marketing presentation - analyzing consumer markets.pptx
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Marketing Presentation - Analyzing Consumer Markets.pptxTRANSCRIPT
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
• 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
• 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
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