Consumer Behaviour

Based on concepts from n Psychology n Sociology n Anthropology n Marketing n Economics

Target Customer n No store can be all things for all people n Population is sub divided into smaller groups having similar characteristics n Market Segmentation-Smaller segments exhibiting homogeneous responses to various products and services

Why do we need to study Consumer Behaviour? Because no longer can we take the customer/consumer for granted.

The Customer n Answers to the following 5 questions determines the fashion each season - WHO IS THE CUSTOMER - WHERE DOES HE LIVE - WHAT DOES HE DO - WHEN DOES HE WEAR CLOTHES - WHY DOES HE BUY GARMENTS } designers & retailers re evaluate customer’s profile to create and select merchandise that will sell.

Failure rates of new products introduced n Out of new products introduced by 77 companies, only 56% are present 5 years later. n Only 8% of new product concepts offered by 112 leading companies reached the market. Out of that 83% failed to meet marketing objectives.

All managers must become astute analysts of consumer motivation and behaviour

Factors affecting Buying Behaviour n Psychological n Sociological n Buying roles of family members n Population characteristics n Personal characteristics

Can Marketing be standardised? No. Because cross - cultural styles, habits, tastes, prevents such standardisation.

Unless Managements act The more successful a firm has been in the past, the more likely is it to fail in the future.

Why? Because people tend to repeat behaviour for which they have been rewarded.

Language Problems n “Please leave your values at the desk” - Paris hotel n “Drop your trousers here for best results” - Bangkok laundry n “The manager has personally passed all water served here” - Acapulco restaurant n “Because of the impropriety of entertaining guests of the opposite sex in the bedroom, it is suggested that the lobby be used for the purpose.” - Zurich hotel n Ladies are requested not to have children in the bar.”- Norway bar

“Come alive with Pepsi” n “Come alive out of the grave” - Germany n “Pepsi brings your ancestors back from the grave” - China

Buyer Behaviour Consumer 4Ps Marketing Environment Buyer Characteristics Buyer Decision Process Buyer Decision

Marketing Stimuli 4 Ps ProductPricePlacePromotion

Other Stimuli Marketing Environment EconomicTechnologicalPoliticalCultural

Buyer characteristics n Cultural n Social n Personal n Psychological

Buyer’s Decision Process n Problem Recognition n Information Search n Evaluation of Alternatives n Purchase Decision n Consumption n Postpurchase behaviour

Buyer’s Decision n Product Choice n Brand Choice n Dealer Choice n Purchase Timing n Purchase Amount

Cultural factors n Culture n Sub - culture n Social Class

Social factors n Reference Groups n Family n Roles and Status

Personal Factors n Family Life Cycle n Occupation and Economic circumstances n Lifestyle n Personality and self - concept

Psychological Factors n Motivation n Perception n Learning n Beliefs and Attitudes

Buying Roles n Initiator n Influencer n Decider n Buyer n User

Buying Behaviour n Complex n Dissonance - Reducing n Habitual n Variety seeking

Buying Process n Problem Recognition n Information Search n Evaluation Alternatives n Purchase Decision

Post - Purchase Behaviour n Satisfaction n Actions n Use and Disposal