Consumer Behaviour

The Term Consumer Behaviour is defined as

The behaviour that the consumer displays in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs.

Consumer behaviour focuses on how the consumers take decisions to spend their available resources (time, money, effort) on consumption related items.

Basic Questions to answer

What they buy?
Why they buy it? When they buy it?

Where they buy it?

How often they buy it? How often they use it? How they evaluate it after the purchase? Impact of the evaluation on future purchase? How they dispose it?

Importance of Consumer Behaviour

Consumer play a vital role in the health of the economy by:1. Affecting the demand for the basic raw material, for transportation. 2. It affect the employment and deployment in the country. 3. It affects the failure of a company and the success of another.

Consumer Decision Making Process

Need Identification
Search for Information

Compare Alternatives

Choose Best Option

Buying and Using

Evaluating

Disposing

Consumer Research
To predict how the consumers will react to

promotional message.

If marketers know more about the consumer decision

making process they can design the strategies accordingly.

Older Concept of Behaviour

Gave very little thought to the impact of mood,

emotions or situation on consumer decisions.

Consumer was thought to be a rational decision maker

who evaluated different goods and selected the one that gives the highest utility and lowest cost.

Modern Concept of Behaviour

Consumers may not always be aware why they took

any decision.

Different external and internal factors play a major

role in his buying behaviour.

Quantitative Methodology
This approach is known as positivism
Descriptive in nature Used understand the effect of various promotional

inputs on consumer. Methods used are

Experiments Surveys Observations

Qualitative Research
This research consists of methods like

1. Depth Interviews 2. Focus Groups 3. Collage Research Small Sample size Are called interpretivism. They take consumer behaviour as a subset of human behaviour.

Positivism

Interpretivism

Prediction of consumer actions.

Understanding consumption practice.

Quantitative Research

Qualitative

Consumer is rational problem solver

No single objective

Cause and Effect Relation

Cause and effect relation is not there

Findings can be generalized

Findings can not be generalized

Process of Consumer Research

Defining the Objectives Collecting and evaluating secondary data. Designing a primary research study

Findings

Analyzing the data

Collecting primary data

Methods for Primary data

Experimentation (Controlled Experiment)
Test Marketing Surveys

Questionnaires
Attitude Scales Depth Interviews Focus Groups

Consumer Motivation
The key to the companys survival, profitability and

growth in a highly competitive marketplace is its ability to identify and satisfy the unfulfilled needs better and sooner than the competitor.

Motivation
Motivation is the driving force within individuals that

impels them to action. This driving force is produced by a state of tension, which exists as the result of an unfulfilled need. Individuals strive both consciously and subconsciously to reduce this tension though their behavior, that they think would relax their tension. The specific goals they set and actions that they take to achieve their goals are the result of individual thinking.

Model of the Motivation

Unfulfilled needs, wants, and desires

Tension

Drive

Behaviour

Goal Fulfillment

Tension Reduction

Needs can be
Primary (Innate Needs)
Acquired (Psychogenic Needs)

Example

To have a house is innate need, but which kind of house is a kind of psychogenic need.

Goals
Goals are sought after result of motivated behaviour.
Goal can be generic goal or a product specific goal. Marketers are particularly concerned with product

specified goals. Individuals set goals on the basis of their personal values, and they select means that they believe will help them achive their desired goals.

Positive and Negative Motivation

We may feel a driving force towards something
Or a driving force away from anything. (Fear)

A positive goal is towards which the behaviour is

directed, referred to as APPROACH OBJECT. A negative goals is one from which the behaviour is directed away.

Personality
What consumers purchase and when and how they

consume, are likely to be influenced by personality factors.

What is Personality
Personality may be defined as

Those inner psychological characteristics that both determine and reflect how a person responds to his or her environment.

Inner Characteristics
Inner characteristics includes specific qualities, attributes, traits, factors, and mannerism

that distinguish one individual from the other.

These characteristics influence the individuals product

choice, They affect the way consumers respond to promotional efforts, and when, where, how they consume particular products.

Nature of Personality
Personality reflects individual differences
Personality is consistent and enduring Personality can change as well

Personality Reflects Individual Differences

Because inner characteristics that constitute and

individuals personality are a unique set of factors no two individuals are exactly the same. Many individuals may be similar in one personality factor buy not in all. Personality helps us to categorize consumers in groups on the basis of different personality traits,.

Personality is Consistent and Enduring

Though marketers can not change the personality of

consumers, but if they know which characteristics influence the consumer response, then they can design message accordingly. Though personality is stable, still the behavior may not always be same.

Personality can Change

Personality change under certain circumstances

such as major life events like death, marriage, birth, divorce etc. It can also change gradually with time by gaining some experiences.

Theories of Personality
Freudian Theory
Neo Freudian Theory Trait Theory

Freudian Theory
This theory is based on the thinking that unconscious

needs and desires are at the heart of human motivation and personality. Human personality consists of three interacting systems
Id Superego

ego

ID

Superego

EGO

Product Personality
Human Drives are largely unconscious
Consumers are primarily unaware of their true reasons

of purchase. Consumer purchase are a reflection of their personality. Follower of Freudian theory consider consumers possession and appearances as reflection of their personality.

Neo Freudian Personality theory

Social relationship are fundamentals to the formation

and development of personality. They viewed human beings as seeking to attain various rational goals to overcome feelings of inferiority. People continuously attempt to establish significant relationship with others. CAD theory.
Compliant (Who move towards other) Aggressive (they desire for admiration) Detached (independence, self sufficiency)

 Marketers who use neo Freudian theory who position

their products and services as providing an opportunity I. To belong II. To be appreciated III. To be special

Trait Theory
Personality theory with a focus on psychological

characteristics Trait - any distinguishing, relatively enduring way in which one individual differs from another Personality is linked to how consumers make their choices or to consumption of a broad product category - not a specific brand

Copyright 2007 by Prentice Hall

Trait Theory
Consumer Innovators And Noninnovators
Innovativeness Dogmatism Social character Need for uniqueness Optimum stimulation The degree to which

consumers are receptive to new products, new services, or new practices

level Variety-novelty seeking

Trait Theory
Consumer Innovators And Noninnovators
Innovativeness Dogmatism Social character Need for uniqueness Optimum stimulation A personality trait that

level Variety-novelty seeking

reflects the degree of rigidity a person displays toward the unfamiliar and toward information that is contrary to his or her own established beliefs

Trait Theory
Consumer Innovators And Noninnovators
Innovativeness Dogmatism Social character Need for uniqueness Optimum stimulation level Ranges on a continuum for

inner-directedness to otherdirectedness Inner-directedness

rely on own values when

Variety-novelty seeking

evaluating products Innovators

Other-directedness
look to others less likely to be innovators

Trait Theory
Consumer Innovators And Noninnovators
Innovativeness Dogmatism Social character Need for uniqueness Optimum stimulation Consumers who avoid

appearing to conform to expectations or standards of others

level Variety-novelty seeking

Trait Theory
Consumer Innovators And Noninnovators
Innovativeness Dogmatism Social character Need for uniqueness Optimum stimulation level A personality trait that

Variety-novelty seeking

measures the level or amount of novelty or complexity that individuals seek in their personal experiences High OSL consumers tend to accept risky and novel products more readily than low OSL consumers.

Trait Theory
Consumer Innovators And No innovators
Innovativeness Dogmatism Social character Need for uniqueness Optimum stimulation Measures a consumers

degree of variety seeking Examples include:

Exploratory Purchase

level Variety-novelty seeking

Behavior Use Innovativeness Vicarious Exploration

Cognitive Personality Factors

Need for cognition (NC) A persons craving for enjoyment of thinking Individual with high NC more likely to respond to ads rich in product information, and those with less NC may be attracted towards other peripherals, such as models. Visualizers versus verbalizers A persons preference for information presented visually or verbally Verbalizers prefer written information over graphics and images.

Copyright 2007 by Prentice Hall

From Consumer Materialism to Compulsive Consumption

Consumer materialism The extent to which a person is considered materialistic There are persons which regard possession as essentials to their identities. They I. Value acquiring and showing off the possessions II. They are self centered and selfish III. They desire to have lots of things

Copyright 2007 by Prentice Hall

 Fixated consumption behavior Consumers fixated on certain products or categories of products Compulsive consumption behavior Addicted or out-of-control consumers

Self and Self-Image

Consumers have a variety of enduring images of

themselves These images are associated with personality in that individuals consumption relates to self-image

Copyright 2007 by Prentice Hall

The Marketing Concept

Issues Related to Self and Self-Image
One or multiple A single consumer will act

selves Makeup of the selfimage Extended self Altering the selfimage

differently in different situations or with different people We have a variety of social roles Marketers can target products to a particular self

The Marketing Concept

Issues Related to Self and Self-Image
One or multiple selves Makeup of the self Contains traits, skills, habits,

image Extended self Altering the selfimage

possessions, relationships and way of behavior Developed through background, experience,and interaction with others Consumers select products congruent with this image

Different Self-Images
Actual SelfImage Ideal Self-Image

Ideal Social Self-Image

Social Self-Image

Expected Self-Image

Copyright 2007 by Prentice Hall

The Marketing Concept

Issues Related to Self and Self-Image
One or multiple Consumers use self-altering

selves Makeup of the selfimage Extended self Altering the self image

products to express individualism by

Creating new self Maintaining the existing

self Extending the self