CONSUMER BEHAVIOUR

DEFINITION

The decision making process and physical activity involved in acquiring evaluating, using and disposing of goods and services. Why need to study Continuous Update Human wants are diverse If they can predict the consumer behavior they can influence it. Consumers are not aware of their own consumption decisions Consumers tend to react on every marketing trend

RESEARCH PERSPECTIVE

Marketing managers were more interested in knowing the specific causes of consumer behavior. So that they can design marketing strategies in order to influence their consumption decisions- Positivism approach Basically a WHAT factor The study of consumer behavior and the meaning behind that behavior- Interpretivism approach Basically a WHY factor These are complimentary to each other as prediction is possible by positivists approach and the understanding is provided by interpretivist

FACTORS INFLUENCING CB

Cultural factors

Culture

Leisure time Health Conscious Informality

Sub Culture Social Class Reference Groups Family Roles and status

Social Factors

Personal Factors

Age & Life Cycle Occupation Economic Situation Life Style Personality & Self Concept Motivation Perception Learning Beliefs & Attitudes

Psychological factors

TYPES OF BUYING BEHAVIOR

TYPES OF BUYING BEHAVIOR

Complex Buying Behavior- involvement is high and there is high degree of perceived difference among brands Dissonance reducing buying behavior: Normally related with products that are risky; purchased infrequently or expensive. This creates dissonance among people as they feel something is better in the market . Habitual Buying Behavior: Low consumer involvement and little significant brand differences Variety Seeking Buying Behavior: Low involvement purchases but significant differences in brands. Moreover it is switching over new brand.

MOTIVATION

Means a process of stimulating people to action to accomplish the desired goals. Motives: Inner state that energizes, activates or moves and directs or channels behavior towards goals. Two Types: Emotional & Rational: Rational motive: will select an alternative after ascertaining the various objective criteria. Emotional motive: Makes selection to maximize their satisfaction level.

NEEDS & GOALS

3 types of needs: Primary; Psychological; Learnedsocialization needs. Goals: Endpoints of behaviour. Features of needs & goals

Needs are never fully satisfied New needs emerge as old needs are satisfied Success & failure influence Goals Substitute Goals

MASLOW HIERARCHY NEEDS

Physiological needs (Food, Clothing, Air) Safety & Security Needs (Protection; Order Safety) Social Needs (Affection; friendship) Esteem Needs (Prestige, status) Self Actualization needs (Self Fulfillment)

MCCLELLANDS THEORY OF NEED ACHIEVEMENT

Need For Power Need for Affiliation Need for achievement

DIFFUSION OF INNOVATIONS Adoption Process

Difussion Process

Adoption process is a series of stages by which a consumer might adopt a NEW product or service.

Awareness - This is the area where major marketeers spend billions of dollars. Simply speaking, if you are not AWARE of the product, you are never going to BUY the product. Interest and Information Search - Once you are aware, you start searching for information. Whether it be your daily soap, your car or for that matter your home, you wont buy it unless you KNOW about it. Evaluation / Trial - Evaluation is wherein you test or have a trial of the product. This is pretty difficult in services as services are generally intangible in nature. However service marketing managers do find ways of offering Trial packs to users. Comparatively, it is pretty easier in Product marketing and finds a major usage in BTL ( Below the Line) sales promotion. Adoption - The actual adoption of the product. Wherein the consumer finally decides to adopt the product.

ADOPTER CATEGORIES

DIFUSSION PROCESS

It is the process of market acceptance pf any new

innovation that comes in market

New Concept/idea -------------- Implementation of idea----------Market Acceptance..