Consumer Behaviour

Definition and scope of consumer

Behavioral role of consumer

Behavioral in the marketing Development of consumer Behavioral field-consumer behavioral modelsHoward nSheth model of Buying behaviour.

Consumer Behaviour
Introduction Consumer behaviour is an applied Science of study. It also says how having or not having the possession of goods influences ourselves and others, because consumers are moved by complex set of emotions. Today's market, organizations (business) survive only because of the existence of consumers (results in success and failure). What are the issues the marketers face are:
1. 2. What consumers think about products What do they think about improvement in the product.

3.How do they actually use products 4. What are their attitudes towards the product 5. Their role in the family and society (e.g loan, insurance, valuable and fancy goods) 6. Their hopes and dreams for themselves and the family. (investment) Definitions of CB According to James F Engle and Roger BlackwellCB refers to the action and decision process of people who purchase goods and services for personal consumption.

Barden CB refers to the mental emotional process and the physical activities of people who purchase and use goods & services to satisfy their wants and needs. (planning and experiencing purchasing) Leon schiffman and Leslie Kanuk. CB is the behaviour that consumers display in searching for, and purchasing, using and disposing of products & services that they expect to satisfy their needs.- which says consumer search for the goods before they are bought to market. e.g water purifier, vacuum cleaner, microwave etc.

Consumer and customer

Consumer may be of two kinds personal consumer who buy goods for his own personal use. Organizn consumer purchase the goods to advertise it to its customer -who are regular to that product. customer includes consumer. Role of CB in marketing The sellers should firstly understand the buyers around them and make the appropriate marketing plans to reach them which means in the continuous changing envt the marketer need to carefully study the behaviour of the customer.

Consumers are of two main categories;

1. Domestic consumers (buyers) 2. Industrial consumers (buyers) 1. Domestic consumers: India is the largest consumer market after china because of the different geographical, cultural, traditional and religious differences. and customers demand for the specific product ( influences the marketer) Buying behaviour is also influenced by other psychological concept such as perception, motivation and personality which will help the marketer to generate and adopt customized product.

The effort to create customer value chain is

Identify customers advertise and communicate customer wants

Proper distribution

induce customer trial

offer personalized products and brands

customer experience

result from the customer

Industrial consumers/ buyers Buy goods to expand their industrial activities. The differences in these both is the ultimate object of buying. Domestic consumers buy for their need satisfaction. Industrial buyers to make profit or to improve their operation efficiency ( RM, semi finished goods, parts, equipments etc. engineering designs ) Developments in consumer Behaviour field Diversified preferences of buyers Special needs, lifestyle and personality of buyers Technological developments (introduction of no of new products which meets the customers wants and needs)

4. Shorter product lifecycles: fast pace of product introduction shortens the life of othe products by modifications, improvements, replacements ( hmt watches, ambassadors ( maruti in 1984),laptops etc.) 5. Environmental concerns: resource shortage, growing population, public policy and health and consumer interests in it makes the marketers to for new product. E.g high detergents, disposable bottles, polythene bags etc. 6. Consumer protection movement: give correct information to the customer.
7. Public policy: in local, state and central levels awareness to the customers & 8. growth of inetrnational markets

CB insights from economics Economic theory describes man as a rational buyer who has infn about the market. He compares the goods price, quality and charecterstics carefully. These purchasing power of a man influenced by the income, family size and responsibility. Purchasing power of man is used toconvert the production into consumption. Marketing analysis is interested in examining the effect of changes in income of individuals. Consumer credit has influenced the buying power

Consumer behaviour and other fields

Consumer behaviour and other fields

Buyer behaviour and psychology Studies of learning and response from the consumers have made the marketers to learn the consumer behaviour. The factors influencing learning are: a) repetition: in presenting the product through advertising no repetition without modification. b) Motivation: motivating the consumer with both satisfying and pleasing. c) Condition: it is way of learning by which the company create the impression in the minds of consumers in the market through their symbols, brand name, colors,taste or packeging. d) relationship: created by the orgn with the consumer.

Consumer behaviour and other fields

Buyer behaviour- insight from sociology & psychology Buying capacity depends on social class, family tradition and culture or control by the elders.

Consumer models
A model can be defined as a simplified representation of reality that interest the model builder ignoring the complexity of the situation to create the relevant fact about the concept. The Economic Model In this model consumers follow the pricnciple of maximizing the utility based on the law of diminishing marginal utility. Consumer spends minimum amount for maximizing the gains. This model is based on Price effect: lesser the price more purchasing power(daily usage products)

Consumer models
Substitute product: lesser the price of substitute product, lesser the utility of original product(buy one get one free, free along with the product, buy two for leser price etc.) Income effect: more income more purchasing power Comments: this model is not complete acdg to behavioural scientist as it concentrate only on the price of the product. Learning Model (pavlovian theory) He experimented on a dog and came to a conclusion that Learning is the changes in behaviour which occurs by practice and previous experience.

Consumer models
Drives: It is a strong internal stimulus, which impels action because of the drive eg, food, thirst, pain relief etc. Reinforcement: When a person has a need to buy and when he is attracted to buy there is a stimulus and he purchases and be satisfied.
drive an activated unsatisfied want that must be strong enough to satisfy Reinforcement leads to repeated purchase

Learning takes place through trial and expereince

Consumer models
Psychoanalytical Model (maslows hierarchy needs) This model says that the behaviour of a person at a particular time is determined by his strongest need at that time which shows that needs have priority to satisfy first. Motivation starts with need and to want (luxurious goods)
5. Self actualization. Self fulfillment 4.Ego needs: prestige,status, success, self-respect etc 3. Social needs: affection, friendship, belonging, etc 2. Safety and security needs: protection orderstability etc. 1. Psychological needs: food, water, air shelter etc.

Consumer models
The howard sheth Model This model says that consumer behaviour is complex preocess . Learning perception and attitude influence consumer behaviour. It has four sets variables 1. Input : necessary for the consumer to make decision. a. significance stimuli: which is tangible like price, quality, service etc, b. Symbolic stimuli: tangible but shows it is different. Like price high or low,quality etc.

Consumer models
c. Social stimuli: influence by the family, friends and other groups. 2. Perceptual and learning constructs: Which says motives, attitudes and perception influence the consumer decision process Output: means purchase decision leads to satisfaction or dissatisfaction. Satisfaction - positive attitude and increase brand image Dissatisfaction - negative attitude

Individual influence on consumer behaviour Motivation, personality and perception It is a basic drives in individual, which enable a man to act in a particular way. Element are: Innate needs: Acquired needs: emotional and psychological like prestige, esteem and through seeing and learning. Goals: result after motivated behaviour.( general goal or specific goal)

Positive or negative motivation Positive is driving force toward the product Negative is driving force taking away from certain product for safety. Rational vs emotional :consumer selecting goal based on total objective criteria such as size, weight, price etc Emotional motive selection of goals acdg to personal or subjective criteria ( pride, fear or status) Frustration: failure to achieve a goal. Reasaon may be limited resources to attain that goal.

Defense mechanism for frustration:

Aggression: expressing anger for not achieving. Rationalization: giving reason for not achieving Projection: blame on others Withdrawal: if not satisfied or get result from the product withdraw the interest from it. Identification: of the alternative Repression: forget the product which you have not got.

McClellands theory of need achievement It is based on three basic motivating psychological need they are; 1. Needs for power: to have control over otherspowerful owners 2. Affiliation needs: social concern for socializing to gain something which will have social acceptance and approval of friends and society. 3. Achievement need: which is closely related to both esteem need and self actualization needs and strive to achieve it. ( Reaching the specific position or gaining something)

Vrooms expectancy theory

This theory believes that an Individuals motivation will be based on the expectation from a particular behaviour and this behaviour will lead to certain outcome and preference for that outcome. Eg. Holiday packages what the customer expect form the offeror. Or hotel The marketer has to increase the perceived value of the product.

Freuds psychoanlytical theory

this theory contributes to the usage personality. That the unconscious psychological needs of drives are the route forces determining human motivation and personality. Human personality is made up of three main interdependence forcesId- innate component of the personality which is inborn character remains stable in individual for certain wants and demands. The persons with Id try to come out of the tension of not getting his choice- compromises

The ego: mental images or compromising does not

satisfy ones needs or wants. The person strive to get the things without compromisation.
The marketer has to understand the behaviour of each individual and react to it.

The super ego: it represents the internalized

representation of the values and morals of the society. It decides whether the action is right or wrong according to the standards of soceity. Persons satisfy their needs acdg to the standard of society.

(Application of Freuds theory to CB) Trait theory, Personality and consumer: CB on personality has 2 properties 1. Individual difference: study helps in
categorizing the consumers and promotional campaigns.

2. Personality consisting and enduring: may

change due to psychological, cultural and surrounding changes. The marketer can change the personality of individual creating motivation and influence them to accept the product.

case study of Chevrolet and Ford: According to the findings the user of For were attracted with the variables likeindependence, impulsive, masculine, alert, change and self confident. Chevrolet- conservative, prestige, conscious, less masculine, seeking to avoid extremes. 2. Case study of user of instant coffee and filtered coffee.
Two findings were user of instant coffee lazy and busy

self image and product image: person buying the products to frame himself in the society, family and to the surrounding. It creates brand image( AB- Reid & taylor) Positioning the product in the market with prestige Strengthens the personal seeling. Good marketing to the high society Continuous innovation required.

Learning attitude and personality

Elements of learning: Motivation Cues- to direct the motives Response- reaction to a drive Reinforcement- increases the likelihood that a specific response will occur. types of learned behaviour Physical behaviourSymbolic learning and problem solving Affective learning

Classical conditionimg theory:

Based onivan pavlov theory: This theory used by marketers as a device to branding and product strategies.

Reference groups and social influence

In 1995, a vicious rumor spread across the US about on e of the countrys most beloved companys films including Aladdin and the Lion King, contained sexually oriented subliminal messages. Although Disney denied the rumors, the co was left with a number of questions. Where did these rumors come from? Why did people believe them? Who started them? And what should the company do about them.

Reference groups and social influence

The rumors apparently had a long chain of influence. They were reported to the general public by a credible source- the associated press-got the story from a journalist at another paper- got the story from an article in a news letter published by religious group. When contacted the group said that they got it from a father who heard the story from his daughter who in turn heard from her friend who in turn heard it from her brother. and wrote a letter to religious group.

Reference groups and social influence

The Disney said that the purported offensive line was actually scat, good tiger. Take off and go. Which was complained as all good teenagers take off your cloths. From lion the king. The word Sex is spelled out in a dust cloud. The lesson that Disney learned was to make the information clear to viewers. (controversy)

A product or company in its infancy has no real meaning. But it acquires meaning from its environment, and it changes as the environment changes. This chapter explores some important issues about the topic of social influence of when and why individual and mass media affect consumer behaviour. Groups can induce not only socially appropriate consumer behaviour, but also socially inappropriate and personally destructive behaviours. Eg; excess consumtion of alchohol, drugs, cigars etc.

Meaning of group and reference group

Group is collection of people who have similar set of needs and goals.

Reference group is a set of people with whom individuals compare themselves to guide their attitudes, knowledge and behaviour and their consumption behaviour.

 Different types of reference group Three types of groups can be described Aspirational reference groups: where person admire or wish to be like. influenced by their living and lifestyles.( Nike sportswear depended on the associated ref group to reach the aspirational reference group) associative reference group: where a person do belong to. Eg: a member of a family and friends, member of a particular work group, geographic or ethnic group etc.( these group influence first group, joining to particular college)

 dissociative reference group: are the group whose behaviour and attitude we disapprove. A countrys culture or products may be against to the citizens of other country.
Marketing implications: the marketer have to first understand and find its target consumers Aspirational or associative reference groups and associate their product with that group. Can be done through market research Eg: introduction of new Ford aspire The lowest priced car with standard dual air bags.

the persons with whom we have frequent contact-primary contact. less contact represents secondary reference. The behaviour of these reference group can be influenced with appropriate right communication- ads strenth and strong ties with the consumers.( shopping malls after purchase use these strategies. Formalities: reference groups vary in their formalities. requirements to be satisfied before targeting them. Eg, admissions to colleges and fulfillment of rules.

Density: the group of people who know one another. Degree of identification: some are identified by the society and some not or rejected . The marketer can take owm effort to influence and impress them giving the knowledge of the product. Eg: American Cancer Society target individual consumer agents and rely on their interpersonal networks. Tupper wares marketing with certain reference group and chain communication

The general source of influence to the reference groups are: Marketing dominated groups via mass media: Advertising, sales promotion, publicity and special events. Eg;Nescafe apart from ad they have sales promotion by conducting special events. Market dominated sources delivered personally: salespeople, service representatives, customer service agents. Non marketer- dominated sources deliverd via mass media:

Critics giving awareness to consumers of certain product is been a strong impact on consumer behaviour. Eg: critics of movie suggesting the viewers about the movie. Opinion leaders giving their opinions to the public. Where the consumers rely on such opinions. Non marketer dominated sources tend to be more credible - delivered mass media. The marketer should be aware of these information.

Questions: 1. Keep a word of mouth log for 24 hours and documenta) what information u heard b) whether it was positive or negative c) what effect u think it will have on ur behaviour and d) why u think what implications the entries in ur log have for marketers.

Questions: 2. Observe a salesperson (of any product) trying to make a sale. try to understand which aspects of his selling attempts represents informational influence and which represents normative influence.
1. Was his segmentation right 2. Was the salesperson successful in inducing a sale? 3. Was he right in positioning the product to the right person What concepts from this chapter may explain and why or why not? Give ur comments on this chapter.

Questions: 3. As a marketing manager for a brand of diet hot chocolate u have recently learned of a rumor indicating that a key ingredient in the hot chocolate causes cancer. How can u stop this rumor from doing further damages .

Toys with 2 products. Mr Stephen Beddoe, GM distribution and Marketing of Amway India is planning to run a advertisement campaign, Advertisement agency Rediffusion is handling this account. What factors Me. Beddoe should suggest to Rediffusion to take into consideration while using group appeal for advertisement.

Amway corporation is a US $5 billion company based at michian USA. Established in 1995.amway India is wholly owned subsidiary of Amway corporation. It has a distributor base of 300000 and growing rapidly. Distribution networks spreads across 26 cities serving more than 306 locations. Amway india has emergede as the largest selling company of a country. Amway manufactures 450 products. Flagship product lines are personal care with 8 products, home care with 10 productss, nutrition with 3 herbal product, and soft

The family

The family
Meaning and function of family: It is defined as two or persons related by blood, marriage or by adoption living together. Family is both primary and reference group. Family vs household Household is consisting of people living together but not by any relation. Functions of family 1. Economic well being: economic security providing financial support by both husband and wife. Rapid changes in the family traditional concept .

The family
2. Emotional support: emotional nourishmentlove, affection where one member in the family gives the moral support to the other in decision making and social problems. Applicability to the marketer: Understand the feelings and emotions of the family in Indian context manufacture such goods and service to solve their problems and bring satisfaction. ( greeting card companies, gift hampers and other materials. Various other personals to advice the youngsters in the family.

The family
3. Matching family lifestyles: upbringing such products
that suit the family lifestyles and fulfill their needs. Eg ; TV channels, restaurants for individuals and family fast food for working people with no time to cook. Quality time to be given for family. 4. Socialization of family members: includes moral religious principles, interpersonal skills, dress and grooming standards and educational and living standards in the society.

Marketers target parents in the growth of their children in learning various social skills. Provide and establish various foundation to build throughout the life.
Consumer socialization for children: observation as to how children adopt and learn consumption skills: a) Socialization directly related to consumption acquiring knowledge or skills, brands and materials. b) Socialization indirectly related to consumption- a young boy to buy his first razor and a girl to use her first fairness cream.

The family
Adult consumer socialization- is a continuous process in purchasing goods. eg: newly married couple establishing the new house hold, Retired couple moving from one place to the other develops new socialization. Inter generational socialization: intergeneration brand transfer. selling the second hand brand to the neighbor or other family friends.

The family
The evolving Indian family Indian family members rely more on the family. There is a great value and scope for the family since the ages. Even the purchasing decisions are made jointly( joint family) Today this institution is undergoing changes.
To know the reasons of change JWT conducted a research on 24 families from all over India called as DINKs Double Income No Kids from middle class anf higher class families.

The family
The objective was to identify the common pressures acting on each of these families and how they are responding to these. Their findings are as follows: 1. Family is changing because of media boom that has created high degree of awareness new generation is adopting western lifestyles. Indian proving themselves a successful.
2. Changes on the children both kids and the youngsters _ advice taken from their seniours and professionals rather than family which is the impact of the reference group. marketers have great impact on the families

Family decision making Marketer search for the one person who is a decision maker in the family. Eg: most cases women are the decision maker in purchasing the groceries or monthly ration. Furniture electronics, holidays, family planning, children future investments both take decisions, Investment husband alone take the decision. Role ion the family: role of husband and wife vary in the house. And marketer can target them based on their role.

Role children in the family Children from 4 to 15 age has influence on family decision. Has contributed $165b direct purchasing power and 400b dollar of their household to US economy and Around 15000 and 3500 crores to Indian economy. The reason behind it is the impact of TV. Advertisement for different age groups Age groups have been divided into 3-4, 5-7, 8-11,(1214,15-19 teen ages) Different materials and products introduced for different age groups. Marketers providing part time jobs for teenagers .

The family life cycle( FLC). The traditional family life cycles are: Stage1- Bachelor-hood: 54% of Indian population is below 25 years around 16 million(15-24years) Early youth 15-21 taking up education spends most on food, clothing and entetainment by parents support ( eg airtel, vodafone targeting these groups with low recharge and SMS) Middle youth 22-28 years: looking for jobs with good income spends more on food, clothing, consumer durable goods and entertainment.

The family life cycle( FLC). :Stage2- honey Mooners: main marketers are travel agency, mehandiwalas, photographers etc.
In India every year 50000 crores have been spent on wedding. The estimated gift spend is 6-10 lakh in each wedding. Wedding expenditure rising 20% every year Eg: kenstar washing machine and other house hold goods concentrate on woman who just started their household sensitiveness and emotions.

The family life cycle( FLC). :Stage3- parent hood: first child or next child spend more on the family Stage4- post parent hood: Stage 5 dissolution; death of spouse. The surviving spouse either living without the second marriage or marrying to other person and entering a new family life,

y
Culture and consumer behaviour
what is culture? It stands for the whole of that compounds which impounds in its compound everything about its knowledge, beliefs, art, morals, laws, customs, habits and other capabilities that he has acquired by human as a member of society. Culture is a distinctive way of group of people and their complete design for living( differs from one family to another, society- state- religion- country ) Culture also include the practices, attitudes, habbits and ethics

Characteristics of culture 1. Culture is invented: human have invented and it is not existing. 2. Culture is learnt: it is not inborn, it is acquired knoweldge from the family or society.( formal or informal) formal- learned in the family informal- learned outside languages and symbols- verbal or non verbal symbols. rituals - make the buyer believe in the product 3. Culture is shared: cross culture 4. Culture are similar: differ from one society religion to the other.calander, cooking books

5. Culture is gratifying and persistant: practices some customs on certain events and days which is again different is each religion.it continous generation. 6. It is adoptive- anyone can copy-traditions it is adaptive- it gradually changes inspite of strong resistance into modernisation. 7. Culture fixes norms violation of the norms will lead to social disapprovement and may be punishable Applicability to marketer; Marketer study the culture of different classes and society and launch their products acdg to it.
Those who believe education certain ads reflecting the value the people place on their education

The success stories of HDFC, ICICI, assuring the families to enjoy their lives even after retirement. Change in the consumption pattern of individual effect of cross culture Measurement of culture 1. Content analysis: it is used to know as to what cultural and social changes have occurred in a particular society. Spoken words, practices etc. 2. Consumer field work: study of small sample of people from a particular society about their preferences and changes. Which is done by the researchers. 3. Value measurement survey instrument: questionaire or survey methods used by the resea

Through this the clear conclusions can be given by the researchers. different types of value instruments are1.The rokeach value survey ( RVS): consists of two partsFirst part consist of 18 terminal value- items which are designed to measure the relative importance of end states of existence personal goals.
Second part consist of 18 instrumental value items which measure basic approaches an individual might take to reach end- state value.

2. The list of values ( LOV): which is designed to be used in surveying consumers personal values. Asked to identify consumers two most important values based on terminal values used in RvS. They are: 1. A comfortable life 2. an exciting life 3. A world at peace 4. equality 5. Freedom 6. happiness 7. national security 8. Pleasure 9. salvation 10. social recognition 11. True friendship 12. wisdom 13. a world of beuty 14. Family security 15. mature love 16. Self respect. 17.inner harmony 18. sense of accomplishment.

3. Value And Lifestyles( VALS) introduced by the marketing researchers of America in 1978.dividing the American adults into nine distinct value 4. The Yankelovich Monitor: which is a commercial research which systematically tracks social trends designed to reflect a variety of cultural values introduced in 1976.

Exercise-1
pick three product service categories that you think will have consumption differences across different religious subcultures. Design a questionnaire to assess major consumption patterns for each of these products/services and administer it to at least five consumer in each of the major subcultures. Summarize the responses and answer the following questions: 1. How do these cultures vary in terms of consumption? 2. How would marketing efforts differ across the groups?

Exercise-2 a travel service has hired you to develop a

marketing strategy for a vacation package. It has decided that the different packages will be offered for different classes. Develop a complete package and marketing strategy for each of the following; 1. The upper class 2. the middle class and 3. the working class. Discuss 1. service offered ( including destination, accommodations etc.)2. pricing 3. advertising message and 4. media targeting. summarize the key difference among the three marketing strategies.

Unit 4 Consumer decision making process

The process by which a person is required to make a choice from various alternative option is referred to as the decision making. The changing market environment provides a careful study of consumer decision making. Different views of consumer decision making 1. Economic model: as per this model the consumer will allocate his expenditure over different products at given prices rationally to maximize the utility.

2. The passive view or model: this model perceives consumers to be impulsive who take irrational purchase influenced by the promotional offers of the marketers. This model is criticized, as it fails to consider consumers opinion consumer always decides about their purchasing.
3. The cognitive view or model: in this model the consumer will look for the goods which will not only enrich him but also enrich his life. Consumers are involved in seeking information.

4. An impulsive or emotional view of consumer: Consumers emotionally purchasing the product out of emotions, whims and impulsive. Eg: baby toys, household materials, gifts etc.
5. Product motives: the impulses, considerations and desires that induces a person to be positively inclined to purchase a product are called product motives.

Types of decision making process It can be examined in two levels By examining the extent of decision making By understanding the consumers degree of involvement in the purchase.
Decision making behaviour complex decision making & limited (information search evaluation decision making Alternatives) Habit (little or no information - brand loyalty (grocerries,shoes Search, considers only one brand - tissues, vegetables etc.

Consumer information search processing Consumer collect the information about the product when there is a need recognition.
Search is of two typesInternal search motivated activities of knoweldge stored in a memory. 1. Brands recall 2. Recall of attributes 3. Recall of evaluation 4. Recall of experience.

External search- heard from outsiders but not experienced such product or When the consumer finds internal search inadequate he goes for external search. They arepre-purchase search Ongoing search

Consumer decision rules: consumers take decision based on different criteria they give to the product. These rules are divided into two types,
1. Compensatory: the weighted additive rule works out the value of all the attributes of alternatives and that alternative is chosen which get highest overalll score. Eg; buying decision of A/C by the customer. 2. Non compensatory rule: which does not allow the customers to strike out the positive evaluation of brand against the negative evaluation of some other attributes. Eg: laptop buyer

These decisions are as follows; a) Lexicographic decision rule: lexicographic producer first decides which is the most important attribute and then examines the value of that attribute of various alternatives in consideration set.( till he gets the maximum score.)

b) Conjunctive decision rule: the consumer decides the alternatives and considers the value of each attributes and examines whether it meets predetermined cut off level and below the cut off level is rejected from consideration.

c) Disjunctive decision rule: where consumer establishes minimum acceptable cutoff usually higher than the conjunctive rule. Eg if two brands
qualify for selection preference is given to first brand

The consumer decision is generalized:

Assess the attributes of various option depending upon its attributes. Common features of different alternatives are removed and distinct features of various alternatives are considered ( if he goes for brand) Strict utility function independently Reduction of errors

Critical analysis of decision rules:

In consisting processing often all information for every alternatives and all their attributes have to be examined and explained to enable the consumer to take decision. Decision also depend on the knowledge of the consumer and the seller. One size fit all retail stores

One size fit all retail stores

Modern trade in India account for 3-4% of all retail trade . Retail store trade is the rapid growing segment where the products are positioned to reach the ultimate consumers. Examples of certain companies working through the retail store. 1. LG appointed the account manager to handle and coordinate with chain stores.( discounts, payments or marketing initiatives). 2. Marico industries appointed the strategic manager for a modern promotion. Modern trade accounts to 7% of companies revenue. 3. Cadbury has its own distributors. 4. Paanwalas, chemist, cosmetics stores gaining in overall changing schemes. Particular distributor like contractors for seling of paints, iron rod

Post purchase process/stage: There are four purchase results for the consumers 1. He learns whether his perception of his product is right or wrong. 2. He acquires knowledge about the product. 3. He learns he is satisfied or not. 4. Disposition about the product after the use. This also depends on the factors like customer previous experiences.

Customer has the low motivation to learn. But for the new product more motivation to learn leads to fast learning.

Disposition or disposal: means throwing away of meaningless or used product/product without any thought. Either at less value in the market, Donating such product, Exchanging it with new one Recycle Sell to person who cannot afford new products Discarding the product when there is no buyer or value.
This may take place not only for economic reasons but also like social and psychological factor too.

After the purchase customer cognitive dissonance: Post purchase dissonance is when customer has perception after the purchase that he has not the right decision. Dissonance give rise to discomfort. Customer starts questioning his decision with the reference group. The level of satisfaction level depends partly on purchase expectations and post use satisfactions associated with the feelings of customer. (coca cola) Perceived performance may lead to positive or negative disconfirmation.

Applications for marketers in this theory: 1. The expectation created by marketer through advertisement must be fulfilled by actual performance, otherwise it will lead to dissatisfaction fall in sales. 2. If the actual performance is at par with expectation of consumers, but when the consumer perceives it less . The marketer can make him aware about the product performance. 3. If it is performing below the expectation or actual promise company have to improve the performance. conclusions Always actual performance should be better than expectations. Then it will lead to satisfaction otherwise it leads to dissatisfaction of consumer.

Diffusion of innovation
The rate of adoption , or the diffusion rate has become an important area of research to sociologist and more specifically to advertisers. It is of significance to advertisers interested in creating an integrating marketing plan targeting a specific audience.
Diffusion process is one which is the spread of new idea from its source of invention or creation ( communicated through various channels) to its ultimate users or adopters. Diffusion process occurs within society. Adoption process occurs to an individual through the mental process

Diffusion of innovation

Innovation An innovation is an idea, practice, or a object that is percieved as a new through technology. Eg: Amazon .com from innovated products (books) to videos. consumption cycle of the customer starts at the need recognition an ends at the post purchase of the customer.
Eg: Oral B introducing the blue dye at the centre of brush to make consumer realize the usage of brush.

The innov ation useful is determined by the user rate of customer.( S curve slope or steep curve)

Diffusion of innovation

five elements of diffusion are-innovation,

communication channel, time and social system
1. innovation Five factors determining the slope of curve of innovation is Relative advantage better compared to the existing product ( degree of advantage, economic terms, social prestige, convenience and satisfaction to he customers. E.g.; TATA nano, size of the TV Compatibility - is the degree to which an innovation is perceived as being consistent with the existing values and needs of potential buyers.( usage pattern of the product)

Diffusion of innovation
Complexity - is the degree to which an innovation is difficult to understand and use. E.g.: blackberry usage for the tech savvy's

Trialability is the degree of which where the innovation is experimented by the buyer or consumer. ( samples provided or services provided.

Observability is the degree of which the results of an innovation are visible to others. ( the result of the innovations should be visible to the user. Eg: medicine impact on the patients.

Diffusion of innovation
2. Communication channels: communication channels should motivate and influence the viewers or individual to adopt the product innovated. Eg: involving reference groups etc.eg : santro ad given by SRK
3. Time of adoption: There are five adopter categories or classifications of the customers on the basis of their innovativeness; innovators, early adopters, early majority, late majority and laggards ( last 16% of adoption who adopt the innovation)

Diffusion of innovation

Innovators are the first 2.5% of the customer in the market.

They are cosmopolites.

Early adaptors are the next 13.5% of the customers in the market. They are localities has the greatesst degree of opinion leadership. They act as role model for the early majority customers by conveying the innovations.
Early majority is the next 34% of the customers who adopt the innovations before the average customers. Late majority next 34% in the market they adopt unless there is economic necessity.