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Definition
Consumer Behaviour can be defined as processes a person goes through when purchasing and using Products and Services, including Mental and Social processes that precede and follow these actions
C.B. encompasses the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. It is a study of the decisions of individuals, groups and organizations to spend available resources on consumption related items
What kind of Consumers buy PC for home use? What features do they look for? What benefits do they seek? What type of programmes do they use? For what reasons? The answers to these questions can be vital inputs for PC manufacturers
The relevance of CB in Government decisionmaking has become evident It is government policy which provides services to the public and designs legislation to safeguard their interests
Roles of a Consumer
User
Consumer Research
Consumer Research
Consumer Research is the systematic collection and analysis of consumer information for the purpose of important decision making in marketing
Consumer Research
Consumer Research plays an important role in marketing process, helps in consumer measurement, market potential, sales forecast, each element like product mix, distribution mix, price effectiveness of an advertisement campaign or consumer acceptance of a product
Consumer Research
Consumer Research and Analysis
Types of Data
Primary Data Data collected first hand either by the researcher or by someone else especially for the purpose of study is known as primary data
Types of Data
Secondary Data
Data which has been collected earlier for
some other purpose by some other
Observation Method
It is a method of collecting past and current data by recording observation The advantage of this approach is that it can be used to collect the data even when the consumer is hostile or unwilling to share the data The data can be collected as it occurs and in its natural environment
Observation Method
It is possible to record the information, which most respondents would have ignored It is less demanding as it doesnt include development of a questionnaire and involves less bias The disadvantage is that it is a slow and relatively expensive process. The researcher should also have interpretation skills and hence should be used with care and understanding
Survey Research
A Survey Research is a Communication approach, which involves questioning respondents and recording their responses It is the most versatile approach for the collection of abstract information of all types It offers an economical and efficient means of learning opinions and attitudes, intentions and expectations of respondents Interpretation of question by the respondent can greatly vary the responses
Consumer Segmentation
Market Segmentation
Definition Market Segmentation can be defined as the process of dividing the potential market into distinct subsets of the consumer with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix
Market Segmentation
Market Segmentation aims at dividing the market into distinct subsets of consumers with homogenous needs or characteristics and selecting one or more segments to target them with a unique marketing mix
Market Segmentation
Companies employing market segmentation rely heavily on consumer research to locate appropriate target markets and approach them effectively
MARKET
COMPANY MARKETING MIX 1 COMPANY MARKETING MIX 2 COMPANY MARKETING MIX 3 B. DIFFERENTIAL MARKETING
GEOGRAPHIC SEGMENTATION
Markets are divided into different geographic units such as nations, states, regions, cities or neighbourhoods The idea behind such segmentation is that people who live in the same area have similar needs and wants E.g. In toothpaste category powder form is sold in rural area, whereas tubes are preferred by urban citizens
DEMOGRAPHIC SEGMENTATION
Demographic characteristics such as age, sex, martial status, income, occupation and education are most often used as a basis of segmentation
Demographic segmentation is the most accessible and cost- effective way to identify a target market
Consumer wants, preferences and usage rates are often highly associated with demographic variables.
E.g. Educated consumers are more likely to be conscious in the product, brand and store choices. They are also more alert of the quality, packaging and advertising messages. Affluent class are more likely to buy premium products and products of high quality
E.g.
Using demographic studies one can predict that consumers whose monthly income is approx. Rs. 20,000 are likely to purchase a two-wheeler but cannot predict which brand
Demographic studies can determine the percentage of people likely to seek insurance cover, but cannot predict which insurance provider will they approach
It is one of the newest and promising approaches to selecting target markets Lifestyle is viewed as a unique pattern of living that influences and is reflected by ones consumption behaviour Psychographics may be viewed as the method of defining lifestyle in measurable terms
Psychography 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 clusters of product
BEHAVIOUAL SEGMENTATION
USAGE SEGMENTATION
Users can be segmented as those who buy frequently versus those who buy occasionally (either brand or product) or into those users who usually loyal to one brand versus who switch brands
SITUATION SEGMENTATION
LOYALTY SEGMENTATION
customers