cb-module 2
DESCRIPTION
jhnkTRANSCRIPT
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CONSUMER BEHAVIOUR
Dr. Monika Suri
Associate Professor
Doon Business School
http://popvideoplayer%28%27http//www.encyclopedia.com/video/P1rICrAwDAc-psychology-of-consumer-behaviour.aspx'); -
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S. NO. COURSE
Total Classes (IN
HOURS)
1Module 1: Introduction to
Consumer Behaviour 8
2 Module 2 : Consumer as anIndividual
8
3 Module 3 : Consumer inSocial and Cultural Settings
8
4
Module 4 : Consumer
Decision Process 8
5
Module 4 : Consumer
Satisfaction 8
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MODULE 1 : Introduction to CB Introduction
Defining Consumer Behaviour
Reasons for Studying Behaviour,
Applying Consumer Behaviour Knowledge;
Scope of Consumer Behaviour;
Market Segmentation;
Bases of Segmentation, Criteria for Effective Targeting of Market
Segments.
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Is the subject of ConsumerBehavior interdisciplinary ?1. Psychology(the study of the individual:
individual determinants in buying behavior)
2. Sociology(the study of groups: group
dynamics in buying behavior )3. Social psychology(the study of how anindividual operates in group/groups and itseffects on buying behavior)
4. Anthropology (the influence of society onthe individual: cultural and cross-culturalissues in buying behavior)
5. Economics(income and purchasing
power)
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Course Objective
To familiarize the students with the
perceptions, experiences and
formulation processes pertinent to the
making of a judgment on the behaviour
of consumers, which changes
frequently over a period of time.
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Complexity of Consumer
Behaviour
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Introduction to CBConsumer Behavior may be defined as theinterplay of forces that takes place during a
consumption process, within a
consumers self and hisenvironment. - this interaction takes placebetween three elements viz. Knowledge,
Affect and Behavior; - it continuesthrough pre-purchase activity to the post
purchase experience; - it includes the stagesof evaluating, acquiring, using and disposing
of goods and services.
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The behavior that consumers display in
searching for, purchasing, using,
evalauting and disposing of products andservices that they expect will satisfy their
needs.
-Schiffman and Kanuk
..the decision process and physical
activity engaged in when evaluating,acquiring, using or disposing of goods and
services."
- Loudon and Bitta
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Consumer Psychology Includes variety of topics
including:
How consumers choose businesses, products and
services
The thought processes and emotions behind consumer
decisions
How environmental variables such as friends, family, media
and culture influence buying decisions
What motivates people to choose one product over another
How personal factors and individual difference affect
people's buying choices
What marketers can do to effectively reach out to their
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CB Definition the dynamic interaction of effect and
cognition, behavior and theenvironment by which human beings
conduct the exchange aspects of theirlives
-American Marketing Association
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Reasons for Studying Behavior
The study of consumer behavior deals withunderstanding consumption patterns andbehavior. It includes within its ambit theanswers to the following:
- What the consumers buy: goods andservices
- Why they buy it: need and want
- When do they buy it: time: day, week,month, year, occasions etc.
- Where they buy it: place
- How often they buy it: time interval
- How often they use it: frequency of use
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EXAMPLEThe lady of a house who is a housewife and spends
her day at home doing household chores watchesTV in her free time. That is her only source of
entertainment. The TV at home is giving problem.She desires a new TV set, and says that she wantsan LCD plasma TV. Now the roles played are:
1. Initiator: the housewife (mother)
2. Influencer: a friend / neighbour 3. Decider: the husband or the son
4. Buyer: the husband or the son
5. User: the family
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Types of Market SegmentationPsychographic segmentation
The basis of such segmentation is the lifestyle of the individuals.The individuals attitude, interest, value help the marketers toclassify them into small groups.
Behaviouralistic Segmentation
The loyalties of the customers towards a particular brand help the
marketers to classify them into smaller groups, each groupcomprising of individuals loyal towards a particular brand.
Geographic Segmentation
Geographic segmentation refers to the classification of market intovarious geographical areas. A marketer cant have similar
strategies for individuals living at different places.Nestle promotes Nescafe all through the year in cold states of the
country as compared to places which have well defined summerand winter season.
McDonalds in India does not sell beef products as it is strictly againstthe religious beliefs of the countrymen, whereas McDonalds in US
freely sells and promotes beef products.
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UNIT 4Consumer Decision Process
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onsumerDecision MakingProcess
PostpurchaseBehavior
Purchase
Evaluationof Alternatives
Information Search
Need Recognition
Cultural, Social,Individual andPsychological
Factorsaffect
all steps
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Cognitive DissonanceInner tension that a consumer
experiences
after recognizing an
inconsistency between behavior
and values
or opinions.
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Cognitive Dissonance
?Did I make a good decision?Did I buy the right product?
Did I get a good value?
Postpurchase Behavior
Can m inimize through:Effective Communication
Follow-upGuarantees
Warranties
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Five Factors influencingDecisions1. Level of consumer involvement
2. Length of time to make decision
3. Cost of good or service
4. Degree of information search
5. Number of alternatives
considered
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Factors InfluencingBuying Decisions
SocialFactors
IndividualFactors
Psycho-logicalFactors
CulturalFactors
CONSUMERDECISION-MAKING
PROCESS
BUY /
DONT BUY
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Cultural Influences onBuying DecisionsValues
Language
Myths
Customs
Rituals
Laws
Components ofCulture
Material Artifacts
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Social Influences
ReferenceGroups
OpinionLeaders
FamilyMembers
Social Influences onBuying Decisions
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Individual Influences
GenderAge
Family LifeCycle
PersonalitySelf-Concept
Lifestyle
IndividualInfluences
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Psychological Influences
PsychologicalInfluences on
Buying Decisions
Perception
Motivation
Learning
Beliefs & Attitudes
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PerceptionSelectiveExposure
SelectiveDistortion
SelectiveRetention
Consumer notices certain stimuliand ignores others
Consumer changes or distortsinformation that conflicts
with feelings or beliefs
Consumer remembers onlythat information that
supports personal beliefs
PRODUCT
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PRODUCT
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The basic components inconsumption behaviora) Decision making (Cognitive and
Affect)
b)Actual purchase (Behavior): -
c) Individual determinants and
environmental influencesd) Buying roles.
e) Buyers and Sellers
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ConsumerismConsumerism is a social
and economic order thatencourages the purchase of
goods and servicesinever-greater amounts
http://www.visualeconomics.com/how-the-average-us-consumer-spends-their-paycheck/ -
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http://www.visualeconomics.com/how-the-average-us-consumer-spends-their-paycheck/ -
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MODULE 2 Consumer Decision Process
1. Problem recognition;
2. Search
3. evaluating4. purchasing processes;
5. post purchase behaviour;
Consumer behaviour models;
consumerism;
organizational buying behaviour.
http://apnnews.com/2010/12/17/the-relevance-of-consumer-protection-act/consumer-protection/ -
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New Delhi: Consumer complaints
India has launched their official
website :
www.consumercomplaintsindia.org ,which gives a platform for the
consumers to voice out their issues
and brands to address them
effectively and efficiently. To protect
the rights of a consumer within the
expanding markets, it is a step
towards promoting consumerism in
India. While The Consumer
Protection Act 1986 came into forceonly with effect in 1987, a large
section of consumers in India remain
unaware of their rights as a
consumers.
http://apnnews.com/2010/12/17/the-relevance-of-consumer-protection-act/consumer-protection/ -
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http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=LzIS-qMMgY4eSM&tbnid=D6uQc0PhGYzEtM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.forex-tribe.com%2FLearn-purchasing-Power-Parity-PPP.php&ei=aZU1UubtAsWCrgf__oDgCQ&bvm=bv.52164340,d.bmk&psig=AFQjCNFZE48eQD87r5p3kJg9FfBJOrKhuw&ust=1379329730789587http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=permPyKL1qS2-M&tbnid=5Mh3AW9-qRFUpM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.google.co.in%2Furl%3Fsa%3Di%26rct%3Dj%26q%3D%26esrc%3Ds%26frm%3D1%26source%3Dimages%26cd%3D%26cad%3Drja%26docid%3DpermPyKL1qS2-M%26tbnid%3D5Mh3AW9-qRFUpM%3A%26ved%3D%26url%3Dhttp%253A%252F%252Fmusicvalleygroup.com%252F2013%252F09%252F09%252F%26ei%3DZ5Q1UtqQEoT5rQf4xIGwBQ%26bvm%3Dbv.52164340%2Cd.bmk%26psig%3DAFQjCNHpgkIZjcg0q3_XmPso_oOchAsJLw%26ust%3D1379329511813634&ei=zJQ1UsbMGMPlrAeY1oFA&bvm=bv.52164340,d.bmk&psig=AFQjCNHpgkIZjcg0q3_XmPso_oOchAsJLw&ust=1379329511813634 -
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http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=LzIS-qMMgY4eSM&tbnid=D6uQc0PhGYzEtM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.forex-tribe.com%2FLearn-purchasing-Power-Parity-PPP.php&ei=aZU1UubtAsWCrgf__oDgCQ&bvm=bv.52164340,d.bmk&psig=AFQjCNFZE48eQD87r5p3kJg9FfBJOrKhuw&ust=1379329730789587http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=permPyKL1qS2-M&tbnid=5Mh3AW9-qRFUpM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.google.co.in%2Furl%3Fsa%3Di%26rct%3Dj%26q%3D%26esrc%3Ds%26frm%3D1%26source%3Dimages%26cd%3D%26cad%3Drja%26docid%3DpermPyKL1qS2-M%26tbnid%3D5Mh3AW9-qRFUpM%3A%26ved%3D%26url%3Dhttp%253A%252F%252Fmusicvalleygroup.com%252F2013%252F09%252F09%252F%26ei%3DZ5Q1UtqQEoT5rQf4xIGwBQ%26bvm%3Dbv.52164340%2Cd.bmk%26psig%3DAFQjCNHpgkIZjcg0q3_XmPso_oOchAsJLw%26ust%3D1379329511813634&ei=zJQ1UsbMGMPlrAeY1oFA&bvm=bv.52164340,d.bmk&psig=AFQjCNHpgkIZjcg0q3_XmPso_oOchAsJLw&ust=1379329511813634 -
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FACTS ET explains the concept of purchasing
power parity
What is purchasing power parity? Purchasing power parityis based on the
assumption that in absence of duties,
transaction costs and other curbs, identical
goods should have the same price in differentcountries when expressed in same currency.
http://economictimes.indiatimes.com/topic/Purchasing%20power%20parityhttp://economictimes.indiatimes.com/topic/Purchasing%20power%20parity -
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References http://www.nptel.iitm.ac.in/courses/11010
5029/
http://www.slideshare.net/kumaravinash23/chapter-3-market-segmentation
http://www.nptel.iitm.ac.in/courses/110105029/http://www.nptel.iitm.ac.in/courses/110105029/http://www.nptel.iitm.ac.in/courses/110105029/http://www.nptel.iitm.ac.in/courses/110105029/