shr037-6 consumer behaviour

8/3/2019 SHR037-6 Consumer Behaviour

http://slidepdf.com/reader/full/shr037-6-consumer-behaviour 1/25

Analyzing ConsumerBehaviour



©2000 Prentice Hall © Pearson Education 2009

The Difference Between…

Consumer BuyerBehaviour

The buying behaviour

of final consumers –

individuals and

households who buy

goods and services

for personal

consumption

Business BuyerBehaviour

The buyer behaviour

of organisations that

buy goods and

services for use in the

production of other

products and services

or for the purpose of

reselling or renting

them to others at a rofit



©2000 Prentice Hall

Building Success Offers good bikes,

upgraded showrooms,

and revised salestactics.

Consumer emotions,motivations, and lifestyleresearch has beentranslated into effective

advertising. Harley riders are fiercely

loyal to the brand, older,better educated, affluent.

Harley-Davidson –

Devoted Consumers

Case Study

Measuring Success Currently has 26% of all U.S.

bike sales and 50% of

heavyweight segment. Demand outstripped supply

for several years; waits of upto 2 years for popular models.

Annual revenues/earningshave grown at 14% to 23%over past 10 years.2007: 21st straight year ofrecord sales and income.




Understanding Customers:The Key Questions

Who isimportant?

How dothey buy?

When dothey buy?

What aretheir choice

Criteria?

Where dothey buy?

Customers


http://slidepdf.com/reader/full/shr037-6-consumer-behaviour 7/25©2000 Prentice Hall

Simple Response Model

Stimulus Organism Response


http://slidepdf.com/reader/full/shr037-6-consumer-behaviour 8/25©2000 Prentice Hall © Pearson Education 2009

Factors Influencing ConsumerBehaviour - Process

StimuliProcess

[Black Box]Response

Marketingand other

Stimuli

Buyer [BlackBox]

Response

Psychology

Marketing

Marketing

e.g. Product

Promotion

Other

e.g. Economic

Cultural

Characteristicsand decision

makingprocess

Product choice

Brand choice

Dealer choice

Purchasetiming

Amount


http://slidepdf.com/reader/full/shr037-6-consumer-behaviour 9/25©2000 Prentice Hall © Pearson Education 2009

Factors Influencing ConsumerBehaviour - Context

Cultural

• Culture

• Sub-culture

• Social class

Social

• Referencegroups

• Family

• Roles andstatus

Personal

• Age andlifestyle

• Occupation

• Economicsituation

• Personalityand self-concept

Psychological

• Motivation

• Perception

• Learning

• Beliefs andattitudes

Buyer



Psychological Factors

Perception Learning

Beliefs &

Attitudes

Motivation



Maslow’s Hierarchy of Needs

Psychological needs

(food, water, shelter) 1

Safety needs (security, protection)

2

Social needs(sense of belonging, love) 3

Esteem needs(self-esteem, recognition)

4

Self-actualization

(self-developmentand realization)

5



Social Factors

ReferenceGroups

Roles &Statuses

Family



Influences on ConsumerBehavior

Personal Influences

Age and Family LifeCycle Stage

Lifestyle

Occupation &Economic Circumstances

Personality &Self-Concept



Four Types of BuyingBehavior

ComplexBuying

Behavior

Dissonance-

Reducing BuyingBehavior

Variety-SeekingBehavior

Habitual

BuyingBehavior

Significantdifferences

betweenbrands

Few

differencesbetweenbrands

HighInvolvement

LowInvolvement



Classic Model of Consumer BuyingBehaviour

Problemrecognition

Informationsearch

Evaluation ofalternatives

Purchasedecision

Postpurchasebehavior



© Pearson Education 2009

Problem Recognition

Awareness of Problem/Need Raised by:

Routine depletion

Change in circumstances Problem

Perceived as the difference between

current and desired situation

The Role of Advertising

Sometimes, potential customersbecome aware of their problem




Information Search

Involves the Identification of AlternativeSolutions by Searching

Internal search Relevant information from memory

Role of advertising and branding

External search Friends, family, work colleagues

Commercial sources - adverts,brochures

salespeople-




Evaluation of Alternatives

Firstly

Reduction of solutions to a manageable

shortlist Evoked set

A shortlist of brands for careful

evaluation Secondly: Ranking of the Evoked Set

Cost

Availability




Choice Criteria

Reliability

Durability

Performance

Format

Technical

Price

Value formoney

Runningcosts

Residualvalue

Economic

Status

Socialbelonging

Convention

Fashion

Social

Self-image

Riskreduction

Ethics

Emotions

Personal




Total

Set

Decision Making Sets

Aware-

ness

Set

Consid-

erationSet

ChoiceSet Decision




Steps Between Evaluation ofAlternatives and a Purchase Decision

Evaluationof

alternatives

Purchasedecision

Unanticipatedsituational

factors

Attitudeof others

Purchaseintention




Purchase

Selection of

Quantity

Quality

Exact product characteristics

Brand

Retailer [e-Tailer] and method ofpayment

The Transaction




Post-Purchase Evaluation

Satisfaction

Transaction

Performance

Durability

Dis-satisfactionCognitive dissonance




What is Dissonance?

‘The Opposite of Satisfaction’

Often Occurs With Products that are:Expensive - car

Difficult - many alternatives each with

unique benefits - holidays

Irrevocable - house-buying

Individual Tendency to Experience

Anxiety



©2000 i ll© Pearson Education 2009

The Buyer Decision Processfor New Products

Awareness

The consumer becomes aware of the new product

Interest

The consumer seeks information about the new product Evaluation

The consumer decides whether trying the new productmakes sense

Trial

The consumer tries the new product on a small scale toimprove his estimate of its value

Adoption

The consumer decides to make full and regular use of thenew product

shr037-6 consumer behaviour

Documents