10. Branding and Consumer Behaviour

8/2/2019 10. Branding and Consumer Behaviour

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CONSUMER BEHAVIORConsumer behavior is the study of how people buy, what they buy, when they buy and why they buy. Itattempts to understand the buyer decision makingprocess, both individually and in groups. It studiescharacteristics of individual consumers such asdemographics, psychographics, and behavioural variables in an attempt to understand people's

wants .



Buying BehaviorDefinition :

The decision process and acts of people involved inbuying and using products.

How does the buyer make purchasing decision?

What factors influence consumer purchases?



Need to analyze buying behaviorWhat, Where, When & How – Marketing Mix.Helps predict how consumers will respond tomarketing strategies.Great impact on the success of firms marketingstrategy.



Types of consumer buying behaviorRoutine Response/Programmed BehaviorLimited Decision Making

Extensive Decision MakingImpulse Buying



Routine Response / ProgrammedBehavior

Frequently purchased low cost items.

Low involvement required.

Little search and decision effort

Purchased almost automatically.



Examples- routine response



Limited Decision Making Occasional buying. When information is needed for a unfamiliar brand ina familiar product category.Requires a moderate amount of time for informationgathering.Loyalty to a brand



Examples- limited decision



Extensive Decision MakingComplex process- requires high involvementunfamiliar, expensive, infrequently bought products.

High degree of economic/performance/psychologicalrisk.Lot of time spent seeking information and deciding.



Examples- extensive decision



Impulse BuyingBasis - purchase of the same product does not alwayselicit the same Buying Behavior.

Reason determines the extent of decision-making.

No conscious planning.



Examples- impulse buying

THIS or THIS ??going for the dinner- reason can be an anniversary

celebration, or a meal with a couple of friends.



Perception

The process by which anindividual selects,

organizes, and interpretsstimuli into a meaningfuland coherent picture of the

world.





Companies or Retailers mark up prices before putting themup on sale. -- Bargaining behavior Discounts offered by reputed companies are genuinereduction in prices.-- Wait for the discount announcementCelebrities are admired by their followers though they donot use the product they endorse. -- Success of soaps and cosmeticsLower price generally means inferior quality. Higher priced brands are not superior in quality by the same degree of multiplier. --Positioning at a lower quality end, as done byHaier, LenovoShopping in a big departmental store saves money.-- BigBazaar, SubhikshaPackaged ready-to-eat food items marketed in India are generally not fresh.-- Limited success of MTR, ITC foods



Influencing factors:Cultural FactorsSocial FactorsPsychological Factors

The marketer must be aware of these factors in order todevelop a appropriate marketing mix for its target market.



Cultural FactorsCultural factors exert the broadest and deepestinfluencea) Cultureb) Subculture,c) Social classare particularly important in buying behavior.

M U



Mar eters must Un erstan

Indian Culture in Order to Succeed Ford cars specially designed for Indian roads.Electrolux's made‐for‐India fridge –chill drinking water, keeps food fresh & withstands long power cuts.Samsung – microwave oven with grill.Nokia launched a handset “Made for India ” Nokia 1100.

McDonald’s Mc Aloo Tikki Burger & Pizza McPuff.Cartoon Network-introduced South Indian folk tale “ Tenali Ram”. Walt Disney cartoon TV shows are in Hindi.Omegawatches picked an Indian film personality to replace CindyCawford in its ad campaign.Coca‐Cola

has redesigned its crates as well as trucks for safe delivery on poor roads



Social FactorsConsumer’s wants, learning, motives etc. areinfluenced by family, reference groups, social class

A) Roles and StatusB) Family C) Reference group



Psychological Factors A person’s buying choices are influenced by 4 majorpsychological factors

1. Motivation2. Perception3. Learning4. Beliefs & attitudes



Consumer Buying Process



Evaluation of Alternatives

Purchase Decision

Post-purchase Behavior

5 Stage Model of

the ConsumerBuying Process

Need Recognition

Information Search



Need Recognition (awareness of need)The buying process starts when the buyerrecognizes a problem or need.

The need can be triggered by internal ,external,marketing stimuli.Ex.- person’s normal needs-hunger/ thrust –risesto threshold level and becomes a drive.



1. PROBLEM RECOGNITION Difference between the desired state and theactual condition.

Example:By seeing a commercial for a new pair of shoes,

stimulates your recognition that you need a newpair of shoes.Hunger stimulates your need to eat.



2. Information search An aroused consumer will be inclined to search formore information

Internal search- memory.External search- if he needs more information.Friends and relatives (word of mouth); Marketerdominated sources; comparison shopping; publicsources etc.



Contd..Helps buyer find possible alternatives- i.e- the evoked set .Hungry- want to go out and eat,evoked set is

Chinese foodIndian food etc.



3. EVALUATION OF ALTERNATIVES Need to establish criteria for evaluation, features thebuyer wants or does not want.Rank/weight alternatives.

Example:If you want to eat something spicy, then Indian food

gets the highest rank etc…



Evaluation of Alternatives-Competitor brand informationConsumer evaluation process

1. The consumer is trying to satisfy the needs.2. The consumer is looking for certain benefits from

the product solution.3. The consumer sees each product as a bundle of

attributes for delivering the benefits sought tosatisfy these needs



Contd.. Attributes of interests to buyer :

Cameras : picture, sharpness, size ,priceHotels: Location ,cleanliness, atmosphere, price

If not satisfied with your choice then return to thesearch phase.



4. Purchase decision-In evaluation stage the consumer form preferencesamong the brandsIn this phase-Choose buying alternativeincludes product, package, store, method of purchase ,Incentives offered, out of stock, budget etc.



Consumer



4. PURCHASE DECISION :Choose buying alternative, includes product,package, store, method of purchase etc.

5. PURCHASE :May differ from decision, time lapse between

purchase decision and the actual purchase, productavailability.



6.Post-Purchase Evaluation-

outcome:Satisfaction or Dissatisfaction.Have you made the right decision?

This can be reduced by warranties, after salescommunication etc.It is the outcome Satisfaction or Dissatisfaction. Thiscan be reduced by warranties, after sales

communication etc.

Ex: After eating an Indian meal, may think that really you wanted a Chinese meal instead of Indian.



so where to start



everywhere



People Cluster Imagebuild

Communities



To influence Consumer Behavior

MakePeople

Friends

10. Branding and Consumer Behaviour

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