Presentation
of
Consumer Behavior
Presented by:-
RITU
POOJA
MOHIT
Group
► A group is a set of individuals which
▪ interacts with one another over some period of
time, and
▪ shares some common need or goal.
Groups Influence Buying
in Two Ways:
They affect the
purchases made by
individual consumers
Group members
sometimes make
decisions as a group
Dyadic Exchange . . .
. . . takes place when
two individuals
transfer resources
between each other
Definitions
•Word-of-Mouth
oThe act of consumers providing
information to other consumers
•Word-of-Mouth Marketing
oGiving people a reason to talk about your
products and services, and making it easier
for that conversation to take place
Recognizing that a
happy customer is the
greatest endorsement
Giving customers a
voice
Listening to consumers
Engaging the
community
Positive WOM Strategies
Encouraging communications
Giving people something to talk about
Creating communities and connecting
people
Working with influential communities
Contd……..
Researching and listening to customer
feedback
Engaging in transparent conversation
Co-creation and information sharing
Opinion Leadership
The process by which one person (the
opinion leader) informally influences the
consumption actions or attitudes of
others who may be opinion seekers or
opinion recipients.
Contd……
Opinion Opinion
Leader Receiver
Opinion
Seeker
Opinion Leaders...
Lead in a specific product category and situation.
Are usually involved with the product category.
May have higher social status than followers.
May be more innovative in purchases than
followers.
Are a bit similar to product innovators.
The Needs of Opinion Leaders
Self involvement
Social involvement
Product involvement
Message involvement
Types of Opinion Leaders
Opinion Leader Market Maven
Always involved in General market
product category. knowledge
High status, socially Expertise not product
active. specific.
Product Innovator Surrogate Consumer
Purchases innovative Often professional: tax
products consultant, wine
Less integrated into steward, stock broker.
social groups.
Reasons for the Effectiveness of Opinion
Leadership
Credibility
Positive and Negative Product
Information
Information and Advice
Opinion Leadership Is Category-
Specific
Opinion Leadership Is a Two-way
Street
Issues In Opinion Leadership and
Marketing Strategy
Programs Designed to Stimulate Opinion
Leadership
Advertisements Stimulating Opinion
Leadership
Market Maven
Individuals whose influence stems from a general
knowledge or market expertise that leads to an
early awareness of new products and services.
Service Encounters . . .
. . a personal interaction
between a consumer
and a marketer.
Diffusion . . .
. . . refers to the idea that . . . in the consumer
substances and ideas behavior setting, refers
can gradually spread to the process by which
through a medium of innovative ideas,
some type and reach a products, and services
state of equilibrium. spread through the
consumer population.
Diffusion Process
The process by which the acceptance of an
innovation is spread by communication to
members of social system over a period of
time.
Marketer generated info’n sources.
Websites , chat room e.g i-pod
Elements of the Diffusion Process
The Innovation
The Channels of Communication
The Social System
Time
Defining Innovations
Firm-oriented definitions
Product-oriented definitions
Market-oriented definitions
Consumer-oriented definitions
Purchase innovativeness ( time of adoption)
Use innovativeness
Telephone Innovations
Discontinuous Dynamically Continuous Continuous
Innovations Innovations Innovations
Telephone answering Hold button
machines Line-in-use indicator
Call forwarding Redial button
Telephone Call waiting Auto dialing feature
Caller ID Touch-tone service
Banking by telephone 800 Numbers
Call-prompting systems 900 Numbers
Ability to send/receive email Switch from analog to
Incorporate PDA functions digital
Cell Phone Calendar/Phonebook Include camera
Voice-activated dialing Ringer styles
Play games
Fax modem Plain paper fax
Mobile fax machines Speed dial buttons
Fax
Home office systems Delayed send
Machine
(combined fax, copier, Copy function
computer printer) Paper cutter
Product Characteristics That
Influence Diffusion
Relative Advantage- over the existing pdt.
Compatibility- with the existing needs, values attitudes
and practices. (3m scotch pop up tapes, MACH 3 razors
,shaving creams)
Complexity- degree of difficulty to use or
[Link] of tech’ complexity, obsolescence,social
rejection, physical harm.
Observability- degree to be tried on a limited basis.- pdt
can be described , communicated.
Pdts may diffuse differently in diff cultures.
The Diffusion of Innovations
A product innovation is
a product that has been
recently introduced and
is perceived by
consumers to be new in
relation to existing
products or services
Managerial Implications
Positioning. New products should be positioned to
appeal to opinion leaders, then possibly
repositioned to appeal to followers.
Market Research. Research can provide insight
into the shape of the diffusion curve for a new
product.
Marketing Mix. Promotions can be positioned to
appeal to children and thus utilize their influence in
family decision makings.
Adoption Process
The stages through which an individual
consumer passes in arriving at a decision
to try (or not to try), to continue using (or
discontinue using) a new product.
Adopter Categories
A sequence of categories that describes
how early (or late) a consumer adopts a
new product in relation to other
adopters.
Stages in Adoption Process
WHAT HAPPENS
NAME OF EXAMPLE
DURING THIS STAGE
STAGE
Consumer is first exposed Janet sees an ad for a new MP3 player in the
Awareness to the product innovation. magazine she is reading.
Consumer is interested in Janet reads about the MP3 player on the
the product and searches manufacturer’s Web site and then goes to an
Interest
for additional information. electronics store near her apartment and has
a salesperson show her a unit.
Consumer decides After talking to a knowledgeable friend,
whether or not to believe Janet decides that this MP3 player will
that this product or allow her to easily download the MP3 files
Evaluation service will satisfy the that she has on her computer. She also feels
need--a kind of “mental that the unit’s size is small enough to easily
trial.” fit into her beltpack.
Table 15.11 Stages in Adoption Process
WHAT HAPPENS
NAME OF DURING THIS EXAMPLE
STAGE STAGE
Consumer uses the Since an MP3 player cannot be “tried” like
product on a limited a small tube of toothpaste, Janet buys the
Trial basis MP3 player online from [Link],
which offers a 30-day full refund policy.
If trial is favorable, Janet finds that the MP3 player is easy to
consumer decides to use use and that the sound quality is excellent.
the product on a full, She keeps the MP3 player.
Adoption rather than a limited
(Rejection) basis--if unfavorable, the
consumer decides to
reject it.
Issues in Profiling Consumer
Innovators
Defining the Consumer Innovator
Interest in the Product Category
The Innovator Is an Opinion Leader
Personality Traits
Media Habits
Social Characteristics
Demographic Characteristics
Are There Generalized Consumer Innovators?
