1. Consumer Behaviour By
Prof. Shrikant DIwan

2. What Is Consumer Behavior ?
The behaviour that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs (Wants / Demands)

3. Types Of Consumer ?
Personal Consumer
Organisational Consumer

4. Why Study Consumer Behaviour ?
Understanding consumer behaviour will help you become better marketers as it is the foundation for -
Segmenting markets
Targetting the right segment
Positioning products

5. Developing an appropriate marketing Strategy
Product or service decisions
Pricing decisions
Distribution decisions
Promotion decisions
Success in the marketplace requires: knowing, then attracting, satisfying, and retaining customers.

6. Knowledge of consumer behaviour is essential for non-profit organizations
Non profits have different customers to please
Donors, users, volunteers, general public, government

7. Public service initiatives have to be based on an understanding of consumer behaviour
Canada’s largest advertiser is the federal government
Most government initiatives (e.g., antismoking campaigns) need a knowledge of consumer behaviour to succeed
Better understanding of our own consumption behaviour

8. 4 Basic Questions to understand Buyer Behaviour
What Products or Services do the consumers buy ?
Why do they buy it ?
What is Buyer Behavior process adopted by them ?
Who buys various Products & Services ?

9. Development of Marketing Concept
Production
Concept
Product
Concept
Selling
Concept
Marketing
Concept

10. The Production Concept
Assumes that consumers are interested primarily in product availability at low prices
Marketing objectives:
Cheap, efficient production
Intensive distribution
Market expansion

11. Product Concept
Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features
Marketing objectives:
Quality improvement
Addition of features
Tendency toward Marketing Myopia

12. Selling Concept
Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so
Marketing objectives:
Sell, sell, sell
Lack of concern for customer needs and satisfaction

13. Marketing Concept
Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition
Marketing objectives:
Profits through customer satisfaction

14. Implementing the Marketing Concept
Consumer Research
Segmentation
Targeting
Positioning

15. STP
Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics
Targeting: selecting one or more of the segments to pursue
Positioning: developing a distinct image for the product in the mind of the consumer

16. Successful Positioning
Communicating the benefits of the product, rather than its features
Communicating a Unique Selling Proposition for the product

17. Marketing Mix
Product
Price
Place
Promotion

18. Social Marketing Concept
All companies prosper when society prospers.
Companies, as well as individuals, would be better off if social responsibility was an integral component of every marketing decision.
Requires all marketers adhere to principles of social responsibility

19. High- and Low-Involvement Decisions
The level of importance or interest generated by a product or a decision
Consumer Information Processing:
The cognitive processes by which consumers interpret and integrate information from the environment

20. High-involvement Decisions:
Characterized by high levels of importance thorough information processing, and substantial differences between alternatives.
Low-involvement Decisions:
Occur when relatively little personal interest, relevance, or importance is associated with a purchase.

21. Levels Of Involvement High Involvement Low Involvement
Info Search, Considers Alternatives
Complex Decision Making
(Automobiles, Computers)
Limited decision Making
(Cereals)
Little or no Info, Considers only one brand
Brand Loyalty
(Personal Care Products, Cigarettes)
Inertia
(Canned Foods, Paper Napkin)

22. The Consumer
Info Processing
Decision Making
Stimuli
Response
Cognitive Thinking Process
Consumer Personal Charectristic
Culture
Social Class
Influence
Situational Varialbles Influences
Perception
Demographic
Values Belief
Social Class Structure
Reference Groups
Purchase Occasion
Attitude
Lifestyles
Cross cultural influences
Society
Family
Market comm
Needs & Motives
Personality Traits
Sub cultural influences
Opinion Leaders
Product Positioning
Innovations
Stores Patronage, Shppping Behaviour
Price
Sales Personnel Influnce

23. The Nature of Consumer Behavior and Decision Making
Factors important to understanding consumer markets and consumer behavior:
The size of the consumer market.
Changes in consumer shopping habits and purchase decisions.
Emphasis on consumer-oriented marketing.
The design of effective marketing strategy