GROUP MEMBERS SAJA DEEPIKA SHAN ANAS SHANVER TEJAS SUHANI

Definition

Consumer Behavior is the process whereby individuals decide what, when, where, how and from whom to purchase goods and services Walters and Paul.

CONSUMER The term Consumer refers to someone who purchases a good or service for direct ownership or consumption. DECISION MAKING Decision making can be regarded as the mental processes resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice. Choice=Want + Ability to buy + Attitude towards the brand.

GENERAL MODELS
The general model of consumer decision-making has the following steps or the act of making a consumer decision consists of the following stages: NEED RECOGNITION. IDENTIFICATION OF ALTERNATIVES (Information Search) EVALUATION OF ALTERNATIVES. PURCHASE DECISION. POST PURCHASE BEHAVIOUR.
Satisfaction & Brand Loyalty. Cognitive Dissonance.

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THE NICOSIA MODEL ` THE HOWARD- SHETH MODEL ` SOCIOLOGICAL MODEL ` STIMULI MODEL ` ANDREASON MODEL
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In an early study of the buyer decision process literature, Frank Nicosia (Nicosia, F. 1966; pp 9-21) identified three types of buyer decision making models. They are the univariate model (He called it the "simple scheme".) in which only one behavioural determinant was allowed in a stimulus-response type of relationship;

the multi-variate model (He called it a "reduced form scheme".) in which numerous independent variables were assumed to determine buyer behaviour; and finally the "system of equations" model (He called it a "structural scheme" or "process scheme".) in which numerous functional relations (either univariate or multi-variate) interact in a complex system of equations.

He concluded that only this third type of model is capable of expressing the complexity of buyer decision processes.

The Howard-Sheth model of buying behavior attempts to explain the complexity of the consumer decision making process in case of incomplete information. This model suggests three levels of decision making A) Extensive problem solving. B) limited problem solving. C) Habitual response behavior.

At this level the consumer does not have any basic information or knowledge about the brand and he does not have any preferences for any product. In this situation, the consumer will seek information about all the different brands in the market before purchasing.

This situation exists for consumers who have little knowledge about the market, or partial knowledge about what they want to purchase. In order to arrive at a brand preference some comparative brand information is sought.

   

In this level the consumer knows very well about the different brands and he can differentiate between the different characteristics of each product. According to the Howard-Sheth model there are four major sets of variables: Inputs. Perceptual and Learning Constructs Outputs Exogenous(External) variables

INPUTS:- These input variables consist of three

distinct types of information sources in the consumers environment.

Significative:- Information furnishes physical brand characteristics such as Quality,price,distinctive,service,availability. Symbolic:-verbal or visual product characteristics such as Quality,price,distinctive,service,availability. consumers social environment:- family, reference group, and social class.

Perceptual and Learning Constructs:It deals with the psychological variables involved when the consumer is making a decision. How the consumer receives and understands the information from the input s. consumers goals, information about brands, criteria for evaluation alternatives, preferences and buying intentions are all included.

Outputs:The outputs are the results of the perceptual and learning variables and how the consumers will response to these variables . Exogenous(External) variables:some relevant exogenous variables include The importance of the purchase, Consumer personality traits, Religion, and Time pressure.

SOCIOLOGICAL MODEL
- According this model the individual buyer is a part of the institution called society. Since he is living in a society, he gets influenced by it and in turn also influences it in its path of development. - The buyer plays many roles as a part of various formal and informal associations or organisations. - Such interactions leave some impressions on him and may play a role in influencing his buying behavior.

Intimate groups comprising of family, friends, and close colleagues exercise a strong influence on the life style and buying behavior of an individual member. The peer group plays a very important role in acting as an influencing factor especially adopting particular life style and buying behavior pattern.

- Similarly, depending on the income, occupation, place of residence etc. each individual member is recognized as belonging to a certain social class. As a member of a particular class, he may enjoy certain status and prestige. - Further, each class has its own standards of life style and buying behavior pattern. - So an individual member will adopt the role suitable to confirm to the style and behavioral pattern of the social class to which he/she belongs.

- The marketer through the process of market segmentation can work out on the common behavior pattern of a specific class and group of buyers and try to influence their buying pattern.

The black box model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people).

ENVIRONMENTAL FACTORS Marketing Stimuli Environmental Stimuli

BUYER'S BLACK BOX

Buyer Characteristics Decision Process

BUYER'S RESPONSE

Economic Product Technological Price Political Place Cultural Promotion Demogra hic Natural

Attitudes Motivation Perceptions Personality Li estyle Kno ledge

Problem recognition In ormation search Alternative evaluation Purchase decision Post-purchase behaviour

Product choice Brand choice Dealer choice Purchase timing Purchase amount

A complete understanding of the influences that affect consumer behavior is an essential foundation for building a marketing strategy. Hawkins, Best, and Coney (2001) suggested a process for identifying information associated with the critical decisions that marketing managers must make about major elements of marketing, known as consumer behavior audit.

CONSUMER BEHAVIOR AUDIT CONSISTS OF: MARKET SEGMENTATION PRODUCT POSITION PRICING DISTRIBUTION STRATEGY PROMOTION STRATEGY PRODUCT CUSTOMER SATISFACTION AND COMMITMENT

It is the process of dividing all possible users of a product into groups that have similar needs the products might satisfy. The reason for continuing segmentation analyses is the dynamic nature of consumer needs.

It is the way the consumer thinks of a given product or brand relative to competing brand or product. The capabilities and motivations of existing and potential competitors must also be considered.

The manager must set a pricing policy that is consistent with the desired product position. Price must be broadly conceived as everything a consumer must surrender to obtain a product which includes time and psychological costs as well as monetary costs.

The distribution strategy must be consistent with the selected product position. This involves the selection of outlets if the item is a physical product, or the location of the outlets if the product is a service.

The manager must develop a promotional strategy, including advertising, nonfunctional package design features, publicity, promotions, and sales force activities that are consistent with the product position.

The marketing manager must be certain that the physical product, service or idea has the characteristics required to achieve the desired product position in each market segment.

Marketers must produce satisfied customers to be successful in the long run. It is often to a firms advantage to go beyond satisfaction and create committed or loyal customers.

THANK YOUu!!!