CONSUMER BEHAVIOUR

By Bhasker Assoldekar M.Sc. (Tech.), PGDM(IIM-A) PGDM(IIM-

EVALUATION SYSTEM FOR CONSUMER BEHAVIOUR

20 MARKS : CLASS PARTICIPATION 20 MARKS : CLASS TEST 30 MARKS : PROJECT 30 MARKS : THEORY PAPER

Ref. Book: CONSUMER BEHAVIOR By: SCHIFFMAN & KANUK (Indian Publishers: Prentice Hall of India Pvt. Ltd. New Delhi) All lectures will be by way of PPT Presentation.

There will be 10 Lectures (of 3 hrs. duration each ) during the 10 days from Monday, 2Oth Aug. to Thursday, 30th Aug. 2007. Project Presentations (30 Marks) and Theory Paper (30 Marks) to be held for one day each in the third th/18th) of SEPT.07 week(17

1 2 3 4 5 6 7

CONSUMER BEHAVIOR-ITS ORIGINS BEHAVIORCONSUMER RESEARCH MARKET SEGMENTATION CONSUMER MOTIVATION CONSUMER PERCEPTION CONSUMER LEARNING CONSUMER ATTITUDE FORMATION AND CHANGE 8 REFERENCE GROUPS SOCIAL CLASS & FAMILY INFLUENCES 9 COMMUNICATION AND CONSUMER BEHAVIOUR 10 CONSUMER DECISION MAKING AND BEYOND

CHAPTER ONE
CONSUMER BEHAVIOR ITS ORIGINS AND STRATEGIC APPLICATIONS

WHO SHOULD LEARN IT? WHY ARE WE LEARNING IT? HOW TO USE THE KNOWLEDGE?

CONSUMER BEHAVIOUR
THE BEHAVIOUR THAT CONSUMERS DISPLAY IN SEARCHING FOR , PURCHASING , USING , EVALUATING AND DISPOSING OF PRODUCTS AND SERVICES THAT THEY EXPECT WILL SATISFY THEIR NEEDS AND WANTS. WANTS.

Intro to Consumer Behavior



 

Consumer behavior-behavior-what is it? Applications Consumer Behavior and Strategy

 

Elements of strategy Consumer Analysis

Consumer behavior outcomes

One Definition


Consumer behavior: the study of

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

Marketing Strategy and Consumer Behavior

MARKET ANALYSIS

MARKET SEGMENTATION

MARKETING STRATEGY

CONSUMER DECISION PROCESSES

OUTCOMES

APPROACHES


THE PRODUCTION CONCEPT THE PRODUCT CONCEPT THE SELLING CONCEPT THE MARKETING CONCEPT

THE PRODUCTION CONCEPT



WORKS WELL WHEN CONSUMER IS INTERESTED IN PRODUCT AVAILABILITY AT LOW PRICES. IN 8 YEARS(FROM 1908 TO 1916) FORD SOLD 100 TIMES MORE CARS. HIGHER THE PRODUCTION LOWER THE PRICES. IN U.S.A THE LIFESTYLE CHANGED : BETTER HIGHWAYS ,EMERGENCE OF SUBURBS & SHOPPING MALLS. ITS IMPLICIT OBJECTIVE IS CHEAP PRODUCT, EFFICIENT PRODUCTION & INTENSIVE DISTRIBUTION.

THE PRODUCT CONCEPT



IT ASSUMES THAT CONSUMERS WILL BUY THE PRODUCT THAT OFFERS THEM THE HIGHEST QUALITY, THE BEST PERFORMANCE AND THE MOST FEATURES. COMPANY STRIVES CONSTANTLY TO IMPROVE THE QUALITY OF THE PRODUCT & ADD NEW FEATURES. PRODUCT ORIENTATION LEADS TO MARKETING MYOPIA (eg. : U.S. RAILWAYS, Sale of FIAT/UNO cars)

THE SELLING CONCEPT



 

ASSUMPTION IS, CONSUMER IS UNLIKELY TO BUY THE PRODUCT UNLESS THEY ARE AGRESSIVELY PERSUADED TO DO SO MOSTLY THROUGH HARD SELL APPROACH. FAILS TO CONSIDER CUSTOMER SATISFACTION. THEY ARE LIKELY TO COMMUNICATE IN ANY DISSATISFACTION WITH THE PRODUCT THROUGH NEGATIVE WORD OF MOUTH ( eg. : POLITICAL PARTIES SELLING THEIR CANDIDATES AGGRESIVELY TO VOTERS).

THE MARKETING CONCEPT

  

PRODUCTION OF ONLY THOSE GOODS THAT CONSUMERS WOULD BUY. CONSUMERS NEEDS AND WANTS BECOME THE FIRMS PRIMARY FOCUS. ALL CONSUMERS ARE NOT ALIKE AND HENCE THE IMPORTANCE OF SEGMENTING THE MARKET. MARKETER SHOULD MAKE WHAT IT CAN SELL INSTEAD OF TRYING TO SELL WHAT IT HAS MADE. IN SELLING CONCEPT, PROFITS ARE THROUGH SALES VOLUME. IN MARKETING CONCEPT, PROFITS ARE BASED ON CUSTOMER SATISFACTION.

DEVELOPMENT OF THE MARKETING CONCEPT



IMPLEMENTATION Marketers had to study consumers & their behaviour in depth. They discovered that the needs and priorities of different consumer segments differed dramatically. We all have same kind of biological needs no matter where we are born. We all acquire needs after we are born, they are shaped by environment, culture, education & experience. Interestingly, many people develop the same acquired needs.

SEGMENTATION,TARGETING & POSITIONING



Market Segmentation is the process of dividing the market into subsets of consumers with common needs or characteristics. Market Targeting is the selection of one or more of the segments identified by the company to market the products/services. Market Positioning refers to development of a distinct image for the product in the minds of the consumer - an image distinctly different from competitors offer. Communicate the benefits of the product rather than product features. Effective Positioning strategy must develop and communicate USP.

THE MARKETING MIX

 

4 Ps PRODUCT : Features,design,brands,packaging offered along with post purchase benefits. PRICE : The least price including discounts, allowances and payment method. PROMOTION : Advertising, sales promotion, PR ,sales efforts to build awareness. PLACE : The distribution of the product through a store.

CUSTOMER VALUE , SATISFACTION & RETENTION



CUSTOMER VALUE : Ratio between the customers perceived benefits (economic, functional and psychological) and resources (monetary, time, effort) used to obtain those benefits.

CUSTOMER SATISFACTION


IT IS THE INDIVIDUALS PERCEPTION OF THE PERFORMANCE OF THE PRODUCT IN RELATION TO HIS/HER EXPECTATIONS. A CUSTOMER WHOSE EXPERIENCE FALLS BELOW EXPECTATIONS WILL BE DISSATISFIED

CUSTOMER RETENTION


THE OBJECTIVE OF RETAINING THE CUSTOMERS AND MAKE THEM STAY WITH IT RATHER THAN SWITCH TO ANOTHER FIRM BY PROVIDING VALUE TO CUSTOMERS CONTINUOSLY AND MORE EFFECTIVELY THAN THE COMPETITORS.

IMPACT OF TECHNOLOGY ON MARKETING STRATEGY

   

CONSUMERS HAVE MORE POWER THAN EVER BEFORE. CONSUMERS HAVE ACCESS TO MORE INFORMATION. MARKETERS CAN & MUST OFFER MORE SERVICES & PRODUCTS. EXCHANGE BETWEEN MARKETERS & CUSTOMERS IS INCREASINGLY INTERACTIVE. MARKETERS CAN GATHER MORE INFORMATION ABOUT CONSUMERS MORE QUICKLY AND EASILY.

MARKETING ETHICS & SOCIAL RESPONSIBILITY

MARKETERS SHOULD FULFIL THE NEEDS OF THE TARGET AUDIENCE IN WAYS THAT IMPROVE SOCIETY AS A WHOLE WHILE FULFILLING THE OBJECTIVES OF THE ORGANISATION. Eg : MARKETERS SHOULDNT ADVERTISE FOOD TO YOUNG PEOPLE IN WAYS THAT ENCOURAGE OVER EATING OR USE PROFESSIONAL ATHLETES IN LIQOUR OR TOBACCO ADS. MOST COMPANIES BELIEVE AND RECOGNISE THAT MARKETING ETHICS & SOCIAL RESPONSIBILITY IMPROVE THEIR IMAGE AMONG CONSUMERS, STOCK HOLDERS, FINANCIAL COMMUNITY & OTHER RELEVANT PUBLIC.

CONSUMER DECISION MAKING MODEL

THE PROCESS OF CONSUMER DECISION MAKING CAN BE VIEWED AS 3 DISTINCT BUT INTER LOCKING STAGES 1.THE INPUT STAGE 2.THE PROCESS STAGE 3. THE OUTPUT STAGE

PRODUCT PROMOTION PRICE CHANNELS OF DISTRIBUTION

FAMILY INFORMAL SOURCES SOCIAL CLASS OTHER SOURCES CULTURE & SUB CULTURE

NEED RECOGNITION PREPURCHASE SEARCH EVALUATION OF ALTERNATIVES

MOTIVATION PERCEPTION LEARNING PERSONALITY ATTITUDES EXPERIENCE

TRIAL PURCHASE REPEAT PURCHASE

POST PURCHASE EVALUATION

CHAPTER TWO
CONSUMER RESEARCH

CONSUMER RESEARCH


THE SATISFACTION OF CONSUMER NEEDS IS DELIVERED IN THE FORM OF THE MARKETING MIX WHICH CONSISTS OF THE 4 PS PRODUCT, PLACE, PRICE AND PROMOTION. CONSUMER RESEARCH ENABLES THE MARKETERS TO STUDY AND UNDERSTAND CONSUMER NEEDS AND WANTS AND HOW THEY MAKE CONSUMPTION DECISIONS.

 

TO SEARCH DEEP WITHIN THE CONSUMER PSYCHE, CONSUMER RESEARCHER TODAY USE 2 DIFERENT TYPES OF RESEARCH METHODOLOGY TO STUDY CONSUMER BEHAVIOUR. QUANTITATIVE QUALITATIVE QUANTITATIVE RESEARCH FINDINGS ARE USED TO PREDICT CONSUMER REACTIONS TO VARIOUS PROMOTIONAL INPUTS. QUALITATIVE RESEARCH FINDINGS ARE USED TO DISCOVER NEW IDEAS AND TO DEVELOP PROMOTIONAL STRATEGY. THE COMBINED FINDINGS ENABLE MARKETERS TO DESIGN MORE MEANINGFUL AND EFFECTIVE MARKETING STRATEGIES.

CONSUMER RESEARCH PROCESS

 

  

DEFINING OBJECTIVES. COLLECT & EVALUATE SECONDARY DATA. DESIGNING PRIMARY RESEARCH. DATA ANALYSIS. PREPARING A REPORT ON THE FINDINGS.

DEVELOP OBJECTIVES COLLECT SECONDARY DATA

DESIGN QUALITATIVE RESEARCH

DESIGN QUANTITATIVE RESEARCH COLLECT PRIMARY DATA

CONDUCT RESEARCH EXPLORATORY STUDY

ANALYSE DATA

ANALYSE DATA

PREPARE REPORT

PREPARE REPORT

SAMPLING & DATA COLLECTION



SINCE IT IS ALMOST ALWAYS IMPOSSIBLE TO OBTAIN INFORMATION FROM EVERY MEMBER OF THE POPULATION/ UNIVERSE BEING STUDIED - RESEARCHERS USE SAMPLES. A SAMPLE IS A SUBSET OF THE POPULATION THAT IS USED TO ESTIMATE THE CHARACTERISTICS OF THE ENTIRE POPULATION.THE SAMPLE THEREFORE MUST BE REPRESENTATIVE OF THE UNIVERSE UNDER STUDY.

DATA ANALYSIS


IN QUALITATIVE RESEARCH MODERATOR OR TEST ADMINISTRATOR ANALYSES THE RESPONSES RECEIVED. IN QUANTITATIVE RESEARCH THE RESEARCHER SUPERVISES THE ANALYSIS.

QUANTITATIVE RESEARCH INSTRUMENT



 

FOR QUANTITATIVE RESEARCH THE PRIMARY DATA COLLECTION INSTRUMENT IS THE QUESTIONNAIRE. IT CAN BE DISGUISED OR UN DISGUISED. QUESTIONS CAN BE OPEN OR CLOSED ENDED. WORDING THE QUESTIONS REPRESENTS THE BIGGEST CHALLENGE IN CONSTRUCTING QUESTIONNAIRE.

QUALITATIVE RESEARCH INSTRUMENT



IN DEPTH INTERVIEW : RESPONDENTS ARE ENCOURAGED TO TALK FREELY ABOUT THEIR ACTIVITIES ATTITUDES AND INTERESTS IN ADDITION TO THEIR PRODUCT CATEGORY OR BRAND UNDER STUDY HIGHLY TRAINED INTERVIEWERS ARE REQUIRED.

TEST MARKETING


PRIOR TO LAUNCHING A NEW PRODUCT ELEMENTS SUCH AS PRICE , PACKAGE , PROMOTION ARE MANIPULATED IN A CONTROLLED SETTING IN ORDER TO PREDICT SALES OR GAUGE THE POSSIBLE RESPONSES TO THE PRODUCT.

SURVEYS


  

PERSONAL INTERVIEW (HOME OR RETAIL SHOPPING MALL INTERCEPTS) TELEPHONE SURVEYS MAIL SURVEYS ONLINE SURVEYS

ETHICS IN CONSUMER RESEARCH



CONSUMER REASEARCHERS MUST ENSURE THAT STUDIES ARE OBJECTIVE AND FREE OF BIAS. SOMETIMES CERTAIN STUDIES ARE COMMISIONED BY ORGANISATIONS SEEKING TO JUSTIFY A PARTICULAR POSITION. AT THE START OF ALL SURVEYS INTERVIEWERS MUST CLEARLY IDENTIFY THEMSELVES AND THE COMPANY FOR WHICH THEY ARE WORKING. THE PRIVACY OF THE RESPONDENTS MUST BE PROTECTED AND GUARANTEED

CHAPTER THREE

MARKET SEGMENTATION

WHAT IS MARKET SEGMENTATION



DEFINED AS THE PROCESS OF DIVIDING A MARKET INTO DISTINCT SUBSETS OF CONSUMERS WITH COMMON NEEDS OR CHARACTERISTICS AND SELECTING ONE OR MORE SEGMENTS TO TARGET WITH A DISTINCT MARKETING MIX

IF ALL CONSUMERS WERE ALIKE AND IF THEY ALL HAD THE SAME NEEDS, WANTS AND DESIRES AND THE SAME BACKGROUND, EDUCATION AND EXPERIENCE THEN MASS MARKETING WILL BE A LOGICAL STRATEGY. THE STRATEGY OF SEGMENTATION ALLOWS PRODUCERS TO AVOID HEAD ON COMPETETION IN THEIR MARKET PLACE BY DIFFERENTIATING THEIR OFFERINGS NOT ONLY ON THE BASIS OF PRICE BUT ALSO THROUGH STYLING, PACKAGING, PROMOTIONAL APPEAL, METHOD OF DISTRIBUTION AND SUPERIOR SERVICE.

AFTER SEGMENTATION THE MARKETER MUST SELECT ONE OR MORE SEGMENTS TO TARGET. MARKETING MIX SUCH AS PRODUCT, PRICE, PLACEMENT SHOULD BE SPECIFIED AND THEN THE PRODUCT SHOULD BE POSITIONED, SO THAT CONSUMERS IN EACH TARGET PERCIEVE, THAT, IT IS SATISFYING THEIR NEEDS BETTER THAN OTHER COMPETETIVE OFFERINGS.

HOW IT OPERATES


SEGMENTATION STUDIES ARE DESIGNED TO DISCOVER THE NEEDS AND WANTS OF SPECIFIC GROUP OF CUSTOMERS SO THAT SPECIALISED GOODS AND SERVICES CAN BE DEVELOPED AND PROMOTED TO SATISFY EACH GROUPS NEEDS.

BASIS FOR SEGMENTATION

        

GEOGRAPHIC DEMOGRAPHIC PSYCHOLOGICAL PSYCHOGRAPHIC SOCIOCULTURAL USE RELATED USAGE SITUATION BENEFIT HYBRID

IN GEOGRAPHIC SEGMENTATION THE MARKET IS DIVIDED BY LOCATION. THE THEORY BEHIND THIS STRATEGY IS THAT, PEOPLE WHO LIVE IN THIS SAME AREA SHARE SOME SIMILAR NEEDS AND WANTS AND THAT THIS NEEDS AND WANTS DIFFER FROM THOSE OF PEOPE LIVING IN OTHER AREAS. IN DEMOGRAPHIC SEGMENTATION THE CHARACTERISTIC SUCH AS AGE, SEX, MARITAL STATUS, INCOME, OCCUPATION AND EDUCATION ARE MOST OFTEN USED AS THE BASIS FOR MARKET SEGMENTATION.

PSYCHOLOGICAL CHARACTERISTICS REFER TO THE INNER OR INTRINSIC QUALITIES OF THE INDIVIDUAL CONSUMER.THEY MAY BE SEGMENTED IN TERMS OF THEIR MOTIVATIONS, PERSONALITY, PERCEPTIONS, LEARNING AND ATTITUDES. PSYCHOGRAPHIC THIS PROFILE OF A CONSUMER SEGMENT MEASURES ACTIVITIES, INTERESTS AND OPINIONS

SOCIOCULTURAL VARIABLES CONSUMER MARKETS CAN ALSO BE SUB DIVIDED INTO SEGMENTS ON THE BASIS OF SOCIOLOGICAL AND CULTURAL VARIABLES SUCH AS STAGE IN FAMILY LIFE CYCLE, SOCIAL CLASS, CORE CULTURAL VALUES, SUB CULTURAL MEMBERSHIPS AND CROSS CULTURAL AFFILIATIONS. USE RELATED THIS FORM OF SEGMENTATION CATEGORIZES CONSUMERS IN TERMS OF PRODUT SERVICE OR BRAND USAGE CHARACTERISTICS SUCH AS LEVEL OF USAGE, AWARENESS AND DEGREE OF BRAND LOYALTY.

BENEFIT MARKETERS IDENTIFY THE ONE MOST IMPORTANT BENEFIT OF THE PRODUCT WHICH WILL BE MOST MEANINGFUL TO CONSUMERS AND SEGMENT ACCORDINGLY.  HYBRID MARKETERS COMMONLY SEGMENT MARKETS BY COMBINING SEVERAL SEGMENTATION VARIABLES RATHER THAN RELYING ON A SINGLE SEGMENTATION BASE.


CRITERIA FOR EFFECTIVE TARGETING

   

IDENTIFICATION SUFFICIENCY STABILITY ACCESSIBILITY

IMPLEMENTING SEGMENTATION STRATEGIES



CONCENTRATED V/S DIFFERENTIATED MARKETING. TARGETING SEVERAL SEGMENTS USING INDIVIDUAL MARKETING MIXES IS CALLED DIFFERENTIATED MARKETING MIXES.TARGETING JUST ONE SEGMENT WITH A UNIQUE MARKETING MIX IS CALLED CONCENTRATED MARKETING. COUNTER SEGMENTATION WHEN TWO OR MORE SEGMENTS ARE RE COMBINED INTO A LARGER SINGLE SEGMENT WHICH COULD BE TARGETED WITH AN INDIVIDUALLY TAILORED PRODUCT OR PROMOTIONAL CAMPAIGN IS CALLED A COUNTER SEGMENTATION STRATEGY.

CHAPTER FOUR

CONSUMER MOTIVATION

WHAT IS IT ?????
  

HUMAN/CONSUMER NEEDS ARE THE BASIS OF ALL MODERN MARKETING. NEEDS ARE THE ESSENCE OF THE MARKETING CONCEPT. THE KEY TO A COMPANYS SURVIVAL, PROFITABILITY AND GROWTH IN A HIGHLY COMPETETIVE MARKET PLACE IS ITS ABILITY TO IDENTIFY AND SATISFY UNFULFILLED CONSUMER NEEDS BETTER AND SOONER THAN THE COMPETITION. MOTIVATION IS THE DRIVING FORCE WITHIN INDIVIDUALS THAT IMPELS THEM TO ACTION.

MOTIVATION AS A PSYCHOLOGICAL FORCE



NEEDS GOALS POSITIVE & NEGATIVE MOTIVATION

NEEDS


EVERY INDIVIDUAL HAS NEEDS SOME ARE INNATE, OTHERS ARE ACQUIRED. INNATE NEEDS ARE PHYSIOLOGICAL (BIOGENIC). THEY INCLUDE FOOD, WATER, AIR, SHELTER, CLOTHING AND SEX. ACQUIRED NEEDS ARE NEEDS THAT WE LEARN IN RESPONSE TO OUR CULTURE OR ENVIRONMENT.THEY MAY INCLUDE NEEDS FOR SELF ESTEEM , PRESTIGE, AFFECTION, POWER AND LEARNING.THEY ARE PSYCHOGENIC.

GOALS


THEY ARE SOUGHT AFTER RESULTS OF MOTIVATED BEHAVIOUR.ALL BEHAVIOUR IS GOAL ORIENTED. MOST GOALS ARE GENERIC. HOWEVER THEY ARE AT TIMES PRODUCT SPECIFIC GOALS. MARKETERS ARE CONCERNED WITH PRODUCT SPECIFIC GOALS.

POSITIVE & NEGATIVE MOTIVATION



MOTIVATION CAN BE POSITIVE OR NEGATIVE IN DIRECTION.WE MAY FEEL A DRIVING FORCE TOWARDS A OBJECT OR CONDITION OR A DRIVING FORCE AWAY FROM SOME OBJECT OR CONDITION. Eg : A PERSON MAY BE IMPELLED TOWARDS A RESTAURANT TO FULFILL A HUNGER NEED AND AWAY FROM A MOTORBIKE RIDE ON A RAINY DAY FROM SAFETY NEED.

UNFULFILLED NEEDS

PREVIOUS LEARNING

TENSION

DRIVE

BEHAVIOUR

GOAL

COGNITIVE PROCESS

TENSION REDUCTION

DYNAMICS OF MOTIVATION


 

NEEDS ARE NEVER FULLY SATISFIED. NEW NEEDS EMERGE. INFLUENCE OF SUCCESS & FAILURE ON GOALS. MULTIPLICITY OF NEEDS.

MULTIPLICITY OF NEEDS


A CONSUMER BEHAVIOUR OFTEN FULFILLS MORE THAN ONE NEED INFACT IT IS LIKELY THAT SP. GOALS ARE SELECTED BECAUSE THEY FULFILL SP. NEEDS. Eg : OUR CLOTHING FULFILLS A WIDE RANGE OF PERSONAL AND SOCIAL NEEDS AS ALSO EGO NEEDS.

TYPES & SYSTEM OF NEEDS

 

HIEARCHY OF NEEDS EVALUATION OF NEED HIEARCHY & MARKETING APPLICATION TRIO OF NEEDS

HIERARCHY OF NEEDS
PHYSIOLOGICAL NEEDS. (FOOD, WATER, SHELTER ,AIR, SEX)  SAFETY AND SECURITY. (PROTECTION, ORDER, STABILITY, HEALTH, EDUCATION)  SOCIAL NEEDS. ( AFFECTION, FRIENDSHIP, ACCEPTANCE , BELONGING)  EGOISTIC NEEDS. (PRESTIGE, STATUS , SELF ESTEEM , REPUTATION, RECOGNITION)  SELF ACTUALIZATION NEEDS. ( SELF FULFILLMENT).


MASLOWS HIERARCHY OF NEEDS

SELF ACT.

EGO NEEDS

SOCIAL NEEDS

SAFETY AND SECURITY NEEDS

PHYSIOLOGICAL NEEDS

EVALUATION OF NEED HIERARCHY & MARKETING APPLICATION



HIGHER ORDER NEEDS BECOME THE DRIVING FORCE BEHIND HUMAN BEHAVIOUR AS LOWER LEVEL NEEDS ARE SATISFIED. IN EFFECT IT IS DISSATISFACTION AND NOT SATISFACTION THAT MOTIVATES BEHAVIOUR.

TRIO OF NEEDS


POWER AFFILIATION ACHIEVEMENT

MEASUREMENT OF MOTIVES


MOTIVATIONAL RESEARCH
INCLUDES ALL TYPE OF RESEARCH INTO HUMAN MOTIVES AND IS USED TO REFER TO QUALITATIVE RESEARCH DESIGNED TO UNCOVER THE CONSUMERS SUBCONCIOUS OR HIDDEN MOTIVATIONS

EVALUATION OF MOTIVATIONAL RESEARCH

MOTIVATIONAL RESEARCH IS STILL REGARDED AS AN IMPORTANT TOOL WHICH HELPS TO GAIN DEEPER INSIGHTS INTO THE WHYS OF CONSUMER BEHAVIOUR THAN CONVENTIONAL MARKETING RESEARCH TECHNIQUES CAN YIELD.

ETHICS IN CONSUMER MOTIVATION



WHILE SOME CRITICS ACCUSE MARKETERS OF CREATING NEEDS AND OF MANIPULATING CONSUMERS INTO BUYING GOODS THEY DONT NEED,MOST PEOPLE AGREE THAT MARKETERS CANT CREATE NEEDS HOWEVER THEY CAN AWAKEN LATENT NEEDS AND ENCOURAGE CONSUMERS TO ENGAGE IN UNWHOLESOME BEHAVIOURS. Eg : THE SOCIAL ASPECTS OF SMOKING DRINKING AND GAMBLING ARE OFTEN PROMOTED AS ENTICING AND SOCIALLY ACCEPTABLE.

CHAPTER FIVE
CONSUMER PERCEPTION

WHAT IS IT?????


 

DEFINED AS THE PROCESS BY WHICH AN INDIVIDUAL SELECTS , ORGANIZES AND INTERPRETS STIMULI INTO A MEANINGFUL AND COHERENT PICTURE OF THE WORLD. IT CAN BE DESCRIBED AS HOW WE SEE THE WORLD AROUND US. TWO INDIVIDUALS EXPOSED TO THE SAME STIMULI UNDER THE SAME CONDITIONS MAY RECOGNISE, SELECT, ORGANISE AND INTERPRET THIS STIMULI DIFFERENTLY BASED ON THEIR OWN NEEDS,VALUES AND EXPECTATIONS.

ELEMENTS OF PERCEPTION
   

SENSATION. THE ABSOLUTE THRESHOLD. THE DIFFERENTIAL THRESHOLD. SUBLIMINAL PERCEPTION.

SENSATION


IT IS THE IMMEDIATE AND DIRECT RESPONSE OF THE SENSORY ORGANS TO STIMULI. A STIMULUS IS ANY UNIT OF INPUT TO ANY OF THE SENSES. IT CAN INCLUDE PRODUCTS PACKAGES BRAND NAMES ADS AND COMMERCIALS. SENSORY RECEPTORS ARE THE HUMAN ORGANS( EYES, EARS, NOSE, MOUTH, NOSE, SKIN) THAT RECEIVE SENSORY INPUTS.

THE ABSOLUTE THRESHOLD



THE POINT AT WHICH A PERSON CAN DETECT A DIFFERENCE BETWEEN SOMETHING AND NOTHING IS THAT PERSONS ABSOLUTE THRESHOLD FOR THAT STIMULUS. AS OUR EXPOSURE TO THE STIMULUS INCREASES WE NOTICE IT LESS.

THE DIFFERENTIAL THRESHOLD



THE MINIMAL DIFFERENCE THAT CAN BE DETECTED BETWEEN TWO SIMILAR STIMULI IS CALLED THE DIFFERENTIAL THRESHOLD OR THE JUST NOTICEABLE DIFFERENCE.

SUBLIMINAL PERCEPTION


STIMULI THAT ARE TOO WEAK OR TOO BRIEF TO CONSCIOUSLY SEEN OR HEARD MAY NEVER THE LESS BE STRONG ENOUGH TO BE PERCIEVED BY ONE OR MORE RECEPTIVE CELLS.

DYNAMICS OF PERCEPTION


PERCEPTUAL SELECTION PERCEPTUAL ORGANIZATION PERCEPTUAL INTERPRETATION

CONSUMER IMAGERY
      

PRODUCT POSITIONING PRODUCT REPOSITIONING PERCEIVED PRICE PERCEIVED QUALITY PRICE V/S QUALITY RETAIL STORE IMAGE MANUFACTURERS IMAGE

PRODUCT POSITIONING


THE ESSENCE OF SUCCESSFUL MARKETING IS AN IMAGE THAT A PRODUCT HAS IN THE MINDS OF THE CONSUMER THAT IS ITS POSITIONING. ITS IMPORTANT TO THE ULTIMATE SUCCESS OF THE PRODUCT THAN ARE ITS ACTUAL CHARACTERISTICS ALTHOUGH PRODUCTS THAT ARE PORRLY MADE WILL NOT SUCCED IN THE LONG RUN ON THE BASIS OF THE IMAGE ALONE.

MOST NEW PRODUCTS FAIL BECAUSE THE ARE PERCEIVED AS ME TOO CATEGORY AND THAT THEY DONT OFFER ANY SP. ADVANTAGES/BENEFITS OVER COMPETETIVE PRODUCTS. POSITIONING STRATEGY IS THE ESSENCE OF THE MARKETING MIX. IT COMPLIMENTS THE COMPANYS DEFINITION OF THE COMPETITION, ITS SEGMENTATION STRATEGY AND ITS SELECTION OF TARGET MARKETS. IT CONVEYS THE CONCEPT OF TE PRODUCT OR SERVICE AS TO HOW IT FULFILLS THE CONSUMER NEED WHILE SIMULTANEOUSLY FEATURING THE BRAND AGAINST ITS COMPETITION. UMBRELLA POSITIONING : THIS STRATEGY ENTAILS CREATING AN OVERALL IMAGE OF THE COMPANY AROUND WHICH A LOT OF PRODUCTS CAN BE FEATURED INDIVIDUALLY

FILLING POSITIONS


BECAUSE UNFULFILLED GAPS OR UNOWNED PERCEPTUAL POSITIONS PRESENT OPPURTUNITIES FOR COMPETITORS SOPHISTICATED MARKETERS CREATE SEVERAL DISTINCT OFFERINGS OFTEN IN THE FORM OF DIFFERENT BRANDS TO FILL SEVERAL IDENTIFIED NICHES

PRODUCT REPOSITIONING


REGARDLESS OF HOW WELL POSITIONED A PRODUCT APPEARS TO BE THE MARKETER MAY BE FORCED TO REPOSITION IT IN RESPONSE TO MARKET EVENTS SUCH AS A COMPETITOR CUTTING INTO TH EBRANDS MARKET SHARE OR TO MANY COMPETITORS STRESSING THE SAME ATTRIBUTE ANOTHER REASON IS TO SATISFY CHANGING CONSUMER PREFERENCES. PERCEPTUAL MAPPING HELPS MARKETERS TO DETERMINE JUST HOW THEIR PRODUCTS APPEAR TO CONSUMERS IN RELATION TO COMPETETIVE BRANDS ON ONE OR MORE ERELEVENT CHARACTERISTICS, IT HELPS THEM TO IDENTIFY GAPS IN WHICH CONSUMER NEEDS ARE NOT BEING ADEQUATELY MET.

PERCEIVED PRICE


  

PERCEPTIONS OF PRICE UNFAIRNESS AFFECT CONSUMER PERCEPTIONS OF PRODUCT VALUE AND ULTIMATELY THEIR WILLINGNESS TO PATRONIZE THEIR STORE. THUS THERE ARE 3 PRICING STRATEGIES BASED ON CUSTOMERS PERCEPTION OF THE VALUE PROVIDED BY THE PURCHASE SATISFACTION BASED PRICING RELATIONSHIP PRICING EFFICIENCY PRICING

PERCEIVED QUALITY


 

CONSUMERS OFTEN JUDGE THE EQUALITY OF A PRODUCT BASED ON VARIETY OF INFO ASSOCIATED WITH THE PRODUCT. SOME OF IT IS INTRINSIC TO THE PRODUCT ,OTHERS ARE EXTRINSIC. EITHER SINGLY OR TOGETHER THEY PROVIDE THE BASIS FOR PERCEPTION OF PRODUCT AND ITS QUALITY. INTRINSIC CHARACTERISTICS ARE SIZE, COLOUR ,FLAVOUR OR AROMA. EXTRINSIC ARE COUNTY OF ORIGIN ETC.

PRICE V/S QUALITY



THE CONSUMERS USING THE RELATIONSHIP RELY ON A WELL KNOWN BRAND NAME AS AN INDICATOR OF QUALITY WITHOUT ACTUALLY RELYING DIRECTLY ON PRICE.

RETAIL STORE IMAGE



RETAIL STORES HAVE IMAGES OF THEIR OWN THAT SERVE TO INFLUENCE THE PERCEIVED QUALITY OF PRODUCTS THEY CARRY AND THE DECISIONS OF CONSUMERS AS TO WHERE TO SHOP. THESE IMAGES STEM FROM THEIR DESIGN, PHYSICAL ENVIRONMENT ,PRICING STRATEGY, PRODUCT ASSORTMENTS ETC. Eg : BORKER STORES

MANUFACTURERS IMAGE


CONSUMER IMAGERY EXTENDS BEYOND PERCEIVED PRICE AND A STORE IMAGE TO THE PRODUCERS THEMSELVES. MANUFACTURERS WHO ENJOY A FAVOURABLE IMAGE GENERALLY FIND THAT THEIR NEW PRODUCTS ARE ACCEPTED MORE READILY THAN THOSE OF MANUFACTURERS WHO HAVE A LESS FAVOURABLE OR EVEN A NEUTRAL IMAGE.

PERCEIVED RISK


PERCEPTION OF RISK ITS THE UNCERTAINITY THAT CONSUMERS FACE WHEN THEY CANNOT FORESEE THE CONSEQUENCES OF THEIR PURCHASE DECISIONS. THEY INCLUDE FUNCTIONAL ,PHYSICAL, SOCIAL, PSYCHOLOGICAL AND TIME RISK. HOW CONSUMERS HANDLE RISK CONSUMERS SEEK INFORMATION. THEY ARE BRAND LOYAL, SELECT A BRAND IMAGE, RELY ON STORE IMAGE, BUY THE MOST EXPENSIVE MODEL AND SEEK REASSUARANCE THROUGH MONEY BACK GUARANTEE ETC.

CHAPTER SIX

CONSUMER LEARNING

WHAT IS IT ???


IT IS THE PROCESS BY WHICH INDIVIDUALS ACQUIRE THE PURCHASE AND CONSUMPTION KNOWLEDGE AND EXPERINCE THAT THEY APPLY TO FUTURE RELATED BEHAVIOUR. IT IS THE PROCESS WHICH CONTINUOSLY EVOLVES AND CHANGES AS A RESULT OF NEWLY ACQUIRED KNOWLEDGE OR FROM ACTUAL EXPERIENCE. BOTH SERVE A S FEEDBACK TO THE INDIVIDUAL AND PROVIDE THE BASIS FOR FUTURE BEHAVIOUR IN SIMILAR SITUATIONS.

ELEMENTS OF CONSUMER LEARNING



MOTIVATION BASED ON NEEDS AND GOALS. IT ACTS AS A SPUR TO LEARNING. THE LEARNING CAN BE CONCERNING THE PRICES, QUALITY, CHARACTERISTICS OF PRICES ETC. CUES THEY ARE THE STIMULI THAT GIVE DIRECTION TO THESE MOTIVES. THE AD. CAN BE A STIMULI. IN THE MARKET PLACE, PRICE, STYLING, PACKAGING, ADVERTISING AND STORE DISPLAY SERVE AS CUES.

RESPONSE - HOW INDIVIDUALS REACT TO A DRIVE OR CUE. HOW THEY BEHAVE,CONSTITUTE THEIR RESPONSE. REINFORCEMENT IT INCREASES THE LIKELIHOOD THAT A SPECIFIC RESPONSE WILL OCCUR IN THE FUTURE AS THE RESULT OF PARTICULAR CUES OR STIMULI.

BEHAVIOURAL LEARNING THEORIES



CLASSICAL CONDITIONING IF YOU GET A HEAD ACHE VISITING A PARTICULAR PLACE YOUR REACTION MAY BE CONDITIONED FROM YEARS OF BORING VISITS. INSTRUMENTAL CONDITIONING OBSERVATIONAL LEARNING

COGNITIVE LEARNING THEORY



LEARNING BASED ON MENTAL ACTIVITY IS CALLED COGNITIVE LEARNING. THE THEORY HOLDS THAT THE KIND OF LEARNING MOST CHARACTERISTICS OF HUMAN BEINGS IS PROBLEM SOLVING WHICH ENABLES INDIVIDUALS TO GAIN SOME CONTROL OVER THEIR ENVIRONMENT

INFORMATION PROCESS

S E N S O R Y

I N P U T

SENSORY STORE REHEARSAL

WORKING MEMORY

LONG TERM STORE ENCODING

R E T R I E V A L

FORGOTTEN LOST

FORGOTTEN LOST

FORGOTTEN UNAVAILABLE

MEASURES OF CONSUMER LEARNING INCLUDE RECALL AND RECOGNITION TESTS. COGNITIVE RESPONSES TO ADVERTISING AND ATTITUDINAL AND BEHAVIOURAL MEASURES OF BRAND LOYALTY. BRAND LOYALTY CONSISTS OF BOTH ATTITUDES AND ACTUAL BEHAVIOURS TOWARD A BRAND AND BOTH MUST BE MEASURED.

CHAPTER SEVEN

CONSUMER ATTITUDE FORMATION AND CHANGE

WHAT ARE ATTITUDES

AN ATTITUDE IS A LEARNED PRE DISPOSITION TO BEHAVE IN A CONSISTENTLY FAVOURABLE OR UNFAVOURABLE WAY WITH RESPECT TO A GIVEN OBJECT


ATTITUDE OBJECT IT CAN BE CONCEPTUALISED AS A SUMMARY EVALUATION OF AN OBJECT. ATTITUDES LEARNED DISPOSITION IT MEANS THAT ATTITUDE RELEVANT TO PURCHASE BEHAVIOUR ARE FORMED AS A RESULT OF DIRECT EXPERIENCE WITH THE PRODUCT, WORD OF MOUTH INFORMATION ACQUIRED FROM OTHERS OR EXPOSURE TO MASS MEDIA ADVERTISING.

ATTITUDES HAVE CONSISTENCY ATTITUDES ARE RELATIVEY CONSISTENT WITH THE BEHAVIOUR THEY REFLECT HOWEVER DESPITE THEIR CONSISTENCY ATTITUDES ARE NOT NECESSARILY PERMANENT, THEY DO CHANGE.

ATTITUDES OCCUR WITHIN SITUATION BY SITUATION WE MEAN EVENTS OR CIRCUMSTANCES THAT AT A PARTICULAR POINT IN TIME, INFLUENCE THE RELATIONSHIP BETWEEN AN ATTITUDE AND BEHAVIOUR. Eg : BRAND SWITCHING BEHAVIOUR MAY SEEM TO REFLECT A NEGATIVE ATTITUDE WITH THE BRAND, BUT IT MAY BE INFLUENCED BY A SPECIFIC SITUATION THAT IS HIS WISH TO ECONOMISE.


STRUCTURAL MODELS


 

TRICOMPONENT ATTITUDE MODEL MULTIATTRIBUTE ATTITUDE MODEL TRY TO CONSUME MODEL ATTITUDE TOWARDS THE AD MODEL

TRICOMPONENT ATTITUDE MODEL

CONATION

AFFECT

COGNITION

THE COGNITIVE COMPONENT IS THE KNOWLEDGE AND PERCEPTIONS THAT ARE ACQUIRED BY A COMBINATION OF DIRECT EXPERIENCE WITH THE ATTITUDE OBJECT AND RELATED INFORMATION FROM VARIOUS SOURCES. THE AFFECTIVE COMPONENT IS CONSUMERS EMOTIONS OR FEELINGS ABOUT A PARTICULAR PRODUCT OR BRAND. THE CONATIVE COMPONENT IS CONCERNED WITH THE LIKELIHOOD OR TENDENCY THAT AN INDIVIDUAL WILL UNDERTAKE A SPECIFIC ACTION OR BEHAVE IN A PARTICULAR WAY WITH REGARD TO THE ATTITUDE OBJECT. IT MAY INCLUDE THE ACTUAL BEHAVIOUR ITSELF.

ATTITUDES TOWARDS MODEL

EXPOSURE TO AN AD JUDGEMENTS ABOUT THE AD FEELINGS FROM THE AD

BELIEFS ABOUT THE BRAND

ATTITUDE TOWARDS THE AD

ATTITUDE TOWARDS THE BRAND

ATTITUDE FORMATION


HOW ATTITUDES ARE LEARNED FORMATION OF AN ATTITUDE MEANS THE SHIFT FROM HAVING NO ATTITUDE TOWARD A GIVEN OBJECT TO HAVING SOME ATTITUDE TOWARDS IT. SOURCES OF INFLUENCE THE FORMATION O CONSUMER ATTITUDE IS TRONGLY INFLUENCED BY PERSONAL EXPERIENCE , THE INFLUENCE OF FAMILY AND FRIENDS, DIRECT MARKETING, MASS MEDIA AND INTERNET. PERSONALITY FACTORS THE RECEPTIVITY AND SPEED WITH WHICH ATTITUDES A RE LIKELY TO BE ALTERED ARE INFLUENCED BY PERSONAL EXPERINCE AND PERSONALITY.

STRATEGIES OF ATTITUDE CHANGE

      

CHANGING BASIC MOTIVATIONAL FUNCTION ASSOCIATING PRODUCT WITH GROUP,EVENT OR CAUSE RESOLVING TWO CONFLICTING ATTITUDES ALTERING COMPONENETS OF MULTIATTRIBUTE NODEL CHANGING BELIEFS ABOUT COMPETITORS BRAND ELABORATION LIKELIHOOD MODEL COMMUNICATION AND CONSUMER BEHAVIOUR

COGNITIVE DISSONANCE THEORY



THE DISCOMFORT OR DISSONANCE WHICH OCCURS WHEN THE CONSUMER HOLDS CONFLICTING THOUGHTS ABOUT A BELIEF OR AN ATTITUDE OBJECT Eg : WHEN A CONSUMER HAS MADE A COMMITMENT MADE A DOWN PAYMENT THEY OFTEN BEGIN TO FEEL COGNITIVE DISSONANCE WHEN THEY THINK OF THE UNIQUE POSITIVE QUALITIES OF THE BRAND NOT SELECTED. WHEN IT OCCURS AFTER A PURCHASE IT IS CALLED POST PURCHASE DISSONANCE.

CHAPTER EIGHT
REFERENCE GROUPS, SOCIAL CLASS AND FAMILY INFLUENCES

WHAT IS A GROUP


 

IT IS DEFINED AS TWO OR MORE PEOPLE WHO INTERACT TO ACCOMPLISH MUTUAL OR INDIVIDUAL GOALS. THE POWER OF REFERENCE GROUPGROUPITS ANY PERSON OR GROUP THAT SERVES AS A PT. OF COMPARISON FOR AN INDIVIDUAL IN FORMING GENERAL OR SP. VALUES, ATTITUDES, OR A SP. GUIDE FOR BEHAVIOUR BROADENED PERSPECTIVE INFLUENCING FACTORS

TYPES OF REFERENCE GROUPS



FRIENDSHIP GROUPS ALSO KNOWN AS INFORMAL GROUPS SINCE THEY ARE USUALLY UNSTRUCTURED AND LACK SPECIAL AUTHORITY LEVELS. AFTER FAMILY, FRIENDS ARE MOST LIKELY TO INFLUENCE THE PURCHASE DECISION. SHOPPING GROUPS TWO OR MORE PEPLE WHO SHOP TOGETHER FOR FOOD, CLOTHING OR TO PASS TIME

WORK GROUPS THE SHEER AMOUNT OF TIME THAT PEOPLE SPEND AT THEIR JOBS PROVIDES AMPLE OPPORTUNITY FOR WORK GROUPS TO SERVE AS A MAJOR INFLUENCE ON THE CONSUMPTION BEHAVIOURS OF MEMBERS VIRTUAL GROUPS THANKS TO TECHNOLOGY WE ARE WITNESSING THE EMERGENCE OF THIS GROUP CONSUMER ACTION GROUPS IT HAS EMERGED IN RESPONSE TO THE CONSUMERIST MOVEMENT WHO ASSIT IN MAKING THE RIGHT PURCHASE DEICISION AND CONSUME PRODUCTS IN A HEALTHY AND RESPONSIBLE MANNER.

CELEBRITY AND REFERENCE GROUPS APPEALS

    

CELEBRITIES EXPERTS COMMON MAN SPOKESPERSON SPOKES- CHARACTERS SPOKES-

FAMILY


CONSUMER SOCIALISATION OF CHILDREN ADULT CONSUMER SOCIALIZATION INTERGENERATIONAL SOCIALIZATION

FUNCTIONS OF THE FAMILY



ECONOMIC WELL BEING EMOTIONAL SUPPORT SUITABLE FAMILY LIFESTLES

FAMILY DECISION MAKING



KEY FAMILY CONSUMPTION ROLES - THERE ARE 8 DISTINCT ROLES IN THE PROCESS. A LOOK AT THESE ROLES PROVIDES FURTHER INSIGHT INTO HOW FAMILY MEMBERS INTERACT IN THEIR VARIOUS CONSUMPTION RELATED ROLES. DYNAMICS OF HUSBAND WIFE DECISION MAKING THE RELATIVE INFLUENCE OF HUSBANDS AND WIVES CAN BE CLASSIFIED AS HUSBAND DOMINATED, WIFE DOMINATED, JOINT OR AUTONOMIC

EXPANDING ROLE OF CHILDREN IN FAMILY DECISION MAKING THERE HAS BEEN A TREND OF CHILDREN PLAYING A MORE ACTIVE ROLE. THE SHIFT IN INFLUENCE HAS OCCURED AS FAMILY HAVE FEWER CHILDREN, MORE DUAL INCOME COUPLES AND THE ENCOURAGEMENT BY MEDIA TO ALLOW CHILDREN TO EXPRESS THEMSELVES.

FAMILY LIFE CYCLE

WHAT IS SOCIAL CLASS



SOCIAL CLASS AND SOCIAL STATUS IT IS FREQUENTLY THOUGHT OF AS RELATIVE RANKINGS OF THE MEMBERS OF EACH SOCIAL CLASS IN TERMS OF SPECIAL STATUS FACTORS SUCH AS WEALTH, POWER AND PRESTIGE. DYNAMICS OF STATUS CONSUMPTION IT IS THE PROCESS BY WHICH CONSUMERS ENDEAVOUR TO INCREASE THEIR SOCIAL STANDING THROUGH CONSPICUOS CONSUMPTION AND POSSESIONS. IT INVOLVES FAMILY INCOME, OCCUPATIONAL STATUS OR PRESTIGE AND EDUCATIONAL ATTAINMENT

SOCIAL CLASS CATEGORIES THEY ARE USUALLY RANKED IN A HIERARCHY RANGING FROM LOW TO HIGH STATUS.

MEASUREMENT OF SOCIAL CLASS



SUBJECTIVE MEASURES LOWER CLASS, LOWER MIDDLE CLASS, UPPER MIDDLE CLASS AND UPPER CLASS. REPUTATIONAL MEASURES PAGE 3 TYPES. OBJECTIVE MEASURES THEY CONSISTS OF SELECTED DEMOGRAPHIC OR SOCIO ECONOMIC VARIABLES CONCERNING THE INDIVIDUAL UNDER STUDY.

AFFLUENT CONSUMER MIDDLEMIDDLE-CLASS CONSUMER NON AFFLUENT CONSUMER

CONSUMER BEHAVIOUR APPLICATIONS



  

CLOTHING , FASHION AND SHOPPING THE PURSUIT OF LEISURE SAVING , SPENDING AND CREDIT SOCIAL CLASS AND COMMUNICATION

CHAPTER NINE

COMMUNICATION AND CONSUMER BEHAVIOUR

COMMUNICATION IS THE TRANSMISSION OF A MESSAGE FROM A SENDER TO A RECEIVER VIA A MEDIUM OR CHANNEL OF TRANSMISSION. BASIC COMMUNICATION MODEL
MESSAGE CHANNEL (MEDIUM) (MEDIUM) RECEIVER (CONSUMER) (CONSUMER)

SENDER (SOURCE)

FEEDBACK

 

THE SENDER : MAY BE A FORMAL COMMUNICATION SOURCE, AN INFORMAL SOURCE OR WORD OF MOUTH COMMUNICATION. THE RECEIVER : HE IS LIKELY TO BE A TARGETED PROSPECT OR A CUSTOMER. THE MEDIUM : IT CAN BE IMPERSONAL OR INTERPERSONAL. MASS MEDIA IS MOSTLY PRINT, BROADCAST OR ELECTRONIC. THE MESSAGE : IT CAN BE VERBAL OR NON VERBAL OR BOTH. FEEDBACK : IT IS AN ESSENTIAL COMPONENT OF BOTH INTERPERSONAL AND IMPERSONAL COMMUNICATION.

THE COMMUNICATION PROCESS

      

THE MESSAGE INITIATOR CREDIBILITY OF INFORMAL SOURCES CREDIBILITY OF FORMAL SOURCES CREDIBILITY OF SPOKESPERSON MESSAGE CREDIBILITY TARGET AUDIENCE FEEDBACK PROCESS

DESIGNING PERSUASIVE COMMUNICATION

           

COMMUNICATION STRATEGY TARGET AUDIENCE MEDIA STRATEGY MESSAGE STRATEGY MESSAGE STRUCTURE AND PRESENTATION RESONANCE MESSAGE FRAMING ONE SIDED V/S TWO SIDED MESSAGES COMPARATIVE ADVERTISING ABRASIVE ADVERTISING SEX IN ADVERTISING ETHICS IN COMMUNICATION

CHAPTER TEN
CONSUMER DECISION MAKING AND BEYOND

THE CONSUMERS DECISION TO PURCHASE OR NOT IS AN IMPORTANT MOMENT FOR MOST MARKETERS. IT CAN SIGNIFY WHETHER A MARKETING STRATEGY IS WISE, INSIGHTFUL, EFFECTIVE, OR WHETHER IT WAS POORLY PLANNED AND MISSED THE MARK. INPUT VARIABLES THAT AFFECT THE DECISION MAKING PROCESS INCLUDE COMMERCIAL MARKETING EFFORTS AS WELL AS NON COMMERCIAL INFLUENCES AND ALSO BY CONSUMERS PSYCHOLOGICAL FIELD. OUTPUT PHASE INCLUDES THE ACTUAL PURCHASE AND POST PURCHASE EVALUATION.

THE PROCESS OF GIFT EXCHANGE IS AN IMPORTANT PART OF CONSUMER BEHAVIOUR. VARIOUS GIFT GIVING AND RECEIVING RELATIONSHIPS ARE CAPTURED BY THE 5 CATEGORIES CONSUMER BEHAVIOUR IS NOT ABOUT MAKING A PURCHASE DECISION, IT ALSO INCLUDES THE FULL RANGE OF EXPERIENCES ASSOCIATED WITH USING OR CONSUMING PRODUCTS INCLUDING THE SENSE OF PLEASURE AND SATISFACTION DERIVED FROM POSSESING OR COLLECTING THINGS.

THE SENSE OF PLEASURE DERIVED FROM POSSESING COLECTING OR CONSUMING THINGS CONTRIBUTES TO CONSUMER SATISFACTION AND OVERALL QUALITY OF LIFE . THESE CONSUMPTION OUTCOMES OR EXPERIENCES INTURN AFFECT CONSUMERS FUTURE DECISION PROCESSES.

RELATIONSHIP MARKETING


MANY FIRMS HAVE ESTABLISHED RELATIONSHIP MARKETING PROGRAMS SOMETIMES ALSO CALLED LOYALTY PROGRAMS TO FOSTER USAGE LOYALTY AND A COMMITMENT TO THEIR COMPANYS PRODUCTS AND SERVICES. ALTHOUGH DIRECT MARKETING, SALES PROMOTION AND GENERAL ADVERTISING MAY BE USED AS A PART OF A RELATIONSHIP MARKETING STRATEGY. IT REALLY STRESSES LONG TERM COMMITMENT TO THE CUSTOMER BY MAKING THEM FEEL SPECIAL AND BY PROVIDING THEM PERSONALISED SERVICES.