Consumer Buying Behavior

Content…
• Consumer Buying Behavior (CBB)
• Factors Affecting Consumer Behavior
– Cultural
– Social
– Personal
– Psychological
• Consumer buying behavior process
Definition of consumer Buying behavior…

• Refers to the BUYING BEHAVIOR of final

consumers or market
• Consumer market consists of all the
individuals and households who buy or
acquire goods and services for personal
consumption.
All these consumers make up the consumer market.
The central question for marketers is:
“How do consumers respond to various marketing efforts
the company might use?”
 Model of consumer behavior

Buyer
Product Characteristics

Price Buyer’s
Marketing Buyer
Place & Other Buying Black Response
Stimuli decision
process Box
Promotion
 Characteristics Affecting CBB…
• Cultural Factors
– Exert the broadest and deepest influence on
consumer behavior.
– Marketer needs to understand the role played
by the buyer’s culture, subculture, and social
class.
Cultural
factors

Culture Subculture Social

Class
 • Culture
– Growing up in society, a child learns basic values, perceptions, wants,
and behaviors from family and other important institutions.
– Cultural values are widely held beliefs that state what is desirable and
have some influence on behavior.
– It also influence our consumption.
• Subculture
– Each culture contains smaller subcultures, or group of people with
shared value system based on common life experiences and
situations.
– Includes nationalities, religions, racial groups, and geographic
regions.
– Many subcultures make up important market segments.
– Marketer usually design their products and services according to the
subcultures needs.
 • Social Class
– Almost all society has some form of social class
structure.
– Social classes are society’s relatively permanent and
ordered divisions whose members share similar
values, interests, and behaviors.
– It is not determined by a single factor (Example:
Income)
– It is measured by a combination of occupation,
income, education, wealth and other variables.
 Characteristics Affecting CBB…
• Social factors
– Consumer’s behavior also influenced by social
factors, such as the consumer’s small groups,
family, social roles and status.

Social
factors

Small Family Roles &

groups status
• Groups
– Groups have direct influence and to which person
belongs are called membership groups.
– In contrast, reference groups serve as direct
(Face- to-face) or indirect points of comparison or
refereŶĐe iŶ forŵiŶg persoŶ’s attitudes.
– People often are influenced by reference groups
to which they do not belong.
– Example: Teenager who played soccer hopes to
play for the national team.
• Family
– Family members can strongly influence buyer
behavior.
– There is roles and influence of the husband, wife,
and children on the purchase of different
products and services.
– Husband-wife involvement varies widely by
product category and by stage in the buying
process.
– Buying roles change with evolving consumer
lifestyles.
• Roles and status
– A person belongs to many groups – family,
clubs, organizations.
– The person’s position in each group may be
defined in terms of both roles and status.
– A role consists of the activities people are
expected to perform according to the persons
around them.
– Each role carries a status reflecting the general
esteem given to it by society.
 Characteristics Affecting CBB…
• Personal Factors
– A buyer’s decisions also are influenced by
personal characteristics such as the buyer’s:
• Age
• Occupation
• Economic
• Situation
• Lifestyle
• Personality
• Self-Concept
• Age and life-cycle stage
– People change the goods and services they buy
over their lifetimes.
– Buying is also shaped by the stage of the family
life cycles, the stages through which families
might pass as they mature over time.
– However, today marketers prefer to focus on
alternative, non-traditional stages. (Exp: unmarried
couples, single parents, childless parents)
• Occupation
– Occupation affects buying behavior. (white vs blue
collar)
• Economic Situation
– Recess in economic will resulting consumers tent
to
save money rather than spending
• Lifestyle
– Involving Activities, Interest and Opinion (AIO)
• Personality and self-concept
– Unique psychological characteristics.
– Self-confidence, dominance, sociability
 Characteristics Affecting CBB…
• Psychological Factors
– A person’s buying choices are further influened
by four major psychological factors.

Psychological
Factors

Motivation Perception Learning Beliefs &

Attitudes
• Motivation
– Can be viewed as an internal force that
directs people to act in a particular way to
satisfy a particular need.
– Arising from the need.
– Needs become motive when it is aroused to a
sufficient level of intensity.
– Motive will direct person to seek satisfaction.
Maslow's hierarchy of needs:
• Perception
– Is the process by which people select,
organize, and interpret information to form a
meaningful picture of the world.
– A motivated person is READY to act.
– HOW the person acts is influenced by his/her
perception of the situation.
– All people receive info from 5 senses,
– But interpret the info in individual way
• Learning
– Desirable changes in an indiv idual’s behav ior
arising from experience.
– Learning occurs interplay of:
• Stimulus
– Environment that capable of eliciting a response
• Drive
– Is a motivating force that directs behavior
• Response
– Reaction to the stimulus and drive
• Reinforcement
– Reward or punishment receive as a result of your response
• Beliefs & Attitudes
– Belief : a descriptive thought that a person has
about something.
– Example?
– Attitude: person’s relatively consistent
evaluations, feelings, and tendencies toward
an object or idea.
 Buyer Decision Process

Purchase
Decision
Evaluation Postpurchase
of Alternatives Behavior
Information
Search
Need
Recognition
 BUYER ROLES
INITIATOR
• First individual who suggests product/service should be
evaluated/purchased.
INFLUENCER
• Provides view and advice which are valued by others and
can subsequently influence the final decision.
DECIDER
• The individual who will take the decision in the buying
process at what, how , when and where to buy (store
choice), etc.
BUYER
• The individual who actually makes the purchase
USER
• The individual who consumes or users the service/product.
 Types of Buying Decision
Behavior
High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between Behavior Behavior
brands
Few Dissonance- Habitual
differences Reducing Buying Buying
between Behavior Behavior
brands