Consumer Behaviour (CB) CB is defined as the behaviour that consumer display in searching for, purchasing, using, evaluating and

disposing of products and services that they expect will satisfy their needs. CB focuses on now individuals make decisions to spend their available resources (time, money, effort) on consumption related items. That includes: What they buy Where they buy Why they buy When they buy it How often they buy How often they use it How they evaluate it after the purchase Impact of these evaluations on future purchase How they dispose of it CB describes two different kinds of consuming entities: Personal consumer Organizational consumer (project & non project org. govt. agenties institutions i.e. school, hospitals, prisons etc.)

Demographics are statistics that measure observable aspects of a population such as birthrate, age, gender, income etc. one of the most important segment for the marketer. Lifestyle and Psychographic Segmentation Lifestyle is basically now a person lives. It is now one enacts his/her self concept. It is determined by the persons past experiences, innate characteristics and current situations. Psycho (mental) Graphic (profiling) may be viewed as the method of defining lifestyle in measurable terms. It is the systematic use of relevant activity, interest and opinion constructs to quantitatively explore and explain the communicating, purchasing and consuming behaviours of persons for brands, products and cluster of products. Psychographic (including lifestyles) and demographic profiles are highly complementary approaches that work best when used together. By combining the knowledge marketers are provided with powerful information about tgt segment. Lifestyle Marketing Lifestyle frequently provides the basic motivation and guidelines for purchases, although it does so in an indirect and subtle manner.

Lifestyle and the consumption process

Lifestyle Determinants Demographics Subculture Social class Motives Personality Emotions Values Household life cycle Culture Past experience Lifestyle How we live Activities Interests Likes/Dislikes Attitudes Consumptions Expectations Feelings Impact on Behaviour Purchases How When Where What With whom Consumption Where With whom How When What

Measurement of Lifestyle Attitude Evaluative statement about other people, places, ideas, products etc. Values Widely held beliefs about what is acceptable/desirable. Activities & Interests Non-occupational behaviour to which consumes devote time and effort e.g. hobbies, sports, public service. The Technique of Lifestyle Segmentation Lifestyle segmentation measure (i) how people spend their time engaging in activities (ii) what is of most interest/important to them in their immediate surroundings (iii) their opinion and views about themselves and world around them (AIOS).

Lifestyle Dimensions Activities Work Hobbies Social events Vacation Entertainment Club Member Community Shopping Sports Interests Family Home Job Community Recreation Fashion Food Media Achievements Opinions Themselves Social issues Politics Business Economics Education Products Future Culture Age Education Income Occupation Family size Dwelling (house to live-in) Geography City size Stage in lifecycle Demographics

Demographics age, education, income, occupation, family structure, gender, geographic location. Media pattern the specific media the consumers utilize. Usage Rates measurement of consumption within a specified port category; often consumers are characterized as heavy, medium, light or nonusers. VALS Introduced in 1978 VALS (Values & Lifestyles) given by SRI Consulting Business Intelligences is the most popular application of psychographic research by marketing managers. SRIC BI has identified there primary self orientations. Principle Oriented These individuals are guided in their choices by their beliefs and principles rather than by feelings, events or desire for approval. Status oriented The actions, approval and opinion of others heavily influence these individuals. Experiences and Makers : Action Oriented Experiences are young, vital, enthusiastic, impulsive and rebellious. They seek variety and excitement, savoring the new, the offbeat and the .. Makers are practical people who have constructive skills and value self sufficiency. They live within a traditional context of family, practical work and physical recreation and have little interest in what lies outside that context.

Actualizers/Innovation are successful, sophisticated active, take charge people with high self esteem and abundant resources. They are interested in growth and seek to develop, explore and express themselves in a variety of ways. Strugglers/Survivors Their lives are constricted. They are poor with limited education and skills, without strong social bonds, frequently elderly and concerned about their health they are often resigned and passive. Action Oriented These individual desire social or physical activity, variety and risk taking. Fulfields and believers: Principle oriented Fulfields are mature, satisfied, comfortable, reflective people who value order, knowledge and responsibility. They are well educated and are in professional occupation. Believers are conservative, conventional people with concrete beliefs based on tradition established codes: family, community, church & the nation. Achievers & strivers: Status oriented Achievers they are successful career and work oriented people who like to and generally do, feel in control of their lives. They value consensus, predictability and stability over risk, intimacy and self discovery. Strivers they seek motivation, self definition and approval from the world around them.

They are striving to find a secure place in life. They are concerned about opinion and approval of others, environmental factors affecting consumers. They are of two types: 1. Internal variables They comprise of factors that are present within the consumers. They differ with individuals. They include: Motivation Perceptions Learning Beliefs Values Customer & attitude Personality 2. External variables: They are present outside the customer and influences his buying behaviour. They include: Consumer culture Social factors Reference grp Family & roles Status

Decision-Making Process A decision is the selection of an action from two or more alternative choices. Buying Roles: 1. Initiator A person who first suggests the idea of buying the part/service. 2. Influencer A person whose view/advice infevers the decision. 3. Decider A person who decides on any component of a buying decision where to buy, how to buy etc. 4. Buyer The person who makes the actual purchase. 5. User A person who consumes/uses the pelt/service. Buying Behaviour Consumer decision-making varies with the type of buying decision. Atypes of consumer behavior has been identified based on the degree of involvement and the degree of differences amongst the brands.

High Involvement Complex Buying Behaviour (expensive, bought infrequently, risky, highly self expressive e.g. car, laptop, house)

Low Involvement Variety seeking buying behaviours (e.g. cookies, dominated by)

Significant difference between brands

Few differences between brands

Dissonance reducing Buying Behaviour e.g. carpet (First acted, then acquired new beliefs, then set of attitude)

Habitual buying Behaviour (e.g. salt) (brand familarity leads to purchase)

Levels of Consumer Decision-Making (i) Extensive Problem Solving When consumers have no established criteria for evaluating a pelt category or specific brands in that category or have not narrowed the no.. Of brands they will consider to a small manageable subset, their decision-making efforts can be classified as extensive problem solving. (ii) Limited Problem Solving At this level of problem solving, consumers already have established the basic criteria for evaluating the pelt category and the various brands in the category. However they have not fully established preferences concerning a select group of brands. (iii) Routinized Response Behaviour At this level consumers have experience with the pelt category and a well established set of criteria with which to evaluate the brands they are considering. In some situations they may search for a small amt. of additional information in others they simply review what they already know. Models of consumers: Four views of Consumer Decision Making: (i) An Economic View In this the consumer has been characterized as making rational decisions. (ii) A Passive View Opposite to rational economic view of consumers is the passive view that depicts the consumer as basically not submissive to the self servicing interests and promotional efforts of marketer.

(iii) A Cognitive View It potrays the consumer as thinking problem solver. This model focuses on the process by which consumers seek and evaluate information about selected brands and retail outlet. (iv) An Emotional View Consumer can be a emotional or impulsive buyer and is likely to associate deep feelings or emotions as joy, fear, love, hope, fantasy with certain purchases/possessions.

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchase Behaviour

Five Stage Model of Consumer Buying Behaviour

Firms Marketing

External Influence

Input

Efforts Product Promotion Price Channel of .

Socio-cultural Env. Family

Informal Sources Non comm. sources Social class Subculture/culture

Consumer Decision-Making Need Recognition Process

Prepurchase search Evaluation of Alternatives

Psychological Field Motivation

Perception Learning Personality Attitude

Experience Post-purchase behaviour Purchase Trial Repeat purchase Output Post-purchase evaluation Model consumer decision making of

CULTURAL SOCIAL Culture Reference Group Subculture Family Social class Roles & Statuses PERSONAL Age & life cycle stage Occupation Lifestyle Personality & self concept Economic circumstances PSYCHOLOGICAL Motivation Perception Learning Beliefs & Attitudes BUYER

Factors Influencing Consumer Behaviour

An Overview of Problem Recognition How consumers fell about the product Existing consumer position Process & factors of problem recognition His expectations from the composition of a new product Desired consumer position

Contributed by Stock out Dissatisfaction with present stock

Perceived gap/ Discripancy tension (Threshold level problem) Problem recognition Recognition of new need situation

Enhancement in funds Marketing efforts

Every gap does not cross the threshold level. Marketers Generation of new wants increase the gap and increase Availability of new pelt offering the tension level so that purchase can be made. Changing environmental circumstances

Types of Problem Recognition Immediacy of Solution

Expectancy of Problem Occurance of Problem Expected Occurance of Problem unexpected

Immediate Solution Required Routine

Immediate Solution not Required Planning

Emerging

Evolving

Information sources for a purchase decision Information sources

Internal Information

External Information

Actively Acquired

Passively Acquired

Actively Acquired

Past Searches

Personal experience

Low involvement learning

Independent Groups Magazines, consumer groups and govt. agencies

Personal contacts Friends/Family

Marketer Information

Experimental

Sales person website (Pdt inspection/ advt. pdt trial)

All Brands

Known Brands

Unknown brands (1)

Evolved set Acceptable Brands

Inept set Unacceptable Brands (2)

Inert set Indifferent Brands (3) Over-looked Brands (4)

Purchased Brands (4)

Not Purchased Brand (5)

All Brands

Known Brands

Unknown brands (1)

Evolved set Acceptable Brands

Inept set Unacceptable Brands (2)

Inert set Indifferent Brands (3) Over-looked Brands (4)

Purchased Brands

Not Purchased Brand (5)

How Consumer Use or Dispose of Products Rent it Lend it Give it Product Get rid of it permanent Trade it Sell it Throw it away Use it to serve original purpose Keep it Convert it to serve new purpose Store it Rent it Lend it Direct to consumer Through middleman To intermediary

Get rid of it temporarily

Product value Services value Personal value Image value Monetary cost Time cost Energy cost Psychic cost Total Customer cost Total Customer value

Customer Delivered Value

Models of Consumers Three views of consumer decision making: The term models of consumers refer to a general view/perspective as to how (and why) individuals behave as they do. (i) Economic view (ii) Passive view (iii) Cognitive view