Chapter 7 contd..

Consumer Buying Behavior

Social & Group Forces

Psychological forces

I N F O R M A T I O n

1. Need Recognition Internal/dormant/depletion 2 Choice of Involvement level High/low involvement 3 Identification of alternatives Products/brands 4 Evaluation of alternatives Speed /taste/nutrition/price 5 Purchase and related decisions Form/place/time/possession 6 Post purchase behavior Cognitive dissonance

S I T U A T I O N A L

Analysis

1. Is it necessary that all six stages are followed ? 2. What is the job of a Marketer ? 3. Low involvement , what stages could be by passed ? 4. How to help customer justify his actions ? 5. How to provide value and improve CDV?

4 Factors that influence each stage

1. Information
Commercial & Social information

3 Psychological forces
Motivation Perception Learning Belief & Attitude

2 Social and cultural Forces

Culture Sub Culture Social class

4 Situational factors
When to buy Where to buy How to buy

Reference Groups
Family & Households

Cultural Factors
Culture Subculture Social Class

Buyer

Culture & sub culture

Culture -Acquired by exposure to family and

1. 2. 3. 4.

friends. Passed on from generations. Culture do change over time Time has become as valuable as money Two income families are the norm Gender roles are losing their identity Young and healthy in

Culture & sub culture

Sub-Culture Is a group dominant in culture, that is distinct because it is dominant in one or more important ways a sub set of culture nationality, religion and

racial groups.

When sub culture grow large, design specialized program to address that state Diversity marketing ( potentially rich segmentation possibilities)

Sub class
Members of different class are RARED for different roles. This is also known as caste membership. Lower status women believes that if she goes to high status dept stores, clerk may insult her Young MBA and a taxi driver on par? When their salaries are same. Iodized salt only available in malls? Available only at finer stores? Further, within a sub class there could be subsegments like Superior / inferior etc. What is conspicuous consumption?

Social Factors

Reference Groups

Family

Roles & Statuses

Family
Family of orientation You may not interact, but inherit traits of parents/siblings Chip of the old block.

Family of Procreation Husband/wife/child who decides what in the family ? Cadillac- 50% women decide ! GM- targeted back seat customers (8 14 yrs) on their sporty jeep development.

Role and Status

Buyer chooses products that portrays his role and status. Blue collar Outfit to suit working in Industry CEO Mercedes/Raymond's/Chivas regal Professor -?

Reference Groups
They are direct and indirect Influencers on Buying Behavior Direct eye to eye contact Family/friends/neighbors/co-worker Indirect- 2 sub groups- Primary & Secondary Primary- religious/professional/trade union Secondary life style/self concept

Reference Groups
Important to note as to the group to which buyer likes/wont like to belong to. Aspiration Group I want to be -----. Important trait and good for a marketer. Dissociate group I wouldnt like to be It could be a good/ no good lead for a marketer - debatable

Personal influences
Age and Life cycle: Behavior is dependent on human life cycle from child to grand old man Occupation and Economics Blue collar Outfit to suit working in Industry CEO Mercedes/Raymond's/Chivas regal Professor -? Further, disposable income ?

Personal influences
Life Style: People of same sub culture & sub class like to portray the same person. There are 4 distinct life styles 1. Traditional to continue the old 2. Interested in change 3. Chameleon follow the crowd 4. Sleep walkers - disinterested

Psychological Factors

Motivation Beliefs & Attitudes Perception Learning

Psychological
Motivation : need that is pressing the buyer to act Models like Sigmond freud Laddering- other cues (factors on the importance of Drivers) Satisfier/dis-satisfiers theory Maslow Hierarchy of needs

Maslows Hierarchy of Needs

5
Selfactualization
(self-development and realization)

4 Esteem needs
(self-esteem, recognition)

Social needs 3 (sense of belonging, love)

Safety needs (security, protection)

Physiological needs (food, water, shelter)

Perception
Perception interpretation of reality. Products offered by marketers provide ample opportunities to understand how perceptions differ 3 year old car Relatively new/ Used Car/ Money earner What is selective perception ? How individuals organize and interpret the stimuli in the decision making process Could be context / intelligence /thought process These factors combine together to form a mental phenomenon called selective perception

Perception

Selective exposure Cable TV .Individuals block non family channel. Keep TV/Computer in a central place selective attention Section A student does not like to see discount in fee structure from next batch
Like to notice stimuli related to current need- What I want Likely to notice stimuli that they anticipate- No radio in computer shop Likely to notice stimuli that is different -Wedding Gown

Selective distortion
Tendency to twist info into personal meanings- nothing much you could do Light car / good Mileage / Speed / Joy Unstable / not good for high way

Selective retention Individuals retain info that suits their attitudes and belief. 3M/Union Carbide/ Tata/ Infosys/ Wipro / Amul /Bhel
Marketer wants good things of their product only to be remembered &

LEARNING
Learning Change in behavior resulting from experience or interpretation of experience Godrej makes good refrigerators. Their Aircon also should be good. Prof is good in MM. He should be good in IM also. Social learning? Ganguly sent out ____ is back to terms When people watch others on TV social learning occurs

Belief & Attitude

Attitude : Respond consistently favorable or un favorable to a product/ store/ AD/idea Innate likes & dislikes It is More or Less lasting Belief: Description of a thought, a person holds about something. Belief in a Suzuki brand Kodak It takes clear pictures Features are made easy Kodak is a good brand Positive attitude towards Kodak

Self Concept Self Concept How people see themselves There are two parameters of interest to marketer Real self Ideal self

Buying roles
1. 2. 3. 4. 5. Different types of buying roles are: (perhaps for a washing m/c) Initiators (neighbor) Influencers (co-workers) Deciders (self) Buyer (FIL) User (servant)

Four Types of Buying Behavior

High Involvement Significant differences between brands Few differences between brands Low Involvement

Complex Buying Behavior DissonanceReducing Buying Behavior

VarietySeeking Behavior Habitual Buying Behavior

Buying behavior-explained
Products
High Involvement Low Involvement

CAR

Cookies

Computer

Salt/Cement

Buying behavior
1. Complex ;Expensive/infrequent purchase/risky/self expressive- Car 2. Dissonance :Expensive/infrequent/risky/but no significant difference Initially will go shop to shop to findout difference. If satisfied, goes for higher price with prod diff. If not satisfied,selects on price. In case 1 if difference is not true- post purchase dissonance may occur

Buying behavior
This perhaps could be because of : ACT-BELIEF- ATTITUDE 3. Variety seeking Low involvement would like to try variety. Cookies/ Detergents to some extent 4. Habitual : Not too much worried about brand. Doesnt affect really type.

4 Situational Factors

When customers Buy

Where customers Buy

Why Customers Buy

Conditions under which customers buy