Module -3 Identifying and selection market consumer buying behavior and factors affecting .

1. Explain how the social and personal factors influence the consumer buying behavior in relation to the fall product: (i) Instant food : - and (ii) color television . Social factors influencing reference groups family roles and statuses Personal factors influencing age and life cycle stage occupation economic circumstances Life style Personality and self concept

b) Explain any one model of consumer behavior The different or detailed models of factors influencing behavior are:Social personal Psychological cultural Reference Age and life Motivation Culture groups cycle stage subculture Perception social class Family Occupation learning Roles and Economic status circumstances beliefs and attitudes Life styles Personality and selfconcept

Buyer

What is consumer behavior ? How does it influence theme importance under market or customer oriented market. Definition: - Market forces? An:-consumer or buyer behavior is a comparatively new field of study .It is the attempt to understand and predict human actions in the buying role. Assume importance under market or customer oriented market. Definition :- All psychological ,social and physical behavior of potential customers as they become aware of , evaluate ,purchase ,consumer and tell others about products and services. Buyer behavior involves both individual and group processes. Consumer behavior is reflected from awareness right through post- purchase evaluation. It includes communication , purchasing and consumption behavior Consumer behavior is basically social in nature. How does it influence the market forces: In market segmentation target marketing To know and understand the needs unmet In positioning the product Market research

(3) a. list the different buying roles played by consumers? Ans:- There are five different buying roles played by consumers are: 1. Initiator:- A person who first suggests the idea of buying the particular product or service. 2. Influencer :- A person whose view or advice influences the decision. 3. Decider :- A person who decides on any component of a buying decision whether to buy what to buy ,how to buy or where to buy. 4. Buyer :- the person who makes the actual purchase

5. user:- A person who consumers or uses the purchase

With example describe the buying decision process? Need recognition Information search

Evaluation Of alternatives choosing the best alternative purchase decision

Post purchase behavior

Example 1. need recognition:- camera 2. information search:- inform sources fall into four groups: personal sources :-family, friends , neighbors ,acquaintance. =>commercial sources :- advertising ,salesperson, dealers, packaging , displays. =>public sources:- mass media , consumer rating organizations. =>experimental sources :- handling , examine , using the product. Ex:- Sony ,canon Kodak , Pentex etc.

3. Evaluation of alternatives : picture sharpness ,camera speeds , camera size, price. 4. choosing the best and purchase decisions;five purchase sub decisions 5. brand decision (canon) vendor decision(dealer) quantity decision(one) timing decision(weekend) payment method decision (credit cords) post purchase behavior :post purchase satisfaction post purchase actions post purchase use and disposal.

c) describe Abraham maslows motivational theory and its relevance in marketing.

Self Actualization needs Esteem needs

Social needs Safety and security needs

Physiological needs

motivation has a direct cause and effect relationships

 motivation acts as a driving force in the flow towards purchase action. Motivation sets into motion to take action to fulfill the need or want Motivation points out what is needed . A human being is motivated by needs and wants. We have a hierarchy of needs . A want is a recognized need which leads to activity to satisfy the need. A drive is an activated want , all behavior must be stimulated by drives. Maslow felt that as each need is fulfilled ,another higher level need arise and demands priority in its satisfaction. According to maslow , man or woman is a perpetually wanting animal and the average human being never reaches a state of complete satisfaction. Any urge moving or prompting a person to purchase decision is called a buying motive Relevance in marketing It contributes to product development and advertising creativity In preparing marketing strategies Deciding on marketing mix for each level people. To create want.

Seek redress directly from business firm

4. a. what is consumer buying behavior ? b. what is cognitive dissonance ?How can it be reduced ?
Take some action

Take some form Of public action

Take legal action to obtain redress Complain to business

Dissatisfaction occurs

when a person chooses between two or more alternative ,discomfort or dissonance will almost inivitably arise because of the persons knowledge that while the decision he has made has certain advantages ,it has also some disadvantages. Thus dissonance arises after almost every decision and further the individual will invariably take steps to reduce this dissonance.
Take no dissonance happens when consumer is highly involved in a purchase butBuying sees that little action brand differences in the brands. High involvement is due to the fact that purchase is expensive , infrequent and risky Decide to stop

Steps to reduce dissonance.

Take some form Of private action

Warn friends About the product or seller

5 explain a) psychological b) S.R model in the context of consumer buying behavior? Freudian psycho analytic model Freud pointed out that human personality has three parts a. Thee Id , the source of all mental energy which drives us to action. b. The superego , the internal representation of what is socially approved our conscience. c. The ego :- the conscious director of id represents impulses for finding satisfaction in socially acceptable manner. Stimulation-Response or S.R.Model

Drive Unactivated or unsatisfied want , the want must be strong enough to motivate

cues
These are stimuli Coming from the marketing And social environment Of the buyer

response
Learning takes place Through trial and error In a stimulus Response situation

State the grounds on which emotional and rational buying motives are differentiate? Emotional buying Desire to be different Desire for mystery, Desire for prestige Desire to attract the Opposite set are examples Of emotional buying motives. rational buying motives high quality , low price, long life ,performance, case of use are the example buying motives

Explain various factor which affects the consumer behavior?

:- Major factor influencing a consumers buying behavior .

Marketing stimuli

Other stimuli Economic Social Personnel Psychological;

Buyers charecteristics Culture Social Personnel psychological

Buyers decision process Problem recognition Information research Evaluation Decision Post purchase behaviour

Buyers decision

Product Price Place promotion

Product choice Brand choice Dealer choice Purchase timing Purchase amount

3) In what ways consumer buying behavior and organizational buying differ from each other ? explain.

Consumer buying behavior

Organizational buying behavior

1. consumer behavior is subjective. 2. Irrational purchases due to emotions . 3. personal need are primary. 4. No formalities performed in buying . 5. Five different roles are often played by the same person ,process involves a few persons . 6.process is simple 7.Flexible 8.No conflicts . 9. marketing mix for consumer markets will be determined by sales promotion advertisement and distribution.

1.more objective 2. rational as behavior influenced by multiple buying goals 3. goals play primary role 4. there is the influence of a formal organization structure on the buying process. 5. here five roles are played by several persons and the entire process is quite elaborate. 6.buying process is complex less flexible . 7.considerable need for resolving conflicts 8. whereas personals selling ,product design, service and price will play more important roles.

1.Name the economic factors which determine the consumer behavior ? Ans:- economic factors consists of their Spendable or disposable income. Savings and assets. Debts. Borrowing power and.

 Attitude toward spending versus saving. 2. Name the psychological factors that determine the buyer behavior? A person buying choices are further influenced by four major psychological factors Motivation. Perception a). selective attention b). selective distortion c). selective retention. Beliefs and attitudes. Learning

3.Name the social factors that influence the buyer behavior. Reference groups . Family . Roles and statuses. 4. what is reference groups ? References groups consists of all groups that have a direct or indirect influence on the persons attitudes or behavior. References groups are divided into 4 groups primary or membership groups secondary groups. Aspirational groups. Dissociative groups. 5.Analyze the social and cultural influences on buyer behavior? Cultural factors influencing are : culture. Sub culture. Social class.

Major social classes are: upper uppers lower uppers upper middles middle class worked class

 upper lowers lower lowers 6. Give a note on variables influencing organizational buying behavior? Individual. Social. Organizational . Environmental.

Analyze the economic model that determine the buyer behavior? According to this model , we have the following predictions about the buyer behavior; The lower the price of product , the bigger the quantity that will be bought (price effect). The higher the purchasing power, the higher the quantity that will be bought(Income effect) The lower the price of a substitute product, the lower the quantity that will be bought of the original product (substitution effect). The higher the promotional expenditure , the higher the sales (communication effect).

What is market segmentation?

Market segmentation means subdivision of entire market. Each segment consists of a group, of buyers who have identical or similar wants and needs. (Dividing heterogeneous market into homogeneous market) The term segmentation is used to refer to any division of the total market for the purpose of differentiating prices promotion strategy between buyers.

What are the benefits of market segmentation?

It is customer oriented It attracts large number of customers Helps distinguish one customer group from another within a market Facilitates proper choice of target market Facilitates effective tapping of the market Helps divide the market and conquer them Make the marketing more efficient and economic Helps support the less satisfied segments and succeed by satisfying segments Helps crystallize the needs of the target buyers and elicit more predictable response from them Helps develop marketing programs on a more predictable base, helps develop marketing offer that are most suited to each group Helps achieve the specialization required in product, distribution, promotional pricing to the matching, group and develop market offers and appeal that match the needs of such group Helps concrete effort on the most productive and profitable segments, instead of filtering them over irrelevant, or unproductive, or unprofitable segments When segmentation attains high sophistication customers and companies can choose each other and stay together

Explain the various bases used for segmenting customer market? There are two ways of segmenting customer market a. Based on customer behavior b. Based on consumer response Based on customer behavior: There are three characteristics of consumer is considered i. Geographic ii. Demographic iii. Physiographic

Geographic segmentation In this type of segmentation based on geographic unit such as region, city, states etc., The company may operate in one or more than one geographical area. A particular brand may be popular in north India then the north India is divided on the basis of zones, villages city climate etc., Ex: classical example of geographical segmentation is AMUL which was initially marketed in Gujarat only. Demographic segmentation In demographic segmentation the market is divided into groups based on characteristics like age, income, family, size, gender etc. Demographic variables are the most popular bases for distinguishing customer groups. The advantages of using demographic variables for segmentation are that, it is easy to measure. Age segmentation Income Gender Occupation Education Marital status Family size Physiographic segmentation In physiographic segmentation buyers are divided into three groups based on life style, personality and values. Of it has been that to customers with same demographic characters may act in entirely different manner. Even through the to may same age, profession, similar education and income, each of them have different attitudes. Based on customer response: Benefits: Buyer can be classified according to the benefits they seek. Ex take tooth paste. o Economy o Taste o Cosmetic o Quality Each benefit seeking group or particular demographic behavior and psychographic characteristics. What is the process involving in the market segmentation? There are three steps involved in market segmentation: a. survey stage b. analysis stage

c. profiling stage Survey stage: At this stage the researchers conduct explanatory research to gain insight into consumer motivation attitude and behavior. Then the researcher prepared a questionnaire and collects data attributes and also important ratings. The researcher will collect data with regard to i. Brand awareness ii. Usage pattern iii. Attitude towards products iv. Demographics v. Geographics etc., Analysis stage: cluster analysis is used for this stage for many purpose Profiling stage: Cluster is based on specific attributes each segment is given a name based on its dominant characteristics Ex: Ice cream buyers Market segmentation is done periodically because market segment changes

Define positioning? What is product positioning?

Having identified the potential segments and selected one or more to target the marketer must decide what position to pursue A position is the way firms product brand or organization is viewed relative to the competatition to the current and prospective customers Positioning is a firms use of all the elements at its disposal to create and maintain in the minds of a target market a particular image relative to competing products. Ex. To establish itself in a market that was dominated by firms appealing similarly to the performance of children Wendys positioned burgers hot and juicy and therefore similarly for adults. Marketer wants to convey the benefits most desired by the forget market Ex: of dandruff remedy, shampoo-head and shoulders Tools for competitive differentiation Developing a positioning strategy Image differentiation Personal differentiation