Course Instructor: Ms.

Shyama Labh
Email: shyama@asiapacific.edu
 Psychology
 Sociology
 Anthropology
 Marketing
 Economics
Because no longer can we take the
customer/consumer for granted.
 Outof 11000 new products introduced by 77
companies, only 56% are present 5 years
later.

 Only8% of new product concepts offered by

112 leading companies reached the market.
Out of that 83% failed to meet marketing
objectives.
 All managers must become astute
analysts of consumer motivation and
Behaviour
 No.
Because cross - cultural styles,
habits, tastes, prevents such
standardization.
 “Please leave your values at the desk” - Paris
hotel
 “The manager has personally passed all water
served here” - Acapulco restaurant
 Ladies are requested not to have children in
the bar.”- Norway bar
 Consumer

Marketing Buyer Buyer Buyer

4Ps
Environment Characteristics Decision Process Decision
 4 Ps

Product Price Place Promotion

 Marketing
Environment

Economic Technological Political Cultural

 Product Choice
 Brand Choice
 Dealer Choice
 Purchase Timing
 Purchase Amount
 Cultural
 Social
 Personal
 Psychological
 Broadest and deepest influence on consumer
behavior.
 Culture is the total way of life …the way we eat,
dress, celebrate, mourn, gift etc.
 We are Indians-
1.Made in U.S. is good quality.
2. Kellogg's struggling with cornflakes in India.
 Culture
 Sub - culture
 Social Class
 Smaller segments in
a culture.
 Religions, racial
groups, geographic
regions
 Things we buy
influenced by
subculture.
 South Indians prefer
stronger coffee.
 North Indian women
more open to
western wear.
 Diwali is a gift giving
time for Hindus.
 Person’s relative standing in a social hierarchy due to
unequal social system-

1.Persons within each class behave more alike than persons

from two different classes.

2.People are perceived to be occupying inferior or superior

positions according to their social classes.

3.A person’s social class is indicated by a number of

variables such as occupation, income, wealth, education
and value orientation.

4.Individual’s can move from one social class to another in

their lifetime.
 People with same income
could be different social
classes-difference being
taste.

 Effect
of social class on
consumer behavior-

1.Change of clothing brands

from local to branded to
designer.
 Reference Groups
 Family
 Roles and Status

All groups that have a direct or indirect influence on their attitudes

or behavior.
Primary groups: (family, friends, neighbors, coworkers)
Secondary groups: (religious, professional groups)
 Reference groups effect our
consumption.
 Provides information that helps
us evaluate products and
brands.
 We choose some brands to
enhance our image with the
reference groups or to signal to
others that we belong to a
particular reference group
 Family-The mo st impo rtant primary reference group.

Family of Orientation:One’s parents,significant influence o n behavio r even when away,some brands are bought just because parents always used them- car, toothpaste, washing detergent.


Family of Procreatio n:One’s spouse and children, Husband-wife involvement varies by pro duct category
1.Husband:life insurance,automobiles,television
2.Wife:washing machines,carpeting,furniture,kitchenware
3.Equal:vacation,o utside entertainment

1.Role consists of activities a person is expected to
perform. Each role carries a status.
2.Person’s participation in any group can be defined in
terms of roles and status.
3. Role changes-Daughter to mother to business executive.
4. Each role is associated with a status-
An MNC executive has more status than an office clerk
5.People choose products that communicate their role and
status in a society
Personal Factors
 Family Life Cycle
 Occupation and Economic circumstances
 Lifestyle
 Personality and self - concept
The Family Life Cycle
 A blue collar worker will buy work
clothes, work shoes and lunch boxes.
 A company president will buy
expensive suits, air travel and
country club membership.
 Economic circumstances consist of
spendable income, savings and
assets, debts, borrowing power,
attitude toward spending versus
saving
 Patternof living in the world as expressed in
the person’s activities, interests and
opinions.

 Peoplefrom same subculture ,social class

and occupation may have different lifestyles.
 Personality:Person’s distinguishing
characteristics that lead to relatively
consistent and enduring responses to his or
her environment.

 Traits-confidence, dominance, adaptability,

sociability etc.
 Personality
 Consumer brand choice depends on one’s
personality-consumers are likely to chose
brands whose personalities match their own

 Brand personality: specific mix of human

traits that may be attributed to a particular
brand
 Self concept
A person's self image.
(How she/he view’s herself/himself, how she
would like to view herself and how others view
see her)
 People buy products that appeal to their self
image.
 Motivation
 Perception
 Learning
 Beliefs and Attitudes
 Rational motives  Emotional motives
 Based on reasoning,  Feelings that emerge
perceived as rational without careful thought
reason to buy something. or consideration of
social consequence.
 Motives of convenience,
 People often unwilling
price, performance, to admit these motives
endurance, delivery, time openly
and reliability
A motivated person is ready to act. His action
depends on his perception.
 Processesby which an individual selects,
organizes and interprets information inputs to
create a meaningful picture of the world.
 Peoplecan have different perceptions of same
object because of three perceptual processes:
 Selective attention: people are exposed to loads of
stimuli everyday,100s of ads. They selectively pay
attention to only some and screen out the rest.
 Marketers always looking for ways to catch this
attention.

 Selective Distortion: Every stimuli we notice does not

come across as the sender intended it to be. It is the
tendency to twist information and interpret in a way
that will fit our preconceptions.
 Selective Retention:

 People will forget much about that they learn, but

will remember information that supports their
attitudes and beliefs.

 That’s why we remember some good things about a

brand and forget about competing brands.

 Reason for marketers using drama and repeating their

messages
A disposition toward an idea, a person, a
thing or a situation-favorable or unfavorable.
3 components of attitude-
1.Cognitive
2.Affective
3.Behavioral
 Cognitive component:
Beliefs and knowledge about something.
E.g.-Levi’s is the world’s leading brand of

jeans.

 Affective component:
Feelings about something.
E.g.-Levis is the best jeans
 Behavioral component:
Action taken represents behavioral component.
e.g.-purchasing a pair of levis jeans or
recommending it to the friends.
 Marketing strategy is based on the fact that
cognitive ,affective and behavioral component
tend to be consistent!
 Situations can change the way attitudes predict
behavior.
 Initiator
 Influencer
 Decider
 Buyer
 User
 High Low
Involvement Involvement

Significant
differences Complex Variety-
Between brands Buying Seeking
Behavior Behavior
Few differences Dissonance-
Between brands
Habitual
Reducing Buying Buying
Behavior Behavior
 Complex – Buyer develops beliefs; attitude about the
product and then take decision.

 Dissonance – Reducing :
Consumer is highly involved in a purchase but sees little
difference.

 Habitual : Frequent purchase of products; absence of any

significant brand differences. Eg: Commodities

 Variety seeking: Buying situation with significant brand

differences. Consumer evaluate the brand during
consumption. Brand switching.
 Problem Recognition
 Information Search
 Evaluation of Alternatives
 Purchase Decision
 Post purchase behaviour
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition

Need Recognition
Difference between an actual state and a desired state

Internal Stimuli •External Stimuli

• Hunger • TV advertising

• Thirst • Magazine ad

• A person’s normal • Radio slogan

needs
•Stimuli in the
environment
 •Family, friends, neighbors
Personal Sources •Most influential source of
information

•Advertising, salespeople
Commercial Sources •Receives most information
•from these sources

•Mass Media
Public Sources •Consumer-rating groups

•Handling the product

Experiential Sources •Examining the product
•Using the product
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product Attributes
Evaluation of Quality, Price, & Features

Degree of Importance
Which attributes matter most to me?

Brand Beliefs
What do I believe about each available brand?

Total Product Satisfaction

Based on what I’m looking for, how satisfied
would I be with each product?

Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
 Purchase Intention
Desire to buy the most preferred brand

Attitudes Unexpected
of others situational
factors

Purchase Decision
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 5.
5. Post
Post purchase
purchase Behavior
Behavior
Consumer’s Expectations of
Product’s Performance

Product’s Perceived
Performance

Satisfied
Satisfied Dissatisfied
Dissatisfied Customer
Customer
Customer!
Customer!
Cognitive Dissonance
Awareness

Interest

Evaluation

Trial

Adoption
Diffusion/Adoption of Innovation

 The new product ideas or innovations take

time to diffuse and get adopted in the
market place.
 Propounded by Everett M. Rogers.
 People differ in terms of their risk taking
capability and attitude towards change.
 Effect on willingness to try and adopt a new
product.
Percentage of Adopters

Early Majority Late Majority

Innovators

Early 34% 34% Laggards

Adopters
13.5% 16%
2.5%
Time of Adoption
Early Late
…….any query ???