Consumer Behaviour and Market Research

Faculty: Dr. S.M. Dhume

Dr. Ankush Sharma

Recap of Lecture 3

Prepared by:mithlesh,PGDIM-18,Roll no.74

In today’s class first we did the revision of first two classes and then following topics were covered:

1. What is CB?

2. Why do we study CB?

3. Approaches

4. Modelling

5. Types of buying behaviour.

What is CB?

CB is a subset of human behaviour i.e. CB is a part of total human behaviour. Total human behaviour means how a person behave socially ,politically .A person behave in a different way in different situation .CB is a study of buying behaviour of a person i.e. what is the behaviour of a person before buying, during buying and after buying.

Now what is behaviour?

Behaviour is a response (effect) to a stimulus (cause)

       For every effect there is a cause and for every cause there is effect.

Stimulus (cause)                                                                                     response (effect)

Response is determined by the stimulus .To get desired positive response, stimulus must be appropriate.

Now if response is only determined by stimulus then all individual should have same response for a given stimulus but it is not so. Why   ?  Because of different filter, no two individuals can not have   same behaviour even if they are twine (but can have similar behaviour  ,the task of segmentation is identifying and grouping the individual who has similar behaviour).

                                                                                      Filter

Stimulus (cause)                                                                                                                        response (effect)

What is this filter and how it is created?

Every human being has some accumulated knowledge by birth .In human being knowledge get passed from one generation to the next and then every person born and bought up in different situations. Every one of us studied in different school  ,grown up in different cultures, spending time among different people ,have different parent so all of us are different in one way or other.

So our response not only depends on stimulus but on filter also

CB is the sum of response ,filter and stimulus

What answers CB gives:

Who is the customer ,why he is buying ,how he is buying ,from where he is buying ,when he is buying, how much he is buying.

A marketer must know the answer of these questions and to get there answer he should have knowledge of CB then only he can do the segmentation ,targeting, positing and can attract the customer.

Why do we study CB?

1.To understand the philosophy of marketing/marketing concepts ,you should have prior knowledge of CB.There are five marketing concepts:

i)product concept:This orientation hold that customer will favour those products that offer most quality, performance or innovative features.Managers focusing on this concept concentrate on making the superior products and improving them over time.

ii)production concept :It hold that consumer will prefer that products that are widely available and inexpensive .Managers focusing on this concept concentrate on achieving high production efficiency ,low cost and mass distribution.

iii)selling  concept :It hold that consumer and business if left alone will ordinarily not buy enough of products. The organisation must therefore undertake an aggressive selling and promotion effort. This concept  assume that consumer typically show buying inertia or resistance and must be coaxed into buying. It also assumes that the company has a whole stoke of effective selling and promotional tools to stimulus more buying .Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather then make what market wants.

iv)marketing concept:It hold that to achieve its goal company must be more effective then competitor in creating ,delivering and communicating value to the customer .The marketing concept rest on four pillars namely target market, customer need, integrated marketing and profitability.

What is the difference between sales concept and marketing concept?

The sales concept is preoccupied with the sellers need to convert his product into cash.The marketing concept is preoccupied with the idea of satisfying the need of the customer by mean of product as a solution to the customers problem (need).

v) Mass marketing concept :It is a marketing converging  strategy in which firm ignore market segment differences  and go after the whole market with one offer .The idea is to broadcast a message that will reach the largest number of people possible.

2 .To be successful in marketers job , you need to study CB.

Marketers job is to create appropriate stimulus to get desired responses like getting convinced, buying, satisfaction of customer, reuse of product  ,positive word of mouth by the customer.

3. study of CB facilitate marketing decision like how to survive ,grow, retention of customer ,giving satisfaction to the customer.

What is satisfaction? It is the relationship between performance and expectation.

If expectation<performance, customer will be dissatisfied .He will not come back because he has other options .and also he will spread the negative word of mouth about the product.

If expectation =performance  ,customer will be just satisfied .A just satisfied customer may shift to competitor even with small incentive by the competitor.

If expectation >performance, customer will be delighted .It will result in retention of the customer. A delighted customer spread positive word of mouth about the product .A delighted customer will even gives the chance if u fails.

Is under promising and over delighted is appropriate to delight the customer ?No. Because  customer will not get attracted to your offering and he may choice your competitors more attractive offer. so overpromising is appropriate ?No. overpromising and over delivering is the best way to delight the customer.

4.In branding the study of CB is needed

The problems faced by customer: many options, limited time and energy .So solution is turning to brand. Buying a branded product among many options save time and energy which a customer can use in other thing.

Commodity: commodity is a unbranded product. Product is a commodity. For a   commodity it very difficult to seek attention so the commodity needs branding.

                                                                                                                                                               Brand awareness

Marketing             commitment          differentiation          brand          brand equity  

                                                                                                                                                                 Brand association

Marketing needs the commitment of the customer which comes when you differentiate yourself from your competitor. Today differentiation is a big challenge you cannot distinguish yourself on the objective attributes because they can be copied ,cannot distinguish by technology because everyone has almost same technology ,you can only distinguish yourself on the subjective  attributes (image associated with the product).to create the brand you need brand equity.Brand equity comes from

1.Brand awareness: if the customer can recall your product and how well he is aware about the product.It lead to high brand equity.

2.Brand association like pepsi associated with youthness, phenyl with cleanliness  etc

Approaches

Introspective: analysing own behaviour at the instant of buying.

Retrospective : analysing own buying behaviour after buying the product.

Prospective: analysing others buying behaviour.

Prescriptive: asking questions to potential buyer about their buying behaviour.

Modelling

CB models:

-describe the phenomena of buying ; what it is.

-explain the buying phenomena ;why it is the way it is.

-predict what is likely to happen.

-control the CB behaviour.                                                   

Popular CB model is black box.Here black box refer to consumer mind.when the mind get the stimulus it starts processing and then respond accordingly.

Stimulus/input/cause                                                  process                                                response/output/effect

Stimulus type:

1. uncontrollable-which can not be controlled by the marketers .example inflation, what your competitors are doing.

2. controllable-which can be controlled by marketer. example price, product, promotion, place i.e. marketing mix.

Promotion mix:advertising,sales promotion,publicity,personal selling

Advertising: it involves non personal , mostly paid promotion after using mass media outlets to deliver the marketers message .

Sales promotion: in this incentive is given to increase the sale. example discount.

Publicity: it use third party source particularly news media to offer a favourable mention of the marketers company or product without direct payment to the publisher of the information.

Personal selling:it involves personal contact between buyer and the seller.

                All elements of marketing mix acts as a stimulus .marketer has control over all of them. Than this stimulus is processed is the customers mind.

How the processing takes place.

-perception:it is the process of giving the meaning to the stimulus .perception is more important then reality for a marketer.if perception is positive the behaviour would be positive.perception mapping can be use to study perception.                                        Quality

                                                              Surf                                         tide

                                     Price                                                             

                                                                                                              Nirma

-motivation: it is the driving force that make the individual to respond or act. There is a gap between prevailing and desirable. Motivation fill this gap .if there is no gap, there would be no motivation.

                          Prevailing                                                            desirable

Motivation type-

Rational: customer compare cost and benefit before buying .In this there is always a reasoning in buying.

Emotional: no reasoning in buying

What is the difference between perception and motivation?

Perception is inside the customer and motivation is outside deriving force.

-attitude: it is the predisposition which is learned over a period of time toward certain object. If you have positive attitude toward the object then your behaviour would also be positive.

Triattitude attribute model:

Knowledge-is about information.

Feeling-is about emotion.

Behavioural  tendency.

Behaviour is determined by feeling and feeling is determined by knowledge.