3-1

CONSUMER BEHAVIOR : DEFINITION

Consumer Behavior is the study of how
individuals, group and organizations
select, buy, use and dispose of goods,
services, ideas or experiences to satisfy
their needs and wants. (individuals &
households who buy goods and services
for personal consumption.)
To find
What,Why,When, Where and Frequency of
buying
3-2
Consumer Buying Behaviour: Key
Questions
3-3
Who is Important?

Most purchases individual confectionary,
beer, etc
Many decisions by group/family/couple -
(buying centre/decision making unit). There
are 5 roles

Initiator
Starts process, may gather information to aid decision
Influencer
Persuade others in group re the outcome of decision,
typically gathers information and tries to impose their choice
Decider
He/she who pays ultimate power of veto
Buyer
Person who conducts transaction
User
Consumer/user of the product
3-4
What are the choice criteria?

Technical
Reliability
Durability
Performance
Comfort
Taste
Convenience
Economic
Price
Value for money
Life time costs
Residual value
Running costs
Social
Personal
Status
Social
Belonging
Fashion

Self-Image
Ethics
Emotions

3-5
Day of the week? advertise toys on Saturday morning (pester
power) for the afternoon
Stay open on Sunday have the time to review cars, etc
Last minute?

Not buying it in Tescos, Ill buy it on the Kings Road?
It will look and sound cooler
Ill buy it online?
It will sound cooler
Ill buy it at the airport?

When do they buy?
Where do they buy?
3-6
Model of Buyer Behavior

Marketing and
Other Stimuli







Buyers Black Box







Buyers Response




Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
Buyer
Characteristics
Buying
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Purchase
Timing
Purchase
Amount
3-7
Factors Influencing Consumer Behavior



Culture


Sub-
culture


Social
class
Social


Reference
groups


Family


Roles
and
status

Personal
Age and
life-cycle
Occupation
Economic
situation
Lifestyle
Personality
and
self-concept
Psycho-
logical
Motivation
Perception
Learning
Beliefs and
attitudes
Buyer
Cultural
3-8
Factors Affecting Consumer Behavior:
Culture
Culture
Most basic cause of a person's wants and
behavior.
Values, Perceptions, Wants & Behavior

Social Class
Societys relatively
permanent & ordered
divisions whose members
share similar values,
interests, and behaviors.
Measured by: Occupation,
Income, Education, Wealth
and Other Variables.

Subculture
Groups of people with
shared value systems
based on common life
experiences.
3-9
Groups
Membership
Reference

Factors Affecting Consumer Behavior:
Social
Family
Family of orientation
Family of procreation
Roles and Status

Social Factors

3-10
Reference Group
Primary Reference Group:
Membership Reference
Aspiration reference
Disclaimant reference
Avoidance Group
Secondary Reference Group:
Relation formal but less interaction
Religious ,Trade unions, professional groups

3-11
Factors Affecting Consumer Behavior:
Personal
Personal Influences
Age and Life Cycle
Stage
Occupation
Economic Situation
Lifestyle Identification
Activities, Behavior Opinions
Interests
Personality & Self-Concept
3-12
Psychological
Factors
Motivation
Perception
Learning
Beliefs and
Attitudes
Factors Affecting Consumer Behavior:
Psychological

3-13
Psychological Factors
Motivation
Driving force activities towards unfulfilled needs
and wants
Maslows Hierarchy of needs ( Physical, Safety,
Social,Esteem,Self actualization need )
Perception
Process of selecting ,organizing & interpreting
stimuli into meaningful thoughts & pictures
Learning
Experience
Builds beliefs and attitude towards a product.
3-14
Buying roles
Initiator
Influencer
Decider
Buyer
User
Maintainer
Disposer
3-15
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision




Post-purchase Behavior
Buyer Decision Process
3-16
External Stimuli

TV advertising
Magazine ad
Radio slogan
Stimuli in the environment

Internal Stimuli

Hunger
Thirst
A persons normal needs

Need Recognition
Buyer Recognizes a Problem or Need
Step 1:Need Recognition
3-17
Family, friends, neighbors
Most effective source of
information
Advertising, salespeople
Receives most information
from these sources
Mass Media
Consumer-rating groups
Reports
Handling the product
Examining the product
Using the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources



Step 2: Information Search
3-18
Consumer May Use Careful
Calculations & Logical Thinking
Consumers May Buy on Impulse and
Rely on Intuition
Consumers May Make Buying Decisions
on Their Own.
Consumers May Make Buying Decisions
Only After Consulting Others.
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
Step 3: Evaluation of Alternatives
3-19

Purchase Intention
Desire to buy the most preferred brand


Purchase Decision
Brand,Location,Price,Payment,Support Services

Attitudes of
Others
Unexpected
Situational
Factors


Step 4:Purchase Decision
3-20

Consumers Expectations of
Products Performance

Dissatisfied Customer Satisfied Customer!
Products Perceived Performance

Cognitive Dissonance
Step 5 : Post Purchase Behavior
3-21
TOTAL
SET
AWARENESS
SET
CONSIDERATION
SET
CHOICE
SET
DECISION
E.g. Laptops,Mobiles,
Watches,Formal
Suits,Washing
Machine,LCD,Cameras
Sets involved in decision making
3-22
Types of Buying decision behavior
High
Involvement
Significant
Differences
Between brands
Few
Differences
Between brands
Low
Involvement
Complex
Buying
Behavior
Variety-
Seeking
Behavior
Dissonance-
Reducing Buying
Behavior
Habitual
Buying
Behavior
3-23
What is a Business Market?
Business Buyer Behavior refers to the
buying behavior of all the organizations
that buy goods and services for use in the
production of other products and services
that are sold, rented, or supplied to others.

The business market is huge and involves
many more rupees and items than do
consumer markets.

3-24
Difference
Organizational markets
More time

Buyers very few
More specialized and
customized service
High Quantity
Demand more fluctuating
Predominance of raw and
semi finished goods
Minimum intermediaries
Consumer markets
Less time for purchase
process
Higher no of buyers
Customization is tough

Low Quantity
Less fluctuating
Finished goods
Higher intermediaries


3-25
Difference
Consumer buying
behavior
Buy products for
personal, family or
households
No specialized skills and
any member can do it
Not particular about
satisfaction
Buy
Quality and price
Organizational buying
behavior
For further production,
usage in operating and to
resale to other consumers
Specialists

Exact specification

Prefer to lease
Delivery time , technical
assistance ,post service
3-26
Buying Decision process
3-27
Participants in the Business Buying
Process: The Buying Center
Buying Center
Users Gatekeepers
Buyers Deciders
Influencers
3-28

The buyer routinely reorders
something without any
modifications.
Straight Re-buy
Modified Re-buy
New Task

The buyer purchases a
product or service for the
first time.

The buyer wants to modify
product specifications,
prices, terms, or suppliers.
Buying Situations in organization