Consumer Buying Behavior

Consumer Buying Behavior

Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption. The term CB is defined as the behaviour that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.

Need for understanding Consumer Behaviour

Shorter Product life cycles Evolving consumer preferences Environmental concerns Faster technology adoption

Model of Consumer Model of Consumer Product Marketing and Marketing and BehaviorStimuli BehaviorStimuli Other Price Other
Place Promotion

Economic Technological Political Cultural Characteristics Affecting Consumer Behavior

Buyers Decision Process

Buyers Black Box Buyers Black Box

Product Choice Brand Choice Dealer Choice

Buyers Response Buyers Response

Purchase Timing Purchase Amount

Factors Influencing Consumer Behavior

Cultural Social
Culture Culture SubSubculture culture Social Social class class Reference groups Family Roles and status

Personal
Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept

Psychological
Motivation Perception Learning Beliefs and attitudes

Buyer

Factors Affecting Consumer Behavior: Culture

Culture is the Most Basic Cause of a Person's Wants and Behavior.
Group of people with shared value systems based on common life experiences Festivals and customs in different parts of the country

Factors Affecting Consumer Behavior: Culture

Culture is the Set of Values, Perceptions, Wants & Behavior Learned by a Member of Society from Family.
Societys relatively permanent & ordered divisions whose members share similar values, interests, and behaviors. Measured by: Occupation, Income, Education, Wealth and Other Variables.

Factors Affecting Consumer Behavior: Social

Groups Groups Membership Membership Reference Reference Family (most Family (most important) important) Husband, wife, kids Husband, wife, kids Influencer, buyer, Influencer, buyer, user user Roles and Status Roles and Status

Social Factors Social Factors

Factors Affecting Consumer Behavior: Personal

Personal Influences Personal Influences
Age and Life Age and Life Cycle Stage Cycle Stage Economic Economic Situation Situation Personality & Personality & Self-Concept Self-Concept

Occupation Occupation

Lifestyle Identification Lifestyle Identification

Activities Activities

Interests Interests

Opinions Opinions

Factors Affecting Consumer Behavior: Psychological

Motivation

Beliefs and Attitudes

Psychological Factors Affecting Buyers Choices

Perception

Learning

Psychological - Motive
A motive is a need that has a sufficient level of intensity. Creating a tension state that drives the person to act. Satisfying the need reduces the felt tension.

Consumer Motives
Buying motives thus are defined as those influences or considerations which provide the impulse to buy, induce action or determine choice in the purchase of goods or service

Consumer Motives
Product Motives
Emotional Product Motives Rational Product Motives

Patronage Motives
Emotional Patronage Motives Rational Patronage Motives

Nature of Motive

Purchase Decision

Desire for money : Purchasing when price falls down Fear : Purchasing Insurance policy Pride : Purchasing premium products Fashion : Rural people imitate urban Possession : purchasing antiques Health : Purchasing health foods .membership in health clubs Comfort : Purchasing micro-oven, washing machine, mixer Love and affection : Purchasing gift items

Psychological - Perception

The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.

PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Perception

Selective Selective Exposure Exposure

Consumer pays attention to certain Consumer pays attention to certain stimuli and ignores others stimuli and ignores others Consumer interprets info so that it is Consumer interprets info so that it is consistent with his beliefs consistent with his beliefs Average consumer only remembers Average consumer only remembers 30% of information heard 30% of information heard

Selective Selective Comprehension Comprehension

Selective Selective Retention Retention

Psychological - Learning

Changes in an individuals behavior arising from experience.

Psychological - Attitude
An attitude describes a persons relatively consistent evaluations, feelings, and tendencies toward an object or idea.

PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Motivation what stimulates behavior to satisfy a need

Maslows Hierarchy of Needs

 How do you know when to shop? What are the triggers that initiate an awareness & search? What are the internal & external sources of these triggers?

Buyer Decision Process

Purchas e Evaluation Decisio purchase Post n of Behavior Alternatives Informatio n Search Need Recognitio n

Need Recognition
Marketing helps consumers recognize (or create) an imbalance between present status and preferred state When a current product isnt performing properly When the consumer is running out of an product When another product seems State Preferred superior to the one currently used

The information search stage

An internal search involves the scanning of one's memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products. An external search may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering information is low.

Personal sources (friends and family) Public sources (rating services like Consumer Reports) Marketer-dominated sources (advertising or sales people)

The evoked

set: a group of

brands from which the buyer can choose

Determinants of External Search

The Buyer Decision Process The Buyer Decision Process

Evaluation of Alternatives Evaluation of Alternatives
Evaluation of Quality, Price, & Features Evaluation of Quality, Price, & Features

Product Attributes Product Attributes

Which attributes matter most to me? Which attributes matter most to me?

Degree of Importance Degree of Importance

What do IIbelieve about each available brand? What do believe about each available brand? Based on what Im looking for, how satisfied Based on what Im looking for, how satisfied would IIbe with each product? would be with each product? Choosing a product (and brand) based on one Choosing a product (and brand) based on one or more attributes. or more attributes.

Brand Beliefs Brand Beliefs

Total Product Satisfaction Total Product Satisfaction

Evaluation Procedures Evaluation Procedures

Buyer Behavior
Other people often influence a consumers purchase decision. The marketer needs to know which people are involved in the buying decision and what role each person plays, so that marketing strategies can also be aimed at these people. (Kotler et al, 1994).

Initiator: the person who first suggests or thinks of the idea of buying a
particular product or service.

Influencer: a person whose views or advice carry weight in making the

final buying decision

Decider: the person who ultimately makes the final buying decision or any
part of it

Buyer: the person who makes the actual purchase User: the person who consumes the product or service
Note: teens are increasingly assuming more of these roles

Think about your past purchase who was in which role?

Relative influence of husbands & wives

Final decision Information search
lamps furniture luggage carpet refrigerator vacations groceries NonRx Toys/games

Child clothing

Wife Dominant

Womens clothing

Pots & pans

Paint wallpaper Mens leisure clothing Mens business clothing

Joint
TV sets stereo Financial planning

camera

Family car

Sport equipment hardware Lawn mower

Extent of role specialization

100 75 50 25

Husband Dominant
0

The Buyer Decision The Buyer Decision Process Process

Desire to buy the most preferred brand Desire to buy the most preferred brand Unexpected situational factors

Purchase Decision Purchase Decision Purchase Intention Purchase Intention

Attitudes of others

Purchase Decision Purchase Decision

The Buyer Decision Process The Buyer Decision Process

Post purchase Behavior Post purchase Behavior
Consumers Expectations of Consumers Expectations of Products Performance Products Performance Products Perceived Performance

Satisfied Satisfied Customer! Customer!

Dissatisfied Dissatisfied Customer Customer

Cognitive Dissonance

Postpurchase Behavior
Cognitive Dissonance
Can minimize through:

Did I make a good decision? Did I buy the right product? Did I get a good value?

Effective Communication Follow-up Guarantees Warranties Underpromise & overdeliver

Cognitive Dissonance
psychological discomfort caused by inconsistencies among a persons beliefs, attitudes, and actions varies in intensity based on importance of issue and degree of inconsistency induces a drive state to avoid or reduce dissonance by changing beliefs, attitudes, or behaviors and thereby restore consistency
Applications: Tendency to avoid information can be countered by eliciting interest, norm of fairness, or perceive usefulness of information Post-decision buyers remorse may be increased by importance or difficulty or irreversibility of decision Counter-attitudinal action, freely chosen with little incentive or justification, leads to attitude change (e.g., new product at special low price)

TYPES OF CONSUMER BUYING BEHAVIOR : There are four types of consumer buying behavior, they are : Routine Response/Programmed Behavior Limited Decision Making Extensive Decision Making Impulse buying

1. ROUTINE RESPONSE/PROGRAMMED BEHAVIOR

Buying low involvement, frequently purchased, low cost items. Examples : Soft drinks, snack foods, milk etc.

2. LIMITED DECISION MAKING

Buying product occasionally. That is when you need to obtain information about unfamiliar brand in a familiar product category. Example: Clothes--know product class but not the brand.

3.EXTENSIVE DECISION MAKING :

Complex high involvement, unfamiliar, expensive and infrequently bought products. Spend a lot of time seeking information and deciding. High degree of risk. Example: Cars, homes, computers, education.

4. IMPULSE BUYING :
No conscious planning.
The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.

Thank You!!!