principles of marketing- consumer markets and behavior
TRANSCRIPT
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Principles of MarketingPrinciples of Marketing
Consumer Markets and
Behavior
Prof. Rushen Chahal
Prof. Rushen Chahal 1
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Ch apter C ontentsCh apter C ontents
1. Understand t h e terms of consumer be h avior
2. Describe t h e c h aracteristics t h at affectsconsumer be h avior
3. Describe t h e types of buying situations
4. Define and explain t h e steps in decision makingprocess
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1. Terms of C onsumer Be h avior 1. Terms of C onsumer Be h avior
C onsumer market refers to customers consumptionin the market
C onsumer buyer be h avior refers to the buyingbehavior of consumersindividuals and groups that buy
goods and services for use
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1. Terms of C onsumer Be h avior 1. Terms of C onsumer Be h avior
M arketing stimuli is important for purchase such as:
4Ps:- allow companies to adjust price, place etc
PEST factors:- mostly consumer cultural factors
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2. Ch aracteristics Affects C onsumer 2. Ch aracteristics Affects C onsumer Be h avior Be h avior
a. C ultural Factors :- involve attitudes, beliefs, values, artifactswithin a society that makes meaning.They include:
i. Culture and subculture includes sports, beauty, religion, technology,leisure, language, law, education, social values etc.
ii. Social class Social class refers to division of a society based on
income, education, status
e.g. upper middle; middle-middle; lower-middle; skilled; working; low
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2. Characteristics Affects Consumer
Behavior
Culture and subculture includes sports, beauty,religion, technology, leisure, language, law,
education, social values etc.
Social class refers to division of a society
e.g. upper middle; middle-middle; lower-middle;skilled; working; low
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2. Characteristics Affects Consumer
Behaviorb. Social Factors :- involve reference groups andfamilies that interact and play a role in buying
i) Reference groups :- Primary (Informal) /Secondary (Formal) Finding opinion leaders
M embership groups have a direct influence
Aspirational groups which an individualwishes to belong to
Disassociative groups are not beneficial
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ii) F amily :- Procreation and involvement inbuying.
- Using F amily Life Cycle ; from young, middle-age, older
2. Characteristics Affects Consumer
Behavior
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2. Ch aracteristics Affects C onsumer Be h avior 2. Ch aracteristics Affects C onsumer Be h avior
iii) Roles:- includes peoples positions and status in life
Initiator: Person who sees and thinks of the idea of buying the productInfluencer: Person whose opinion influences the buying
Decider: Person who makes the buying decision; what, how where,
when
Buyer: Person who pays and buys the product
User: Person who consumes or uses a product or service
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2. Ch aracteristics Affects C onsumer 2. Ch aracteristics Affects C onsumer Be h avior Be h avior
c. Psyc h ological Factors :- involve peoples common values,interest and other attributes like:
i. Personality
ii. Learning
iii. M otivation
iv. Perception
v. Attitudes
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Prof. Rushen Chahal
2. Characteristics Affects Consumer
Behaviori) P ersonality :- involve unique personalcharacteristics that lead to ones responses to an
object
- Self-concept and image. Purpose for buying theproduct/service. WoW factor! (making statements)
- L ifestyle values: Activities, Interests, Opinions(AIO) e.g. kart-racing for outgoing people
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2. Characteristics Affects Consumer
Behaviorii) Learning :- to know and remember something
to use stimulus many times to make consumersremember
to condition people to repeat buying actions
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Prof. Rushen Chahal
iii) M otivation:- Abraham M aslowsHierarchy of Needs
People are driven by certainneeds (motives) at certaintimes.
Physiological (basic) Safety Social Esteem Self-actualization
2. Characteristics Affects Consumer
Behavior
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Prof. Rushen Chahal
2. Characteristics Affects Consumer
Behavior
What needswould this
product fit?
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Prof. Rushen Chahal
2. Characteristics Affects Consumer
Behavioriv) P erception :- analyzes and interpretsaccording to experience, knowledge, moods etc.
Selective attention: decides what to see/hear
Selective perception: decides what to believe
and interpret
Selective retention: decides what to keep and
throw; remember good points only
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2. Characteristics Affects Consumer
Behavior
advertising
clutters
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2. Ch aracteristics Affects C onsumer Be h avior 2. Ch aracteristics Affects C onsumer Be h avior
v) Att it udes:- describe a persons feelings andevaluation about an object or idea
Cognitive: beliefs resulting in an opinion
Affective: positive or negative emotions
Conative: behavior or actions linked with cognitive
and affective
cognitive
affective
conative
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3. Types of Buying Situation3. Types of Buying Situation
Routine problem solving : A buying situation wherebrands and products are purchased habitually, e.g. daily necessit ies
L imited problem solving : A buying situation wherebuying occurs less frequently. Products will be moreexpensive. Damage can be solved.
Extended problem solving : A buying situation wherebuying occurs very infrequently and extremelyexpensive. e.g. premium goods
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4. T h e Decision Making process4. T h e Decision Making process
F ive stages in the buying decision process
i. Need recognition
ii. Information searc hiii. Evaluation of alternativesiv. Purc h ase decisionv. Post-purc h ase be h avior
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4. T h e Decision Making process4. T h e Decision Making process
i) Need recognit ion:- occurs when the buyer
recognizes a problem/need made responsible by
internal and external stimulus (factors)
e.g. a problem with moving h ouses
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4. T h e Decision Making process4. T h e Decision Making process
ii) Informat ion searc h :- is the amount of information gathered.Depending on motivation, ease of obtaining the information, the
value of the information, information alternatives.
-T h ink of informat ion sources from personal; commercial; and public
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4. T h e Decision Making process4. T h e Decision Making process
iii) Evaluat ion of al t erna t ives:- how the consumer selects
information and arrive at different choices
e.g. use grades and weig ht ings t o measure c h oices
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4. T h e Decision Making process4. T h e Decision Making process
iv) T h e purc h ase decision:- the act of buying the mostpreferred product/brand. The purchase decision can be
affected by:
- Unexpected factors (credit, installment) and attitudes of
others
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4. T h e Decision Making process4. T h e Decision Making process
v) Post -purc h ase:- is the customer satisfaction or discomfort(dissonance) about the purchase
- Satisfaction happens when consumers perceived
expectations meet performance. Otherwise dissonance
happens.
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Prof. Rushen Chahal
4 . The Decision M aking process
(Summary)