Professional Documents
Culture Documents
Consumer Behaviour
Consumer Behaviour
Behaviour
Demand,Supply,Income,Purc
hasing Power
Psychology
Needs &
Motivation,Personality,Perceptio
n ,Learning,Attitudes
Sociology
Society ,Social
class,Power,Esteem,Status
Socio Psychology
Group Behaviour,confirmity to
group norms,Group
influences,role of a leader
Cultural Anthropology
Values,Beliefs,Caste System,Joint
family system
Characteristics of Indian
consumers
Geography
Population
Urban rural composition
Sex composition
Age factor
Literacy level
Income level
Linguistic Diversity
Religion
Dress,food habits & festival
Psychological
factors
1.Culture
2.Sub culture
3.Social class
1.Reference
group
2.Family
3.Role & Status
1.Motivation
2.Perception
3.Learning
4.Beliefs &
Attitude
Models of consumer
Behaviour
Economic model
Psychological model
Learning model S-R Model
Sociological model
Howard sheth model
Nicosia Model
Webster & Wind model
Engel kollat blackwell model
Economic model
Under economics it is assumed that man is a rational human
being,who will evaluate all the alternatives in terms of cost
& value received and select that product /service which
gives him/her max satisfaction. Consumers are assumed to
follow the law of diminishing marginal utility.
Economic model is based on certain predictions of buying
behaviour 1.price effect lesser the price of the product
,more will be the quantity purchased
2.Lesser the price of the substitute product,lesser will be the
quantity of the orginal product bought(Substitution effect).
3.Income effect-more the purchasing power ,more will be the
quantity purchased
Learning Model
Pavlovian Learning Model
According to this model,behaviour is learned by repetitive
associations between a stimulus and response (S-R Association).
The model is based on a experiment performed on a dog by a russian
physiologist.This experiment is based on how a dog responds
(measured on the basis of saliva secreted by the dog)to various
conditional stimulus and unconditioinal stimulus(ringing of a bellpresenting a piece of meat).Knowing the learning process is very
important for a marketing manager.
Learning can be defined as all changes in behaviour which occurs as
a result of practise and based on previous experience.
Sociological Model
Acc to this model individual buyer is a part of the
institution called Society.Since he is living in a
society,he gets influenced by it and in turn also
influences it in its path of development.He is
playing many roles as a part of various formal &
informal associations or organisations i.e as a
family,as a employee of a firm,as a member of
professional forum .such interactions leave some
impressions on him and may play a role in
influencing his buying behaviour.
Nicosia Model
This model was developed in 1966 by Nicosia an expert in consumer
motivation and behaviour.The nicosia model tries to explain buyer
behaviour by establishing a link between the organisation and its
consumer.
The nicosia model groups the above activity explanations into four
basic areas.
1.Field one has two subareas-the consumer attributes and the firm
attributes the advertising msg sent from the company will reach the
consumers attributes. Depending on the way the msg is is received
by the consumer ,a certain attribute may develop. The newly
developed attributes becomes the input for area two.
2.The second area or area two-is related to the search & evaluation
undertaken by the consumer.
3.Third area explains how the consumers actually buys the product.
4.Area four is related to the uses of the purchased items.
Diffusion of innovations
Diffusion of innovation is the process by which
acceptance of an innovation is spread by
communication (mass media,sales
people,informal conversation)to members of the
target market over a period of time.
The Diffusion Process
Problem Recognition
Information search
Evaluation of Alternatives
Purchase decision
Post purchase Behaviour
Individual Differences in
innovativeness
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Column2
Category of Adoptors
1.Innovators
2.Early adopters
3.Early Majority
4.Late Majority
5.Laggards
What is a Brand
Brand is a comprehensive term and could be
cigrattes
Modified Rebuy- New car, electrical
Organistional
Interpersonal
Individual
Participant
Level of
demand
Objectives
Authority
Age
Economic
outlook
Policies
Status
Income
Value of money
procedures
Empathy
Educational
qualification
Supply
conditions
Organisational
structure
persuasiveness
Job position
Technology
improvement
Organisational
system followed
Political
Environment
Competition
personality
Attitude towars
risk
Opinion Leadership
Opinion Leadership is a process by which one
person informally influences the actions or
attitudes of others, who may be opinion
seekers .The influence is informal & verbal
through communication between opinion
leader & opinion seeker.
Characteristic opinion
Leaders
Social status characteristics
Greater Exposure to mass media
Greater interest & knowledge
Personality traits
Attitudes & intentions
Loyal to group standards
Innovators
Demographic Characteristics
Reference Group
Reference group can designate to any person or
influences behaviour
Ex: childs reference group is his family.
Comparative reference group :Ex: individual may admire his
neighbour
Indirect reference groups such as film star
Contactual group: person interacts & has regular contact .Ex: club
Aspirational Groups: at times ppl get influenced by groups to
which they do not belong
Ex:Teenage cricket player wanting to play for India.
Avoidance group: group in which the person holds no membership
nor has face to face contact but he disapproves of the groups
values ,attitudes ,behaviour etc.Ex:ISKON
Family
Two or more persons related by blood ,marriage
or adaption who reside together.
Family role structure
Initiator-who recognises the need
Influencers who persuades others in
purchase
Information Gatherer who gathers information
about the product
Decider-who decides purchase
Buyer-who makes actual purchase
Attitude
Attitude s are an expression of inner feelings
Formation of Attitudes
Direct experience with the object:
Changing attitudes
Ways of changing attitudes
Nature of personality
Personality Is the essence of individual
differences.
Personality is consistent & enduring
Personality can change.
Self concept/Image/Perception
Self is closely related to consumer
Consumer Behaviour
Audit
The Consumer Behavior Audit is divided into the following sections:
MARKET SEGMENTATION
A. External Influences
B. Internal Influences
C. Situational Influences
D. Decision-Process Influences
PRODUCT POSITION
A. Internal Influences
B. Decision-Process Influences
PRICING
A. External Influences
B. Internal Influences
C. Situational Influences
D. Decision-Process Factors
DISTRIBUTION STRATEGY
A. External Influences
B. Internal Influences
C. Situational Influences
D. Decision-Process Factors
PROMOTIONAL STRATEGY
A. External Factors
B. Internal Factors
C. Situational Influences
D. Decision-Process Influences
PRODUCT
A. External Influences
B. Internal Influences
C. Situational Influences
D. Decision-Process Influences
Consumer Research
Process
Major steps in Research process include
Determining the objectives of the Reasearch
Situational Analysis
Collecting & Evaluating Data
Designing a primary research study
Analysing the data
Preparing a report on the findings
Follow up action
Types of Research
Action Research
Descriptive Research
Exploratory studies
Historical Research
Comparative Research
Theory construction Research
Model Building Research
Pure Research
Applied Research
Operations Research
Library Research
Individual & Group Research
Steps in Research
Deliberate Sampling
Simple Random Sampling
Systematic Sampling
Stratified Sampling
5.Quota Sampling
6.cluster Sampling & Area Sampling
7.Multistage sampling
8.Sequential Sampling
Collecting Data
1. By observation
2. Through Personal Interviews
3. By Mailing Questionnaires
4. Through Telephone Interviews
5. Through Schedules
Evaluation of Project
Hypothesis Testing
Generalisation & Interpretation
Preparation of the Report
Research Design
An Architect prepares a blue print before he
approves a construction.
An Army prepares a strategy before an attack
An Artist makes a design before he executes
his ideas
So also a Researcher makes a plan of his
study before he undertakes his Research
Work. This will enable a researcher to save
time & Resources.
Research Design Indicates a plan of action to
be carried out in connection with a proposed
Sampling Process
Step
Description
Essentials of Good
Sampling
The essentials of a good sampling are:
The Sample should be true representative of the universe
There should be no bias in selecting a sample.
All the items should be independent of each other
Quality and time of the sample should be the same
The conditions should be the same for all items
Sampling needs to be adequate
It should be possible to measure or estimate the sampling
error
The result of the sample study in general should be
applicable to all items of the universe . A good sample
should be consistent of homogeneous items.
Methods of Sampling
Probability Sampling
Methods(Random)
Accidental sampling
Quota Sampling
Purposive Sampling
Convenience Sampling
Quota Sampling
Types of Observation
There are mainly 2 types of observation
Controlled Mechanical aid is used.
Uncontrolled-no mechanical aid is used,data
is collected without standardising method.The
investigator thinks that he knows more than
what he actually observes.Thus dependable
may not be collected through this type of
observation.
Types of Interview
Structured interview
Unstructured interview
Focused interview
Stress interview
Clinical interview
Non directive interview
Depth interview
Research Report
A research report is a document which narrates the problem
investigated,the methods used , the methods used ,result of the
investigation and the conclusions inferred from the results.The purposen
of the research report is to communicate to the readers the methodology
& findings of the study in such a manner as to enable them to
understand the research process and to determine the validity of
findings.
Types of Research Report
Short Reports-When the problem is well defined ,ltd in scope and has a
simple & straight forward methodology ,at that time short reports are
appropriate.These reports are about five pages ex: Summary
reports,Abstract.
Long Reports are of two types technical & management reports.
Technical report is written for an audience of researchers , and a
management report is written for a non technical oriented manager or
client.