2nd unit of Consumer Behavior

1. Mod -2
Prepared By
Dr Virupaksha Goud

2. Consumer Research
Prepared By
Dr Virupaksha Goud

3. Meaning
• Research can be defined as the search for knowledge, or as
any systematic investigation, to establish novel facts, solve
new or existing problems, prove new ideas, or develop new
theories, usually using a scientific method.
• The primary purpose for basic research is discovering,
interpreting, and the development of methods and systems for
the advancement of human knowledge on a wide variety
of scientific matters of our world and the universe.

4. Consumer Research Paradigms
• The early consumer researchers gave little thought to the impact of
mood, emotion, or situation on consumer decision.
• Later on, researchers realized that consumers were not always
consciously aware of why they made the decisions they did.
• Even when they were aware of their basic motivations, consumers
were not always willing to reveal those reasons.
• As a result marketers research designed to search deep within the
consumer’s psyche, to uncover the hidden motivations of consumers.

5. Consumer Research Paradigms
Consumer researchers today use two different types of
research methodology to study consumer behavior:
1. Quantitative research:
• Descriptive in nature
• Methods: experiments, survey & observation
2.Qualitative research
• Methods: depth interviews, focus groups,metaphor analysis,
college research, & projective techniques.

6. Consumer Research Paradigms
• Qualitative Research
• Study purpose: To provide insights
about new product ideas and
positioning techniques.
• Results: Are used in exploratory
research to refine the objectives of
quantitative studies.
• Questions Asked: Open-ended,
unstructured and further probing by
expert interviewer.
• Quantitative Research
• Study Purpose: It is aimed at
describing- its characteristics and
possible reactions of various
segments to the elements of
marketing mix
• Results: Are used for making
strategic marketing decisions.
• Questions Asked: Closed-ended
questions with predefined possible
responses which have to be coded
numerically.

7. Consumer Research Paradigms
• Qualitative Research
• Research Design: Used for
Exploratory research design.
• Data Collection Methods: Depth
interviews, Focus Groups,
Projective techniques, Metaphor
analysis etc.
• Sampling Methods: Usually
small, non-probability samples.
The results are generally not
representative of the universe.
• Data Analysis: Done by
behavioral experts.
• Quantitative Research
• Research Design: Used for
Descriptive & Causal research
design.
• Data Collection Methods:
Questionnaires, Observations,
Experimentation (used to study
cause & effect relationships).
• Sampling Methods: Large,
probability samples. The results
can be viewed as representative
of the universe.
• Data Analysis: Data collected is
coded, tabulated and is studied
by the researcher.

8. Combining Qualitative & Quantitative Research
Findings
• Marketers often use a combination of quantitative and
qualitative research to help make strategic decisions.
• For example: They use qualitative research findings to
discover new ideas and to develop promotional strategy and
quantitative research findings to predict consumer reactions
to various promotional inputs.
• Frequently, ideas stemming out from qualitative research
are tested empirically through quantitative studies.

9. The Consumer Research Process
The major steps in the consumer research process include:
1. Defining the objectives of the research
2. Collecting and evaluating secondary data
3. Designing a primary research study
4. Collecting primary data
5. Analyzing the data
6. Preparing a report on the findings.

10. 3.Designing a primary research study
Quantitative research designs
3 types
• Observational Research—Mechanical
observation, physiological observation
• Experimentation:
• Surveys: personal interview, telephone
surveys, mail surveys, online surveys

11. Cont…
Quantitative research data collection
instruments
• Questionnaires
• Attitude scales
 likert scale
Satisfaction measures
Importance scales
Semantic differential scale
Behavior intention scale
Rank order scale

12. • Qualitative research designs & data collection
methods
Depth interview
Focus groups
Projective techniques
Metaphor analysis

13. Cont…
• Sampling & data collection
• Data analysis & reporting research findings

14. The Consumer Research Process
Develop Objectives
Collect Secondary Data
Design Qualitative Research
•Method
•Screener questionnaire
•Discussion Guide
Design Quantitative Research
•Method
•Sample design
•Data collection instrument
Conduct Research
(By Expert Interviewers)
Collect Primary Data
(By Field Staff)
Analyze Data- (Subjective) Analyze Data-(Objective)
Prepare Report Prepare Report
Exploratory
Study

15. Input-Process-Output Model of Consumer Decision Making
Firm’s Marketing Efforts
1. Product
2. Promotion
3. Price
4. Channels of distribution
Socio-cultural Environment
1. Family
2. Informal source
3. Other noncommercial
sources
4. Social class
5. Culture and subculture
Need Recognition
Pre-purchase Search
Evaluation of Alternatives
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Purchase
1. Trial
2. Repeat purchase
Experience
Post-purchase Evaluation
Input
Process
Output
External Influences
Consumer Decision Making
Post Decision Behavior

16. Engel-Kollat-Blackwell Model of Consumer
Behavior
Inputs Info Processing
Decis. making
Process
Decision.
Process.
Variables
External
Factors
StimuliofMarketersandOthers
Exposure
Attention
Yielding/
Acceptance
Retention
Comprehension
MEMORY
Problem
Recognition
Search
Alt. Eval.
Choice.
Outcomes
Satisf/Diss
Beliefs
Attitudes
Intentions
Evaluative
Criteria
Lifestyle
Normative
Compliance
Cultural
Norms
Group
Imfluence
Family
Influence
Unexpected
Circum-
stances

17. Engle-Kollatt-Blackwell CB Model
Highlights:
Focus is on the Decision Making Process
The Decision Process is Impacted by:
Inputs
How Information is Processed
Specific Decision Process Variables
External Influences

18. Howard-Sheth Model of Consumer Behavior
Inputs Perceptual Constructs Learning Constructs
Social,SymbolicandDirectStimuli
Overt Search
Stimulus
Ambiguity
Attention
Confidence
Attitude
Motives
Choice Criteria
Perceptual Bias
Brand
Comprehension
Intention
Satisfaction
Outputs
Attention
Brand
Comprehension
Attitude
Attention
Purchase

19. Marketing Strategy andConsumer BehaviorHoward-Sheth CB Model
Highlights:
Deals with three types of buying categories
Four General Factors
Inputs
Perceptual Constructs
Learning Constructs
Outputs (External or Internal)

20. Howard-Sheth CB Model of Consumer
Behavior
SITUATIONS
Problem
Recognition
Information
Search
Alternative Evaluation
and Selection
Outlet Selection
and Purchases
Post-purchase
Processes
SITUATIONS
EXTERNAL INFLUENCES
Culture
Subculture
Demographics
Social Status
Reference Groups
Family
Marketing Activities
INTERNAL INFLUENCES
Perception
Learning
Memory
Motives
Personality
Emotions
Attitudes
SELF-CONCEPT
and
LIFESTYLE
Desires
Experiences and Acquisitions
Experiences and Acquisitions
Needs

21. Bamisha 21
Major Factors Influencing Buyer
Behavior by Fransesco Nicosia
a. Perception
b. Learning
c. Output

22. Irwin/McGraw-Hill

23. Internal Influences
The Internal Influences are:
1. Motivation
2. Personality
3. Perception
4. Learning
5. Attitude
6. Communications

24. External Influences
The External Influences are:
1. Social Class
2. Culture
3. Reference Groups
4. Family

25. Levels of Consumer Decision Making

26. 1. Complex Decision Making or Extensive
Problem Solving Model
• When customer have no established criteria for evaluating a product
category or specific brands in that category or have not narrowed the
number of brands they will consider to a small, manageable subset, their
decision-making efforts can be classified as Extensive Problem Solving.
• At this level, the consumer needs a great deal of information to establish
a set of criteria on which to judge specific brands and a correspondingly
large amount of information concerning each of the brands to be
considered.
• For Example: Extensive problem solving can be used while purchasing
Micro-Wave Owen, Air Conditioners etc.

27. 2. Low Involvement Decision Making or
Limited Problem Solving Model
• At this level of problem solving, consumers already have established the
basic criteria for evaluating the product category and the various brands
in the category.
• However, they have not fully established preferences concerning a select
group of brands.
• Their search for additional information is more like “fine-tuning”; they
must gather additional brand information to discriminate among the
various brands.
• For Example: Limited problem solving can be used while purchasing
Mobile phone, two-wheeler, Lap-top etc.

28. 3. Routinized Response Behavior
• At this level, consumers have experience with the product category and
a well-established set of criteria with which to evaluate the brands they
are considering.
• In some situations, they may search amount of little additional
information; in others, they simply review what they already know.
• For Example: Extensive problem solving can be used while purchasing a
detergent, biscuits, packed milk etc.

29. Four Views of Consumer Decision Making
1. Economic: This model says that consumers live in a world of
perfect competition, so they are characterized as rational decision
makers. They are aware of alternatives, they rank alternatives and
select one best alternative.
2. Passive: This model is quite opposite to the rational economic view
of consumers. Here consumers are believed to be basically submissive
(passive/obedient) to the promotional effects of marketers.
3. Cognitive: This model says that the consumers are as thinking
problem solvers. Here they are believed that they will be actively
searching product/services that fulfill their needs and enrich their
lives.
4. Emotional: This model believes that consumers make emotional
purchase decision. Here more importance is given to current moods
and feelings.

30. Situational Influences

31. Situation Influences
• Different categories of situations are the
communication situation, the purchase
situation, the usage situation, & the
disposition situation.
• There are many other ritual situations which
influences different consumption patterns of
consumers such as- parties, birthdays,
graduation parties, festivals, etc.

32. The Nature of Situational Influence
• The purchase decision & consumption process always occur in the
context of a specific situation.
• Before examining the decision process, we must first develop an
understanding of situations.
• Situational influence is defined as all those factors particular to a time
& place that do not follow from a knowledge of personal & stimulus
(choice alternative) attributes & that have an effect on current
behavior.
• The consumption process occurs within four broad categories or types
of situations:
1. The communication situation
2. The purchase situation
3. The usage situation
4. The disposition situation

33. The Nature of Situational Influence
1. The communication situation: The situation in which consumers receive
information has an impact on their behavior. Ex: Difficulty of marketer
communicating in situations like-
2. The purchase situation: Situations can also affect product selection in a
purchase situation. Ex: Shortage of time can affect store choice, or brand
choice, or buying that product totally. Marketers should understand how
purchase situations influence consumers in order to develop marketing
strategies that enhance the purchase of their products.

34. The Nature of Situational Influence
3. The usage situation: What clothes would you prefer to wear in each of
the following usage situations.
• On a festival
• On a picnic with your friends
• On the college graduation day
Marketers need to understand the usage situations for which their
products are, or may become, appropriate. Knowing this will help the
position their products properly. Ex: Cadbury.
4. The disposition situation: Marketers should encourage socially
responsible disposition decisions. Disposition situation can create
situation social problems as well as opportunities for marketers. Ex:
What happens if there is no Dust Bin beside a bakery? Many customers
might avoid that bakery. Customers some times think about the
disposal problems while purchasing.

35. Situational Characteristics & Consumer
Behavior
There are 5 key characteristics of situations that help determine the situation’s
impact or behavior-
1. Physical Features: All physical aspects of the store, including lighting, layout,
presentation of merchandise, floor coverings, colors, sounds, odors, & dress &
behavior of sales personnel, combine these feelings, which in turn influence
purchase decisions.
2. Social surroundings: Social surroundings are the other individuals present
during the consumption process. Ex: Eating in a canteen.
3. Temporal perspectives: Situational characteristics that deal with the effect of
TIME on CB. Ex: When consumers purchase also affect CB.
4. Task objectives: Task definition is the reason the consumption activity is
occurring. Ex: For self-use or gifting.
5. Antecedent states: Situation of individuals which are not lasting conditions-
such as mood or momentary conditions. Moods- happy, cheerful, sad,
depressed. Momentary conditions- being tired, ill, extra money, being broke
(penny-less).