Presentation

of
Consumer Behavior
Presented by:-
RITU
POOJA
MOHIT
 Group

► A group is a set of individuals which

▪ interacts with one another over some period of
time, and
▪ shares some common need or goal.
 Groups Influence Buying
in Two Ways:
 They affect the
purchases made by
individual consumers

 Group members
sometimes make
decisions as a group
Dyadic Exchange . . .

. . . takes place when

two individuals
transfer resources
between each other
 Definitions

•Word-of-Mouth
oThe act of consumers providing
information to other consumers
•Word-of-Mouth Marketing
oGiving people a reason to talk about your
products and services, and making it easier
for that conversation to take place
 Recognizing that a
happy customer is the
greatest endorsement
 Giving customers a
voice
 Listening to consumers
 Engaging the
community
 Positive WOM Strategies
 Encouraging communications
 Giving people something to talk about
 Creating communities and connecting
people
 Working with influential communities
 Contd……..

 Researching and listening to customer

feedback
 Engaging in transparent conversation
 Co-creation and information sharing
 Opinion Leadership

The process by which one person (the

opinion leader) informally influences the
consumption actions or attitudes of
others who may be opinion seekers or
opinion recipients.
 Contd……

Opinion Opinion
Leader Receiver

Opinion
Seeker
 Opinion Leaders...

 Lead in a specific product category and situation.

 Are usually involved with the product category.
 May have higher social status than followers.
 May be more innovative in purchases than
followers.
 Are a bit similar to product innovators.
 The Needs of Opinion Leaders

 Self involvement
 Social involvement
 Product involvement
 Message involvement
 Types of Opinion Leaders

 Opinion Leader  Market Maven

 Always involved in  General market
product category. knowledge
 High status, socially  Expertise not product
active. specific.
 Product Innovator  Surrogate Consumer
 Purchases innovative  Often professional: tax
products consultant, wine
 Less integrated into steward, stock broker.
social groups.
Reasons for the Effectiveness of Opinion
Leadership

 Credibility
 Positive and Negative Product
Information
 Information and Advice
 Opinion Leadership Is Category-
Specific
 Opinion Leadership Is a Two-way
Street
 Issues In Opinion Leadership and
Marketing Strategy

 Programs Designed to Stimulate Opinion

Leadership
 Advertisements Stimulating Opinion
Leadership
Market Maven
Individuals whose influence stems from a general
knowledge or market expertise that leads to an
early awareness of new products and services.
Service Encounters . . .

. . a personal interaction
between a consumer
and a marketer.
 Diffusion . . .

. . . refers to the idea that  . . . in the consumer

substances and ideas
can gradually spread
through a medium of
some type and reach a
state of equilibrium.
behavior setting, refers
to the process by which
innovative ideas,
products, and services
spread through the
consumer population.
 Diffusion Process

 The process by which the acceptance of an

innovation is spread by communication to
members of social system over a period of
time.
 Marketer generated info’n sources.
 Websites , chat room e.g i-pod
Elements of the Diffusion Process

 The Innovation
 The Channels of Communication
 The Social System
 Time
 Defining Innovations

 Firm-oriented definitions
 Product-oriented definitions
 Market-oriented definitions
 Consumer-oriented definitions

Purchase innovativeness ( time of adoption)

Use innovativeness
 Telephone Innovations
Discontinuous Dynamically Continuous Continuous
Innovations Innovations Innovations
Telephone answering Hold button
machines Line-in-use indicator
Call forwarding Redial button
Telephone Call waiting Auto dialing feature
Caller ID Touch-tone service
Banking by telephone 800 Numbers
Call-prompting systems 900 Numbers

Ability to send/receive email Switch from analog to

Incorporate PDA functions digital
Cell Phone Calendar/Phonebook Include camera
Voice-activated dialing Ringer styles
Play games
Fax modem Plain paper fax
Mobile fax machines Speed dial buttons
Fax
Home office systems Delayed send
Machine
(combined fax, copier, Copy function
computer printer) Paper cutter
 Product Characteristics That
Influence Diffusion
 Relative Advantage- over the existing pdt.

 Compatibility- with the existing needs, values attitudes

and practices. (3m scotch pop up tapes, MACH 3 razors
,shaving creams)

 Complexity- degree of difficulty to use or

understand.fear of tech’ complexity, obsolescence,social
rejection, physical harm.

 Observability- degree to be tried on a limited basis.- pdt

can be described , communicated.
Pdts may diffuse differently in diff cultures.
The Diffusion of Innovations

A product innovation is
a product that has been
recently introduced and
is perceived by
consumers to be new in
relation to existing
products or services
 Managerial Implications

 Positioning. New products should be positioned to

appeal to opinion leaders, then possibly
repositioned to appeal to followers.
 Market Research. Research can provide insight
into the shape of the diffusion curve for a new
product.
 Marketing Mix. Promotions can be positioned to
appeal to children and thus utilize their influence in
family decision makings.
 Adoption Process

The stages through which an individual

consumer passes in arriving at a decision
to try (or not to try), to continue using (or
discontinue using) a new product.
 Adopter Categories
A sequence of categories that describes
how early (or late) a consumer adopts a
new product in relation to other
adopters.
 Stages in Adoption Process
WHAT HAPPENS
NAME OF EXAMPLE
DURING THIS STAGE
STAGE
Consumer is first exposed Janet sees an ad for a new MP3 player in the
Awareness to the product innovation. magazine she is reading.

Consumer is interested in Janet reads about the MP3 player on the

the product and searches manufacturer’s Web site and then goes to an
Interest
for additional information. electronics store near her apartment and has
a salesperson show her a unit.
Consumer decides After talking to a knowledgeable friend,
whether or not to believe Janet decides that this MP3 player will
that this product or allow her to easily download the MP3 files
Evaluation service will satisfy the that she has on her computer. She also feels
need--a kind of “mental that the unit’s size is small enough to easily
trial.” fit into her beltpack.
 Table 15.11 Stages in Adoption Process
WHAT HAPPENS
NAME OF DURING THIS EXAMPLE
STAGE STAGE
Consumer uses the Since an MP3 player cannot be “tried” like
product on a limited a small tube of toothpaste, Janet buys the
Trial basis MP3 player online from Amazon.com,
which offers a 30-day full refund policy.

If trial is favorable, Janet finds that the MP3 player is easy to

consumer decides to use use and that the sound quality is excellent.
the product on a full, She keeps the MP3 player.
Adoption rather than a limited
(Rejection) basis--if unfavorable, the
consumer decides to
reject it.
 Issues in Profiling Consumer
Innovators
 Defining the Consumer Innovator
 Interest in the Product Category
 The Innovator Is an Opinion Leader
 Personality Traits
 Media Habits
 Social Characteristics
 Demographic Characteristics
 Are There Generalized Consumer Innovators?