Contents

Consumer behaviour and its importance in

promotional planning
Cultural, social, personal and psychological factors

influencing decision-making and their impact on promotions

Consumer decision-making processes & the use of

advertising and promotions to influence them

Concerns of consumer behaviour

How people buy, what they buy, when they buy & why

they buy
Processes used to select, buy, use & dispose off

products & the impact of these processes on marketers

Study of characteristics of individual consumers to

understand their needs, behaviours and motivations

Model of buyer behaviour

Marketing stimuli
Product Price Place Promotion

Other stimuli
Economic Political Technological Cultural

Buyers characteristics
Cultural Social Personal Psychological

Buyers decision process

Problem recognition Information search Evaluation of alternatives Purchase decision Post-purchase behaviour

Buyers decisions
Product choice Brand choice Dealer choice Purchase timing Purchase amount

Culture

Set of values, ideas, attitudes, beliefs, norms, customs,

rituals & symbols learned & transmitted from generation to generation over time Eg Himalaya Appeals to the HERBAL-ITES, Hero Motor Corp campaign
Abstinence vs. materialism Individualism vs. freedom

Ramayan vs. Kserials

Joint family vs. nuclear family

Culture
Sub-culture Social classes

Subsets of the larger culture along lines of race, religion, region, etc. E.g. Gujaratis, environmentalists, aesthetics, urbanites, etc.

Hierarchical division of the society along lines of occupation, income, education, lifestyle, etc. E.g. Brahmins, middle class, agricultural class, etc.

Social factors
Reference groups Family Role & status in a group
Groups used as a yardstick in forming ones thinking, feeling, values & behaviour Can be aspiration or dissociative groups Eg Adidas Sachin Tendulkar

One of the strongest influences on an individuals buying behaviour Often a single buying unit, with 1 or 2 prime decision-makers Eg . - Maruti Suzuki Esteem -

Products are often chosen to communicate ones role & status in a society

Airtel influences through reference groups

Buying roles in a family/ purchase unit

Initiator

User

Influencer

Buyer

Buyer

Decider

Marketers target people in specific roles

Personal factors
A buyers demographics

& psychographics, such as age, stage in life cycle, occupation, economic situation, lifestyle, personality & selfconcept, etc. also affect purchase decisions

Psychological factors
Motivation
Makes a person move towards goal fulfillment

Perception
Learning

The process by which a person selects, organizes & interprets information to create a meaningful picture of the world

The process by which individuals acquire the purchase & consumption knowledge & experience to apply to future related behaviour

Beliefs & Attitudes

Belief: Descriptive thought regarding the truth or validity of a proposition Attitude: Favourable or unfavourable dispositions towards something

Maslows hierarchy of needs

Herzbergs two-factor theory

Motivators

Motivation to act
Hygiene factors

Perception
Selective attention

Selective comprehension

Selective retention

How do you perceive these ads?

Learning
Behavioural theories
Learning is a result of action Drive: Strong internal

Cognitive theories
Learning occurs from a

stimulus propelling action Cues: Minor stimuli determining when, where & how a person responds Reinforcement can be positive or negative Future responses can be by generalization or discrimination

change in mental state Learning relates new information to previously learned information Cognitive processes such as perception, motivation, beliefs & attitudes, etc. influence behaviour Effect of environmental factors can be minimized

Multiattribute attitude model

Ab = (i=1 to n) Bi x Ei

where: Ab = the consumers attitude towards a brand Bi = the consumers belief about the brands performance on attribute i Ei = the importance the consumer attaches to attribute i n = number of attributes considered

Strategies to change consumer attitudes

Changing consumer perceptions on the importance of an attribute Dove Mildness of a Soap Adding a new attribute to the attitude formation process Surf Excel Daag Acche Hain Samsung Color Feature of Mobile Phones

Changing or increasing the rating of a belief regarding an imp attribute Dettol For Clean people also

Changing or decreasing the rating of a belief regarding an attribute for a competing brand

How do the following brands influence consumer attitudes?

Model of consumer decisionmaking

Problem recognition Information search Alternative evaluation Purchase decision Postpurchase evaluation

A. Stages in the consumer decision-making process

Motivation

Perception

Attitude formation

Integration

Learning

B. Relevant internal psychological processes

Encouraging problem recognition through communication

Information search
Internal search
Past experiences Knowledge regarding alternatives

External search

Personal sources Commercial sources Public sources Personal experience

Quick Q!
Which of the following is likely to have the most

influence on a consumer wanting to purchase a luxury car?

Television b. Print c. Word-of-mouth d. Internet
a.

Communication helps evaluate alternatives

Purchase decision
To buy or not to buy?
Role of unexpected
When to buy?

situational factors
How to pay? Purchase decision Where to buy?

How much to buy?

Post-purchase tasks

Managing customer satisfaction

Managing postpurchase dissonance

Obtaining customer feedback

Regulating product disposal