Consumer Behavior By Munif Ahmad

1. Consumer Behavior By Munif Ahmad Munif Ahmad

2. Consumer Buying Behavior refersto the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption. Study consumer behavior to answer: “How do consumers respond to marketing efforts the company might use?” Munif Ahmad

3. SIMPLE MODEL FOR CONSUMER BEHAVIOUR Culture Social Motives Attitudes Consumer Purchase Decision Needs Learning Family Business Perception Personality Economic Munif Ahmad

4. Marketing and Other Stimuli Model of Consumer Behavior Product Price Place Promotion Economic Technological Political Cultural Buyer’s Black Box Characteristics Affecting Consumer Behavior Buyer’s Decision Process Buyer’s Response Purchase Timing Purchase Amount Product Choice Brand Choice Dealer Choice Munif Ahmad

5. Characteristics Affecting Consumer Behavior Culture Social Personal Psychological Buyer Munif Ahmad

6. Factors Affecting Consumer Behavior:Culture Most basic cause of a person's wants and behavior. Values Perceptions • Subculture • Groups of people with shared value systems based on common life experiences. • North Indian Consumers • African American Consumers • Asian American Consumers • Mature Consumers • Social Class • People within a social class tend to exhibit similar buying behavior. • Occupation • Income • Education • Wealth Munif Ahmad

7. Factors Affecting Consumer Behavior:Social • Groups • Membership • Reference • Family • Husband, wife, kids • Influencer, buyer, user Social Factors Roles and Status Munif Ahmad

8. Personal Influences Factors Affecting Consumer Behavior:Personal Lifestyle Identification Age and Family Life Cycle Stage Occupation Personality & Self-Concept Economic Situation Activities Opinions Interests Munif Ahmad

9. Abundant Resources VALS 2 Actualizers Status Oriented Action Oriented Principle Oriented Fulfilleds Achievers Experiencers Believers Strivers Makers Minimal Resources Strugglers Munif Ahmad

10. Factors Affecting Consumer Behavior:Psychological Motivation Psychological Factors Perception Beliefs and Attitudes Learning Munif Ahmad

11. Maslow’s Hierarchy of Needs Self Actualization (Self-development) Esteem Needs (self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) Munif Ahmad

12. Types of Buying Decisions Complex Buying Behavior Variety- Seeking Behavior High Involvement Low Involvement Dissonance- Reducing Buying Behavior Significant differences between brands Habitual Buying Behavior Few differences between brands Munif Ahmad

13. Need Recognition Information Search The Buyer Decision Process Evaluation of Alternatives Purchase Decision Post-purchase Behavior Munif Ahmad

14. DECISION MAKING PROCESSES EXTERNAL INFLUENCES Culture Subculture Demographics Social Status Reference Groups Family Marketing Activities Experiences and Acquisitions SITUATIONS Problem Recognition Information Search Alternative Evaluation and Selection Outlet Selection and Purchases Post-purchase Processes SITUATIONS SELF-CONCEPT and LIFESTYLE Desires Needs INTERNAL INFLUENCES Perception Learning Memory Motives Personality Emotions Attitudes Experiences and Acquisitions Munif Ahmad

15. The Buyer Decision ProcessStep 1. Need Recognition Need Recognition Difference between an actual state and a desired state • Internal Stimuli • Hunger • Thirst • A person’s normal • needs • External Stimuli • TV advertising • Magazine ad • Radio slogan • Stimuli in the • environment Munif Ahmad

16. Personal Sources The Buyer Decision ProcessStep 2. Information Search Commercial Sources • Family, friends, neighbors • Most influential source of • information Public Sources • Advertising, salespeople • Receives most information • from these sources Experiential Sources • Mass Media • Consumer-rating groups • Handling the product • Examining the product • Using the product Munif Ahmad

17. The Buyer Decision ProcessStep 3. Evaluation of Alternatives Product Attributes Evaluation of Quality, Price, & Features Degree of Importance Which attributes matter most to me? Brand Beliefs What do I believe about each available brand? Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product? Evaluation Procedures Choosing a product (and brand) based on one or more attributes. Munif Ahmad

18. The Buyer Decision ProcessStep 4. Purchase Decision • Purchase Intention • Desire to buy the most preferred brand Unexpected situational factors Attitudes of others • Purchase Decision Munif Ahmad

19. The Buyer Decision Process Step 5. Postpurchase Behavior • Consumer’s Expectations of • Product’s Performance • Product’s Perceived • Performance Satisfied Customer! Dissatisfied Customer Cognitive Dissonance Munif Ahmad

20. Awareness Stages in the Adoption Process Interest Evaluation Trial Adoption Munif Ahmad

21. Adoption of Innovations Early Majority Late Majority Percentage of Adopters Early Adopters Laggards Innovators 34% 34% 16% 13.5% Time of Adoption 2.5% Late Early Munif Ahmad

22. Influences on the Rate of Adoptionof New Products Relative Advantage Is the innovation superior to existing products? Communicability Can results be easily observed or described to others? Product Characteristics Compatibility Does the innovation fit the values and experience of the target market? Divisibility Can the innovation be used on a trial basis? Complexity Is the innovation difficult to understand or use? Munif Ahmad

23. Consumer Behavior Transcript • Consumer Buying Behavior refers to the buying behavior of final consumers (individuals Behavior Consumer is a broad label that refers to any individuals or households that use goods and services generated within the economy. A consumer is a person who uses any product or service. 2. Consumer Buying & Study consumer behavior to answer: “How do consumers respond to marketing efforts the company might use?” (households) who buy goods and services for personal consumption. Munif Ahmad

24. Transcript Model of Consumer Product Price Behavior Stimuli Marketing and Other Economic Technological Place Political Promotion Cultural Buyer’s Characteristics Decision Affecting Buyer’s Black Box Consumer Process Behavior Product Choice Purchase Timing Brand Choice Buyer’s Response Purchase Dealer Choice Amount Munif Ahmad

25. Transcript • Perceptions Subculture Social Class • Groups of people with shared • People within a social class value systems based on tend to exhibit similar buying common life experiences. behavior. • North Indian Consumers • Occupation • African American Consumers • Income • Asian American Consumers • Education • Mature Consumers • Wealth Values  Most basic cause of a person's wants and behavior. 4. Factors Affecting Consumer Behavior: Culture Munif Ahmad

26. Transcript 5. Factors Affecting Consumer Behavior: Groups Social Membership • Reference • Family Husband, wife, kids Social Factors • • Influencer, buyer, user Roles and Status • 6. Factors Affecting Consumer Behavior: Personal Personal Influences Age and Family Life Cycle Occupation Stage Economic Situation Personality & Self-Concept Lifestyle Identification Activities Opinions Interests Munif Ahmad

27. Transcript 7. Factors Affecting Consumer Behavior: Psychological Motivation Beliefs and Psychological Factors Perception Attitudes Learning 8. Maslow’s Hierarchy of NeedsSelf Actualization (Self-development ) Esteem Needs ( self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) Munif Ahmad

28. 9.Types of Buying Decisions High Low Involvement Involvement Significant differences Complex Variety- between Buying Seeking brands Behavior Behavior Few differences Dissonance- Habitual between Reducing Buying Buying brands Behavior Behavior 10. The Buyer Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior Munif Ahmad

29. Transcript 11. DECISION MAKING PROCESSES EXTERNAL INFLUENCES Experiences and Acquisitions SITUATIONS Culture Problem Subculture Recognition Demographics Social Status Information Reference Groups Search Family Marketing Activities SELF-CONCEPT Alternative Evaluation Desires and and Selection LIFESTYLE Needs INTERNAL INFLUENCES Outlet Selection Perception and Purchases Learning Memory Post-purchase Motives Processes Personality SITUATIONS Emotions Experiences and Acquisitions Attitudes Munif Ahmad

30. Transcript Evaluation procedures Total product satisfaction  Brand beliefs  Degree of importance 6. External Stimuli  Product attributes 5. Internal Stimuli  It is affected by 2 (step:3) factors:  Evaluation of alternatives  Experiential Sources state  Public Sources actual state and a desired  Commercial Sources Difference between an  Personal Sources (step:1)  Need recognition  Information search (step:2) 12. Munif Ahmad

31. Transcript • Product’s Perceived Performance Desire to buy the most Expectations of preferred brand Product’s Performance  Consumer’s  Purchase Intention  Post purchase behavior (step:4) (step:5)  Purchase decision 13. Munif Ahmad