CONSUMER BEHAVIOUR CONSUMER BEHAVIOUR
CONSUMER BEHAVIOURCONSUMER BEHAVIOUR
CONCEPT OF CONSUMER BEHAVIORCONCEPT OF CONSUMER BEHAVIOR
““The study of consumer behavior is the study of The study of consumer behavior is the study of how individuals make decisions to spend of what how individuals make decisions to spend of what they buy, why they buy it, when they buy it, they buy, why they buy it, when they buy it, where they buy it, where they buy it, how often where they buy it, where they buy it, how often they buy it, and how often they use it.they buy it, and how often they use it.““the decision process and physical activity the decision process and physical activity individuals engage in when evaluating, acquiring, individuals engage in when evaluating, acquiring, using, or disposing of goods & services”.using, or disposing of goods & services”.
SEVERAL ASPECTSSEVERAL ASPECTS Customers and ConsumersCustomers and Consumers The Ultimate ConsumerThe Ultimate Consumer Individual buyerIndividual buyer The decision processThe decision process A Subset of Human BehaviorA Subset of Human Behavior
Buying MotivesBuying MotivesDEFINITION:DEFINITION:
According to W.J Stanton,According to W.J Stanton,““A motive can be defined as a drive or A motive can be defined as a drive or
an urge for which an individual seeks an urge for which an individual seeks satisfaction. It becomes a buying satisfaction. It becomes a buying motive when the individual seeks motive when the individual seeks satisfaction through the purchase of satisfaction through the purchase of something”.something”.
Behavior is a goal directed activityBehavior is a goal directed activity
Motive/NeedMotive/Need Goal Goal (preparing)(preparing)
(Hungry)(Hungry)
GoodsGoods(Food)(Food) Behavior Behavior Goal Goal
AchievementAchievement(Eating)(Eating)
CONSUMER GOODSCONSUMER GOODS INDUSTRIAL GOODSINDUSTRIAL GOODS1.1. Used by end user for Used by end user for
their own consumptiontheir own consumption2.2. Generally inexpensiveGenerally inexpensive3.3. Are less complexAre less complex4.4. Are purchase frequentlyAre purchase frequently
1.1. Used for further Used for further production of other production of other goods (raw materialgoods (raw material))
2.2. Are expensiveAre expensive3.3. Are more complexAre more complex4.4. Are one time purchase Are one time purchase
goodsgoods
IMPORTANCE OF CONSUMER BEHAVIORIMPORTANCE OF CONSUMER BEHAVIOR
The study of consumer behaviour is vital in The study of consumer behaviour is vital in framing production policies, price policies, framing production policies, price policies, decisions regarding channels of distribution and decisions regarding channels of distribution and above all decisions regarding sales promotion.above all decisions regarding sales promotion.
1.1. Production PoliciesProduction Policies2.2. Price PoliciesPrice Policies3.3. Decision regarding Channels of DistributionDecision regarding Channels of Distribution4.4. Decision regarding Sales PromotionDecision regarding Sales Promotion
MODEL OF BUYER BEHAVIOURMODEL OF BUYER BEHAVIOUR
MAJOR FACTORS INFLUENCING BUYING BEHAVIOUR MAJOR FACTORS INFLUENCING BUYING BEHAVIOUR MARKETINMARKETING STIMULIG STIMULI
OTHER OTHER STIMULISTIMULI
PRODUCTPRODUCTPRICEPRICEPLACEPLACEPROMOTIONPROMOTION
ECONOMICECONOMICTECHNOLOGICTECHNOLOGICALALPOLITICALPOLITICALCULTURALCULTURAL
BUYER’S BUYER’S CHARACTERISTICHARACTERISTICSCS
BUYER’S DECISION BUYER’S DECISION PROCESSPROCESS
CULTURALCULTURALSOCIALSOCIALPERSONALPERSONALPSYCHOLOGICALPSYCHOLOGICAL
PROBLEM PROBLEM RECOGNITIONRECOGNITIONINFORMATION SEARCHINFORMATION SEARCHEVALUATION OF EVALUATION OF ALTERNATIVESALTERNATIVESPURCHASE DECISIONPURCHASE DECISIONPOST PURCHASE POST PURCHASE BEHAVIOURBEHAVIOUR
BUYER’S BUYER’S DECISIONSDECISIONSPRODUCT CHOICEPRODUCT CHOICEBRAND CHOICEBRAND CHOICEDEALER CHOICEDEALER CHOICEPURCHASE TIMINGPURCHASE TIMINGPURCHASE AMOUNTPURCHASE AMOUNT
WHY WE STUDY COUNSUMER WHY WE STUDY COUNSUMER BEHAVIOR/BEHAVIOR/IMPORTANCE OF CONSUMER IMPORTANCE OF CONSUMER BEHAVIORBEHAVIOR
IMPORTANCE OF CONSUMER BEHAVIOR
IMPORTANCE FOR CONSUMER IMPROTANCE FOR MARKETING
IMPORTANCE FOR STUDENTSAPPLICATION TO DECISION MAKING
APPLICATION OF CONSUMER APPLICATION OF CONSUMER BEHAVIORBEHAVIOR
APLICATION OF CBAPLICATION OF CB
CB AND
MKTING MGMT
CB & NONPROFIT&SOCIAL MKTING
CB & DE-MKTING
CB & CONSUMER EDUCATIONS
CB & GOVT’AL DECISION MAKING
CB AND MARKETING CB AND MARKETING MANAGEMENTMANAGEMENT
The process of planning and executing The process of planning and executing 1.1. The conceptionThe conception2.2. PricingPricing3.3. PromotionPromotion4.4. Distribution of ideasDistribution of ideas5.5. Goods & services to exchangesGoods & services to exchanges6.6. Satisfy individual and organizational objectives.Satisfy individual and organizational objectives.
Three interrelated orientations are:Three interrelated orientations are:
Consumer wants & needs
Company objectives
Integrated strategy
Several major activities can be undertaken by an organizationSeveral major activities can be undertaken by an organization
Market opportunityAnalysis
Target market selection
Marketing mix determinants
needs Unique market
wants
income
lifestyle
Ex: soft drinks
Food store segments
Vending machinesegments
The fountain market
PRODUCT
PRICE
PLACE
PROMOTION
CONSUMER BEHAVIOR & NONPROFIT & SOCIAL MARKETINGCONSUMER BEHAVIOR & NONPROFIT & SOCIAL MARKETING
A number of writers have suggested that various A number of writers have suggested that various social and non profit organisations can be viewed social and non profit organisations can be viewed as having services or ideas that they are as having services or ideas that they are attempting to market to target group of attempting to market to target group of “consumer” or “constituents.“consumer” or “constituents.
MARKET SEGMENTATIONMARKET SEGMENTATION
CONCEPT & DEFINITIONCONCEPT & DEFINITIONThe concept of market segmentation is based on the fact that the The concept of market segmentation is based on the fact that the
market of commodities are not homogenous but they are market of commodities are not homogenous but they are heterogeneous. Market represent a group of customers having heterogeneous. Market represent a group of customers having common charecteristicesbut two customers are never common in common charecteristicesbut two customers are never common in their nature, habits,hobbies, income and purchase techniques.their nature, habits,hobbies, income and purchase techniques.
Definition of segmentationDefinition of segmentationAccording to Philip Kotler, “whenever a market for a According to Philip Kotler, “whenever a market for a
product or service consists of two or more buyers, product or service consists of two or more buyers, the market is capable of being segmented, that is the market is capable of being segmented, that is divided into meaningful buyer groups. The divided into meaningful buyer groups. The purpose of segmentation is to determine purpose of segmentation is to determine differences among buyers which may be differences among buyers which may be consequential in choosing away then or consequential in choosing away then or marketing to them”.marketing to them”.
LEVELS OF MARKET SEGMENTSLEVELS OF MARKET SEGMENTS
SEGMENT MARKETINGSEGMENT MARKETING NICHE MARKETINGNICHE MARKETING LOCAL MARKETINGLOCAL MARKETING INDIVIDUAL MARKETINGINDIVIDUAL MARKETING
IMPORTANCE OF MARKET SEGMENTATIONIMPORTANCE OF MARKET SEGMENTATION
ADJUSTMENT OF PRODUCT AND MARKET APPEALSADJUSTMENT OF PRODUCT AND MARKET APPEALS BETTER POSITION TP SPOT MARKETING OPPORTUNITIESBETTER POSITION TP SPOT MARKETING OPPORTUNITIES ALLOCATION OF MARKETING BUDGETALLOCATION OF MARKETING BUDGET MAKING THE COMPETITION EFFECTIVELYMAKING THE COMPETITION EFFECTIVELY EVALUATION OF MARKETING PROGRAMMEEVALUATION OF MARKETING PROGRAMME EVALUATION OF MARKETING ACTIVITIESEVALUATION OF MARKETING ACTIVITIES INCREASE IN SALES VOLUMEINCREASE IN SALES VOLUME
CONSUMER BEHAVIOUR MODELSCONSUMER BEHAVIOUR MODELS
INPUTINPUT
PROCESSPROCESS
OUTPUTOUTPUTINITIATION:INITIATION:
INFLUENCER INFLUENCER
DECIDERDECIDER
Decision framework for studying Decision framework for studying consumer consumer behaviourbehaviour
External environmental variables External environmental variables influencing behavior,influencing behavior,
Individual determinants of behaviour,Individual determinants of behaviour, The consumer decision processThe consumer decision process
BUYING ROLES/ PARTICIPANTS IN THE BUYING ROLES/ PARTICIPANTS IN THE BUYING PROCESSBUYING PROCESS
INITATORS:INITATORS: The person who first suggest & think of the idea of buying the particular The person who first suggest & think of the idea of buying the particular product.product.
INFLUENCER:INFLUENCER:The person who explicitly or implicitly has some influence on the final buying The person who explicitly or implicitly has some influence on the final buying decision of others.decision of others.
DECIDER:DECIDER:the decider is a person who ultimately determines any part or whole of the the decider is a person who ultimately determines any part or whole of the buying decision, i.e., whether to buy, what to buy, how to buy, when to buy, buying decision, i.e., whether to buy, what to buy, how to buy, when to buy, or where to buy. or where to buy.
BUYER:BUYER:the buyer is the person who actually purchase. Buyer may be the buyer is the person who actually purchase. Buyer may be decider or may be other person. decider or may be other person.
USER:USER:the person who actually uses or consumes the services or products.the person who actually uses or consumes the services or products.
EXTERNAL ENVIRONMENTAL VARIABLE INFLUENCING EXTERNAL ENVIRONMENTAL VARIABLE INFLUENCING BEHAVIOURBEHAVIOUR
INDIVIDUAL DETERMINANTSINDIVIDUAL DETERMINANTSInformation processingInformation processingLearning and memoryLearning and memoryPersonality and self conceptsPersonality and self conceptsAttitudesAttitudesMotivation and involvementMotivation and involvement
INDIVIDUAL DETERMINANTS OF BEHAVIOURINDIVIDUAL DETERMINANTS OF BEHAVIOUR
CULTURAL INFUENCESCULTURAL INFUENCES SUBCULTURAL INFLUENCESSUBCULTURAL INFLUENCES SOCIAL CLASS INFLUENCESSOCIAL CLASS INFLUENCES SOCIAL GROUP INFLUENCESSOCIAL GROUP INFLUENCES FAMILY INFLUENCESFAMILY INFLUENCES PERSONAL INFLUENCESPERSONAL INFLUENCES OTHER INFLUENCESOTHER INFLUENCES
DECISION PROCESSDECISION PROCESS
PROBLEM RECOGNITION
INFORMATION SEARCH AND EVALUATION
PURCHASING
POST PURCHASING BEHAVIOUR
Consumer beliefs and attitudesConsumer beliefs and attitudes InnovatorsInnovators Consumer confidenceConsumer confidence Buying stylesBuying styles techno graphicstechno graphics
CONSUMER INNOVATOR’SCONSUMER INNOVATOR’S
INNOVATORSINNOVATORS
SEGMENTATION OF EARLY ADOPTERS SEGMENTATION OF EARLY ADOPTERS OF NEW PRODUCTS AND SERVICESOF NEW PRODUCTS AND SERVICES
KEY CONSUMER BELIEFSKEY CONSUMER BELIEFS If a product is made by a company I If a product is made by a company I
trust I will buy it even if it is slightly trust I will buy it even if it is slightly more expensive.more expensive.
I buy based on quality not on price.I buy based on quality not on price. I am willing to pay more for the I am willing to pay more for the
product that is environmentally safe.product that is environmentally safe. I always check the ingredients and I always check the ingredients and
nutritional contents of food products nutritional contents of food products before I buy them.before I buy them.
I buy the brand I grew up with the I buy the brand I grew up with the one my mother used.one my mother used.
I would pay extra for a product that I would pay extra for a product that is consistent with the image I want to is consistent with the image I want to conveyconvey
I am influenced by what’s hot and I am influenced by what’s hot and what’s not.what’s not.
I prefer to buy the things by friends I prefer to buy the things by friends and my neighbors would approve of.and my neighbors would approve of.
Consumer Innovator Segments
Electronics Leisure Innovators Financial Food Home Appliance
INNOVATION ADOPTION MODELINNOVATION ADOPTION MODEL
DEVICED BY “Rogers”DEVICED BY “Rogers” Awareness and interest of the audience are Awareness and interest of the audience are
created by advertisers, so that the former created by advertisers, so that the former may evaluate the message of may evaluate the message of advertisement.advertisement.
The potential purchaser, if satisfied with the The potential purchaser, if satisfied with the attributes advertised, purchases a product attributes advertised, purchases a product on a trial basis. on a trial basis.
Product Comparision is made to evaluate Product Comparision is made to evaluate each and adopt a particular product.each and adopt a particular product.
INNOVATION ADOPTION MODELINNOVATION ADOPTION MODEL
INTEREST
EVALUATION
TRIAL
ADOPTION
AWARENESS
DEFFUSION OF INNOVATIONDEFFUSION OF INNOVATION
DIFFUSION OF INNOVATIONDIFFUSION OF INNOVATION DEFINITIONDEFINITION
““The framework for exploring The framework for exploring consumer acceptance of new consumer acceptance of new products is drawn from the area of products is drawn from the area of research known as the diffusion of research known as the diffusion of innovation”innovation”
PROCESSES OF INNOVATIONSPROCESSES OF INNOVATIONS
DIFFUSION PROCESSESDIFFUSION PROCESSES
ADOPTION PROCESSADOPTION PROCESS
MACRO PROCESS
MICRO PROCESS
DIFFUSION PROCESSDIFFUSION PROCESS This is concerned with how innovation This is concerned with how innovation
spreadspread Assimilation of product with the marketAssimilation of product with the market It is process of acceptance of an It is process of acceptance of an
innovation such as a new product, new innovation such as a new product, new services, new ideas, or new practices. services, new ideas, or new practices.
Mode of communication may be mass Mode of communication may be mass media, sales people, informal media, sales people, informal conversation.conversation.
Basic elements of diffusion processBasic elements of diffusion process
The innovation The channels of communication
The socal system time
INNOVATIONINNOVATION NO UNIFORM DEFINITON EXISTNO UNIFORM DEFINITON EXIST THERE ARE OTHER FACTORS DEFINE THERE ARE OTHER FACTORS DEFINE
THIS CONCEPTTHIS CONCEPT1.1. FIRM ORIENTED DEFINITIONFIRM ORIENTED DEFINITION2.2. PRODUCT ORIENTED DEFINITIONPRODUCT ORIENTED DEFINITION3.3. MARKET ORIENTED DEFINITIONMARKET ORIENTED DEFINITION4.4. CONSUMER ORIENTED DEFINITIONCONSUMER ORIENTED DEFINITION5.5. FACTORS INFLUENSING THE RATE OF FACTORS INFLUENSING THE RATE OF
DIFFUSIONDIFFUSION
FIRM ORIENTED DEFINITIONSFIRM ORIENTED DEFINITIONS
A firm – oriented approach treats the A firm – oriented approach treats the newness of a product from the newness of a product from the perspective of the company producing perspective of the company producing or marketing it. When the product is or marketing it. When the product is new to the company, it is considered new to the company, it is considered new. This definition ignores whether new. This definition ignores whether or not the product is actually new to or not the product is actually new to the market place.the market place.
PRODUCT ORIENTED DEFINITIONPRODUCT ORIENTED DEFINITION
In contrast to firm oriented In contrast to firm oriented definitions, a product- oriented definitions, a product- oriented approach focuses on the features approach focuses on the features inherent in the product itself and on inherent in the product itself and on the effects these features are likely the effects these features are likely to have on consumers established to have on consumers established usage patterns. usage patterns.
TYPES OF PRODUCT INNOVATIONTYPES OF PRODUCT INNOVATION
CONTINUOUS INNOVATIONCONTINUOUS INNOVATION DYNAMICALLY CONTINOUS DYNAMICALLY CONTINOUS
INNOVATIONINNOVATION DISCONTINUOUS INNOVATIONSDISCONTINUOUS INNOVATIONS
MARKET ORIENTED DEFINITIONSMARKET ORIENTED DEFINITIONS
It judges the newness of a product in terms It judges the newness of a product in terms of exposuresof exposures
Two definitionsTwo definitions A product is considered new if it has A product is considered new if it has
been purchased by a relatively small been purchased by a relatively small (fixed) percentage of potential market.(fixed) percentage of potential market.
A product is considered new if it has A product is considered new if it has been on the market for a relatively short been on the market for a relatively short (specified) period of time.(specified) period of time.
CONSUMER ORIENTED DEFINITIONCONSUMER ORIENTED DEFINITION
In this context, a new product is any In this context, a new product is any product that a potential consumer product that a potential consumer judges to be new. Newness is based judges to be new. Newness is based on the consumers perception of the on the consumers perception of the product, rather than on physical product, rather than on physical features or market realities.features or market realities.
FACTORS INFLUENCING THE RATE FACTORS INFLUENCING THE RATE OF DIFFUSIONOF DIFFUSION
Diffusion researchers have identified Diffusion researchers have identified six products characteristics that six products characteristics that seem to influence consumer seem to influence consumer acceptance of new products:acceptance of new products:
Relative advantagesRelative advantages CompatibilityCompatibility Trial ability (or divisibility)Trial ability (or divisibility) Observability (or Communicability)Observability (or Communicability) CostCost
CHANNEL OF COMMUNICATIONCHANNEL OF COMMUNICATION
WAYS OF COMMUNICATIONWAYS OF COMMUNICATION1.1. BETWEEN THE MARKET & CONSUMERSBETWEEN THE MARKET & CONSUMERS2.2. AMONG CONSUMERSAMONG CONSUMERS3.3. IMPERSONAL SOURCES SUCH AS IMPERSONAL SOURCES SUCH AS
ADVERTISING AND EDITORIAL MATTERSADVERTISING AND EDITORIAL MATTERS4.4. INTERPERSONAL SOURCES SUCH AS INTERPERSONAL SOURCES SUCH AS
SALES PEOPLE AND INFORMAL OPINION SALES PEOPLE AND INFORMAL OPINION LEADERSLEADERS
5.5. INTERACTIVE MARKETING MESSAGES INTERACTIVE MARKETING MESSAGES (NEW CONCEPT)(NEW CONCEPT)
SOCIAL SYSTEMSOCIAL SYSTEM
A social system is a physical, social, or A social system is a physical, social, or cultural environment to which people cultural environment to which people belong and with in which they function. belong and with in which they function. Characteristics of modern social system:Characteristics of modern social system:
1.1. A positive attitude towards changeA positive attitude towards change2.2. An advanced technology and skilled labour forceAn advanced technology and skilled labour force3.3. A general respect for education and science.A general respect for education and science.4.4. An emphasis on rational and ordered social An emphasis on rational and ordered social
relationships, rather than an emotional ones.relationships, rather than an emotional ones.5.5. An out reach prospectsAn out reach prospects6.6. A system in which members can readily see A system in which members can readily see
themselves in quite different roles.themselves in quite different roles.
TIMETIME
Time is the backbone of the diffusion Time is the backbone of the diffusion process. process. three ways three ways
1.1. Purchase timePurchase time2.2. Adopter categoriesAdopter categories3.3. Rate of AdoptionRate of Adoption
PURCHASE TIMEPURCHASE TIME
Purchase time refers to the amount Purchase time refers to the amount of time that elapse between of time that elapse between consumers initial awareness of a new consumers initial awareness of a new product or service and the point at product or service and the point at which they purchase or reject it. which they purchase or reject it.
ADOPTER CATEGORIESADOPTER CATEGORIES
It involves a classification scheme It involves a classification scheme that indicates where a consumer that indicates where a consumer stands in relation to other consumers stands in relation to other consumers in terms of timein terms of time
RATE OF ADOPTIONRATE OF ADOPTION
The rate of adoption is concerned with The rate of adoption is concerned with how long it takes a new product or how long it takes a new product or services to be adopted by members of services to be adopted by members of a social system. The general veiw is a social system. The general veiw is that the rate of adoption for new that the rate of adoption for new products is getting faster or shorter, products is getting faster or shorter, Ex. fashionEx. fashion
ADOPTON PROCESSADOPTON PROCESSAdoption
Trial
Legitimating
Attitude
Comprehension
Awareness
OPINION LEADERSHIPOPINION LEADERSHIP
OPINION LEADERSHIPOPINION LEADERSHIP
DEFINITION:DEFINITION:
““Opinion leaders are those people who are able, Opinion leaders are those people who are able, in a given situation, to expert personal influence”.in a given situation, to expert personal influence”.
CHARECTERISTICES OF OPINION CHARECTERISTICES OF OPINION LEADERSLEADERS
Social class positionSocial class position Greater exposure to mass mediaGreater exposure to mass media Greater interest and knowledge of the Greater interest and knowledge of the
areas of influenceareas of influence More gregarious More gregarious More innovativeMore innovative More familiar and loyal to group standards More familiar and loyal to group standards
and valuesand values Appear to exhibit the personality trait of Appear to exhibit the personality trait of
public individuation.public individuation.
MEASUREMENT OF OPINION MEASUREMENT OF OPINION LEADERSHIPLEADERSHIP
Consumer researches are interested Consumer researches are interested in identifying and measuring the in identifying and measuring the impacts of the opinion leadership impacts of the opinion leadership process on consumption behavior. process on consumption behavior.
BASIC MEASUREMENT TECHNIQUESBASIC MEASUREMENT TECHNIQUES
Self-Designating MethodsSelf-Designating Methods Sociometric MethodsSociometric Methods
1.1. The specific individuals to whom they The specific individuals to whom they provided advice or information about the provided advice or information about the product or brand under study product or brand under study
2.2. The specific individuals who provided them The specific individuals who provided them with advice or information about the with advice or information about the product or brand under study.product or brand under study.
Key informant Methods Key informant Methods Objective MethodsObjective Methods
USES OF OPINION LEADERSUSES OF OPINION LEADERSConsumers, generally, do not speak Consumers, generally, do not speak about products or services unless they about products or services unless they expect to derive some kind of expect to derive some kind of satisfaction from the activity. satisfaction from the activity.
1.1. Product- InvolvementProduct- Involvement2.2. Self- InvolvementSelf- Involvement
Gaining attentionGaining attention Showing connoisseurshipShowing connoisseurship Feeding like a pioneerFeeding like a pioneer Having Inside InformationHaving Inside Information Suggesting StatusSuggesting Status Spreading the GospelSpreading the Gospel Seeking ConfirmationSeeking Confirmation Asserting SuperiorityAsserting Superiority
3.3. Other- involvementOther- involvement4.4. Message - InvolvementMessage - Involvement
CONSUMER DECISION MAKING CONSUMER DECISION MAKING MODELMODEL
MEANINGMEANING
A process by which a person is required to A process by which a person is required to make a choice from various alternative make a choice from various alternative options is referred to as decision- making.options is referred to as decision- making.
Providing consumers with other alternative Providing consumers with other alternative is a good business strategy and can also is a good business strategy and can also result in substantial increase in sales. result in substantial increase in sales. While for the consumer, he or she will be While for the consumer, he or she will be pleased when able to choose and decide pleased when able to choose and decide on the best from the alternatives on the best from the alternatives available. available.
LEVELS OF CONSUMER DECISION LEVELS OF CONSUMER DECISION MAKINGMAKING
SPECIFIC LEVELS OF CONSUMER SPECIFIC LEVELS OF CONSUMER DECISION MAKINGDECISION MAKING
1.1. EXTENSIVE PROBLEM SOLVINGEXTENSIVE PROBLEM SOLVING2.2. LIMITED PROBLEM SOLVINGLIMITED PROBLEM SOLVING3.3. ROUTINIZED RESPONSE BEHAVIORROUTINIZED RESPONSE BEHAVIOR4.4. VARIETY SEEKINGVARIETY SEEKING
Extensive problem solvingExtensive problem solving
The consumer needs a great deal of The consumer needs a great deal of information to establish a set of information to establish a set of criteria on which to judge specific criteria on which to judge specific brands and a correspondingly large brands and a correspondingly large amount of information concerning amount of information concerning each of the brands to be considered.each of the brands to be considered.
The marketer has to ensure two tasksThe marketer has to ensure two tasks1.1. The marketer must continue to provide The marketer must continue to provide
satisfaction to the existing customers by satisfaction to the existing customers by maintaining quality, service and value.maintaining quality, service and value.
2.2. He must try to attract new customers by He must try to attract new customers by making use of sales promotion techniques making use of sales promotion techniques like point of purchase displays, off-price like point of purchase displays, off-price offers, etc., and also introduce new offers, etc., and also introduce new features to the products.features to the products.
LIMITED PROBLEM SOLVINGLIMITED PROBLEM SOLVING
Consumers already have established Consumers already have established the basic criteria for evaluating the the basic criteria for evaluating the product category and the various product category and the various brands in the category. Their search brands in the category. Their search for additional information is more like for additional information is more like “fine – tuning”, they must gather “fine – tuning”, they must gather additional brand information to additional brand information to discriminate among the various discriminate among the various brands.brands.
ROUTINIZED RESPONSE BEHAVIOURROUTINIZED RESPONSE BEHAVIOUR
Consumers have some experience with Consumers have some experience with the product category and a well- the product category and a well- established set of criteria with which established set of criteria with which to evaluate the brands they are to evaluate the brands they are considering. They may search for the considering. They may search for the small amount of additional small amount of additional information; they simply review what information; they simply review what they already know. they already know.
VARIETY SEEKINGVARIETY SEEKING
Some buying situation are Some buying situation are characterized by low involvement but characterized by low involvement but significant brand differences, here significant brand differences, here consumers often do a brand consumers often do a brand switching.switching.
CHARACTERISTICS OF CONSUMER PROBLEM- CHARACTERISTICS OF CONSUMER PROBLEM- SOLVING APPROACHESSOLVING APPROACHES
Routine Routine problem problem solvingsolving
Limited Limited problem problem solvingsolving
Extensive Extensive problem problem solvingsolving
Purchase Purchase involvementinvolvementlevellevel
LowLow MediumMedium HighHigh
Problem Problem recognitionrecognition
AutomaticAutomatic SemiautomatSemiautomaticic
ComplexComplex
Information Information search and search and evaluationevaluation
minimalminimal LimitedLimited extensiveextensive
Purchasing Purchasing orientationorientation
ConvenienceConvenience mixedmixed ShoppingShopping
Post purchase Post purchase processesprocesses
Very limited Very limited habit Brand habit Brand LoyalityLoyality
Limited Limited Inertia to Inertia to repurchase repurchase brand brand Switching if Switching if dissatisfactiodissatisfactionn
Complex Complex loyality if loyality if satisfied satisfied Complaints if Complaints if DissatisfiedDissatisfied
TYPES OF BUYING BEHAVIORTYPES OF BUYING BEHAVIOR
HIGH HIGH INVOLVEMENTINVOLVEMENT
LOW INVOLVEMENTLOW INVOLVEMENT
Significant Significant differences differences between Brandsbetween Brands
Complex Buying Complex Buying BehaviorBehavior
Variety seeking Buying Variety seeking Buying BehaviorBehavior
Few Differences Few Differences between Brandsbetween Brands
Dissonance reducing Dissonance reducing Buying BehaviorBuying Behavior
Habitual Buying Habitual Buying BehaviorBehavior
TYPES OF CONSUMER DECISIONSTYPES OF CONSUMER DECISIONS
WHAT TO BUYWHAT TO BUY HOW MUCH TO BUYHOW MUCH TO BUY WHERE TO BUYWHERE TO BUY WHEN TO BUYWHEN TO BUY HOW TO BUY HOW TO BUY
MODULE OF CONSUMER DECISION MODULE OF CONSUMER DECISION MAKINGMAKING
MODEL OF CONSUMER BEHAVIOURMODEL OF CONSUMER BEHAVIOUR
C.B. MODEL BY NICOSIAC.B. MODEL BY NICOSIA
SCHIFFMAN & KANUK MODEL SCHIFFMAN & KANUK MODEL
Field -1Field -1
SubSubFieldFieldOne firm One firm Attributes Attributes
Sub field Sub field one one Consumer Consumer AttributesAttributes
Attributes
Search Evaluate Field -2
Motivation
Decision (Action) Field -3
Purchase Behaviour
Consumption or Storage
Feedback
ExperienceField -4
C.B MODEL BY NICOSIA
L.G SCHIFFMAN & L.L.KANUK’S L.G SCHIFFMAN & L.L.KANUK’S MODEL OF CONSUMER DECISION MODEL OF CONSUMER DECISION
MAKINGMAKING
Firm’s Marketing Firm’s Marketing efforteffortProductProductPricePricePlacePlacePromotionPromotion
Socio cultural Socio cultural environmentenvironmentFamilyFamilyInformal sourcesInformal sourcesNon commercial Non commercial sourcessourcesSocial classSocial classSubculture andSubculture and cultureculture
INPUT
Need RecognitionNeed RecognitionPrepurchase Prepurchase searchsearchEvaluation of Evaluation of alternativesalternatives
Psychological Field•Motivation•Perception•Learning
•Personality•Attitudes
Experience
CONSUMER DECISION MAKING
PROCESS
output Purchases •Trial
•Repeat purchase
Post Purchase evaluation
MARKET MOVERSMARKET MOVERS