Consumer Behavior

Assignment
Why is understanding consumer behavior of such
importance to marketers- Give one or two
examples where brands/service were introduced
keeping in mind local consumer behavior

Give your answers either in word format (one para) or bullet points
(5 to 6). Upload your answer’s on MS Teams
Why is understanding consumer
behavior of such importance to
marketers
Importance of Consumer Behavior

• When marketers moved from a sales orientation to a marketing

orientation, it became necessary to have a more in-depth
understanding of the consumer.

• Rather that developing products and then trying to push them onto
consumers, marketers’ shifted their focus more to understanding
consumers’ needs and wants and developing products and services to
satisfy them

• Eg- McDonalds- Alu Tikki, Kellogg’s Poha,

Consumer Decision Process Model
It broadly has five stages:
1. Problem Recognition

2. Information Search

3. Alternative Evaluation

4. Purchase Decision

5. Post purchase Evaluation

Consumer Decision Making
A) Problem recognition:
• Difference between the consumer’s ideal state and actual state.

• There are various causes of sources of problem recognition.

1. Out of stock
2. Dissatisfaction
3. New needs/wants
4. Related products/purchases
5. Marketer induced problem recognition
6. New products
Sources of Problem Recognition

New Needs
Out of Stock Dissatisfaction
or Wants

Related Products, Market-Induced New

Purchases Recognition Products
Examining Consumer Motivations

The way a consumer perceives a need and becomes motivated to solve

a consumption problem will influence the remainder of the decision
making process.

Marketers develop considerable attention to examining motives or

factors that compel or drive a consumer to take a particular action.
Maslow’s Hierarchy of Needs
 Freudian Psychoanalytic Approach

• According to Freud's theory, there is a connection between the attributes of a product

and the emotions of consumers.

• There are certain products with the capability to trigger emotional responses from
consumers, such products sell more because they appeal to the unconscious desires and
emotions of consumers.

• Sigmund Freud divided the human psyche into two parts; the conscious and the
unconscious mind.

• While the conscious mind reflects in the thoughts, feelings, and perceptions of individuals,
the unconscious mind reflects through innate instincts.
Probing the Minds of Consumers

In-depth Association
interviews tests

Projective
Focus groups
techniques
B) Information Search
Perceptions

Marketers want to know

1) How consumers sense external information

2) How they select and use sources of information

3) How information is interpreted and given meaning

There are a number of processes involved in perception which
determine how marketing information will be received:

1. Sensation—the immediate and direct response of the senses to a stimulus such

as an advertisement.
2. Selecting information—determining whether incoming information will be
attended to and how much attention it will be given.
3. Interpretation—the process by incoming information is interpreted and
assigned meaning.
4. Selective perception—a filtering or screening may occur at various stages of the
perceptual process such as exposure, attention, comprehension and retention.
5. Subliminal perception—refers to the ability of an individual to perceive a
stimulus that is below the level of conscious awareness. The possibility that
marketers could use subliminal advertising to influence consumers at a
subconscious level
The Perception Process

Receive

Select

Organize

Interpret
Gaining Attention With Color

WE CAN SUM IT UP IN TWO WORDS:

EXCEPTIONAL, EXTRAORDINARY, FANTASTIC, FRESH TASTE.

ADMITTEDLY, WE’RE BAD AT SUMMATION.

There just aren’t enough adjectives to describe the

straight-from-the-orange taste of Tropicana Pure Premium.®
What is a sensation?

Taste Hearing
Immediate,
direct response
of the senses
Smell Touch

Sight
Appealing to the Senses

Perfume on Scented Product

sidewalks cards Samples
C) Evaluation of Alternatives
All Available Brands

Brand A Brand B Brand C Brand D Brand E

Brand F Brand G Brand H Brand I Brand J

Brand K Brand L Brand M Brand N Brand O

Evoked Set of Brands

Brand B Brand E

Brand F Brand I

Brand M
1)Two Forms of Evaluation Criteria

Evaluative Criteria

Objective Subjective

Price Style
Warranty Appearance
Service Image
Different Perspectives: Marketer’s View

Traction
Enough okay? Too
power? expensive?
Different Perspectives: Consumer’s View
Will it cut Will the neighbors
the taller grass? be impressed?

How close can

Will it be as
I get to shrubs?
fun to use later
this summer?

Will it pull that

trailer I saw at Will I have
the store? more time for
golf?

Functional Psychological
 2)Attitude
Attitudes are one of the most heavily studied concepts in consumer behavior.

Attitudes refer to a summary construct that represents an individual’s overall feelings or

evaluation of an object such as a brand, a company, another person, a retail store, or even
an advertisement.

Marketer’s keen interest in attitudes is based on the assumption that they are related to
purchase behavior.

Advertising and promotion are used to create favorable attitudes toward new
products/services, reinforce or maintain existing favorable attitudes, and/or change negative
attitudes.
Measuring Components of Model

• Beliefs
How likely is it that Nike running shoes provide good cushioning?
Very likely _ _ _ _ _ _ _ _ _ Very unlikely

• Importance
Good cushioning in a running shoe is:
Very important _ _ _ _ _ _ Not at all important

• Attitude Toward the Object

How do you feel about purchasing Nike running shoes?
Very good _ _ _ _ _ _ _ _ _ Very bad
Ways to Change Attitudes

Change beliefs about an important attribute

Change perceptions of the

value of an attribute

Add a new attribute to the

attitude formation mix

Change perceptions or beliefs about

a competing brand
 D) Purchase Decision

• Many purchase decisions are made on the basis of brand loyalty which is
a preference for a particular brand that results in its repeated purchase.

• Many purchase decisions for non-durable, low involvement items take place in the
store and decision and purchase occur almost simultaneously.

• For these types of decisions top-of-mind awareness of a brand is important as is

the influence of packing, shelf displays, point-of-purchase materials, and various
sales promotion tools.
 E) Post Purchase Evaluation

After using a product or service the consumer compares the level of performance
with expectations.

Satisfaction occurs when the consumer’s expectations are either met or exceeded,
while dissatisfaction results when performance is below expectations.

Another possible outcome of purchase is cognitive dissonance which refers to a

feeling of psychological tension or post-purchase doubt a consumer may experience
after making a difficult purchase choice.

Consumers often look to advertising for supportive information regarding the choice
they have made.
 Variations in Consumer Decision Making

1. Routine response behavior—many purchase decisions for low-priced, frequently purchased products
are based on a habitual or routine choice process
• Marketers of products characterized by routine response behavior must get and/or maintain
their brands in the consumers’ evoked set and encourage brand loyalty.
• Those not in the evoked set must encourage trial and brand switching.

2. Limited problem solving—often a consumer has a limited amount of experience in purchasing a

product or service but in somewhat aware or knowledgeable of the brands available and/or the
criteria to use in making a purchase decision.

3. Extended problem solving—the most complex and detailed form of decision making occurs when
consumers have little, if any, knowledge regarding the criteria to use in making a purchase decision or
the various brands available.
Environmental Influences On Consumer Behaviour

• Culture—culture refers to the complexity of learned meanings, values norms, and customs shared
by members of a society. The importance of understanding the impact of culture on consumer
behavior has become increasingly important as marketers expand their international marketing
efforts.

• Subcultures— It may be based on age, geography, race, religion, racial, lifestyles, and ethnicity.

• Social Class—social class refers to relatively homogenous divisions in a society into which people
sharing similar lifestyles, values, norms, interests, and behaviors can be grouped.
• occupational status,
• educational attainment
• source of income.
Environmental Influences On Consumer Behaviour

• Reference Groups—a reference group is a group whose perspective or values are being used by
an individual as the basis for his/her judgments, opinions and actions.

• Family Influences—many purchased decisions are made by families rather than by individuals.
• The various roles in the family decision making process such as initiator, information provider, influencer, decision
maker, purchaser and user or consumer.
• Decision Maker
• Messages must also be designed so as to appeal to the appropriate family member(s).

• Situational Determinants— Three types of situational determinants may have an effect

• The specific usage situation,
• The purchase situation,
• The communications situation.