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Consumer Buying Behaviour

Introduction
Term IV 2016

Dr Omkumar Krishnan
IIM Kozhikode

Objectives

To grasp specific terms as they relate to consumer behaviour.


To study the differences in consumer behaviour in preference / purchase
decisions.
To understand and apply insights in marketing and advertising as they apply to
consumer behaviour
To design specific marketing strategies based on factors that influence
consumer behavior
Text Book: Consumer Behaviour: Building Marketing Strategy (Special
Indian Edition) 12th Edition
Publisher: Tata Mc-Graw Hill
Author: Del I Hawkins, David L Mothersbaugh, Amit Mookerjee

Dr Omkumar Krishnan
IIM Kozhikode

Evaluation Method
Item of Evaluation
Class Participation
Quizzes - 6 (Best of 5)
Group Project
End Term Exam

Group / Individual
Evaluation
Individual

Weight

Individual

15

Group

20

Individual

40

Dr Omkumar Krishnan
IIM Kozhikode

25

Consumer Behaviour
..is the study of how
individuals, groups, and
organizations select, buy,
use, and dispose of goods,
services, ideas, or experiences
to satisfy their
needs and wants.
Dr Omkumar Krishnan
IIM Kozhikode

The Nature of Consumer Behavior


Overall Conceptual Model of Consumer Behavior

1-5

Need to Study Consumer Behavior

Study of consumers
Borrows from psychology,
Sociology, market research, advertising..
Examples
Records what is permanent - Family, Success
Records changes in society - Fairness
Predicts Trends
- Savings

Dr Omkumar Krishnan
IIM Kozhikode

How does Consumer Behaviour help?


How he thinks, feels and selects between alternatives (brands,
products)

How he is influenced by his environment (culture,, family,


reference groups)

What is his behaviour when in marketplace (moment of truth)


Limitations in knowledge or processing abilities (learning,
attitude formation)

Dr Omkumar Krishnan
IIM Kozhikode

Broad Topics

Factors influencing Consumer Buying


Psychological Process
Classification of Buying Behaviour
Consumer Buying Roles
Stages in Consumer Buying Decision
Process
Dr Omkumar Krishnan
IIM Kozhikode

Dr Omkumar Krishnan
IIM Kozhikode

Factors influencing Consumer Buying


Cultural factors
Social factors
Personal factors

Dr Omkumar Krishnan
IIM Kozhikode

Culture
The fundamental determinant of a persons wants and behaviors
acquired through socialization processes with family and other key
institutions.

Subcultures

Nationalities
Religions
Racial groups
Geographic regions

Dr Omkumar Krishnan
IIM Kozhikode

Characteristics of Social Classes


Within a class, people tend to behave alike.
Social class conveys perceptions of inferior or
superior position.
Class may be indicated by a cluster of variables
(occupation, income, wealth, and education).
Class designation is mobile over time.

Dr Omkumar Krishnan
IIM Kozhikode

Social Factors
Family
Reference groups
Social Roles & Statuses

Dr Omkumar Krishnan
IIM Kozhikode

Family
Family of orientation
Parents and Siblings
Religion
Politics
Economics
Family of procreation
Spouse and Children
Everyday buying behavior

Dr Omkumar Krishnan
IIM Kozhikode

Reference Groups

Membership
Primary
Secondary
Aspirational
Dissociative

Dr Omkumar Krishnan
IIM Kozhikode

Personal Factors

Age
Life cycle stage
Occupation
Wealth

Dr Omkumar Krishnan
IIM Kozhikode

Personality
Values
Lifestyle
Self-concept

Key Psychological Processes

Motivation
Perception
Learning
Memory

Dr Omkumar Krishnan
IIM Kozhikode

Classification of Buying Behaviour


High Involvement Vs Low Involvement
Extensive Problem Solving
Belief Attitudes Planned Decision

Variety Seeking Behaviour


Habitual Decision making (Routine)
Impulse Buying
Dr Omkumar Krishnan
IIM Kozhikode

Consumer Buying Roles

Initiator
Influencer
Decider
Buyer
User
Disposer

Dr Omkumar Krishnan
IIM Kozhikode

Son
Friend
Mother
Father
Son and Daughter

Dr Omkumar Krishnan
IIM Kozhikode