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Consumer Behaviour: Prepared By: Mrs. Gurpreet K Chhabra Astt. Prof. MERI
Consumer Behaviour: Prepared By: Mrs. Gurpreet K Chhabra Astt. Prof. MERI
Consumer Behaviour: Prepared By: Mrs. Gurpreet K Chhabra Astt. Prof. MERI
BEHAVIOUR
Prepared By:
Mrs. Gurpreet K Chhabra
Astt. Prof. MERI
Overview
of
Consumer Behavior
2
Learning Objectives
1. To Understand What Consumer Behavior Is and the
Different Types of Consumers.
2. To Understand the Relationship Between Consumer
Behavior and the Marketing Concept, the Societal
Marketing Concept, as Well as Segmentation, Targeting, and
Positioning.
3. To Understand the Relationship Between Consumer
Behavior and Customer Value, Satisfaction, Trust, and
Retention.
4. To Understand How New Technologies Are Enabling
Marketers to Better Satisfy the Needs and Wants of
Consumers.
3
Chapter One Slide
Overview of Consumer Behavior
Definition 1: Consumer behavior:
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Overview of Consumer Behavior
Definition 2: Consumer behavior
The behavior that consumers
display in :
Searching for,
Purchasing,
Using,
Evaluating,
And disposing of products and
services
That they expect will satisfy their
needs.
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Type of Consumers
Personal Consumer :
The individual who buys goods and services for his
or her own use, for household use, for the use of a
family member, or for a friend.
Organizational Consumer :
A business, government agency, or other
institution (profit or nonprofit) that buys the goods,
services, and/or equipment necessary for the
organization to function.
6
Why do we need to study
Consumer Behavior?
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Relevance of Consumer Behavior
The study of consumer behavior is very
relevant for marketers because:
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Consumer Behavior & Decision
Making interdisciplinary
Consumer behavior as a new discipline
borrowed concepts from other scientific
disciplines such as:
Anthropology
Psychology
Economics
History and geography
Socio-psychology
9
Anthropology
The influence of the
culture (within and across)
& society on the
individuals.
Emphasis on cross-
cultural differences
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Psychology
Study of human thinking
and behavior
Some issues
Personality
Personal development
Cognition (thinking),
perception
Attention and its limitations
“Learning”—e.g., acquired
tastes
11
Economics
Basic economic issues
Supply and demand
Rational decision making
Perfect information
Emphasis on predicting behavior
Complications in real life
Behavioral economics—e.g.,
“mental accounting”
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History and Geography
Origins of behavior,
perspectives, and
traditions
Impact of geography on
individuals
Isolation
Language development
Climate
Geographic determinism
13
Socio- Psychology
Is the study of how persons
are influenced by groups.
Cultural and interpersonal
influences on
consumption—e.g.,
Fads, fashions
Diffusion of innovation
Popular culture
14
Dynamic Consumer Behavior
Thinking, feelings, and actions of individual
consumers, targeted consumer groups, and
society at large are constantly changing.
Requires ongoing consumer research and
analysis of important trends.
Makes development of marketing strategies
difficult and exciting
Shorter product life-cycle increases importance of
constant innovation
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Marketing concepts
Production concept
Product concept
Selling concept
Marketing concept
Societal concept
Shift of focus to better serve
consumers for major reasons
Increased consumer interest in world markets.
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Successful Relationships
Customer Customer
Value Satisfaction
Customer
Retention
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Impact of Digital Technologies
Buyer’s Characteristics
Decision Buyer’s Black Box Affecting
Process Consumer
Behavior
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
The Buyer Decision Process
Step 1. Need Recognition
Need Recognition
Difference between an actual state and a desired state
• Hunger • TV advertising
• Thirst • Magazine ad
• A person’s normal
• Radio slogan
needs
•Stimuli in the
environment
The Buyer Decision Process
Step 2. Information Search
Personal Sources •Family, friends, neighbors
•Most influential source of
information
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes Unexpected
of others situational
factors
Purchase Decision
The Buyer Decision Process
Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Product’s Perceived
Performance
Satisfied Dissatisfied
Customer! Customer
Cognitive Dissonance
CONSUMER DECISION
RULES
Compensatory decision rule- On the basis of
this decision rule, a shopper evaluates store or
brand alternatives in respect of each salient
attribute and assigns weight for each store or
brand in a consideration set .The computed
value reflects the store’s relative edge as a
potential purchase choice . The proposition is
that the shopper will select the store or brand
that scores the highest among the options
evaluated. This rule is characterized by allowing
a positive evaluation of a store or brand on one
attribute to compensate or make for a negative
evaluation on some other attribute.
Non- compensatory decision rule - on the basis of this rules
consumers do not balance positive assessment of store on one
dimension against a negative evaluation on other dimensions:
~ Conjunctive rule - Here the shopper establishes a specific, minimal
acceptable level as a cut off point for each dimension. If a particular
prospective store falls below the cut off point on any dimension
(evaluative criteria), it is dropped from the consideration set.
~ Disjunctive rule – Here a shopper sets up a specific ,minimal
acceptable level as a cut off point for each dimension . Acceptability
of a store depends if the store meets or exceeds the limit
established for any one dimension considered most important by the
customer.
~ Lexicographic decision rule – Here the shopper first ranks the
dimensions in terms of their perceived salience or importance .The
shopper then compares the various brand alternatives in terms of a
single attribute that is considered most important. If one brand
scores sufficiently high on this top-ranked dimension (regardless of
the scores on any other attributes) ,it is selected & process ends ,
else process continues with next highest alternative.
FISK’S CONCEPTUAL MODEL OF
DEPARTMENT STORE IMAGE
DIMENSION DETERMINANTS
Locational convenience 1) Access route
2) Traffic barrier
3) Travelling time
4) Parking availability
a buying decision
buyer--the person who makes the actual purchase
High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between
brands
Behavior Behavior
Few Dissonance- Habitual
differences Reducing Buying
between
Buying
brands Behavior Behavior
VARIOUS TYPES OF BUYING
SITUATIONS
Complex buying situation-purchasing a car, computer, house
etc.stress is on pre-purchase councelling.Involvement on marketer’s
part is very high because brands differ widely.
Habitual buying situation-purchasing grocery items, low involvement
because brands differ marginally marketers job is to make it
available easily.
Dissonance-reducing buying situation-purchasing carpets, I-tech
electric devices, personal computers etc.High involment is required
at post purchase level so as to reduce post purchase dissonance of
customers.
Variety-seeking buying situation-purchasing
cookies,perfumes,cosmetics products,clothes,shoes etc.Low
involvement.stress is on attracting retailers& customers through
attractive offers, prompting them to ‘switch’ brands.
Levels of Consumer Decision
Making
Extensive Problem
Solving
Limited Problem
Solving
Routine Response
Behavior
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Levels of Consumer Decision
Making
Extensive Problem Solving
A lot of information needed
Must establish a set of criteria for
evaluation
Limited Problem Solving
Criteria for evaluation established
Fine tuning with additional information
Routinized Response Behavior
Usually review what they already know
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Chapter Fifteen Slide
•A search by the consumer to establish
the necessary product criteria to evaluate
knowledgeably the most suitable product
to fulfill a need.
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•At this level, consumers have
experience with the product
category and a well-established
Routinized set of criteria to evaluate the
brands is considered.
Response
Behavior •Response behavior occurs
when buyers purchase low cost,
low risk, brand loyal, frequently
purchased, low personal
identification or relevance, items
with which they are familiar.
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Types of consumer involvement
and decision making