Consumer Behavior: American Marketing Association

Consumer Behavior • According to the

American Marketing Association ,

Consumer Behavior is defined as "the dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives." • More generally, Consumer Behavior is the psychology behind Marketing and the behavior of consumers in the Maketing environment.

Factors affecting consumer behavior • • • • • •

Culture Subculture Social class Reference group Family Roles and status

Personal factors • • • •

Age and stage in the life cycle Occupation and economic circumstances Life styles Personality and self concept

Psychological factors • • • •

Motivation Perception Learning Beliefs and attitude

Buying Roles • • • • •

Initiator Influencer Decider Buyer User

Buying Behavior • Complex buying behavior • Dissonance-Reducing Buyer Behavior • Habitual buying behavior

Buying Decision process Problem recognition Information search

Evaluation of alternatives Purchase decisions

Post purchase behavior • Post purchase behavior • Post purchase action Exit option Voice option Post purchase use and disposal

Organizational buying It is the decision making process by which formal organizational establish the need for purchased products and services and identify, evaluate and choose among alternative brands and suppliers

Difference between consumer and business markets • Fewer buyers • Large buyers • Close supplier/ buyer relationships • Geographically concentrated • Derived demand

• Inelastic demand • Fluctuation demands • Professional purchasing

Buying situations • Straight rebuy • Modified rebuy • New task

System buying and selling • System buying • System selling • System contracting

Buying Roles • • • • • • •

Initiator Influencer Decider Buyer User Approver Gatekeeper

Stages in the process • • • • • • • •

Problem recognition General need specification Product specification Supplier search Proposal solicitation Supplier selection Order routine selection Performance review

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Process and outcome based organization Cross disciplinary team with process leader Marketing Department Marketing Personnel

Organizing the market department • • • •

Functional Department Geographical Product/brand management department Marketing and customer relationship

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Functional Department • It enjoys administrative simplicity • Inadequate planning for specific products • Each functional group competes with other for budget

Geographical organization When markets in the different regions require different treatment. Retailers prefer local promotions for customers •

Product and brand management • The product / brand management does not replace functional but serves as another layer in the functional organization • When product are different or when large number of products

Market-management / customer management organisation