Chapter 1 - Understanding Consumer Behaviour (1) - Copy.ppt

consumer behavior is very important in management and marketing

1. Chapter 1

2. •Initially consumer behavior was thought to be
related to only how consumers buy the products.
•Thus it was usually called the buyer behavior.
•The definition itself is adequate but incomplete.

3. First we need to understand who is
the consumer?
1-3

4. A consumeris a person who buys the
product or service but also uses and
dispose of the product.
The consumeris the last member of any
supply chain or marketing chain of any
organization, referred as “end
consumers”.
Those people for whom the product or service
is manufactured and marketed.

5. Types of Consumers
•There are basically two types of
consumers:
1.Individual Consumers
2.Organizational Consumers

6. Individual Consumers
•Individual consumers are basically the end
consumers, who purchases goods and
services to satisfy their own needs/ wants.
•It can be single person who is the
breadwinner of the family.
–E.g. someone who pays the bills for electricity,
petrol, grocery, etc.
1-6

7. •Individual consumers can be from all ages,
lifestyle and social back grounds.

8. Organizational Consumer
•Organizational consumers are also called
customers.
•They purchase the goods and services
from other organization to produce/
manufacture their own final product/
service.

9. •There are many examples of the
companies, depending upon the business
type:
–Dell
–Lays
–Starbucks
–Toyota , etc.

10. •DellusesIntel
processors in their
laptops.
•Where Intelitself is an
other company.

11. •Starbucksis an
international coffee brand.
•They purchases coffee
beans, brewing
equipment, paper cups,
etc; from their suppliers.
•Uses them to produce
their final product Coffee
and deliver it to their
consumers.

12. •Other than this there are certain things
which helps the organizations runs their
business smoothly.
•Companies buys these things from their
sellers, e.g.
–office equipment,
–Uniforms of employs,
–Machinery,
–Equipment, etc.

13. Q: Now the question arises on what basis
the consumers
•Purchase
•Use
•Dispose off the products and services?
1-13
First we need to
answer why
consumer purchases
the products?

14. Consumer Behavior
•Consumer behavior is related to all the
activities of how the consumers purchase,
use and dispose of the products and
services, including their mental, behavioral
and emotional responses.

16. Consumer Activities
•It becomes easy for the marketer to
categorize consumer behavior on the
basis of their activities.
•Then they can easily market their product/
service.

17. Purchase Activities
•The activity through which the consumer acquire
goods and services is called purchase activity.
•It also includes all the activities before
purchasing the goods and services.
•For example, searching information and
evaluating alternations for the products and
services.

18. •Additional services related to the products
also influences the purchase decisions.
•For example,
–After sales services
–Warranty
–Amount of time
–Atmosphere of the place of shopping

19. Usage Activities
•The activity which includes when, where and how the
consumption takes places.
•Consumption can takes place in different ways
according to consumer needs and wants.

20. 1.Do the consumer use the product
immediately after the purchase?
–E.g. ice cream, haircut, salon visit, etc.
2.Do the consumers delay the consumption?
–E.g. clothes, grocery products, etc.
3.Is the product completely used before
disposal?
–E.g. movie ticket, battery cells, chips (any
eatable), etc.

21. Disposal Activities
•The activity include
how the consumers
gets rid of the products
and services is called
disposal activity.

22. •For example, reusing or recycling products
–E.g. if online order is received in a carton,
consumers can also use that carton for further
use according to the need.
•Consumers can also give away the
products in charity.
•Disposal activities differs from consumer
to consumer.

23. Consumer Responses
•There are three types of consumer
responses towards the products and
services, which influences the consumer
behavior.
1.Behavioral Response
2.Mental Response
3.Emotional Response

24. Behavioral Response
•If you want to purchase on regular basis
your response towards the products and
services will be behavioral response.
•It is called consumer’s daily plain
decision, which are mostly habitual.

25. •This type of decision can also be
influenced by recommendation by friends
and family.
•For example:
–Recharge card
–Electricity bills
–Petrol/ gasoline
–Grocery
–Mortgage loans, etc.

26. Copyright © 2009 Pearson Education Asia
Pte.
1-26

27. Mental Response
•If you want to purchase something big,
you will give put an effort and use your
thought process to purchase that product
and service.
•This repose towards the products and
services is called mental response from a
consumer.

28. •It is also called cognitive response because it is a
part of consumer thought process.
–Thinking thoughtfully before making buying
something.
•For example:
–Car
–Home
–Laptop
–Cosmetics
–Home appliances
–Furniture
–Or even getting an admission into universities, etc

29. Copyright © 2009 Pearson Education Asia
Pte.
1-29

30. Copyright © 2009 Pearson Education Asia
Pte.
1-30

31. Emotional Response
•Everything you purchase impulsively is
the result of emotional response of
consumer behavior, towards that products
and service.
•It is also called affective response, which
is related to our feelings and moods.

32. •For example:
–When buying a new mobile, consumer feels
excitement and uncertainty
–Watching an advertisement and buying that
product instantly
–While on shopping, buying clothes more than
your need
–Visiting restaurants with friends/ family for
special deals, etc

33. Copyright © 2009 Pearson Education Asia
Pte.
1-33