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PHI Lear ning

UNDERSTANDING CONSUMER BEHAVIOUR

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

PHI Lear ning

CONSUMER BEHAVIOUR

Consumer behaviour entails the totality of consumers decision involved in acquiring, consuming and disposing of goods and services, as well as making use of experiences and ideas.

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

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Consumer Behaviour is a Complex Dynamic Process


Consumers Perspective
How does a consumer decide that he/she needs a product? What is the best source of information to learn more about alternate choices?

Marketers Perspective
How are consumer attitudes towards products formed and/or changed? What cues do consumers use to choose and infer which brands/ products are superior to others?

Pre-purchase issues

Purchase issues

Is acquiring the product a stressful or pleasant experience? What does the product/ brand say about the consumer?

How do situational factors such as peak and off season/ store displays affect consumers purchase decision

Post-purchase Has the brand chosen solved consumers problems issues or performed its intended functions? Has it met
consumers expectations

What determines whether a consumer will be satisfied with a brand choice and whether he/she will buy it again? Does this person tell others about his/ her experience and influence others purchase decision

Each stage poses varied issues and offers subsequent challenges for the marketer.
Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

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How are consumers attitudes towards products formed and/or changed?

Changing consumer demographics Access to more choice of brands/ products

Consumer in the market place

Consumer and emerging new developments

Consumer as an individual
Consumer behaviour

Psychological Factors - Consumer involvement - Consumer motivation - Consumers perception Personal Factors - Personality and lifestyle - Family lifecycle Social Factors - Reference groups - Family

Cultural influences on consumer behaviour The creation and diffusion of consumer culture

Consumer and culture

Consumer and subcultures

Consumer age, sex, social class Subcultures

It is essential for the marketer to understand how each of these factors influences consumers buying decision. He can then formulate strategies in line with customer needs and demands.
Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

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How do psychological factors affect the consumers purchase decision?

Changing consumer perception

Learning-Superior after-sale-service

Motivationthe secret of energy

BeliefTATA signifies trust

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

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How do personal factors affect the consumers purchase decision? (Contd.)

Lifestyle

Self ConceptDefinitely male

GenderTargeting the male

AgeTargeting the youth

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

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How do social factors affect the consumers purchase decision?

Reference GroupI-bankers Phone Influence of Family

Status Symbol Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

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How do cultural factors affect the consumers purchase decision?

Targeting on the basis of Culture

Subculture: Targeting the Full of Life

Social Class
Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

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What cues/inferences do consumers use to choose and infer which brand/product is superior to others ?

Personal Sources Family Friends Neighbours

Commercial Sources Advertising Sales People Retailer/ Dealers Packaging

Public Sources Newspaper Radio/ Television Consumer Organizations

Experiential Sources Handling Examination Using the product

The extent of information search depends on: Motivation, ability and opportunity. How extensive the search is for high involvement, high risk products. Consumer demography and product type. The marketer needs to select the right source for information to reach the target consumer.
Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

Various Sources of Information the Marketer can Tap


Radio Transport

Events

Internet SMS Utilities Gaming

Outdoor

Sport

Podcasts

TV

Magazines Newspapers

Word-of-Mouth

Posters

Direct mailers

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

PHI Lear ning

How do situational factors affect consumers purchase decision?

When to purchase

Three Possibilities in Consumer Purchase Decision

Where to purchase

How to purchase

Influencing Factors: Store atmosphereDisplay, music, fragrance Time pressurePeak or off-season Pleasantness of shopping experience Schemes
Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

PHI Lear ning

What determines whether a consumer will be satisfied with a brand choice and whether he will buy it again? After buying a product, the consumer compares it with his expectations and is either satisfied or dissatisfied. Satisfaction or dissatisfaction affects: - Consumer value perceptions - Consumer communications - Repeat-purchase behaviour

Marketers use various strategies to positively influence consumers Post-purchase behaviour

Post-purchase Service

Feedback from Consumer

Loyalty Programmes

Advertisements

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar Consumer Behaviour: Insights from Indian MarketRamanujMajumdar

A Simple Model of Consumer Decision Making

Consumer Behaviour: Insights from Indian MarketRamanuj Majumdar

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