Group Introduction

QASIM SHAHZAD
YAHYA AMIN ANAM SALEEMI

204
205 228

Consumer Behavior
Is the mental and physical activity undertaken by household and business consumers that result in decisions and actions to pay for, purchase, and use products.

Consumer Roles
Buyer

User

payer

Consumer Need and Wants

Need: A need is an unsatisfactory condition of the consumer that leads him or her to an action that will make the condition better.
WANT: A want is a desire to obtain more satisfaction than is absolutely necessary to improve an unsatisfactory condition.

Difference b/w NEEDS and WANTS

The difference between a need and want is that need

arousal is driven by discomfort in a person, while wants occur when human desire to take their physical and psychological condition.
Needs and wants are also differ because the factors that

cause them are different.

Consumer needs are determined by the physical

characteristics and wants are determined by the socioeconomics context.

Determination Of Needs
Three Physical Characteristics Of The Individual Person Determine Needs;
1.Genetics. 2.Biogenics. 3.Psychogenics.

Genetics and Biogenic

Genetics: Genic is the branch of science that deals with the heredity and chemical/biological characteristics of organisms. People in different parts of the world have different clusters of gene types, and their food and beverage habits and needs differ accordingly.
Biogenic: Biogenic characteristics create obvious differences. Many consumption decisions are attempts to satisfy biogenic needs.

Psychogenic:
Refers to the study of individual states and traits induces by a person's brain functioning .Thus, modes swings and emotional state necessitate the consumption of certain product. Although these are not traditionally considered needs. Consumers often buy products to satisfy a need based on their mood or emotion.

Physical characteristics of the environment

1.Climate includes conditions such as temperature, altitude, rainfall, which affect consumer's need for food, clothing, and shelter. 2.The topography of a geographic area refers to the physical condition of the location on earth, the spatial profile of the territory, and the presence of bodies of water.

3.Ecology: The 3rd physical characteristic of the environment that influences consumer needs is ecology, which includes the quality of air, the ozone layer, and the food chain.

Determination Of Wants:
Personal worth: refers to the financial resources available to a consumer these comprise person's income ,assets ,inheritance, and borrowing power. Institutional relationships: context refers to the groups and organizations a person belongs to .The institutional context includes the workplace, religious and educational institutions, family and friends ,and peer groups.
Cultural surroundings context: culture influence consumers is pervasive ,for culture shapes everything we do ,desire ,or become.

The environmental context of Wants

1.Economy: Refers to economic development and business cycles in a nation's economy. The economic level of a nation ,the level of inflation, unemployment rate ,and wage and income growth, all have an impact on consumers. 2.Technology: The environmental influence of technology on consumers' wants is manifested in many ways 3.public policy : Public policy is especially related to market behavior .Public policy refers to government law and regulations that control human behavior

Perception
Is the process by which an individual selects, organizes and interprets the information received from the environment.

Steps in perceptual process:

Sensation:

Usually refers to the immediate, relatively unprocessed result of stimulation of sensory receptors in the eyes, ears, nose, tongue, or skin.
Attention

In consumer information processing, attention occurs when a person lingers and gives mental processing capacity to the external stimulus from a product or brand.
Interpretation

Interpretation occurs when a person assigns a meaning to the sensory stimulus from a product or brand marketing.

Factors that shape perception

Stimulus characteristics:

The nature of the information from the environment.

Context:

Is the setting in which the information is received this includes social , cultural, and organizational context.
Consumer characteristics:

Personal knowledge and experiences including the consumers expertise on the relevant topic and prior experience with similar stimuli.

Learning
Learning is the life long process of transforming information and experience into knowledge, skills, behaviors, and attitudes.

Mechanisms of Learning
Classical conditioning: Classical conditioning is a type of conditioning and learning process in which something that had not previously produced a particular response becomes associated with something that produces the response. Marketer use this principle in pairing their brand with a likeable celebrity .e.g. CK perfume is more youthful because of the teenage models used in the brands advertising.

Instrumental conditioning: We learn to respond in certain ways because they are rewarding. Marketer use this learning mechanism through instrumental conditioning when they make the product its own intrinsic reward. Modeling: We learn by observing others. Children learn much of their social behavior by observing the elders around them. We may model our behavior on social status , or people who are superior in intelligence.

Motivation
Internal and external factors that stimulate desire and energy in people to be continually interested in and committed to a job, role, or subject, and to exert persistent effort in attaining a goal.

Components of Motivation:
Drive or arousal : A drive is an internal state of tension that produces actions purported to reduce that tension. Goal-object: A goal-object is something in the external world whose acquisition will reduce the tension.

Facets of Motivation
1. Consumer needs 2. Consumer Emotions 3. Involvement 4. Psychographic 5. Attitude

Consumer Needs
There is nearly infinite number of possible needs a human could posses. To make sense of them, psychologists and consumer researchers have suggested various categories of needs. Among the most relevant to marketers is Maslows needs hierarchy.

Consumer Emotions
Its no secret that emotions influence peoples decisions about what, when and how they buy. consumers choices are often guided by how they expect their purchase will make them feel. For example, parents take decision about children on emotion basis.

Consumer Moods
Moods affect our behavior of the moment in general and our response to the marketing activities to which we might be exposed at that time for this reason , moods are important to understand the marketers. There are some kind of moods :
1. Happy mood or sad mood. 2.Pensive mood or brain dead mood. 3. Irritated or pleased. 4.Asumed or bored.

Involvement
Involvement is the degree of personal relevance of a product to a consumer.
For example, some consumer who are interested in hunting may be involved with a decision to purchase guns. Others who have pets , but are no interested in hunting, may be involves in decision regarding pet foods rather than with guns.

Psychographics
Psychographics are characteristics of individual that describe them in term of their psychological and behavioral makeup.
Component of psychographics; 1- value 2- self concept 3- life style

Value
Values are end states of life, the goals one lives for. When you think about what is important to you in life, you are thinking about your values. Two groups of values: 1.Terminal values: Terminal values are the goals we seek in life .
2.Instrumental Values : are the means or behavioral standards by which we pursue our goals.

values
Self concept: Refers to the persons self image. Self concept influence a persons consumption deeply, for people live their self concept in large measure by what they consume. Life style: Along with what we think of ourselves and what we value.
Determined by these: A consumer personal characteristics His or her personal context Need and emotions

ATTITUDES
Attitudes are learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way. SEVERAL IMPLICATIONS: Attitudes are learned. That is ,they get formed on the basis of some experience or without information about the object. Attitudes are predispositions. As such they reside in the mind. Attitudes cause response. They precede and produce behavior.

Consumer Buying Beahvior

Problem recognition

Post Purchase

Information search

Purchase

Alternative evaluation

Problem Recognition
It is a consumers realization that he needs to buy something to get back to the normal state of comfort.
It occurs due: Internal stimuli: are perceived states of discomfort physical or psychological

External stimuli: are informational cues from the market place that lead a consumer to identify a problem

Information search
Consumer search for information about various alternative ways of solving the problem.

Sources of information categorized into Marketer and Nonmarketer.

Search strategies may be Routine based, Limited based and Extended based problem solving.

Alternatives Evaluation
Consumers select one of the several alternatives available to them.
Two broad categories of choice models: Compensatory: A rational decision-making model in which choices are systematically evaluated on various criteria.

Non-compensatory : It is model a relationship of undesirable attribute not being able to compensate by improving a desirable attribute.

Purchase
In purchasing, after the evaluation of alternatives consumer finally take the decision about product either it should purchase or not.

Post-Purchase Experience
Consumers decision process does not end with the purchase.
Post-purchase includes four steps: 1-Decision confirmation 2-Experience evaluation 3-Satisfaction or dissatisfaction 4-Future response