session 1, introduction.ppt

Introduction to Introduction to Consumer BehaviourConsumer Behaviour

Sanjeev VarshneySanjeev Varshney

What is Consumer Behavior?What is Consumer Behavior?

The study of individuals, The study of individuals, groups, or organizations groups, or organizations and the processes they and the processes they use to use to select, secure, select, secure, use, and dispose use, and dispose of of products, services, products, services, experiences, or ideas to experiences, or ideas to satisfy needs and the satisfy needs and the impacts that these impacts that these processes have on the processes have on the consumer and society.consumer and society.

Why study consumer behavior?Why study consumer behavior?

Consumer behavior theory provides the manager Consumer behavior theory provides the manager with the proper questions to askwith the proper questions to askMarketing practice designed to influence Marketing practice designed to influence consumer behavior influences the firm, the consumer behavior influences the firm, the individual, and societyindividual, and societyAll marketing decisions and regulations are All marketing decisions and regulations are based on assumptions about consumer behaviorbased on assumptions about consumer behavior

Marketer ConsumerStimulus

Feedback/Input

Marketing Strategy & Consumer Marketing Strategy & Consumer BehaviorBehavior

Creating Customer ValueCreating Customer Value::

The difference between The difference between all the benefits derived all the benefits derived from a total product and from a total product and all the costs of acquiring all the costs of acquiring those benefits.those benefits.

What is the Core for Marketing Strategy ?

Process of Marketing Planning & Process of Marketing Planning & Consumer BehaviorConsumer Behavior

Overall Model Of Consumer Overall Model Of Consumer BehaviorBehavior

Process

Firm’s Marketing

Efforts

Individuals Psychological

FieldConsumer Decision Making Process

Socio-Cultural Environment

Experience

Purchase

Post-purchase Evaluation

Input

Output

External Influences

Consumer Decision Making

Output

To Understand To Understand Consumer Behaviour Consumer Behaviour

We need to do We need to do Consumer ResearchConsumer Research

Most Companies in India and Abroad have a Consumer Insight Department

ExerciseExercise

Financial inclusion is a problem in India. Financial inclusion is a problem in India. Design a consumer behaviour study to Design a consumer behaviour study to study the obstacles in the growth.study the obstacles in the growth.

How will you establish the merchandise How will you establish the merchandise mix in a Louis Phillipe store of an area ?mix in a Louis Phillipe store of an area ?

Evolution of Consumer Evolution of Consumer Behaviour Research Behaviour Research

Motivation Research- Motivation Research- In-depth interview In-depth interview

Behavioural Science Research – Behavioural Science Research – quantitative research methods quantitative research methods

Interpretive Research (Postmodern Interpretive Research (Postmodern perspective)- perspective)- Ethnographic research Ethnographic research

Quantitative Research Methods Quantitative Research Methods

Secondary Data – Secondary Data – Data collected through modern retail outlets billsData collected through modern retail outlets bills Warranty cards and Past customer transactionsWarranty cards and Past customer transactions Letters from customersLetters from customers Sales ReportsSales Reports Panel Data, Bill Data Panel Data, Bill Data

Primary Data- Primary Data- ObservationObservation Direct questioningDirect questioning ExperimentationExperimentation Projective techniquesProjective techniques

Consumer ResearchConsumer Research

Quantitative ResearchQuantitative Research Looking for generalizations/segmentationLooking for generalizations/segmentation Description of target marketDescription of target market Want to identify how many people do this ?Want to identify how many people do this ?

Qualitative ResearchQualitative Research Want to identify why people do thisWant to identify why people do this How people do this ?How people do this ? While launching new productWhile launching new product

Mixed Research Mixed Research Start with qualitative researchStart with qualitative research Test the ideas from qual through quantitative researchTest the ideas from qual through quantitative research

Designing Primary ResearchDesigning Primary Research

How would you understand the brand How would you understand the brand purchase behaviour of customers?purchase behaviour of customers?

How would you understand the store How would you understand the store choice/shopping behaviour of consumers?choice/shopping behaviour of consumers?

Observational Research

Content Analysis

Designing ResearchDesigning Research

How will you test the relative sales appeal How will you test the relative sales appeal of many types of of many types of package designspackage designs Advertisement copiesAdvertisement copies Promotional offersPromotional offers

Causal Experimental Research

Measure AttitudeTest for Purchase Intention

Designing ResearchDesigning Research

How would you understand the purchase How would you understand the purchase preferences of consumers?preferences of consumers?

How would you understand which brand How would you understand which brand do consumers like and why?do consumers like and why?

Survey

QuantitativeQualitative