OUTLINE OF PRESENTATION Types of Buying Behavior Consumer Decision Making Levels of Decision Making Buying Roles
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Types Of Consumer Buying Behaviour
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Complex Buying Behaviour: Complex buying behaviour involves a three-step process; first, the buyer develops beliefs about the product. Second, he or she develops attitudes about the product. Third, he or she makes a thoughtful choice. When the customer is involved in complex buying, they are aware of significant- differences in brands. This is the case when the products are expensive, bought frequently risky and highly self expressive. In this case the customer does not know much about that category. This situation involves the high level of involvement from consumers and the same with the difference among brands. These cases arise when the product is of high price, risky, high for servicing, and so on. For Ex: Buying a laptop/Car. Here the product is expensive and there is a significant difference among the brands.
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Dissonance Reducing Buyer Behaviour
Reducing Buyer Behaviour: Sometimes the consumer is highly
involved in a purchase but sees little difference in brands. The purchase is expensive, infrequent, and risky; therefore the consumer is highly involved. In this case, the buyer will go around to learn what is available but will buy when he gets a good price.. This involves high involvement of the buyer but a less significance difference among the brands. For ex: Buying an Air Conditioner. Here the product is highly priced but almost all every brand gives the same features. Sometimes this may involve the post purchase dissonance behavior. Here the consumer looks at the disadvantages of the product after purchase.
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Habitual Buying Behaviour: Consumers have little involvement in this product category. They go to the shop and reach for the brand. If they keep reaching for the same brand, it is out of habit, riot strong brand loyalty. It is-evident that consumers have low involvement with most low-cost, frequently Purchased Products. Consumers do not search extensively for information, evaluate characteristics and make decisions on which brand to buy. Here there will not be any kind of involvement from the consumer. Here the purchase happens depending upon the Brand familiarity. Here the consumer involvement is low and less differences among brands. This happens based on the habits of buying. For Ex: Buying of a liquid soap . Most of the people prefer Dettol because of the brand. But there are other products like Lifebuoy with less significant difference. 6 CB-MS 211 31/07/2019 Variety Seeking Buying Behaviour There has some buying situation that an characterized by low involvement but significant brand differences. In such cases the consumer often goes into a lot of brand switching. Take the example of chocolates. The consumers has some beliefs about chocolates chooses a brand of chocolates without much evaluation, & evaluates the -product during consumption. Next time, the consumer may reach for another brand out of a wish for a different taste. In this case the brand switching occurs for the sake of variety rather than dissatisfaction. Here the consumer involvement is low but there will be significant difference among brands. For Ex: Biscuits, when we buy a biscuit we do not know the taste hence after consumption only we can tell that whether to go for the brand or not for the next time. Here the companies try to change the nature to Habitual Buying behavior by different strategies. Sometimes this depends upon the retailers too. 7 CB-MS 211 31/07/2019 Marketers need to understand the dynamics of the consumer decision making process. While the process and the internal and external factors affecting decision making would vary from person to person and within the same person from situation to situation, the study of consumer behavior attempts to draw certain generalizations. The major decisions taken by a consumer relate to what he buys (products and services as also the brands), how much he buys (quantity), where he buys (place), when he buys (time) and how he buys (payment terms). 8 CB-MS 211 31/07/2019 CONSUMER DECISION MAKING
A consumer purchase is actually a response to a problem.
Consumer Decision Making pertains to making decisions regarding product and service offerings. It may be defined as a process of gathering and processing information, evaluating it and selecting the best possible option so as to solve a problem or make a buying choice. Consumer Decision Making pertains to the following decisions: a) What to buy: Products and Services (and the Brands?) b) How much to buy: Quantity c) Where to buy: Place d) When to buy: Time 9 CB-MS 211 31/07/2019 e) How to buy: Payment terms. LEVELS OF DECISION MAKING: (i) Extensive problem solving (EPS) (ii) Limited problem solving (LPS) (iii) Routinized problem solving
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BUYING ROLES:
Consumer decision making is a complex process. It is an
interplay of reactions amongst a consumer and his cognition, affect and behavior on the one hand, as well as the environmental forces on the other hand. The actual transaction/ exchange is preceded by considerable amount of thought processes and influences. This could be explained in terms of the five “Buying Roles” viz., Initiator, Influencer, Decider, Buyer and, User.The marketer needs to understand these roles so as to be able to frame suitable strategies to target them. 11 CB-MS 211 31/07/2019 a) Initiator: The person who identifies a need and first suggests the idea of buying a particular product or service. b) Influencer: The person(s) who influences the buyer in making his final choice of the product. c) Decider: The person who decides on the final choice: what is to be bought, when, from where and how. d) Buyer: The person who enters into the final transaction and exchange process or is involved in the physical activity of making a purchase. e) User: The person(s) who actually consumes 12 CB-MS 211 the product or service offering. 31/07/2019 • Example 2:
The mother of the house is a housewife; she loves watching
TV when her husband and children go for work. She has been complaining that the present TV set at home has been giving problem. She also says that the model is now an old one and that that the family should own a new model. i) Initiator: The lady ii) Influencer: Her neighbors and friends. iii) Decider: Joint: Her husband, she herself and the children. iv) Buyer: Husband or son or daughter or she herself. v) User: 13 CB-MS 211 The family. 31/07/2019 These five roles may be performed by one person or many persons. - A person may perform more than one role. - The role(s) that one assumes for a particular product purchase and in a particular purchase situation may differ to another product purchase and in another purchase situation.
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It is even more noteworthy that: As far as Buyer Behavior is concerned, the buyers role is the most important; it is he who enters into a transaction and final exchange. - actual and final decision is always made at the time of transaction by the buyer. - the decider may make a choice, but the exchange is entered 15 CB-MS 211 into by the buyer 31/07/2019