intro of c.b

8/14/2019 Intro of C.B

http://slidepdf.com/reader/full/intro-of-cb 1/58

Consumer Behavior: The buying behavior of final consumers,individuals & households who buy goods& services for personal consumption.



Customers vs. Consumers:

Customer: customer means who purchases the

product from the marketer or from the retailer orfrom the wholesaler. Here we don’t bother aboutwho uses the product.

Consumer: consumer means who uses theproduct of course purchased by the customer.Here we consider finally who is going to use theproduct we call them as consumer.



The Ultimate Consumer: Those individuals who purchase for thepurpose of individual or householdconsumption.



Significance in Daily Lives:

Much of our time spent directly in theMarketplace, shopping or engaging in other

activities.

A large amount of additional time is spentthinking about products & services, talking to

friends about them.

Seeing or hearing advertisements about them.



Consumers are often studied becausecertain decisions are significant affectedby their behavior or expected actions. Forthis reason, Consumer behavior is said to

be “Applied Discipline” .



Advertising Managers, product managers,product designers and many others inprofit-oriented businesses are interestedin understanding consumers in order tobe more effective at their tasks and earnmore profit for their Organizations.



Consumers collectively influenceeconomic and social conditionswithin an entire society.



Motivation

Motive or (drive) Aneed that is

sufficiently pressingto direct the person toseek satisfaction of the need.



Perception

The process by whichpeople select,

organize and interpretinformation to from ameaningful picture of world.



Learning

Changes in anindividual’s behavior

arising fromexperience.



Beliefs

A descriptive thoughtor conviction that a

person holds aboutsomething.



Age and lifecycle



Occupation



EconomicSituation



Sub-Culture

A group of peoplewith shared valuesystem based oncommon lifeexperiences andsituation.



Social Class

Relativelypermanent and

ordered divisionsin a societywhose membersshare similarvalues, interestsand behavior.



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The consumer market buy goods for theirpersonal consumption.

Consumer vary tremendously in Age, Income,Education, Taste & other factors.

Buyers may pass quickly or slowly through

these stages and much depends on the natureof buyer, the product, and the buying situation.



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A new product , a good service oridea that is perceived by some potential

customers as new.

Adoption Process , the mental

process through which an individualpasses from first learning about aninnovation to final adoption



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Awareness : Consumer becomes aware of new product, but lacks information about it.

Interest : Consumer seeks informationabout the new product.

Evaluation : Consumer considers whethertrying new product makes sense.



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Trial : Consumer tries new product ona small scale.

Adoption: Consumer decides to make

regular use of the new product.



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Innovators (2.5%) : They try new product oradopts a new idea.

Early Adopters (13.5%): Opinion leaders intheir communities.

Early Majority (34%) :They adopt new ideabefore average person.



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Late Majority (34%) :They adopt

idea after a majority of people havetried it

Laggards (16%) :They adopt when itbecomes tradition.



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DivisibilityCan the innovation

be used on atrial basis? ComplexityIs the innovation

difficult tounderstand or use?

CommunicabilityCan results be easily

observed or describedto others?

CompatibilityDoes the innovation

fit the values andexperience of the

target market?

Relative AdvantageIs the innovation

superior to existingproducts?



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It is difficult enough for companies marketingwithin the borders of a single country. Foroperating in many countries, understanding &serving the needs of consumers can be daunting.

Although some countries may have some things incommon ,their values, attitudes and behavioursoften vary greatly. So, international marketersmust understand their differences and adjust theirproducts & marketing program accordingly.



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Shaking heads from side to side means ‘NO’in most countries but ‘YES’ in Bulgaria &SriLanka .

In South America, southern Europe & manyArab countries ,touching another person is asign of warmth & friendship. In the Orient ,

it is considered an invasion of privacy.



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In Norway or Malaysia, it is rude toleave something on your plate wheneating but in Egypt , it is rude not toleave something on your plate..



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The person who first suggests or thinks of the ideaof buying a particular product or service.

INFLUENCERINFLUENCERA person whose views or advice carry someweight in making the final buying decision.



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The person who ultimately makes a buying decisionor any part of it- whether to buy, what to buy, how tobuy or where to buy .

Buyer Buyer The person who makes an actual purchase.

User User The person who consumes or uses aproduct or service.



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Post purchaseBehavior

PurchaseDecision

InformationSearch

NeedRecognition

Evaluationof Alternatives



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The first stage of the buyer decision in whichthe consumer recognizes a problem or need.



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The stage of the buyer decision process

in which the consumer aroused tosearch for more information; theconsumer may simply have heightened

attention or may go into activeinformation search.



Personal Sources:(family, friends, neighbors etc)

Commercial Sources:(Advertising, Sales people, Dealers etc)

Public Sources:(Mass Media, Consumer Rating Organization)

Experimental Sources:(Handling, Examining, Using the product)



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The stage of the buyer decision processin which the consumer uses information to

evaluate alternative brands in the choice set.



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The stage of the buyer decision process in which theconsumer actually buys theproduct.



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The stage of the buyer decision process inwhich the consumer take further action after the purchase, based on their satisfaction or dissatisfaction.



B/c they emerge:

• in dreams

• in slips of tongue

• in neurotic – worried about smthg.

• obsessive behaviour – mind is filled with one particular

thing

• ultimately in psychoses – mental illness that effects thewhole personality

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Various ‘project techniques’ to throw theego off guard for e.g.,

1) word associations

2) sentence completion

3) picture interpretation

4) role playing

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• Interesting & odd conclusions fromresearchers about buyer’s mind regardingcertain purchases

For e.g.,• A/c to one classic study concluded:• Consumer resist ‘prunes’ b/c they’re wrinkled• and remind people of sickness and old age

- Motivation research remains a useful tool formarketers seeking a deeper understanding of consumer behaviours

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Abraham Maslow(1908-1970 ) sought to explain:

Why people are driven by particularneeds at particular times?

Why does one person spend muchtime and energy on:

Personal safety ?

On gaining the esteem of others?

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4. Esteem needs: (self-esteem, recognition,status)

• Occupation & Designation?

• Part of organization & his/her performance?

• Shaping Livings standards accordingly

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5. Self-actualization needs:

(Self-development & realization)

Self-development• Latest happenings in the art world?• Do I invest my money in starting a business?• What are the trends to make ROI’s?

Realization• How to minimize risks?!• Why not to invest in a running business?

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Perception :

“To form a meaning full picture of the world” Two people with similar motivation might act quitedifferentlyFor e.g.

* Buyer A of Stereo System considers a fast talking sales person loud orinsincere.

* Buyer B of Stereo System considers the same person intelligent & helpful.

Why perceptions are different of Buyer A & B ?

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B/c of the Flow of Information through our fivesenses:

• Sight• Sound• Smell

• Touch• Taste

These five senses receives in an

individuals way using:* Short-term memory * Long-term memory

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Three perceptual processes:

1. Selective exposure - consumer’s attention For e.g., a person exposed to more than 1500 ads a day – beprecise/specific.

2. Selective distortion – understandingconsumer’s mindsets For e.g., Nike Australia’s Annual sales from 500K to 1.3M inreducing their joggers prices.

3. Selective retention – retain info. thatsupports people’s attitude & beliefs.For e.g., Nokia makes mobile sets for all age, group peoples.

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SUBLIMINAL PERCEPTION – CAN CONSUMERSBE AFFECTED WITHOUT KNOWING IT?

Lets watch a case study!

This case study is available on YouTube as well:

http://www.youtube.com/cssubliminalads




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