CONSUMER BEHAVIOUR

AN OVERVIEW

What factors motivate an individual to buy? What sources of information are used in evaluating competing products? What is the relative importance attached by decision makers to each of a products attributes? What is the set of competing products from which consumers make their final choice? Who is involved in making the purchase decision? How long the does the process of making a decision take?

DEFINING CONSUMER BEHAVIOUR

Process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods/ services How consumers make decisions to spend their available resources like time, money, and effort on consumption Begins before the purchase and extends beyond the purchase

WHY STUDY CONSUMER BEHAVIOUR?

To understand markets/ customers and develop strategies Recognition of consumer needs An integral part of holistic marketing

WHY DO PEOPLE BUY?: CONSUMER BUYING MOTIVES

HOW DO CONSUMERS BUY?: BUYING ROLES

TYPES OF BUYING BEHAVIOUR

High Involvement Significant differences between brands Low Involvement

Complex Buying Behavior

VarietySeeking Behavior

Few differences between brands

DissonanceReducing Buying Behavior

Habitual Buying Behavior

SIMPLE MODEL OF CONSUMER BEHAVIOUR

Marketing and Other Stimuli Marketing and Other Stimuli

Buyers Black Box Buyers Black Box

Buyers Response Buyers Response

FACTORS INFLUENCING CONSUMER BEHAVIOUR

Cultural Cultural Social Social

Family Family Personal Personal Lifestyle Lifestyle Psychology Psychology

FACTORS INFLUENCING CONSUMER BEHAVIOUR: CULTURAL

FACTORS INFLUENCING CONSUMER BEHAVIOUR: CULTURAL

Social classes
Differ in speech patterns, recreational preferences etc. Persons are perceived as occupying inferior/ superior positions, as per the social class they belong to Social class is indicated by a cluster of variables: income, occupation, wealth, education etc. Individuals can move up or down the social ladder during their lifetime Distinct product and brand preferences

FACTORS INFLUENCING CONSUMER BEHAVIOUR: CULTURAL

meters

Consumer Segment classification based on Income levels

Deprived Income p.a. (Indian rupees less than 90,000

Aspirers 90,000200,000

Seekers 200,000500,000

Strikers 500,0001,000,000

Wealthy 1,000,000+

Key characteristic

Can barely meet their basic needs

Struggle to live comfortably

Seek to have a good living standard

Have a good living standard

Enjoy a high standard of living

What they look for in a product/ service (Purchase Decision Factors) Price Variety Convenience Quality Value for Money Yes No No No Yes Yes No No No Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes No Yes Yes Yes No

Brand value

No

No

No Factor Elasticity

Yes

Yes

Price Variety Convenience Quality

Very High Low Low Low

High Low Low Low

High Medium Medium

Medium High High

Low Very High Very High

FACTORS INFLUENCING CONSUMER BEHAVIOUR: CULTURAL

FACTORS INFLUENCING CONSUMER BEHAVIOUR: CULTURAL

Education of Chief wage earner

Type of House Pucca Semi- pucca Kutcha

Illiterate Self- learning/ No school Upto class 4 Upto class 9 HSC/ SSC College Graduation/ PGGeneral Graduation/ PGProfessional

R4 R3 R3 R3 R2 R1 R1 R1

R4 R4 R3 R3 R3 R2 R2 R2

R4 R4 R4 R4 R3 R3 R3 R3

FACTORS INFLUENCING CONSUMER BEHAVIOUR: SOCIAL

FACTORS INFLUENCING CONSUMER BEHAVIOUR: SOCIAL (FAMILY LIFE CYCLE)

Singles Single housewife < 35 years old Single housewife 35-54 years old Single housewife > 54 years old Household with children < 18 years old Household with oldest child 0-5 years old Household with oldest child 6-12 years old Household with oldest child 13-17 years old Household with youngest child 0-5 years old Household with youngest child 6-12 years old Household with youngest child 13-17 years old Household with no children < 18 years old 2+ persons / no children, housewife < 35 years old 2+ persons / no children, housewife 35-54 years old 2+ persons / no children, housewife > 54 years old

FACTORS INFLUENCING CONSUMER BEHAVIOUR: SOCIAL (TIME- MONEY LIFE CYCLE)

FACTORS INFLUENCING CONSUMER BEHAVIOUR: PERSONAL

FACTORS INFLUENCING CONSUMER BEHAVIOUR: LIFESTYLE

FACTORS INFLUENCING CONSUMER BEHAVIOUR: PSYCHOLOGY

THE MODEL CONSUMER BUYING PROCESS

Problem recognition

Information search

Evaluation of alternatives Purchase decision Post-purchase behavior

THE MODEL: CONSUMER BUYING PROCESS

THE MODEL: CONSUMER BUYING PROCESS

THE MODEL: CONSUMER BUYING PROCESS

Total Set Awareness Set

Consideration Set

Choice Set

Decision

Concept of Market Partitioning

THE MODEL: CONSUMER BUYING PROCESS

THE MODEL: CONSUMER BUYING PROCESS

THE MODEL: CONSUMER BUYING PROCESS

THE MODEL: CONSUMER BUYING PROCESS(DISPOSAL)

Get rid of it temporarily

Rent it Loan it

Give it away Trade it

To be (re)sold To be used Direct to consumer

Product

Get rid of it permanently

Use for original purpose Convert to new purpose Store it

Sell it Throw it away

Keep it

Through middleman

To intermediary