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Consumer Buying Behaviour

Consumer Buying Behaviour Consumer Buying Behavior 100 marks

OBJECTIVES: A through understanding of Consumer psychology is imperative to make any Marketing Strategy successful. An insight into the Consumers mind makes all to understand the complex buying behaviour of consumers. This paper provides an understanding of the various behavioral dimension of the Consumers mind. Learning Outcomes 1. The student will get acquainted with consumerism; he also understands the buying behaviour from the point of view of marketing professional and as a student. The student will learn the buying models which will give a comprehensive view of how buying decisions are taken in the mind of the customer along with the knowledge of Consumer adoption process and diffusion of innovation; Situational influences. 2. The student will understand how the internal factors like perception, learning and information processing, motivation, attitude and personality will influence a consumer to make a purchase decision. 3. The student will understand how the external factors: Groups, reference groups, opinion leaders, family, culture and subculture. 4. The student will understand through this subject basis of Organization buying process: Roles of buying centers/ Decision making units.

Course Content with Index 1. Diversity of consumer behavior; Role of consumer behavior in marketing strategy. 2. Individual aspects of consumer behavior: Perception, Learning & Information processing, 3. Motivation and involvement, Attitudes and Personality.

T.Suchitra Rani

Consumer Buying Behaviour

4. External influences: Group behavior; Social class; Opinion leaders; Reference groups 5. Role of Culture and subcultures; Family; 6. Consumer decision process: Problem recognition; Search and evaluation of alternatives; Purchase process; Post purchase behavior and cognitive dissonance. 7. Consumer adoption process and diffusion of innovation; Situational influences. 8. Organization buying process: Roles of buying centers/ Decision making units. 9. Application of consumer behavior studies in Consumerism in India and global markets.

Reference Text 1. 2. 3. Consumer Behavior Schiffman & Kanuk 6th edition Prentice Hall India Consumer Behavior Loudon & Della Bitta 4th edition Tata McGraw Hill Consumer Behavior building marketing strategy: Hawkins Best & Coney 7TH edition McGraw Hill International edition 4. 5. 6. Consumer Behavior in Marketing strategy : Howard Prentice Hall International Consumer behavior , a strategic approach -Hendry Assael - Biztantra M.S. Raja & Dominique Xardel: Consumer Behavior, Concepts, Application & Cases (Vikas) 7. Satish Batra & S. H. H. Kazmi: Consumer Behavior Text & Cases (Excel) Evaluation pattern for Internal 50 marks and External 50 marks S. No. 1 2 Activity Quizzes /Class test Attendence Assignment/ Presentation/ Exercise Total 100 marks Marks 10+10= 20 10 marks Total Number 2 quizzes/Test 10 classes

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10 marks

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50 marks + 50 External

T.Suchitra Rani

Consumer Buying Behaviour

Lesson Plan Lecture Topic Duration of regular Lectures + Tutorial 1 Diversity of consumer behavior; Role of consumer behavior in marketing strategy. 2 Individual aspects of consumer behavior: Perception, Learning & Information processing. 3 Motivation and involvement, Attitudes and Personality. 6+3(three sessions) 4 External influences: Group behavior; Social class; Opinion leaders; Reference groups 5 6 Role of Culture and subcultures; Family; Consumer decision process: Problem recognition; Search and evaluation of alternatives; Purchase process; Post purchase behavior and cognitive dissonance. Consumer adoption process and diffusion of innovation; Situational influences. 7 Organization buying process: Roles of buying centers/ Decision making units. Application of consumer behavior studies in Consumerism in India and global markets. 2+1 2+1 2+1 2+1 4+2(two sessions) 2 +1

T.Suchitra Rani

Consumer Buying Behaviour

The Course Material of Consumer Behaviour

Case 1 Sunder Singh Sunder Singh had studies only to high school. He is now 32-years of age, lived alone in a rented room, and worked eight-hour shift at one petrol pump, then went ot the other one for another eight-hour shift. He had a girlfriend and was planning to marry. One day when he returned from work, he got a note from his girlfriend that she was getting married to someone else and he need not bother her. This was a terrible shock to Sunder Singh and he fell apart. He stopped going to work, spent sleepless nights, and was very depressed. After a month, he was running low on his savings and approached his earlier employers to get back his job, but they would not give him a second chance. He had to quit his rented room, and sold the few things that he had. He would do some odd jobs at the railway station or the bus terminus. One day, he saw a young man selling newspapers. He asked him what he was selling and he told him about Guzara (an independent, non-profit, independent newspaper sold by the homeless and economically disadvantaged men and women of this metro city). Sunder Singh approached the office and started selling the newspaper. He did not make lot of money, but was good at saving it. He started saving money for a warm jacket for next winner. He was reasonably happy; he had money to buy food, and no longer homeless and shared a room with two others. One day, with his savings he bought a pair of second-hand Nike shoes from this flea market. Sunder Singh is not unique among low-income consumers, especially in large cities, in wanting and buying Nike shoes. Some experts believe that low-income consumers too want the same products and service that other consumers want. The working poor are forced to spend a disproportionate percent of their income on food, housing, utilities and healthcare. They solely rely on public transportation, spend very little on entertainment of any kind, have no security of any kind. Questions What does the purchase of a product like Nike mean to Sunder Singh? What does the story say about our society and the impact of marketing on consumer behavior?

T.Suchitra Rani

Consumer Buying Behaviour

Unit 1: Diversity of consumer behavior; Role of consumer behavior in Marketing Strategy. Consumer behaviour is comparatively a new field of study which evolved just after the Second World War. The sellers market has disappeared and buyers market has come up. This led to paradigm shift of the manufacturers attention from product to consumer and specially focused on the consumer behaviour. The evaluation of marketing concept from mere selling concept to consumer-oriented marketing has resulted in buyer behaviour becoming an independent discipline. The growth of consumerism and consumer legislation emphasizes the importance that is given to the consumer. Consumer behaviour is a study of how individuals make decision to spend their available resources (time, money and effort) or consumption related aspects (What they buy? When they buy? How they buy? etc.). The heterogeneity among people makes understanding consumer behaviour a challenging task to marketers. Hence marketers felt the need to obtain an in-depth knowledge of consumers buying behaviour. Finally this knowledge acted as an imperative tool in the hands of marketers to forecast the future buying behavior of customers and devise four marketing strategies in order to create long term customer relationship. Definitions of Consumer Behaviour Consumer behavior is the study of people and the products that help to shape their identities. The study of consumer behavior is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. 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 that these processes have on the consumer and society. Customers versus Consumers The term customer is specific in terms of brand, company, or shop. It refers to person who customarily or regularly purchases particular brand, purchases particular companys product, or purchases from particular shop. Thus a person who shops at Bata Stores or who uses Raymonds clothing is a customer of these firms. Whereas the consumer is a

T.Suchitra Rani

Consumer Buying Behaviour

person who generally engages in the activities - search, select, use and dispose of products, services, experience, or ideas.

Need for Study of Consumer Behaviour The study of consumer behaviour helps everybody as all are consumers. It is essential for marketers to understand consumers to survive and succeed in this competitive marketing environment. The following reasons highlight the importance of studying consumer behaviour as a discipline. Importance in day to day life The purpose of studying a discipline is to help oneself to better appreciate its contributions. The reason to study consumer behaviour is because of the role it plays in the lives of humans. Most of the free time is spent in the market place, shopping or engaging in other activities. The extra time is usually passed in knowing and thinking about products and services, discussing with friends about them, and watching advertisements related to them. The usage of them significantly reveals our life styles. All these reasons suggest the need for study. However, the purpose may be to attend immediate and tangible reasons. Pertinence to Decision Making Consumer behaviour is said to be an applied discipline as some decisions are significantly affected by their behaviour or expected actions. The two perspectives that seek application of its knowledge are micro