BCPC 205 Elements of Marketing Lecture 4 PDF

BCPC 205 ELEMENTS OF MARKETING LECTURE FOUR UNDERSTANDING CONSUMER BEHAVIOUR  Presentation Overview 1. Meaning of consumer behaviour 2. Why study consumer behaviour? 3. Features of consumer behaviour 4. Models of consumer behaviour 5. Consumer decision process 6. Fac...

BCPC 205 ELEMENTS OF MARKETING LECTURE FOUR UNDERSTANDING CONSUMER BEHAVIOUR  Presentation Overview 1. Meaning of consumer behaviour 2. Why study consumer behaviour? 3. Features of consumer behaviour 4. Models of consumer behaviour 5. Consumer decision process 6. Factors affecting consumer behaviour  Meaning of consumer behaviour The buying behaviour of final consumers – individuals and households who buy goods and services for personal consumption  Meaning of Consumer Behavior Cont’d Activities people undertake when obtaining, consuming, and disposing of products (Blackwell, Miniard & Engel, 2001) The dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange of their lives (Bennett, 1989).  Why study consumer behaviour? 1. To understand how consumers respond to various marketing stimuli that a firm might use to develop & confirm its competitive position 2. Based on such knowledge, provide consumers with reliable products that meet their expectations  Why study consumer behaviour? 3. To create customer loyalty necessary for:  Developing a customer base that provides regular income & turnover  Winning customers‘ support even in the face of competition  Providing goodwill that develops & strengthens the firm‘s market position  Features of consumer behaviour Routine response behaviour Consumers frequently buy items of low value that require very little thought Limited decision making Doing some thinking before purchasing an unfamiliar brand. Information may be limited  Features of consumer behaviour Extensive decision-making Giving the purchase of durables a good thought before purchase decision This involves seeking information on benefits of substitute products  Features of consumer behaviour Impulse buying A consumer buys a product as a result of a strong urge to buy something immediately without giving the purchase decision much thought Models of consumer behaviour They help in understanding the relationship between marketing stimuli & consumer response  Consumer decision process 1. Problem or opportuny recognition The buyer senses a difference between his actual state and some desired state  Consumer decision process 2. Information search The consumer gathers information that will enable him to make the right decision to attain the desired state of affairs Internal and external information searches may take place  Consumer decision process 2. Information search  In searching for information, a consumer may consider brands  The number of brands he considers is referred to as the evoked set  Marketers can increase the size of the evoked set through repetition especially for low involvement purchases.  Consumer decision process 3. Evaluation of alternatives  The consumer uses information to evaluate alternative brands in the evoked set  The evaluative criteria may include features, benefits, brand image, importance, usage, etc. of each brand in the evoked set  Consumer decision process 3. Evaluation of alternatives Brand image refers to the set of beliefs that consumers hold about a particular brand.  Consumer decision process 3. Evaluation of alternatives Brand image refers to the set of beliefs that consumers hold about a particular brand.  Consumer decision process 4. Purchase decision and act  This is the stage when a consumer actually buys the product  The ability of a purchase intention to be translated into purchase decision could be influenced by attitudes of others & unexpected situational factors  Consumer decision process 4. Purchase decision and act A purchase decision is influenced heavily by perceived risk Marketers must understand the factors that provoke feelings of risk in consumers & must provide information & support that will reduce the perceived risk  Consumer decision process 4. Post-purchase evaluation The evaluation of a purchase may yield satisfaction or dissatisfaction Cognitive dissonance may occur just after a purchase It is discomfort caused by post- purchase conflict It may lead to the return of the product or a decision not to buy the product again  Factors affecting consumer behaviour 1. Personal factors Demographic factors Situational factors Level of involvement in decision-making  Factors affecting consumer behaviour 2. Psychological factors Motivation Motives drive the consumer decision process Motives are a form of strong stimulus that drives a person towards the satisfaction of a felt need  Factors affecting consumer behaviour 2. Psychological factors - Perception This is the process by which people select, organise, and interpret information to form a meaningful view of reality  Factors affecting consumer behaviour 3. Personality Behavioural & individual traits which can be uniquely identified with customers e.g. Aggression, competitiveness, etc.  Factors affecting consumer behaviour 4.Social factors Culture and sub-culture Roles and status Group and reference group influence Family influences – autonomic, husband dominant, wife dominant, syncratic Social class  Consumer buying roles Possible decision makers in a decision-making unit Intiator Influencer Decider Buyer User What factors can influence a student’s choice of mobile phone in the market?