A consumer’s decision to purchase a product influenced by a number of variables which can be classified into four categories, namely psychological, personal, social, and cultural. Consumer Behavior effect demand of product with the area also. For example consumer in city area preferred to use vertical blinds, roller shades or faux wood blinds. Which villages or rural area consumer preferred to buy curtains.
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.
Showing posts with label CRM Software. Show all posts
Showing posts with label CRM Software. Show all posts
Friday, January 9, 2009
Monday, December 29, 2008
Cultural Factors-2
Today we discuss some of these changes for cultural factors are as follows:
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.
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
Though a marketer can influence all the three types of learning through his company’s advertising strategy, it is informal learning which is most amenable to such influences. Children learn much more about products and services through advertisements in mass media (especially TV) than they do either from their parents or teachers. Brand loyalties and images developed in the early formative years of childhood tend to be deep-rooted and affect the child’s consumer behaviour even in later years of adulthood. Marketers’ interest lies in identifying the potential consumer segments and ‘catching them young’.
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.
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
Still today we have discussed on some Social factors like reference group, family, roles, status, group norms, etc……In our last post we have discussed on Opinion leaders as a part of reference group. Today we are going to discuss on Diffusion of Innovation which is another factor of the reference group.
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.
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
Both opinion leaders and followers receive information on all kinds of products and services from the mass media. But the opinion receivers are more influenced by the opinion leaders rather than the media. In the eyes of the opinion receiver, the opinion leader has more credibility than the mass media. The opinion leaders become a sort of ‘middleman’ receiving information from mass media and passing it on to opinion receivers.
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
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
Apart form the family, a consumer is influenced by the advice he receives from his friends, neighbours, relatives and colleagues about what products and services he should buy. This process of influencing is known as the opinion leadership process and is described as the process by which one person (the opinion leader) informally influences the actions or attitudes of others (opinion receivers).
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.
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
As out talk on Social factors we have discussed on some social factors like Family, Status, Roles and today we are going to discuss on Group norms and Conformity.
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
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
Today we continue our talk on Social Factors like Roles and Status.
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.
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
Today we continue our discussion on one important social factor and which is a family. Traditionally, it has been the wife’s role to purchase food, clothing and other household sundries, while the husband played a dominant role in the purchase of automobiles and life insurance. But with the emergence of the working woman, these lines of traditional role demarcation have been getting increasingly blurred. Husbands now have to shoulder a greater part of the household duties while women are asserting themselves in areas so far treated as the husband’s domain. Thus, the same decision, in different families may be made either by the husband or wife, or both may have an equal voice. Children are also beginning to exert their influence on the family’s purchase decision. This is especially true in case of products such as television, stereo music systems, records, personal computers, etc. where the children are likely to have more updated information about various brands and product attributes.
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
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
Friday, November 14, 2008
Reference Group -2
Reference groups are used in advertising to appeal to different market segments. Group situation with which potential customers can identify are used to promote products and services. Hidden in this appeal is the subtle inducement to the customer to identify himself with the user of the product in question. The three types of reference group appeals most commonly used are:
a) celebrities,
b) experts, and
c) the ‘common man’.
Celebrities are well known people (in the specific field of activity) who are admired and their fans aspire to emulate their behavior. Film stars and sports heroes are the most popular celebrities. Soft drinks (Thums Up), shaving cream (Palmolive), toilet soap (Lux), textiles (Dinesh, Graviera) are advertised using celebrities from the sports and film fields. Experts such as doctors, lawyers, accountants and authors are sued for establishing the benefits of the products. Colgate and Forhans toothpastes are examples of products which use the expert reference group appeal for promotion.
Another reference group appeal is that which uses the testimonials of a satisfied customer. It demonstrates to the prospective customer that someone just like him uses and is satisfied with the product.
Direct reference groups which exert a significant influence on consumer’s purchase decision and behavior can be classified into six categories. These are:
i) The family,
ii) Friendship groups,
iii) Formal social groups,
iv) Formal shopping groups,
v) Consumer action groups,
vi) work groups.
wood blinds, premierinns
a) celebrities,
b) experts, and
c) the ‘common man’.
Celebrities are well known people (in the specific field of activity) who are admired and their fans aspire to emulate their behavior. Film stars and sports heroes are the most popular celebrities. Soft drinks (Thums Up), shaving cream (Palmolive), toilet soap (Lux), textiles (Dinesh, Graviera) are advertised using celebrities from the sports and film fields. Experts such as doctors, lawyers, accountants and authors are sued for establishing the benefits of the products. Colgate and Forhans toothpastes are examples of products which use the expert reference group appeal for promotion.
Another reference group appeal is that which uses the testimonials of a satisfied customer. It demonstrates to the prospective customer that someone just like him uses and is satisfied with the product.
Direct reference groups which exert a significant influence on consumer’s purchase decision and behavior can be classified into six categories. These are:
i) The family,
ii) Friendship groups,
iii) Formal social groups,
iv) Formal shopping groups,
v) Consumer action groups,
vi) work groups.
wood blinds, premierinns
Thursday, March 6, 2008
Income - Consumer Behavior
The income which a person earns is an extremely important influence on his consumption behavior. He may aspire to buy certain goods and services but his income may become a constraint. Income in this context really refers to the income available for spending (i.e. income after tax, provident fund and other statutory deductions). The person’s attitude towards spending versus saving and his borrowing power are also important influencing factors. Small size packaging in sachets for products such as tea, shampoo, toothpaste are meant for the lower income customers who cannot afford a one time large outlay of money on such products.
Products which are considered luxuries are more income sensitive than products which fall in the category of necessities. If you are marketing a luxury product you must keep a close watch on income and saving trends to avoid decrease in sales resulting from recession. To avoid sales decline you may need to re-position the product, change the marketing mix or both.
ref: Insurance CRM Software, SFA Software, Insurance Agency Management SoftwareMonday, February 18, 2008
Education and Occupation - Consumer Behavior
We talked Family life cycle, it's different stages and it's relation with buying patter of consumer. Today we are going to talk about effect of education and occupation on consumer behaviour. We all know that educated person get easily ready to adopt crm software or sfa software.
Education widens a person’s horizons, refines his tastes and makes his outlook more cosmopolitan. An educated person, as compared to somebody less educated, is more likely to consume educational facilities, books, magazines and other knowledge oriented products and services. For instance, an educated insurance agent gets ready to use agency management software, insurance crm software, and insurance sfa software. While less educated person my not easily adopt such insurance software.
The occupation also shapes the consumption need. People following specialized occupations such as photography, music, dance, carpentry, etc need special tools and equipment. But, apart from this specific need the status and role of a person within an organization affects his consumption behavior. Chief executives would buy three-piece suits of the best fabric, hand made leather briefcase and use services of airline and five start hotels. A junior manager or blue collar worker in the same organization may also buy a three-piece suit but he compromise on quality.
Education widens a person’s horizons, refines his tastes and makes his outlook more cosmopolitan. An educated person, as compared to somebody less educated, is more likely to consume educational facilities, books, magazines and other knowledge oriented products and services. For instance, an educated insurance agent gets ready to use agency management software, insurance crm software, and insurance sfa software. While less educated person my not easily adopt such insurance software.
The occupation also shapes the consumption need. People following specialized occupations such as photography, music, dance, carpentry, etc need special tools and equipment. But, apart from this specific need the status and role of a person within an organization affects his consumption behavior. Chief executives would buy three-piece suits of the best fabric, hand made leather briefcase and use services of airline and five start hotels. A junior manager or blue collar worker in the same organization may also buy a three-piece suit but he compromise on quality.
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
Tuesday, December 18, 2007
Perception - Selective Exposure - CRM
Perception we are talking here as part of consumer behavior which is a part of any agency management system. We talked 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.
We start our talk with CRM and lead organizer software and we talked CRM, Importance of Consumer Behavior , and Consumer Behavior-Introduction.
Today we are going to talk on Selective Exposure as part of Perception with reference to Consumer Behavior.
You must have noticed that when you are on the look-out for purchasing a specific product, be it camera, refrigerator, television or any other high value product or service, you suddenly, seem to notice more than the usual number of advertisement pertaining to that specific product. This is because of your selective exposure. People are more likely to notice stimuli which relate to their immediate needs. For the marketer, the implication is that he has to carefully and accurately identify his potential customers since other customers are not at all likely to notice the stimuli. Having identified the potential customers, the marketer has to ensure that the stimuli are interesting enough to attract and hold their attention.
ref: CRM & CRM Software, agency management system
We start our talk with CRM and lead organizer software and we talked CRM, Importance of Consumer Behavior , and Consumer Behavior-Introduction.
Today we are going to talk on Selective Exposure as part of Perception with reference to Consumer Behavior.
You must have noticed that when you are on the look-out for purchasing a specific product, be it camera, refrigerator, television or any other high value product or service, you suddenly, seem to notice more than the usual number of advertisement pertaining to that specific product. This is because of your selective exposure. People are more likely to notice stimuli which relate to their immediate needs. For the marketer, the implication is that he has to carefully and accurately identify his potential customers since other customers are not at all likely to notice the stimuli. Having identified the potential customers, the marketer has to ensure that the stimuli are interesting enough to attract and hold their attention.
ref: CRM & CRM Software, agency management system
Saturday, December 15, 2007
Perception - Consumer Behaviour and CRM -3
CRM and lead organizer software we are talking here as a part of agency management system. In our initial post we talked CRM, Importance of Consumer Behavior , and Consumer Behavior-Introduction .
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
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
Wednesday, December 12, 2007
Perception - Consumer Behaviour and CRM - 2
We are talking here consumer behavior as part of our talk on Why CRM. We talked CRM, Importance of Consumer Behavior , Consumer Behavior-Introduction as a part of leadorganizer and lead management with reference to Why CRM and agency management system. In our previous post, we talk about Types of Consumers, Buyer Vs User, factor influencing consumer behavior, psychological factors effecting consumer behavior, Maslow's Hierarchy of Human Needs and Maslow's Hierarchy of Human Needs - Consumer Behaviour -1.
Today we talk Perception as psychological factor.
Perception is the second major psychological factor that influences consumer behavior. Perception can be described as “how we see the world around us”. All the time we are receiving messages through our five organs viz., eyes, ears, nose, mouth and skin, The different sights, sounds, smells, tastes and sensations that we feel are knows as stimuli.
Each person recognize, selects, organizes and interprets these stimuli in his own individual manner based on his needs, values and expectations and this is knows as perception. Since each individual’s need, motives and expectations are unique therefore each individual’s perception is unique.
Perception helps to explain the phenomenon of why different individuals respond differently to the same stimulus under the same condition. As a marketing manager, you are providing stimulus to your consumers through the physical shape, colour, size, fragrance, feel, taste of your product, it’s package, advertisements and commercials.
Your interest is to understand why and what different types of perceptions are associated with each of the stimuli so that you can highlight that particular stimulus or combination of stimuli which evokes the most favorable perception in the maximum number of consumers.
ref: CRM Software with leadorganizer, agency management software
Today we talk Perception as psychological factor.
Perception is the second major psychological factor that influences consumer behavior. Perception can be described as “how we see the world around us”. All the time we are receiving messages through our five organs viz., eyes, ears, nose, mouth and skin, The different sights, sounds, smells, tastes and sensations that we feel are knows as stimuli.
Each person recognize, selects, organizes and interprets these stimuli in his own individual manner based on his needs, values and expectations and this is knows as perception. Since each individual’s need, motives and expectations are unique therefore each individual’s perception is unique.
Perception helps to explain the phenomenon of why different individuals respond differently to the same stimulus under the same condition. As a marketing manager, you are providing stimulus to your consumers through the physical shape, colour, size, fragrance, feel, taste of your product, it’s package, advertisements and commercials.
Your interest is to understand why and what different types of perceptions are associated with each of the stimuli so that you can highlight that particular stimulus or combination of stimuli which evokes the most favorable perception in the maximum number of consumers.
ref: CRM Software with leadorganizer, agency management software
Monday, December 3, 2007
Maslow's Hierarchy of Human Needs - Consumer Behaviour
Why CRM? We are talking here. We talked about CRM, Importance of Consumer Behavior , Consumer Behavior---Introduction as a part of leadorganizer and lead management with reference to Why CRM. In our previous post, we talk about Types of Consumers, Buyer Vs User and factor influencing consumer behavior and psychological factors effecting consumer behavior.
Today we are going to talk about Maslow’s Hierarchy of Needs.
All human need can be classified into five hierarchical categories and this hierarchy is universally applicable. These five categories are as under.
1) Physiological Needs.
2) Safety & Security Needs.
3) Social Needs.
4) Ego Needs.
5) Self actualization Needs.
The theory of hierarchy of need was propounded by Abraham Maslow. According to Maslow’s hierarchy all needs can be ranked in order of importance from the low biological need to the higher level psychological needs. Each level of unfulfilled need motivates the individual’s behaviour and as each successive level of need is fulfilled people keep moving on to the next higher level of need.
The different levels of need have been depicted as being water tight compartments. But in reality there is always overlap amongst the different levels of need. Since no need is ever totally satisfied. There is always scope for further fulfillment.
We continue our talk in next post.
Today we are going to talk about Maslow’s Hierarchy of Needs.
All human need can be classified into five hierarchical categories and this hierarchy is universally applicable. These five categories are as under.
1) Physiological Needs.
2) Safety & Security Needs.
3) Social Needs.
4) Ego Needs.
5) Self actualization Needs.
The theory of hierarchy of need was propounded by Abraham Maslow. According to Maslow’s hierarchy all needs can be ranked in order of importance from the low biological need to the higher level psychological needs. Each level of unfulfilled need motivates the individual’s behaviour and as each successive level of need is fulfilled people keep moving on to the next higher level of need.
The different levels of need have been depicted as being water tight compartments. But in reality there is always overlap amongst the different levels of need. Since no need is ever totally satisfied. There is always scope for further fulfillment.
We continue our talk in next post.
ref: crm & sfa software
Friday, November 30, 2007
Psychological Factors-Consumer Behavior
We talk about Importance of Consumer Behavior , Consumer Behavior---Introduction ,CRM as a part of leadorganizer and lead management with reference to crm. In our previous post, we talk about Types of Consumers, Buyer Vs User and factor influencing consumer behavior.
Consumer Needs and Motivations
We all have needs and we consume different goods and services with the expectation that they will help fulfill these needs. When a need is sufficiently pressing, it directs the person to seek its satisfaction. It is known as Motive. All our needs can be classified into two categories-primary and secondary.
Primary need or motives are the physiological need which we are born with, such as the need for air, water, food, clothing, shelter and sex.
The secondary needs are our acquired needs which we have developed in response to the society and environment in which we live. The secondary needs are the result of the individuals’ psychological make-up and his relationship with other members of the society.
The secondary need may include the need of power, prestige, esteem, affection, learning, status etc. Clothing is a primary need for all of us but the need for three piece tweed suit or jean pant o silk kimono are expressions acquired needs. The man wearing a three piece tweed suit may be seeking to fulfill his status need or his ego need by impressing his friends and family.
The theory of hierarchy of need was propounded by Abraham Maslow. We talk on this in our next post.
ref: crm, sfa, lead management, leadorganizer software for insurance industry.
Consumer Needs and Motivations
We all have needs and we consume different goods and services with the expectation that they will help fulfill these needs. When a need is sufficiently pressing, it directs the person to seek its satisfaction. It is known as Motive. All our needs can be classified into two categories-primary and secondary.
Primary need or motives are the physiological need which we are born with, such as the need for air, water, food, clothing, shelter and sex.
The secondary needs are our acquired needs which we have developed in response to the society and environment in which we live. The secondary needs are the result of the individuals’ psychological make-up and his relationship with other members of the society.
The secondary need may include the need of power, prestige, esteem, affection, learning, status etc. Clothing is a primary need for all of us but the need for three piece tweed suit or jean pant o silk kimono are expressions acquired needs. The man wearing a three piece tweed suit may be seeking to fulfill his status need or his ego need by impressing his friends and family.
The theory of hierarchy of need was propounded by Abraham Maslow. We talk on this in our next post.
ref: crm, sfa, lead management, leadorganizer software for insurance industry.
Monday, November 26, 2007
Factors Influencing Consumer Behaviour
We talk about Importance of Consumer Behavior , Consumer Behavior---Introduction ,CRM as a part of leadorganizer and lead management with reference to crm. In last two post, we talk about Types of Consumers and Buyer Vs User. Today, I m going to talk different factors influencing consumer behavior.
Consumer behavior is affected y a lost of variables, ranging from personal motivations, needs, attitudes and values, personality characteristics, socio-economic and cultural background, age, sex, professional status to social influences of various kinds exerted by family, friends, colleagues and society as a whole.
The combinations of these various factors produce a different impact on each one of us as manifested in our different behavior as consumers. You may think that the best way of utilizing your annual saving is to have a Christmas vacation, but your wife thinks it is wisest to invest in jewellery, while your colleague considers buying shares as the best way of spending savings. Thus you would find that each person has his or her own standards of judgments and distinct behavior in every aspect of his role as a consumer.
But at the same time, underlying the individual differences are similarities which help explain behavior of specific types or groups of people. It is these similarities which make it possible for us to classify and analyze the behavior of individual consumers.
Psychological factors such as individual consumer needs and motivations, perceptions, attitudes, the learning process and personality characteristics are the similarities which operate across different types of people and influence their behaviour. Amongst the social influences affecting behaviour, we can classify the influences of family, friends, leaders and the social class to which the consumer belongs.
We shall discuss these factors one by one and see how they influence the individual’s behaviour as a consumer.
Ref: Customer relationship management & lead management software
Consumer behavior is affected y a lost of variables, ranging from personal motivations, needs, attitudes and values, personality characteristics, socio-economic and cultural background, age, sex, professional status to social influences of various kinds exerted by family, friends, colleagues and society as a whole.
The combinations of these various factors produce a different impact on each one of us as manifested in our different behavior as consumers. You may think that the best way of utilizing your annual saving is to have a Christmas vacation, but your wife thinks it is wisest to invest in jewellery, while your colleague considers buying shares as the best way of spending savings. Thus you would find that each person has his or her own standards of judgments and distinct behavior in every aspect of his role as a consumer.
But at the same time, underlying the individual differences are similarities which help explain behavior of specific types or groups of people. It is these similarities which make it possible for us to classify and analyze the behavior of individual consumers.
Psychological factors such as individual consumer needs and motivations, perceptions, attitudes, the learning process and personality characteristics are the similarities which operate across different types of people and influence their behaviour. Amongst the social influences affecting behaviour, we can classify the influences of family, friends, leaders and the social class to which the consumer belongs.
We shall discuss these factors one by one and see how they influence the individual’s behaviour as a consumer.
Ref: Customer relationship management & lead management software
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