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c It studies how individual, groups and

organization select, buy, use and dispose off
products and experiences to satisfy their
needs and desires
‘




c Internal or Psychological factors
c Social factors
c Cultural Factors
c Economic Factors
c Personal Factors
c Environment Factors
c Other Factors
%  
 



c dotivation
c Perception
c Learning
c Beliefs and attitudes
c Goals
c Risk & Uncertainty
c Personality
c Self-concept
Ú
 
 
 
c Jhe utilitarian or instrumental functions
c Jhe ego-defensive function
c Jhe value-expressive function
c Jhe knowledge function
  ‘ 
 
c Salient features are those features which the customer
use to make a judgment about a product.
c Salient features are based on cognitive system.
c Cognitive system can hold small number of facts in
mind at once.
c Jhese features are most important to the customer.
c dost common form of advertising appeal
3

 
 
 
   


c Údd a new salient belief

c Change the strength of the salient belief
c Change the evaluation of existing belief
c daking an existing belief more salient (prominent)
¬   


   

 



d


   
 

 

  


 
 

    

 

 
  
 

J   




 
Jypes of Risk Explanation Examples

Physical Risk Jhe fear of Injury Buying a toy with

from the product sharp edges

Financial Risk Losing or wasting Buying a car that

money offers low mileage

Functional Risk Finding out that the Buying a local heater

product will not do
the job you bought it
for
Psychological risk Jhe fear of looking Buying an out fit
foolish which is very new
trend in market

 

 
‘  
Family may well adopt different roles according to the
decision-making stage.
Stages of Family Life Cycle:
c Single/Bachelor stage
c Newly darried Couple
c Full nest I
c Full Nest II
c Full Nest III
c Empty Nest I
c Empty Nest II
c Solitary Survivor
c Retired Solitary Survivor
      

 
c Observing
c daking Request
c daking Selection
c daking assisted purchase
c daking independent purchase

 


Ú reference group is a group of people, with whom an
individual associates. It is a group of people who strongly
influence a personǯs attitudes, value and behavior
directly or indirectly
c dembership or contractual groups or Formal group
c Primary or Normative group or Informal group
c Secondary Groups
c Úspirational Groups
c Dissociative or avoidance groups
c Indirect group
c Comparative Group
CULJURÚL FÚCJORS
Cultural factor consist of

c Culture: fundamental determinant of a personǯs want

and behavior. Person acquires set of values, perception
preferences and behavior through family and other key
institutions
c Sub-culture: nationalities, religions, racial group and
geographic regions
c Social Class: upper, middle and lower
¬

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c Personal Income
c Family income
c Income Expectation
c Savings
c Liquid Ússets of the customer
c Consumer Credit
c Other Income Factor
PERSONÚL FÚCJOR
c Úge
c Occupation
c Income
c Life style

%  Ú‘Ú
c Physical surroundings
c Social surroundings
c Jime
c Jask
c Úntecedent state
w%‘‘  % 
c Initiator: a person who first suggests the idea of buying
the particular product or services
c Influencer: Ú person whose view or advice influences
the decision
c Decider: Ú person who decides on any component of a
buying decision; whether to buy, what to buy, how to
buy, or from where to buy
c Buyer: Jhe person who makes the actual purchase
c User: Ú person who consumes or uses the product or
services
%   

c Low level: attributes irrelevant to consequences
c dedium Level: attributes link to function
c High Level: attributes are linked to end goals or values

c Jhe cost of purchase relative to income

c Jhe amount of time for which the purchase will be
owned
c Extent to which purchase reflects the self-image
   


 


    
c Brand Loyalist
c Routine brand buyers
c Information seeker
c Brand switcher

 
c Buying motive is the urge to satisfy a desire or need
that makes people buy goods or services.
c Behind every purchase there is a buying motive.
c Jhis refers to the thoughts, feelings, emotions and
instincts which arouse in the buyers a desire to buy an
article.

 
J

   


Primary Reason to purchase a Purchase of a new car to

product class replace an old car
Secondary Jhe reason to purchase a Purchase of Jata Indica
particular brand instead of Zen
Rational Jhe reason based on Large Family so Jata
logical assessment of Sumo
buyerǯs situation
Emotional Jhe reason related to Hyundai Santro..Sharukh
consumerǯs feelings about Khan Fan
the brand
Conscious Connected with dahindra Úrmada for
awareness Rough Ride
Dormant Reason below the Ferrari to become
conscious level dichael Schumacher



 
c Jhose influences and reasons, which prompt a buyer
to choose a particular product in preference to other
products. Úll those characteristics of a product, which
induce a buyer to buy it in preference to other
products.

c Emotional Product buying motives

c Rational Product buying motives
c It  
 
refers to those considerations or reasons, which
prompt a buyer to buy the product wanted by him
from a particular shop in preference to other shops.

ȈEmotional Patronage buying motives

ȈRational Patronage buying motives

   
c Jhe Economic dodel: Buyer is rational man and his buying
decisions are totally governed by the concepts of utility
c Jhe Learning dodel: takes it from Pavlovǯs stimulus and it says
that buyer behavior can be influenced by manipulating the
drives, stimuli and responses of the buyer. E.g Údvertisement
c Jhe Psychoanalytical model: based on Freudian psychology. Id,
Ego Superego.
c Jhe Sociological dodel: Influenced by social class
c Jhe Stochastic dodel: Based on the assumption that earlier
observed behavior forms a valid basis for predicting the future
c Jhe Systems dodel: Recent/modern model also known as
Nicosia dodel