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Unit 1

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17 views23 pages

Unit 1

Uploaded by

sneha.raitani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTRODUCTION TO

CONSUMER
BEHAVIOR
UNIT-1
Definition

Significance
TOPICS TO
BE
DISCUSSED Applying consumer behavior
knowledge

Consumer decision- making model


Behaviors are quite subtle

Prevalence can either affect own


Consumer actions or those of other
Behavior consumers

The decision process and


physical activity individuals
engage in when evaluating,
acquiring, using, or disposing of
goods and services.
Understanding the terminologies
• Customers and Consumers
Regular purchase v/s consumption
• The Ultimate consumer
Individual or household consumption
• The individual buyer
No to little influence v/s joint decision
Purchase for someone else
Possibility of multiple roles as a consumer
Influenc
Initiator Buyer User
er
• The Decision process
Series of activities and contemplations happen prior to the
actual buying, as well as determine the further course of
action.
The time period can vary from short to long.

Consumer behavior is a subset of human behavior


Internal and external influences play a key role
Psychology

Sociology

Multidisciplina
ry nature of Social psychology
Consumer
Behavior
Economics

Anthropology
Why study
consumer
behavior?
Significance in daily lives

Application to decision
making
• Micro perspective
• Societal perspective
APPLYING CONSUMER BEHAVIOR
KNOWLEDGE
Market Segmentation
Product development
Advertising
Pricing strategies
Brand positioning
Consumer Behavior and Marketing
Management
• Marketing is “the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods and services to create exchanges that satisfy
individual and organizational objectives.”
• Understanding consumer behavior is the corner stone of
marketing concept
Consumer’
Company Integrated
s want and
objectives strategy
needs
• Possibility of negative consequences while attempting to
satisfy consumer’s wants and needs
Eg: convenience packaging
Marketing oriented activities that organizations can
undertake:
Market opportunity analysis
General market trends
Consumer’s lifestyle
Income level
Target market selection
Strategies that cater to the target market identified
Target single or multiple groups

Marketing mix determination


Developing and implementing a strategy for delivering an
effective combination of want-satisfying features to
consumers within target markets.
PRODUCT PRICE PLACE PROMOTION
Product
What size, shape, and features should the product have?

How should it be packaged?

What aspects of service are most important to consumers?

What types of warranties and service programs should be


provided?
What types of accessories and associated products should be
offered?
Price

How price-aware are consumers in the relevant product


category?
How sensitive are consumers to price differences among
brands?
How large a price reduction is needed to encourage
purchases during new-product introductions and sales
promotions?
What size discount should be given to those who pay with
cash?
Place
What type of retail outlet should sell the firm's offering?

Where should they be located, and how many should there be?

What arrangements are needed to distribute products to retailers?

To what extent is it necessary for the company to own or maintain tight


control over activities of firms in the channel of distribution?
What image and clientele should the retailer seek to cultivate?
What methods of promotion are best
for each specific situation?

What are the most effective means


for gaining consumers' attention

Promotion
What methods best convey the
intended message?

How often should a given


advertisement be repeated?
Consumer Behavior and Nonprofit and Social
Marketing, Governmental Decision Making
• How can you market ideas and services?
• How does consumer behavior affect government decisions? (public
services, consumer protection)

Demarketing
All efforts to encourage consumers to reduce their consumption pf a
particular product or service (mostly natural non- renewable resources)
Consumer education- educational programs
Studying consumer behavior

• Stimulus, response and intervening variables


• Intervening variables magnify, modify or reduce the effect of
stimulus variables on response variables
• Models aid studying any discipline in a
structured/organized manner
Three major sections:
External environmental variables influencing behavior
Individual determinants of behavior
The consumer’s decision process

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