwith friends.Belief : A consumer believes that Swatchoffers international qualityBlue and green colours ( Perception security)

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Classical conditioning stimulus response behaviour

, Humour , heavy metal music .Operant conditioning positive or negativereinforcement ( free samples)..intrinsic rewardsare more important

Cognitive learning learning withoutreinforcement..repeated messages sent bymarketersVicarious learning modelling / admiring glance..in

anticipation of rewardsReasoning allow the recipients to draw theirconclusions

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Initiator gives the idea of purchasing theproductInfluencer - advices and influences the purchasedecisionDecider a person who decides where ,when ,how to buy a productBuyer actually purchases the productUser final beneficiary who uses the productMaintainer - repairs /services the productDisposer

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With 2010 sales of nearly $12 billion, KelloggCompany is the worlds leading producer ofcereal and a leading producer of convenience

foods, including cookies, crackers, toasterpastries, cereal bars, fruit-flavored snacks,frozen waffles and veggie foods.

Battle Creek ,Michigan ( 1906)

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The Companys brands include Kelloggs ,Keebler , Pop-Tarts , Eggo , Cheez-It , All- Bran , Mini-Wheats , Nutri-Grain , Rice

Krispies , Special K , Chips Deluxe , Famous Amos , Sandies , Austin , Club , Murray ,Kashi , Bear Naked , Morningstar Farms ,Gardenburger and Stretch Island .

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Soggy experience.Taste of the products did not suit Indianbreakfast habits.Positioning error : Health Platform

Indians value quantity of breakfast over quality!Other markets it was Fun and Taste SEC A , affluent customers : PricingCustomers at the higher end failed to perceive

any extra benefits in Kelloggs products.Kelloggs disagreed and offered high Customervalue : Nutrition and Taste

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Mumbai : disguised demandIndianising the flavorsMazza : Mango Elaichi , Coconut Kesar andRosePouches instead of Cardboard packaging60 gm packagesIron fortification : The Kellog Breakfast Week SchoolsSupermarkets , Petrol Pumps and Airports

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Repositioning : fun filled chocos and frosties

The effort to develop products specifically forthe Indian markets helped it make significantinroads!!!

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Extensive problem solving buying behaviorExpensive and infrequently purchased productsConsumers collect a lot of dataHigh involvement productMarketers must differentiate their brand to stayahead of competitionMarketers must help customers know thebrandE.G : Washing machine, music system,automobiles

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Routine buying behavior.

Routine purchasesLow involvement products SaltIn case the customer reaches for the samebrand, it is due to habit and not brand loyaltynecessarily

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Variety Seeking behaviorNeed for variety is felt by the consumer

Brand switching for variety than satisfactionreasonsE.g: Cookies

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Impulse buying behaviorOn the spot decision

Instantaneous purchaseMarketers lure customers through free gifts,discounts.In store displays-danglers, banners, cutoutsPOP and POS communicationSensory Branding

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Problem /need recognition

Information searchEvaluation of alternatives

Purchase decision and

Post purchase behavior

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A person recognizes a need or a problemInternal stimuli Hunger

External stimuli-AdsMarketers need to identify stimuli that triggerneeds

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Two levels of arousal1. Heightened attention : more receptive to

information about the product

2. Active information search calls up friends,visit stores.Sources of Consumer InformationPersonal sources- family ,friends ,neighboursCommercial sources- dealers, sales persons.Ads, displaysExperiential sources- handling the product ,freesamples /test rides.Public sources media, Testing labs.

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Awareness set total set of brandsContender set applies criteria like budget,

preferences.Choice set strong contenders form which he/she will purchase

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Consumers seek bundle of benefitsE.g : while buying a camera picture ,focus

,size and speedCustomers develop brand beliefs on everyattribute of the brand. Customers believethat Olympus camera has better focus,pocket friendly (Denim pockets)These set of beliefs enable consumers todevelop Brand image

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Factors affecting purchase decisionAttitude of others-Purchase intention

adjustmentUnanticipated situational factors health , job , death of spouse.Perceived risk money ,self confidence ,Attribute uncertaintyDecisions Brand vendor- quantity-timing-payment

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Concept of satisfaction /delightCognitive dissonance when he does not get allthe benefits he was looking for or thecompetitors brand offers his sought benefits Reinforce: yeh hi hain right choice baby Educate the consumer for proper usage Washing machines for making lassi in PunjabDisposal no harm to the environment-Kodak ,HP empty cartridges, Crush the bottle afteruse