Thursday, October 22, 2009
Time Pressure
1. involvement,
2. alternative differentiation, and
3. time pressure.
We talked about Involvement and Alternative Differentiation in our previous talk. Let’s talk about Time Pressure Today.
When you are under pressure to make a decision quickly, you connot afford to spend a long time finding out about the various products or brands. You would probably buy whatever is readily available. When you are planning to buy a term life insurance, user can go on net and find out different available options. While traveling in you car to a hill station you car tyre bursts and you need to new one. At that time you would buy the brand that is available at whatever price without giving it too much thought. But under a different situation, when you need to buy new tyres, you would certainly like to find the features of nylon and radial tyres and evaluate various brands e.g. Modi, MRF, Dunlop and Apollo etc. on their individual advantages and disadvantages.
Monday, January 19, 2009
MODELS OF CONSUMER BEHAVIOUR-1
As a buyer or consumer you are all the time making decisions such as what product to buy (a book or a shirt as a birthday present for your friend), which brand (Lux, Liril, Hamam, Rexona or OK toilet soap) from where (Super Bazar, nearby corner shop, chemist), etc.
PROCESS OF DECISION-MAKING
The most basic and important requirement for the marketer is to understand how consumers make choices. Ajzen and Fishbein have attempted to explain human choice behaviour in their theory of reasoned action which states that:
“Generally speaking-human beings are usually quite rational and make systematic use of information available to them. People consider the implications of their actions before they decide to engage or not to engage in a given behaviour.”
Thus, making a decision is a rational and conscious process in which the consumer evaluates each of the available alternatives to select the best amongst them. Each decision you make involves an elaborate mental thought process, a degree of active reasoning, though on the surface it may not always seem to be so.
Friday, January 9, 2009
Understanding Consumer Behavior
Man is a many faceted, complex psychological being. His consumer behavior is influenced by his motives, perceptions, attitudes and learning. Each of these psychological factors provides a unique mental framework for each consumer within which he makes his purchase decisions. For the marketer it is essential to associate his product with the motives and positive perceptions of his consumers. Also he must ensure that the product concept fits in with the consumer’s existing attitudes and beliefs. Owner of lifequotecenter.com says that they are provider of instant life insurance rates and life insurance quotes online, it is easy for them to sell their Term life insurance products to educated and literate consumer rather than uneducated and illiterates. Perceptions, attitudes and learning are most important of consumer behavior.
Consumers differ from one another in terms of their sex, age, education, income, family life-cycle stage, personality and life style, and other personal characteristics which influence their buying behavior. The needs of elderly consumers are different from those of young consumers. Newly married couple has needs which are totally different from older retired married couples. To successfully market to consumers with differing personal characteristics, the marketer must accordingly modify his marketing strategies.
Tuesday, December 30, 2008
Cultural Factors-3
iv) Materialism: There is a definite shift in the people’s cultural value from spiritualism towards materialism. People are spending more money than ever before on acquiring products such as air-conditioners, cars, scooters, video cassette recorders, etc. which add to both physical comfort as well as status. A company which wants to grow must keep a tab on such major cultural trends to ensure that its products fit in well with these new trends.
Sub-cultureWithin the large framework of a society there exist many sub-cultures. A sub-culture is an identifiable distinct, cultural group, while following the dominant cultural values of the overall society also has its own beliefs, values and customs that set them apart from other members of the same society.
Monday, December 29, 2008
Cultural Factors-2
i) Convenience: With more women joining the work-force there is an increasing demand for products that help lighten and relieve the daily household chores, and make life more convenient. This is reflected in the soaring sale of gas stove, mixes, washing machines, roller shades, woven wood shades, blinds, vacuum cleaners, ready to eat/cook packets of dehydrated frozen/precooked foods, fast food outlets etc.
Fifteen years ago when Hindustan Lever first introduced the concept of dehydrated vegetables and marketed Hima peas, the concept did not succeed. The cultural value was of eating fresh and freshly cooked food. But today that cultural value does not have successfully marketed.
ii) Education: People in our society today wish to acquire relevant education and skills that would help improve their career prospects. This is evident from the fact that so many professional, career-oriented educational centers are coming up, and still they cannot seem to meet the demand. As a specific instance count the number of institutions offering courses and training in computers that has opened in your city. The establishment of IGNOU is also a result of this cultural trend.
Cultural Factors-1
The kind of products and advertising appeals that can work effectively in a society depend largely on its cultural background. In the American Society, individualism, freedom, achievement, success, material comfort, efficiency and practicality are values which are followed and imbibed by the younger children. Products and services which fulfil these values are most successfully marketed in America.
In the Indian society, on the contrary, conformity, spiritualism, respect for the elderly, traditionalism and education are some of the dominant cultural values. However, our society is undergoing a cultural metamorphosis and you can discern some major cultural shifts which have far reaching consequences for the introduction of a vast variety of new products and services.
Thursday, December 25, 2008
Cultural Factors
Culture
Culture is an extremely critical and all pervasive influence in our life. “It is a mould in which we are all cast, and it controls our daily lives in many unsuspected ways” (Edward T. Hall-T. Hall-The Silent Language). The study of culture encompasses all aspects of a society such as its religion, knowledge, language, laws, customs, traditions, music, art, technology, work patterns, products, etc. We can understand with the example of curtain and blinds. In many Asian countries curtains are part of their culture. Those countries are still using curtains as part of their window treatment. Which in other countries blinds, roller shades, woven wood shades blinds has taken place of curtains. So, culture is extremely important factor for consumer behavior. All these factors make up the unique, distinctive ‘personality’ of each society. For our purpose of studying consumer behavior, culture can be defined as the sum total of learned beliefs, values and customs which serve to guide and direct the consumer behavior of all members of that society.
1. Formal learning in which parents and elders teach children the proper way to behave; for instance a child may be taught that too many toffees and chocolates are bad for his teeth. This learning may influence his response, both as a child and adult, towards these products.
2. Informal learning in which we learn by imitating the behavior of our parents, friends, or by watching TB and film actors in action;
3. Technical learning in which instructions are given about the specific method by which certain things have to be done such as painting, dancing, singing, etc.
Sunday, December 21, 2008
Diffusion of Innovation
Diffusion of Innovation
Opinion leaders are usually innovators. They are always trying out new products and brands, and recommending them to the opinion receivers. The acceptance of new products, brands, and ideas is known as the diffusion of innovation. In a narrow sense, innovation is defined as something new or modified which has a relative advantage over the existing products, brands, and ideas is known as the diffusion of innovation. In a narrow sense, innovation is defined as something new or modified which has a relative advantage over the exiting products. Marketers are concerned with the pread or diffusion of this innovation which is a two-step process. The first step is the spread of awareness of an innovation from its sources to the consumers. The second step is the individual consumer decision-making process which leads up to the acceptance or rejection of the innovation. We will discuss on cultural and sub culture factors in our next post.
Friday, December 12, 2008
Opinion Leader-2
Advertisers and marketers are concerned with reaching the opinion leaders and ensuring that they receive the intended information which they can, in turn, pass on to opinion receivers. Thus the first task of the marketer is to identify the opinion leaders. In a particular society, persons who are members or participants in a number of social organisations and have a high social activity participation are likely candidates for opinion leaders. Having identified the opinion leaders, the next task is to reach them through the media which they patronise. Direct mail pieces, magazines and journals of clubs and social organisations and special interest magazines (for speciality products) are some of the appropriate channels for this purpose.
blinds, roller shades, woven wood shades
Thursday, December 11, 2008
Opinion Leaders-1
The influence is informal and the setting in which the influencing process takes place has nothing to do with the actual buying or selling of the product in question. For instance, during lunch hour you casually ask your colleague to recommend a good scooter mechanic. Or you discuss with your relatives and neighbours what brand of TV they possess and try to ascertain which is the brand recommended by most, before purchasing a TV for your own home. Further, the process often occurs between two persons rather than in a large group setting. Thus, the opinion leadership process can also be thought of as the ‘word-of-mouth’ communication.
The advice of opinion leaders is sought in case of specific products. People who have acquired considerable knowledge and experience in a particular field are thought of as opinion leaders in that area.
Sunday, December 7, 2008
Other Social Factors-1
Group norms
The norms of a group are the implicit rules of conduct and behavior that are expected of its member. For instance, in certain multi-national companies in India, the norm for office wear includes a full-sleeved shirt and tie, notwithstanding the terrible heat conditions. If marketers can identify the various groups to which potential consumers belong, they can successfully market those products and services whose consumption is dictated by the group norms.
Conformity
Conformity implies that members of a group have adopted attitudes and behavior patterns that are consistent with the group’s norms. In the context of consumer behavior it refers to the percentage of members who knowingly use the same brand or product. Example group a working for project a have same work environment and identical dress code. Their office window has same vertical window blinds and other group has different colors vertical window blinds. These ways they are trying to show conformity towards their group within the company.
We will discuss on Opinion Leaders in our next post.
vertical blinds, window blinds
Wednesday, December 3, 2008
Other Social Factors
Roles
An individual may participate in many groups. His position within each group can be defined in terms of the activities he is expected to perform. You are probably a manager, and when in your work situation you play that role. However, at home you play the role of spouse and parent. Thus in different social positions you play different roles. Each of these roles influences your purchase decisions.
As a manager, you would like to buy clothes which reflect your status within the organization, such as safari suit, three-piece suit, tie, leather shoes etc. But at home where you are in a relaxed and informal situation you may wear shirts or any comfort dress.
Status
Each role that a person plays has status, which is the relative prestige accorded by society. Status is often measured by the degree of influence an individual exerts on the behavior and attitude of others. People buy and use products which reflect their status. The managing director of a company may drive a Mercedes to communicate his status in society. He may go to Europe or U.S.A. for a holiday, rather than going to Mussoorie or Ooty.
Social Factors - Family-1
Commenting on the consumer behavior trends in the hi-fi stereo music today, Vice-president of Peico Electronic (Consumer electronics division) said, “It is teenagers who select sets, and their papers just buy them” (as reported in ‘India Today’ July 31, 1987).
In our next post we will discuss on other social factors like Roles, Status, Group norms etc.
mini blinds, discount motel, term life insurance
Monday, December 1, 2008
Social Factors - Family
The second type of family is the family of procreation consisting of the consumer’s spouse and children. Within the family, different members play different roles. Marketers are interested in finding out exactly the role played by individual members so that they can appropriately design their promotion strategy to suit these differing roles.
Tuesday, February 5, 2008
Family Life Cycle and Buying Pattern - 1
Why CRM, we are talking here and we talked aspect related with consumer behaviour in our past posts. CRM Software is part of Agency Management System. We are talking Family Life cycle and buying pattern of consumer in last post. Today we continue with that.
Full Nest - Old married couples with dependant children, when a person is in this phase financial positions still better. Spend on education, more tasteful furniture, cars, non-necessary appliances etc.
Empty Nest 1- older married couples, no children living at home, household head still working when a person is in this stage spend on travel, recreation, self-improvement, home-improvement, health care.
Empty Nest 2 - older married, no children at home, head retired - when a person is in this stage drastic reduction in income. Buy medical appliances and medi-care products which aid good health.
Solitary Survivor - In Labor Force - when a person is in this stage likely to sell home, but income still good.
Solitary Survivor - Retired when a person is in this stage Reduce income, spend on medical product.
ref: Insurance CRM Software, SFA Software, Agency Management System
Thursday, January 31, 2008
Family Life Cycle and Buying Pattern
Single Stage----
When a Person is in single stage that is young, unmarried people living away from home their buying pattern could be few financial burdens. Spend on ret. Food. Very basic kitchen equipment and furniture, recreation and leisure time accessories such as Mobile or CD player.
Young Newly married
When a person is in this stage of life with no children, better off financially than they will be in near future, wife is usually working, highest purchase rate. Spend on furniture, durables such as refrigerators, gas stoves, and vacations etc.
Full Nest1—
Youngest Child under 6, when a person is in this stage, spend maximum on home purchase. Interested in new products and influenced by advertising. Buy Tv, baby foods, cough medications, toys such as tricycle.
Full Nest2—
Youngest Child over 6, a person some wives return to work. Better financial position, less influenced by advertising. Buy large size packages, various kinds of food, bicycles, education, house purchasing.
ref: agency management system, Insurance CRM
Friday, December 28, 2007
Learning - Consumer Behavior
Learning
A new born infant’s sucking at the feeding bottle is instinctive behavior, but a five-year old clamouring for chocolate or chewing gum is the result of learned behavior. Much of an adult’s human behavior is learned behavior.
This is a very significant fact for marketers, because it implies that consumers can be made to learn the desired behavior through interplay of motives, stimuli, cues, responses and reinforcements. A housewife has the need for cutting down the time she spends for cooking in the kitchen. When this need is strong enough to propel her to take action it becomes a motive. The motive is directed towards the stimulus object - a pressure cooker. The stimuli are the various advertisement about the product which she sees and hears. Cuse are minor stimuli that determine when, where and how the hosewife responds.
We talk more on Learning in our next post.
ref: Insurance CRM, Insurance SFA Software, agency management software
Tuesday, December 25, 2007
Perception - Selective Retention
Selective Retention:
People forget much of the stimuli which they receive and only remtain that information which reinforces their values and decision. You are more likely to remember the positive features of brand pressure cooker since they help reassure you that the decision which you had made was correct.
ref: Insurance Software Insurance SFA, agency management system
Friday, December 21, 2007
Perception - Selective Distortion -
Today, we are going to talk about Selective Distortion.
Let us suppose you have decided to purchase a specific brand ‘A’ of pressure cooker. Since you have already made your decision you would seek only that information which reinforces the correctness of your decision.
If you hear some positive remarks made about brand ‘B’ you would tend to find some shortcoming or flaw in that brand so that you do not feel that you have made a wrong decision by buying brand ‘A’. When to fit information to suit your own ideas or personal meaning, the process is known as selective distortion. Thus, a marketer may find that his message is often not received in the intended manner but it is twisted in different ways by different consumers.
ref: crm software and sfa applications, agency management system
Saturday, December 15, 2007
Perception - Consumer Behaviour and CRM -3
As part of Consumer Behavior, we talk Types of Consumers, Buyer Vs User, factor influencing consumer behavior, psychological factors , Maslow's Hierarchy of Human Needs, Maslow's Hierarchy of Human Needs -1 and Perception.
Everyday, every hour of our life we are being bombarded with a variety of stimuli. If we were to analyze and interpret each one of these stimuli, it may drive us crazy. But we all have in-built screening system which helps us to ‘select; and recognize’ only the relevant stimuli and ignore all the others. As a person involved in marketing, you would like to ensure that the stimuli which you are providing are not ignored by the consumers. But rather they are recognized, interpreted and retained in the consumer memory. In this context, there are three aspects of perception which are of immediate interest to the marketer. These are selective exposure, selective distortion and selective retention.
We talk on each of them in our next post.
ref: crm, lead organizer , agency management system & lead management software
