introduction to consumer behavior, segmentation, consumer and marketing strategy, psychographic dimensions of consumer; motivation, perception, personality, attitude formation and change

1. Presented by
Dr. D VARALAKSHMI
B.Tech,MBA, Ph.D
Lecturer in Management
JNTUA

2. Consumer Behavior
Buying Motives
Influences on the Consumer
Decision Making
Segmentation

3. Who buys
When do they buy
Why do they buy
How do they buy
Where do they buy

4.  People make product decisions every day.
 Marketers spend millions of dollars to uncover
the reasons behind these decisions.
Successful marketers consider:
 What makes or forces or influences customers to
buy?
 How, Where, When & Why they make those
choices.
Consumer Behavior: The study of consumers and how
they make buying decisions.
Why Do People Buy Products?
• To satisfy their individual wants and needs.
•To enjoy the benefits that products offer.

5. 1. Physical – food, sleep, water, shelter, air
2. Psychological (mental):
• Security (physical safety & economic security)
• Social ( friends, love, belonging)
• Esteem (respect and recognition)
3. Emotional – feelings (pleasure, excitement)
4. Rational – facts (convenience, performance)
5. Patronage – loyalty to a product or business

6. 1. Geographic – dividing consumers into markets
based on where they live.
2. Demographic – age, gender, race, income, and
educational level; measurable statistics.
3. Psychographics – peoples’ social class, lifestyles &
personalities (Baby Boomer, active, etc).
4. Product Usage – how consumers use the product
and how often .
5. Benefits Derived – value or satisfaction consumers
receive from a product.

8. A market/ consumer population for a
product can be segmented using several
relevant bases. The major ones include:
• Geographic
• Demographics
• Socio-cultural
• Psychographic
• Buying Behavior

9.  market segmentation and market coverage
strategy whereby a product is developed and
marketed for a very well-defined, specific segment
of the consumer population.
 Target marketing is particularly effective for small
companies with limited resources because it
enables the company to achieve a strong market
position in the specific market segment it serves
without mass production, mass distribution, or
mass advertising. It enables firms to capitalize on
the respective serve market share

10. Identifiable
Accessible
Measurable
Substantial
Unique needs
durable

11. Market Segmentation is the sub-dividing of
customers into homogenous sub-set of
customers where any sub-set may
conceivably selected as market target to
be reached with distinct Marketing Mix .

13.  Understanding the consumer behaviour is the basic for marketing strategy
formulation.
 Consumers reaction to this strategy determines the organization success or
failure.
 In this competitive environment, Organisations can survive only by offering
more customer value - difference between all the benefits derived from a
total product and all the costs of acquiring those benefits - than competitors.
 Providing superior customer value requires the organization to do a better
job of anticipating and reacting to the customer needs than the competitor.
 Marketing strategy is basically the answer to the question: How will company
provide superior customer value to its target market? The answer to this
question requires formulation of marketing - mix – product, price, place and
promotion - strategies. The right combination of these elements meets
customer expectation and provides customer value.
 For example, marketer of a bike must know the customers performance
expectations, desired service, Price willing to pay, information he seeks and
after-sales service to provide superior customer value

14. Data points make up the demographics of
your personas, help inform your marketing
strategy, and paint a picture of who your
buyers are.
Consumer motivation
Consumer perception
Consumer personality
Information processing
Attitude formation and attitude change

15. Consumer motivation is an internal state
that drives people to identify and buy
products or services that fulfill conscious
and unconscious needs or desires. The
fulfillment of those needs can then
motivate them to make a repeat purchase
or to find different goods and services to
better fulfill those needs.

16. 1. Motivational Levels
 Depending on how important a purchase is to
an individual, his motivational levels may vary
from low to high. Influences include familiarity
with the purchase, status factors and overall
expense and value.
2. Motivational Behavior
 A person might do a lot of research--
evaluating alternatives, testing and sampling--
before making a selection. She might decide
to buy something based on which goods or
services most closely meet and satisfy
motivational wants and needs.

17. 3.Motivational Influences
If other people are involved in the decision,
their motivation also affects the behavior of
the primary consumer.(particularly in
brands)
4. Accessing Motivation
Marketers use pre-purchase and post-
purchase focus groups, one-to-one
interviews and online or postal surveys to
develop their understanding of consumers’
motivational drivers.

18. A marketing concept that encompasses a
customer's impression, awareness and/or
consciousness about a company or its
offerings. Customer perception is typically
affected by advertising, reviews, public
relations, social media, personal
experiences and other channels.

19. 1. Sensation– Attending to an object/event
with one of five senses
2. Organisation – Categorising by
matching sensed stimulus with similar
object in memory, .g. colour
3. Interpretation– Attaching meaning to
stimulus, making judgments as to value
and liking, e.g. bitter taste

20.  Exposure – Attention - Interpretation –
Memory
 1. Perceptual selection
nature of the stimulus
expectations
motives
selective perception
selective exposure
selective attention
perceptual defense
perceptual blocking

21. Perceptual organization
People tend to organize stimuli into groups
and perceive them as unified wholes.
Principles of perceptual organization
figure and ground
grouping
closure

22. The interpretation of stimuli is uniquely
individual because it is based on what
individuals expect to see in light of their
previous experience. Stimuli are often
highly ambiguous.

23. Individuals are subject to a number of
influences that tend to distort their
perceptions
Physical appearances
Stereotypes
Halo effect
First Impression
Jumping to conclusions

24. Perceptual mapping allows marketers to
determine how their products appear to
consumers in relation to competitive
brands on one or more relevant
characteristics.
Perceptual mapping enables the marketer
to see gaps in the positioning of all brands
in the product class and to identify areas in
which consumer needs are not being
adequately met.

26. Not only project and display, but also
include the inner parts of psychological
experience, which we collectively call our
‗self‘.
a) Personality reflects individual
differences.
b) Personality is consistent and enduring.
c) Personality can change.

27. Biological ·
Psychoanalytic ·
Dispositional ·
Learning ·
Humanistic ·
Cognitive.

28. a) Freudian theory.
b) Neo-Freudian personality theory.
c) Trait theory.

29.  This theory was built on the premise that
unconscious needs or drives, especially biological
and sexual drives, are at the heart of human
motivation and personality.
 Id, Super Ego, Ego
 The Id is the ―warehouse‖ of primitive and
impulsive drives, such as: thirst, hunger, and sex,
for which the individual seeks immediate
satisfaction without concern for the specific means
of that satisfaction.
 Superego is the individual‘s internal expression of
society‘s moral and ethical codes of conduct.

30. Ego is the individual‘s conscious control
which functions as an internal monitor that
attempts to balance the impulsive demands
of the id and the socio-cultural constraints of
the superego.
Conclusion: Freud‘s theories see that human
drives are largely unconscious, and that
consumers are primarily unaware of their true
reasons for buying what they buy. These
researchers focus on consumer purchases
and/or consumption situations, treating them
as an extension of the consumer‘s
personality.

31.  Several of Freud‘s colleagues disagreed with his
contention that personality is primarily instinctual
and sexual in nature. They argued that social
relations are fundamental to personality
development. Alfred Adler viewed human beings
as seeking to attain various rational goals, which
he called style of life, placing emphasis on the
individual‘s efforts to overcome feelings of
inferiority. Harry Stack Sullivan stressed that
people continuously attempt to establish significant
and rewarding relationships with others, placing
emphasis on efforts to reduce tensions.

32. Karen Horney proposed three personality
groups:
1. Compliant individuals are those who move
toward others—they desire to be loved,
wanted, and appreciated.
2. Aggressive individuals move against
others—they desire to excel and win
admiration.
3. Detached individuals move away from
others—they desire independence, self-
sufficiency, and freedom from obligations.

33.  It is primarily quantitative or empirical,
focusing on the measurement of personality
in terms of specific psychological
characteristics called traits. A trait is defined
as any distinguishing, relatively enduring way
in which one individual differs from another.
Selected single-trait personality tests
increasingly are being developed specifically
for use in consumer behavior studies.

34. Consumer innovativeness — how
receptive a person is to new experiences.
Consumer materialism — the degree of
the consumer‘s attachment to ―worldly
possessions.
Consumer ethnocentrism — the
consumer‘s likelihood to accept or reject
foreign-made products.

35. An attitude describes a person‘s relatively
consistent evaluations, feelings, and
tendencies towards an object or an idea.
difficult to change
Consumer choice
Customer‘s reactions and behaviour

36. 1. Tri-component Attitude Model
a. The cognitive component: knowledge
and perceptions (form of beliefs, images,
and long-term memories)
b. The affective component: consumers
emotions or feelings
c. The conative component: behavior

37.  2. Multi-attribute Attitude Models
Multi-attribute attitude models portray
consumers‘ attitudes with regard to an
attitude object as a function of consumers‘
perceptions and assessment of the key
attributes or beliefs held with regard to the
particular attitude objects.
a. Attitude toward object model: suitable for
measuring attitudes towards a product or
service category or specific brands

38. b. Attitude toward behavior model: The
individual‘s attitude toward the object itself.
c. Theory of reasoned-action-model:
Represents a comprehensive integration of
attitude components into a structure that is
designed to lead to both better
explanations and better predictions of
behaviour.
Similar to tricomponent attitude model

39. 1. how attitudes are learned
2. the sources of influence on attitude
formation
3. the impact of personality on attitude
formation.

40. 1) The shift from having no attitude toward a given
object to having an attitude is learned. The
learning may come from information exposure,
consumers‘ own cognition (knowledge or belief), or
experience.
2) Consumers may form an attitude before or after a
purchase. 2. Sources of influence on attitude
formation: personal experience, friends and family,
direct marketing, or mass media.
3) Personality factors: such as high/low need for
cognition (information seeking), and social status
consciousness

41. personal experience
the influence of family and friends
direct marketing
mass media

42. marketers will work at ensuring that their customers continue
to patronize their product with the existing positive attitude.
1. Changing the consumer‘s basic motivational function
a. The utilitarian function: A consumer develops a brand
attitude because of its utility.
b. Ego defensive function: Most individuals want to protect
their self-image.
c. The value expressive function: A. consumer develops an
attitude based on his general value, life style and outlook.
d. The knowledge function: Human nature is such that
individuals prefer to know and understand the people and
things they are in contact.

43. 2. Associating the product with an admired
group or event
3. Resolving two conflicting attitudes
4. Altering components of the Multi-attribute
model
(1) Changing the relative evaluation of
attributes
(2) Changing brand beliefs
(3) Adding an attribute, and
(4) Changing the overall brand rating
5. Changing consumer beliefs about
competitor‘s brands.

44. Discomfort or dissonance occurs when a
consumer holds confusing thoughts about
a belief or an attitude object
Attribution Theory : explain how people
assign causality to events on the basis of
either their own behavior or the behavior of
others.

45. Self-Perception Theory : addresses individuals‘
inferences or judgments as to the cause of
their own behavior.
Internal attribution—giving yourself credit for
the outcomes— your ability, your skill, or your
effort.
External attribution—the purchase was good
because of factors beyond your control—luck,
etc.
Defensive attribution—consumers are likely to
accept credit personally for success, and to
credit failure to others or to outside events.