THE STUDY OF CONSUMER

BEHAVIOUR….

..is the study of how individuals

make decisions to spend their
available resources (time, money,
efforts) on consumption –related
items.
The Study of Consumer Behaviour….

It includes the study of –

what they buy?
why they buy it?
when they buy it?
where they buy it?
how often they buy it?
how often they use it?
7 O Frame-Work to study Consumer Behaviour

1. Occupants – Who are they?

2. Objects – What do they buy?
3. Objective – Why do they buy so?
4. Organisations – Who are the organized buyers?
5. Operations – How do they operate?
6. Outlets – From where do they buy?
7. Occasions – When do they buy more?
Point to Ponder

Customer
and
Consumer
Development of ‘Marketing Concept’

 Marketing Concept- late…1950

 Production Concept
 Product Concept
 Selling Concept
Marketing Approaches…
..after World War-II

 Production Oriented Marketing Approach

 Consumer will buy , what is available
 Product Oriented Marketing Approach
 Consumer needs, ignored and focus on Product
Supremacy
 Selling Oriented Marketing Approach
 Primary focus on selling
 Consumer Oriented Marketing Approach
 Marketing Concept
Discussion…

How can the study of consumer

behaviour assist marketing in
SEGMENTING and
POSITIONING products?
Consumer Research
Consumer Research provides the basis for the
development of new product and service concepts
to meet targeted consumer needs. It also enables
the marketer to build consumer meaning into the
product by discovering which attributes are most
important to the target market and integrating them
into the product design.
Consumer Research..
 Positivism

 Interpretivism
Consumer Research..
 Purpose
 Positivism: Prediction of consumer actions
 Interpretivism : Understanding consumer practices

 Methodology
 Positivism: Quantitative
 Intrepretivism: Qualitative
Consumer Research
 Assumptions
 Positivism
 Rationality
 Causes and effects of behaviour can be identified and
isolated
 A single reality exists
 Events can be objectively measured
 Causes of behaviour can be identified
 Findings can be generated to larger populations
Consumer Research
 Assumptions
 Intrepretivism
 There is no single objective, truth
 Reality is subjective
 Causes and effects can not be isolated
 Each consumption experience is unique
 Researcher /respondents interactions affect research
findings
 Findings are often not generalized to the larger populations
The Research Process
 Problem Formulation
 Evaluate Cost/value of Research
 Method of Inquiry
 Research Method
 Research design
 Select Data Collection Techniques
 Sample Design
 Data Collection
 Analysis and Interpretation of Data
 Research Report
 The Consumer Research Process
Develop Objectives
Collect secondary data

Design qualitative research

Design qualitative research
Method Method
Questionnaire Sample Design
Discussion Guide Data Collection Instrument

Conduct Research
Exploratory
Collect Primary Data
Analyze data research
(subjective) Analyze data
(objective)

Prepare Report Prepare Report

 Examples of Management and Research Problems

 Allocate advertising budget

 Estimate awareness generated by each media type

 Decide whether to keep office open on Saturday

 Evaluate use of services on Saturday and determine if customers
can do these on weekdays

 Introduce new health service

 Design a concept “test” through which likely acceptance and use
can be assessed

 Increase the sales of the product

 Measure current image of the product
Research Design
 Research Design is the specification of methods
and procedures for acquiring the information
needed to structure or to solve problems.
 It is the overall operational pattern or framework of
the project that stipulates what information is to be
collected, from which sources, and by what
procedures.
Qualitative Research Designs
 Depth Interviews
 ….is a lengthy (generally 30 minutes to an hour)

 Focus Groups
 ….consists of eight to ten respondents who meet with a
moderator/analyst for a group discussion “focused” on a particular
product or category

 Projective Techniques
 ….are designed to tap the underlying motives of individuals despite
their unconscious rationalizations or effort at conscious
concealment.
Quantitative Research Design
 Data Collection Methods
 Observational Research
 Experimentation
 Surveys

 Data Collection Instruments

 Questionnaires
 Defined Tables
 Recordings
Exercise
 Select any company of your choice

 Identify one management/business problem and

define a research problem.

 Prepare a blue-print to conduct a consumer

research (research methodology)
Consumer
Behaviour…..influences
(factors influence consumer buying
behaviour)
CULTURAL INFLUENCES
 Complex sum total of
knowledge, belief,traditions,
customs,art, morals,law &
any other habits acquired by
people as members of
society.
 e.g., Investing in
savings scheme
towards daughter’s
marriage.
SUB-CULTURAL DIFFERENCES
 Many groups with distinct customs,
traditions & behaviour within a
given culture.
 e.g., Different dressing
sense, food habits , religious
traditions of Tamil Brahmins
vs. Bengali Brahmins.
 e.g., Adaptation by Sumeet

food processors & spice

marketers.
SOCIAL CLASS INFLUENCES
 A group consisting of a
number of people who share
more or less equal position in
a society i.e. same values,
beliefs and similar behaviour.
 e.g., Similar choice of
residence,type of
holiday,means of
entertainment and
leisure.
 SOCIAL GROUP

PRIMARY GROUP
SECONDARY GROUP
e.g., family ,
i.e.More formalized groups
work groups &
like club memberships
study groups
FAMILY INFLUENCES
 First & strongest influence
on the child.
 On purchase decisions
various members exert
different degree of
influence.
 Changing structure of
joint families to
nuclear families.
PERSONAL INFLUENCES

 While buying a mobike ,

different parameters may
appeal to different people
e.g.,
 Price
 Fuel efficiency
 Convenience
 Style etc.
OTHER INFLUENCES

 Product display

 Price reduction offers

 Free gift schemes &

such temptations.
LIFESTYLE MARKETING
 It involves segmenting the market
on the basis of lifestyle
 Then, positioning the product in a
way that appeals to the activities
,interests,opinions of the target
market and
 Then undertaking specific
promotional campaigns which
exploit lifestyle appeals to enhance
the market value of the offered
product.
PSYCHOGRAPHICS STUDY

Study of various relevant

aspects of consumers like:
 Personality
 Buying motives
 Interests
 Attitude
 Beliefs and
 Values
POINT TO PONDER…
People hailing from
same demographic
profile(sub-culture,
social class and even
occupation) may
follow quite different
lifestyles.
CHARACTERISTICS OF LIFESTYLE

 Lifestyle is a group phenomenon.

 Lifestyle pervades various aspects

of life.

 Lifestyle implies a central life

interest.

 Lifestyles vary according to

sociologically relevant variables.
STUDYING LIFESTYLE VARIABLES

AIO Studies:
 It considers a wide variety of

variables like activities,

interests, opinions and
demographic variables like
 Age

 Income

 Occupation

 Family size etc.

PATHFINDERS’ STUDY OF WOMAN IN INDIA

 The gregarious hedonist(karina )

 The contemporary housewife(wheel or harpick)
 The affluent sophisticate(job working gal)
 The tight-fisted traditionalist (traditonal women)
 The troubled homebody(mom)
 The anxious rebel (opinion waleeee n kranti lane
walee aurat)))
 The contented conservative(rural pallu wali
aurat)
VALS SYSTEM OF CLASSIFICATION

Values & lifestyle

classification weaves
together:
 Demographics

 Attitudes

 Activities

 Consumption patterns

 Brand preferences

 Media graphics
4 MAJOR GROUPS BY VALS
Survivors & sustainers:
 Poor & uneducated.
 Purchase motivation is price dominan
 Not knowledgeable shoppers.
 Motivated by brand names, guarantee
and are generally impulse buyers.
4 MAJOR GROUPS BY VALS
Middle or Upper income class
consumers:
1. Their life is governed by external
criteria.
2. They go for proven popularity of
products.
3. Brand loyal & careful shoppers.
4. Emulators buy products to impress
others & use product to announce
status.
5. Achievers buy hi-tech items & want
original ,top of line products.
4 MAJOR GROUPS BY VALS
Inner-directed people:
 I-AM-ME’s go after fads & do not

mind being avant-garde.

 Buy products for sake of

experimenting.
 Get tremendous amount of satisfaction

from purchase process itself.

 Wants value for money

 Simple,frugal person who seeks

information and reads labels carefully.

4 MAJOR GROUPS BY VALS

 Integrated individuals:
 People who have been able to combine
the best of above 2 categories i.e.
inner- directed & outer-directed values.

 Fully matured psychologically.

VALS CAN BE USED TO

 Identify target market characteristics

& usage.
 Guide strategic and executional
approaches.
 Identify key media for target groups.
 Guide merchandising efforts.
MOST STRIKING USE OF VALS
 Positioning.
 Repositioning of existing products.
 Developing new product concepts.
 Creating new product opportunities in
specific field.
 POSITIONING OF NEW PRODUCTS

 Finding the most profitable niche

for a new product in terms of target
market.
 How old are the consumers?
 Where they live?
 What socioeconomic group they
belong?
 What products are they likely to
buy?
 What are their interests & opinions?
CLASSIFICATION OF
ORGANIZATIONAL CUSTOMERS

 Industrial / All manufacturing

organizations.
 Institutional customers : like
Universities, Hospitals, Hotels,
Distribution firms
 Government customers:
CPWD,DGS&D,Defence and so an.
 Raw Material Extraction

Material processing

Manufacturing of parts & assembly

Final assembly

Distribution

CHAIN INDICATIVE OF ZONE OF

ORGANIZATIONAL CUSTOMER
 MAJOR INFLUENCES IN ORGANIZATIONAL
BUYING BEHAVIOUR

Environmental factors:
1. Economic
2. Infrastructural
3. Social
4. Political
5. Competition
6. Regulation
MAJOR INFLUENCES IN ORGANIZATIONAL
BUYING BEHAVIOUR

Organizational factors:
1. Objectives
2. Policies
3. Procedure
4. Organizational structure
5. System
 MAJOR INFLUENCES IN ORGANIZATIONAL
BUYING BEHAVIOUR

Interpersonal factors:
1. Authority
2. Status
3. Empathy
4. Persuasiveness
MAJOR INFLUENCES IN ORGANIZATIONAL
BUYING BEHAVIOUR

Individual factors:
1. Age
2. Income
3. Education
4. Job position
5. Risk attitude
BRAND BELIEFS
 During information search
,consumers come to know
about different claims and
standings of brand i.e.

brand image
or salient attributes.

 The brand image helps

consumer in believing which
brand is more likely to have a
particular attribute.
Consumer Behaviour Chapter-7 48
AIDA MODEL OF CONSUMER
BEHAVIOUR
 Awareness

 Interest

 Desire

 Action

Consumer Behaviour Chapter-8 49

CAD MODEL

50 An acronym for Compliance,

Aggression & Detachment.
 Compliant individuals are essentially
conformists. They prefer known
products & brands.
 Aggressive individuals tend to move
against others. They prefer specific
brands out of a desire to be noticed.
 Detached individuals tend to move
away from others. They appear to be
least aware of brands.

Consumer Behaviour Chapter-9

TRAIT & FACTOR THEORY

51
Trait theory attempts to describe people
in terms of their predispositions on a
series of 16 adjectives.

 Researcher use these trait inventories to

investigate the personality profiles of
groups of consumers of competing
brands.

Consumer Behaviour Chapter-9

SELF CONCEPT THEORY
52  Self concept describes what an individual
subjectively believes him or herself to be.

 This is most apparent in clothing, fashions,

home furnishings etc., all of which are easily
recognized as symbols of self-image.

Consumer Behaviour Chapter-9

PSYCHOGRAPHICS

53
Psychographics describes people in
terms of their:
 Day to day activities
 Interest
 Opinions
 Personalities
 Personal value

Consumer Behaviour Chapter-9

TYPES OF LEARNING
 Imitation of others: Brand loyalty is
thus transmitted from parents to
children.

 Operant conditioning: Consumption

behaviour that receives praise is likely
to be repeated while actions that are
ridiculed are less likely to be
repeated.
PURCHASE ROLES WITHIN THE
FAMILY
 The initiator
 The influencer
 The decider
 The purchaser
 The consumer
FAMILY DECISION STAGES
 Problem recognition

 Search for information

 Evaluation of alternatives

 Final decision

 Purchase
ELEMENTS OF POWER WITHIN
THE FAMILY
 Economic resources

 Cultural norms

 Expert power

 Legitimate power

 Bargaining power

 Reward power

 Emotional power
THE INFLUENCE OF CHILDREN
 Child centeredness of mothers

 Older children participate more

directly in the decision process
and take up roles of initiators &
influencers.
FAMILY LIFE CYCLE STAGES
 The bachelor stage:
 Relatively high discretionary incomes.
 Spend substantial amounts on personal
consumption items.
 Food consumption-Wide variety.
 Overall, more individuality in
purchasing.
NEWLY MARRIED COUPLE(NO
CHILDREN)
 Household requirements increase.

 Purchase of durable goods take

priority over other purchases.
YOUNG,MARRIED WITH CHILD
 Baby furniture, toys, chest
rubs, vitamins , baby food &
medicines.

 Dissatisfaction with income and

savings starts.
OLDER , MARRIED WITH
CHILDREN
 The family’s financial
position starts to improve
because of career progress
& also because many
wives return to work.

 Active market for food

products, bicycles,
magazines & educational
services as children are
growing up.
OLDER, MARRIED WITH
DEPENDENT CHILDREN
 Income is high for the
family at this stage.

 Experienced buyers &

less interested in new
product purchases.

 Expenditures continues
to be high due to
replacement buying.
OLDER WITH NO CHILDREN
LIVING TOGETHER
 Financial position stabilizes.
 Savings accumulate.
 Resurgence in self-education.
 More is spent on luxury
appliances,magazines & health
products.
 Major expenditures are on home
ownership, home improvements
and medical care.
SOLITARY SURVIVOR

 Older, single , retired people.

 More economical lifestyle.
 Lower income due to
retirement may be a restrictive
factor.
 Health care & other services
become important.
SOCIAL CLASS
 Relatively permanent and
homogenous divisions or strata
in society which differ in their:
1. Status
2. Wealth
3. Education
4. Possessions
5. Values ,Beliefs & Attitudes
6. Friendship
7. Manner of speaking
WARNER’S CLASSIFICATION
 Warner’s index uses 4
variables as indicators of
social class.
1. Occupation
2. Income
3. House
4. Dwelling area
WARNER’S CATEGORIZATION
 Upper-upper social class: Wealthy ,
aristocratic but not a major market
segment because of its’ small size.

 Lower-upper social class:Newer

social elite.Includes successful
professionals, wealthy executives,
doctors, lawyers & founders of
large businesses. It constitutes a
major market for specialized luxury
goods,
WARNER’S
CATEGORIZATION( contd.)
 Upper-middle class:Housing is
important to this class & also the
appearance of products in general.

 Lower-middle class: Highly paid

individual worker ; small business
owners & non-managerial
workers.

 The working class:Largest of the

social classes & is composed of
skilled /semiskilled workers.
BUYING BEHAVIOUR
 People’s buying behaviour is
strongly influenced by the social
class to which they belong/ aspire
to belong rather than by income
alone.

 Class difference in status are

commonly symbolized by food,
housing,furnishings etc.
LIFE STYLE ORIENTATION &
PURCHASING TENDENCIES OF
DIFFERENT SOCIAL CLASS

SOCIA LIFE-STYLE PURCHASING

L ORIENTATION TENDENCIES
CLASS
Upper Good taste Quality merchandise
class Graceful living Expensive hobby &
Good things in life recreational equipment
Individual expression Art
Interest in arts & Books
culture Travel
LIFE STYLE ORIENTATION &
PURCHASING TENDENCIES OF
DIFFERENT SOCIAL CLASS
SOCIAL LIFE-STYLE PURCHASING
CLASS ORIENTATION TENDENCIES
Middle Respectability Items in fashion
class Conformity Items related to self-
Propriety presentation
Social esteem Nice clothing
Nice
neighborhood/home
Items for children
LIFE STYLE ORIENTATION &
PURCHASING TENDENCIES OF
DIFFERENT SOCIAL CLASS
SOCIAL LIFE-STYLE PURCHASING
CLASS ORIENTATION TENDENCIES
Working Fun oriented Newest appliances
class Parochial Sporting events
Unsophisticated taste Newest & biggest
Focus on possessions items.
LIFE STYLE ORIENTATION &
PURCHASING TENDENCIES OF
DIFFERENT SOCIAL CLASS
SOCIAL LIFE-STYLE PURCHASING
CLASS ORIENTATION TENDENCIES
Lower Close family Status symbols
class relationship Products enhancing
Not interested in self esteem
world affairs Pseudo-symbols of
Neighborhood prosperity such as used
oriented scooters
Immediate Readily available
gratification products