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Syllabus: Unit 1: Consumer Behaviour

This unit covers consumer behavior and the factors that influence it, including personality, psychographics, family, society, and lifestyle. It will examine different models of consumer behavior such as economic, learning, psychoanalytical, and sociological models. It will also cover the concepts of perception, including sensation, thresholds, selection, organization, interpretation, and the effects of stereotypes, appearances, impressions, and halo effects on perception. The unit will discuss issues related to perceived price, quality, risk, and positioning and their implications for marketing.

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45 views

Syllabus: Unit 1: Consumer Behaviour

This unit covers consumer behavior and the factors that influence it, including personality, psychographics, family, society, and lifestyle. It will examine different models of consumer behavior such as economic, learning, psychoanalytical, and sociological models. It will also cover the concepts of perception, including sensation, thresholds, selection, organization, interpretation, and the effects of stereotypes, appearances, impressions, and halo effects on perception. The unit will discuss issues related to perceived price, quality, risk, and positioning and their implications for marketing.

Uploaded by

sanjeevseshanna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Syllabus

Unit 1: Consumer Behaviour


Introduction
Factors influencing Consumer Behaviour
Personality
Psychographics
Family, Society,
Values of of Perception
Attitude & Lifestyle
Different models of Consumer Behaviour Economic,
Learning, Psychoanalytical, Sociological, Howard
Sheth, Nicosia, Webster & Wind, Engel Blackwell &
Minard models

Values of Perception

Perception
How we see the world around us
Five

sense organs

5-3

DEFINITION

Perception is defined as the process by which the individual


selects, organizes, and interprets various stimuli into a
meaningful & coherent picture of the world. Marketers are
deeply interested in such perceptions the consumers hold about
their products & services, brands , company etc.

Sensory Dynamics of Perception


Sensation
The Absolute Threshold
The Differential Threshold
Subliminal Perception

5-5

Sensory Dynamics of Perception

Sensation: The immediate and direct response of the

sensory organs to stimuli (a stimulus is any unit of sensory


input).
Absolute threshold: the lowest level at which an
individual can experience a sensation. This is the minimum
level of marketing stimuli that is required to get noticed by
the receptors of the customers.
Differential threshold: Minimal difference that can be
detected between two similar stimuli (also known as the just
noticeable difference (the j.n.d.)
Subliminal perception: Stimuli that are too weak or too
brief to be consciously seen or heard may be strong enough
to be perceived by one or more receptor cells. No research
evidence that subliminal advertising can cause behavior
changes

ELEMENTS OF PERCEPTION
Individuals are very selective as to which stimuli they
recognize; they subconsciously organize the stimuli
they do recognize according to widely held
psychological principles, and they interpret such
stimuli subjectively in accordance with their personal
needs, expectations, and experiences.
The following sections examine each of these 3
aspects of Perception

5-7

Aspects of Perception
Selection
Organization
Interpretation

5-8

Perceptual Selection
Conscious

and unconscious
screening of stimuli

5-9

Perceptual Selection
Depends

on three major factors


Consumers previous experience
Consumers motives
Nature of the stimulus

5-10

Concepts Concerning Selective


Perception
Selective

Exposure
Selective Attention
Selective Distortion
Selective Retention

5-11

Perceptual Selection

Selective Exposure: Consumers seek out messages


which are pleasant, resonate with them, and help
them make good purchase decisions
Selective Attention: Heightened awareness when
motivated; Prefer different messages and media
Perceptual Defense: Screening out threatening stimuli
Perceptual Blocking: Consumers protect themselves
from being bombarded with stimuli by simply
turning out blocking such stimuli from conscious
awareness.

Aspects of Perception

Selection
Organization
Interpretation

Principles of Perceptual Organization

Figure and ground: experience events by focusing on

some part and relegating the rest to a sort of hazy


background
Grouping: group stimuli to form a unified impression or
concept. People tend to organize the numerous stimuli they
receive from the marketer into groups to make a
meaningful picture
Closure: Will often fill in missing pieces
Incomplete messages remembered more than complete
Good figures: Familiar, symmetrical and orderly
experiences are perceived faster and remembered longer.

5-15

5-16

5-17

Aspects of Perception

Selection
Organization
Interpretation

Influences of Perceptual Distortion


Physical Appearances
Stereotypes
First

Impressions
Jumping to Conclusions
Halo Effect
5-19

Interpretation
(Perceptual Distortion)

Stereotypes: Ascribe meanings based on fragments of past


information.

Physical Appearances: People seek positive attributes of


experiences to relate to. More attractive models are often more persuasive.

First Impressions: People look for relevant, important, or


predictive stimuli. First impressions are lasting

Jumping to Conclusions: based on information captured


first. Put persuasive argument first.

Halo Effect: perceive and evaluate multiple objects based


on just one dimension

Marketing Implication of
Perception/Issues in Consumer
Imagery

Product Positioning and Repositioning

Price Perceptions

Price Expectations

Price-Quality Relationship ?

Retail Store Image

Manufacturer Image

Perceived Risk

Positioning
Establishing

a specific image for a brand in the


consumers mind
Product is positioned in relation to competing
brands
Conveys the concept, or meaning, of the
product in terms of how it fulfills a consumer
need
Result of successful positioning is a
distinctive, positive brand image

Positioning Techniques

Umbrella Positioning
Positioning against
Competition
Positioning Based on a
Specific Benefit

Positioning of a
Leader
Positioning of a
Follower
Repositioning the
Competition

Product Repositioning

Repositioning is a strategy wherein you


create a slightly different image of your brand
not going away too far from the brands core
values.

5-24

Perceptual Mapping
A research

technique that enables marketers


to plot graphically consumers perceptions
concerning product attributes of specific
brands.

5-25

Research Insight

5-26

5-27

The perceptual map below shows consumer perceptions


of various automobiles on the two dimensions of
sportiness/conservative and classy/affordable. This
sample of consumers felt Porsche was the sportiest and
classiest of the cars in the study (top right corner). They
felt Plymouth was most practical and conservative
(bottom left corner). Cars that are positioned close to
each other are seen as similar on the relevant
dimensions by the consumer. For example consumers
see Buick, Chrysler, and Oldsmobile as similar. They are
close competitors and form a competitive grouping. A
company considering the introduction of a new model
will look for an area on the map free from competitors.
Some perceptual maps use different size circles to
indicate the sales volume or market share of the various

Issues in Perceived Price

Reference prices used as a basis for comparison


in judging another price

Perceived Quality
Perceived

Quality of Products
Intrinsic vs. Extrinsic Cues
Perceived Quality of Services
Price/Quality Relationship

Perceived Quality of Services

Difficult due to characteristics of services


Intangible
Variable
Perishable
Simultaneously Produced and Consumed
SERVQUAL scale used to measure gap between
customers expectation of service and perceptions
of actual service

Price/Quality Relationship

The perception of price as an indicator of product


quality (e.g., the higher the price, the higher the
perceived quality of the product.)

Corporate Image
COMPANY

INTERNAL
MARKETING

EXTERNAL
MARKETING

INTERACTIVE
MARKETING

EMPLOYEES

CUSTOMERS
5-33

Types of Perceived Risk.


1)

Functional risk

2) Physical risk
3) Financial risk
4) Social risk
5) Psychological risk
6) Time risk

Perceived Risk Highest when.


- little information available about the offering
- the offering is new
- high price
- technically complex product or service
- substantial quality differences among brands
- less experienced consumers
- socially visible decision

Risk reducing strategies.

Seek more information

Buy same brand as before

Buy brand with best image

Buy from same or best known store

Buy the most expensive alternative

Buy the cheapest alternative

Seek reassurance

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