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His attitude, behavior, needs and reactions play an important role in regard to marketing plans and policies of companies. Companies study the behaviours of consumers constantly for their benefits. Consumer behavior is comparatively new area within the scope of business management. The purpose of study of consumer behavior is to understand human actions and reactions (consumer behaviour) in the best possible manner.
2) Consumer
behaviour refer to the study of how individuals makes decisions in spending their available resources like time, money and effort on various consumption related items. 3) Kotler & Armstrong : Consumer buying behaviour refer to the buying behaviour of consumer individual household who buy goods and service for personal consumption
Buyer behaviour is all psychological, social and physical behaviour of potential customers as they become aware of, evaluate, purchase, consume and
Webster
people undertake when obtaining, consuming and disposing of product and service Consumer behaviour: Identify the three element of consumer behaviour: A)Obtaining product & service: Obtaining refer to the activities leading up to and including the purchase of product. B) Consuming product and services: Consuming activity refer to how, where, when, and under what circumstances consumer use product C) Disposing product and services: Disposing activities refer to how consumer get rid of product and packaging after consumer the product
Consumer behaviour refer to the study of how individuals makes decisions in spending their available resources like time, money and effort on various consumption related items.
Who buy product or services How do they buy product or service? Where do they buy them? How often do they buy them When do they buy them? Why do they buy them? How often do they use them?
determining the form, style, packing ,brand ,trademark etc of the product Consumer behaviour also help to formulate various marketing policies To understand consumer behaviour one can know the various consumption related aspects of individuals
on the basis of the knowledge, the psychology of customer develop Attitudes & Emotions: Attitude is a state of mind or feeling. if includes a predisposition to behave in some way Intentions : Intention means desires to do something Buying Motives: It is the integral state which direct the behaviour of a person.
Types of Buyers
Friendly/co-operative buyer. Timid/reserved/shy buyer. Silent buyer. Undecided buyer. Price or quality conscious buyer. 6. Argumentative buyer. 7. Suspicious buyer.
1. 2. 3. 4. 5.
Impatient buyer. Bargain buyer. Impulsive buyer. Over-cautiosu buyer. Slow-thinking buyer Rude/ill-mannered buyer. 14. Clever/intelligent buyer.
8. 9. 10. 11. 12. 13.
Evaluation of alternatives
Purchase decision
Post-purchase Behaviour
highly involved in the purchase and there are significant different among brand, they show this type of behaviour Dissonance reducing behaviour: The customer is highly involved because the product is expensive and risky. there are very little difference among brands so the customer is confused and wants to collect a lot information. After the purchase the customer might develop dissonance because of dissatisfying feature of the purchased product
low involvement because the product is not expensive and purchased frequently Habitual buying behaviour: customer has low involvement and absence of significant brand different .
Theories of personality
Trait theory
Freudian psychonalytic theory Jungian theory
enduring attribute of a person that appears constantly in a variable of situation Individual can be describes in term of construction of traits such as affiliation,achievement,anxiety,aggression and dependency Trait distinguishes one personality from another.
Freudian psychoanalytic: psychoanalytic theory is based on the notion that man is motivated more by unforeseen forces than he is controlled by conscious rational thought Element: 1)Pre-conscious element 2) Conscious element(feeling,belief,desier) 3) Unconscious(ideas,wishes,dreams)
patterns borrowed by the individual from his ancestors Sensing intuiting Thinking feeling Extroversion Introversion Judging perceiving Socio psychological: according to this, the individual and society are interlinked
Self concept
Self concept can be described simply as how one perceives
himself and his behaviour in the market place Self- concept divided into six types as: Actual Self: How a person actually perceives himself Ideal Self: This is concerned with how an individual would like to ideally perceive himself Expected Self: This kind of image is between actual and selfimage Social self : How a person thinks other perceive him Ideal social self: How a person would like other to perceive him Situational Self: A person self image in a specific situation
Perception
Perception is the process through which the
information from outside environment is selected, received, organized and interpreted to make it meaningful information results in decisions and actions Perception is define as the process by which an individual select, organize and interpret stimuli into a meaningful and coherent picture of the world
because of these perceptual processes Selective attention Selective distortion Selective retention
daily stimuli in the form of advertisement but a person cannot possibly give attention to all the advertisements Selective Distortion: It describes the tendency of people to twist information into personal meaning Selective Retention: people tend to retain information that supports their attitudes and beliefs
Consumer attitude
Attitude have usually been associated with the notion
of liking or disliking something Attitude can be define as a learned orientation or disposition ,towards an object or situation ,which provides a tendency to respond favourably or unfavourably to the object or situation
Characteristics of Attitude
Attitude are not innate Appearance of an attitude is
dependent on learning Attitude cannot be observed Attitude are not temporary states but are more less enduring once they are formed Attitude always imply a relationship between the person and objects Marketer are concerned with understanding attitude
Attitude Formation
Attitude formation is learning on attitude There are some sources of influence on attitude formation Personality affects attitude formation
Economic factor Family factor Social factor Political factor Psychological factor Personality factor Reference group factors
Attitude components
Congnitive component(belief)
Affective component(feeling) Conative component( response tendencies)
Attitudes - defined
An attitude may be defined as a learned predisposition to
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Attitude models
Two main attitude models:
Tri-component model Fishbeins multi-attribute model
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 9-27
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three elements:
Affective component
Feelings Based on physiological nervous reactions to an object Beliefs What a person believes to be true about an idea, event, person, activity or object
Cognitive component
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 9-29
Behavioural intentions
selected product attributes or belief Attitude towards object model Attitude towards behaviour model Attitude towards ad model
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Functions of attitudes
Attitudes have 4 main functions:
1. Adjustment function Attitudes help consumers adjust to situations People seek out group acceptance in order to gain praise or rewards and avoid punishment 2. Ego defensive function Attitudes are formed to protect the ego 3. Value expressive function A consumers attitudes are often a reflection of their values 4. Knowledge function Attitudes help consumers make decisions and process and filter information
memory Human learning is directed at acquiring a potential for future adaptive behavior
Consumer psychographic
Psychographics is commonly known as study of
lifestyle of consumers. It plays an important part in consumer behaviour and helps in the promotion of those products and services which are related to items of personal care, fashion, automobiles, telephonic services, etc. in a country like India where lifestyle differs widely from region to region, the study of consumer psychographic is of great significance to the marketer.
etc Attitude people, place, ideas etc Usage rate heavy,medium, light, no users Media pattern the specific media the consumer utilise Activities and interests Hobbies, sport Values Widely held about what is acceptable or desirable
subculture and social class Social factor include reference group,Family, status Personal factor include age occupation,lifestyle
Purchase
Post purchase evaluation
Social factor
Reference group
Family Opinion leader(opinion leadership is the process by
which one person informally influences the action or attitudes of other who may be opinion seeker or merely opinion recipients) Role and status
Culture
Culture is a set of learned belief values,attitudes,
habits and from of behaviour that are shared by a society and are from generation to generation Features : The culture is inculcated into an individual and passed on from generation to generation Cultural values keep on changing through the passage of time The cultural values are shared by the society as whole
Sub cultural
Each cultural contains smaller group of sub cultural
that provides specific identification for its member .the member of s specific sub cultural possess belief ,values and custom that set them apart from other member of the same society
Social class
Social class are relatively homogeneous and ensuring
division in a society that are hierarchically ordered and whose member share similar values ,interest and behaviour ( kotler) Characteristics: Person of two different social classes tend to behave differently Social class is not measured by a single variable but is measured as a weighted function of one occupation ,income ,education ,status
variables as occupation ,income ,wealth and education rather than by any single variable Social class categories Upper class Middle class Lower class
BUYING PROCESS
Wants and Needs
Pre-Purchase Activity Purchase Decision Post-Purchase Evaluation
PRE-PURCHASE ACTIVITY
Relevant information search
External Searches
EXTERNAL SEARCHES
Formal searches Informal searches Internet searches
POST-PURCHASE EVALUATION
After the buyer actually purchases the product, the buyer then evaluates how satisfied he/she is with the product
POST-PURCHASE BEHAVIOR
Satisfied with purchase Disappointed in product Buyer remorse