CONSUMER BEHAVIOR,

Unit 2

Consumer Research
The role of consumer research

Types of consumer research methodology

- Quantitative Research (Positivism)

Result can be generalized - Qualitative Research (Interpretivism)

Result cannot be generalized

The Consumer Research Process

The major steps in the consumer research process include: 1. Defining the research objective 2. Collecting and evaluating Secondary Data

3. Designing a Primary research process

4. Collecting Primary data 5. Analyzing the data 6. Preparing a Report Consumer Research influences Consumer Decision Making

CONSUMER MOTIVATION
Motivation: - It is the driving force within individuals that impels them to action.
Model of the Motivation Process
Learning

Unfulfilled Needs, Wants & Demands

Tension

Drive

Behavior

Goal or Need Fulfillment

Cognitive Processes

Tension Reduction

NEEDS
Types of Needs: Innate needs or Primary needs or Biogenic needs Acquired needs or Secondary needs or Psychogenic needs Prepotent needs

Positive Vs Negative Motivation Rational Vs Emotional Motives

Note: - Needs are never fully satisfied New needs emerge as old needs are satisfied.

AROUSAL OF MOTIVES
a. Physiological Arousal

b. Emotional Arousal
c. Cognitive Arousal d. Environmental Arousal

MASLOWS NEED HIERARCHY

WHY CONSUMER NEEDS & MOTIVATION?

It helps in Market Segmentation

It helps in Promotions and Positioning

 Measurement of Motives
Quantitative (Consumer Research)

Motivational Research
Qualitative (Consumer Research)

First Phase of Research Project for Internal Assessment

PERSONALITY & CONSUMER BEHAVIOR

PERSONALITY: It can be defined as those inner psychological characteristics that both determine and reflect how a person responds to his or her environment. Factors affecting / building personality: Heredity Early childhood experiences

Social & Environmental influences

Personality develops over a period of time

Importance of Personality: Personalities are likely to influence the individuals product choices and
also attitude towards various product categories. It helps in selling.

It helps in CRM.
It helps in Consumer/Market Research. It helps in promotions (Marketing Communication & Advertisements). It helps in aspiring the customers to reach their potential. It helps in deciding about the Target Customers

The Nature of Personality: Personality reflects individual differences Personality is consistent and enduring Personality can change

- According to a research, Mens personality has generally remained relatively constant over the past 50 years, womens personality has seemed to become increasingly more masculine.

Theories of Personality
Freudian theory Non Freudian theory Trait theory FREUDIAN THEORY: According to Sigmund Freuds psychoanalytic theory of personality, Unconscious needs or drives, specially Biogenic or materialistic needs are at the heart of the human motivation and personality. Types of Interacting Systems: ID

SUPEREEGO
EGO

Gratification

1. Id

3. Ego

2. Superego

A Representation of the Interrelationships among the three personalities.

Non Freudian Personality theory: Non Freudians believed that Social Relationships are fundamental to

the formation and development of personality.

Three personality groups: Complaint individuals

Aggressive individuals
Detached individuals

Trait theory: A Trait is defined as any distinguishing, relatively enduring way in which one individual differs from another.

Understanding Consumer Diversity

Various personality Traits: a) Consumer Innovativeness b) Dogmatism c) Social Character d) Need for Uniqueness e) Optimum Stimulation Level

f) Sensation Seeking
g) Variety Novelty Seeking

Cognitive Personality Factors a) Need for Cognition High Vs Low b) Visualizers Vs Verbalizers

Trait Range: Consumer Materialism to Fixated Consumption Behavior

to Consumer Compulsive Behavior

Importance of Personality.
Consumer Ethnocentrism Brand Personality Brand Personification Product Personality & Gender Product Personality and Geography

Personality and Color

Self & Self Image Single or Multiple Selves The Makeup of the Self Image The Extended Self Altering the Self

Virtual Personality or Self

Consumer Perception Perception: - Perception is defined as the process by

which an individual selects, organizes, and interprets

stimuli into a meaningful and coherent picture of the world.

Sensation: - Sensation is the immediate and direct

response of the sensory organs to stimuli. Sensory receptors Absolute Threshold Sensory Adaptation

 Differential Threshold Webers Law Subliminal Perception

Supraliminal Perception
Consumer Imagery Consumer Behavior

CMSMA Model
Needs, Wants & Demands Motives

Consumers Action

Motivation Perception

Stimuli/Sensation

Consumer Learning
The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior. The term learning encompasses the total range of learning, from simple, almost reflexive responses to the learning of abstract concepts and complex problem solving. Factors for Learning: Motivation Cues Response Reinforcement

Behavioral Learning Theories: Stimulus Response Theories Classical Conditioning (Ivan Pavlov) - Conditioned Learning

- Unconditioned Learning
Instrumental Conditioning

- Stimulus and Response (Most satisfactory response)

Modeling or Observational or Vicarious Learning

Cognitive Learning Theory: Learning based on mental activity is called Cognitive Learning. Information Processing
Sensory Input Long term store

Sensory Store Rehearsal

Working memory

Encoding

Retrieval

Forgotten;

Forgotten;

Forgotten;

Lost

Lost

Unavailable

 Involvement Theory Involvement theory and Media Strategy Involvement Theory and Consumer Relevance Central and Peripheral Routes to Persuasion Measures of Consumer Learning Recognition and Recall Measures Cognitive Responses to Advertising Repeat Patronage Brand Loyalty High Loyalty Spurious Loyalty Low Latent Loyalty No Loyalty

High
Relative Attitude Low

Consumer Attitude
An attitude is a learned predisposition to behave in a consistently favorable or unfavorable way with respect to a given object. Attitudes are Learned Predisposition Attitudes have Consistency Tricomponent Attitude Model

Multiattribute Attitude Models

Attitude Toward Object Model Attitude Toward Behavior Model Theory of - Reasoned Action Model

The Basic Motivational Function

The Utilitarian Function The Ego Defensive Function The Value Expressive Function The Knowledge Function

Attitude Continued.

Conflicting Attitude Changing Beliefs About Competitors Brands

Cognitive Dissonance Theory

The Social consumer

If you are not among hermits, you will interact and your interactions will

influence your consumption behavior.

GROUP : - A group may be defined as two or more people who interact to accomplish either individual or mutual goals. Membership group Vs Symbolic group Reference Group: - A reference group is any person or group that serves as a point of comparison (or reference) for an individual in forming either

general or specific values, attitudes, or a specific guide for behavior.

Reference groups are groups that serve as frames of reference for individuals in their purchase or consumption behavior.

Types of Reference Groups

Normative Reference Group General Values Comparative Reference Group Benchmark for Specific Values Direct Reference Group Indirect Reference Group Factors Affecting Reference Group Influence Information and Experience

Credibility, Attractiveness, and Power

Conspicuousness of the product Consumer Conformity

Selected Consumer Related Reference Groups Friendship Groups

Shopping Groups
Work Groups Virtual Groups or Communities Brand Communities Consumer Action Groups

Celebrities
The Expert The Common Man

The Family: - It is defined as two or more persons related by blood,

marriage, or adoption who reside together.

Types of Family: Married Couple Nuclear Family Extended Family Single Parent Family Joint Family

Socialization of Family Members

Consumer Socialization of Children Adult Consumer Socialization

Intergenerational Socialization

The Family Life Cycle

Bachelorhood Honeymooners Parenthood Post-parenthood Dissolution

Consumption in Non Traditional Families

Social Class and Consumer Behavior

Social Class is defined as the division of members of a
society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all the other classes have either more or less status.

Consumer Decision Making

. Creating a Win Win Situation!!

Consumer Influence
Opinion Leadership: - It is process by which one person (the opinion leader) informally influences the attitudes or actions of others, who may be opinion seekers or merely opinion recipients. Dynamics of the opinion leadership process: -

Credibility Positive & Negative product Information Information and Advice

Opinion Leadership Continued.. Opinion leadership is Category Specific

e.g. Restaurants 69%

Computer Hardware/Software 36% Consumer Electronics 24% Travel 22% Automotive 18%

Financial Services 9%
The Needs of Opinion Leaders The Needs of Opinion Receivers

The Interpersonal Flow of Communication

Two step flow of Communication theory
Multi step flow of Communication theory

Marketing Strategy w.r.t. Opinion Leaders

- To encourage WOM (Buzz Potential) - Advertisements Simulating Opinion Leadership

Diffusion of Innovations
It involves 2 closely related processes: -

Diffusion Process It is a macro process concerned with the spread of a new product from its source to the consuming public Adoption Process It is a micro process that focuses on the stages through which an individual consumer passes when deciding to accept or reject a new product. Consumer Innovators Those who are the first to purchase a new product.
Resistance to Innovation Relative Advantage

The Adoption Process

Adoption Or Rejection

Pre-existing problem or need

Awareness

Interest

Evaluation

Trial

Adoption Or Rejection

Post adoption Or Post purchase evaluation

Evaluation Discontinuation Rejection Discontinuation Or Rejection

Levels of Consumer Decision making

Extensive problem Solving Limited problem Solving Routinized Response Behavior

Consumer Buying Behavior New Paradigm in Consumer Behavior