consumer behaviour
DESCRIPTION
TRANSCRIPT
CONSUMER BEHAVIOR Presented By:
Manoj Patel Asst. Professor
JHUNJHUNWALA BUSINESS SCHOOL
CONTENTS
Introduction
Definition
Applications of consumer behavior
-marketing strategy
-public policy
-social marketing
-better consumer
o Sales promotion techniques influencing consumer
behavior
o Factors influencing consumer behavior
-Demographic factors
-economic factors
-Social factors
-Cultural factors
-psychological factors
o Consumer purchase decision process
Models of consumer decision process:
-need/problem recognition -information search -evaluation of information -purchase decision -post purchase behavior Consumer’s response towards malpractices in the market
Importance of studying consumer behavior
Some case studies
Conclusion
INTRODUCTION
Consumers- The ultimate users of goods &
services.
Consumer behavior- Buying behavior of
ultimate users.
DEFINITION
“The study of individuals, groups, or orgs. & the process they
use to select, secure, use & dispose of products, services,
experiences or ideas to satisfy needs & impacts that these
processes have on the consumer & society”.
APPLICATION OF
CONSUMER BEHAVIOR
1. Marketing strategy
sales promotion, advertisements,etc
For eg; afternoon snacks advertisement.
2. Social marketing
To get consumers’ attention on product- for e.g. by
graphic pictures
3. Public policy
Involves getting ideas across to
consumers rather than selling something.
4. Better consumers
Studying consumer behavior sensitize
consumers to be vigilant consumer.
1. Free samples
2. Point of purchase display
3.Sales
4.Coupons
SALES PROMOTION TECHNIQUES INFLUENCING CONSUMER BEHAVIOR
5.Loyal reward offer
6.Scratch & win
offer
7.Money back offer
8.Contest & sweepstakes
9.Price pack deals:
i. Bonus pack, ii. Band pack
10.Promotional periods
FACTORS INFLUENCING CONSUMER BEHAVIOR
1. Demographic factors
Population size
(resource depletion,increase demand)
Birth & death rates
Working class
2.ECONOMIC FACTORS
o Income
o Family life cycle:
i.
Contd.
o Liquid assets
o Credit facilities
o Expenditure pattern & savings
3. Social factors Reference groups
-Diffusion process
Contd.
Family- Roles of members
Social status
4. Cultural factors Main culture
Sub-culture
5. PSYCHOLOGICAL FACTORS
Motivation
Perception
Learning
Belief & Attitude
Cognitive dissonance
Fig- Attitude
6. PERSONAL FACTORS
Age
Occupation
Lifestyle
Personality
Economic situation
---
In broad term factors can be classified in 2 categories:
-Internal factors:
-External factors:
GENERAL FACTORS INFLUENCING: FOOD ITEMS
Price
Taste / choice
Availability
Sales promotion
Peer group
Food habit
Time taken for preparation
Attractiveness of packages
Advertisements
Buying habits
Health status
Label
Brand name
CLOTHING ITEMS
Comfort
Choice
Colour
Style
Fashion
Price
Availability
Texture
Contd.
Clothing budget
Climate
Occassion
Ease of care
Quality
Reputation of the brand
Advertisement
Profession
Habit
CONSUMER DURABLE GOODS
Colour
Price
Comfort
Quality
Need
Budget
Fashion
Sales promotion
Advertisement
Peer group
Social recognition
Price
Suitability
Availability
Colour
Advertisement
Packaging
Brand
Peer group
Fashion
Place of manufacture
Ingrdients of the product
Social recognition
Sales promotion
COSMETIC PRODUCTS
1. Need recognition/ problem recognition/
recognition of an unsatisfied need
2. Information searching
3. Evaluation of alternatives
4. Purchase decision
5. Post- purchase behavior
Consumer purchase decision process
5 STAGE MODEL OF BUYING PROCESS
1.Need recognition
Need
Recognition
Memory
EXTERNALTAL
INFLUENCES
•Culture
•Social class
•Personal influences
•Family
•situation
INTERNAL
INFLUENCES
•Consumer resources
•Motivation & involvement
•Knowledge
•Attitudes
•Personality, values
& lifestyles
MODEL OF SEARCHING
INFORMATION
Need
recognition
search
External
search
Internal
search
Memory
ENVIRONMENTAL
INFLUENCES
•Culture
•Social class personal
influences
•Family
•situation
INDIVIDUAL
DIFFERENCES
•Consumer resources
•Motivation & involvement
•Knowledge
•Attitudes
•Personality, values,&
lifestyle
Need
recognition
search
External
search
Internal
search
Memory
EXTERNAL
INFLUENCES
•Culture
•Social class
•personal influences
•Family
•situation
INTERNAL
INFLUENCES
•Consumer resources
•Motivation & involvement
•Knowledge
•Attitudes
•Personality, values,&
lifestyle
3. Evaluation of information
Need
recognition
search
Memory
I2
I3
I4
I5
I1
EXTERNAL
INFLUENCES
•Culture
•Social class personal
influences
•Family
•situation
INTERNAL
INFLUENCES
•Consumer resources
•Motivation & involvement
•Knowledge
•Attitudes
•Personality, values,&
lifestyle
Alternative evaluation
I
4. Purchase decision
5. Post purchase behavior
Purchase
Outcome
Dissatisfaction satisfaction
Alternative evaluation
CONSUMER RESPONSE TOWARDS
MALPRACTICES IN THE MARKET
Some common response towards malpractice in the market are:
Purchasing without showing any reaction
Giving less price
Doesnot buy the product
Warning the shopkeeper
contd
Returning product to the shopkeeper
Asking money back
Reporting at consumer forum/appropriate authority
CONSUMER BEHAVIOR IS IMPORTANT
FOR THE THREE PERSONS: 1. CONSUMER
2. SCIENTISTS
3. PRODUCER
CONSUMER BEHAVIOR IS IMPORTANT
TO CONSUMER BECAUSE OF THE
FOLLOWING REASONS: 1.EVER INCREASING INTENSIFYING COMPETITION.
2.PACE OF INNOVATION IS RAPID.
IMPORTANCE OF STUDYING
CONSUMER BEHAVIOR
THE STUDY OF CONSUMER
BEHAVIOR HELPS
PRODUCERS:
•To determine method of promotion.
• To design optimal services.
• To determine availability for the customers.
• To determine price
• To achieve the organizational objectives.
CONCLUSION