.

Consumer Behavior
7-1
Copyright 2003 Prentice-Hall, Inc.

Consumer Behavior
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 .

7-2
Copyright 2003 Prentice-Hall, Inc.

Consumer Behavior
We focus on following question: How do the buyers characteristics cultural, social, personal, and psychological influence buying behavior?

7-3
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Cultural Factors Culture- Values . Indians avoid ready to eat packaged meals . Cola drinks , Soups, Kellogg .
Subcultures Vastu , Feng Shui

7-4
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Social class- Distinct preferences in clothing , automobiles, home furnishings etc

7-5
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Social Factors
Reference Groups - Direct or Indirect Membership groups Primary groups Secondary groups Non Membership Aspirational groups Dissociative groups Opinion leader
7-6
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Pressure for conformity Expose to new behavior and life style Influence attitudes

7-7
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Reference group influence is strong in Automobiles , CTV, Clothing , Cigarettes etc Group influence is strong for products that are visible to others & whom buyer respects

7-8
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Family
Family of Orientation Family of Procreation
Husband Life Insurance , Automobiles etc Wife Washing machine , Kitchenware Equal Vacation , Housing etc

Working Couple
7-9
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Roles and Statuses

RoleStatus- Surgeon , Sales manager , Clerk

7-10
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Personal Factors Age and Stage in the Life Cycle Family life cycle
Automobile at early age
7-11
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Occupation
Blue Collar Work Clothes , Work Shoes & Bus Transportation Director Expensive suits , Air travel , Club membership.

Economic Circumstances Spendable Income Savings

Attitude towards savings and spending
7-12
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Life Style Pattern of living reflected in

AIO
What are your A I O How do they affect what you buy ? Participation lifestyle Change lifestyle
AIO = Activities , Interests, and Opinions
7-13
Copyright 2003 Prentice-Hall, Inc.

 Personality and Self-Concept

Personality
Brand personality Sincerity Excitement Competence Sophistication Ruggedness
*** Aaker , Stanford University
7-14
Copyright 2003 Prentice-Hall, Inc.

Factors Influencing Behavior

Personality and Self-Concept

Self-concept Persons actual self-concept Ideal self-concept Others self-concept

7-15
Copyright 2003 Prentice-Hall, Inc.

Personality and Self-Concept

Levis Ruggedness MTV Excitement CNN Competence Levis in India Youthful, Fashion Conscious MRF - ???

7-16
Copyright 2003 Prentice-Hall, Inc.

Influencing Buyer Behavior

Psychological Factors Motivation Biogenic Psychogenic Motive

7-17
Copyright 2003 Prentice-Hall, Inc.

Influencing Buyer Behavior

Maslows Theory- Maslows Hierarchy of Needs

7-18
Copyright 2003 Prentice-Hall, Inc.

Influencing . Behavior
Maslows Theory
Human needs are arranged Starving man ( Need 1 )

Herzbergs Theory
Two Factor Theory Dissatisfiers Satisfiers *****
7-19
Copyright 2003 Prentice-Hall, Inc.

Influencing Buyer Behavior

Perception ~ Interpretation of information Perceptual process

Selective Attention Selective Distortion Selective Retention
7-20
Copyright 2003 Prentice-Hall, Inc.

Influencing Buyer Behavior

Perception Selective attention Current need Size of Stimuli Large ads . Color ads

7-21
Copyright 2003 Prentice-Hall, Inc.

Influencing Behavior
Perception Selective Distortion. Example : Smokers

7-22
Copyright 2003 Prentice-Hall, Inc.

Influencing Behavior
Perception Selective Retention .
Drama & Repetition

7-23
Copyright 2003 Prentice-Hall, Inc.

Influencing Buyer Behavior

Learning Change in the behavior arising out of experience. Example : Good experience of Dell .

7-24
Copyright 2003 Prentice-Hall, Inc.

Influencing Buyer Behavior

Beliefs and Attitudes
Japan Automobiles U S High Tech Innovations, France Wine, Perfumes

7-25
Copyright 2003 Prentice-Hall, Inc.

Influencing Buyer Behavior

Beliefs and Attitudes Belief - I believe smoking is hazardous to my health. Attitude -I believe smoking is hazardous to my health and I would like to quit smoking
7-26
Copyright 2003 Prentice-Hall, Inc.

Model of factors Influencing Behavior

Cultural

Social

Personal
Age & life cycle Stages

Psychologica l

Culture Sub Culture

Occupation
Reference Groups

Economic Circumstances

Motivation Perception Learning Beliefs & Attitudes

7-27

Social Class Family

Roles and Statuses

Lifestyle
Personality and self concept

Copyright 2003 Prentice-Hall, Inc.