Marketing Management –

BA3602
Nabeel Farooq
Nabeel.Farooq@szabist-isb.edu.pk
Consumer Buyer Behavior

LECTURE 4
LEARNING OBJECTIVES
 Consumer buyer behavior
 Why they buy?
 Characteristics affecting consumer behavior
 Cultural – culture, subculture, social class
 Social – family, reference groups, role and status
 Personal – age, life cycle stage, occupation, economic
situation, lifestyle, personality and self-concept
 Psychological – motivation, perception, learning, beliefs
and attitudes
 Types of buying decision behavior – involvement and
difference between brands
 Buyer Decision Process
 Adoption Process
Consumer Buyer Behavior
Consumer Buyer Behavior

The buying behavior of final consumers – individuals

and households

 What consumers buy?

 Where they buy from?
 How much do they buy?

 Why they buy what they buy?

Model of Consumer Behavior
Characteristics Affecting Consumer
Behavior
Model of Consumer Behavior
Cultural Impact on Buyer
Behavior
Culture
The set of basic values, perceptions, wants and
behaviors learned by a member of society from family
and other important institutions

 Subcultures: groups with shared value systems

 Social Class: relatively permanent and ordered

divisions in a society whose members share similar
values, interests and behaviors
American
Major
Social
Classes
Social Impact on Buyer Behavior
Social Factors
1. Groups and Social Networks
Groups that have a direct influence and to which a person
belongs are called membership groups

Groups that serve as direct or indirect points of

comparison or reference in forming a person’s attitudes or
behavior are called reference groups
 Expose a person to new behaviors and lifestyles

 Creates pressures to conform

Social Factors (contd.)
 Marketers must figure out how to reach opinion
leaders – the influentials or leading adopters

 Buzz marketing involves enlisting or even creating

opinion leaders to serve as brand ambassadors

 Word-of-mouth influence
 Powerful impact on consumer behavior

 Online Social Networks

Social Factors
2. Family
Marketers interested in roles and influence of husband,
wife, children, parents on buying decisions
 IKEA Australian stores have Manland

3. Role and Status

Personal Factors
Personal Factors
 Age and life-cycle stage
 Occupation
 Economic Situation
 Lifestyle
 Personality and self-concept
Psychological Factors
Psychological Factors
 Motivation
 Perception
 Learning
 Beliefs and attitudes
Types of Buying Decision Behavior
Types of Buying Decision Behavior
1. Complex buying behavior
 High consumer involvement
 Significant perceived differences among brands

 When the product is:

 Risky
 Purchased infrequently
 Highly self-expressive

 Process includes learning, developing beliefs, then

making a thoughtful purchase
 Marketers must understand information-gathering and
evaluation behavior of consumer
 Help buyers learn about product attributes
 Differentiate their brand’s features
 Motivate store sales staff to influence decision
Types of Buying Decision Behavior
2. Dissonance-reducing buying behavior
 High consumer involvement
 Few perceived differences among brands

 When the product is:

 Risky
 Purchased infrequently
 Expensive
 Example: carpets

 Decision might be based on price and convenience

 After purchase, consumers might experience post-
purchase dissonance
 Marketers after sales communication should provide
evidence and support
Types of Buying Decision Behavior
3. Habitual buying behavior
 Low consumer involvement
 Few perceived differences among brands

 Example: salt

 Consumers may not evaluate the other brands

 Marketers generally compete on price

 Marketers can add product features or enhancements
Types of Buying Decision Behavior
4. Variety-seeking buying behavior
 Low consumer involvement
 Significant perceived differences among brands

 Example: cookies

 Consumers do a lot of brand switching

 Not a lot of evaluation
 Brand switching might be for the sake of variety rather
than dissatisfaction
MARKET LEADERS:
 Marketers encourage habitual buying behavior by:
 Dominating shelf space
 Keeping shelves fully stocked
 Running frequent reminder advertising

CHALLENGER FIRMS:
 Marketers will encourage variety seeking by offering
 Lower prices
 Special deals
 Coupons
 Advertising that presents reasons to try something new
Elements of
Value Pyramid

http://www2.b
ain.com/bainw
eb/media/inter
active/element
s-of-value/#
Buyer Decision Process
Buyer Decision Process
 Consumers generally
pass through all five
stages
 May pass quickly or
slowly
 In routine purchases,
consumers often skips
or reverse some
stages
Need Recognition
 Need can be triggered by internal stimuli
 By external stimuli as well
 Advertisement
 Discussion with a friend
Information Search
 Stage in which the consumer is motivated to search
for more information
 Consumers may skip this stage
 Sources:
 Personal
 Commercial
 Public sources
 Experiential
Evaluation of Alternatives
 Depends on individual consumer and specific buying
situation
 Consumers use careful calculations
 Consumers may purchase with little or no evaluation

 By this stage, consumers might have formed beliefs

about certain brands
 If one attribute is into consideration, choice would be
relatively easy
Purchase Decisions
 Two factors can come between intention and
decision
 Attitudes of others
 Unexpected situational factors

Post-purchase Behavior
 Marketer’s job does not end
with the sale of the product
 Consumer satisfied or
dissatisfied?
 Answer lies in relationship between
consumers expectations and product’s
perceived performance
Buyer Decision Process For New
Products
Adoption Process
 Mental process through which an individual passes
from first hearing about an innovation to final
adoption

 Awareness
 Interest
 Evaluation
 Trial
 Adoption
Individual Differences in Innovativeness
Influence of Product Characteristics on Rate
of Adoption
 Relative Advantage
 Complexity
 Divisibility: degree to which innovation may be tried
on a limited basis
 Communicability

 Ongoing costs
 Risk and uncertainty
 Social approval