UG+Con+Beha+ppt+1

Consumer Behavior : 

Consumer Behavior Prof. B. Dutta Gupta How do we make buying decisions?

Consumer & Customer: 

Consumer & Customer Consumer An individual who buys products or services for personal use and not for manufacture or resale. Customer: anyone who regularly makes purchases from a store or a company.

Behavior: 

Behavior the aggregate of all the responses made by an organism in any situation a specific response of a certain organism to a specific stimulus or group of stimuli Behavior occurs either for the individual , or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use).

Consumer behavior: 

Consumer behavior Consumer behavior involves the use and disposal of products as well as the study of how they are purchased .

How can the study of consumers help marketers?: 

How can the study of consumers help marketers? The study of consumers helps marketers and organizations improve their marketing strategies by understanding issues such as: 1. The psychology of how consumers think, feel , reason, and select between different alternatives (e.g., brands, products); 2. The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); 3. The behavior of consumers while shopping or making other marketing decisions;

 Consumer Behavior: How do we make buying decisions?: 

Consumer Behavior : How do we make buying decisions? Consumer behavior theory prior to the Second World War was based on accepted economic theory of the "rational man" model of decision making. The central idea of economics is that people make decisions by weighing costs and benefits in a rational manner.

Examples of Consumer Behavior: Subscription to World-Class magazines!: 

Examples of Consumer Behavior: Subscription to World-Class magazines !

Subscribe to World-Class magazines!: 

Subscribe to World-Class magazines ! Web copy : One full year: Rs.2000 Print copy : One full year: Rs.4000 Web copy + Print copy: One full year: Rs.4000 Web copy : One full year: Rs.2000 Print copy : One full year: Rs.4000 Web copy + Print copy: One full year: Rs.4000 0% 40% 60%

Subscribe to World-Class magazines!: 

Subscribe to World-Class magazines ! Web copy : One full year: Rs.2000 Web copy + Print copy: One full year: Rs.4000 Web copy : One full year: Rs.2000 Web copy + Print copy: One full year: Rs.4000 60% 40%

Examples of Consumer Behavior : Holiday Plan: 

Examples of Consumer Behavior : Holiday Plan If you have a choice between: 1) an all-expenses paid trip to Paris, or 2) an all-expenses paid trip to Rome, or 3) trip to Rome where you have to pay for morning breakfast and lunch and dinner, which one will you take? Conclusion: Most consumers select Rome, when they have an alternative option for Rome and Paris when they have an alternative option for Paris.

Examples of Consumer Behavior :Insurance Plan: 

Examples of Consumer Behavior : Insurance Plan Which Option will you choose? Yearly subscription: Rs.5000 Monthly subscription: Rs.600. Monthly subscription Rs.5o0 ( Free Gift : FM Radio)

Whom will you date?: 

Whom will you date?

Process of consumer learning: 

Process of consumer learning Classical conditioning: Ivan Pavlov Obedience to authority: Milgram experiment Group conformity Gender conformity

Conditioning: 

Conditioning Pavlov’s experiment

Conditioning: 

Conditioning Pavlov used a metronome ( clock) to call the dogs to their food and, after a few repetitions, the dogs started to salivate in response to the metronome. Thus, a neutral stimulus (metronome) became a conditioned stimulus (CS) as a result of consistent pairing with the unconditioned stimulus (US - meat powder in this example). Pavlov referred to this learned relationship as a conditional reflex (now called conditioned response ).

Conditioning: 

Conditioning Stimulus-response theory , referred to as S-R theory, is a theoretical model of behavioral psychology that suggests humans and other animals can learn to associate a new stimulus — the conditioned stimulus (CS) — with a pre-existing stimulus — the unconditioned stimulus (US), and can think, feel or respond to the CS as if it were actually the US.

Consumer behavior: Classical Conditioning: Application in marketing: 

Consumer behavior: Classical Conditioning: Application in marketing Which one?

Consumer behavior: Classical Conditioning: 

Consumer behavior: Classical Conditioning

Consumer behavior: Classical Conditioning: 

Consumer behavior: Classical Conditioning

Consumer behavior: Classical Conditioning: 

Consumer behavior: Classical Conditioning

Consumer behavior: Classical Conditioning: 

Consumer behavior: Classical Conditioning

Consumer behavior: Classical Conditioning: 

Consumer behavior: Classical Conditioning

Consumer behavior: Classical Conditioning: 

Consumer behavior: Classical Conditioning

Classical conditioning: 

Classical conditioning In classical conditioning, a secondary stimulus is paired with a primary stimulus that already elicits a particular response. As a result of this pairing, an association is formed. Eventually the secondary stimulus will elicit the same reaction as the primary stimulus. An effective advertisement campaign may link a product to a stimulus that evokes a positive feeling.

Requirements for Utilizing Classical Conditioning in advertisement: 

Requirements for Utilizing Classical Conditioning in advertisement There should be no other stimuli that could overshadow the unconditional stimulus. Example: Overshadowing effect : In case of KFC, uncle Sanders ( 102 years old!) was not be related to any product other than fried chicken, by the consumers!

Requirements for Utilizing Classical Conditioning in advertisement: 

Requirements for Utilizing Classical Conditioning in advertisement There should be no other stimuli that could overshadow the unconditional stimulus. Example: Overshadowing effect : In case of KFC, uncle Sanders ( 102 years old!) was not be related to any product other than fried chicken, by the consumers!

Test yourself: Who is this clown character? Which company uses him as used as the primary mascot?: 

Test yourself: Who is this clown character? Which company uses him as used as the primary mascot? ?

Test Yourself: 

Test Yourself

Nose Hair Trimmer is perfect for men and women!: 

Nose Hair Trimmer is perfect for men and women!

Group conformity: 

Group conformity Asch conformity experiments Experiments led by Solomon Asch asked groups of students to participate in a "vision test." In reality, all but one of the participants were confederates of the experimenter, and the study was really about how the remaining student would react to the confederates' behavior. Result: The Asch Experiment shows how people are influenced by others in a group. They conform to what others do to a much larger extent than they think. perfectly normal human beings can be pressured into unusual behavior by authority figures, or by the consensus of opinion around them. Read more: http://www.experiment-resources.com/asch-experiment.html#ixzz0eA5xlmCR

Examples of Group conformity in marketing: 

Examples of Group conformity in marketing In a consumer decision-making situation where no objective standards are present, individuals who are exposed to an emphatic group norm will tend to conform to that norm. Examples: Facebook Orkut Twitter

Case study: Facebook Advertising : 

Case study: Facebook Advertising

Case study: Facebook Advertising : 

Case study: Facebook Advertising Over 12 months, CM Photographics generated nearly $40,000 in revenue directly from a $600 advertising investment on Facebook . Of the Facebook users who were directed to CM Photographics ’ website from the ads, 60% became qualified leads and actively expressed interest in more information.

Case study: Gender conformity: application in marketing: 

Case study: Gender conformity: application in marketing Marketing to Women on the Web Sixty-three percent of online shoppers are women. According to a Harris Interactive study, women control 75 percent of household finances and 80 percent of purchasing decisions. A recent report from The Strategis Group showed that women are now the dominant demographic on the Internet.

Reference: 

Reference Consumer Behaviour and Marketing Action Henry Asseal ( Chapter 4; Consumer learning)

Thank you: 

Thank you