UNIT-2: Determinants of Consumer Behaviour

1. Cultural Factors:

• Culture: The broadest influence on consumer behaviour, encompassing values, beliefs, and customs.
• Subculture: Smaller groups within a culture with shared values and behaviours, such as ethnic groups or religious groups.
• Social Class: A hierarchical division of society based on factors like income, occupation, and education.

2. Social Factors:

• Reference Groups: Groups that influence an individual's attitudes and behaviours, such as family, friends, or coworkers.
• Family: The primary reference group, significantly impacting purchasing decisions, especially for household goods.
• Roles and Status: Social roles and status within groups can influence consumption choices.

3. Personal Factors:

• Age and Life Cycle Stage: Consumer needs and preferences change with age and life stage.
• Occupation: Occupation influences purchasing power and product needs.
• Economic Situation: Income, savings, and debt affect consumer spending patterns.
• Lifestyle: Lifestyle reflects a person's activities, interests, and opinions, influencing product choices.
• Personality and Self-Concept: Personality traits and self-perception affect brand preferences and purchasing decisions.

4. Psychological Factors:

• Motivation: The driving force behind consumer behaviour, arising from needs and wants.
• Perception: The process of selecting, organizing, and interpreting information from the environment.
• Learning: The process of acquiring new knowledge and behaviour's through experience.
• Beliefs and Attitudes: Beliefs and attitudes about products and brands influence purchase decisions.

Consumer's Purchase Decision Process

The consumer purchase decision process typically involves five stages:

1. Need Recognition:
   • Internal Stimuli: Arise from physiological needs (hunger, thirst) or psychological needs (self-esteem).
   • External Stimuli: Triggered by marketing communications, product displays, or social influences.
2. Information Search:
   • Internal Search: Recalling past experiences and knowledge.
   • External Search: Seeking information from sources like friends, family, advertisements, or online reviews.
3. Evaluation of Alternatives:
   • Evoked Set: A subset of brands considered for purchase.
   • Evaluative Criteria: Attributes used to compare brands, such as price, quality, or brand image.
4. Purchase Decision:
   • Brand Choice: Selecting the preferred brand.
   • Purchase Timing: Deciding when to buy.
   • Purchase Amount: Determining the quantity to buy.
   • Purchase Location: Choosing the place of purchase.
5. Post-Purchase Behaviour:
   • Satisfaction or Dissatisfaction: Evaluating the product's performance against expectations.
   • Cognitive Dissonance: Doubt or anxiety after a purchase, often reduced through seeking reassurance or justification.

Market Segmentation

Market segmentation involves dividing a market into distinct groups of consumers with similar needs, characteristics, or behaviours. Common segmentation bases include:

• Demographic Segmentation: Age, gender, income, occupation, education, and family size.
• Geographic Segmentation: Country, region, city size, climate, or neighbourhood.
• Psychographic Segmentation: Lifestyle, personality, values, and interests.
• Behavioural Segmentation: Purchase occasion, usage rate, brand loyalty, and benefits sought.

Target Marketing: Differentiation and Positioning

Target marketing involves selecting specific segments to focus on. Differentiation and positioning are key strategies for targeting:

• Differentiation: Creating a unique product or brand offering that stands out from competitors.
• Positioning: Creating a distinct image and identity for a brand in the minds of consumers.

Marketing Research

Marketing research is the systematic design, collection, analysis, and interpretation of data relevant to a specific marketing problem or opportunity. It helps marketers understand consumer behaviour, market trends, and the effectiveness of marketing strategies.

Marketing Information System (MIS)

An MIS is a system that gathers, analyses, and distributes relevant marketing information to help decision-makers. It includes:

• Internal Data: Sales figures, customer profiles, and inventory levels.
• Marketing Intelligence: Information gathered from the external environment, such as competitor activities, economic trends, and customer feedback.
• Marketing Research: Specific studies conducted to address particular marketing problems.
• Marketing Decision Support Systems (MDSS): Computer-based systems that help analyse marketing data and generate insights.

15 MCQs

10 Important Questions