CONSUMER BEHAVIOUR

The psychology of how consumers think, feel and select

between different alternatives. The psychology of how the consumer is influenced by his environment. Consumer behavior can be defined as the decision-making process and physical activity involved in acquiring, evaluating, using and disposing of goods and services. Process of decision-making for purchase and using the goods, and then the post-purchase behavior shows the acceptance of goods/service by the end user. Process starts much before the goods have been acquired or bought.

consumer Influences

organizational Influences

obtaining

consuming

disposing

consumer Behavior

consumer Influences

organizational Influences
Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability

Culture

Ethnicity Personality Family Life-stage

Values
Income Available Resources Attitudes

Opinions
Feelings Motivations Past Experiences Peer Groups Knowledge

Obtaining
How you decide you want to buy Other products you consider buying Where you buy How you pay for product

Consuming
How you use the product How you store the product in your home Who uses the product How much you consume How product compares with expectations

Disposing
How you get rid of remaining product How much you throw away after use If you resell items yourself or through a consignment store How you recycle some products

How you transport product home

Methods of Studying Consumer Behavior

Observation
In-home observation: examining how and when consumers use and consume products in their households

Shadowing: following and observing consumers in the shopping and consumption processes. Researchers may ask questions about reasons for behaviors
Physiological methods: Techniques borrowed from medicine, psychology and other sciences including cameras to measure eye movement, galvanic skin response, and MRI

Consumer Research Methods

Interviews and Surveys
Surveys: efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts, and mail questionnaires) Focus Groups: a group discussion led by a moderator skilled in persuading consumers to thoroughly discuss a topic of interest Longitudinal Studies: repeated measures of activities over time to determine changes in opinions, buying, and consumption behaviors

Consumer Research Methods

Experimentation
Attempts to understand cause-and-effect relationships by

carefully manipulating independent variables to determine how these changes affect dependent variables

- Laboratory experiment - Field experiment and package design

Independent variables might include number of advertisements Dependent variables might include purchase intent or behavior

Consumer Research Methods

Consumption Research
Builds on the three primary research methods to examine how

people use products and services rather than how they buy them
May use ethnographic tools to under-stand how values and

culture influence usage of products and other behaviors

May identify new uses for existing products or new product to

satisfy unmet or changing consumer needs

The Underlying Principles of Consumer Behavior:

CONTRIBUTING AREAS OF CONSUMER BEHAVIOUR

CONTRIBUTING AREAS OF CONSUMER BEHAVIOUR

ECONOMICS

PSYCHOLOGY

SOCIOLOGY

SOCIO PSCHOLOGY

ANTHROPOLOGY

ECONOMICS
DEMAND

SUPPLY INCOME PURCHASING POWER

PSYCHOLOGY
NEEDS AND MOTIVATION
PERSONALITY PERCEPTION LEARNING ATTITUDES

SOCIOLOGY
SOCIETY SOCIAL CLASS

POWER
ESTEEM STATUS

SOCIO PSYCHOLOGY

GROUP BEHAVIOUR
GROUP INFLUENCES CONFIRMITY TO GROUP NORMS

ANTHROPOLOGY
VALUES

BELIEF
JOINT FAMILY SYSTEM

WHY MARKET SEGMENTATION

Identifying additional benefits desired by the consumer Willingness of consumers to pay for the additional benefits Firm to determine a suitable pricing strategy

Firm to develop an appropriate distribution strategy

Plan marketing activities around the consumers

Criteria for selecting Market Segment

Identification Measurability Accessibility Substantiality Stability

Bases For Segmentation

Geographic Segmentation Demographic Segmentation Psychological Segmentation Socio Cultural Segmentation Benefit Segmentation

Factors Influencing Consumer Behaviour

Cultural Factors Social Factors

Personal Factors
Psychological Factors.