VED PRAKASH PANDEY AND SOURABH SRIVASTAVA MBA -3rd SEM.

SECTION-B UIM

A person who purchases goods and services for personal use. A consumer is a person or group of people that are the final users of products and or services generated within a social system. A consumer may be a person or group, such as a household.

The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior
First, consumer learning is a process; that is, it continually evolves and changes as a result of newly acquired knowledge (which may be gained from reading, or observation, or thinking) or from actual experience. Both newly acquired knowledge and experiences serve as feedback to the individual and provide the basis for future behavior in similar Situation.

Consumer Examples
Advertising: pairing product with images of desired affect
Product: Evoke image of object associated with positive affect (e.g.,
Mustang; Coke Bottle)

Two Major Learning Theories

Behavioral Learning Cognitive Learning

Based on observable

Learning based on

behaviors (responses) that occur as the result of exposure to stimuli.

mental information processing Often in response to problem solving.

Elements of Learning Theories

Motivation Unfilled needs lead to

motivation Cues Stimuli that direct motives Response Consumer reaction to a drive or cue Reinforcement increases the likelihood that a response will occur in the future as a result of a cue

Reinforcement of Behavior
Positive reinforcement strengthens likelihood of

repeat behavior
Negative reinforcement encourages alternative

behaviors
Extinction: When a learned response is no longer

reinforced, the link between stimulus and reward is broken Forgetting: The reinforcement is forgotten

Behavioral Learning
Classical Conditioning: A stimulus is repeatedly paired

with another stimulus that elicits a known response. After some time the new stimulus produces the same response when used alone.
Instrumental (Operant) Conditioning: Based on a

trial-and-error process. Repetitions and their positive outcomes result in the formation of a habit.

Drivers for brand loyalty

Consumer drivers
Brand Drivers Social drivers ( group influencers) No loyalty Covetous loyalty Inertia loyalty Premium loyalty

PERCENTAGE OF USERS OF THESE PRODUCTS WHO ARE LOYAL TO ONE BRAND

CIGARETTES MAYONNAISE TOOTHPASTE COFFEE HEADACHE REMEDY FILM BATH SOAP KETCHUP LAUNDRY DETERGENT BEER AUTOMOBILE PERFUME PET FOOD 71% 65% 61% 58% 56% 56% 53% 51% 48% 48% 47% 46% 45% SHAMPOO SOFT DRINK TUNA FISH GASOLINE UNDERWEAR TELEVISION TIRES BLUE JEANS BATTERIES ATHLETIC SHOES CANNED VEGETABLE GARBAGE BAGS 44% 44% 44% 39% 36% 35% 33% 33% 29% 27% 25% 23%

A Conception of the Relationship Among Elements in an Attitude-Toward-the-Ad Model

Brand Loyalty vs. Habit

Habit: consumer picks product without much thought; may be due to convenience
Loyalty: consumer actively seeks out product

Issues with Credibility

Credibility of Informal Sources: Word of mouth or opinion
leadership (not always credible), Buzz agents, viral marketing Credibility of Formal Sources: role, affiliations, intentions, past performance, reputation, appearance, etc. Neutral sources have the greatest credibility Media Credibility: Perception of magazines, TV/radio shows Message Credibility: Topic, Appeals, Arguments, Style, etc. Receiver variables: Involvement, motives, congruency, mood, Sleeper Effect: Consumer forgets the source over time

Feedback Determining Effectiveness

Exposure Effects (how many received the message)
People meters

Persuasion Effects (was the message received and interpreted correctly?)

Message Attention, Interpretation, and Recall Physiological measures Attitudinal measures

Recall and recognition measures

Sales Effect: Did the ads increase sales?

Consumer Behavior and Social Class

Clothing, Fashion, and Shopping: lower classes logo

T-shirts, caps etc., upper classes subtle fashions; preference for stores where similar social classes shop. The Pursuit of Leisure: upper classes concerts, museum, college football; lower classes fishing, baseball; middle classes: increasing emphasis on experiences that bring family together, etc. Saving, Spending, and Credit: convenience vs. necessity Social Class and Communication: middle classes broader and longer point of view

Consumer needs are the basis of all modern marketing. Needs are the essence of the marketing concept. The key to companys survival, profitability, and growth in

highly competitive marketplace is its ability to identify and

satisfy unfulfilled consumer needs better and sooner than

competitors.

THANK YOU