Marketing Presentation - Analyzing Consumer Markets.pptx

Analyzing Consumer Markets

By:Chetan Metkar(055)Darpan Thacker(056)Deepak Padhiary(057)

Analyzing Consumer Behavior

• Model of Consumer Behavior• Factors Influencing Consumer Behavior• Types of Buying Decision Behavior• The Buyer Decision Process

Topic Outline

Model of Consumer Behavior

Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption

Consumer market refers to all of the personal consumption of final consumers

Factors Influencing Consumer Behavior

Factors Influencing Consumer Behavior

Cultural Factors

Factors Influencing Consumer Behavior

• Culture is the learned values, perceptions, wants, and behavior from family and other institutions

• Values like individualism and freedom for American child where as respect for elders, honesty, hard work for Indian child.

• Example : In certain European countries professionals use bicycles to go to work which might not be appreciated in Indian scenario.

Cultural Factors

Factors Influencing Consumer Behavior

Subculture are groups of people within a culture with shared value systems based on common life experiences and situations

• Indian culture further breaks down to subcultures based on factors like geographies, language, etc.

Cultural Factors

Factors Influencing Consumer Behavior

Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors

• Measured by a combination of occupation, income, education, wealth, and other variables

• Example : Preference to channels varies according to social classes

Cultural Factors

Factors Influencing Consumer Behavior

Social Factors

Factors Influencing Consumer Behavior

• Reference Groups are the groups that have direct or indirect influence on person’s behavior.– Primary : family, friends, neighbors, coworkers– Secondary : religious, professional, trade-union

– Aspirational & Dissociative groups also play important role

Social Factors

Factors Influencing Consumer Behavior

• Family is the most important consumer-buying organization in society

• Husband-wife engagement in purchases varies widely by product category

• Children influence purchases directly or indirectly

• Research has shown that two-thirds of 13-21 year olds make influence purchase decisions of audio/video equipment, software and holiday destination

Social Factors

Factors Influencing Consumer Behavior

• Social roles and status: The role the person performs in turn connotes a status

• Choices vary as per person’s role as well. E.g., the buying choice of social activist and a company manager differ.

Social Factors

Factors Influencing Consumer Behavior

Personal Factors

Factors Influencing Consumer Behavior

Age and stage in life-cycle:• Taste changes with age• Adults experience “transformations” so their

behavior changes more frequently• Special events in life like marriage, childbirth,

illness, divorce, first job, retirement give rise to new needs.

• Example : Titan came up with wedding collection

Personal Factors

Factors Influencing Consumer Behavior

Occupation affects the goods and services bought by consumers. Software companies design different products for managers, engineers, etc.

Adverse Economic situation like recession keeps customers away from luxury goods like Gucci, Prada and Burberry.

Personal Factors

Factors Influencing Consumer Behavior

Personality and self-concept: Personality refers to the unique human psychological traits that lead to consistent and lasting responses to the environmental stimuli

• Brand Personality is the specific mix of human traits that we attribute to a brand.

• Stanford’s Jennifer Aaker identified following traits in brand personalities : Sincerity, Excitement, Competence, Sophistication and Ruggedness

• Owing to ruggedness person might go for Woodland shoes

Personal Factors

Characteristics Affecting Consumer Behavior: Psychological Factors

Marketing Stimuli

Other Stimuli

Products & Services

Price

Distribution

Communications

Economic

Technological

Political

Cultural

Consumer Psychology

MotivationPerceptionLearningMemory

Consumer Characteristics

CulturalSocialPersonal

Buying Decision Process & Purchase Decision

MotivationPerceptionLearningMemory

Key Psychological Processes

Model of Consumer Behavior

Characteristics Affecting Consumer Behavior: Psychological Factors1. Motivation

A need becomes a motive when it is aroused to a sufficient level of intensity to drive us to act

1.A. Freud’s Theory

Psychological factors are largely unconscious Consumer reaction to a product is beyond its stated capabilities Shape, Size, Weight, Material, Color, Brand Name – shape people’s behaviors Use of Laddering Technique to trace a person’s motivations

Social Relaxation

Status

Fun

A Whiskey brand need to be motivationally positioned in one of these three appeals

Characteristics Affecting Consumer Behavior: Psychological Factors1. Motivation (cont.)

1.B. Maslow’s Theory

1.C. Herzberg’s Theory

Human Needs are arranged in hierarchy People will try to satisfy their most important need first e.g – A starving man (need 1) will not take interest in the latest happenings in the art world (need 5), nor in how he is viewed by others, nor even whether he is breathing clean air(need 2)

2 factor theory that distinguishes satisfiers (factors that cause satisfaction) from dissatisfiers (factors that cause dissatisfaction) Absence of a dissatisfiers are not enough to motivate purchase

Characteristics Affecting Consumer Behavior: Psychological Factors2. Perception

Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes

Selective Attention

Selective Distortion

Selective Retention

Selective attention is the tendency for people to screen out most of the information to which they are exposed

Selective distortion is the tendency for people to interpret information in a way that will support what they already believe

Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands

Characteristics Affecting Consumer Behavior: Psychological Factors2. Perception (Cont.)

2.A. Selective Attention

Current Need

Anticipation

Size of Stimuli 50% Discount

5% Discount

2% Discount

10% Discount

6% Discount

Characteristics Affecting Consumer Behavior: Psychological Factors2. Perception (Cont.)

2.B. Selective Distortion 2.C. Selective Retention

Good Good Good Good

Good Good Good Good X X

Consumers distort information to be consistent with prior brand & product beliefs

Consumers remember good points about a good product they like and forget good points about a competing product Acts to the advantage of strong brands

Characteristics Affecting Consumer Behavior: Psychological Factors3. Learning

• Learning is the change in an individual’s behavior arising from experience and occurs through interplay of:

DrivesStimuli Cues Responses Reinforcement

Characteristics Affecting Consumer Behavior: Psychological Factors4. Memory

Hypothetical LIC Mental Map

Short Term & Long Term Memory Associative Network Memory Model – Nodes are stored information connected by links that vary in strength A spreading activation process from node to node determines how much we retrieve Brand Association consists of all brand related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes etc.

The Buyer Decision ProcessBuyer Decision Making Process

Post purchase Behaviour

Purchase Decision

Evaluation of Alternatives

Information Search

Problem Recognition

The Buyer Decision Process

• Occurs when the buyer recognizes a problem or need triggered by:• Internal stimuli• External stimuli

Need Recognition

The Buyer Decision Process

• Personal sources—family and friends• Commercial sources—advertising, Internet• Public sources—mass media, consumer organizations• Experiential sources—handling, examining, using the

product

Information Search• Limited• Heightened attention • Active information search

Sources of Information

The Buyer Decision Process

• Beliefs and Attitudes• Expectancy Value model

Evaluation of Alternatives

Purchase Decision

• Noncompensatory Model: • The purchase decision can be affected by • Attitudes of others• Unexpected situational factors

The Buyer Decision Process

• The satisfaction or dissatisfaction that the consumer feels about the purchase

• Relationship between:– Consumer’s expectations– Product’s perceived performance

• The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction

• Cognitive dissonance is the discomfort caused by a post-purchase conflict

Post-Purchase Decision

The Buyer Decision Process

Post-Purchase Decision

Post Purchase

satisfaction

Post purchase actions

Post purchase uses and disposal

Types of Buying Decision Behavior

Four Types of Buying Behavior

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