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DR Meenakshi Kharb
DR Meenakshi Kharb
DR Meenakshi Kharb
SDM
Management>
Dr Meenakshi Kharb>
Department of Management
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Chapter 4
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McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
After studying this chapter, you
should be able to:
• Discuss the importance of consumer behavior.
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After studying this chapter, you
should be able to:
• Appreciate how the social environment affects
consumer behavior.
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< Sales & Distribution
Management >
SDM
<Introduction>
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The Nature of Consumer Behavior
and Decision Making
• Consumer Behavior:
– The mental and emotional processes and
physical activities people engage in when
they select, purchase, use, and dispose of
products or services to satisfy particular
needs and desires.
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Definitions
• Consumer Buying Behavior
– Buying behavior of individuals and
households that buy products for
personal consumption.
• Consumer Market
– All individuals/households who buy
products for personal consumption.
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The Nature of Consumer
Behavior and Decision Making
• Factors important to understanding
consumer markets and consumer
behavior:
– The size of the consumer market.
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Growing Consumer Markets
1. New retail line-ups
• “Price-centric”
• Lifestyle
• “Occasion-centric”
3. Consumer electronics.
4. Enhanced experience
businesses.
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Growing Consumer Markets
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Consumer Behavior and the Design
of Marketing Strategy
Brand Equity:
The marketplace value of a brand.
Service Recovery:
Winning back consumers who defect.
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Understanding E-Customers
• The 10 Most Important Website
Attributes:
1. Product representation
2. Product prices
3. Product selection
4. On time delivery
5. Ease of ordering
6. Product information
7. Level and quality of consumer support
8. Product shopping and handling
9. Posted privacy policy
10. Site navigation and appearance
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Consumer Decision Making
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Figure 6-5:
Types of Buying Behavior
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High- and Low-Involvement Decisions
• Involvement: • Consumer
– The level of Information
importance or Processing:
interest – The cognitive
generated by a processes by which
product or a consumers interpret
decision. and integrate
information from the
environment.
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High-and Low-Involvement Decisions
• High-involvement Decisions:
– Characterized by high levels of importance
thorough information processing, and
substantial differences between alternatives.
• Low-involvement
Decisions:
– Occur when
relatively little
personal interest,
relevance, or
importance is
associated with a
purchase.
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Cognitive Dissonance
Cognitive Dissonance:
• A form of
postpurchase doubt • Cognitive Dissonance
about the occurs when:
appropriateness of a – Decisions are major
decision. – The purchase is important
– Perceived risk is high
– The purchase is visible
– The decision involves a
long-term commitment
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Figure 6-2:
Factors Influencing
Consumer Behavior
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Cultural Influences
• Culture:
– The values, ideas, • Culture is learned and
attitudes, and transmitted from one
symbols that people generation to the next.
adopt to
communicate,
interpret, and
interact as members
of society.
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Subcultures
• Ethnic Patterns:
– The norms and values of specific groups or
subcultures within a society.
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Subcultures
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Characteristics Affecting
Consumer Behavior
• Asian Americans
– 10 million consumers
purchase $229 billion
worth of goods and
services.
– Fastest growing, most
affluent subculture.
– Many nationalities
comprise this group.
– Consumer packaged
goods firms now target this
group more heavily.
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Cultural Influences
• Socialization: • Consumer
– The process of Socialization:
absorbing a culture – When socialization is
applied to marketing
and consumer
behavior.
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Social Class Influences
• Social Classes:
– Relatively homogeneous divisions
within a society that contain people
with similar values, needs,
lifestyles, and behavior.
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Influence of the Social Environment
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Characteristics Affecting
Consumer Behavior
• Reference Groups:
– Those others look to for help and
guidance including friends, co-
workers, and others.
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Family Influences and the Family Life Cycle
– Affecting individual
purchase decisions.
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Family Influences and the Family Life Cycle
• Single adults, to
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• Think about Tide
detergent.
• What brand
personality seems to
describe Tide best?
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Characteristics Affecting
Consumer Behavior
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• Decider : The person or persons who
actually determine which product or
service will be chosen.
• Buyer : Buyer is an individual who actually
makes the purchase transaction.
• User(s) : User is a person most directly
involved in the use or consumption of the
purchased product
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Attitudes – Marketing Implications
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Experiential Choices
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Experiential Choices
• Impulse
Purchases:
– Choices made on
the spur of the
moment, often • Time-inconsistent
without prior Choices:
problem
– Choices consumers
recognition.
make which act against
their own better
judgment and engage in
behavior they would
normally reject.
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Values
• Values:
– Shared beliefs or cultural norms about
what is important or right.
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Values
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Interpersonal Influence
Processes
• Normative Influence:
– A combination of Utilitarian and Value-
Expressive Influence.
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Individual Differences
• Sources of Individual
Differences
Influencing Consumer
Behavior:
1. Word-of-mouth
communications
2. Personality
3. Lifestyles and
psychographics
4. Motivation
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Word-of-Mouth Communications
Opinion Leaders:
Influence consumer behavior through
word-of-mouth communications.
Market Mavens:
Consumers who know about many kinds of products,
places to shop, and other facts of the market, and they
like to share this information with other consumers.
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Personality
• Personality:
– Reflects a person’s
consistent response
to his or her • Personality traits
environment. related to consumer
behavior:
– Extroversion
– self-esteem
– dogmatism (closed-
mindedness)
– aggressiveness
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Personality
• Self-Concept:
– The overall perception and feeling that one has
about herself or himself.
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Lifestyles and Psychographics
• Lifestyle:
– Describes a person’s
pattern of living as • Psychographics:
expressed in – Divide a market into
activities, interests, lifestyle segments on
and opinions (AIO the basis of consumer
statements). interests, values,
opinions, personality
characteristics,
attitudes, and
demographics.
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Motivation
• Motivation:
• Maslow’s Hierarchy:
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Situational Factors
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Situational Factors
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Consumer Behavior Outcomes
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Consumer Satisfaction, Dissatisfaction,
and Complaint Behavior
• Satisfaction and
dissatisfaction
describe the positive,
neutral, or negative
feelings that may
occur after purchase. • Firms adopting a customer
value perspective must
• Consumer complaints employ marketing
are overt expressions communications that
of dissatisfaction. convey realistic
expectations.
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A Model of Consumer Satisfaction
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Findings of Customer
Satisfaction Research
1. Satisfaction judgements evolve and are changeable
as products are used.
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Customer Complaints
Voice Responses
(seeking satisfaction directly from the seller)
Private Responses
(bad-mouthing to friends)
Third-party Responses
(taking legal action, filing complaints
with consumer affairs agencies)
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Cognitive Dissonance
Cognitive Dissonance:
• A form of
postpurchase doubt • Cognitive Dissonance
about the occurs when:
appropriateness of a – Decisions are major
decision. – The purchase is important
– Perceived risk is high
– The purchase is visible
– The decision involves a
long-term commitment
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Ethical and Social Issues in
Consumer Behavior
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Ethical and Social Issues
in Business Behavior
Corporate Social
Business Ethics
Responsibility
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THANK YOU
SDM
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