Consumer Behavior Concepts and their Application

1. Consumer Behaviour
- Falguni Singh (02)

2. Firm’s Marketing
Effort
Socio-cultural
Environment
•Need Recognition
•Pre-purchase search
•Evaluation of
alternatives
Experience
Purchase
Post Purchase Evaluation
Input
Process
Output
External
Influences
Consumer
Decision
Making
Post
Decision
Behaviour
Psychological
Factors
Consumer Decision Making Model

3. Socio – Cultural Environment
1. Reference Group
– Friends Group
– Work Group
– Brand Community
2. Family Life Cycle
– Bachelorhood
– Honeymooner
– Parenthood
– Post-parenthood
– Dissolution

4. Socio Cultural Environment
Reference group  Brand Community
“ A brand community is defined as a specialized,
non – geographically bound community, based
on a structured set of social relationships
among admirers of the brand”
Example : http://www.hotwheelscollectors.com/

5. Socio Cultural Environment
• Marketers believe in order to build up loyalty,
product must have an active social life.
• Sometimes marketers design a specific product or
service to create a sense of community or take
advantage of pre-existing relationship.
• Example 
• Example :
http://www.youtube.com/watch?v=FlPSqoBwkaE
• Agency : Grey Worldwide

6. Socio Cultural Environment
Family Life Cycle  Honeymooners
• Stage (II) starts right after marriage and lasts until
first child is born.
• Availability of combined income  allowing
indulgent purchasing of possessions.
• Start-up expenses in establishing new home.
• Example
http://www.youtube.com/watch?v=eLDBFoVQ5SI
• Ad Agency - DDB Mudra

7. Socio Cultural Environment
Family Life Cycle  Parenthood
• Stage (III) starts when a couple has its first child.
• Stages lasts for long duration (20 years ).
• Children becomes focus of their lives, child-rearing
and educational responsibility gains priority.
• Example:
http://www.youtube.com/watch?v=GJlvT-Dmh24&list=PL502D27EB8B72940B
• Ad Agency - Ogilvy & Mathers

8. Consumer Decision Making Model
Firm’s Marketing
Effort
Socio-cultural
Environment
•Need Recognition
•Pre-purchase search
•Evaluation of
alternatives
Psychological
Factors
Experience
Purchase
Post Purchase Evaluation
Input
Process
Output
External
Influences
Consumer
Decision
Making
Post
Decision
Behaviour

9. Psychological Factors
• Motivation
– Maslow’s hierarchy of needs
• Self Actualization
• Egoistic Needs
• Social Needs
• Safety and Security Needs
• Physiological Needs
• Perception
• Learning
– Classical Conditioning
• Personality
– Consumer innovativeness and related personality traits
– Product personality and geography
– Personality and color
• Attitudes

10. Psychological Factors
Motivation  Maslow hierarchy of needs  Safety Needs
• These needs are concerned not only with physical safety but
also include order, stability, familiarity, health. Health and
availability of health care are important safety concern.
Example : http://www.youtube.com/watch?v=tVNQDMseXTM
Agency : Trinton Communications

11. Psychological Factors
Motivation  Maslow hierarchy of needs  Social Needs
• This level includes needs such as love, affection, sense of
belongingness, acceptance.
• People seek warm and satisfying human relationship with
other people.
Example : http://www.youtube.com/watch?v=R8vwm3UFt78
Agency : McCann Erickson

12. Psychological Factors
Motivation  Maslow hierarchy of needs  Egoistic Needs
• These needs can take either an inward or an outward
orientation.
• Inward orientation involves individual’s need for self
acceptance, self esteem, success, personal satisfaction.
Example : http://www.youtube.com/watch?v=8u0x8TWrIi8
Agency : Lowe Lintas

13. Psychological Factors
Learning  Behavioral learning theory  Classical
Conditioning
• An analogous to Pavlov’s experiment would be…
Example : http://www.dettol.co.in/solutionsfinder.html
(US) X : Antiseptic , doctors
recommend. Unconditioned Response
(CS) X1, X2, X3
(CS) X1, X2, X3 Conditioned Response

14. Psychological Factors
Personality  Consumer innovativeness  Dogmatism
• Dogmatism is a personality trait that measures the degree of
rigidity versus openness.
• High dogmatic consumers are more likely to choose
established, rather than innovative products. Low dogmatic
are more likely to prefer innovative products.
• For high dogmatic consumers marketers use
celebrities/experts in new product advertising .
Example http://www.youtube.com/watch?v=7a9K59G0Z0g

15. Psychological Factors
Personality  Product personality and geography
• For certain products consumers possess strong geographical
association (eg: Technology).
• Manufacturer creates a geographical personality for the
product to add to the product’s brand equity.
Example http://www.youtube.com/watch?v=5Nwi8x7fyuI
Agency : Ogilvy & Mathers

16. Psychological Factors
Personality  Product and Color
• Consumer not only ascribe personality traits to products and
services but also tend to associate personality factors with
specific colors.
• Blue = Commands respect, Green = Natural, Red = Hot and
exciting, Black = Sophistication, mystery.
Example http://www.youtube.com/watch?v=Imf5kQ7c_Nc
Agency : Chapter five

17. • Reference :
– Schiffman and Kanuk, Consumer Behavior (Pearson
Prentice Hill, 2007)
– www.afaqs.com
– www.youtube.com
– www. dettol.co.in
– www.hotwheelscollectors.com

18. Thank You