Scope Of Consumer Behavior 611h39

Scope of Consumer Behavior The scope of consumer behavior includes not only the actual buyer and his act of buying but also the various roles played by different individuals and the influence they exert on the final purchase decisions. To define the scope of CB it is important to Click to edit Master subtitle stylemain sections, divide the framework in three The decision process vThe consumer determinants vThe external environment. v

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Framework of Consumer Behavior

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Elements of Consumer Behavior v CB involves both individual (psychological) processes & group (Social) processes. v CB is reflected from awareness right through

from post purchase evaluation indicating satisfaction or non satisfaction from purchases. v Consumer behavior includes communication,

purchasing & consumption behavior. v CB is basically social in nature so social behavior

plays a great role in shaping buyer behavior. v CB includes both consumer & business buyer

behavior.

v CB is dynamic because the thinking, feelings &

actions of individual consumers are constantly 7/13/12 changing.

Buyers and s The person who buys a particular product may not necessarily be the , or the only of this product. Likewise, it is also true that the person who purchases  Selected Consumer Behavior Roles the product may not be the decision-maker. Initiat or Gateke eper Influe ncer Deci der Bu ye rUse r(s)

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R ol e

Descript ion

The initiator is the individual who ascertains need or want is not being satisfied and that some purchase authorisestoa correct the situation. Influences the family’s information

gatekeeper the most expertise in processing. The evaluating the has obtaining and information. The influencer is someone who intentionally or by word or action, influences the purchase otherwise, purchase and/or the use of product or decision, actual service. The cider is the person or persons who actually which product or service will be de decides chosen. Buyer is any individual who actually makes purchase the final transaction. is a person most directly involved in consumptio the use or n of

the purchased product

Consumer Behavior Applications in Marketing v

Analyzing market opportunity

v

Selecting target market

v

Marketing- mix decisions

v

Product

v

Price

v

Promotion

v

Distribution

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Disciplines Involved in the Study of Consumer Behavior  Consumer behavior was a relatively new field of study during the second half of the 1960s without a history or research of its own. It is in fact a subset of human behavior and it is often difficult to draw a distinct line between consumer-related behavior and other aspects of human behavior. The discipline of consumer behavior has borrowed heavily from concepts developed in other disciplines of study such

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Development of Consumer Behavior Field For a variety of reasons, the study

of consumer behavior has developed as an important and separate branch in marketing discipline. Scholars of marketing had observed that consumers did not always behave as suggested by economic theory.

These findings led to the development of

market segmentation concept, which required dividing the total heterogeneous but potential market into relatively smaller homogenous groups or segments for which they could 7/13/12

CONSUMER RESEARCH  Consumer research is a methodology used to

study consumer behavior. Consumer research is an integral part of marketing research & makes use of set of methods to explore & predict consumer behavior to identify their needs & preferences act.

The information collected helps developing products & services and other marketing mix activities to influence consumer behavior. Today consumer research has emerged as an extension & of marketing research which is used on exploring consumer behavior. by knowing the consumer decision making process, marketing strategies and promotional messages could be designed to influence the consumer in the direct 7/13/12

Importance of Consumer Research Helps in the Prediction of Consumer Behavior

Focuses on the Consumption pattern of Consumers. Provides useful informations in taking various

Marketing Decisions. Determining Demographics of existing & potential

s.

Identifying customer needs * product expectations

levels.

Identifying Factors influencing purchase decisions. The current consumer trend in the market. Knowledge about the loyal, potential,& future

consumers. 7/13/12

Consumer Research Process CR objectives Secondary data collection Sufficient ye insight s no

Prepare report

Design primary research

Qualitative research Conduct Research Analyze data Prepare 7/13/12

report

Explora tory researc h

Quantitative research Collect primary data Analyze data Prepare repsrt

Types of Research Designs Qualitative Vs. Quantitative Research :-

Quantitative research deals mostly with numerical information & includes the methods for data collection, the data collection instruments and the sample designs.

Qualitative research deals with less tangible data such as customer opinions. this techniques are related to psychoanalytical and clinical aspects of psychology.

Internal Vs. External Research:-

The information available within an organization is called internal data. like sales reports, distribution & production records, customer database ect.

External data is information collected by outside bodies like Census survey, MR bodies like NCAER,IMRB etc.external data may be secondary & primary

Primary Vs. Secondary Research:Any data originally generated for some purpose other than the present research objective is secondary information. it is usually 7/13/12 collected by third party.

Methods of Research Designs Qualitative Quantitative Research Design

Research Design  Depth Interviews

Observation

 Focus/ discussion groups  Consumer Suggestions  Projective techniques

Telephonic)

Experimentation Surveys (mail, interview,

Word Association Test Thematic Apperception Test Sentence Completion Test The third Person Technique Role Plays Cartoon Test 7/13/12

Questionnaire