Beruflich Dokumente
Kultur Dokumente
Consumer Behavior
Flow of Presentation
Consumer v/s customer Consumerism Consumer Behavior Why consumer Behavior Orientation of Marketplace Consumer value, satisfaction & retention Consumer decision-making Model
Personal Consumer
The individual who buys goods and services for his or her own use (consumer), for household use, for the use of a family member, or for a friend ( customer)
Organizational Consumer
A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.
CONSUMERISM
As individuals we all are unique. We use or consume on a regular basis food, clothing, shelter, transportation, education, luxuries, services etc. As consumers, we play a vital role in the health of economy. The purchase decision we make affect the demand for basic raw materials , they affect the employment of workers and deployment of resources and hence the overall economy of nation.
Consumerism essentially means the growing wants and needs of an individual for goods and services. India is one of the largest and fastest growing economies in the world. The consumers standard of life is going higher and hence his needs are escalating as well. Consumers are now participants in global market as well as cyber market globalization, liberalization and consumerism
INCREASE IN CONSUMERISM
Increase in disposable income Mass-media Reachability of distribution channels and media Digital revolution Increased competition Consumers have more power than ever before Consumers have access to more information than ever before Marketers offer variety of products Mall-culture
Consumer Behavior
The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
Psychology (the study of individual) Sociology (the study of groups) Social psychology (the study of how an
individual operates in groups)
Anthropology
individual)
Economics
In order to succeed in any business, and especially in todays dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumerswhat they want, what they think, how they spend their leisure time etc.
Marketers need to understand the personal and group influences that affect consumer decision making
Contd
As marketers, it is important for you to recognize why and how individuals make their consumption decisions so that you can make better strategic marketing decisions. If you understand consumer behavior, you are able to predict how consumers are likely to react to various informational and environmental cues and shape strategies accordingly.
Production Concept
Product Concept Selling Concept Marketing Concept
Assumes that consumers are interested primarily in product availability at low prices Marketing objectives:
Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features Marketing objectives:
MARKETING MYOPIA
Marketing Myopia refers to "focusing on products rather than customers. Marketing myopia is a term used in marketing as well as the title of an important marketing paper written by Theodore Levitt
Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so Marketing objectives:
Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition Marketing objectives:
The term consumer research represents the process and tools used to study consumer behavior. The focus of marketing concept is consumer needs
ACQUIRED NEEDS
All the consumers have same biological needs. We also acquire needs after we are born. These needs are shaped by the environment and the culture in which we live, by our education, and by our experiences. These are know as acquired needs. There are usually many people who develop the same needs.
Process of dividing the market into subsets of consumers with common needs or characteristics
Developing a distinct image for the product in the mind of the consumer
POSITIONING
It refers to the development of a distinct image for the product or service in the mind of consumer, an image that will differentiate the offering from competing brands and communicate target audience that the particular product or service will fulfill their needs better than competing brand. Successful positioning happens when 1. communicating the benefits 2. USP
Service marketing mix Product Place Price Promotion People Process Physical evidence
Successful Relationships
Value, Satisfaction, and Retention
Value= customer perceived benefits/ customer cost or resources Customer perceived benefits include economic, functional, psychological Resources or cost includes monetary, time, effort, psychological
Successful Relationships
Value, Satisfaction, and Retention
The individual's perception of the performance of the product or service in relation to his or her expectations. P>E=DELIGHTED P=S=SATISFIED P<E=NOT SATISFIED
Successful Relationships
Value, Satisfaction, and Retention
The objective of providing value is to retain highly satisfied customers. Loyal customers are key They buy more products They are less price sensitive They pay less attention to competitors advertising Servicing them is cheaper, as they are aware of firms offering They spread positive word of mouth
Tracks costs and revenues of individual consumers Categorizes them into tiers based on consumption behavior A customer pyramid groups customers into four tiers
Tier 1: Platinum
Tier 2: Gold Tier 3: Iron Tier 4: Lead
CUSTOMER PYRAMID
Platinum: it includes heavy users who are not price sensitive and are willing to try new offerings Gold: they are heavy users but not as profitable because they are more price sensitive than platinum Iron: it consists of customers who are not profitable to company Lead: includes customers who cost to the company
The process of consumer decision making can be viewed as three distinct but interdependent stages 1. input stage 2. process stage 3. output stage
Input stage
The input stage influences the consumer recognition of product need and consists of two major sources of information. > the firms marketing efforts (4ps) > external influences The cumulative impact of each firms marketing efforts, and external influences acts as input that are likely to affect what consumer purchase.
Process stage
It focuses on how consumer make decision. The psychological factors inherent in each individual affect how the external inputs from the I/p stage influences recognition of need, prepurchase for information and evaluating alternatives.
Output stage
It includes two post-decision activities. > purchase behavior > post-purchase evaluations