Presentation by:

i.

Waheed-uz-Zaman

ii. Ibad Bin Rashid

iii. Arsalan Mushtaq

Under guidance & supervision of our teacher:

Maam Batool Iqbal

Why do we need to study

Consumer Behavior?
Because no longer can we
take the customer/consumer
for granted.

Because people tend to

repeat behavior for which
they have been rewarded.

 It is the deep understanding of how

consumers behave as shoppers in different
channels and formats and using this insight
to benefit the brands, the retailers and the
shoppers
The core of Shopper Marketing is
Shopper Insight
Shopper insight needs to be
combined seamlessly with consumer
insight and brand and category
management to deliver the ultimate
goal of holistic 360 degree marketing

Influences on & of Consumer Behavior

PERCEPTION/
SENSATION

MARKET
RESEARCH

INFO
SEARCH

STRATEGY

CHOICES

COGNITION

AFFECT
PREFERENCES
BELIEFS

CONSUMER
COMMUNICATION
SOCIAL AND
OTHER INFLUENCE

 Understand how consumer cognitive

(thinking) processes and limitations, affect,
beliefs, social influences, and other
contextual factors influence consumer
decision making, choices, and behavior
Appreciate how these insights can be used
to design and implement effective marketing
strategies
Appreciate individual and segment
differences in process and outcome

 Consumers are becoming

loyal to brands and retailers that offer
a great value price tag AND a relevant,
more imaginative experience

Connecting with the Shoppers Needs and Motivation helps in

building Loyalty and Sales

It all begins with the NEEDS

of the SHOPPER

SHOPPING
NEED

CHANNEL
CHOICE

CONSUMPTION
OCCASION
BASED

PURCHASE
CHOICE

Grocery, Clubs,
Supercenters,
Drug, CR,
Mass; Value

SHOPPING
EXPERIENCE

Shopable stores are better positioned to capture unplanned purchases

Shop-ability = Anything that enables the shopper to make a faster,

easier, better decision

Higher Shop-ability

Greater Potential to Drive

Unplanned Purchases

What makes us shop where and for what?

Advertising is the art of convincing people to spend money
they dont have for something they dont need. Will Rogers
I have always believed that writing advertisements is the
second most profitable form of writing. The first of course
is ransom notes
Philip Dusenberry
advertising at its best is making people feel that without
their product, youre a loser. Kids are very sensitive to

that. If you tell them to buy something, they are resistant.

But, if you tell them that theyll be a dork if they dont,
youve got their attention. You open up emotional
vulnerabilities
(the commercialised child and the new consumer culture, Scribner, 2004)

No matter what type of store you walk intofrom the Apple store
to Wal-Martyou'll find all types of carefully engineered tricks
that get you to fork over cash. From the scent of coconut in the
summer clothes section to the end caps filled with junk you don't
want, stores are carefully organized in ways you may never notice.

 Color has a big impact on our shopping choices. Each color often
evokes or represents a feeling, and retailers use that to their advantage
Retailers want you to get lost in the store so you to see more of
their products. Take Ikea, for example. The store is structured in a way
that you're bound to get turned around and lost. This causes you to
see more than you need to, and in turn you end up with a couple more
items in your hand
Stores do this all the time with little add-on purchases. They'll
include a complementary pair of shoes next to some new jeans, or a
cell phone case that happens to match a skirt right next to it. They
want you to see yourself using or wearing what they're offering, so
they present it all in a way that your brain makes those connections
without you realizing it

 All those carefully designed stores aren't structured just to assault

your eyeballs with shiny objects. They're also about forcing you to touch
more things. Why? Because touching tends to lead to purchasing for
most of us

Essentially, the more time an item spends in your hand, the more likely
you are to purchase it. That means stores are structured so you're always
picking things up
Research shows that when people touch things they're more likely to
buy them, e.g.
if I go into one of those jean stores where everything is folded and organized, I
don't want to try and find my size because I know I'll just mess it up

 Cultural
Economic
Environmental and ethical
Personal
Physiological
Psychological
Social

These influencing factors can be summarized in 05 basic factors:

1. Internal or Psychological factors

2. Social factors
3. Cultural factors
4. Economic factors
5. Personal or Physiological factor

There are five questions that support any understanding of

consumer behavior:

I. What do they buy?

II. Why do they buy?
III. Who is involved in the buying?
IV. When do they buy?
V. Where do they buy?
The answers of these questions provide the understanding of the
ways in which buyers are most likely to respond to marketing
stimuli.

1. Internal or Psychological factors

a. Biogenic needs (core wants) :
They arise from physiological states of tension such as thirst, hunger
b. Psychogenic needs (secondary wants) :
They arise from psychological states of tension such as needs for
recognition, esteem

Products

Core want

Secondary want

Glasses Protection to eyes It should look good

Shoes

Protection to feet

Elegance in style

2. Social factors
Man is a social animal. Hence, our behavior patterns, likes and dislikes are
influenced by the people around us to a great extent. We always seek
confirmation from the people around us and seldom do things that are not socially
acceptable
The social factors influencing consumer behavior are:
a) Family, b) Reference Groups, c) Roles and status

2. Social factors
a. Family:
There are two types of families in the buyers life i.e.
Nuclear family and Joint family
Nuclear family is that where the family size is small and individuals have higher
liberty to take decisions

In joint families, the family size is large and group decision-making gets more
preference than individual
Family members can strongly influence the buyer behavior, particularly in the Asian
contest
The tastes, likes, dislikes, life styles etc. of the members are rooted in the family
buying behavior

2. Social factors
b. Reference group:
A group is two or more persons who share a set of norms and whose relationship

makes their behavior interdependent

A reference group is a group of people with whom an individual associates
It is a group of people who strongly influence a persons attitudes values and
behavior directly or indirectly
c. Roles and status:
A role consists of the activities that a person is expected to perform. Each role
carries a status
People choose products that communicate their role and status in society
Marketers must be aware of the status symbol potential of products and brands

3. Cultural factors
Culture is a set of beliefs and values that are shared by most people within a group
Culture influences considerably the pattern of consumption and the pattern of
decision-making
Marketers have to explore the cultural forces and have to frame marketing strategies
for each category of culture separately to push up the sales of their products or
services
For example, food is strongly linked to culture. While fish is regarded as a delicacy in
Bengal, and the Bengalis boast of several hundred different varieties, in Gujarat.
Rajastan or Tamil Naru, fish is regarded as mostly unacceptable food item

4. Economic Factors
Economic factors that influence consumer behavior are:
a) Personal Income, b) Family income, c) Income expectations, d) Savings,

e) Liquid assets of the Consumer, f) Consumer credit, g) Other economic factors

5. Personal or Physiological factor

Age of a person is one of the important personal factors influencing buyer behavior.
People buy different products at their different stages of cycle. Their taste, preference,
etc also change with change in life cycle
Life style to a persons pattern or way of living as expressed in his activity, interests
and opinions that portrays the whole person interacting with the environment
Physiological factors include persons physical features e.g. weight, hairs, height,
strength etc.

 Access : can people get the goods or services they need or want?
Choice : is there any?
Safety : are the goods or services dangerous to health or welfare?
Information : is it available, accurate, accessible and useful?

Fairness : are some consumers unfairly discriminated against?

Redress : if things go wrong, is there a system for putting them right?
Representation : do consumers have a say in how goods or services are
provided?

You Were Spotted !

Cultural
Economic

Environmental and ethical

Personal
Physiological
Psychological and
Social

Taken from the What factors influences consumer

behaviour, match the character(s) to the activity
and say what the influencing factors is !

1. Spottedshopping for chilies,

sausages and sweet potatoes at
Saturdays Farmers Market.

2. Spottedbuying fresh haddock

reduced to 1 because its nearing
its use-by date.

3. Spotteddisposing of used
plastic carrier bags at the
supermarket collection bin.

5. Spottedloading a trolley with

half price bedding plants and
compost.

4. Spottedcoming back from the

sales, trying to juggle several
shopping bags whilst chatting on
the mobile.

6. Spottedat the till,

filling a rucksack with
shopping essentials.

8. Spottedat the electrical counter

in Tesco discussing the merits of a
camera phone with the salesperson.

10. Spottedat the cinema with a

home-made picnic of sandwiches,
crisps and fruit juices.

7. Spottedqueuing at a
late night Spar to buy
milk.

9. Spottedtaking
delivery of shopping
which was ordered
online.

Shopper found dead in local store; cause of death

boredom
Stanley Marcus, Chairman-Emeritus, Neiman Marcus

Objectives of the Store Environment

Get customers into the store (store image)

Serves a critical role in the store selection process

Important criteria include cleanliness, labeled prices, accurate and

pleasant checkout clerks, and well-stocked shelves

The store itself makes the most significant and last impression

Once they are inside the store, convert them into customers
buying merchandise (space productivity)

The more merchandise customers are exposed to that is

presented in an orderly manner, the more they tend to buy
Retailers focusing more attention on in-store marketing
marketing dollars spent in the store, in the form of store design,
merchandise presentation, visual displays, and in-store
promotions etc.

Objectives of Good Store Design

Design should:

be consistent with image and strategy

positively influence consumer behavior

consider costs versus value

be flexible

recognize the needs of the disabled The

Americans with Disabilities Act