powerpoint presentation by sixit bhatta consumer behavior session 3

PowerPoint Presentation by Sixit Bhatta

PowerPoint Presentation by Sixit Bhatta

Consumer BehaviorConsumer Behavior

Session 3

IntroductionIntroduction

In the US, the Marlboro cowboy is usually shown alone

In Japan, the Marlboro cowboy is usually shown as part of a group…

Why?

Target Holland Offensive in US/ UK. Youth as Target Market. Whiter Play station is powerful, sexier,

strong. Challenging cultural norms but not so

much in Holland.

SolutionSolution

Culture has an influence on consumer behavior

US culture = importance of individual; not true in Asia

Japanese consumers think a single cowboy looks “lonely” and “poor”– Just an ordinary worker on a farm

Why Study Consumer BehaviorWhy Study Consumer Behavior

Targeting/ Segmenting customers.

Targeted Advertisements.Marketing Strategies

Understanding CustomersUnderstanding Customers

Who is Important?What are their Choice

Criteria?When Do they Buy?Where do they buy?How do they Buy?

Consumer Behavior ModelConsumer Behavior Model

Cultural FactorsCultural Factors

Cultural:– Values, Attitude, Religion, Language

Subculture:– Group of People with common values, attitude based

on common experience.– Teenagers, Racial group, Geographic groups

Social Class– Upper, Middle, Lower– Have common tastes, media preferences, lifestyle

Social FactorsSocial Factors

These Groups of People are

highly influenced by their groups

while purchasing

Fashion Items.

These Groups of People are

highly influenced by their groups

while purchasing

Fashion Items.

Personal FactorsPersonal Factors

Psychological factorsPsychological factors

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

PerceptionPerception

Perception is the process by which people select, organize, and interpret information.

Perception Includes:– Selective attention

• Consumers screen out information, • Rs. 5 Discount Vs. Price Rs 295 for a product worth 300• Wai Wai at at 3PM

– Selective distortion• People interpret to support beliefs• Helps fight distorted information, case insect in coke

– Selective retention• People retain points to support attitudes• Positive attributes of strong brands are retained.

PerceptionPerception

1. How many ads were you exposed to today?

2. Which ones do you remember? Why?

Buying Decision ProcessBuying Decision Process

Need Recognition Needs can be triggered by:Internal stimuli

Normal needs become strong enough to drive behavior

External stimuliAdvertisementsFriends of

friends

Needs can be triggered by:Internal stimuli

Normal needs become strong enough to drive behavior

External stimuliAdvertisementsFriends of

friends

Buyer Decision ProcessBuyer Decision Process

Information Search Consumers exhibit heightened attention or actively search for information.

Sources of information: Personal Commercial Public Experiential

Word-of-mouth Search Dynamics

Search DynamicsSearch Dynamics

Buyer Decision ProcessBuyer Decision Process

Evaluation of Alternatives

Hotel: Location, Hygiene, Price

Evaluation procedure depends on the consumer and the buying situation.

Most buyers evaluate multiple attributes, each of which is weighted differently.

Depends on Beliefs and Attitudes

At the end of the evaluation stage, purchase intentions are formed.

Beliefs and AttitudesBeliefs and Attitudes

• Belief – a descriptive thought about a brand or

service– may be based on real knowledge,

opinion, or faith• Attitude

– describes a person’s evaluations, feelings and tendencies toward an object or idea

– They are difficult to change

Buyer Decision ProcessBuyer Decision Process

Purchase Decision– Governed by attitude of others.– How strong is your motivation to

encounter negative attitudes.– Situational factors and risks

Post Purchase Behavior– Satisfaction, Delight– Cognitive Dissonance– Post purchase action

Consumer Buying BehaviorConsumer Buying Behavior

High InvolvementHigh Involvement Low InvolvementLow Involvement

Significant Differences Significant Differences between Brandsbetween Brands

Complex buying Complex buying behaviorbehavior

(Cars, Home (Cars, Home Appliance)Appliance)

Variety-seeking Variety-seeking buying behaviorbuying behavior

(Toothpastes, (Toothpastes, Candy)Candy)

Few Differences between Few Differences between BrandsBrands

Dissonance-Dissonance-reducing buying reducing buying behaviorbehavior

(Diamond)(Diamond)

Habitual buying Habitual buying behaviorbehavior

(Sugar, Rice, (Sugar, Rice, Salt)Salt)