Consumer Behavior An Overview
Consumer Behavior An Overview
An Overview
Brief Overview of topics
Learning Objectives:
• Overview.
• Defining Consumer Behavior.
• Applications of Consumer Behavior.
• Evolution of Consumer Behavior.
• How to study Consumer behavior.
• What influences consumer behavior.
• Underlying Principles of Consumer behavior.
• Consumer behavior and Marketing Strategy.
• Stimulus – Response model of Consumer behavior.
Introduction to Consumer Behavior
Makes us
Social Marketing
better consumers
Introduction to Consumer Behavior
COMPREHENSIVE
MANUFACTURING SELLING MARKETING
CONSUMER
ORIENTATION ORIENTATION ORIENTATION
ORIENTATION
Introduction to Consumer Behavior
Manufacturing Orientation:
Selling Orientation:
Marketing Orientation:
• Focus groups.
Consumer is
sovereign
Consumer is
Consumers are
global
alike
Consumers are
Consumers have
different
rights
Introduction to Consumer Behavior
• To create a consumer.
• To develop consumer based corporate strategy.
• To understand consumer.
• To create product and services that meet the consumers’
needs and expectations.
• To communicate with consumer.
• To retain consumer.
• To modify and improve products and services.
Introduction to Consumer Behavior
Cross-functional integration
Customer-based metrics
Introduction to Consumer Behavior
Consumer behavior and Marketing Strategy – Consumer driven
Market Strategy Process:
Market Analysis
Market Segmentation
Marketing Strategy
Implementation
Introduction to Consumer Behavior
Marker Analysis
Consumer Centric
Consumer
Company Marketing Strategy
Environmental
Political-legal
Market segmentation
CONSUMER
Implementation Demographic
in marketplace Situational
Psychographic
Behavioral
Marketing Mix
Strategies
Product
Price
Promotion
Brand
Place
7 Rs
Introduction to Consumer Behavior
Market analysis:
• It is the process of analyzing changing consumer trends, current
and potential competitors, company strengths & resources and
technological, legal and economic environments. Process of …….
Analyzing changing consumer trends involves gaining
consumer insight.
Consumer insight refers to understanding consumers’
expressed and unspoken needs and realities that affect how
Market Segmentation
Consumer Characteristics :
Organization Consumer
Retailing Which outlets to sell products, Where they expect to buy product.
Location in store and shelf position.
Buyer’s Buyer’s
Marketing Other
Characteristics decision process Buyer’s decisions
Stimuli Stimuli
Problem recognition Product choice
Cultural Information search Brand choice
Product Economic
Social Evaluation of Dealer choice
Price Technological
Personal Alternatives Purchase timing
Place Political
Psychological Purchase decision Purchase amount
Promotion Cultural
Post purchase evaluation
The Consumer Decision Process
The Consumer Decision Process
Learning objectives:
Introduction.
Four views of consumer decision making.
Models of consumer behavior.
Input, Process and Output model.
Engel-Blackwell-Kollat model.
Consumer Decision Process (CDP) Model.
Types of decision processes.
Decision Process continuum.
Initial purchase and Repeat purchase.
Factors affecting the extent of problem solving.
Degree of involvement.
The Consumer Decision Process
Introduction
Economic view,
Passive view,
Cognitive view and
Emotional view.
The Consumer Decision Process
• The consumer does not have full knowledge about the product and
hence can not make perfect decisions but seeks information about
available alternatives to make satisfactory decisions.
The Consumer Decision Process
1. Economic model.
2. Psychological model.
3. Pavlovian model.
4. Input, Process, Output model- Gandhi, Kotler.
5. Sociological model.
6. Howrath Sheth model.
7. Engel-Blackwell-Kollat model.
8. Model of family decision making.
9. Nicosia model.
10. A model of Industrial buying behavior.
The Consumer Decision Process
PersonalIty
M Intention P Purchase
Need
o e
Firm’s Recognition
t r
Marketing i c
Effort v Product e Post-purchase
Interest Evaluation
a Awareness p Behavior
t t
Social i i
Environment o o Repeat
Interest Breakdown purchase
n n
Attitudes Discontinuation
The Consumer Decision Process
Engel-Blackwell-Kollat Model
Information Central
Processing Control unit
Decision Environmental
Process Influences
The Consumer Decision Process
Engel-Blackwell-Kollat model
The Consumer Decision Process
Search
Searchfor
forInformation
Information
Pre-Purchase
Pre-PurchaseEvaluation
Evaluation
Purchase
Purchase
Consumption
Consumption
Post-Consumption
Post-ConsumptionEvaluation
Evaluation
Divestment
Divestment
The Consumer Decision Process
• Culture
• Social Class
• Family
• Personal influences
Need • Situation
Memory
Recognition
Individual
Differences
• Consumer Resources
• Motivation
• Knowledge
• Attitudes
• Personality, values
and Lifestyle
The Consumer Decision Process
Environmental
Need Influences
Recognition
• Culture
• Social Class
• Family
Internal • Personal influences
Search Search • Situation
Individual
Differences
Information Processing
Exposure
Attention
Stimuli
• Marketer
Dominated Comprehension
Memory
• Non Marketer
Dominated
Acceptance
Retention
The Consumer Decision Process
• Salient attributes include price, quality, reliability and factors that vary
little between similar products. Consumers think about these as
potentially the most important.
• Determinant attributes (Such as style and finish) usually determine
which
brand or store consumers choose especially when salient attributes are
same.
• Consumers often monitor attributes such as size, quality and price .
Changes in these affect their brand and product choices.
The Consumer Decision Process
Pre-Purchase Evaluation of alternatives: Environmental
Influences
Need
Exposure Recognition • Culture
• Social Class
• Family
• Personal infl.
Internal Search
Attention • Situation
Stimuli Search
• Marketer Individual
Dominated Comprehension Memory Differences
• Non Marketer
Dominated • Consumer
Resources,
Acceptance • Motivation,
Pre-Purchase
Evaluation of • Knowledge,
Alternatives • Attitudes and
Retention
• Personality,
values and
Lifestyle
External
Search
The Consumer Decision Process
Purchase:
Individual
• Marketer
Memory Differences
Dominated Comprehension
• Non Marketer
• Consumer
Dominated
Resources,
Acceptance • Motivation,
Pre-Purchase
Evaluation of • Knowledge,
Alternatives • Attitudes and
Retention • Personality,
values and
Lifestyle
External Purchase
Search
The Consumer Decision Process
Dissatisfaction Satisfaction
The Consumer Decision Process
Divestment: Environmental
Need
Influences
Recognition
Exposure • Culture
• Social Class
Internal Search • Family
Search
• Personal infl.
Attention • Situation
Stimuli Pre-Purchase
Evaluation of
• Marketer Alternatives Individual
Dominated Comprehension Memory Differences
• Non Marketer Purchase
Dominated • Consumer
Acceptance Resources,
• Motivation,
Consumption
• Knowledge,
Retention • Attitudes and
Post-Consumption
• Personality,
Evaluation
values and
Lifestyle
External Dissatisfaction Satisfaction
Search
Divestment
Introduction to Consumer Behavior
Individual
Differences
Environmental
Influences
Psychological
processes
Introduction to Consumer Behavior
Individual Differences
Demographics,
Psychographics, Consumer
Values and Resources
Personality
Motivation Attitudes
Introduction to Consumer Behavior
Environmental Influences
Personal
Family
Influence
Situation
Introduction to Consumer Behavior
Psychological Processes
Information
Perception
Processing
Attitude and
Learning
Behavior change
The Consumer Decision Process
When consumers make decisions for the first time, their actions are
based on some form of problem solving.
The Consumer Decision Process
Initial Purchase
Repeat Purchases
Impulse buying
Degree of
Involvement
Degree of
Differentiation
Availability of
Time
The Consumer Decision Process
Degree of Involvement:
Personal factors,
Product factors,
Situational factors and
Consumer's mood state.
The greater the perceived risk, the greater is the likelihood of high
involvement.
Time availability
Recap:
Introduction.
Four views of consumer decision making.
Models of consumer behavior.
Input, Process and Output model.
Engel-Blackwell-Kollat model.
Consumer Decision Process (CDP) Model.
Types of decision processes.
Decision Process continuum.
Initial purchase and Repeat purchase.
Factors affecting the extent of problem solving.
Degree of involvement.