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CONSUMER BEHAVIOUR:
INTRODUCTION: Behavior that a consumer display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Two different kinds: Personal Consumer Organizational Consumer
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DEFINITION:
THE DICTIONARY OF MARKETING AND ADVERTISING: Consumer behavior is observable activities chosen to maximise satisfaction through the attainment of economic goods and services such as choice of retail outlet, preference for particular brands and so on. LOUDON AND DELLA BITA: Consumer behavior is the decision process and physical activity individuals engage in when evaluating, acquiring, using, or disposing goods and services.
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Consumers do not always act or react as the theory would suggest. Consumers preferences are changing and become highly diversified. Consumers dislikes the uses of identical products and prefer differentiated products. To create market segmentation. Rapid introduction of new products with technological advancement. Used to sell products. For marketing management. Assistance to managers. Development of public policies. Knowledge of human behavior.
RESEARCH PERSPECTIVE ON C. B:
The
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PURCHASE
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PSYCHOLOGICAL FACTORS: Motivation Perception Learning Beliefs & Attitudes PERSONAL FACTORS: Age & Life-cycle position Occupation Economic Situation Life Style & personality
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MOTIVATION
Derived from Latin word Movere meaning To Move Driving force within the individuals that impels them for action Motivation can be positive and negative.
FRED LUTHANS: Motivation is a process that starts with a physiological or psychological deficiency or need that activates behaviour or a drive that is aimed at a goal or incentive.
THEORIES OF MOTIVATION
Maslows
Hierarchy Of Needs
David
Mc Clelland Theory
Social needs
Safety needs
Physiological needs
PERCEPTION:
How we see the world around us Process by which an individual receives, interprets & respond to stimuli in his environment. There are two stages of perception: 1. Attention filter: interested in or attracted to. (Advertisement, TV programmes, etc) 2. Interpretation process: organising the stimuli contents in to his/ her models of reality. Output of this is cognitionawareness of the stimuli.
BELIEFS
& ATTITUDES
BELIEF: Descriptive thought that a person holds about something, based on knowledge, opinion or faith. Negative belief or positive belief. Play decisive role in buying decision. ATTITUDES: Persons enduring favourable or un-favourable evaluations, emotional feelings and actions, tendencies toward some object or idea. Can be learned or developed.
& economic situation of a person affects product preference, frequency of buying, quality quantity.
PERSONALITY:
Inner psychological characteristics like: qualities, attributes, traits, factors, & mannerisms that distinguish one person to another. NATURE / PROPERTIES OF PERSONALITY:
Personality reflects individuals difference Personality is consistent & enduring Personality can change
THEORIES OF PERSONALITY
3 major theories of personality between consumer behaviour and personality. They are: 1. Freudian Theory / freuds psychoanalytic theory: human drives are largely unconscious in nature which serves to motivate consumers action. 2. Neo- Freudian Theory: Role of social relationship in formulating and developing personality. 3. Trait Theory: every human have psychological traits at different degree which can be motivated.
SELF CONCEPT:
Totality
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Social self: how others perceive him or her Ideal social self: person would like others to perceive him or her Expected self: an image in between actual and ideal self Situational self: self- image in specific situation Extended self: impact of personal possessions on self- image Possible self: like to become, could become, or is afraid to becoming.
CHARACTERISTICS OF LIFESTYLE:
Group phenomenon Pervades various aspects of life Implies a central life interest Vary according to sociologically relevant variables AIO Inventories: (activities, interests, & opinions) Provides great insight into an individuals likes & dislikes as a consumer. Used as a research tool to determine influences on consumer behaviour & appropriate consumer market.
BUYING BEHAVIOUR
CONSUMER INVOLVEMENT Consumer involvement is the perceived personal importance and/or interest consumers attach to the acquisition, consumption & disposition of a goods, services or an idea. Factors Influencing The Consumer Involvement: 1. Type of product 2. Characteristics of communication with consumer 3. Characteristics of situation under which the consumer is operating 4. Consumers personality
ADOPTION PROCESS
The acceptance & continued use of a product or brand by an individual is referred to as Adoption. According to Philip Kotler adoption process is the mental process through which an individual passes from first hearing about an innovation to final adoption. Rogers defines the innovation process as the spread of a new idea from its source of invention or creation to its ultimate users or adopters.
Trial Adoption
ADOPTER CATEGORIES
Adopter categories Innovators Early adopters Description Very eager products to try new Relative % 2.5 13.5
Early majority
Late Majority
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34
Laggards
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100
/ DIFFUSION
The diffusion process: Macro process that focuses on the spread of an innovation (a new product, service, or idea) from the source to the consuming public. Group phenomenon The adoption process: Micro process that examines the stages thrpigh which an individual consumer passes when making a decision to accept or reject a new product Individual phenomenon.
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