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CONSUMER BEHAVIOUR

What products and services do we bu ! Wh do we bu ! How o"ten do we bu ! #ro$ where do we bu etc! Are the issues which are dea%t with in the discip%ine o" consu$er behavior!

&E#INA'ION()
Consu$er behavior can be de"ined as these acts o" individua%s *consu$ers+ direct% invo%ved in obtainin,- usin, and disposin, o" econo$ic ,oods and services inc%udin, the decision processes that precede and deter$ine these acts.

IM/OR'ANCE O# CONSUMER BEHAVIOUR #OR MAR0E'ERS


1. Consu$er behavior is he%p"u% in understandin, the purchase behavior and pre"erences o" di""erent consu$ers. As consu$ers we di""er in ter$s o" our se2- a,e- educationinco$e- occupation- "a$i% set)up- re%i,ion- nationa%it - socia% status. 3. 'o success"u%% $ar4et to di""erent $ar4et se,$ents- the $ar4et needs appropriate $ar4etin, strate,ies which we can desi,n on% when he understands the "actors which account "or these di""erences in consu$er behavior and tastes. 5. In toda 6s wor%d o" rapid% chan,in, techno%o, - consu$er tastes are a%so characteri7ed b "ast chan,es. Consu$er behavior provides inva%uab%e c%ues and ,uide%ines "or

$ar4eters on new techno%o,ica% "rontiers which the shou%d e2p%ore. #or e2a$p%e) C'V in %ieu o" B8W 'V 9. Consu$er behavior is a process and purchase "or$s one part o" this process. 'here are various ps cho%o,ica% and environ$enta% "actors which in"%uence this process- to the e2tent that the $ar4eter can understand and $anipu%ate the in"%uencin, "actors- he can predict the behavior o" consu$ers. 'hus the i$portance o" consu$er behavior %ies in the "act that the behavior can be understood and in"%uenced to ensure a positive purchase decision. 'he $ar4etin, $ana,er6s interest %ies e2act% here i.e. to ensure that his $ar4etin, strate, resu%ts in purchase o" the product.

':/ES O# CONSUMERS
A%% consu$ers can be c%assi"ied as /ersona% Or,ani7ationa% A%% individua%s "a%% into the cate,or o" persona% consu$er. A%% business or,ani7ations- ,overn$ent a,encies and bodies- non business or,ani7ations such as hospita%s- te$p%es- and trusts are or,ani7ationa% consu$ers o" ,oods and services purchased "or runnin, the or,ani7ations.

BU:ER VERSUS USER


O"ten the person who purchases the product is not the person who actua%% consu$ers or uses the product. ;uestion < Who shou%d be the sub=ect o" stud in consu$er behavior! Shou%d we stud bu er or consu$er!

Man co$panies p%a sa"e and "ocus their pro$otion at both the user and the bu er. #or e2a$p%e) Ma,,i Nood%es) Mother and Chi%dren

A SIM/>E MO&E> O# CONSUMER BEHAVIOUR


I N / U ' E2terna% In"%uences Mar4etin, Sti$u%i Sti$u%i /roduct Econo$ic /rice )'echno%o,ica% /ro$otion )/o%itica% Channe% o" distribution Consu$er &ecision Ma4in, Bu er Characteristics Bu er &ecision /s cho%o,ica% /ersona% ? )/rocess Cu%tura% characteristics Consu$er &ecisions ? Actions /roduct choice Brand choice &ea%er choice /urchase ti$in, Other )

)Socia%

/roces s

O U ' / U

'

/urchase a$ount

E@AM/>E) AA SIM/>E MO&E> O# CONSUMER BEHAVIOURB


:ou are on our wa Cho$e6 "ro$ wor4 a"ter a hot- %on,- tirin, da . On the wa ou see a hoardin,8 4ios4 "or a co%a drin4 which pro$ises to be coo%- re"reshin, and taste"u%. 'his hoardin,84ios4 provides ou a sti$u%us to stop at the nearest co%d drin4 shop and drin4 a co%a. A%% three brands */epsi- Co4e and 'hu$s Up+ are avai%ab%e at the shop at a certain price. :ou can reca%% so$e association with each o" the three brands "ro$ the advertise$ents. :ou have seen on $edia vi7 '.V.- hoardin,s- newspapers- $a,a7ines. :ou bu a particu%ar brand o" co%a and consu$e. 'he initia% sti$u%us "or this purchase and consu$ption was provided b the hoardin,. 'his was "urther bac4ed)up b other sti$u%i such as product disp%a in the shop- watchin, other consu$ers bu a particu%ar brand- a pop $ateria%- ear%ier satis"action with a ,iven brand etc. :our response to these sti$u%i resu%ts in the purchase o" a particu%ar brand. In between the process o" receivin, these sti$u%i and respondin, to the$- ou went throu,h a decision $a4in, process.

'he sti$u%i- the process o" decision $a4in, and response constitute a si$p%e $ode% o" consu$er behavior.

DETAILED MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR

Cu%tura% Socia% Cu%ture Re"erence Droups /s cho%o,ica% Sub)cu%ture Motivation #a$i% /erception Socia% C%ass >earnin, Ro%e ? Statuses Be%ie"s ? Bu er /ersona%it Attitudes Inco$e >i"est %e sta,e Occupation /ersona% A,e ? >i"e c c%e

MOTIVE When a need is su""icient% pressin,- it directs the person to see4 its satis"action- it is 4nown as $otive. Primary Needs or motives

'hese are ph sio%o,ica% needs which we are born with. #or e2a$p%e) need "or air- water- c%othin, ? she%ter.

Se o!dary Needs 'hese are our acEuired needs- which we have deve%oped in response to the societ ? environ$ent we %ive in. "or e2a$p%e) need "or power- presti,e- estee$- a""ection- %earnin,- status etc.

MASLO"#S HIERARCH$ OF NEEDS


Se%& A t'a%i(atio! Se%& F'%&i%%me!t E)o Needs* Presti)e* Stat's* S' ess* Se%& res+e t

So ia% Needs* A&&e tio!* Frie!ds,i+* Be%o!)i!) et Sa&ety - Se 'rity Needs* Prote tio!* Sta.i%ity et P,ysio%o)i a% Needs Food* /ater* Air* S,e%ter* Se0 et

Same +rod' t1 Ma!y se)me!ts1 e0am+%e1 Bi y %e O!e1 &or omm'!ity Se o!d1 Re reatio!a%2Leis're Need T,ird1 Need o& a ,ea%t, aid

Fo'rt,1 &or o!verti!) i!to ri 3s,a/2 art E0am+%e1 Ge!era%%y o!s'mers te!d to +er eive t,e 4'a%ity o& +er&'mes o! t,e .asis o& /ac4a,e Brand na$e /rice ? Manu"acturer6s i$a,e PERCEPTION It can be described as Ahow we see the wor%d around usB 'he di""erent si,hts- sounds- s$e%%s- tastes ? sensations that we "ee% are 4nown as sti$u%i. Each person reco,ni7es- se%ectsor,ani7es ? interprets these sti$u%i in his own individua% $anner based on his needs- va%ues ? e2pectations and this is 4nown as perception since each individua%6s needs- $otives and e2pectations are uniEue. 'here"ore each individua% perception is uniEue. /erception he%ps to e2p%ain the pheno$enon o" wh di""erent individua%s respond di""erent% to the sa$e sti$u%us under the sa$e condition. As a $ar4etin, $ana,er ou are providin, sti$u%us to our consu$ers throu,h the ph sica% shape- co%or- si7e- "ra,rance- "ee%product taste- pac4a,in,- ads8co$$ercia%s. But we a%% have an in bui%t- screenin, s ste$ which he%ps us to Cse%ect6 ? Creco,ni7e6 on% the re%evant sti$u%i ? i,nore a%% the others. 'here are three aspects o" perception() Se%ective e2posure Se%ective distortion

Se%ective retention

SELECTIVE E5POSURE /eop%e are $ore %i4e% to notice sti$u%i which re%ate to their i$$ediate needs. #or the $ar4eter- the i$p%ication is that he has to care"u%% and accurate% identi" his potentia% custo$ers since other custo$ers are not at a%% %i4e% to notice the sti$u%i havin, identi"ied the potentia% custo$ers- the $ar4eter has to ensure that the sti$u%i are interestin, enou,h to attract and ho%d their attention. SELECTIVE DISTORTION When ou atte$pt to "it in"or$ation to suit our own ideas or persona% $eanin, the process is 4nown as Se%ective &istortion. 'hus a $ar4eter $a "ind that his $essa,e is o"ten not received in the intended $anner but it is twisted in di""erent wa s b di""erent consu$ers. #or e2a$p%e) Washin, $achines */un=ab+- hair d e *,oat) Ra=asthan+- Re"ri,erator *"or storin, ,oods ? services+

SELECTIVE RETENTION /eop%e "or,et $uch o" the sti$u%i which the receive and on% retain that in"or$ation which rein"orces their va%ues and decision. LEARNING New Born) instinctive behavior Adu%t) %earned behavior #or e2a$p%e) housewi"e has need "or cuttin, down coo4in, ti$e) /ressure Coo4er

In"%uencin, sti$u%i) Various advertise$ents /ositive "eedbac4 *"riend+ Window disp%a &iscount She bu s and is satis"ied with its per"or$ance her response to pressure coo4er is rein"orced. Satis"ied housewi"e $a sett%e "or another product o" sa$e co$pan *sa oven+ i.e. ,enera%i7ation o" response. Consu$ers can be $ade to %earn the desired behavior throu,h an interp%a o" $otives- sti$u%i cues- responses and rein"orce$ents. BELIEFS AND ATTITUDES A person6s be%ie") coo4in, oi% C@6 has %owest "at content. Be%ie" based on rea% "acts or notion or opinion) the person has. A be%ie" is a Cdescriptive6 thou,ht that a person has about so$ethin,. 'he be%ie" that the custo$er has about a brand is i$portant. 'here"ore it deter$ine his behavior towards bu in, and usin, the be%ie" constitute the brand i$a,e and i" the custo$er has the wron, be%ie" he is %i4e% to ,enerate ne,ative i$a,e about the brand. 'he $ar4eter $ust ensure that consu$er have a%% re%evant and correct in"or$ation about the brand to "aci%itate "or$ation o" a positive i$a,e.

DETAILED MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR PERSONAL FACTORS

DEMOGRAPHIC FACTORS AND LIFEST$LE STAGE A,e in"%uences and bu er6s decision the need "or di""erent products and services chan,es with a,e. Babies and chi%dren need product %i4e $i%4 powder- bab "oods and to s. :oun, adu%t6s need) c%othes- recreationa% and educationa% "aci%ities- transportation and a host o" other a,e and "ashion re%ated products. 'he "irst "actor in"%uencin, a bu er6s decision is his a,e need "or di""erent products chan,es with a,e. 'here are certain ph sio%o,ica% di""erences between $en and wo$en which resu%t in their havin, di""erent consu$ption needs. #or e2a$p%e() wo$en need certain specia%i7ed $edica% "aci%ities- c%othes and cos$etics. 'heir reEuire$ent is di""erent "ro$ that o" $en. Consu$ption behavior is a%so in"%uenced b the speci"ic sta,e o" the "a$i% %i"e c c%e.

DEMOGRAPHIC FACTORS AND LIFEC$CLE STAGE

STAGE IN LIFE C$CLE


Si!)%e sta)e1 yo'!)* '!married +eo+%e* %ivi!) a/ay &rom ,ome

BU$ING2BEHAVIOUR PATTERN
Fe/ &i!a! ia% .'rde!s6 S+e!d o! re!t* &ood very .asi 3it ,e! e4'i+me!t2&'r!it're stereo systems et Better o&& &i!a! ia%%y !o/* /i&e is 's'a%%y /or3i!)* ,i),est +'r ,ase rate* s+e!d o! &'r!it're* d'ra.%es s' , as re&ri)erator* )as stoves* va atio! et 6 S+e!d ma0im'm o! ,ome +'r ,ases* i!terested i! !e/ +rod' ts* i!&%'e! e .y advertisi!)6 B'y T6V6* .a.y &oods* o'),* medi atio!s* toys et Some /ives ret'r! to /or3* .etter &i!a! ia% +ositio!* .'y %ar)e si(ed +a 3s* ed' atio!* .i y %es* ,o'se +'r ,asi!) Fi!a! ia% +ositio! sti%% .etter* s+e!d o! ed' atio!* .etter

$o'!) ,i%dre! !e/%y married6 No ,i%dre!

F'%% Nest1 7 $o'!)est ,i%d '!der18

F'%% Nest1 9 $o'!)est ,i%d over18

F'%% Nest1 :

O%d married o'+%e /it, de+e!de!t ,i%dre! Em+ty Nest1 7 O%der married o'+%es* !o ,i%dre! at ,ome* ,ave ,ead sti%% /or3i!) Em+ty Nest1 9 O%der married* !o ,i%dre! at ,ome* ,ead retired So%itary s'rvivor "or3i!)

&'r!it're* ars* a++%ia! es et 6 S+e!d o! trave%* re reatio!* ,ea%t, are* se%& im+roveme!t* ,ome im+roveme!t et

Drasti red' tio! i! i! ome* .'y medi a% a++%ia! es* Medi are +rod' ts &or ,ea%t, Li3e%y to se%% ,ome* .'t i! ome sti%% )ood Red' ed i! ome* s+e!d o! medi a% +rod' ts

EDUCATION AND OCCUPATION


Education widens a person6s hori7ons- re"ines his tastes and $a4es his out%oo4 $ore cos$opo%itan. Occupation a%so shapes the consu$ption needs peop%e "o%%owin, specia%i7ed occupations such as) photo,raph - $usic- carpentr etc need specia% too%s and eEuip$ent. #urther the status and ro%e o" a person within an or,ani7ation a""ects his occupation behavior. #or e2a$p%e) chie" e2ecutive bu s 5 piece suits o" best "abricF hand$ade %eather brie"case =unior $ana,er in sa$e or,ani7ation $a a%so bu si$i%ar thin,s) but co$pro$ises on Eua%it .

INCOME
'he inco$e which a person earns is an e2tre$e% i$portant in"%uence on his consu$ption behavior. He $a aspire to bu

certain ,oods and services but his inco$e $a beco$e a constraint. /erson6s attitude towards spendin, vs savin, and his borrowin, power are a%so i$portant. S$a%% si7e pac4a,in, in sachets is $eant "or >ID custo$ers. >u2ur products are $ore inco$e sensitive than necessities.

PERSONALIT$
/ersona%it is su$ tota% o" an individua%6s ps cho%o,ica% traitscharacteristics- $otives- habits- attitudes- be%ie"s and out%oo4s. /ersona%it is the ver essence o" individua% di""erences in consu$er behavior. /ersona%it is de"ined as those inner ps cho%o,ica% characteristics that both deter$ine and re"%ect how a person responds to his environ$enta% sti$u%i. /ersona%it is endurin, and ensures that a person6s responses are consistent over ti$e. &i""erent t pes o" persona%ities can be c%assi"ied and each t pe responds di""erent% to the sa$e sti$u%i and persona%it can be used to identi" and predict that response. #or e2a$p%e) Char$s ci,arettes used b oun,- $odern- care"ree persona%it . /otentia% $ar4eter se,$ent students and other oun, peop%e. Sur"6s >a%ita=i) A $idd%e c%ass traditiona% "orthri,ht and ob=ective housewi"e "or appea% to a potentia% custo$er o" sur".

LIFEST$LE
>i"est %es are de"ined as patterns in which peop%e %iveF as e2pressed b the $anner in which the spend $one and ti$e on various activities and interests. >i"est %e is a "unction o" our $otivations %earnin,- attitudes- be%ie"s and opinion- socia% c%assde$o,raphic "actors- persona%it etc. >i"e st %e is $easured b a techniEue 4nown as ps cho,raphics. It invo%ves $easurin, consu$er6s responses to activities- interests

and opinions *AIO+ a%on, with co%%ectin, in"or$ation on de$o,raphic "actors.

LIFEST$LE DIMENSIONS
ACTIVITIES INTERESTS OPINIONS DEMOGRAPHI CS Wor4 Hobbies Socia% Vacation Entertain$ent C%ub Me$bership Co$$unit Shoppin, Sports #a$i% Ho$e Gob Co$$unit Recreation #ashion #ood Media Achieve$ents 'he$se%ves Socia% issues /o%itics Business Econo$ics Education /roducts #uture Cu%ture A,e Education Inco$e Occupation #a$i% Si7e &we%%in, Deo,raph Cit Si7e Sta,e in %i"e c c%e

Darden Vare%i- Ra $onds- Vi$a% te2ti%es have based their pro$otiona% strate,ies on %i"est %es.

DETAILED MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR CULTURAL FACTORS C'%t're1


T,e st'dy o& '%t're e! om+asses a%% as+e ts o& a so iety s' , as its re%i)io!* 3!o/%ed)e* %a!)'a)e* %a/s* 'stoms*

traditio!s* m'si * art* te ,!o%o)y* /or3 +atter!s* +rod' ts et 6 A%% t,ese &a tors ma3e'+ t,e '!i4'e disti! tive +erso!a%ity o& ea , so iety6

;6Forma% %ear!i!)
I! /,i , +are!ts a!d e%ders tea , ,i%dre! t,e +ro+er /ay to .e,ave6 <6 I!&orma% Lear!i!) I! /,i , /e %ear! .y imitati!) t,e .e,avior o& o'r +are!ts* &rie!ds* &i%m a tors2 artists i! a tio!6 =6 Lear!i!) I! /,i , i!str' tio!s are )ive! a.o't t,e s+e i&i met,od .y /,i , ertai! t,i!)s ,ave to .e do!e s' , as +ri!ti!)* da! i!)* si!)i!) et 6 T,ro'), a mar3eter a! i!&%'e! e a%% t,e = ty+es o& %ear!i!) t,ro'), ,is om+a!y#s advertisi!) strate)y6 It is i!&orma% %ear!i!) /,i , is most ame!a.%e to s' , i!&%'e! es6 T,e 3i!d o& +rod' ts a!d advertisi!) a++ea%s t,at a! /or3 e&&e tive%y i! a so iety de+e!d %ar)e%y o! its '%t'ra% .a 3)ro'!d6 For E)>1 I! Ameri a! so iety* i!divid'a%ism* &reedom* a ,ieveme!t* s' ess* materia%* o!&ort* e&&i ie! y a!d +ra ti a%%y are t,e va%'es2+rod' ts2servi es /,i , &'%&i%% t,ese va%'es are s' ess&'%%y mar3eted i! Ameri a6 I! I!dia! so iety1 o!&ormity* s+irit'a%ism* res+e t &or e%ders* tradio!a%ism a!d ed' atio! are &e/ domi!a!t '%t'ra% va%'es6 Ho/ever o'r so iety is '!der)oi!) a '%t'ra% metamor+,osis* some ma?or '%t'ra% s,i&ts ,ave &ar rea ,i!) o!se4'e! es &or t,e i!trod' tio! o& a vast

variety o& !e/ +rod' ts a!d servi es6 Some o& t,ese ,a!)es are1 Co!ve!ie! e Ed' atio! P,ysi a% a++eara! e Materia%ism

Co!ve!ie! e
"it, more /ome! ?oi!i!) t,e /or3 &or e t,ere is a! i! reasi!) dema!d &or +rod' ts %i3e )as stoves* mi0ies* /as,i!) ma ,i!e* +re oo3ed &ood* &ast &ood o't%ets et 6

Ed' atio!
Peo+%e i! o'r so iety today /is, to a 4'ire re%eva!t ed' atio! a!d s3i%%s t,at /o'%d ,e%+ im+rove t,eir areer +ros+e ts * so ma!y +ro&essio!a%2 areer orie!ted e!tres are omi!) '+6

P,ysi a% A++eara! e
P,ysi a% &it!ess* )ood ,ea%t, a!d smart a++eara! e are o! a +remi'm today so s%immi!) e!tres a!d .ea'ty +ar%ors are m's,roomi!) i! ma?or ities6

S'. C'%t're
A s'. '%t're is a! ide!ti&ia.%e disti! t* '%t'ra% )ro'+ /,i , /,i%e &o%%o/i!) t,e domi!a!t '%t'ra% va%'es o& t,e overa%% so iety a%so ,as its o/! .e%ie&s* va%'es a!d 'stoms t,at set t,em a+art &rom ot,er mem.ers o& t,e same so iety6 S'. '%t'ra% ate)ory Natio!a%ity I%%'strative s'. '%t're I!dia!* Pa3ista!i* Sri La!3a!

Re%i)io! Ra e A)e Se0 O '+atio!

Hi!d'ism* Si3,ism* Is%am* C,ristia!ity B%a 3* /,ite* Asia! $o'!)* midd%e a)ed* e%der%y Fema%e* ma%e Farmer* tea ,er* do tor So't,* !ort,* /ester! So't,* !ort,* easter!* /ester! I!dia

So ia% %ass Geo)ra+,i %o atio!

T,ese s'. '%t'res o&&er readymade mar3et se)me!ts to t,e mar3eter /,o a! +ositio! ,is +rod' ts to meet t,e s+e i&i !eeds* motivatio!* +er e+tio!s a!d attit'des o& ea , s'. '%t're6 Ho/ever t,e mar3eter may !eed to modi&y .ot, ,is +rod' t a!d advertisi!) a++ea% to s'it t,eir s+e ia%i(ed !eeds6 Ea , mem.er o& a so iety is a mem.er o& severa% )ro'+s@ s' , as e%der%y* 3era%ite* C,ristia!* &ema%e* tea ,er6A

So ia% C%ass
So ia% %asses a! .e de&i!ed as re%ative%y +erma!e!t a!d ,omo)e!eo's divisio!s i! a so iety /,i , i!divid'a%s or &ami%ies s,ari!) same va%'es* %i&e sty%es* i!terests a!d .e,avior a! .e ate)ori(ed6 So ia% %ass is a o! e+t .ased o! distri.'tio! o& stat's a!d t,e ate)ories are 's'a%%y ra!3ed i! a ,ierar ,ia% order ra!)i!) &rom %o/ to ,i), stat's6 So ia% stat's is a! idea .asis &or se)me!ti!) t,e mar3et6

Ma?or so ia% %asses a!d t,eir domi!a!t ,ara teristi s a!d .'yi!) .e,avior +atter!s So ia% %ass Disti!)'is,i!) ,ara teristi s
E%ite o& so iety* aristo rats* or to+ i!d'stria%ists* i!,erited /ea%t,B /e%% 3!o/! &ami%y .a 3)ro'!dB s+e!d mo!ey %avis,%y .'t i! dis reet* o!servative taste6 To+ +ro&essio!a%s* .'si!essma! /,o ,ave ear!ed rat,er t,a! i!,erited mo!ey* sty%e a!d taste is o!s+i 'o's a!d &%am.oya!t* t,ey see3 +ro&essio!s /,i , /i%% re&%e t t,eir stat's Pro&essio!a% areerists omi!) &rom midd%e %ass va%'es o& res+e ta.%e .'yi!) o!&ormity* em+,asis is o! )ood ed' atio!* sty%e is )ra io's are&'%6

Domi!a!t o!s'm+tio! +atter!s

U++er U++er

S+e!d o! +ro+erty* ,omes* .est ed' atio! &or ,i%dre!* &re4'e!t &orei)! va atio!s* a!ti4'es* ?e/e%%ery* 'stom made ars S+e!d o! %ar)e ,omes /it, &%as,y a!d e0+e!sive dC or* .est ed' atio! &or ,i%dre!* im+orted ars* %atest ,o'se,o%d )ad)ets* D1 star ,ote%s6 S+e!d o! .'yi!) 4'a%ity +rod' ts* irres+e tive o& t,e ate)ory o& +rod' t it is 4'a%ity /,i , is t,e most im+orta!t &eat're* o%or TV* VCR* Mar'ti ar are some o& t,e +rod' ts asso iated /it, t,is %ass6 S+e!d a )reat dea% o& time s,o++i!) aro'!d &or .est .ar)ai!* t,ey .'y re&ri)erator* B2" TV* s ooter* motor y %e et B2" TV* )as stove* ei%i!) or ta.%e &a! are .o'),t .'t %ar)e%y o! ,ire +'r ,ase .asis* i&

Lo/er U++er

U++er Midd%e

Lo/er Midd%e

",ite o%%ar /or3ers s' , as o&&i e /or3ers* sma%% .'si!essma!* traders* va%'e !eat!ess a!d %ea!%i!ess a!d /a!t t,eir ,ome a!d +ro&essio!s to re&%e t t,is Poor%y ed' ated* semi1 s3i%%ed &a tory /or3ers* t,ey om+rise t,e %ar)est so ia% %ass se)me!t6 T,eir ma?or motivatio! is se 'rity*

U++er Lo/er

+'r ,ase de isio!* o&te! im+'%sive a.o't e0,i.its a ,i), de)ree o& .ra!d %oya%ty Lo/er Lo/er O&te! '!ed' ated* at t,e .ottom o& t,e so iety a!d /or3i!) as '!s3i%%ed %a.or * %ive &rom day to day .asis /it, %itt%e +%a!!i!) &or &'t're6

avai%a.%e

B'y o!%y t,e .asi !e essities o& %i&e 's'a%%y .'y %oose a!d '!.ra!ded +rod' ts ,ave !o om+re,e!sio! a!d va%'e o& .ra!ds6

SOCIAL FACTORS
Re&ere! e Gro'+s T,e o!s'mer#s de isio! to +'r ,ase a!d 'se ertai! +rod' ts a!d servi es is i!&%'e! ed !ot o!%y .y +sy ,o%o)i a% &a tors* ,is +erso!a%ity a!d %i&e sty%e* .'t a%so .y t,e +eo+%e aro'!d ,im /it, /,om ,e i!tera ts a!d vario's so ia% )ro'+s ,e .e%o!)s to 6 A )ro'+ is de&i!ed as t/o or more +eo+%e /,o i!tera t to a ,ieve i!divid'a% or ommo! )oa%s6 T,e = ate)ories o& )ro'+s are1 Primary - Se o!dary )ro'+s1 A +rimary )ro'+ is o!e /it, /,i , a! i!divid'a% i!tera ts o! a re)'%ar .asis a!d /,ose o+i!io! is o& im+orta! e to ,im6 For e)>1 &ami%y* !ei),.o'rs* %ose &rie!ds* o%%e)'es a!d o1/or3ers Se o!dary )ro'+s are t,ose /it, /,i , a! i!divid'a% i!tera ts o!%y o asio!a%%y a!d does !ot o!sider t,eir o+i!io! very im+orta!t6 Forma% - I!&orma% )ro'+s1 Rotary* %io!s* Eay ees are /e%% 3!o/! so ia% )ro'+s i! o'r so iety6 A &orma% )ro'+ ,as a ,i),%y de&i!ed str' t're* s+e i&i ro%es a!d a't,ority +ositio!s a!d s+e i&i )oa%s6 A!

i!&orma% )ro'+ is %oose%y de&i!ed a!d may ,ave !o s+e i&ied ro%es a!d )oa%s6 For e)1 meeti!) !ei),.o'rs over %'! , o! e i! a mo!t,* &or &rie!d%y e0 ,a!)e o& !e/s6 Mem.ers,i+ - Sym.o%i )ro'+s1 A mem.ers,i+ )ro'+ is o!e to /,i , a +erso! .e%o!)s or 4'a%i&ies &or mem.ers,i+6 A%% /or3ers i! a &a tory 4'a%i&y &or mem.ers,i+ to t,e %a.o'r '!io!6 Sym.o%i )ro'+ is o!e i! /,i , a! i!divid'a% as+ires to .e%o!) .'t is !ot %i3e%y to .e re o)!i(ed as a mem.er6 A ,ead %er3 i! a! o&&i e may a t as i& ,e .e%o!)s to t,e to+ ma!a)eme!t )ro'+ .y ado+ti!) t,eir attit'des* va%'es a!d modes o& dress et 6 Re&ere! e )ro'+s1 are 'sed i! advertisi!) to a++ea% to di&&ere!t mar3et se)me!ts* )ro'+ sit'atio! /it, /,i , +ote!tia% 'stomers a! ide!ti&y are 'sed to +romote +rod' ts a!d servi es6 Hidde! i! t,is a++ea% i! t,e s'.t%e i!d' eme!t to t,e 'stomer to ide!ti&y ,imse%& /it, t,e 'ser o& t,e +rod' t i! 4'estio!6 T,e t,ree ty+es o& re&ere! e )ro'+ a++ea%s are e%e.rities* e0+erts a!d ommo! ma!6 e%e.rities E0+erts Commo! ma! Fi%m stars - s+ort Heroes Do tors* a %a/yers o'!ta!ts*

La%ita?i @s'r&A

I!dire t re&ere! e )ro'+s om+rise t,ose i!divid'a%s or )ro'+s /it, /,om a! i!divid'a% does !ot ,ave a!y dire t &a e to &a e o!ta t s' , as &i%mstars* TV stars* s+ortsme!* +o%iti ia!6

Dire t re&ere! e )ro'+s are o!es /,i , e0ert a si)!i&i a!t i!&%'e! e o! o!s'mer#s +'r ,ase de isio! a!d .e,avior a! .e %assi&ied as Fami%y Frie!ds,i+ )ro'+s Forma% s,o++i!) )ro'+s Co!s'mer a tio! )ro'+s "or3 )ro'+s Fami%y F t/o &ami%ies s,a+e a! i!divid'a%#s o!s'm+tio! .e,avior6 ;6 Fami%y o& orie!tatio! is t,e &ami%y i! /,i , a! i!divid'a% is .or!* o!sists o& +are!ts* .rot,ers a!d sisters6 <6 Fami%y o& +ro reatio! o!sists o& o!s'mer#s s+o'se a!d ,i%dre!6 "it,i! t,e &ami%y* di&&ere!t mem.ers +%ay di&&ere!t ro%es* mar3eters /a!t to &i!d o't e0a t%y t,e ro%e +%ayed .y i!divid'a% mem.er6 For e)1 traditio!a%%y /i&e +'r ,ases &ood* %ot,i!) a!d ot,er ,o'se,o%d s'!dries* H's.a!d +%ays a domi!a!t ro%e i! t,e +'r ,ase o& a'tomo.i%es2i!s'ra! e ,i%dre! are a%so .e)i!!i!) to e0ert t,eir i!&%'e! e o! &ami%y +'r ,ase de isio!s6 TV* m'si system* +erso!a% om+'ters et 6 Ro%es A! i!divid'a% may +arti i+ate i! ma!y )ro'+s ,as +ositio! /it,i! ea , )ro'+ a! .e de&i!ed i! terms o& a tivities ,e is e0+e ted to +er&orm6 For e)>1 At /or3+%a e I!divid'a% ma!a)er At ,ome S+o'se2+are!ts

Re4'ires Reaso!

= +ie e s'it* tie* %eat,er s,oes To re&%e t stat's

Eea!s2T1S,irt2 G'rta Py?ama I!&orma%2 om&ort

Stat's Ea , ro%e a +erso! +%ays ,as a stat's /,i , is re%ative +resti)e a ordi!) to so iety6 Peo+%e .'y a!d 'se +rod' ts /,i , re&%e t t,eir stat's6 Gro'+ Norms T,e !orms o& a )ro'+ are t,e im+%i it r'%es o& o!d' t a!d .e,avior t,at are e0+e ted o& its mem.er6 For e)>1 m'%ti!atio!a% om+a!y i! I!dia Norm &or o&&i e /ear is s,irt2tie eve! i! s'mmer Mar3eters !eed to ide!ti&y t,e vario's )ro'+s to /,i , +ote!tia% o!s'mers .e%o!) to mar3et t,e +rod' ts re4'ired6 Co!&ormity T,is im+%ies t,at mem.ers o& a )ro'+ ,ave ado+ted attit'des a!d .e,avior +atter!s t,at are o!siste!t /it, t,e )ro'+#s !orms6 I! t,e o!te0t o& o!s'mer .e,avior it re&ers to t,e +er e!ta)e o& mem.ers /,o 3!o/i!)%y 'se t,e same .ra!d o& +rod' t6 O+i!io! %eaders A+art &rom &ami%y* a o!s'mer is i!&%'e! ed .y t,e advi e ,e re eives &rom ,is &rie!ds* !ei),.o'rs* re%atives a!d o%%e)'es a.o't /,at +rod' ts a!d servi es ,e s,o'%d .'y6 T,is +ro ess o& i!&%'e! i!) is 3!o/! as t,e o+i!io! %eaders,i+ +ro ess a!d is des ri.ed as t,e +ro ess .y

/,i , t,e o+i!io! %eaders !orma%%y i!&%'e! es t,e a tio!s a!d attit'des o& ot,ers6 T,e advi e o& o+i!io! %eaders is so'),t i! ase o& s+e i&i +rod' ts6 Peo+%e /,o ,ave a 4'ired o!sidera.%e 3!o/%ed)e a!d e0+erie! e i! a +arti '%ar &ie%d are o!sidered as o+i!io! %eaders i! t,at area6 Advertisers2mar3eters are t,ere&ore o! er!ed /it, rea ,i!) o+i!io! %eaders6 Di&&'sio! o& I!!ovatio! T,e a e+ta! e o& !e/ +rod' ts* .ra!ds a!d ideas is 3!o/! as t,e di&&'sio! o& i!!ovatio!6 Mar3eters are o! er!ed /it, s+read or di&&'sio! o& t,is i!!ovatio!6

CONSUMER BEHAVIOR1 DECISION


DECISION I! .et/ee! t,e sta)e o& re eivi!) t,e stim'%i a!d res+o!di!) to it* t,e o!s'mer )oes t,ro'), t,e +ro ess o& ma3i!) ,is de isio!6

A de isio! is t,e se%e tio! o& a! a%ter!ative o't o& t,e severa% !'m.er o& a%ter!atives avai%a.%e6 LEVELS OF CONSUMER DECISIONS As a .'yer are o!s'mer* /e are a%% t,e time ma3i!) de isio!s s' , as ;6 ",at +rod' t to .'y <6 ",i , .ra!d to .'y =6 From /,ere LEVELS OF PURCHASE RELATED CONSUMER DECISIONS FOR PERSONAL TRANSPORT ALTERNATIVE < /,ee% or H /,ee% ve,i %e PO"ER DRIVEN S ooter* motor y %e* mo+ed* ar* ?ee+ Bra!d %eve% Car Mar'ti* C,evro%et Motor y %e Eee+ $ama,a* Hero Ho!da* Ba?a? M-M* Tata S'mo Mo+ed Gi!eti * L'!a et S ooter Ba?a?* Ho!da* Gi!eti

Ty+e o& Retai% O't%et

Com+a!y s,o/room* e0 %'sive .ra!d dea%er o't%et M'%ti!atio!a% .ra!d dea%er o't%et Dea%er o't%et !ear ,ome2re omme!ded Dea%er o't%et /it, servi i!) &a i%ity PROCESS OF DECISION MAGING Ma3i!) a de isio! is a ratio!a% a!d o!s io's +ro ess i! /,i , t,e o!s'mer eva%'ates ea , o& t,e avai%a.%e a%ter!atives to se%e t t,e .est amo!)st t,em6 Ea , de isio! yo' ma3e i!vo%ves a! e%a.orate me!ta% t,o'),t +ro ess* a de)ree o& a tive reaso!i!)* t,o'), o! t,e s'r&a e it may !ot a%/ays see! to .e so6 For e)>1 Dai%y Bread1 De isio! varia.%e* .ra!d 4'a!tity* retai% o't%et So&a set1 De isio! varia.%e* &ar more i! !'m.er Readymade2 made to order From s,o+2 to .e .'i%t at ,ome Ty+e o& materia% a!d desi)! T,ree &a tors1 ;6 I!vo%veme!t <6 A%ter!ative di&&ere!tiatio! =6 Time +ress're ",i , i!&%'e! e t,e de)ree o& a tive reaso!i!) '!derta3e! .y t,e o!s'mer i! ,is +ro ess o& de isio! ma3i!)6 INVOLVEMENT

",e! a +rod' t is +er eived to .e o& )reat +erso!a% im+orta! e to t,e 'stomer* s' , as +erso!a% %ot,i!)* or its +'r ,ase i!vo%ves a )reat dea% o& mo!ey or ris3 vi( ?e/e%%ery* ar * ,ome* om+a!y s,ares t,e %eve% o& i!vo%veme!t is %i3e%y to .e very ,i), t,e o!s'mer is %i3e%y to s+e!d a )reat dea% o& time .e&ore arrivi!) at t,e &i!a% de isio!6 I! o!trast /,e! .'yi!) items /,i , do !ot re&%e t m' , o! t,e o!s'mer#s +erso!a%ity or t,eir +'r ,ase i!vo%ves sma%% amo'!ts o& mo!ey or t,e ris3 asso iated /it, t,em is !ot ,i),* t,e de)ree o& i!vo%veme!t o& t,e o!s'mer is %i3e%y to .e %o/6 For e)>1 toi%et soa+* toot, .r's,6 Bis 'its* s,oe +o%is, et 6 TIME PRESSURE ",e! /e are '!der +ress're to ma3e a de isio! 4'i 3%y /e a!!ot a&&ord to s+e!d a %o!) time &i!di!) o't a.o't t,e vario's +rod' ts or .ra!ds6 "e +ro.a.%y .'y /,i ,ever is readi%y avai%a.%e For e)>1 +'r ,ase o& ar tyre2t'.e '!der emer)e! y o! t,e road /,e! it .'rsts a!d +'r ,ase /,e! /e !eed to .'y tyres6 DIFFERENTIATION ",e! t,e o!s'mer +er eives t,at t,e vario's a%ter!atives /,i , are avai%a.%e are very di&&ere!t &rom o!e a!ot,er i! terms o& t,eir &eat'res a!d .e!e&its o&&ered* ,e is %i3e%y to s+e!d more time i! )at,eri!) i!&ormatio! a!d eva%'ati!) t,ese di&&ere!t &eat'res6 O! t,e ot,er ,a!d* i! ase o& +rod' ts /,i , are !ot very di&&ere!t &rom o!e a!ot,er eit,er i! terms o& t,eir &eat'res or .e!e&its o&&ered* t,e o!s'mer is .o'!d to +er eive t,em as .ei!) a%most t,e same a!d .'y t,e &irst avai%a.%e +rod' t2.ra!d /,i , satis&ies ,is mi!im'm e0+e tatio!s6

T$PES OF PURCHASE DECISION BEHAVIOR1 THREE T$PES OF BU$ING BEHAVIOR Ro'ti!ised res+o!se .e,avior Limited +ro.%em so%vi!) E0te!ded +ro.%em so%vi!) ROUTINISED RESPONSE BEHAVIOR @RRBA t,is o 'rs /,e! t,e o!s'mer a%ready ,as some e0+erie! e o& .'yi!) a!d 'si!) t,e +rod' t o!s'mers do !ot )ive m' , t,o'),t or time6 ",e! .'yi!) s' , +rod' ts a!d a%ready ,ave a +re&erred .ra!d6 T,e de)ree o& i!vo%veme!t i! .'yi!) s' , +rod' ts is %o/6 Fre4'e!t%y +'r ,ased a!d %o/ ost +rod' ts s' , as ra(or .%ades* o&&ee +o/der* toot, +aste* soa+* so&t dri!3s ety &a%% i! t,is ate)ory6 Mar3eters dea%i!) i! +rod' ts i!vo%vi!) RRB m'st e!s're t,e satis&a tio! o& e0isti!) 'stomers .y mai!tai!i!) o!siste!t 4'a%ity servi e a!d va%'e6 LIMITED PROBLEM SOLVING @LPSA I! t,is ty+e o& .'yi!) .e,avior* t,e o!s'mer is &ami%iar /it, t,e +rod' t a!d t,e vario's .ra!ds avai%a.%e* .'t ,as !o esta.%is,ed .ra!d +re&erra! e6 T,e o!s'mer /o'%d %i3e to )at,er additio!a% i!&ormatio! a.o't t,e .ra!ds to arrive at ,im .ra!d de isio!6 For e)>1 Bra!ded re&i!ed oi%s @s,o+3ee+er#s vie/A LPS a%so ta3es +%a e /,e! a o!s'mer e! o'!ters a! '!&ami%iar .ra!d i! a 3!o/! +rod' t ate)ory6 For e)>1 Sa&&o%a T,e mar3eter#s tas3 i! a sit'atio! /,ere ,e is i!trod' i!) a !e/ .ra!d i! a /e%% 3!o/! +rod' t ate)ory is to desi)! a omm'!i atio! strate)y t,at )ives om+%ete i!&ormatio!

o! a%% t,e attri.'tes o& t,e .ra!d t,'s i! reasi!) t,e o!s'mer#s o!&ide! e a!d &a i%itati!) ,is2,er +'r ,ase de isio!6 E5TENSIVE PROBLEM SOLVING @EPSA EPS o 'rs /,e! t,e o!s'mer is e! o'!teri!) a !e/ +rod' t ate)ory6 He !eeds i!&ormatio! o! .ot, t,e +rod' t ate)ory as /e%% as t,e vario's .ra!ds avai%a.%e i! it6 T,e mar3eti!) strate)y &or s' , .'yi!) .e,avior m'st .e s' , t,at it &a i%itates t,e o!s'mer#s i!&ormatio! )at,eri!)2%ear!i!) +ro ess a.o't t,e +rod' t ate)ory a!d ,is o/! .ra!d6 T,e mar3eter m'st .e a.%e to +rovide ,is o!s'mer /it, a very s+e i&i 2'!i4'e set o& +ositive attri.'tes re)ardi!) ,is o/! .ra!d so t,at t,e +'r ,ase de isio! is made i! ,is &avor6 T,e o! e+t o& EPS is most a++%i a.%e to !e/ +rod' ts6 T,e +rod' t may .e !e/ at t,e )e!eri +rod' t o! e+t %eve% @ma)i !ood%esA or it may .e a! esta.%is,ed +rod' t o! e+t .'t !e/ &or a +arti '%ar o!s'mer @tri.a% e0+osed to o! e+t o& toot,+asteA6

STAGES IN THE BU$ER DECISION PROCESS


I! ma3i!) a +'r ,ase de isio! t,e o!s'mer )oes t,ro'), t,e &ive sta)es o& ;6 Pro.%em re o)!itio! <6 Pre1+'r ,ase i!&ormatio! sear , =6 Eva%'atio! o& a%ter!atives H6 P'r ,ase de isio! D6 Post +'r ,ase .e,avior

Ho/ever* i! ase o& ro'ti!e +'r ,ases* t,e o!s'mer may s3i+ t,e se o!d - t,ird sta)es a!d strai),t a/ay )o t,e sta)e o& +'r ,ase de isio!6 Pro.%em re o)!itio!1 t,e .'yi!) +ro ess starts /it, t,e .'yer re o)!i(i!) a !eed or a +ro.%em Pre1+'r ,ase i!&ormatio! sear ,1 E0ter!a% - I!ter!a% I!ter!a%1 re&ers to re a%%i!) re%eva!t i!&ormatio! stored i! t,e memory6 E0ter!a%1 re&ers to de%i.erate a!d vo%'!tary see3i!) o& i!&ormatio!* re o)!i(ed t,e +rod' t2.ra!d '!der o!sideratio! /,i , a! .e &rom1 ;6 Perso!a% so'r es1 &ami%y* &rie!ds* o%%e)'es* !ei),.ors <6 Commer ia% so'r es1 advertiseme!ts* retai%ers* sa%es+erso! =6 P'.%i so'r es1 seei!) ot,ers* o!s'mer i!&ormatio! e!tres EVALUATION OF ALTERNATIVES Commo!%y 'sed riteria Prod' t attri.'te Re%ative im+orta! e Bra!d ima)e Attit'des to/ards t,e di&&ere!t .ra!ds2a%ter!atives '!der o!sideratio! T,e sta)e o& t,e .'yi!) de isio! +ro ess )ives t,e mar3eter a ,a! e to modi&y ,is +rod' t o&&eri!) i! 3ee+i!) /it, t,e re%ative im+orta! e atta ,ed to ea , attri.'te .y vario's o!s'mer se)me!ts* a%teri!) .e%ie&s

a!d attit'des a.o't ,is o/! .ra!d a!d a%%i!) atte!tio! to !e)%e ted +rod' t attri.'tes6 PURCHASE DECISION Co!s'mer e!d '+ .'yi!) a .ra!d /,i , is !ot ,is most +re&erred .e a'se o& S,o+3ee+er#s i!&%'e! e Pre&erred .ra!d !ot avai%a.%e Attra tive i! e!tive o! ot,er .ra!d POST PURCHASE BEHAVIOR A&ter +'r ,asi!) t,e +rod' t i& o!s'mer &i!ds t,at its +er&orma! e2'ti%ity mat ,es '+ to ,is e0+e tatio!* satis&a tio! o 'rs6 Satis&a tio! /i%% rei!&or e 'stomer#s +er eived &avora.%e ima)e o& t,e .ra!d /,i , a! )et e0te!ded to t,e e!tire ra!)e o& +rod' ts ma!'&a t'red .y t,e om+a!y6 C'stomer may a%so stro!)%y re omme!d t,e .ra!d to ot,ers6 Ho/ever i& t,e +rod' t is !ot '+to ,is e0+e tatio!1 dissatis&a tio! res'%ts6 T,e 'stomer may de ide to sto+ .'yi!) ot,er +rod' ts o& t,e om+a!y a!d i!&orm +eo+%e 3!o/! to ,im2,er a.o't t,e +oor 4'a%ity +er&orma! e o& t,e +rod' t6