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SPECIAL STUDY IN MARKETING

TYBMS SEMESTER 5 Prepared by Kripa Kalro

UNIT 1:
CONSUMER BEHAVIOUR

DEFINITION
Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. There are 2 types: Consumer and Industrial

WHY STUDY CONSUMER BEHAVIOUR?


Different reactions Diversified preferences Differentiated products Special needs Technologically advanced products Sales pitch Foundation for marketing management Development of laws, regulations, etc

RESEARCH PERSPECTIVES ON CB
I. The decision making perspective I. The experiential perspective I. The behavioral influence perspective

CONSUMER DECISION MAKING MODEL

OTHER DECISION MAKING MODELS


1) 2) 3) 4) 5) 6) 7) 8) 9) Economic model Psychological model Pavlovian model Sociological model Howrath Sheth model Engel- Blackwell- Kollat model Model of family decision making Nicosia model Schiffman and Kanuks model

CONSUMER BUYING PROCESS


1. 2. 3. 4. 5. Need/Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post Purchase Behavior: Satisfaction, Action, Use and Disposal

FACTORS AFFECTING CB
1) 2) Cultural Factors Culture Sub-Culture Social Class Social Factors Groups Family Roles and Status

3)
4)

Personal Factors Age and Life-Cycle Stage Occupation Economic Situation Lifestyle, Personality and Self-Concept
Psychological Factors Motivation Perception Learning Beliefs and Attitudes

FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR


SOCIAL FACTORS Family influence CULTURAL FACTORS Culture

Reference group influence


Roles and status CONSUMER AS DECISION MAKER Beliefs and attitudes Learning

Subculture
Social class

Age & family life cycle Economic circumstances Occupation Personality & self concept Psychographics

PSYCHOLOGICAL FACTORS

PERSONAL FACTORS

ABRAHAM MASLOWS THEOREY OF MOTIVATION

Self Actualization Needs Esteem Needs Social Affiliation Security and Safety

Basic Physiological needs

DAVID MCLLELAND`S THEOREY OF MOTIVATION


I. Need for achievement (n Ach)
II. Need for Power (n Pow) III. Need for Affiliation (n Aff)

THE PERCEPTION PROCESS

Attention Inputs to process stimuli - Active search - Passive search - Passive Attention Interpretation -Simplify Cognition

- Distort
- Organise

FACTORS THAT INFLUENCE PERCEPTION


Stimulus factors Audience or individual factors

PRINCIPLES OF PERCEPTION
1. 2. 3. 4. Perception is selective Perception is organized Perception depends upon stimulus factors Perception depends upon personal factors

BELIEFS AND ATTITUDES


Belief is a descriptive thought that a person holds about something. Beliefs may be based on knowledge, opinion or faith.

An attitude is a persons enduring favourable or unfavourable evaluations, emotional feelings and actions, tendencies toward some object or idea.

AGE AND FAMILY LIFE CYCLE


1. 2. 3. 4. 5. Bachelorhood Honeymooners Parenthood: Full Nest 1, 2, 3 Post parenthood: Empty Nest 1, 2 Dissolution: Solitary survivor, Retired Solitary survivor

BUYING ROLES
1) Initiator 2) Influencer 3) Gatekeeper 4) Deciders 5) Buyers 6) Preparers 7) Users 8) Maintainers 9) disposers

PERSONALITY
Inner psychological characteristics that both determine and reflect how a person responds to his or her environment.

The nature of Personality: 1. Personality reflects individuals difference 2. Personality is consistent and enduring 3. Personality can change

Theories: 1. Freuds psychoanalytic 2. Non-Freudian 3. Trait

SELF- CONCEPT
Totality of individuals thoughts and feelings having reference to himself as an object 1. Actual Self 2. Ideal self 3. Social self 4. Ideal social self 5. Expected self 6. Situational self 7. Extended self 8. Possible selves

LIFESTYLE IDENTIFICATION
Lifestyle is a group phenomenon Lifestyle pervades various aspects of life Lifestyle implies a central life interest Lifestyles vary according to sociologically relevant variables

AIO INVENTORIES
ACTIVITIES: Work, hobbies, social events, vacation, entertainment, club member, community, shopping, sports INTERESTS: Family, home, job, community, recreation, fashion, food, media, achievements OPINIONS: themselves, social, political, business, economics, education, products, future, culture DEMOGRAPHICS: age, education, income, occupation, family size, geography, city size, lifecycle, dwelling

AIO STATEMENTS
Attitudes, interests and opinions Help researchers understand consumer behavior Provides insights into a consumers likes and dislikes

TYPES OF BUYING BEHAVIOR


Degree of Involvement Degree of difference among brands High COMPLEX BUYING BEHAVIOR Intel Pentium Low VARIETY SEEKING BUYING BEHAVIOR Soap Powder

Significant

Few

DISSONANCE REDUCING BUYING BEHAVIOR Diamonds, carpest, sofas

HABITUAL BUYING BEHAVIOR Salt

CONSUMER INVOLVEMENT
TYPES: 1. Situational involvement 2. Enduring involvement DIMENSIONS OF INVOLVEMENT 1. Self expressive importance 2. Hedonic involvement 3. Practical relevance 4. Purchase risk LEVELS OF INVOLVEMENT 1. RRB : Routinised response behavior/ Routine decision behavior/ least involvement 2. LPS: Limited problem solving/ limited decision making level/ low involvement 3. EPS: Extensive problem solving/ extensive decision making/ high involvement

STAGES IN ADOPTION PROCESS


1. 2. 3. 4. 5. 6. Awareness Comprehension Attitude Legitimation Trial Adoption

ADOPTER CATEGORIES

34% Early majority 2 1/2% Innovators 13 1/2% Early adopters

34% Late majority


16% Laggards

Time of adoption innovations

DIFFUSION OF INNOVATION/ DIFFUSION PROCESS


The process by which the acceptance of an innovation (a new products, new service, new idea or new practice) is spread by communication (mass media, sales people, or informal conversations) to members of a social system (a target market) over a period of time.