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Consumer Behavior and Market Research

This document provides an overview of consumer behavior and market research topics. It discusses key concepts like consumer motivation, personality, perception, learning, attitudes, social classes, culture, reference groups, and consumer decision making models. Segmentation strategies like geographic, demographic, psychographic and behavioral segmentation are also covered. Research approaches like surveys, experiments and sampling plans are summarized.

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Himansh Sagar
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44 views

Consumer Behavior and Market Research

This document provides an overview of consumer behavior and market research topics. It discusses key concepts like consumer motivation, personality, perception, learning, attitudes, social classes, culture, reference groups, and consumer decision making models. Segmentation strategies like geographic, demographic, psychographic and behavioral segmentation are also covered. Research approaches like surveys, experiments and sampling plans are summarized.

Uploaded by

Himansh Sagar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Consumer Behavior and Market

Research
MKTG 2002
Faculty: Dr. Sunil Barthwal
Introduction

What is consumer behavior?

‘Buyer’s Black Box’


MARKET SEGMENTATION

GEOGRAPHIC SEGMENTATION
DEMOGRAPHIC SEGMENTATION
PSHYCOLOGICAL SEGMENTATION
PYSCHOGRAPHIC SEGMENTATION
SOCIOCULTURAL SEGMENTATION
USE-RELATED SEGMENTATION
USE-SITUATION SEGMENTATION
HYBRID SEGMENTATION
LEVELS OF MARKET SEGMENTATION

Niche Marketing
Local Marketing

Individual Marketing
Ostrichesonilne.com visitors to site can buy Ostrich meat, feathers, leather
jackets, videos, egg shells, skin care products derived from ostrich body oil.

Mattel starting in 1998 girls can design their own Barbie Pal by logging on
to barbie.com. They could design doll’s skin tone, eye color, hairdo and hair
color, clothes, accessories, and name.
Consumer Buying and Market Research

 DEFINE THE PROBLEM AND RESEARCH OBJECTIVE

 DEVELOP THE RESEARCH PLAN

Cost of research, start research with secondary data


Research approaches
i) Observational research
ii) Focus group research
iii) Survey research
iv) Behavioral research
v) Experimental research
MARKET RESEARCH

Research instruments
Questionnaires
Mechanical instruments
(Galvanometer, Tachistoscope, Audiometer)

Sampling Plan
Who is to be surveyed? (Sample unit)
How many people are to be surveyed? (Sample size)
i) Probability sample
Simple random sample (every member has equal chance)
Stratified random (exclusive groups)
Cluster sample (city blocks)
MARKET RESEARCH

ii) Non probability sample


Convenience sample….accessible
Judgment sample……good prospect for accurate information
Quota sample…prescribed number in several categories

 COLLECT INFORMATION
 ANALYZE THE INFORMATION

→ researcher tabulates the data & develops frequency distributions

→ advanced statistical techniques, averages and measures of dispersion

 PRESENT THE FINDINGS


MARKET RESEARCH

BARRIERS TO USE OF MARKETING RESEARCH


 A narrow conception of marketing research
 Uneven caliber of marketing researchers
 Late and occasionally erroneous findings by marketing
research.
Consumer Motivation
NEEDS
Innate (physiological or biogenic) or Acquired (psychogenic)
MODEL OF MOTIVATION PROCESS

Previous learning

Needs Tension Drive Behavior Goal

Cognitive process

Tension reduction
Motivation Theories
Link consumer buying to:

Maslow’s hierarchy of needs


Herzberg’s 2 factor Theory
Vroom’s Expectancy Theory
Motivation
Arousal of Motives
Physiological arousal

Emotional arousal

Cognitive arousal

Environmental (or situational) arousal

Ethics and Consumer motivation


Personality and Consumer Behavior
What is personality ?
Those inner psychological characteristics that both determine
and reflect how a person responds to his or her
environment
Nature of Personality
1. Personality reflects individual differences
2. Personality is consistent and enduring
3. Personality can change
Personality

Personality Determinants

 Heredity: Physical stature, facial attractiveness, gender, temperament,


reflexes, muscle composition, energy level, biological rhythms.

 Environment: our early conditioning, culture in which we are raised,


family norms, friends, social groups, other experiences.

 Situation: Different demands of different situations call forth different


aspects of one’s personality…Church….picnic…..employment interview
Theories of Personality
 FREUDIAN THEORY

id, superego, ego

 NEO-FREUDIAN THEORY ( Alfred Adler, Sullivan, K. Horney)

Compliant, Aggressive, Detached

 TRAIT-THEORY (tailor-made personality tests)

Consumer innovativeness, Consumer materialism, Consumer ethnocentrism


Theories of Personality
By John Bearden

Extroversion ….gregarious, assertive, sociable.

Agreeableness…cooperative, warm, trusting

Conscientiousness…responsible, organized, dependable, persistent

Emotional stability…ability to withstand stress, calm, self-confident,


secure

Openness to experience…creative, curious, sensitive


Personality and Buying

 Consumer materialism
 Fixated consumption behavior
 Compulsive consumption behavior

Consumer ethnocentrism ?

CETSCALE
Personality and buying
TYPE A PERSONALITY

(Are always moving, talking, and eating rapidly…cannot cope with leisure
time….strive to think or do more things at a time)

TYPE B PERSONALITY

(Never suffer from a sense of time urgency……can relax without guilt)

PERSONALITY AND SELF CONCEPT

One or Multiple Selves

Actual self-image----ideal self image------social self-image/Ideal social self


Look at the image carefully!
PERCEPTION
How can we explain that individuals may look at the same thing, yet
perceive it differently?

Perception: A process by which individuals organize and interpret their sensory


impressions in order to give meaning to their environment.

Differential threshold – Weber’s law

j.n.d. ?

Subliminal perception

Selective perception

* Selective exposure * Selective attention * Perceptual defense * Perceptual blocking

Perceptual distortion

* Stereotypes * Halo effect

Attribution Theory - Fritz Heider


CONSUMER LEARNING
ELEMENTS OF CONSUMER LEARNING

Motivation Cues Responses Reinforcement

CLASSICAL CONDITIONING
Conditioned stimulus

Unconditioned response Conditioned response

Unconditioned stimulus

Strategic application of Classical conditioning

* Repetition * Stimulus generalization * Family branding


CONSUMER LEARNING

INSTRUMENTAL (Operant) CONDITIONING

Positive reinforcement

Negative reinforcement

Extinction

MODELING OR OBSERVATIONAL LEARNING

ETHICS AND CONSUMER LEARNING


CONSUMER ATTITUDE

An attitude is a learned predisposition to behave in a


consistently favorable or unfavorable way with respect to a
given object.
• The attitude “Object”

• Attitudes are learned predisposition

• Attitudes have consistency (but not permanent)

• Attitudes occur within situation

TRICOMPONENT ATTITUDE MODEL

* Cognitive component * Affective component * Conative component


CONSUMER ATTITUDE

ATTITUDE FORMATION
How do young people form their attitudes?

How do they form attitude for e.g. towards clothing brands?

How attitudes are learned?

Sources of influence on Attitude formation

Personality factors

Strategies of attitude change

Cognitive dissonance theory


SOCIAL CLASS AND CONSUMER BEHAVIOR

Upper uppers

Lower Uppers

Upper middles

Middle class

Working class

Upper lowers

Lower lowers
SOCIAL CLASS AND CONSUMER BEHAVIOR

 SOCIAL CLASS MOBILITY


Upward mobility

Downward mobility

 SOCIAL CLASS AND COMMUNICATION


REFERENCE GROUPS AND FAMILY INFLUENCES

UNDERSTANDING REFERENCE GROUPS


 Normative reference groups
 Comparative reference groups
FACTORS AFFECTING RG INFLUENCE
• Information and experience
• Credibility, attractiveness and power of RG
• Conspicuousness of the product
REFERENCE GROUPS AND FAMILY INFLUENCES

SELECTED CONSUMER-RELATED REFERENCE GROUPS

• Friendship groups

• Shopping groups

• Work groups

• Virtual groups or communities

• Brand communities

• Consumer action groups


REFERENCE GROUPS AND FAMILY INFLUENCE

CELEBRITY AND OTHER REFERENCE GROUP APPEALS

• CELEBRITY

Testimonials, Endorsement, Actor, Spokesperson

• THE EXPERT

• THE “COMMON MAN”

• EXECUTIVE AND EMPLOYEE SPOKESPERSON


CULTURE AND CONSUMER BEHAVIOR

What is culture?

Sum total of learned beliefs, values, and customs that serve to direct consumer
behavior of members of a particular society

CULTURE IS LEARNED

Enculturation and Acculturation

CULTURE IS DYNAMIC

SUB CULTURE

Nationality subculture, religious subculture, geographic/regional sub culture, racial


sub culture, age subculture,
CULTURE AND CONSUMER BEHAVIOR

CORE VALUES
• Individualism
• Collectivism
• Modernism
• Traditionalism

OTHER VALUES

Health, safety, work, pleasure, wisdom, leisure, sex, technology,


family, respect for elders, quality
MODEL OF CONSUMER DECISION MAKING

LEVELS OF CONSUMER DECISION MAKING

 EXTENDED PROBLEM SOLVING

 LIMITED PROBLEM SOLVING

 ROUTINIZED RESPONSE BEHAVIOR

VIEWS OF CONSUMER DECISION MAKING

Economic view

Passive view

Cognitive view

Emotional view
MODEL OF CONSUMER DECISION MAKING

Consumer Decision Making Process

Need Recognition

Pre-purchase search

Evaluation of alternatives

Post decision Behavior

Purchase 1.Trial 2. Repeat purchase 3. Post purchase evaluation

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