Consumer Behaviour

1 ConsumerBehaviour( ,SemesterIII) , , , BankingandInsuranceDepartment,SIWSC ollegeWadala, , , , ,NETV isitingFaculty,ModelCollege, , NEWDELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATI AuthorsNopartofthispublicationmayberepro duced,storedinaretrievalsystem,ortransmi ttedinanyformorbyanymeans,electronic,mec hanical,photocopying, :2015 , Ramdoot PoojaApartments ,4-B,MurariLalStreet,AnsariRoad,DaryaGan j, :011-23270392,23278631;Fax:011-23256286 Nagpur:KundanlalChandakIndustrialEstate, GhatRoad, :0712-2738731,3296733;Telefax:0712-27212 16 (Old12/1),1stFloor,NexttoHotelHighlands, MadhavaNagar,RaceCourseRoad, :080-22286611,22385461,41138821,22281541 ,Lingampally,BesidesRaghavendraSwamyMath am,Kachiguda, :040-27560041,27550139 Chennai:New-20,Old-59,ThirumalaiPillaiRo ad, , :9380460419 Pune:FirstFloor,"Laksha"Apartment, ,Mehunpura,Shaniwarpeth(NearPrabhatTheat re), :020-24496323/24496333;Mobile:0937057933 3 Lucknow:HouseNo731,ShekhupuraColony, ,Aliganj, :0522-4012353;Mobile:09307501549 Ahmedabad:114, SHAIL ,1stFloor, , ,NavrangPura, :079-26560126.

2 Mobile:09377088847 Ernakulam:39/176(NewNo:60/251)1stFloor,K arikkamuriRoad,Ernakulam,Kochi :0484-2378012,2378016 Mobile:09387122121 Bhubaneswar:5 StationSquare,Bhubaneswar-751001(Odisha) .Phone:0674-2532129,Mobile:09338746007 Indore:KesardeepAvenueExtension,73,Naray anBagh, ,IIIrdFloor,NearHumptyDumptySchool,Indor e-452007( ).Mobile:09303399304 Kolkata:108/4,BeliaghataMainRoad,NearIDH ospital, ,Kolkata-700010,Phone:033-32449649,Mobil e:7439040301 ,BehindPragjyotishCollege,NearSharmaPrin tingPress, ,Guwahati-781009,(Assam).Mobile:09883055 590,08486355289,7439040301 DTPby:AshaPrintedat:RoseFineArt, ConsumerBehaviour . [60 Lectures:3 Credit] , (InstitutionalandRetail),DiversityofCons umersandtheirBehaviour ,FactorsAffectingEachStageandNeedRecogni tionUnit2 Individual (Theories Maslow,McCleland) ,NatureofPersonality,Freudian,Neo-Freudi anandTraitTheories,PersonalityTraitsandi tsMarketingSignificance, Theory,NatureofConsumerAttitudes, ,NeedsPerceivedandEvaluationRules,Factor sAffectingtheNeedoftheFamily, ,SocialClassandConsumerBehaviour ReferenceGroups,OpinionLeadersandSocialI nfluences,In-groupversusOut-groupInfluen ces, ,NormsandtheirRole,Customs.

3 HowardShetModel,Engel-Blackwell-MiniardM odel, ,ProcessofDiffusionandAdoption,Innovatio n,DecisionProcess, ,TheE-Buyervis- -vistheBrick-and-mortarBuyer,Influenceso nE-BuyingPAPERPATTERNM aximumMarks:75 (15 Marks)(a)( )(b)( )(c)( ) (15 Marks)(a)( )(b)( )(c)( ) (15 Marks)(a)( )(b)( )(c)( ) (15 Marks)(a)( )(b)( )(c)( ) (15 Marks)CONTENTSUnit 48 Unit II:Individual 90 Unit 128 168 ModelQuestionPaper 1169 171 UnitI:IntroductiontoConsumerBehaviourInt roduction1 ChapterLearningObjectivesAftergoingthrou ghthischapter,youwillbeabletounderstand: WhatisConsumerBehaviour? Natureanditsscope. NeedandimportanceofCB. ,consumersareuniqueinthemselves;theyhave needsandwantswhicharevariedanddiversefro moneanother; ,competeandgrow,itisessentialthatthemark eteridentifiestheseneedsandwants, ,liestheessenceofConsumerBehaviour,anint erdisciplinarysubject, ,aleadingmanagementexpert, , , theinterplayofforcesthattakesplaceduring aconsumptionprocess,withinaconsumers ,viz.

4 ,knowledge,affectandbehaviour;itcontinue sthroughpre-purchaseactivitytothepostpur chaseexperience;itincludesthestagesofeva luating,acquiring,usinganddisposingofgoo dsandservices .The Consumer includesbothpersonalconsumersandbusiness / ; ,theinterplaybetweencognition,affectandb ehaviourthatgoesonwithinaconsumerduringt heconsumptionprocess:selecting, :Thisincludeswithinitsambitthe knowledge,informationprocessingandthinki ng part;Itincludesthementalprocessesinvolve dinprocessingofinformation,thinkingandin terpretationofstimuli(people,objects,thi ngs,placesandevents).Inourcase,stimuliwo uldbeproductorserviceoffering; :Thisisthe feelings ( ).Thesevaryindirection, :Thisisthe visible ,thiscouldbethepurchaseactivity:tobuyorn otabuy(againspecifictoaproductorserviceo ffering,abrandorevenrelatedtoanyofthe4Ps ).

5 OTHERDEFINITIONS Thebehaviourthatconsumersdisplayinsearch ingfor,purchasing,using,evaluatinganddis posingofproductsandservicesthattheyexpec twillsatisfytheirneeds. SchiffmanandKanuk ..thedecisionprocessandphysicalactivitye ngagedinwhenevaluating,acquiring,usingor disposingofgoodsandservices. LoudonandBitta Thestudyofconsumersastheyexchangesomethi ngofvalueforaproductorservicethatsatisfi estheirneeds WellsandPrensky Thoseactionsdirectlyinvolvedinobtaining, consuminganddisposingofproductsandservic esincludingthedecisionprocessesthatprece deandfollowtheseactions. Engel,Blackwell,Miniard Thedynamicinteractionofeffectandcognitio n,behaviourandtheenvironmentbywhichhuman beingsconducttheexchangeaspectsoftheirli ves.

6 ,affectandbehaviourinconsumptionbehaviou rs, sinternalselfandincludepsychologicalcomp onentslikepersonalmotivationandinvolveme nt,perception,learningandmemory,attitude s,self-conceptandpersonality, ,anthropologicalandeconomiccomponentslik ethefamily,socialgroups,referencegroups, socialclass,culture,sub-culture,cross-cu lture, (thestudyoftheindividual:individualdeter minantsinbuyingbehaviour),sociology(thes tudyofgroups:groupdynamicsinbuyingbehavi our),socialpsychology(thestudyofhowanind ividualoperatesingroup/groupsanditseffec tsonbuyingbehaviour),anthropology(theinf luenceofsocietyontheindividual:culturala ndcross-culturalissuesinbuyingbehaviour) ,andeconomics(incomeandpurchasingpower).

7 ,affectandbehaviourofindividualsaloneori ngroupskeepsonchanging; , , ,asagainstabackdropoftheoriesborrowedfro mpsychology,sociology,socialpsychology,a nthropologyandeconomics, , ,theoriesborrowedfromsocialsciencestound erstandconsumptionbehaviour, : What theconsumersbuy:goodsandservices Why theybuyit:needandwant When dotheybuyit:time:day,week,month,year,occ asions,etc. Where theybuyit:place Howoftentheybuy it:timeinterval Howoftentheyuse it: ,therefore,thestudyofcustomersbehaviouri svitalinframingproductpolicies,pricepoli cies, , , , , , Thestudyofconsumerbehaviourforanyproduct isofvitalimportancetomarketersinshapingt hefortunesoftheirorganisations.

8 Itissignificantforregulatingconsumptiono fgoodsandtherebymaintainingeconomicstabi lity. Today, , ,detailedstudyonupcominggroupsofconsumer sisessentialforanyfirm. Thegrowthofconsumerprotectionmovementhas createdanurgentneedtounderstandhowconsum ersmaketheirconsumptionandbuyingdecision . Consumers ,design,size, ,consumerbehaviourhelpsinformulatingthep roductionpolicy. Foreffectivemarketsegmentationandtargetm arketing, (CognitiveandAffect):Thisincludesthestag esofdecisionmaking:Needrecognition,Infor mationsearch,Evaluationofalternatives,Pu rchaseactivity, ( Behaviour ): :Theenvironmentalfactorsaffectthedecisio nprocessindirectly, :ActualBuyervis- ,viz.

9 ,Initiator,Influencer,Decider, ;theinfluenceristheonewhoinfluencesthepu rchasedecision,theactualpurchaseactivity and/ortheuseoftheproductorservice;thedec ideristheonewhodecideswhethertobuy,whatt obuy,whentobuy,fromwheretobuy,andhowtobu y;thebuyeristheonewhomakestheactualpurch ase;and,theuseristheperson(s) , , , ,whichaimsatunderstandingcustomerneedsan dwants,providingtherightproductandservic e,andderivingcustomersatisfaction; makewhatyoucansell ratherthan sellwhatyoumake. ; ,newermarkets,unfulfilledneedsandwants(t hroughastudyofconsumerindividualdetermin antsandotherenvironmentalinfluences). ; , ,TargetingandPositioning:Thestudyofconsu merbehaviourmaybeappliedtosegmentthemark et, ,understandingtheirneeds,providingtherig htproductandserviceofferingandcommunicat ingabouttheoffering allofthesehelpamarketersucceedinthelongt ermandensurehissurvivalandsuccessinachan gingenvironment.

10 (a)Segmentthemarket:Themarketerneedstoid entifydistinctcustomergroupswithneedsand wants, ,gender,income,occupation,education,fami lysize,familylifecycle,gender,lifestyle, personality,religion,generation,geograph y,nationality, ,uses,useoccasion,usagerates,andloyaltys tatus.(b) (s)thatshouldbetargetedshouldbeviable;th ereshouldbeafitbetweenthemarketattractiv enessandthecompany ,viz.,measurability,substantialability,a ccessibility,differentiability,andaction ability.(c)Position:Theproductofferingin themindofthecustomers: :ThereexistsaninterrelationbetweentheCon sumer,theEnvironmentandtheMarketingstrat egy.(a) Consumer :Theconsumerhashisneedsan dwantsaswellasproductpreferences;Thus,th ereexistsaninterplayofCognition(knowledg eaboutproductsandalternatives),Affect(fe elingsoffavourablenessandunfavourablenes s)andBehaviour(action:buyornottobuy).