Section B Section A Sanrang Paras Arora IMTDCP084 Mahesh Dontul IMTDCP078 Himanshu Saxena IMTDCP075 Chandan Kumar Singh

IMTDCP071
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Mahima Walial
Vishal Javeri Ankita Varma

Behavioral Fundamentals = (P,E)

Personal interaction

Environment

Behavior
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Buying a product is a result of many things sum total of these things is Consumer Behavior

Buying decision made

Market and environmental stimulus

Consumer characteristics

Consumer Psychology

Involvement in Decision making

Consumer Decision making process

Marketing mix Cultural Education

Social, Personal, cultural

Motivation, Learning, Memory, Perception

High involvement Moderate involvement Low involvement

Five stage model

Consumer Behavior Simplified

Consumer is any one who can instill a stir in the market.

Creating effective visuals

Behavior is outcome of a persons interaction with the environment.

Consumer

Behavior

Initiator Gatekeeper Influencer Decider Buyer User

Individual Social

Psychological
Consumer Behavior

Pre Purchase

Disposer

During Purchase
Post Purchase

7 Os model of Buying Behavior

7 Os Occupants Objects Objectives Organizations

Details Individuals, Shops, Small offices, Educational and Research, Clinics, Restaurants, Fast food joints etc High power efficiency, Durability, Low maintenance, Aesthetics, Affordability, Efficient service, Brand name Comfort, luxury, Status symbol, Necessity, Maintenance of electronic equipment. Individuals- Entire family, Shops, Clinics, OrganizationsTechnical consultants, Stake holders etc Market place cash, Credit cards, Cheques, Demand Drafts, Electronic Fund transfer Climatic conditions, Discount, New residential or commercial establishments, Replacements etc Retail shops, Authorized dealers, Hypermarkets, Specialized markets, Online buying.
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Operations Occasion Outlets

Process model of Buying Behavior

ENVIRONMENTAL FACTORS Marketing Stimuli BUYER'S BLACK BOX Buyer Psychology Decision Process Problem recognition Information search Evaluation of alternative Purchase decision Post-purchase behaviour BUYER'S RESPONSE Product choice Brand choice Dealer choice Purchase timing Purchase amount

Environmental Buyer Stimuli Characteristics

Product Price Place Promotion

Economic Technological Political Cultural Demographic Natural

Cultural Social Personal

Motivation Perception Learning Memory

Factors Influencing Consumer Behavior

Buyer Personal a) Age b) Lifecycle stage c) Gender d) Income e) Education f) Personality g) Self concept h) Lifestyle

Cultural a) Culture b) Subculture c) Social Class

Social a) Family b) Friends c) Role d) Status

Physiological a) Motivation b) Learning c) Perception d) Attitude

Relationship Between Culture and Subculture

Example:-

Cultural
In USA In Japan

In Japan

In Korea

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Cultural
Subculture Subculture

An ad showing many racial subcultures

This ad for Vibe Vixen magazine targets the African American urban subculture
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Cultural contd..

Social class

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Personal

Age
Age
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Personal Contd..

Gender

Self Concept Income

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Personal contd..

Education

Life style

Personality

Attitude

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Social

Family

Friends

Status Role

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Psychological

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Consumer Involvement in Decision Making

LOW INVOLVEMENT

MODERATE INVOLVEMENT

HIGH INVOLVEMENT

Habitual decisions

Simple decisions

Lengthy decisions

eg. Tea, toothbrush, Washing powder.

eg. Skin creams ,TV microwave oven .

eg. Cars, Property

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Types of Buying Low involvement Hedonic

Utilitarian / Instrumental
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Variations in Consumer Choice Phenomena

Utilitarian / Instrumental
Feel Do (Know) Trigger = Impulse, Need, Pleasure Rationalizing evaluation of alternatives Process: Choice Heuristic: Buy What I Like Ultimate Choice: Satisfying Model Price as secondary concern

Low Involvement

Hedonic / Ego Expressive

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Variations in Consumer Choice Phenomena

Know Feel Do Trigger = Gap (actual Desired) Active Search Rational use of information; Rational evaluation of alternatives Process: Extensive Problem Solving routine response Choice Heuristic: Buy the Best Ultimate Choice: Trade off among competing alternatives Price as trade-off variable

Utilitarian / Instrumental

Low Involvement

Hedonic / Ego Expressive

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Variations in Consumer Choice Phenomena

Know Do Feel Trigger = Stock Depletion Passive Search Limited / No evaluation of alternatives; Rational Use of information Expectancy Confirming Process: Choice Heuristic: Buy the Familiar Buy the Cheapest Ultimate Choice: Satisfying Model Price as deciding Factor

Utilitarian / Instrumental

Low Involvement

Hedonic / Ego Expressive

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Marketing Considerations Across Core Motivational Conditions

Utilitarian / Instrumental

Keys to Continuity: Product Performance; Provision of Information Central Threat to continuity: Better Performing Alternative

Low Involvement
Keys to Continuity: Saliency of Brand, ensured product availability Central Threat to continuity: interrupts in purchase cycle

Hedonic / Ego Expressive

Keys to Continuity: Clear, Relevant articulation of Brand Image Central Threat to continuity: Change in self or brand image
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Types of Buying Decision Behavior

High Involvement
Significant differences between brands Few differences between brands

Low Involvement

Complex Buying Behavior DissonanceReducing Buying Behavior

VarietySeeking Behavior
Habitual Buying Behavior

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Types of Buying behavior

Complex buying Variety seeking

Significant differences between brands

Few differences between brands

Dissonance Reducing Behavior Habitual Buying

High Involvement

Low Involvement
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Examples of Buying behavior-Complex

Cars Economy 1) 2) 3) 4) 5) 6) 7) 8) 9) I10 A star Alto Santro Wagon R Zen RitZ Spark Beat

Digital Camera 1) 2) 3) 4) 5) Sony Cannon Nikon Kodak Samsung

Digital Camera 1) 2) 3) 4) 5) Sony LG Samsung Sansui AKAI

6)
7) 8)

Panasonic
Hitachi Haier

10) Swift

High Involvement and too many brands to choose from

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Examples of Buying behavior-Variety Seeking

Low involvement and too many brands to choose from

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Examples of Buying behavior-Habitual

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Examples of Buying behavior-Dissonance reducing .

High involvement and a few brands to choose from

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Consumer Decision-Making Process

Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase

Post purchase Behavior

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1) Need Recognition

Result of an imbalance between actual and desired states.

Marketing helps consumers recognize an imbalance between present status and preferred state. Go

Result of an imbalance Internal Stimuli between actual and

and External Stimuli desired states.

Preferred State

Preferred state

Present Status
Present State
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NEED IDENTIFICATION-Examples

Fully automatic washing machines from Godrej

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1) Need Recognition-Case of a John& purchase of laptop

I dont have a laptop ,I must have one My laptop seems to be out of date, I should change. There is a discount in International City this is the time. It is mandatory for all MBA students. I want to play games and watch movies
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2) Information Search

Internal Information Search Recall information in memory

External Information search
Seek information in outside environment Non-marketing controlled Marketing controlled

Marketing should identify consumer source of information and importance of each source. A company must design its marketing mix to make prospects aware of and knowledgeable about its brand. Go
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Information Search

Personal Sources

Family, friends, neighbors Most effective source of information Advertising, salespeople Receives most information from these sources Mass Media Consumer-rating groups

Commercial Sources Public Sources Experiential Sources

Handling the product Examining the product 35 Using the product

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2) Search Information-Case of a John& purchase of laptop

Memory scan

Consult Friends& Family

Browse through the internet

May visit computer showrooms

Start paying more attention to Computer ads

in TV and Print media

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3) Evaluation of Alternatives

Evoked Set
Evaluation of Products
Analyze product attributes Use cutoff criteria

Purchase!
Marketing should talk about the adage of their product and the proposition that they are offering more than the competitor. Go

Rank attributes by importance

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Coca Cola- Compagain for Achieving TOMA

Coca-Cola didn't have many issues selling Coke during the summer months. To ensure that coke is selected as an alternative in the wintertime, come up with a campaign. "Thirst Knows No Season" Thanda matlab Coca Cola

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JUST DO IT by Nike to carve niche in customer minds

"Just Do It" campaign, purportedly coined during a meeting of executives between WK and Nike ("You Nike guys, you just do it.").

Nike tied their brand to smart, humorous and cool advertising to evaluate

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Think Small By Volkswagen talked about their uniqueness

Volkswagen had plenty of success with the Beetle in Europe, but wanted to bring it to the U.S. The DDB team knew they had to do something different to win over the jaded consumers. the impact of its ad campaigns revolutionized advertising forever,

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Evaluate the alternative (Introduce the X Factor)

Marketers should introduce the X Factor to help consumers evaluate the alternatives. This X Factor can be in varied forms which can be:

Product Feature Price Promotion Service Distribution

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PRICE

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PRODUCT

All Out with Extra MMR X Factor -Glycerine

Thinner cans appealed the youth- Style

Its a liquid soap

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SERVICES

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PERFORMANCE

DABBAWALAS IN MUMBAI

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3) Evaluation of Alternatives-Case of a John& purchase of

laptop Attributes Laptops HP Size 8 Price 9 Warranty 6 Configuration 9

DELL
SONY Acer Weight age

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10 5 0.4

7
4 3 0.3

7
3 8 0.2

7
2 5 0.1

Minimum cut off

Expectancy value model

Consumer assigns different values for different attributes of a product Conjunctive model Consumer assigns a minimum cut-off value to each attribute. Disjunctive model Assign maximum weight age to one particular model
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Decision Making Sets

Total set APPLE DELL HP COMPAQ SONY ACER TOSHIBA BENQ MSN

Awareness Considerat set ion set HP DELL SONY ACER TOSHIBA APPLE HP DELL SONY ACER

Choice set HP DELL

Decision HP

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Purchase Decision
Desire to buy the most preferred brand

Purchase Intention

Attitudes of Others

Unexpected Situational Factors

Purchase Decision
Marketing should reduce the time gap between the purchase intent of consumer and the actual buying. GO
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Purchase Decision-case of John & laptop

Unexpected situational Behavior

John saw an ad that i7 second generation processor is getting launched soon and he postponed his decision to buy laptop for time being Attitude of others Johns Father told to buy Dell as Dells service is better .John was forced to buy Dell.

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5) Post purchase Behavior

Cognitive Dissonance

Did I make a good decision?

Did I buy the right product?

Did I get a good value?

Can minimize through: Effective Communication Follow-up Guarantees Warranties. Go

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Purchase Decision-case of John & laptop Satisfied John John will tell good things about his laptop to his friends and relatives and this may influence them to buy the same laptop as John. John will also be attracted towards other offering the same company Dissatisfied John Spread bad word of mouth May file a legal case Go to media

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