UNIT 2 Consumer behavior

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

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

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

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 Market Characteristics Product Characteristics Consumer Characteristics Situation Characteristics

Evaluation of Alternatives Inert Set Inept Set Consideration Set

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

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”

Fulfillment of goals or needs Process of Motivation Learning Cognitive Processes Unfulfilled Needs Tension Drive 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(Schiff pg no 104) Segmentation & Promotion TRIO OF NEEDS – Power Affiliation Achievement

Marketing Strategies Based on Motivational Conflict Approach-Approach Motivational Conflict Approach-Avoidance Conflict Avoidance-Avoidance Conflict MARKETING STRATEGIES ON- MOTIVE COMBINATION SELF IMAGE

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

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

Process of Perception & Information Processing Exposure Stages of Perception Attention Interpretation Memory Purchase & Consumption Decision

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

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

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