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Consumer Behaviour By Prof. Shrikant DIwan
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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)
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Types Of Consumer ? Personal Consumer Organisational Consumer
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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
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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.
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Knowledge of consumer behaviour is essential for non-profit organizations
Non profits have different customers to please Donors, users, volunteers, general public, government
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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
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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 ?
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Development of Marketing Concept
Production Concept Product Concept Selling Concept Marketing Concept
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The Production Concept
Assumes that consumers are interested primarily in product availability at low prices Marketing objectives: Cheap, efficient production Intensive distribution Market expansion
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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
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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
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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
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Implementing the Marketing Concept
Consumer Research Segmentation Targeting Positioning
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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
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Successful Positioning
Communicating the benefits of the product, rather than its features Communicating a Unique Selling Proposition for the product
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Marketing Mix Product Price Place Promotion
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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
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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
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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.
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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)
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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
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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
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