Consumer Behaviour

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Consumer Behaviour

• Prof Sameer Kulkarni

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Consumer Mind A Black Box
Stimulus
Buy
Company Controlled
Product Price Advertising Promotion Display Distri
bution
Consumer Mind (Black Box)
Response
Social
No Buy
Word of Mouth Reference Group
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Customer Decision Making Process
Drivers of Change
Borderless Competition
Media
Technology Development/ New Generations
CUSTOMER
Awareness

• Personality
• Assertive
• Exhibitionist
• Self Concept
• Life-Style
• Aspirations

• Values
• Differ Pleasure vs.
• Instant Pleasure

• Social Structure
• Individualism vs.
• Collectivism

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How they Buy ?

• High involvement products
• High price
• Complex features
• Significant differences between alternatives
• High perceived risk
• Reflect self concept of buyer
• E.g. Selection of a Car

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How they Buy ?

• Low involvement products
• Alternatives within the same product class are
  similar
• Does not reflect buyers self concept
• Frequent brand switching behaviour
• E.g. buying a bathing bar (Toilet Soap)

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Purchase decision in low involvement products
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Theory of evoked set (Howard sheths theory)
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Its not product but the Situation

• Routinized response
• Limited problem solving
• Extensive problem solving

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Types of Buying Behavior
High Involvement Low Involvement
Significant Differences Between Brands Complex Buying Behaviour Variety Seeking Buying Behaviour
Few Differences Between Brands Dissonance Reducing Buying Behaviour Habitual Buying Behaviour
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Motivational reasons

• Sheths consumer motives
• Five dimensions of motivation concerning
  products/services benefits
• Functional utility or function performed
• Aesthetic/emotional appearance or
  attractiveness
• Social status or esteem value
• Situational unexpected benefit
• Curiosity interest aroused

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Purchase decision in high involvement products
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Routinized response(straight re buy)

• Customer is aware of his /her choice
• Decision is based on personal experience
• Spends little /no time in choosing an alternative
• Perceives low risks

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Limited problem solving(modified re buy)

• Launch of a new product which leads in a change
  in the customers decision criteria.
• Buying leads to trial purchase
• Brand extension helps in removing obstacles
• Perceives moderate risk

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Extensive problem solving(new task)

• Requires extensive learning
• Awareness about alternatives is zero
• Has no decision criteria
• Unable to evaluate different brands
• Relocating to a new unknown environment

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Rational behind behaviour
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Psychological Factors

• Motivation
• Learning
• Perception

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Motivation(Sigmund Freud)
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Influence on Buyer Behaviour
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Values motivates in buying

• Functional value
• Conditional value
• Social value
• Emotional value
• Knowledge value
• (according to Sheth , Newman Gross)

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Learning Theory

• Human behaviour is learnt
• One learns _at_ the pain of punishment
• Or _at_ the lure of rewards
• Directing human behaviour is done by developing
  stimuli and cues which bring to fore the latent
  need
• Attractive advertisement , shelf display,
  packaging, how to use instructions ,store layout
  ,availability
• sales persons are examples of cues developed
  by a marketer.

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Basis of Differences

• Gender differences
• huntermen,
• nursewomen
• Intelligence differences
• caste,
• class,
• education, etc.
• Personality differences
• job specializations

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• Plato stated more than 2000 years ago
• No two persons are born exactly alike but
  each differs from the other in natural
  endowments, one being suited for one occupation
  and the other for another.

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Cognitive dissonance theory

• Leon Festinger-1957 ,wrote the theory of
  cognitive dissonance
• Psychological discomfort caused by inconsistency
  among a persons beliefs , attitudes / actions
  e.g. smoking
• Varies in intensity based on importance of issue
  degree of inconsistency

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Lifestyles(Indian Perspective)
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Buyer lifestyle

• Survivors Price conscious , not very
  knowledgeable , depressed.
• Sustainers Strugglers , swayed by brand
  guarantee , impulse buyers.
• Belongers Conventional conservative , nostalgic
  , unexperimental.
• Emulators Ambitious , upwardly mobile , status
  conscious , buy to impress others.
• Achievers Leaders , work in hi tech top line
  products.
• I-am-me Young , Self engrossed , impulsive.
• Experimental Pursue a rich inner life , High
  sense of social resp.
• Integrate Fully matured psychologically ,
  combination of best elements

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