consumer behaviour

1. CONSUMER BEHAVIOUR

2. ANALYZING MARKETS
 Analyzing Consumer
Markets
 Analyzing Business
Markets
 B 2 C
 B 2 B

3. Influences on Consumer Behavior
1. CULTURAL FACTORS
- Culture
- Subculture
- Social class
2. SOCIAL FACTORS
- Reference Groups
- Family
- Social Roles
- Status
3. PERSONAL FACTORS
- Age
- Stage in Life Cycle
- Occupation
- Economic Circumstances
- Life style
- personality

4. Culture
 Culture is the fundamental determinant of a persons
wants and behavior.
 Culture includes :
- Values
- Perceptions
- Preferences
- Behaviors
- And it is influenced by ones family and other key
institutions.

5. Subculture
 Subculture provides more specific identification and
social belonging to a person.
 Subcultures include :
- Nationality
- Religion
- Race
- Cast
- Ethnic group

6. Social Class
 Social Class is a homogenous and enduring
division within a society, which is
hierarchically ordered and whose members
share similar values, interests and behavior.
 Example :
 Upper class
 Middle class
 Lower class etc.

7. Reference Groups
 Primary Groups ( friends, informal )
 Secondary Groups ( professional, formal )
 Aspirational Groups
 Dissociative Groups
 OPINION LEADERS

8. Role and Status
 A persons position in each group is defined
in terms of role and status.
 A role consists of the activities a person is
expected to perform.
 Each role carries a status.
 People choose products that reflect and
communicate their role and actual or desired
status in society.

9. Age and Family Life Cycle
 People buy different goods and services over
a life time.
 Taste in food, clothes, furniture and
recreation is generally age related.
 Household consumption is shaped by the
family life cycle and the number, age and
gender of the people.

10. Lifestyle
 People from the same subculture, social
class and occupation may lead totally
different life styles.
 A lifestyle is a persons pattern of living in the
world as expressed in activities, interests and
opinions.

11. Personality and self-concept
 HUMAN
PERSONALITY
 Self-confidence
 Dominance
 Autonomy
 Deference
 Sociability
 Defensiveness
 adaptability
 BRAND
PERSONALITY
 Sincerity
 Excitement
 Competence
 Sophistication
 Ruggedness

12. PSYCHOLOGICAL PROCESSES
AFFECTING CONSUMER BEHAVIOR
1. MOTIVATION
2. PERCEPTION
3. LEARNING
4. MEMORY

13. Motivation
1. Freud’s theory : psychological forces
shaping people’s behavior are largely
subconscious.
2. Maslow’s theory : Need circles
( Physiological, Safety, Social, Esteem and
Self-actualization).
3. Herzberg’s theory : Absence of Dis
-satisfiers is not enough. Satisfiers must be
present to motivate a purchase.

14. Perception
 Perception is the process by which an
individual selects, organizes and interprets
information to create a meaningful picture of
the world.
 Perceptions can very widely among
individuals exposed to the same reality.
 In Marketing, perceptions are more important
than reality.

15. Selective Attention
 People are more likely to notice stimuli that
relate to a current need.
 People are more likely to notice stimuli that
they anticipate.
 People are more likely to notice stimuli
whose deviation is large in relation to the
normal size of the stimuli.

16. Selective Distortion
 Selective Distortion is the tendency to
interpret information in a way that will fit our
preconceptions.
 Consumers often distort information to be
consistent with prior brand and product
beliefs.

17. Selective Retention
 People fail to register much information to
which they are exposed in memory, but tend
to retain information that supports their
attitudes and beliefs.
 We are likely to remember the good points
about the product we like and forget good
points about the product we do not like.

18. Learning
 When people act, they learn. It involves
changes in individual’s behavior arising from
experience.
 Discrimination is learning to recognize the
differences in sets of similar stimuli to adjust
responses accordingly.

19. Memory
 Short term memory ( STM )
 Long term memory ( LTM )
 Memory Encoding refers to how and where
information gets into memory.
 Memory Retrieval refers to how information
gets out of memory.
 Associative Network Memory Model explains
this complex process.

20. BUYING DECISION PROCESS
THE 5 POINT MODEL
1. PROBLEM RECOGNITION
2. INFORMATION SEARCH
3. EVALUATION OF ALTERNATIVES
4. PURCHASE DECISIONS
5. POSTPURCHASE BEHAVIOR

21. MENTAL ACCOUNTING
 It refers to the manner by which consumers code, categorize
and evaluate financial outcomes of their choices.
1. Consumers tend to segregate gains (List of separate benefits
appears bigger than the whole product )
2. Consumers tend to integrate losses ( Small value furniture
can be clubbed with the large value of the house )
3. Integrate smaller losses with larger gains ( monthly TDS is
better accepted than large Tax Cuts at the end of the year)
4. Segregate small gains from large losses ( People are happy
to get small discounts on very expensive cars )

22. ORGANIZATIONAL BUYING
SITUATIONS
 NEW TASK.
 STRAIGHT REBUY.
 MODIFIED REBUY.

23. THE BUYING CENTRE
1. Initiators
2. Users
3. Influencers
4. Deciders
5. Approvers
6. Buyers
7. Gatekeers

24. Stages in Buying Process
1. Problem or Need Recognition.
2. Need Description and Product Specification
3. Supplier Search
4. E-Procurement
5. Proposal solicitation
6. Supplier Selection
7. Order – Routine Specification
8. Performance Review