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MIP Notes

Consumer behavior is influenced by many factors and differs across regions and demographics; in Asia, companies should focus on local markets rather than generalizing entire countries, and various media channels are needed due to lower penetration rates compared to Western countries. The consumer decision journey is a more circular model of the purchase process that includes consideration, evaluation, purchase, experience, advocacy, and loyalty phases compared to the traditional funnel model.

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Haider Raza
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29 views

MIP Notes

Consumer behavior is influenced by many factors and differs across regions and demographics; in Asia, companies should focus on local markets rather than generalizing entire countries, and various media channels are needed due to lower penetration rates compared to Western countries. The consumer decision journey is a more circular model of the purchase process that includes consideration, evaluation, purchase, experience, advocacy, and loyalty phases compared to the traditional funnel model.

Uploaded by

Haider Raza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Consumer Behavior is a study of the actual consumer purchases that reveals what consumers buy,

.where they buy, how they buy and how much they buy

.Consumer behavior is the net result of cultural, social, personal and psychological factors

In asia, companies should think regionally but sell locally, focus on clusters of population separately
.rather than generalizing the whole country as one market

The wants of an Asian country are at times quite similar to those of western countries, people prefer
.having luxury items such as iPhones

Penetration rate for media is lower in Asia, so other than TV, Social Media and print ads, events, outdoor
ads, messages and in store promotions are required as well, although digital media is still very
.important, especially for retargeting

Retarget is to remind a customer about a product which they may have seen earlier but left without
.purchasing

Consumer Behavior is affected by many socio-cultural factors like social class, demographics, personality
and beliefs

Some causes of divide in Pakistan Rural-Urban divide • Big Town - Small Town divide • Rich – Poor divide
• Male – Female divide

As people in the bigger urban cities are getting more literate, and the amount of working women also
increasing, people in these areas prefer ready or easy to cook meals such as Shan Masala and Knorr
noodles etc. while also increasing the market for food delivery services. More cars are required as well.
People in urban areas live a more time compressed lifestyle compared to rural population. Important for
.marketers and companies to innovate to stay in competition

Factors affecting purchase intention in Pakistan

Size of retail outlet: Consumers feel more in control in the modern supermarket where they can walk -
.around and choose out of the different products available as opposed to over the counter stores

Country of Origin: Has no effect on product performance but is considered in consumer decision -
.making

Brand name-

Situational factors-

This new approach is called The Consumer Decision Journey and is more circular in nature. It constitutes
four primary phases representing potential battlegrounds where marketers may win or lose: initial
consideration; active evaluation, or the process of researching potential purchases; closure, when
consumers buy brands; and post-purchase, when consumers experience them. Unlike the funnel
approach, the number of brands under consideration during the active-evaluation phase may now
actually expand rather than narrow as consumers seek information and shop a category

A consumer is someone that consumes that product, a customer is someone who buys that product but
doesn’t consume it e.g. parents buying baby milk are customers, you buying lays for yourself are a
consumer.

Market research requires insight from consumers, customers and the general public.

Relationships take time to build. The best relationship that an organization can build with its consumers
is that of advocate. But advocacy takes a very long time to build.

By brand health tracking, we try to study the equity of the brand through 6 different factors.

Consumer insights is the process of understanding what consumer thinks. Focus groups, interviews,
mystery shopping are some ways to gather consumer insights. It tells us what the consumer’s attitude
and behavior are at the end of the transaction.

In the old days, it was more common for a consumer to funnel down to a choice, often choosing the best
out of the lot depending on available information. Now, however, due to increased availability of
information and awareness, consumers are more open to broaden the choices given to them before
coming down to a specific product.

According to research conducted, consumers these days do not use the funneling technique when
choosing a product, rather they Consider, Evaluate, Buy and Enjoy, Advocate and Bond, which is the
Consumer Decision Journey.

Consider: The top of mind consideration set made through firsthand experience, advertisements etc.

Evaluate: The expansion of the initial consideration set thanks to reviews from other people and
features.

Buy: Whatever the decision a consumer comes up with in the last step can be changed once they go to
buy the product due to sales service, price, placements.

Enjoy: After buying, the consumer starts to develop a deeper connection with the product and the
brand, starts to recommend other people as well and this is where brand loyalty develops.

Some differences between perceived and actual buying scenarios. Marketers should focus on different
stages of the buying process rather than spending a big chunk of their budget on advertising and retail
because according to research, the biggest factor in consumer decision is someone’s advocacy. The
evaluate and enjoy parts of the process are often more vital, but marketers often give more
consideration to the buy and consider parts.
To shift to CDJ strategy, marketers need to understand the consumer decision journey, determine
which touch points are more influential and how to leverage that influence, and allocate resources
accordingly.

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