Detailed class on consumer behaviour

1. CONSUMER
BEHAVIOUR
Aravind TS

2. Grasping consumer behaviour
,Basic to Value delivery
 Marketing is all about value delivery
 Marketers role is to deliver relevant value to
the consumer .

3. The Value a buyer seeks in a
Car
 Situation 1
(Economic value, the main concern)
I want to graduate from my two wheeler to
four wheeler.Price and EMI must be below
Rs.5000/-

4.  Situation-2
 (Functional Value, The main concern)
I want good pickup,little more space and modern
technology.

5.  Situation 3
 (Social/Status value ,the main concern)
 My zen is 3years old .I must upgrade now .All
my colleagues are switching on to better cars.

6. Consumers
 Individuals
 Households
 Business

7. Consumer Behaviour
Study of how individual make decision to
spend their available resources(money, time &
effort) on consumption related items.

8. factors Affecting
Consumer Behavior
Culture
Social
Personal
Psychological
Buyer

9. Factors Influencing
Consumer Behavior
Social
Reference
groups
Family
Roles
and
status
Personal
Age and
life-cycle
Occupation
Economic
situation
Lifestyle
Personality
and
self-concept
Psycho-logical
Motivation
Perception
Learning
Beliefs and
attitudes
Buyer
Cultural
Culture
Sub-culture
Social
class

11. Consumer does not
go by set rules in his
buying decision

12. Different Models of Buying
behviour
 Economic model
 Learning model
 Psychoanalytical model
 Sociological model
 Systems model
1.Nicosia model
2.Howard and sheth model

13. Economic model
 The buyer is a rational man and his buying are
governed by the concepts of utility
 Intent to maximise the utility/benefit/need
satisfaction.

14. Learning Model
 Buyer behaviour can be influenced by
manipulating the drives,Stimuli and responses
of the buyer .
 The model rests on the human ability of
learning , forgetting , and discriminating

15. Sociological Model
 The individual buying behavior by society –
intimate groups as well as social class
 The buying decisions are not totally governed
b Utility, but he has a desire to emulate ,follow,
and fit in with his environment.

16. Psychological model
 A consumer has complex set of deep-seated
motives that drive him towards certain
behviour.
 He has a private world with all his hidden
fears, suppressed desires and totally
subjective longings.

17. The System Model
 Human being is analysed as a system,with
stimuli as the input to the system and behviour
as the output of the system.
1.Nicosia Model
2.Howard-Sheth Model

18. Nicosia Model-1966
By: Francesco Nicosia
 The model tries to establish the link between a
firm and its consumer.
 How the activities of the firm influence the
consumer and result in his decision to buy

19. Howard – Sheth Model-1969
John Howard and Jagadish sheth
 Input – Stimuli
 Output - Beginning with attention to the given
stimuli and ending with purchase

20. Factors influencing Buying
Behaviour

21.  Personal Factors
a) Personal demographics
b) Personal psychographics
 Socio Cultural Factors
a) Culture
b) Social Factors/Influence of reference group

22. 1.Personal Factors
A. Demographics of the customer
 Age
 Stage in family cycle
 Education
 Occupation
 Economic position

23. B. Psychographics of the customer
 Lifestyle
 Attitudes
 Self-concept
 Concern about status
 Value system
 Beliefs

24. 2.Socio-cultural group
A. Culture
 Religion
 Caste
 Tradition
 Language

25. B. Social Factors/Reference group
1.Intimate group
 Family, frinds ,peer groups, close collegagues &
close kint organizations
2. Secondary group
 Occupation ,profession, place of residence
3.Opinion Leaders
 The others seeks guidance from these people
4.Larger social class
 Eduction,wealth,value-orientation,
occupation/profession and designation

26. 3.Information reaching from
customer from various sources.
 Advertising
 Promotional campagains
 Samples/ trials
 Display in shops
 Salesmen suggestions

27.  How does a consumer decision come up ?
Stimulus
A large variety of stimulus is involved

29. Buying Motives
 All the impulses, desires and consideration
,which induce buyer to purchase a given
product.
1. Product Motives
2. Patronage Motives

30.  Product motives :- The impulses, desires and
considerations that makes people buy a given
product
 Patronage Motive :- The impulse desire and
consideration that makes people buy from
particular firm/shop .

31.  Product Motives
 Acc.to the nature of satisfaction sought by the
buyer ,puts them in following two category
1. Emotional product motives
2. Rational product motives

32.  Another classification that takes into account
the utility and prestige dimensions of a product
1. Operational product motives
2. Socio psychological Product motives

33.  Emotional Product motives
 Those impulses that appeal to the buyers
pride or ego,his urge to imitate others,or his
desire to be distinctive.(Buying pattern :
without evaluating products plus or minus)

34. Rational product motives
 Careful reasoning or logical analysis need not
be found behind such purchases

35. Operational product motives
 A buyer can gain satisfaction from the function
or physical utility of a product
Socio-Psychological product
 Social psychological factor attached to the
product

36. Patronage motive
 Emotional patronage motives: Those that
persuade buyer to buy from specific shops,
without much logical reason behind it.
 Rational motives: If a buyer knows that shop
will offer a wide selection , latest model,good
after service

37. Buying Habits/Shoping
behaviour
1. Convenience goods
2. Shopping goods
3. Specialty goods

38.  Convenience goods
Products for daily consumption ,like tooth
paste,soap,cigarettes,etc
The consumer is not prepared to make a special
shopping trip for buying such product .Switch
to substitute product or brand that is available
in the immediate vicinity.

39.  Shopping goods
Clothes, shoes, electrical appliance etc..not
purchased frequently.
1. Planning
2. Ready to make more than one shopping trip
3. Considerable expenditure
4. Compare price, quality, models etc

40. Speciality goods
 Special goods are high priced goods include
products like cars, luxury watches, high priced
dresses, ornaments,etc
1. Substantial investment
2. Periodicity of purchase is less
3. No instant decision
4. Cost angle, utility angle, prestige angle
5. Entire family takes part in the decision
making.

41. Consumer Decision Making

43. Problem Recognition (Need Recognition)
 He recognises a problem and develops a
perception of the problem
 Seeks information from the environment for
solving his problem

44.  Awareness (Information search)
 Information search will helps him to aware the
existence of the product that would solve his
problem .

45.  Comprehension ( Evaluation of
Alternatives)
Awareness and comprehension stages
represents the information processing stages.
These two stages constitute the cognitive field of
purchase process.(acquisition of knowledge)

46.  Adoption (purchase)
This is an conative and action field

47. Post purchase Behaviour
 Reaction and evaluation
 Satisfaction/Dissonance
 Seek additional information

48. Consumer behaviour in adopting
new product

50. Innovators (2.5%)
 Innovators are the first consumers to buy a
new product.
 They are venturesome, willing to accept risk,
socially aggressive, communicative, and
cosmopolitan.
 This group represents 2.5 per cent of the
target market.

51. Early adopters (13.5)
 Early adopters are the next consumers to buy
a new product.
 They enjoy the leadership, prestige, and
respect that early purchases bring.
 These consumers tend to be opinion leaders.
 They adopt new ideas but use discretion.
 This group represents 13.5 per cent of the
market.

52. The early majority(34%)
 The early majority is the first part of the mass
market to buy a product.
 They have status in their social class and are
outgoing, communicative, and attentive to
information cues.
 This group represents 34 per cent of the target
market.

53. The late majority(34%)
 The late majority is the second part of the
mass market to buy a product.
 They are less cosmopolitan and responsive to
change.
 The late majority includes people with lower
economic and social status, those past middle
age, and skeptics.
 This group represents 34 per cent of the
market.

54. Laggards (16%)
 . Laggards are last to purchase.
 They are price conscious, suspicious of
change, low in income and status, tradition
bound, and conservative.
 Do not adopt a product until it reaches
maturity. Some firms ignore them because it
can be difficult to market a product to this
small group.
 However, a market segmenter may do well by
concentrating on products for laggards. This
group represents 16 per cent of the market.