CONSUMER BEHAVIOUR

PERCEPTION, ATTITUDE, DECISION MAKING AND GROUP INFLUENCE ON CONSUMER BEHAVIOUR

SUBMITTED TO:

SUBMITTED BY:

Ms. Ruchika

Pooja Chaurasia. M.F.M. 2nd Sem.

PERCEPTION
Introduction:
Our modern world is very complex, and so is the business world. There are many things that influence the behaviour of the consumer. These influences can be religion, ethnic group, social class, age, gender, values, etc. But what is even more important than the different stimuli itself is how consumers perceive, process, interpret and store the stimuli. This work will describe what perception is, how consumers perceive and how this scheme can be used by marketers. Peoples perception of something can vary greatly from person to person, with each one forming an individual opinion about the stimuli (agents, action or conditions that elicit a response) being received. Individuals are continually receiving messages through the five senses: touch, taste, smell, sight and sound. Successful marketers use those senses to stimulate consumers to examine a product. Perception is one of the key psychological factors that influence consumer behaviour.

What is perception?
In general, perception is gathering information through our senses, which are seeing, hearing, touching, tasting, smelling and sensing. Through these senses we can perceive things, events or relations. But as there are so many different stimuli only a small portion of them are noticed and an even smaller amount can really reach our attention. And thats why it is necessary to talk about the difference between Sensation and perception. Although the distinction between sensation and perception is not that easy as it was believed in former times, a rough distinction can be made. Sensation is the immediate response of our sensory receptors to such basic stimuli as light, colour, etc. Perception is the process by which these stimuli are selected, organized and interpreted.

FUNCTION
In marketing, the role of perception in consumer behaviour is all about recognizing how consumers view a companys product or service. A consumer's motivation for buying a particular product or service often comes down to image. People wish to be perceived as having the ability to make the right choices and pick the right products. Marketers use perception to target peoples need to fit in and be part of a larger group of discerning consumers.

SIGNIFICANCE
The significant role played by perception can be exemplified when two identical products are marketed in completely different ways, thus creating distinct perceptions of each product. Depending on consumers perception, each product can be received quite differently: favourably, less favourably or not at all. Marketers must distinguish their message from their competitors to grab consumers attention. People are often willing to pay for a more expensive product over its less-expensive but identical counterpart just because they perceive it to be a better product.

FEATURES
There are several factors that can influence the role of perception in consumer behaviour: exposure to stimuli, interpretation of said stimuli and the ability to identify changes in the intensity of stimuli. Exposure involves the levels to which consumers encounter stimuli, like commercial messages in the form of billboards, television and radio advertisements or other advertising media. Interpretation involves consumers making sense out of the messages received, such as recognizing a brand name or logo. According to Webers Law, a consumer's ability to identify changes in stimulus intensity is strongly related to the original intensity of the stimulus. In other words, the more dramatic the change in the intensity, the more noticeable it will be to consumers.

CONSIDERATIONS
A number of aspects will influence how consumers perceive a product or service. The relevance to consumers lives will definitely affect how much attention consumers give to a perception of a certain product or service. Pleasant or very unpleasant stimuli (advertisements) can command consumers attention, with irritating messages sometimes being an extremely effective marketing strategy. Surprising stimuli or stimuli with a noticeable contrast (to its surroundings) or prominence (larger or centre placement) will also gain greater consumer attention.

FACTORS IN PERCPETION Several sequential factors influence our perception. Exposure involves the extent to which we encounter a stimulus. For example, we are exposed to numerous commercial messages while driving on the freeway: bill boards, radio advertisements, bumper-stickers on cars, and signs and banners placed at shopping malls that we pass. Most of this exposure is random we dont plan to seek it out. However, if we are shopping for a car, we may deliberately seek out advertisements and tune in when dealer advertisements come on the radio. Exposure is not enough to significantly impact the individualat least not based on a single trial (certain advertisements, or commercial exposures such as the Swoosh logo, are based on extensive repetition rather than much conscious attention). In order for stimuli to be consciously processed, attention is needed. Attention is actually a matter of degreeour attention may be quite high when we read directions for getting an income tax refund, but low when commercials come on during a television program. Note, however, that even when attention is low, it may be instantly escalatedfor example, if an advertisement for a product in which we are interested comes on.

ATTITUDE
Introduction:
Consumer attitudes are a composite of a consumers (1) beliefs about, (2) feelings about, (3) and behavioural intentions toward some object--within the context of marketing, usually a brand or retail store. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumer will react to the object.

Definition of Attitude
Attitudes are predispositions to respond towards particular people of situations in a particular manner. They are learned and relatively enduring. They are, therefore, there product of experience but enter into subsequent experience as a directing factor.

Attitude Change Strategies:

Changing attitudes is generally very difficult, particularly when consumers suspect that the marketer has a self-serving agenda in bringing about this change (e.g., to get the consumer to buy more or to switch brands). Changing affect: One approach is to try to change affect, which may or may not involve getting consumers to change their beliefs. One strategy uses the approach of classical conditioning try to pair the product with a liked stimulus. For example, we pair a car with a beautiful woman. Alternatively, we can try to get people to like the advertisement and hope that this liking will spill over into the purchase of a product. For example, the Pillsbury Doughboy does not really emphasize the conveyance of much information to the consumer; instead, it attempts to create a warm, fuzzy image. Although Energizer Bunny ads try to get people to believe that their batteries last longer, the main emphasis is on the likeable bunny. Finally, products which are better known, through the mere exposure effect, tend to be better liked--that is, the more a product is advertised and seen in stores, the more it will generally be liked, even if consumers to do not develop any specific beliefs about the product. Changing behaviour: People like to believe that their behavior is rational; thus, once they use our products, chances are that they will continue unless someone is able to get them to switch. One way to get people to switch to our brand is to use temporary price discounts and coupons; however, when consumers buy a product on deal, they may justify the purchase based on that deal (i.e., the low price) and may then switch to other brands on deal later. A better way to get people to switch to our brand is to at least temporarily obtain better shelf space so that the product is more convenient. Consumers are less likely to use this availability as a rationale for their purchase and may continue to buy the product even when the product is less conveniently located. (Notice, by the way, that this represents a case of shaping). Changing beliefs: Although attempting to change beliefs is the obvious way to attempt attitude change, particularly when consumers hold unfavorable or inaccurate ones, this is often difficult to achieve because consumers tend to resist. Several approaches to belief change exist:

1. Change currently held beliefs: It is generally very difficult to attempt to change beliefs that people hold, particularly those that are strongly held,even if they are inaccurate. For example, the petroleum industry advertised for a long time that its profits were lower than were commonly believed, and provided extensive factual evidence in its advertising to support this reality. Consumers were suspicious and rejected this information, however. 2. Change the importance of beliefs: Although the sugar manufacturers would undoubtedly like to decrease the importance of healthy teeth, it is usually not feasible to make beliefs less important--consumers are likely to reason, why, then, would you bother bringing them up in the first place? However, it may be possible to strengthen beliefs that favour us--e.g., a vitamin supplement manufacturer may advertise that it is extremely important for women to replace iron lost through menstruation. Most consumers already agree with this, but the belief can be made stronger. 3. Add beliefs: Consumers are less likely to resist the addition of beliefs so long as they do not conflict with existing beliefs. Thus, the beef industry has added beliefs that beef (1) is convenient and (2) can be used to make a number of creative dishes. Vitamin manufacturers attempt to add the belief that stress causes vitamin depletion, which sounds quite plausible to most people. 4. Change ideal: It usually difficult, and very risky, to attempt to change ideals, and only few firms succeed. For example, Hard Candy may have attempted to change the ideal away from traditional beauty toward more unique self expression.

Component Models of Attitudes

Attitude consist of three models:

Affective component: evaluations, feelings Cognitive component: beliefs, opinions, ideas Conative component: our actions, how we behave

What is an Attitude? It represents what we like and dislike. An attitude is a lasting general evaluation of something - it has knowledge of that something, liking or disliking, and the strength of the feelings. They are lasting, but changeable. They help to direct behaviour e.g. do you recycle cans?

What functions do attitudes provide?

Utilitarian -does the clothing fit, is it appropriate, does it provide what we need? Value-expressive: clothing says that you are a professional Ego-expressive: clothing conveys self-image Knowledge: summarizes the image we are trying to give

The Variety of Consumer Attitudes

Attitudes toward product Campbell Soup at hand Attitudes toward company - Philip Morris Attitudes toward a retailer Wal Mart Attitudes toward product attributes salt content Attitudes toward various types of brand associations

Logos design do you like the Nike swoosh? Symbols meanings do you like the Energizer bunny? Product endorsers sports figures do you like Michael Jordan?

What can attitude tell us about Consumers?

Consumers who like momos are likely to eat it. Consumers who like rich ice cream are likely to eat it. Consumers who like to eat healthy will be likely to eat things that are not high in calories.

What is Decision making?

Decision-making is an integral part of modern management. Essentially, Rational or sound decision making is taken as primary function of management. Every manager takes hundreds and hundreds of decisions subconsciously or consciously making it as the key component in

the role of a manager. Decisions play important roles as they determine both organizational and managerial activities. A decision can be defined as a course of action purposely chosen from a set of alternatives to achieve organizational or managerial objectives or goals. Decision making process is continuous and indispensable component of managing any organization or business activities. Decisions are made to sustain the activities of all business activities and organizational functioning. Decisions are made at every level of management to ensure organizational or business goals are achieved. Further, the decisions make up one of core functional values that every organization adopts and implements to ensure optimum growth and drivability in terms of services and or products offered.

Characteristics of decision making:

1. Decision making implies choice 2. Continuous process/activity 3. Mental/intellectual activity 4. Based on reliable information 5. Goal oriented process 6. Related to specific problem 7. Time- consuming activity 8. Needs effective communication 9. Responsible job

The figure given below suggests the steps in the decision making process: