UNIT 2 CONSUMER BEHAVIOR Consumer Decision Making Consumer

UNIT 2 CONSUMER BEHAVIOR

Consumer Decision Making �Consumer – A Decision Maker Market Knowledge II. Social & Cultural factors III. Passive Decision Makers IV. Cognitive or Thinking Decision makers V. Role of Moods & Emotions Difference Between Product Involvement & Purchase Involvement ? ? I.

Consumer Decision-Making Process Problem Recognition Information Search Alternative Evaluation & Selection Purchase Post-Purchase Behaviour

Types Of Consumer Decisions q Habitual Decision Making Low Purchase Involvement b. Brand Loyal & Repeat Purchase q Limited Decision making a. Evaluates Limited Alternatives b. More on Internal info search , Less on External factors( product attributes, Discounts) q Extended Decision Making a. Evaluate Large no. of Alternatives b. High Purchase Involvement c. Quite Complex a.

Problem Recognition Process Individual Variables & Environmental Variables Desired State Actual State Consumer Problem Recognition Consumer Action No Consumer Action

Identifying Consumer Problems �Activity Analysis �Product Analysis (LG Microwave Oven) �Problem Analysis

Information Search Determinants of Information Search Ø Market Characteristics Ø Product Characteristics Ø Consumer Characteristics Ø Situation Characteristics

Evaluation of Alternatives �Inert Set �Inept Set �Consideration Set

Strategies Adopted By Marketer(Pg. No. 244 avd) q INSIDE CONSIDERATION SET I. III. Habitual Decision Making(Maintenance. Strategy) Limited Decision Making(Capture Strategy) Extended Decision Making(Preference Strategy) OUTSIDE CONSIDERATION SET I. Disrupt Strategy II. Intercept Strategy III. Acceptance Strategy q

Alternate Evaluation & Selection �Affective Choice (Stereo, Saree) Evaluative Criteria- Emotional association Based �Attribute Based Choice (Stereo/Mobile) �Attitude Based Choice (General Attitude, Impressions)

PURCHASE & POST-PURCHASE

WHAT IS MOTIVATION ? “Stimulation of any emotion or desire operating upon one’s will & prompting or driving it to an action”

Process of Motivation Learning Unfulfilled Needs Tension Drive Cognitive Processes Behaviour Fulfillment of goals or needs Reduction in Tension

Types of Motives �Biogenic Motives( air, food, water, etc) �Psychological Motives(Self-esteem, power, affiliation) �Utilitarian Motives(Utility product) �Hedonic Motives (Chandelier) �Conscious Motives(GOLF) �Unconscious Motives

Theory of Motivation : Maslow’s Hierarchy of Needs

Marketing Applications �Segmentation & Promotion �TRIO OF NEEDS – q Power q Affiliation q Achievement (Schiff pg no 104)

Marketing Strategies Based on Motivational Conflict �Approach-Approach Motivational Conflict �Approach-Avoidance Conflict �Avoidance-Avoidance Conflict MARKETING STRATEGIES ONI. MOTIVE COMBINATION II. SELF IMAGE

Perception “Process by which the individual selects, organizes & interprets stimuli into meaningful & coherent picture of world”

Elements of Perception q Sensation (Merc, Bakery, Raymond) q Absolute Threshold (Jingle) q Differential Threshold or Just Noticeable Difference (JND) (Car/bike price hike) q Subliminal Perception

Process of Perception & Information Processing Exposure Attention Interpretatio n Memory Purchase & Consumptio n Decision Stages of Perception

q Exposure § Selective Exposure, Selective Attention, Perceptual Defence, Perceptual Blocking Measures by Marketeer – Colour Combinations, Frequency, Timing, Placement q Attention(Fevicol) Depends on- Interest & need, Ability, Involvement) q Stimulus (Size n Intensity, color , position, Isolation, Design, Contrast, Info Overlaoding)

q Interpretation (annual clearance sell) § Semiotics § Icon- Nescaffe § Index- Dettol, Cadbury q Consumer Imagery - Alignment between self image & product image (Car) q ABSOLUTE THRESHOLD q Differential Threshold or Just Noticeable Difference

COMPONENTS of Perception �Perceptual Selection �Perceptual Organization �Perceptual Interpretation (Schiff pg no 165)