Consumar Psychology Ppt

Consumer psychology

Customer ?

Consumer ?

Psychology ?

Need ?

Want ?

Desire ?

Attitude ?

Consumer psychology

• Consumer Decision Process The consumer's decision process consists of six basic stages: stimulus, problem awareness, information search, evaluation of alternatives, purchase, and post purchase behavior. A stimulus is a cue (social, commercial, or noncommercial) or a drive (physical meant to motivate or arouse a person to act).

A. Problem Recognition: Perceiving a Need

• Perceiving a difference between a person's ideal and actual situations big enough to trigger a decision.

• Can be as simple as noticing an empty milk carton or it can be activated by marketing efforts.

B. Information Search: Seeking Value

Internal search • Scanning one’s memory to recall previous experiences with products or brands.• Often sufficient for frequently purchased products.

External search • When past experience or knowledge is insufficient• The risk of making a wrong purchase decision is high• The cost of gathering information is low.

• The primary sources of external information are:

• Personal sources, such as friends and family.• Public sources, including various product-rating organizations such as Consumer

Reports.• Marketer-dominated sources, such as advertising, company websites, and

salespeople

C. Alternative Evaluation: Assessing Value

D. Purchase Decision: Buying Value

Three possibilities

• From whom to buy • When to buy • Do not buy

• which depends on such considerations – Terms of sale– Past experience buying from the seller– Return policy.

• which can be influenced by– store atmosphere– time pressure– a sale– pleasantness of the shopping experience.

E. Post purchase Behavior: Value in Consumption or Use

• After buying a product, the consumer compares it with expectations and is either satisfied or dissatisfied.

• Satisfaction or dissatisfaction affects – consumer value perceptions– consumer communications– repeat-purchase behavior.

• Many firms work to produce positive post purchase communications among consumers and contribute to relationship building between sellers and buyers.

• Cognitive Dissonance. The feelings of post purchase psychological tension or anxiety a consumer often experiences

• Firms often use ads or follow-up calls from salespeople in this post purchase stage to try to convince buyers that they made the right decision.

Consumer Market Segmentation

• Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate.

• Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status.

• Psychographic segmentation is based on variables such as values, attitudes, and lifestyle.

• Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.

Shopping Behavior and Social Classes• Shopping Behavior and Social Classes Shopping

behavior varies by social class. For example, a very close relation between store choice and social-class membership has been found, indicating that it is wrong to assume that all consumers want to shop at glamorous, high-status stores. Instead, people realistically match their values and expectations with a store's status and don't shop in stores where they feel out of place.

Finding Out Customers Expectations• Finding Out Customers Expectations To truly

understand customers' needs, companies can encourage and facilitate customers' feedback about problems. British Airways, for example, installed customer-complaint booths at Heathrow Airport where disgruntled passengers could air their grievances on videotape. Besides giving customers immediate relief from their annoyances, British Air found that the complaint videotapes gave vivid information to management about customers' problems and expectations

Consumer Value Orientation

• Consumer Value Orientation Assessing consumers' present and emerging value orientations can help the marketer identify new product opportunities and achieve better product positioning among consumer segments." For example, as values such as "pleasure," "an exciting life," "a comfortable life," and "self-respect" increase in importance, the marketer may find a need for having products with brand names, colors, and designs that enhance these important values.

Promotional Response Patterns

• Promotional Response Patterns Important class differences exist with regard to promotional response. The social classes have differing media choice and usage patterns. For example, readers of National Geographic and The New Yorker are typically of a higher class than the readers of Police Gazette, True Confessions, and The Star.

Black Box Model

Environmental Factors

• Marketing Stimuli • Product• Price • Place • Promotion

• Environmental Stimuli• Economic• Technology• Political• Cultural• Demographic• Natural

Byers Black box

• Byers Characteristics• 1.Attitude• 2.Motivation• 2.Perception• 3.Personality• 4.Life style• 5.Knowledge

• Decision Process• 1.Problem recognition• 2.Information search• 3.Purchase decision • 4.Post purchase

behavior

Byers Responses

• 1.Product choice• 2.Brand choice• 3.Dealer choice• 4.Purchase timing• 5.Purchase amount

• Consumer Retention• Consumer Relation• Consumer Management• Con. Personalisation• One-to-one Marketing

Relationship Marketing