Consumer Behavior

Why people buy? How? When?

Consumers are people who buy or use products Customers are specific kinds of people who patronize brands Markets could be business or individuals Purchasers are those who buy Users are those who use / consume

Marketer / Advertisersimportant clues

Understand

Predict

Influence

The process individuals and groups go through to select, purchase, or use goods, services, ideas, or experiences Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions Complex process by which individuals acquire use and dispose of products or services to satisfy their needs and wants

Problem Recognition
Information Search Alternative Evaluation Product Choice Post purchase Evaluation

Occurs whenever a consumer recognizes a difference between the current state and the ideal or desired state Internal cues - consumers recognize state of discomfort External cues - marketers may stimulate consumers to recognize problem

Consumer checks memory and surveys environment to identify what options are available Sources might include personal experience and knowledge, friends, advertising, web sites, and magazines.

Identify consideration set Narrow list and compare pros and cons Use evaluative criteria to decide among remaining choices

Actual act of buying packaging , instore decisions, pull strategies Transacting

How good a choice was it? Customer satisfaction/dissatisfaction buyers remorse Ultimately affects future decisions and word of mouth communication

High Involvement Process

Low involvement process

chological Influences:

Decision Process

Personal Influenc

Innovation Brand Product Price Placement Promotion Packaging People

His Product Brand Presence Marketing Mix Relevance Difference Similarities

Demographic age, gender income, race, economic status, educational levels, occupation, geography, location

Factors within a particualr time location Group buying Time Reason Emotion

Culture and Subcultures Norms Values- 9 core values Social Class Group Behavior and Reference Groups Opinion Leaders

Belonging Excitement Fun n enjoyment Warm relations Self fulfilment Respect Accomplishment Security Self respect

Culture is the values, beliefs, customs, and tastes produced and valued by a group of people A subculture is a group coexisting with other groups in a larger culture whose members share a distinctive set of beliefs or characteristics

Cultural Influences
Culture: values, beliefs, perceptions, preferences,

and tastes handed down from one generation to the next. Indian Culture: Children feel the responsibility of taking care of aged parents. A father owning the responsibility of getting his Daughter married in a well to do family.

Core Values in the Culture

While some cultural values change over time,

basic core values do not Examples of core values include:

Importance of family and home life The way of dressing Working habits

Social class is the overall rank of people in a society People in the same class tend to have similar occupations, similar income levels, share common tastes in clothes, decorating styles, and leisure activities. They may share political and religious beliefs.

A reference group is a set of people a consumer wants to please or imitate The group can be composed of one person, a few people, or many people. They may be people you know or dont know

 Reference Groups
Membership Group ( primary, secondary) Aspiration Group (like to belong) Dissociative Group (like not to belong)

A person who influences others attitudes or behaviors because they are perceived as possessing expertise about the product

Opinion Leaders

Opinion leaders are individuals who exert direct or indirect social influence over others.

Opinion leaders: trendsetters who purchase new products before others in a group and then influence others in their purchases

Pierce Brosnan and Anna Kournikova

celebrity spokespersons?

Word of Mouth

Word of mouth is the influencing of people during conversations.

Perception Needs, Wants Motivation Learning Attitudes Lifestyle

Process by which people select, organize, and interpret information Affected by state of mind, physical factors & emotions Selective Perception Selective Exposure Selective Distortion Selective Retention Cognitive Dissonance

An internal state that drives us to satisfy needs Once we activate a need, a state of tension exists that drives the consumer to some goal that will reduce this tension and eliminate the need Consequently, only unmet needs motivate

Need is the driving force- Primary needs and Secondary needs Want is what we desire

SelfActualization
Ego Needs Belongingness Safety Physiological

A change in behavior caused by information or experience Behavior learning theories assume learning takes place as the result of connections formed between events Cognitive learning occurs when consumers make a connection between ideas or by observing things in their environment

A lasting evaluation of a person, object, or issue 3 components of attitudes

affect cognition Behavior Favourable - Unfavourable

The set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment
Innovativeness Self-confidence Sociability

Related to age groups, our purchases also depend on our current position in the family life cycle
stages through which family members pass as

they grow older

Pattern of living that determines how people choose to spend their time, money, energy and reflects their values, tastes, and preferences Expressed through preferences for sports activities, music interests, and political opinions Psychographics is the segmentation tool used to group consumers according to AIOs

Need Recognition Information Search

Evaluation of Alternatives
Purchase Decision Postpurchase Behavior