ANALYZING CONSUMER MARKETS

Farhan S. SheraziLECTURE-1

Consumer Behavior– you are what you buy…

•Think of a recent important purchase– briefly draw a flowchart of the steps you recall moving through from the awareness of need to post purchase

•What influenced you at each step?

A SIMPLE QUESTION

What is Consumer Behavior?

• “The actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions.”

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social, Individual and Psychological

Factors affect

all steps

Cultural, Social, Individual and Psychological

Factors affect

all steps

1-7

The consumption process

Complete model of consumer behavior

Stimuli (marketer dominated, other)

External search

Memory

Internal search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need recognition

Alternative evaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individual differences• resources• motivation & involvement• knowledge• attitudes• personality, values, lifestyle

Influences• culture• social class• family• situation

Start

Consumer’s decision regarding need for a productInformation Search regarding alternatives

Acquisition of product being stressful or convenient.

Product being of pleasure or distress to consumer

How the consumers form or change attitude regarding a product. How consumers infer about product.

Situational factors like time and place of display.

What determines whether a consumer will be satisfied with a product an d what makes consumer refer the product.

CONSUMER’S PERSPECTIVE MARKETER’S PERSPECTIVE

Pre-PurchaseIssues

PurchaseIssues

Post-PurchaseIssues

Stages in consumption process

SEGMENTING CONSUMERSSEGMENTING DIMENSIONS

AGE

GENDER

FAMILY STRUCTURE

SOCIAL CLASS & INCOME

RACE & ETHNICITY

GEOGRAPHY

LIFESTYLES

CONSUMPTION – AN INTERESTING FACT

PEOPLE OFTEN BUY PRODUCTS NOT FOR WHAT THEY DO BUT FOR WHAT

THEY MEAN

SELF CONCEPT ATTACHMENT

NOSTALGIC ATTACHMENT

INTERDEPENDENCE

LOVE

NEEDS & WANTS-DO MARKETERS MANIPULATE

Who Controls the Market? Consumer or Marketers

Do Marketers Create Artificial Needs?

Are Advertising & Marketing Necessary?

Do Marketers promise miracles?

Addictive Consumption

THE DARK SIDE

Compulsive Consumption

Consumed Consumers

Addictive ConsumptionReliance on a product becomes extreme

Compulsive ConsumptionBorn to shop

Consumed ConsumersProstitutes, Organ & Hair Donors,Babies for Sale

THE ISSUE OF TWO PERSPECTIVES ON CONSUMER RESEARCH

PositivismHuman Reasoning being supreme.Stress on quantitative analysis.World as rational & ordered place with clearpast, present and future.

InterpretivismCritical about dominance of Science & Technology.World is complex, social and cultural.World as being composed of relative parameters

ANALYTICAL EXERCISE-1DEVELOP GROUPS…MAXIMUM MEMBER : 05

DEVELOP A MESSAGE FOR THE PRODUCT SHOWN BELOW KEEPING IN VIEW OF CONSUMER DECISION MAKING PROCESS

NOW THINK OF THE FOLLOWING