Consumer Behavior Session 3

Introduction

In the US, the Marlboro cowboy is usually shown alone In Japan, the Marlboro cowboy is usually shown as part of a group… Why?

Target Holland Offensive in US/ UK. Youth as Target Market. Whiter Play station is powerful, sexier, strong. Challenging cultural norms but not so much in Holland.

Culture has an influence on consumer behavior Solution Culture has an influence on consumer behavior US culture = importance of individual; not true in Asia Japanese consumers think a single cowboy looks “lonely” and “poor” Just an ordinary worker on a farm

Why Study Consumer Behavior Targeting/ Segmenting customers. Targeted Advertisements. Marketing Strategies

Understanding Customers Who is Important? What are their Choice Criteria? When Do they Buy? Where do they buy? How do they Buy?

Consumer Behavior Model Marketing Stimulus Product Place Price Promotion Other Stimulus Economical Technological Political Buyer Characteristics Cultural Social Personal Psychological Decision Process Problem Recognition Information Search Evaluation Decision Post Purchase Behavior Buyers Decisions Brand

Cultural Factors Cultural: Subculture: Social Class Values, Attitude, Religion, Language Subculture: Group of People with common values, attitude based on common experience. Teenagers, Racial group, Geographic groups Social Class Upper, Middle, Lower Have common tastes, media preferences, lifestyle

Social Factors Social Factors Groups Membership Reference Groups (Aspirational) Opinion Leaders (Husband, wife, Children) Family (Social Status) Roles & Status Membership Influences Teenagers in the way they dress up, Opinion leaders: you go to IT experts before buying a computer Wife are more into decision making while purchasing expensive Items, electronics, cars etc. Children can influence a lot more Roles and Status: A CEO of an organization has different status to a Manager, thus their purchasing behavior would be different eg. Annapurna Coffee shop for Lunch

These Groups of People are highly influenced by their groups while purchasing Fashion Items.

Personality and Self Concept Personal Factors Personal Age and Stage in Life Occupation & Economy Life Style Personality and Self Concept Brand Personality

Psychological factors Motivation Freud’s Theory Hertzberg Maslow’s Hierarchy Perception Selective attention Selective distortion Selective retention Learning

Maslow’s Hierarchy of Needs

Perception Perception is the process by which people select, organize, and interpret information. Perception Includes: Selective attention Consumers screen out information, Rs. 5 Discount Vs. Price Rs 295 for a product worth 300 Wai Wai at at 3PM Selective distortion People interpret to support beliefs Helps fight distorted information, case insect in coke Selective retention People retain points to support attitudes Positive attributes of strong brands are retained.

Perception How many ads were you exposed to today? Which ones do you remember? Why?

Buying Decision Process Needs can be triggered by: Internal stimuli Normal needs become strong enough to drive behavior External stimuli Advertisements Friends of friends Need Recognition

Buyer Decision Process Consumers exhibit heightened attention or actively search for information. Sources of information: Personal Commercial Public Experiential Word-of-mouth Search Dynamics Information Search

Search Dynamics

Buyer Decision Process Evaluation procedure depends on the consumer and the buying situation. Most buyers evaluate multiple attributes, each of which is weighted differently. Depends on Beliefs and Attitudes At the end of the evaluation stage, purchase intentions are formed. Evaluation of Alternatives Hotel: Location, Hygiene, Price

Belief Attitude Beliefs and Attitudes a descriptive thought about a brand or service may be 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

Buyer Decision Process Purchase Decision Governed by attitude of others. How strong is your motivation to encounter negative attitudes. Situational factors and risks Post Purchase Behavior Satisfaction, Delight Cognitive Dissonance Post purchase action

Consumer Buying Behavior High Involvement Low Involvement Significant Differences between Brands Complex buying behavior (Cars, Home Appliance) Variety-seeking buying behavior (Toothpastes, Candy) Few Differences between Brands Dissonance-reducing buying behavior (Diamond) Habitual buying behavior (Sugar, Rice, Salt)

QUESTIONS??