Buyer’s Behavior

Definition
“All psychological, social, and physical
behavior of the potential customers as
they become aware of evaluate, purchase,
consume and tell others about products
and services”

“It is the study of processes involved when

individuals or groups select,purchase,use
or dispose of products,services,ideas,
concepts or experiences to satisfy
consumer needs and desires”
 Why customer buy the
product
recommendation of family or
friend 55%

TV commercial 53%

store display 48%

free sample in the mail 46%

fillers,newspapeers coupons 45%

0 10 20 30 40 50 60
3-D Bar 1
 The Concept………..
• Study of consumer behavior assumes that
consumers are the actors in the market place.
• Consumer play different buying roles in the
market:
• Initiator
• Influencer
• Gatekeeper ( Parents)
• Decider
• Buyer
• User
• Preparer
• Maintainer
• Disposer
 Factors influencing buyer’s
behavior
• Cultural influence
• culture refers to values, ideas,
attitudes and other meaningful
symbols created by people to shape
human behaviors .
• Values, beliefs, preferences, tastes
handed down generation to
generation.
• Cultural is different from country to
country, area to area.
 Factors influencing buyer’s
behavior
• Social Influence
• Group often influence individual
purchase
• Reference groups- people or
institutions whose opinion are
valued, to whom a person looks for
guidance. ( family, friends and
celebrities)
• Social classes - upper-upper
class,lower-uper class,upper-midle
 Factors influencing buyer’s
behavior
• Opinion Leaders-
• The process of influencing others
• Opinion via word of mouth
• Information from media to opinion
leaders to other members
• Celebrities,experts,salesman,delear
can be opinion leaders
 Factors influencing buyer’s
behavior
• Family influence
• Structure of the family is changed
• Autonomic role- individual decision
• Husband dominant role
• Wife-dominant role
• Syncratic role
• Children role in purchasing
 Factors influencing buyer’s behavior
• Personal determinants
• Needs and motives
• Maslow’s Hierarchy of needs :
• Physiological needs( Basic needs)- food, water,
shelter, clothing
• Safety needs-( security, protection) insurance,
medicines, retirement investments
• Social/Belongingness needs-( Desire to
accepted by people) beauty aids, good clothing,
cars
• Esteem needs-(sense of achievement,
accomplishment) quality clothing, jewelries,
hobbies
Self- Actualization needs-( to show unique
talents and capabilities) education, cultural
 Factors influencing buyer’s
behavior
• Perceptions-
• Perceptions through sight, hearing,
touch, taste, and smell.
• Perceptions regarding size, color,
weight, shape.
• Attitudes-
• Consumers decision to purchase the product is
strongly based on his attitudes about the
product.( Brand preference)
 Factors influencing buyer’s
behavior
• Learning
• Customer learns from his experience.
• The marketer should develop the habit of
purchasing.

• Self concept theory( self image)

• Persons multifaceted picture of himself
plays imp. role in buying behavior.
• Family, social and cultural influences
affect self concept.
 Buyer’s decision process
• Step-1
• Problem Identification/Need
Recognition
• No problem arise, no purchasing decision
• Marketer has to create need for their product
• Difference between actual state and desired state
• Need arise through TV ad, magazines etc.
• ( MRF, Tata Sky plus, close up ,bike)
 Buyer’s decision process
• Step-2
• Development of decision criteria
• Consultation with friend, relatives about products
• Opinion leader
• Step-3
• Search for alternatives
• Searching for alternatives through media,
magzines,newspapers,etc
• Personal sources, public sources. commercial
sources
 Buyer’s decision process
• Step-4
• Evaluation of alternatives
• Weightage given on the parameters ( taste
drive)
• Resale value
• After sales services
• Step-5
• Decision
• Decision of buying can be changed because
of various reasons.
 Buyer’s decision process
• Step-6
• Post purchase evaluation
• Satisfied or unsatisfied customer
• Customer anxieties called Cognitive
Dissonance.( Imbalance between
knowlodge,attidtdes and beliefs)
• Rejected alternatives provides desirable features
that chosen alternatives do not provide.
 Industrial buying behavior Vs
Domestic buying behavior
• Buying motives
• Domestic buyers purchase product for own
consumption.
• Industrial buyer purchase product for adding
value to the product which is then sold to another
customer.
• Organization purchase the product to improve
their own efficiency and work environment.
( Office machines)
• Orgasitional motives are more rational than
psychological.
• Domestic buyers motives more psychological
than rational.
 Industrial buying behavior Vs
Domestic buying behavior
• Size of buyer
• Orgasitional buyers are few but the quantity they
purchase in bulk.
• Domestic buyers are large in numbers but the
quantity is very less.
• Okrgasitional buyer budget of purchase is in lakh
of rupees.
• Domestic buyers budget never exceed a few
thousand Rs.
 Industrial buying behavior Vs
Domestic buying behavior
• Risk in purchases
• Risk in orgasitional purchases are higher than
domestic purchase.
• Previous experience with supplier, vender,
supplier standing in the industry are some factors
that help organization to reduce the risk.
• Purchase decisions
• The cost and risk of industrial purchase is high so
these decisions are taken jointly by involving
many individuals.
• Individuals can take decision in domestic
purchase.
 Industrial buying behavior Vs
Domestic buying behavior
• Concentration of buyers
• Orgasitional buyers are concentrated in same
geographical area.
• Domestic buyers are spread everywhere.

• Adherence to specification
• Orgasitional buyers they are stick to their product
specification because it affect their
efficency,priduct quality, after sales service,
market share and ROI.
• Domestic buyers do not so rigid to their
specification.
 Customer values and
satisfaction
“Customer’s perceived value is the bundle of
economic, functional and psychological
benefits that customer expects from a
given market offering.”
The idea of value of maximation
Total customer benefits
• Emotional/self expressive benefit
• Service benefits
• Performance benefit
• Brand/company benefits
• Product benefit
 Classification of customer values

• Functional values- ( Physical performance)

• Social values- ( gifts, entertainment
products, washing soap)
• Emotional values- ( Health care products)
• Conditional values
• Products are used in particular conditions( coffee,
sunscreen lotions, warm clothes in cold area)
• Universal values ( satisfying the needs of
customer)
• Personal values ( satisfying wants of customer)
 Customer satisfaction
• Customer purchase the product with some
expectations.
• Compare the performance of the product with
satisfaction.
• Performance match with expectation- satisfied
• Performance exceeds with expectation- delighted
• Performance fall below with expectation-
dissatisfied
• Satisfied customer- brand loyal, rentation of
customer
 Customer delight
• Every customer has some expectations
from the product.
• When the product satisfied beyond his
expectation he delighted.
• He became brand ambassador of that
product.