Consumer Behavior: Customer Is Profit, All Else Is Overload...

Customer is profit, all else is overload....
Consumer Behavior
WHO IS A
CONSUMER ?
A consumer can be any of the following:
1. Initiator
2. Influencer
3. Decider
4. Financer
5. Buyer
6. User
7. Disposer
CONSUMER BEHAVIOUR
Consumer behaviour can be defined as
in depth study of the decision-making
process and physical activity involved in
acquiring, evaluating, using and
disposing of goods and services.
WHY STUDY CONSUMER
BEHAVIOUR
✓Who and where are the customers and what
are they like to buy?
✓Who are the non- customers and why do they
buy?
✓How is the market made up?
✓How is the market divided into separate sections or

"segment"?
✓What are the patterns of market behaviour and
why does it occur?
✓What are the patterns of market demand?
CASE STUDY ON CONSUMER
BEHAVIOUR
Telephonic conversation to find out factors involved in the
decision process of a friend who recently bought a HTC Desire.
Demographics of the interviewee:

• Age: 24 Marital Status: Single
• Gender: Male
• Salary Range: 5-6 lakhs per annum
• Occupation: A software engineer with Siemens
Nokia Networks, Bangalore
• Marital Status: Single
SALIENT POINTS OF INTERVIEW
• Human factor: Only the interviewee
• Outside help: Websites recommending and
researching cell phones
• Main factor: Technical specs
• Initial budget lower than the final purchase
price.
• Biggest Facilitator : EMI option with 0%
interest rate
• Brand Value : Facilitating preference of the
customer
• Inference: Consumer is Brand conscious ,Internet
NEW AGE CUSTOMER
• Today’s customer is exposed to international quality,
thanks to the entry of more players - from within India
and abroad - in the market in post liberalized India.
• So he dictates specifications, quality standards, and
even chargeable price.
• He wants everything here and now.
“Superfast Internet for the Superfast generation” by
reliance net connect.
• Both budget shoppers and high spenders are
demanding better return for the money they spend.
WHAT INFLUENCES CUSTOMER
BEHAVIOUR
Cultural Factors
Social Factors
Personal Factors
Psychological Factors
CULTURAL FACTORS
• Culture
• Sub culture
• Social Class
CAMPAIGNS
CAMAPIGNS
SOCIAL CLASSES
• Upper Uppers
• Lower Uppers
• Upper Middles
• Middle Middles
• Lower middles
• Upper Lowers
• Lower Lowers
Personal Factors that affect Consumer
Behavior
• Age - Horlicks
• Gender -TVS Scooty-why should boys have all the fun
• Family size - Bundling
• Family lifecycle stage - Johnson n Johnson
• Income - Meri Maruti Mera Sapna
• Education
• Occupation
• Personality - Raymonds the complete man
• Self Concept (Ideal self concept) - the image
you want to create of yourself. You have a
handy budget, but instead of going for a family
car like Versa, you go for a Safari, because
thats what u imagine of yourself.
• Lifestyle - buying an aquaguard instead of a
regular water filter because thats what ur
lifestyle proposes you.
Social Factors that affect Consumer Behavior
• Family – how requirements of bachelors are

different from that of married people
– Family of Orientation
– Family of Procreation
• Friends, Relatives and Reference group
• Roles
• Status - Mont Blanc pens
Psychological Factors that affect Consumer
Behavior
• Motivation
• Learning - increases awareness, making
people more savvy
• Perception - Beetle car. it forces you to change
the perception of beauty and makes you see it
in a different perspective.
• Attitude
MASLOW’S NEED HEIRARCHY
7 O’s
• MODEL
Who is the target market. who • 1. Customer targets (occupants).
constitutes the market?
• 2. What customers buy (objects).

• What attracts the customer?
• 3. The purpose of the purchase

• Why does the consumer buy? (objectives).
• 4. Those involved in purchasing

• Who participates in the buying? decisions.
(Organization).
• Can consumers buy? • 5. The decision to buy (operations).
• When does the consumer buy? • 6. The opportunity to buy (occasions).
• Where does the consumer buy? • 7. Where to buy (outlets).

CUSTOMER BUYING BEHAVIOUR
Need Identification
Alternative Selection
Evaluate the alternative
Purchase Intention
Purchase Decision
Purchase
Post Purchase
NEED IDENTIFICATION
Marketers sell their services on the basis of how well they are
able to create identify the needs of the audience where there
were none before.
ALTERNATIVE SELECTION
Another important aspect that product should be readily
available. The product should be follow the concept of
•TOMA (top of the mind awareness)

•TIP OF THE TONGUE
EVALUATE THE ALTERNATIVE
(INTRODUCE THE X FACTOR)
Here comes the role of the marketer to highlight the X Factor and
differentiate the product from all other in the competition. This
can be factors such as:
• Product
• Attribute Price
• Promotion
• Services
PURCHASE INTENTION AND
PURCHASE DECISION
The time lag between purchase Intent and Purchase Decision is
called as Lead Time.
Marketers should focus on reducing the lead time. The
factors that affect the lead time :

• Attitude of things Unforeseen
• Circumstances:
Test Drives offered by the car companies.

PURCHASE DECISION
The marketers must ensure the that product availability at the time of purchase
POST PURCHASE DECISION
Firms often use ads or follow-up calls from salespeople in this post
purchase stage to try to convince buyers that they made the right
decision.
Post-Purchase Communication to Reduce Dissonance and
Improve Direct Marketing Effectiveness. Example: LG.
TYPES OF CONSUMER
BUYING BEHAVIOR
COMPLEX BUYING
BEHAVIOR
The complex buying behavior is associated with the products
which have
• Low frequency
• High Price
• Highlight the X factor by comparing it with the other
products
Marketers Strategy
Highlight the X Factor by comparing it with the other brands

DISSONANCE-
FADING BUYING
BEHAVIOUR
Dissonance-reducing
consumers are highly
buying behaviour occurs when
involved with an expensive, infrequent, or risky purchase, but see

little difference among brands.
Marketers Strategy
• Focus on the brand
• Maintain exclusivity
HABITUAL BUYING BEHAVIOUR
Consumers have little involvement in this product category—they
simply go to the store and reach for a brand.
Marketers can try to convert low-involvement products into
higher-involvement ones by linking them to some involving issue.
Marketers Strategy
• Distribution
• Display
• Bundle the
products
VARIETY SEEKING BEHAVIOUR
Consumers undertake variety-seeking buying behaviour in
situations characterized by low consumer involvement but
significant perceived brand differences.
For example, when buying cookies, a consumer may hold
some
beliefs, choose a cookie brand without much evaluation, then
evaluate that brand during consumption.
Marketers Strategy
Wide Range of products should be

available
THANK
YOU

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Customer is profit, all else is overload....

✓How is the market divided into separate sections or

Demographics of the interviewee:

• Family – how requirements of bachelors are

• 2. What customers buy (objects).

• 3. The purpose of the purchase

• 4. Those involved in purchasing

• Can consumers buy? • 5. The decision to buy (operations).

• When does the consumer buy? • 6. The opportunity to buy (occasions).

• Where does the consumer buy? • 7. Where to buy (outlets).

Evaluate the alternative

•TOMA (top of the mind awareness)

Marketers should focus on reducing the lead time. The

factors that affect the lead time :

Test Drives offered by the car companies.

Highlight the X Factor by comparing it with the other brands

involved with an expensive, infrequent, or risky purchase, but see

Wide Range of products should be

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