Consumer Buying

Behavior and Marketing

Strategy
What is CBB?
What is CBB?
 “The study of individuals, groups, or
organizations and the processes they use
to select, secure, use, and dispose of
products, services, experiences, or ideas
to satisfy needs and the impacts these
processes have on consumers and
society.”
P&G
 P&G created disposable diaper market in
Japan when it was introduced Pampers.
The product was an unmodified version
of the American product and was
marketed using the same approach used
in USA. However, Japanese competitors
soon reduced P&G’s share to less than 10
percent. “We really don’t understand the
consumer,” explained P&G’s CEO
P&G
 On the basis of consumer research, P&G
redesigned diapers to much thinner. It
also introduced pink and blue diaper.
Advertising changed to indirect approach
from direct approach. P&G now is very
successful in Japanese market.
Diversity in Consumer Behavior
 There are various reasons for diversity in
Consumer Behavior. Some of them are:
 Age
 Family Size
 Education
 Culture/Religion
 Psychology
 Geographic Location etc
 Classification of Indian Population
Total Rural Urban
Total Population 1,21 83 38
Male 62 42 20
Female 59 41 18
Literacy Details
Total Rural Urban
Literate 76 48 28
Literacy 73 67 84
Percentage (2011)
Literacy 65 59 80
Percentage (2001)
Applications of Consumer Behavior
 Marketing Strategy
 All marketing strategies and tactics are
based on explicit and implicit beliefs
about consumer behavior.
Applications of Consumer Behavior
 Regulatory Policy:
 Bodies which look after authenticity and
legality of the product.
 Like FDA, SEBI etc
Applications of Consumer Behavior
 Social Marketing: it is the application of
marketing strategies and tactics to later
or create behavior that have positive
effect on the targeted individuals or
society as a whole.
Applications of Consumer Behavior
 Informed Individuals:
 Availability of information resources.
 Companies strategies to educate
customers.
 Customers are using products/services
round the clock, during their work and
sleep hours also.
Marketing Strategy & Consumer
Behavior
Market Analysis

Market
Segmentation

Marketing Strategy

Consumer
Decision Process

Outcomes
Market Analysis
 Company
 Competitors
 Conditions
 Consumers
Market Segmentation
 Identify product related need sets
 Group customers with similar needs sets
 Describe each group
 Select attractive segments(s) to target
Marketing Strategy
 Product
 Price
 Distribution
 Promotion
 Service
Consumer Decision Process
Problem/Need
Recognition

Information
Search

Evaluation of
Alternatives

Purchase

Post Purchase
Behavior
Outcomes
 Individual :
◦ Need satisfaction/dissatisfaction/delight
 Firm :
◦ Sales
◦ Market Share
◦ Customer Satisfaction
 Society :
◦ Economic Outcome
◦ Social Welfare