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Presentation overview
What is CB?
Why CB is important?
Factors affecting CB Buying Motives Stages of the Buying Decision process Perceived risk
What is CB?
CB studies how individuals groups and organizations select, buy use and dispose of goods, services ideas or experiences to satisfy their needs and desires. Understanding consumers behaviour and knowing customers are not simple. They may say some thing and do another. Organizations must understand how and why their customers are buying.
Why CB is important?
Studying customers will provide clues for -developing new products -product features -prices -channels -messages and other marketing mix elements
Factors affecting CB
Factors affecting CB
Cultural factors culture, religion, language Personal factors- Age, education, occupation, economic position, concern about status, personality, stages in a family lifecycle. Psychological factors- motivation, perception, beliefs and attitude
A belief is a descriptive thought that a person holds about some thing. An attitude is a persons enduring favorable or unfavorable evaluations emotional feelings and actions tendencies towards some object or objective. A company is advised to fit its products into existing attitudes rather than to change their attitudes.
II.Group influence
Group influence
Social class is a larger group than intimate groups and is decided by several factors such as -income -occupation -place of residence A social class develops its behavior and living standard. In the purchasing behavior, the class members are guided by their class norms.
Buying motives
Buying motives can be defined as all the impulses, desires, and considerations which induce a buyer to purchase a given product.
Buying motives
Buying motives
Product Motive
Product motive
Unsatisfied need creates a product Those impulses ,desires and considerations that make people buy given product are called product motives.
Motivation
A motive is a need that is sufficiently pressing to drive a person to act.
Different theories of motivation 1. Freuds theory 2.Abraham Maslows theory 3.Herzberg theory
Perception
A motivated person is ready to act. How he acts is influenced by his perception. Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world.
Problem recognition
Recognize a problem or need The need can be triggered by a stimuli The need rises to a threshold level and becomes the drive. Marketers should identify the circumstances that triggers a particular need. Eg. Mumbais Dabbawallahs (tiffin carriers)
Information search
Personal sources - Family, friends,
neighbours
persons, dealers, packaging, displays Public sources- mass media consumer rating organisations Experimental sources- handling, experimenting, using the product
Evaluation of alternatives
A consumer is trying to satisfy a need Expecting certain benefits Consumer sees each product as a bundle of attributes.
Purchase decision
The consumer may make up to 5 purchase sub decisions 1.Brand decision 2.Dealer decision 3.Quality decision 4.Timing decision (When to purchase) 5.Payment method decision
Perceived risk
Definition: A functional or psychosocial risk
Consequences of making a wrong purchase decision A high priced durable good has high perceived risk than nondurable commodity. The higher the perceived risk, the more likely that the consumer will seek information about the product, recommendations and experiences of peers.
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