1. Consumer Market and Consumer Buyer Behavior Chapter: 5

2. Consumers Consumer Buyer Behavior The buying behavior of final consumers- individuals and households that buy goods and services for personal consumption Consumer Market All individuals and households who buy or acquire goods and services for personal consumption - variation in consumers age, gender, education, income - variety of goods available - how the consumers relate e.g. McDonalds, Zara etc.

3. Model of Consumer Behavior What consumers buy, why he buys, how much he buys Why questions are difficult to answer, at times the consumer doesn’t know why he is buying something How do consumers respond to different marketing efforts

4. Model of Consumer Behavior The environment Marketing Stimuli Product Price Place Promotion Other Economic Technological Social Cultural Buyer’s black box Buyer’s characteristics Buyer’s decision process Buyer Response Buying attitudes and preferences Purchase behavior: what the buyer buys, when, where and how much Brand and company relationship behavior

5. Characteristics Affecting Consumer Behavior Cultural -Culture -Subculture -Social class Social -Reference groups -Family -Roles and status Personal -Age and life cycle stage -Occupation -Economic Situation -Lifestyle -Personality and self- concept Psychological -Motivation -Perception -Learning -Beliefs and attitudes Buyer

6. Cultural factors Culture The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions - basic cause of wants and behavior - respect for elders - health conscious - E.g. Fair and Handsome Emami

7. Cultural factors Subculture A group of people with shared value systems based on common life experiences and situations - nationalities, religion, geographic regions - festivals and religious rituals - Punjab: wedding, colors, basant, sufi festivals, bhangra, food

8. Cultural factors Social Class Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors. - income, occupation, education, wealth - taste variation in choice of clothes, furniture etc. - e.g. class which uses tissue papers, fragrances

9. Social Factors Group Two or more people who interact to accomplish individual or mutual goals - influence on people -Group of friends -Celebrities Opinion Leader Person within a reference group who, because of special skills, knowledge, personality or other characteristics, exerts social influence on others -Brand Ambassadors e.g. Mobilink- Shan Nadia Khan- Cerelac

10. Social Factors Online social networks - Youtube, facebook, orkut, myspace - connection through words, pictures, videos - animal interested groups etc.

11. Social Factors Family - strongly influence - e.g Brook Bond (family story and photo) - roles are changing (women have say in deciding which car to buy, and men are buying grocery items) - e.g. working parents give gifts to children to compensate their absence, ads on cartoon network etc.

12. Social Factors Roles and Status - belongs to groups- family, clubs and organizations - A working mother plays so many roles