CONSUMER BEHAVIOR: A FRAMEWORK

Chapter 1: An Introduction to Consumer Behavior BY DR.GURMEET SINGH

Consumer Behavior . . .
. . . is defined as the study of the buying units and the exchange processes involved in acquiring, consuming, and disposing of goods, services, experiences, and ideas.

Elements of CB

CB CB CB CB

involves more than products involves more than just buying can involve many people involves decisions

PSYCHOLOGY OF CONSUMERS

Knowledge Attitude Intention Motive

Three Research Perspectives on Consumer Behavior

The Decision-Making Perspective The Experiential Perspective The Behavioral Influence Perspective

The Decision-Making Perspective . . .

. . . proposes that buying results from consumers perceiving that they have a problem and then they move through a series of rational steps to solve the problem
Generic Decision Model

Problem Recognition Search Alternative Evaluation Choice Postacquistion Evaluation

The Experiential Perspective.

. . . proposes that in some instances buying results from the consumers need for fun, to create fantasies, obtain emotions, and feelings. Frequently uses interpretative research methods.

The Behavioral Influence Perspective . . .

. . . assumes that strong environmental forces propel consumers to make purchases without necessarily first developing strong feelings or beliefs about the product.

Application Areas of Consumer Behavior: PERMS

Product Positioning and Product Differentiation Environmental Analysis Market Research Marketing-Mix Development Segmentation of the Marketplace

Product Positioning . . .
. . . is influencing how consumers perceive a brands characteristics relative to those of competitive offerings

Goal is to influence demand by creating a product with specific characteristics (i.e. brand attributes) and a clear image that differentiate it from competitors

Specific Positioning Competitive Positioning Psychological Positioning

Product Differentiation . . .
. . . is the process of manipulating the marketing mix so as to position a product in a manner that allows consumers to perceive meaningful differences between a brand and its competitors

Environmental Analysis . . .
. . . is the assessment of the external forces that act upon the firm and its customers, and that create threats and opportunities

Components of the External Environment

Demographic

Technological

Economic Natural

Political Cultural

MARKET RESEARCH . . .
. . . is applied consumer research designed to provide management with information on factors that impact consumers acquisition, consumption, and disposition of goods, services, and ideas

Marketing-Mix Development .
. . . involves the development and coordination of activities involving the:

Product Promotion

Pricing Distribution

Market Segmentation . . .
. . . involves subdividing the market place into distinct subsets of customers having similar needs and wants, each of which can be reached with a different marketing mix

Four Classifications of Segmentation Variables:

Characteristics of the Person Nature of the Situation in Which the Product or Service May Be Purchased Geography Culture and Subculture Adopted by the Consumer