This document discusses factors that influence consumer behavior, including cultural factors like culture and subculture, social factors like reference groups and family roles, personal factors like age and personality, psychological factors like motivation and perception, and how marketers must understand these to effectively target consumers. It provides definitions of consumer behavior and notes it is the study of how individuals and groups select, purchase, use, and dispose of products and services to satisfy needs and wants.
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Consumer Behaviour1
This document discusses factors that influence consumer behavior, including cultural factors like culture and subculture, social factors like reference groups and family roles, personal factors like age and personality, psychological factors like motivation and perception, and how marketers must understand these to effectively target consumers. It provides definitions of consumer behavior and notes it is the study of how individuals and groups select, purchase, use, and dispose of products and services to satisfy needs and wants.
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Consumer Behaviour
• Why do you buy a specific brand?
• What drives you to spend money? • Are you affected by choices of your friends and family? • Why did Kelloggs initially fail in India when it entered the market in 1994? • why did KFC had to launch veg burger in its menu? Definition • "Consumer behaviour is the study of the process involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires (Solomon et al, 2006). ” • Consumer behaviour is the study of how individuals, groups and organisations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants (Kotler and Keller, 2006). • Each consumer is unique and this uniqueness is reflected in the consumption behaviour, pattern and process of purchase. • What’ products and services do we buy, ‘why’ do we buy, “how often’ do we buy, from ‘where’ do we buy, ‘how’ we buy, etc., are the issues which are dealt within the discipline of consumer behaviour. Nature of Consumer Behaviour • It studies cognition, affect and behavior in consumption behavior against the backdrop of individual (personal and psychological) and environmental factors(culture and social) • It can be both on micro and macro level. • It is interdisciplinary in nature. It includes psychology, sociology, social psychology, economics and anthropology. • It is dynamic • It results in spread effect Factors affecting Consumer Behavior Cultural Factors 1. Culture • Culture is a set of values, roles, behaviours, traditions, customs and perceptions followed by a group of individuals. • It changes over time. • The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. Culture • Mc Donald's • Pizza toppings different in different countries • Fairness creams • KFC selling vegetarian • Salons in India offering discounts on Tuesday Culture Contd.. 2. Subculture Each culture consists of smaller subcultures. Each subculture provides more specific identification of members belong to it. Product and marketing programme should be prepared in light of subcultures to tailor their needs. 3. Social Class A social class is a group of people who have the same social, economic, or educational status in society Occupation and income generally define social class. To some degree, consumers in the same social class exhibit similar purchasing behavior. Eg different cars may appeal to same social class and vice versa Social Factors 1. Reference Groups Reference groups are groups (social groups, work groups, family, or close friends) a consumer identifies with and may want to join. They influence consumers’ attitudes and behavior. Eg. Celebrities endorsing products • Reference groups also include opinion leader (a person who influences other because of his special skill, knowledge or other characteristics). 2. Family Most market researchers consider a person’s family to be one of the most important influences on their buying behavior. Companies are interested in which family members have the most influence over certain purchases. 3. Role and status • Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs • Roles keep changing over time. Eg women are no longer confine to the kitchen leading to blended roles of men and women in society. Personal Factors 1. Age and life cycle • Age and life-cycle have potential impact on the consumer buying behavior. • Consumers change the purchase of goods and services with the passage of time. 2. Occupation • The occupation of a person has significant impact on his buying behavior. • For example a marketing manager of an organization will try to purchase business suits, whereas a low level worker in the same organization will purchase rugged work clothes. 3. Lifestyle • Lifestyle is an attitude, and a way in which an individual stay in the society. • The buying behavior is highly influenced by the lifestyle of a consumer. For example when a consumer leads a healthy lifestyle, then the products he buys will relate to healthy alternatives to junk food. 4. Economic Situation • When there is an increase in disposable income, it leads to higher expenditure on various items. But when the disposable income reduces, parallelly the spending on multiple items also reduced. 5. Personality • Personality is a distinguished set of physical and psychotically characteristics that lead to relatively consistent and enduring response to one’s environment. • Personality characteristics, such as individualism, difference, self- confidence, courage, firmness, sociability, mental balance, patience, etc., have a strong influence on needs and preferences Psychological Factors 1. Motivation • Every person has different needs such as physiological needs, biological needs, social needs etc. • A person has many needs such as the social needs, basic needs, security needs, esteem needs and self-actualization needs. • Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction. 2. Learning • When a person buys a product, he/she gets to learn something more about the product. • In conditional learning the consumer is exposed to a situation repeatedly, thereby making a consumer to develop a response towards it. • Whereas in cognitive learning, the consumer will apply his knowledge and skills to find satisfaction and a solution from the product that he buys. 3. Attitudes and Beliefs • Consumers have certain attitude and beliefs which influence the buying decisions of a consumer. • Based on this attitude, the consumer behaves in a particular way towards a product. 4. Perception • Perception is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the wrold. • Marketing challenges • Selective attention (what customers notice) • Selective distortion (how they interpret) • Selective retention (what they remember) Perception • Marketing goals in the perceptual process • Selective attention – get attention • Selective distortion- pass meaning • Selective retention – get in memory