Consumer Behavior

1. Consumer Behavior Session 3

2. Introduction

3. In the US, the Marlboro cowboy is usually shown alone • In Japan, the Marlboro cowboy is usually shown as part of a group… • Why?

5. 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.

6. 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

7. Why Study Consumer Behavior • Targeting/ Segmenting customers. • Targeted Advertisements. • Marketing Strategies

8. Understanding Customers • Who is Important? • What are their Choice Criteria? • When Do they Buy? • Where do they buy? • How do they Buy?

9. Consumer Behavior Model

10. 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

11. Social Factors

12. These Groups of People are highly influenced by their groups while purchasing Fashion Items.

13. Personal Factors

14. Psychological factors

15. Maslow’s Hierarchy of Needs

16. 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.

17. Perception • How many ads were you exposed to today? • Which ones do you remember? Why?

18. 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

19. 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

20. Search Dynamics

21. 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.

22. 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

23. 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

24. Consumer Buying Behavior

25. QUESTIONS??