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CONSUMER BEHAVIOUR

What Is Consumer Behavior?

Activities people undertake when obtaining, consuming, and disposing of products and services

Consumer Influences

Organizational Influences

Obtaining

Consuming
Consumer Behavior

Disposing

Consumer Influences
Culture CULTURAL Subculture
Groups
Membership Social Class Reference Aspirational groups Opinion leaders Age & life-cycle

Organizational Influences
Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability

SOCIAL

PERSONAL

Family Occupation Roles and Economic Status situation


Lifestyle Motivation Personality & Perception self-concept

PSYCHOLOGICAL

Learning Beliefs and attitudes

Obtaining
How you decide you want to buy

Consuming
How you use the product How you store the product in your home Who uses the product How much you consume

Disposing
How you get rid of remaining product How much you throw away after use

Other products you consider buying


Where you buy How you pay for product

How you transport product home

How product compares with expectations

If you resell items yourself or through a consignment store


How you recycle some products

Overall Model of Consumer Behavior


External Influences Culture Subculture Demographics Social status Reference groups Family Marketing Activities Internal Influences Perception Learning Memory Motives Personality Emotions Attitudes Decision Processes

Problem Recognition
Information Search Self-Concept & Learning Alt Eval & Selection Outlet select & Purchase

Post-purchase Processes

What Is Consumer Behavior?


Activities people undertake when obtaining, consuming, and disposing of products and services A field of study consumer activities that focuses on

Scope goes beyond just why and how people buy to include Consumption Analysis

Questions???

Maslows Hierarchy

Perception

Process by which an individual selects, organizes, and interprets information to form a cohesive picture about an entity Perceptions affect consumer behavior

However, remember that individuals can perceive the same entity in different ways

Perception

Selective Attention: Receive some messages and


screen out the rest

An average person is exposed to 1500 ads or brand messages a day Most of these are screened out; So, how do marketers capture mind space?

People are more likely to notice stimuli that relate to current needs People are more likely to notice stimuli they anticipate People are more likely to notice stimuli that deviate relatively larger than others

Marketers must bypass attention filters; provide unexpected stimuli (salesperson, sudden offers)

Perception

Selective Distortion: Tendency to interpret / distort information to be consistent with prior brand and product beliefs

Taste tests: Blind taste tests showed equal split; Open tests showed preferences Can work to the advantage of marketers of strong brands

A car may seem to drive smoother A beer may taste better

Perception

Selective Retention: Though people fail to register much information, they retain information that supports their attitudes and beliefs

Remember good points about products we like and forget good points about competing products Works to the advantage of strong brands Explains why marketers repeat messages for reinforcement

CULTURE AND SUBCULTURE

CULTURE
The sum total of learned beliefs,values,and customs that serve to direct the consumer behavior of members of a particular society.

Characteristics of culture

Culture is a learned response. Culture includes inculcated values. Culture is a social phenomenon. Culture is gratifying and continues for a long time. Cultures are similar and yet different. Culture prescribes the ideal standards of behavior.

Culture & consumer behavior

Culture is learned:
Culture I learned at childhood itself from the social environment. Often we are children play and enact the real life situation of social & culture ritual.

Three distinct forms of culture learning.

Formal learning: what the elder family member


teach the younger one how to behave.

Cont...

Informal learning: what the child learns primarily by


imitating the behavior of selected others such as family, friend, or TV heroes.

Technical learning: In which teacher instruct the


child in an educational environment about what should be done, how it should be done, and why it should be done.

Culture Is Learned Issues

Enculturation: the learning of ones own culture.

Acculturation: The learning of a new or foreign culture.

Language and symbols: Marketers must choose


appropriate symbols in advertising.

Ritual:

A ritual is a type of symbolic activity consisting

of a series of steps (multiple behavior) occurring in a fixed sequence and repeated over time. Rituals extend over the human life cycle Marketers realize that rituals often involve products.

Culture & consumer behavior

Sharing of culture: Culture is transferred


through family, schools, houses of worship, and media

Culture is dynamic:
Change occur due to Technology, Migration, Population shift, Resource shortages, wars, Changing values etc. Also known as TREND . ( Ex, Fashion, Automobile, Foods, Entertainment, Lifestyles, women work outside the home are few Hot object to study.

Diversity by Indian Railways

Indian village by Amul

Emerging Culture

Ritual & Tradition

Indian Core Values


Family orientation Saving orientation Festivities Shopping as a ritual Mythology Food Habits

Changing cultural trends in Indian urban markets

Achievement orientation Work Ethic Material Success Middle of the road approach to tradition Impulse Gratification Use of hi-tech products

SUBCULTURE

Sub-culture is defined as a distinct cultural group

that exists as an identifiable segment within a larger, more complex society. Ex. Nationality, social class, Religion, Language, Age, Gender.

Examples of Major Sub-cultural Categories

CATEGORIES Nationality Religion Geographic region


Race Age Gender Occupation Social class

EXAMPLES Greek, Italian, Russian Catholic, Hindu, Mormon Eastern, Southern, Southwestern
African American, Asian, Caucasian Teenagers, Xers, elderly Female, male Bus driver, cook, scientist Lower, middle, upper