JAIPUR NATIONAL UNIVERSITY

A PRESENTATION ON

Consumer

Behavior

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Consumer Behavior

The behavior that consumers display in searching for, purchasing, using, evaluating, and
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Consumer Behavior

It is all psychological, social, and physical behavior of potential customer as they become aware of, evaluate purchase, consume and tell other people about products and services.

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Personal Consumer
The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend.

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Organizational Consumer
A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.
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FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR

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PERSONAL FACTORS

Needs

Gender Age Profession Life

style
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Attitude

SOCIAL FACTOR
o

Family
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PSYCHOLOGICAL FACTORS
MOTIVATION

PERCEPTION

ATTITUDE

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CULTURAL FACTOR
oSocial oSocial oSocial

concepts customs value

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ECONOMIC FACTOR
Personal Family

income

income expectations

Income

Consumer Reputation Govt. Liquid Price

policies assets
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level

OTHER FACTOR
Information

Various

mediums

Level

of knowledge and suggestions

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Statements

Needs and Motivation

Needs

are the essence of the marketing concept.

Motivation

is the driving force within individuals that impels them to action.

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Consumer Motivation

Represents the drive to satisfy both psychological and physiological needs through product purchase and consumption. gives insights into why people buy certain products. stems from consumer needs: industries have been built around basic human needs.
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Types of Consumer Needs

Physiological needs-

Fundamental human needs, including food, water and shelter

Safety

and Health 4/5/12 needs-

Safety and Health needs

Protecting our personal information and computers represents new types of safety needs. Businesses provide a variety of products and services to appeal to safety and health conscious consumers.
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Safety and Health Needs

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Maslows Hierarchy of Needs

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This ad reflects a need for accomplishmen t with a toothpaste.

Need of Consumer Behaviour

Fierce Competition of marketing opportunities

Benefits

Actions

& reaction of consumers

Success

in marketing according to purchase decision maker 4/5/12

Need of Consumer Behaviour

Helpful in product planning, development determination of products distribution policies of price

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In

Determination

Buying Decision Process of Consumer

The process of taking buying decision by a consumer is called buying decision process can be learnt by the buying process , and by its help a marketer can improvise in his market programs.
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It

BELIEFS AND ATTITUDE

According Need

to C. Glen And Gordon W. Pau : arousal search behavior

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Information Evaluation Purchase

decision

Post-purchase

1.Need Arousal
o

The very first step of buying decision process Unsatisfied need may cause tension, trauma, or difficulty.
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Need Arousal
Knowledge

of need: I) driving

motives ii) external motives Driving motives includes physical needs hunger,
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2. INFORMATION SEARCH
Information

regarding real purchase of good is collected. need is certain than purchase is certain. if need is not sufficient or 4/5/12

If

But

Consumer Influences

Organizational Influences

Obtaining

Consuming

Disposing

Consumer Behavior
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1.Need Arousal
o

The very first step of buying decision process Unsatisfied need may cause tension, trauma, or difficulty.
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Consumer Influences
Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Feelings Motivations Past Experiences Peer Groups Knowledge

Organizational Influences
Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability

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Consumer Influences

Organizational Influences

Obtaining

Consuming

Disposing

Consumer Behavior
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CONSUMER INFLUENCES Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Motivations Past Experiences Feelings Peer Groups Knowledge

ORGANIZATIONAL INFLUENCES Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability

OBTAINING How you decide you want to buy Other products you consider buying Where you buy How you pay for product How you transport product home

Consumer Behavior
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CONSUMING How you use the product How you store the product in your home Who uses the product How much you consume How product compares with expectations

DISPOSING How you get rid of remaining product How much you throw away after use If you resell items yourself or through a consignment store How you recycle some products

Customers?
Who

are our existing / potential customers? are their current / future needs? can we satisfy these needs?

What How

Can we offer a product/ service that the customer would value? Can we communicate with our customers? Can we deliver a competitive product of service?
Why
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Becoming a Winner : A Three Dimensional

Approach

Efficiency Ladder Ability To Achieve Lower cost

Ability to Focus ( Specialization Ladder )

Ability to Delight Customers ( Market Orientation 4/5/12

Successful Relationships

Customer Value Customer Satisfaction

Customer Retention

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Successful Relationships
Value, Satisfaction, and Defined as the ratio Retention Customer between the customers perceived benefits and the Value
Customer

Satisfaction
Customer

resources used to obtain those benefits

Perceived value is relative and subjective Developing a value proposition is critical

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Retention

Successful Relationships
Value, Satisfaction, and Retention The individual's perception of Customer the performance of the product Value or service in relation to his or
Customer

her expectations.

Satisfactio n
Customer

Customers identified based on loyalty include loyalists, apostles, defectors, terrorists, hostages, and mercenaries
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Retention

Successful Relationships
Value, Satisfaction, and The objective of providing value Retention Customer is to retain highly satisfied customers. Value Loyal customers are key Customer They buy more products Satisfaction They are less price Customer sensitive Retention
They pay less attention to

competitors advertising
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Servicing them is cheaper

Customer Profitability-Focused Marketing

Tracks costs and revenues of individual consumers them into tiers based on consumption behavior
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Categorizes

Customer ProfitabilityFocused Marketing

Tier 1: Platinum Tier 2: Gold Tier 3: Iron Tier 4: Lead

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Traditional Marketing Concept Vs. Value and Retention Focused Marketing

Traditional Marketing Concept
Make only what you can sell instead of trying to sell what you make

Value and Retention Focused Marketing

Use technology that enables customers to customize what you make

Do not focus on the product; focus on Focus on the products the need that it satisfies perceived value, as well as the need that it satisfies Market products and services that match customers needs better than competitors offerings Utilize an understanding of customer needs to develop offerings that customers perceive as more valuable than competitors offerings

Why Study Consumer Behavior? "All marketing decisions are based on assumptions and knowledge of consumer behaviour," (Hawkins and Mothersbaugh, 2007). Researching consumer behaviour is a complex process, but understanding consumer behaviour is critical to marketers-they can use it to:
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Provide value and customer satisfaction.

Effectively target customers.

Enhance the value of the company.

Improve products and services.

Create a competitive advantage

Understand how customers view their products

versus their competitors' products.

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Expand the knowledge base in the field of marketing,

Apply marketing strategies toward a positive effect on society (encourage people to support charities, promote healthy habits, reduce drug use etc.)

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Educating Consumers About Crises

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Educating Consumers About Health Understanding consumers issues or problems and

developing methods to reach and educate consumers

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Educating Consumers About Health Understanding consumers issues or

problems and developing methods to reach and educate consumers

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Consumer Behavior Is Interdisciplinary

Psychology

Sociology

Social

psychology
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A Simplified Model of Consumer Decision Making

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The Underlying Principles of Consumer Behavior

The Consumer Is Sovereign The Consumer Is Global Consumers Are Different; Consumers Are Alike
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