consumer behavior by santanu mukherjee ([email protected])
DESCRIPTION
It is a Lucid description and simple presentation on Consumer psyche for making purchase decisions.TRANSCRIPT
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CONSUMER BEHAVIOURCONSUMER BEHAVIOUR
????
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• WHY PEOPLE BUY ? WHAT IS THE PSYCHOLOGICAL PROCESS OF BUYING ?
• HOW PEOPLE BUY?• WHY PEOPLE CHOOSE A PARTICULAR
BRAND OVER OTHER?• HOW THEY BEHAVE AFTER A
PURCHASE?• WHERE THEY BUY?
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What is Consumer What is Consumer Behaviour?Behaviour?
Those activities directly involved in obtaining , consuming and
disposing of products and services, including the decision
processes that precede and follow these actions
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This study draws on concepts from various other disciplines
• Psychology
• Sociology
• Economics
• Marketing
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APPLICATION OF Consumer Behavior Studies
• MARKET SEGMENTATION
• BRAND POSITIONINGBRAND POSITIONING
• MARKETING COMMUNICATION MARKETING COMMUNICATION
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Evolution of Marketing ConceptEvolution of Marketing ConceptEvolution of Marketing ConceptEvolution of Marketing Concept
Production ConceptProduction Concept Product ConceptProduct Concept Product ConceptProduct Concept
Selling ConceptSelling ConceptSelling ConceptSelling Concept
Marketing Concept Marketing Concept Marketing Concept Marketing Concept
I have produced something , Customers will accept it
Let me add few new features to my product
Push the products in the market by sales promotion methods
Focus on what consumers need or want
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FACTORS WHICH AFFECT FACTORS WHICH AFFECT CONSUMER DECISIONCONSUMER DECISION
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• DEMOGRAPHIC VARIABLES
• PSYCHOGRAPHIC VARIABLES
• CULTURAL FACTORS
• SOCIAL FACTORS like INFLUENCE OF REFERENCE GROUPS
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PSYCHOGRAPHIC FACTORSPSYCHOGRAPHIC FACTORSPSYCHOGRAPHIC FACTORSPSYCHOGRAPHIC FACTORS
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HIGH vs. LOW Involvement GOODS or SERVICES
• LOW INVOLVEMENT
FELT NEED Purchase +/-EXPERIENCE (learn)
• HIGH INVOLVEMENT
Need Recognition
InformationSearch
Evaluation of alternatives
Purchase Decision Post purchase
behavious
PSYCHOLOGICAL AND OTHER FACTORS
Repeat PurchaseRepeat Purchase
Attitude
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CONSUMER MOTIVATIONCONSUMER MOTIVATION
Unsatisfied need /unfulfilled NeedUnsatisfied need /unfulfilled NeedUnsatisfied need /unfulfilled NeedUnsatisfied need /unfulfilled NeedDesireDesireDesireDesire
Motive Motive
ACTIONACTIONACTIONACTIONKnown or unknown
Known or unknown
Psychological Psychological PhysiologicalPhysiological
Expressed or Hidden
Expressed or Hidden
Perception, Social Factors, Personal factors, Cultural factors
Marketers Try to stimulate Marketers Try to stimulate this needthis need
Marketers Try to stimulate Marketers Try to stimulate this needthis need
SATISFACTIONSATISFACTION DISSATISFACTIONDISSATISFACTION
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We use our perceptions to minimize load on our Brain because we are unable to process a huge load of information that we receive everyday.
We Are Governed By Our PerceptionsWe Are Governed By Our PerceptionsWe Are Governed By Our PerceptionsWe Are Governed By Our Perceptions
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DEVELOPING Consumer PerceptionDEVELOPING Consumer Perception
PerceptionPerception ACTIONACTION
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ATTITUDEATTITUDEATTITUDEATTITUDE
LEARNINGLEARNINGLEARNINGLEARNING
BELIEFBELIEFBELIEFBELIEF
OTHER FACTORSOTHER FACTORSOTHER FACTORSOTHER FACTORS
PE
RC
EP
TIO
NP
ER
CE
PT
ION
PE
RC
EP
TIO
NP
ER
CE
PT
ION
RE
A
L
WO
R
L
D
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ELEMENTS of PERCEPTIONELEMENTS of PERCEPTION
• SELECTIVE ATTENTION – NEED BASED ATTENTION
• SELECTIVE DISTORTION – PERCEPTUAL BLOCKING
• SELECTIVE RETENTION – ONLY REMEMBERING THAT WHAT WE NEED TO REMEMBER
• JUST NOTICEABLE DIFFERENCE(JND)
• HALO EFFECT
• PERCEPTION OF COLOR , DESIGN etc
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How we perceive things or persons that depends on our attitude , Interest , experience, expectation and on certain attributes of the things
itself. We usually notice things which we have
interest in “ Oh ! This is like my own car !!!”
‘We are influenced by our experiences and experience forms our attitudes ‘- “Kolkata Kolkata Traffic is badTraffic is bad”.
Our Expectations influence our perception towords something. ”The food quality of five star hotel must be good , because we expect high service from them “
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Something that is golden in color seems “precious“. “ Foreign “ means High quality.“ Japanese“ means “Highly technical and good quality ”“ Horse” means speed. “ Fragrance/Perfume “ elicits a feeling of “wellbeing’.“Bright Colors” means ‘exuberance’ or ‘Fun’.“Green” means fresh or young.“ fair complex means beautiful”“ Sony makes good quality Television , their Mobile Phones should be also good” “ Made in India “ confers to compromised quality. “ Athletes make good sales people”“ Anything that is Diamond Shaped evokes a feeling of “preciousness”.“preciousness”. “ “ Anything natural has Anything natural has lowlow side effects” side effects”““ BengalisBengalis are sweet lovers” are sweet lovers”“ “ South IndiansSouth Indians have not much varieties in their food ” have not much varieties in their food ”“ “ Bombay Bombay is a costly city ”is a costly city ”
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MEMORY(EXPERIENCEEXPERIENCE)
Sensory MemoryShort Term
Memory
Long Term Memory
Sensory inputs
Forgotten Material
Rehearsal
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Consumer LearningConsumer Learning
• Classical Conditioning - Pavlov
Beheavioral Learning TheoriesBeheavioral Learning Theories
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APPLICATION OF CLASSICAL CONDITIONINGAPPLICATION OF CLASSICAL CONDITIONING
Natural Stimulus -- Natural Response
Artificial stimulus -- Natural response
Fragrance of Natural Jasmine elicit pleasant feeling
Perfume of Jasmine elicit same pleasant feeling, Picture of Jasmine brings the same feeling
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Consumer Learning
• Operant Conditioning – B. F Skinner
Behaviour elicitedBehaviour elicited
Reward or PunishmentReward or PunishmentReward or PunishmentReward or Punishment
Likelyhood of Likelyhood of increase or increase or Decrease in Decrease in
response response probabilityprobability
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• Positive ( + feeling) Reinforcement –
• “Buy one , get one free”
• Negative (- feeling) Reinforcement –
“ buy Colgate, get rid of bad breath “
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COMBINATION OF Classical COMBINATION OF Classical Conditioning AND Operant Conditioning AND Operant
ConditioningConditioning
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RISK PERCEPTIONRISK PERCEPTION
• PHYSICAL RISK
• PERFORMANCE RISK
• FINANCIAL RISK
• SOCIAL RISK
• Psychological Risk
Risk takers try new products
Risk – avoiders are brand loyal
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CultureCulture
• Cultural influence on purchase
• Sub cultural influence
• Mixed cultural Influence
Subculture• BENGALI,GUJRATI ,Punjabi etc
Mixed Culture
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PERSONAL FACTORS• AGE
• FAMILY LIFE CYCLE
• INCOME
• PERSONALITY AND LIFE STYLE
YOUNG AND SINGLE
JUST MARRIEDMARRIED WITH KID
MARRIED WITHOUT KID
MIDDLE AGED
OLD
KIDS
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PERSONAL FACTORSPERSONAL FACTORSPERSONAL FACTORSPERSONAL FACTORS• CONSUMPTION IS DOMINATED BY THE SOCIAL
CLASSES AND THEIR INCOMESPREVIOUS SOCIAL CLASS STRUCTURES
> UPPER CLASS MIDDLE CLASS LOWER CLASS
MODERN CLASS STRUCTURE Globals (Expats) ( More than Rs. 20 Lakh /annum) Strivers ( Rs 5- 15L / annum) Seekers ( Rs 2- 5L /annum) Aspirers ( Rs 90,000 – 2L/annum ) Deprived ( Less 90,000 / annum)
MIDDLE CLASSMIDDLE CLASS
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CONSUMPTION PATTERN IN INDIA FOR CONSUMPTION PATTERN IN INDIA FOR MIDDLE CLASSMIDDLE CLASS
• GROWTH IN YOUNG WORK FORCE
• WORKING COUPLES WITH NO KIDS
• WORKING COUPLES WITH ONE KID
• INCREASE IN WHITE COLLAR PROFESSIONALS LIKE DOCTORS , IT PEOPLE , ARCHITECTS, FASION DESIGNERS ,BANKERS , LAWERS etc.
THIS CLASS GOES FOR EXPENSIVE ITEMS,EATING OUTS , WANTS TO SHOW OFF , ENJOYS A LOT OF CREDIT FACILITIES –
INDULGE IN ASPIRATIONAL PURCHASESASPIRATIONAL PURCHASES
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DEMOGRAPHIC SEGMENTATION – Source : Mint , March 16 ,2012 , kolkata N=2000 , Citi emerging India Research
Highest Spending segment
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REFERENCE GROUPS
• PRIMARY GROUP or Family of Procreation or family of orientation
• ASSOCIATIVE OR SECONDARY GROUP
• CELEBRITIES
• OPINION LEADERS
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Consumer’s Behavioural Decision Process
FIVE STAGE MODEL
Need Recognition
InformationSearch
Evaluation of alternatives
purchase Decision Post purchase
behaviours
TOTAL SET
CONSIDERATION SET
AWARENESS SET
CHOICE SET DECISION SET
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Post Purchase Behaviour
Performance matches
expectation
Performance exceeds
expectation
Performance below
expectation
Neutral Exit Complain
Negative Word
of Mouth
Cognitive Cognitive DissonancDissonancee
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MODELS OF CONSUMER BEHAVIOURMODELS OF CONSUMER BEHAVIOUR::
1.1. The Nicosia ModelThe Nicosia Model
2.2. The Howard – Sheth ModelThe Howard – Sheth Model
3.3. The EBM ModelThe EBM Model
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The Nicosia ModelThe Nicosia Model
Refer to page -374 ,S S kazmi , Batra book
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The Howard – Sheth ModelThe Howard – Sheth Model
Refer to page -375 ,S S kazmi , Batra book
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ENGEL,BLACKWELL,MINIARD MODELENGEL,BLACKWELL,MINIARD MODELENGEL,BLACKWELL,MINIARD MODELENGEL,BLACKWELL,MINIARD MODEL
Refer to page -376 ,S S kazmi , Batra book
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Diffusion of InnovationDiffusion of Innovation
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• SEGMENTATION IS A PROCESS OF DIVIDING ENTIRE HETEREOGENOUS MARKET IN DIFFERENT CATEGORIES DEPENDING ON THEIR HOMOGENIOUS (SIMILAR) CHARACTERISTICS
3-5 lakh /annum
5- 7 lakh /annum
7- 10 lakh /annum
>10 lakh /annum
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Bases for Segmentation
• Geographic – Location
• Demographic – Age, gender, Income • Psychographic – Personality , Lifestyle
• Behaviorist – Occasion, Benefits sought
• Demographic – Psychographic – Mixture of Demo and Psycho
A Product for eastern India, A product for Old people , A product for teenagers , A product for fun loving people, A product for wedding season
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1.CONSIDER VARIABLES OF 1.CONSIDER VARIABLES OF SEGMENTATIONSEGMENTATION2. EVALUATION of SEGMENTS 2. EVALUATION of SEGMENTS
3. DEVELOP PROFILE FOR EACH 3. DEVELOP PROFILE FOR EACH SEMNENTSEMNENT
SEGMENTATION VARIABLESSEGMENTATION VARIABLES
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MARKET SEGMENATIONMARKET SEGMENATION
Entry Level SegmentEntry Level Segment
Mid Level SegmentMid Level Segment
Upper SegmentUpper Segment
Premium SegmentPremium Segment
MARUTI SUZUKIMARUTI SUZUKI – – Segmentation Segmentation
Based on Price and affordabilityBased on Price and affordability
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