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‡ Psychology
‡ Sociology
‡ Anthropology
‡ Marketing
‡ Economics

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‡ Because no longer can we take the
customer/consumer for granted.
‡ The more successful a firm has been in the
past, the more likely is it to fail in the future.
‡ Because people tend to repeat behavior for
which they have been rewarded.
‡ Marketing can¶t be standardised
G Because cross - cultural styles, habits, tastes,
prevents such standardisation
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‡ Consumer Behavior
G Buying behavior of individuals and
households that buy products for
personal consumption.
‡ Consumer Market
G All individuals/households who buy
products for personal consumption.

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‡ Marketing mix
‡ Marketing environment
‡ Buyer characteristics
‡ Buyer decision process
‡ Buyer decision

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‡ |   ‡ Culture
‡  ‡ Subculture
‡
   ‡ Social Class
‡ 

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‡ Mature Consumers
G Consumers aged 50+ is growing rapidly.
G Mature consumers control 50% of all
discretionary income.
G Attractive market for travel, restaurant,
and cosmetics products, among others.

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-   ‡ Groups
G Membership
‡ |   G Reference
    
‡  G åpinion leaders
÷ 
 
‡
   ‡ Family
‡  G Children can influence
‡ Roles and Status
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-   ‡ Age and life cycle
‡ åccupation
‡ |   ‡ Economic situation
‡ Lifestyle
‡  G Activities, interests, and
opinions
‡
   G Lifestyle segmentation
‡ Personality and self-
self-
‡  concept
G Brand personality

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÷
  
 


‡ Sincerity ‡ Excitement
‡ Ruggedness ‡ Competence
‡ Sophistication

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-   ‡ Motivation
G Xeeds provide motives for
consumer behavior
G Motivation research
‡ |   G Maslow¶s hierarchy of needs
‡ Perception
‡  G Selective attention, selective
distortion, selective retention
‡
   ‡ Learning
G Drives, stimuli, cues,
‡  responses and reinforcement
‡ Beliefs and attitudes

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Self--actualization
Self
Esteem Xeeds
Social Xeeds
Safety Xeeds
Physiological Xeeds

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 Ë 







  High Low

Significant |  


 


 
Differences 
 
 

 

Few

  
  


Differences 
  



 

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‡ Complex buying behavior is where the
individual purchases a high value brand and
seeks a lot of information before the purchase
is made
made..

‡ Habitual buying behavior is where the individual


buys a product out of habit e.g. a daily
newspaper, sugar or salt
salt..

‡ Variety seeking buying behavior is where the


individual likes to shop around and experiment
with different products
products.. So an individual may shop around
for different breakfast cereals because he/she wants variety in the
mornings! u 
‡ Dissonance reducing buying behavior is
when buyer are highly involved with the
purchase of the product, because the
purchase is expensive or infrequent
infrequent..
There is little difference between existing
brands..
brands
An example would be buying a diamond ring
ring.. There is
perceived little difference between existing diamond
brand manufacturers
manufacturers..

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G Xeed recognition
G Information search
G Evaluation of alternatives
G Purchase decision
G Post
Post--purchase behavior
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  ‡ Xeeds can be
  triggered by:
‡ X


  G Internal stimuli
‡ Ë  
 X

 


‡   
 
 
 



‡ 

 
G External stimuli
‡   







 


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  ‡ Consumers exhibit
heightened attention or
  actively search for
‡ X


 
information.
‡ Ë  

‡   
 
‡ Sources of information:
G Personal
‡ 

 
G Commercial
‡   

 G Public
G Experiential
‡ Word
Word--of
of--mouth
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  ‡ Evaluation procedure
depends on the consumer
  and the buying situation.
‡ X


 
‡ Most buyers evaluate
‡ Ë  

multiple attributes, each of
‡   
 
which is weighted
‡ 

  differently.
‡   

 ‡ At the end of the evaluation
stage, purchase intentions
are formed.

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  ‡ Two factors intercede
  between purchase
‡ X


  intentions and the
‡ Ë  
 actual decision:
‡   
 
G Attitudes of others
‡ 

  G Unexpected
‡   

 situational factors

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  ‡ Satisfaction is important:
G Delighted consumers
  engage in positive word-
word-
‡ X


  of
of--mouth.
‡ Ë  
 G Unhappy customers tell
other people.
‡   
 
G It costs more to attract a
‡ 

  new customer than it does
to retain an existing
‡   

 customer.
‡ Cognitive dissonance is
common
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2. Initiator 2. Gatekeeper 3. Influencer

‡ Xeed ‡ Information ‡ Evaluation


recognition search of
alternatives

4. Decision 5. Buyer 6. User


maker

‡ Decision to ‡ Purchaser ‡ Consumption


buy & evaluation

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‡ Xew Products
G Goods, service or idea that is
perceived by customers as new.
‡ Stages in the Adoption Process
G Marketers should help consumers
move through these stages.
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# ! 
 
  
 
‡ Awareness
‡ Interest
‡ Evaluation
‡ Trial
‡ Adoption
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# ! 
   

‡ Relative Advantage ‡ Complexity


‡ Compatibility ‡ Divisibility
‡ Communicability

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‡ Product Choice
‡ Brand Choice
‡ Dealer Choice
‡ Purchase Timing
‡ Purchase Amount

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EXVIRåXMEXTAL BUYER'S BLACK Bå
FACTåRS Buyer¶s Mind)
BUYER'S
Buyer RESPåXSE
Marketing Environmenta Decision
Characteristic
Stimuli l Stimuli Process
s
Problem Product
recognition
choice
Information
Economic Attitudes search Brand choice
Product Technological Motivation
Price Political Perceptions Alternative Dealer choice
Place Cultural Personality evaluation
Promotion Demographic Lifestyle Purchase
Xatural Knowledge Purchase timing
decision

Post-purchase Purchase
behavior amount
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‡ Stimulus Response Model
G Marketing and other stimuli enter the
buyer¶s ³black box´ and produce
certain choice/purchase responses.
G Marketers must figure out what is
inside of the buyer¶s ³black box´ and
how stimuli are changed to
responses.
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‡ Initiator - The person who determines that
some need or want is not being met.
‡ Influencer - The person who intentionally or
unintentionally influences the decision to buy
the actual purchase and/or use of product or
service.
‡ Buyer - The person who actually makes the
purchase.
‡ User - The person who actually uses or
consumes the product or service.
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‡ Analyze market opportunity
G Study of consumer behavior helps in
identifying needs and wants which are
unfulfilled
‡ Selecting the target market
G The study of the consumer trends would
reveal distinct groups of consumers with
very distinct needs and wants.

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‡ Determining the product mix
G Having identified the unfulfilled need
slot and having modified the product
to suit differing consumer tastes, the
marketer now has to determine the
right mix of product, price promotion
and advertising.

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‡ Demographic variables help marketers
"locate" their target market.

‡ Psychographic variables provide the


marketer with more insight about the
segment.
‡ Lifestyle analysis adds a great amount
of understanding to a typical
demographic description.
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‡ *     
     
‡ *    
   

  
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‡ Culture & society
‡ Group & individual expectations
and values
‡ Lifestyle patterns
‡ Purchase decisions
‡ Market reaction of consumers
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‡ What are activities? Activities indicate


how a consumer/family spends his/her/their
time.
‡ What are interests? Interests are a
family's or consumer's preferences or
priorities.
‡ What are opinions? åpinions are how a
consumer feels about a wide variety of
events and things.
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