Download Consumer Behavior

Consumer Behavior
Session 3
PowerPoint Presentation
Introduction
 In the US, the Marlboro cowboy is usually shown
alone
 In Japan, the Marlboro cowboy is usually shown as
part of a group…
 Why?
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Target Holland
Offensive in US/ UK.
Youth as Target Market.
Whiter Play station is powerful, sexier, strong.
Challenging cultural norms but not so much in
Holland.
Solution
 Culture has an influence on consumer
behavior
 US culture = importance of individual; not
true in Asia
 Japanese consumers think a single cowboy
looks “lonely” and “poor”
– Just an ordinary worker on a farm
Why Study Consumer Behavior
 Targeting/ Segmenting customers.
 Targeted Advertisements.
 Marketing Strategies
Understanding Customers
Who is Important?
What are their Choice Criteria?
When Do they Buy?
Where do they buy?
How do they Buy?
Consumer Behavior Model
Decision
Marketing
Stimulus
Product
Place
Price
Promotion
Process
Other
Stimulus
Economical
Technological
Political
Buyer
Characteristics
Cultural
Social
Personal
Psychological
Problem
Recognition
Information
Search
Evaluation
Decision
Post
Purchase
Behavior
Buyers
Decisions
Product
Brand
Cultural Factors
 Cultural:
– Values, Attitude, Religion, Language
 Subculture:
– Group of People with common values, attitude based on
common experience.
– Teenagers, Racial group, Geographic groups
 Social Class
– Upper, Middle, Lower
– Have common tastes, media preferences, lifestyle
Social Factors
Membership
Groups
Reference Groups
(Aspirational)
Family
Social Factors
(Husband, wife,
Children)
Roles & Status
(Social Status)
Opinion Leaders
These Groups of
People are highly
influenced by their
groups while
purchasing
Fashion Items.
Personal Factors
Age and Stage
in Life
Occupation &
Economy
Personal
Life Style
Personality and
Self Concept
Brand
Personality
Psychological factors
Freud’s
Theory
Motivation
Hertzberg
Maslow’s
Hierarchy
Selective
attention
Psychological
Perception
Selective
distortion
Learning
Selective
retention
Maslow’s Hierarchy of Needs
Perception
 Perception is the process by which people
select, organize, and interpret information.
 Perception Includes:
– Selective attention
• Consumers screen out information,
• Rs. 5 Discount Vs. Price Rs 295 for a product worth 300
• Wai Wai at at 3PM
– Selective distortion
• People interpret to support beliefs
• Helps fight distorted information, case insect in coke
– Selective retention
• People retain points to support attitudes
• Positive attributes of strong brands are retained.
Perception
1. How many ads
were you exposed
to today?
2. Which ones do
you remember?
Why?
Buying Decision Process
 Need Recognition
Needs can be
triggered by:
Internal stimuli
Normal needs
become strong
enough to drive
behavior
External stimuli
Advertisements
Friends of friends
Buyer Decision Process
 Information Search
 Consumers exhibit
heightened attention or
actively search for
information.
 Sources of information:




Personal
Commercial
Public
Experiential
 Word-of-mouth
 Search Dynamics
Search Dynamics
Buyer Decision Process
 Evaluation of
Alternatives
 Hotel: Location,
Hygiene, Price
 Evaluation procedure
depends on the consumer
and the buying situation.
 Most buyers evaluate
multiple attributes, each of
which is weighted
differently.
 Depends on Beliefs and
Attitudes
 At the end of the
evaluation stage, purchase
intentions are formed.
Beliefs and Attitudes
• Belief
– a descriptive thought about a brand or service
– may be based on real knowledge, opinion, or
faith
• Attitude
– describes a person’s evaluations, feelings and
tendencies toward an object or idea
– They are difficult to change
Buyer Decision Process
Purchase Decision
– Governed by attitude of others.
– How strong is your motivation to encounter
negative attitudes.
– Situational factors and risks
Post Purchase Behavior
– Satisfaction, Delight
– Cognitive Dissonance
– Post purchase action
Consumer Buying Behavior
Significant Differences
between Brands
Few Differences between
Brands
High Involvement
Low Involvement
Complex buying
behavior
Variety-seeking
buying behavior
(Cars, Home
Appliance)
(Toothpastes,
Candy)
Dissonance-reducing
buying behavior
Habitual buying
behavior
(Diamond)
(Sugar, Rice, Salt)