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What is consumer behavior?
Consumer Behavior is the study of the process involved whenindividuals or groups select, purchase, dispose of products
or services to satisfy needs and desires
Its a combination of five disciplines
Psychology
Sociology
Anthropology
Economics
Marketing Management
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Complete model of consumer behavior
Search
Need
recognition
Alternative
evaluation
Purchase
Stimuli
(marketer
dominated,
other)
External
search
Memory
Internal
search
Exposure
Attention
Comprehension
Acceptance
Retention Outcomes
Dissatisfaction Satisfaction
Individual
differences
resources
motivation &
involvementknowledge
attitudes
personality,
values, lifestyle
Influences
culture
social class
family
situation
Start
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Who influence a consumer?
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Overall Model Of Consumer Behavior
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Economic Model
Micro economic model:-
Alfred Marshall
ASSUMPTIONS:-
- its not possible to satisfy customers, they have unlimitedneeds and wants
- Customer allot budget to maximize the utility
- No external influence, preference dont change- Customers know the utility of a product hence they know
the level of satisfaction.
- Price determines the purchase.
- Law of Diminishing Marginal Utility.
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PERCEPTION: The process by which an individual selects, organizes, andinterprets stimuli into a meaningful and coherent picture
POSITIONING: Image of the product in the minds of the customer. Image helpsboost sales. Product BENEFITS should be focused more than its physical attributes.
Consumer Imagery: Consumers perceived images about product, services,prices, product quality, retail stores and manufacturers
Halo Effect: Consumers perceive and evaluate product or service based on justone dimension.
Stereotypes: People carrying biased pictures in their minds of the meanings ofvarious stimuli
Subliminal Perception: Message below the threshold levelbelow theconscious level
Umbrella Positioning: selling many related products under a singlebrand
http://marketingfaq.net/2011/11/what-is-a-brand/http://marketingfaq.net/2011/11/what-is-a-brand/ -
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Perceived Risk: The uncertainty that consumers faces when theycannot foresee the consequences of their purchase decisions:1) Functional
2) Physical 3) Financial 4) Social 5) Psychological 6) Time
Handling risk: select loyal brand, by brand image, store image, mostexpensive, seek information, seek assurance
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Product Repositioning
To face the competitors
To suit the current trend (Changing lifestyle)
To change the target segment To introduce new offerings
To motivate customers to buy
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Perceptual Mapping
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Digital Revolution in the Marketplace
Increased consumer power, access to
information, More products and services,
Interactive and instant exchanges, access to
customer patterns and preferences
Allows customization of products, services,
and promotional messages
Enhances relationships with customers more
effectively and efficiently
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What is consumer behavior? The behavior that consumersdisplay in searching for, purchasing, using, evaluating, and disposing of
products and services that they expect will satisfy their needs
Personal Consumer:The individual who buys goods and servicesfor own/family / household /friends use
Organizational Consumer: An organisation (business/government/other institution that buys the goods, services, and/or equipmentnecessary for the organization to function
Segmentation: process of dividing the market into subsets ofconsumers with common needs or characteristics
Targeting:selecting one ore more of the segments to pursue
Positioning: developing a distinct image for the product in the mind ofthe consumer
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Successful Positioning: Communicating the benefits of theproduct, rather than its features, Communicating a Unique Selling
Proposition for the product.
Loyalists: keep purchasing the brand Apostles:provide word of mouth
Defectors:neutral with brand and stop buying
Terrorists:negative experience and negative WOM
Hostages: not happy still buy product
Mercenaries:very satisfied, no real loyalty.
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Firms Marketing Efforts
1. Product
2. Promotion
3. Price
4. Channels of distribution
Sociocultural Environment1. Family
2. Informal sources3. Other noncommercial sources
4. Social class5. Subculture and culture
Output
Process
Input
Exter
nalInfluence
Postpurchase Evaluation
Purchase
1. Trial
2. Repeat purchase
Need
Recognition
Prepurchase
Search
Evaluation of
Alternatives
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience
Figure 1-1:
A Model of Consumer
Decision Making