Marketing-management (1).pptx

MARKETING MANAGEMENT C O N S U M E R M A R K E T A N D B U Y E R B E H AV I O U R

CONSUMER MARKET AND BUYER BEHAVIOR TOPIC OUTLINE a. Model of Consumer Behavior b. Characteristic Affecting Consumer Behavior c. Types of Buying Decision Process d. The Buyer Decision Process e. The Buyer Decision Process for New Products

MODEL OF CONSUMER BEHAVIOR

CONSUMER BUYING BEHAVIOR refers to the buying of final consumers, individuals and households who buy goods and services for personal consumption. CONSUMER MARKET is all the individuals and households that buy or acquire goods and services for personal consumption.

Product Price Place Promotion Stimuli Economic Technological Political Cultural

Buyer Characteristic Buying Decision Process

Buyer’s Response

Marketing

Buyer’s Black Box

The Environment

MODEL OF CONSUMER BEHAVIOR

Product choice Brand choice Dealer choice Purchase timing Purchase amount

Occupation

Roles and Status

Economic Situation Lifestyle Personality and self – concept

Motivation Perception Learning Beliefs and attitudes

BUYER

Family

PSYCHOLOGICAL

Social class

Age and Life cycle stage

PERSONAL

Subculture

Reference Groups

SOCIAL

Culture

CULTURAL

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR KEY FACTORS

• CULTURE – Forms a person’s wants and behaviour.

CULTURAL SOCIAL PERSONAL PSYCHOLOGICAL

• SUBCULTURE – Group with shared value system.

• SOCIAL CLASS – Society’s division who shares values, interest and behaviours.

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR KEY FACTORS

• Groups – Membership

CULTURAL SOCIAL PERSONAL PSYCHOLOGICAL

– Reference • Aspirational

– Opinion Leaders • Buzz marketing

• Family

– Many influencers

• Roles and Status

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR KEY FACTORS

• Buyer’s age and life –cycle stage • Occupation

CULTURAL

• Economic situation

SOCIAL

• Lifestyle

PERSONAL

– Activities

PSYCHOLOGICAL

– Interest – Opinions

• Personality and Self -Concept

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR KEY FACTORS

MOTIVATION

CULTURAL SOCIAL PERSONAL

BELIEFS AND ATTITUDES

Psychological Factor Affecting Buyers choices

PSYCHOLOGICAL

LEARNING

PERCEPTION

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR • A motive is a need that is sufficiently pressing to direct the person to seek satisfaction. MASLOW’S THEORY OF MOTIVATION Self –Actualization needs Esteem need Social needs Safety needs Psychological needs

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR PERCEPTION is the process by which people select, organize and interpret information. Three perceptual processes: • Selective attention – Consumer screen out information.

• Selective distortion – People interpret to support beliefs.

• Selective retention – People retain points to support attitudes.

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR LEARNING describes changes in an individual’s behaviour arising from experience. Learning occurs through: • Drives – Internal stimulus that calls for action.

• Stimuli – Objects that move drive to motive.

• Cues – Minor stimuli that affect response.

• Reinforcement – Feedback on action.

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR BELIEF • A descriptive thought about a brand or service. • Maybe based on real knowledge, opinion or faith. ATTITUDE • Describes a person’s evaluations, feelings and tendencies toward an object or idea.

• They are difficult to change.

TYPES OF BUYING DECISION PROCESS FIVE STAGES OF BUYERS DECISION PROCESS

Need Recognition

Information Search

Evaluation of alternatives

Purchase Decision

Post – purchase behavior

TYPES OF BUYING DECISION PROCESS

EVALUATION OF ALTERNATIVES PURCHASE DECISION

POST –PURCHASE BEHAVIOR

Buyer recognizes as a problem or a need arising from:

EXTERNAL STIMULI

INFORMATION SEARCH

Normal needs become strong enough to drive behaviour.

NEED RECOGNITION

NEED RECOGNITION

INTERNAL STIMULI

PROCESS STAGES

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TYPES OF BUYING DECISION PROCESS PROCESS STAGES

• Consumers exhibit heightened attention or actively search for information.

NEED RECOGNITION

• Sources of Information:

INFORMATION SEARCH

– Personal

EVALUATION OF ALTERNATIVES

– Commercial

PURCHASE DECISION

– Experiential

POST –PURCHASE BEHAVIOR

– Public

• Word –of –mouth

TYPES OF BUYING DECISION PROCESS PROCESS STAGES

INFORMATION SEARCH

• Evaluation procedure depends on the consumer and the buying situation.

EVALUATION OF ALTERNATIVES

• Uses information to evaluate alternative brand choices.

NEED RECOGNITION

PURCHASE DECISION

POST –PURCHASE BEHAVIOR

TYPES OF BUYING DECISION PROCESS PROCESS STAGES

• The consumer actually buys the product.

NEED RECOGNITION

• The consumer’s purchase decision will be to buy the most preferred brand.

INFORMATION SEARCH EVALUATION OF ALTERNATIVES

TWO FACTOR intercede between purchase intentions and the actual decision.

PURCHASE DECISION

• Other people’s attitude

POST –PURCHASE BEHAVIOR

• Unexpected situational factors

TYPES OF BUYING DECISION PROCESS PROCESS STAGES NEED RECOGNITION

• Consumer take further action after purchase based on their satisfaction or dissatisfaction.

INFORMATION SEARCH EVALUATION OF ALTERNATIVES PURCHASE DECISION

POST –PURCHASE BEHAVIOR

• Cognitive dissonance is very common.

THE BUYER DECISION PROCESS FOR NEW PRODUCT NEW PRODUCT goods, service or idea that is perceived by customers as new. ADOPTION PROCESS decision by an individual to become a regular user of the product.

THE BUYER DECISION PROCESS FOR NEW PRODUCT

THE BUYER DECISION PROCESS FOR NEW PRODUCT • People differ in their innovativeness or readiness to try new products. FIVE CATEGORIES OF ADOPTION

THE BUYER DECISION PROCESS FOR NEW PRODUCT