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Consumer Behaviour

Consumer Behaviour. Block 1. Consumer Behaviour Issues and Concepts. Nature of Consumer Behaviour. Consumer Behaviour can be defined as: "The decision process and physical activity engaged in when evaluating, acquiring, using or disposing of goods and services.“

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Consumer Behaviour

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  1. Consumer Behaviour | | <document classification>

  2. Block 1 Consumer Behaviour Issues and Concepts | | <document classification>

  3. Nature of Consumer Behaviour • Consumer Behaviour can be defined as: • "The decision process and physical activity engaged in when evaluating, acquiring, using or disposing of goods and services.“ • Initiator The person who determines that some need or want is not being met. • Influencer The person who intentionally/unintentionally influences the decision to buy the actual purchase and/or use of product or service. • Buyer The person who actually makes the purchase. • User The person who actually uses or consumes the product or service. | | <document classification>

  4. THE DECISION PROCESS | | <document classification>

  5. INDIVIDUAL DETERMINANTS • Motivation and Involvement • Attitudes • Personality and Self-concept • Learning and Memory • Information Processing | | <document classification>

  6. EXTERNAL ENVIRONMENT • Cultural Influences • Sub-cultural Influences • Social Class Influences • Social Group Influences • Family Influences • Personal Influences • Other Influences | | <document classification>

  7. APPLICATIONS OF CONSUMER BEHAVIOUR IN MARKETING • Analyzing Market Opportunity • Selecting the Target Market • Determining the Product Mix • Use in Non-profit and Social Marketing | | <document classification>

  8. CONSUMER BEHAVIOUR AND LIFESTYLE MARKETING CHARACTERISTICS OF LIFESTYLE Lifestyle is a group phenomenon • Lifestyle pervades various aspects of life • Lifestyle implies a central life interest • Lifestyles vary according to sociologically relevant variables | | <document classification>

  9. INFLUENCES ON LIFESTYLE | | <document classification>

  10. VALS SYSTEM OF CLASSIFICATION | | <document classification>

  11. ORGANISATIONAL BUYING BEHAVIOUR • organizational buying as a complex process of decision making and communication, which takes place over time, involving several organizational members and relationship with other firms and institutions • Buying decision process | | <document classification>

  12. ORGANISATIONAL BUYING BEHAVIOUR: CHARACTERISTICS • Organizational buying is a multiperson buying activity • It is a formal activity which follows the procedures laid down in an organization • Longer time lag between efforts and results • The uniqueness of organizations | | <document classification>

  13. Factors influencing Organizational Buying External environment factors • Economic • Infrastructural • Social • Political • Competition • Regulatory | | <document classification>

  14. Organizational factors • objectives • Policies • objectives • Procedures • Organizational structure • System | | <document classification>

  15. Interpersonal factors • Authority • Status • Empathy • Persuasiveness • Individual factors • Age • Income • Education • Job position • Risk attitude | | <document classification>

  16. Buying situation • Straight re-buy situation • Modified re-buy • New task | | <document classification>

  17. Buying Behavior Models • Simple model | | <document classification>

  18. Buy grid model | | <document classification>

  19. The fisher’s model | | <document classification>

  20. | | <document classification>

  21. Block 2 Individual influences on buying behavior | | <document classification>

  22. Perception process | | <document classification>

  23. Stages in perceptual • Primitive categorization • Cue check • Confirmation check • Confirmation completion | | <document classification>

  24. Sensory system • Vision • Smell • Sound • Touch • Taste | | <document classification>

  25. Sensory thresholds • The absolute threshold • The differential threshold • The JND and Weber’s law | | <document classification>

  26. Perceptual selection • Subliminal perception Subliminal techniques • embeds • auditory messages • consumer folklore • low level auditory stimulation | | <document classification>

  27. Consumer motivation and involvement Need and types of needs • need for affiliation • need for power • need for uniqueness | | <document classification>

  28. Maslow’s hierarchy needs | | <document classification>

  29. Motivation Refers to the process that cause people to behave as they do | | <document classification>

  30. Theories of motivation • Instinct theory • Drive theory • Expectancy theory | | <document classification>

  31. Motivational conflicts | | <document classification>

  32. Types of involvement • Purchase involvement message-response involvement ego involvement • Measuring involvement • Development of involvement • Segmenting by involvement • Strategies of to increase involvement | | <document classification>

  33. Attitude and its constituent Attitude is “learned predisposition to respond in a consistently favorable and unfavourable manner with respect to given stimuli | | <document classification>

  34. Functions of attitude | | <document classification>

  35. Attitude models • Multi-attribute model | | <document classification>

  36. ATO These models seek information on the importance of brand attributes, belief about presence and absence of those attributes and information on their combined effect algebraically | | <document classification>

  37. Behaviour intention model This model predict intentions to behave Algebraically B=BI = W1 (AB) + W2 (SN): where B = behavior; BI = Behaviour Intention AB = attitude toward performing the behavior SN = the subjective norm W1 and W2, are empirically determined weights, through regression analysis. AB and SN are obtained directly from consumers via questionnaires. Thus, AB is obtained from the following equation: Where | | <document classification>

  38. where • SN = subjective norm; • NBj = the normative belief that a reference group of persons j thinks that the consumer should or should not perform the behaviour; • MC = the motivation to comply with the influence of the referent j and • n = number of relevant reference groups of individuals. | | <document classification>

  39. Learning and Memory Learning refers to the permanent change in the behavior caused by experience. Theories of learning Classical conditioning :theory given by Ivan Pavlov.Acc.to theory learning occurs when stimulus elicit a response paired with another stimulus that initially does not elicit as response on its own, but will cause a response over time since it is associated with the first stimulus | | <document classification>

  40. Operant conditioning This is given by B.F.Skinner acc.to this theory individual learns to perform behaviors that produce positive outcome and avoid those having negative outcome. Instrumental learning occurs in 2 ways +ve reinforcement in the form of reward response is strengthened. _ve reinforcement strengthens responses so that Appropriate behavior is learned. | | <document classification>

  41. | | <document classification>

  42. Issues of learning • Issue of consciousness • Observational learning | | <document classification>

  43. Memory:structure and functioning • Is the process of acquiring information and storing it over time so that it will available when needed. | | <document classification>

  44. Relationship among memory systems | | <document classification>

  45. Retrieving information is the process whereby information is accessed from long-term memory Measuring memory for advertising • Recognition vs. recall • Starch test • Problems with memory measures • Response biases • Memory lapses • Memory vs. feeling | | <document classification>

  46. Marketing applications • Repetition • Conditioning product associations • Stimulus generalizations • Strategies on stimulus Family branding Product line extensions Licensing Look-alike packaging Reinforcement of consumption | | <document classification>

  47. Personality and self concept Refers to a person's unique psychological make up and how it consistently influences the way a person response to the environment | | <document classification>

  48. Personality determinants | | <document classification>

  49. Theories of personality 1) Psychoanalytic theory given by Sigmund freud . Acc. to this personality is the product of Id Ego Super ego 2) Neo-Freudian theory Acc .to this theory personality is classified into three groups | | <document classification>

  50. Compliant individuals • Aggressive individuals • Detached individuals | | <document classification>

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