Decoding about what they buy, want, need, or

Decoding consumer behaviour is a complex dynamic process: there are three stages of the purchase process which pose a challenge for the marketer these stages are pre- purchase, purchase and post purchase process. Consumer behaviour is the study of how people make decisions about what they buy, want, need, or act in regards to a product, service, or company. It is critical to understand consumer behaviour to know how potential customers will respond to a new product or service. It also helps companies identify opportunities that are not currently met. The model of consumer behavior involves marketing stimuli which may be in the form of a product or a service, price, distribution, communication to which a consumer responds thereby reflecting his purchase behavior. Further, the Objective of learning Customer insights mining is to decide the appropriate marketing mix for our product/service and to also decide on How to promote our offering and where to promote. We understood that there are various factors responsible for the same which are categorised mainly into two categories: Macro and Micro elements.

Macro Factors

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Cultural factors- It is a fundamental determinant of a persons’ wants and behavior. A different culture makes consumers to act and behave in a different manner. For e.g.-  children living in different countries have different views of self, relationships with others and needs and wants. Cultural factors are sub-divided into sub-cultures and Social classes. Sub-cultures include Nationalities, religions, Geographic regions, language, food, music, rituals and traditions. Further, cultures are also divided based on the social stratification prevailing that may be based on country’s past.

 

Social factors-  Reference Groups, Family Include factors such as reference groups; family and social roles and status also affect the buying behaviour. These are the groups that are the groups which impact the behaviour or attitude of the person. Family, friends and peers play an important role in deciding the behaviour on an individual. Also Buying behaviour is affected by the roles and status a person depicts in his/her life.

 

Personal factors- Include: Personality and lifestyle and Family Lifecycle :These factors vary from consumer to consumer for example the age and stage in the lifestyle, occupation, economic circumstances, values etc. for example  casual wear is a trend in many software industries while in manufacturing still strict formals are is the predominant dress code.

 

Other psychological factors include consumer involvement, Consumer Motivation, Consumer’s perception. Only these micro factors don’t only define buying behavior of an individual. These are also termed as micro influencers/elements. These are Motivation, Attitude, Perception and Learning (micro factors)

Micro factors

 

Motivation- A need becomes a motive for a consumer when it is aroused to a certain level of intensity which drives him to act. Factors which are visible to the marketers which are shared by consumers and thus easy to determine while there are factors which are hidden and have not been shared. Motivation has both directions – we select one goal over another and intensity – we pursue the goal with more or less vigor.

 

Perception- A motivated person is ready to act-how is influenced by his/her perception of the situation. It is the process by which we select, organize and information inputs to create a meaningful picture of the world, i.e., try to create an image into the minds of consumers to create a marketing stimulus and thus it becomes imperative to know what should be shown to the consumers. Example if of various brands if sold by different sales person having different perception results in different sales.

 

Learning- It induces change in behaviour arising from experience, learning is produced through the interplay of drives, cues, responses and reinforcement. Emotions also play a major role in buying of a product by bringing an emotional connection to make loyal customer base. If the experience suits the customers, customers also respond particularly which also enforces the brands in positive manner.

 

Attitude- It is also very important so that consumer can connect to brand easily. Attitude is basically calculated on Belief (for individual) and the Value (taken as a group). It is defined as consumer attitudes are a composite of consumers’ beliefs, feelings and behavioural intentions toward some object– usually a brand of a product over the other. Example in which diaper compared the cloth with the cloth suits this condition.

 

Consumer Decision Making

 

Geographical sales of product may vary, also it will vary for different economic status people and culture, per capita income, and other factors. Hence market must understand that these factors are an important for consideration before launching any new product to the market. For example – people in north prefer tea over coffee but as when moving to south, coffee is preferred more over tea.  Hence it’s a systematic process make decision making from consumer angle. It has 5 processes as shown below-

 

Need Recognition-It is the first step in consumer buying process. In this marketer has to identify the situation under which the consumer is buying. Also identify who is buying and why is he buying.

Information search- in this stage, consumer search for any external and internal information. Hence marketer should identify how the consumer searches for the information. Examples of personal sources that are marketer dominated include sales person advice in a retail store.

 

Evaluation of alternatives- Now consumer evaluates different products on particular scale of attributes which is most important to him/her. How different attributes are compared for which a marketer must know the attributes of its product and the attitude of consumers towards its brand

Purchase decision- During the purchase decision stage, the consumer may form an intention to buy the most preferred brand or product. Hence in this stage the consumer must decide the following: from whom he should buy, when to buy, and whether to buy.

Post-purchase decision- In this stage, when the customer assesses whether he is satisfied or dissatisfied with a purchase. Now days, it is also relevant to hit the need recognition.

 Review of Session 1 & 2

Consumer Insights Mining

Submitted by: Himanish Bhandari

Roll no. 170103082

Section B

Decoding consumer behaviour is a complex dynamic process: there are three stages of the purchase process which pose a challenge for the marketer these stages are pre- purchase, purchase and post purchase process. Consumer behaviour is the study of how people make decisions about what they buy, want, need, or act in regards to a product, service, or company. It is critical to understand consumer behaviour to know how potential customers will respond to a new product or service. It also helps companies identify opportunities that are not currently met. The model of consumer behavior involves marketing stimuli which may be in the form of a product or a service, price, distribution, communication to which a consumer responds thereby reflecting his purchase behavior. Further, the Objective of learning Customer insights mining is to decide the appropriate marketing mix for our product/service and to also decide on How to promote our offering and where to promote. We understood that there are various factors responsible for the same which are categorised mainly into two categories: Macro and Micro elements.

Macro Factors

Cultural factors- It is a fundamental determinant of a persons’ wants and behavior. A different culture makes consumers to act and behave in a different manner. For e.g.-  children living in different countries have different views of self, relationships with others and needs and wants. Cultural factors are sub-divided into sub-cultures and Social classes. Sub-cultures include Nationalities, religions, Geographic regions, language, food, music, rituals and traditions. Further, cultures are also divided based on the social stratification prevailing that may be based on country’s past.

 

Social factors-  Reference Groups, Family Include factors such as reference groups; family and social roles and status also affect the buying behaviour. These are the groups that are the groups which impact the behaviour or attitude of the person. Family, friends and peers play an important role in deciding the behaviour on an individual. Also Buying behaviour is affected by the roles and status a person depicts in his/her life.

 

Personal factors- Include: Personality and lifestyle and Family Lifecycle :These factors vary from consumer to consumer for example the age and stage in the lifestyle, occupation, economic circumstances, values etc. for example  casual wear is a trend in many software industries while in manufacturing still strict formals are is the predominant dress code.

 

Other psychological factors include consumer involvement, Consumer Motivation, Consumer’s perception. Only these micro factors don’t only define buying behavior of an individual. These are also termed as micro influencers/elements. These are Motivation, Attitude, Perception and Learning (micro factors)

Micro factors

 

Motivation- A need becomes a motive for a consumer when it is aroused to a certain level of intensity which drives him to act. Factors which are visible to the marketers which are shared by consumers and thus easy to determine while there are factors which are hidden and have not been shared. Motivation has both directions – we select one goal over another and intensity – we pursue the goal with more or less vigor.

 

Perception- A motivated person is ready to act-how is influenced by his/her perception of the situation. It is the process by which we select, organize and information inputs to create a meaningful picture of the world, i.e., try to create an image into the minds of consumers to create a marketing stimulus and thus it becomes imperative to know what should be shown to the consumers. Example if of various brands if sold by different sales person having different perception results in different sales.

 

Learning- It induces change in behaviour arising from experience, learning is produced through the interplay of drives, cues, responses and reinforcement. Emotions also play a major role in buying of a product by bringing an emotional connection to make loyal customer base. If the experience suits the customers, customers also respond particularly which also enforces the brands in positive manner.

 

Attitude- It is also very important so that consumer can connect to brand easily. Attitude is basically calculated on Belief (for individual) and the Value (taken as a group). It is defined as consumer attitudes are a composite of consumers’ beliefs, feelings and behavioural intentions toward some object– usually a brand of a product over the other. Example in which diaper compared the cloth with the cloth suits this condition.

 

Consumer Decision Making

 

Geographical sales of product may vary, also it will vary for different economic status people and culture, per capita income, and other factors. Hence market must understand that these factors are an important for consideration before launching any new product to the market. For example – people in north prefer tea over coffee but as when moving to south, coffee is preferred more over tea.  Hence it’s a systematic process make decision making from consumer angle. It has 5 processes as shown below-

 

Need Recognition-It is the first step in consumer buying process. In this marketer has to identify the situation under which the consumer is buying. Also identify who is buying and why is he buying.

Information search- in this stage, consumer search for any external and internal information. Hence marketer should identify how the consumer searches for the information. Examples of personal sources that are marketer dominated include sales person advice in a retail store.

 

Evaluation of alternatives- Now consumer evaluates different products on particular scale of attributes which is most important to him/her. How different attributes are compared for which a marketer must know the attributes of its product and the attitude of consumers towards its brand

Purchase decision- During the purchase decision stage, the consumer may form an intention to buy the most preferred brand or product. Hence in this stage the consumer must decide the following: from whom he should buy, when to buy, and whether to buy.

Post-purchase decision- In this stage, when the customer assesses whether he is satisfied or dissatisfied with a purchase. Now days, it is also relevant to hit the need recognition.