1. Consumer Behavior
Session 3

2. Introduction

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

5. 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.

6. 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

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

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

9. 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

10. 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

11. 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

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

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

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

15. Maslow’s Hierarchy of Needs

16. 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.

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

18. 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

19. 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

20. Search Dynamics

21. 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

22. 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

23. 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

24. 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)

25. QUESTIONS??