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Module 2

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20 views

Module 2

Uploaded by

sharath
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MODULE 2

ANALYSING CONSUMER
BEHAVIOUR & MARKET
SEGMENTATION
MODULE 2 SYLLABUS
Analysing Consumer Behaviour: Connecting with consumers and
consumer in sighting, Factors influencing Consumer Behaviour,
Consumer characteristics influencing buying behaviour- personal
factors and cultural factors. Consumer Buying Decision Process,
Buying Roles, Buying Motives. The black box model of consumer
behaviour. Psychological Processes underlying consumer behaviour.

Market Segmentation: Concept of Market Segmentation, Benefits,


Requisites of Effective Segmentation, Bases for Segmenting Consumer
Markets, Market Segmentation Strategies. Segmentation method –
Geographic segmentation and Demographic segmentation,
psychographic segmentation, behavioural segmentation, volume
segmentation, deep segmentation. Indian Consumer- Features about
consumer India, Classifying Indian consumer by Income B2B
marketing Vs Consumer Marketing.
Understanding Consumer Behaviour

Meaning:

Consumer behaviour is the study of how individual


customers, groups or organizations select, buy, use,
and dispose ideas, goods, and services to satisfy their
needs and wants. It refers to the actions of the
consumers in the marketplace and the underlying
motives for those actions.
Continued…

Marketers expect that by understanding what causes


the consumers to buy particular goods and services,
they will be able to determine—which products are
needed in the marketplace, which are obsolete, and
how best to present the goods to the consumers.
 Definition:

Consumer behaviour is the study of how individuals,


groups and organizations select, buy, use and dispose
of goods, services, ideas, and experiences to satisfy
their needs and wants. – Philip Kotler.
Consumer behaviour is the study of the process
involved when individuals or groups select, purchase,
use or dispose of products, services, ideas or
experiences to satisfy needs and desires (Solomon et
al, 2006)
 CHARACTERISTICS OF CONSUMER BEHAVIOR:

 Consumer behavior is the part of human behavior


 Consumer behavior is dynamic
 Consumer behavior is influenced by psychological, social
and physical factors.
 Study of consumer behavior is crucial for marketers
 Consumer behavior is a continuous process as it involves the
process starts before the buying and continuing after
purchasing.
 IMPORTANCE:

 The study of consumer behaviour for any product is of vital


importance to marketers in shaping the fortunes of their
organisations.
 It is significant for regulating consumption of goods and thereby
maintaining economic stability.
 It is useful in developing ways for the more efficient utilisation of
resources of marketing. It also helps in solving marketing
management problems in more effective manner.
 Today consumers give more importance on environment friendly
products. They are concerned about health, hygiene and fitness.
They prefer natural products. Hence detailed study on upcoming
groups of consumers is essential for any firm.
 The growth of consumer protection movement has created
an urgent need to understand how consumers make their
consumption and buying decision.
 Consumers’ tastes and preferences are ever changing.
Study of consumer behaviour gives information regarding
colour, design, size etc. which consumers want. In short,
consumer behaviour helps in formulating of production
policy.
 For effective market segmentation and target marketing, it
is essential to have an understanding of consumers and
their behaviour.
 FACTORS INFLUENCING CONSUMER BEHAVIOUR:

Psychological factors

Personal factors

Cultural factors
 PSYCHOLOGICAL FACTORS:

Motivation
Perception
Learning
Personality
 PERSONAL FACTORS:

 Age and stage in the life cycle


 Education and Occupation
 Life-Style
 Economic Circumstances
 Primary And Secondary Groups
 Formal and Informal Groups
 Membership and Symbolic Groups
 Family
 Roles and Status
 CULTURAL FACTORS:

 Culture
 Subculture
 PROBLEM RECOGNITION OR NEED RECOGNITION

Need recognition of Problem Recognition is the first stage of


the buyer decision process. During need or problem
recognition, the consumer recognizes a problem or need
satisfied by a product or service in the market
The buyer feels a difference between his or her actual state
and some desired state. Internal stimuli can trigger the need.
This occurs when one person’s normal needs, such as hunger,
thirst , rise to a level high enough to become a driver. External
stimuli can also trigger a need.
 INFORMATION SEARCH :
The second stage of the purchasing process is searching for
information. Once the need is recognized, the consumer is
aroused to seek more information and moves into the
information search stage.
The consumer may have heightened attention or may
undertake an active search for information. The amount of
searching a consumer will depend on the strength of his drive,
the amount of information he starts with, the ease of obtaining
more information, the value he places on additional
information and the satisfaction he gets from searching
 EVALUATION OF ALTERNATIVES

With the information in hand, the consumer proceeds to


alternative evaluation, during which the information is used to
evaluate” brands in the choice set.
Evaluation of alternatives is the third stage of the buying
process. Various points of information collected from different
sources are used in evaluating different alternatives and their
attractiveness.
 PURCHASE DECISION:
At this stage of the buyer decision process, the
consumer buys the product. After the alternatives have been
evaluated, consumers decide to purchase products and
services. They decide to buy the best brand. But their decision
is influenced by others’ attitudes and situational factors.
Usually, the consumer will buy the most preferred brand.
 POST-PURCHASE EVALUATION:
In the buyer decision process’s final stage, post-purchase-
purchase behavior, the consumer takes action based on
satisfaction or dissatisfaction.
In this stage, the consumer determines if they are satisfied or
dissatisfied with the purchasing outcome. Here is where
cognitive dissonance occurs, “Did I make the right decision.”
At this stage of the buyer decision process, consumers take
further action after purchase based on their satisfaction or
dissatisfaction.

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