Consumer Buying

Behavior
Prof. Ahimpreet Jurry
Marketing Management
PGP/SS/2010-12//SEM1

Why do we need to study

Consumer Behaviour?

Because no longer can we take

the customer/consumer for
granted.

Failure rates of new products

introduced
Out of 11000 new products
introduced by 77 companies, only 56%
are present 5 years later.
Only 8% of new product concepts
offered by 112 leading companies
reached the market. Out of that 83%
failed to meet marketing objectives.

All managers must become

astute analysts of consumer
motivation and behaviour

Can Marketing be
standardised?
No.
Because cross - cultural styles,
habits, tastes, prevents such
standardisation.

Language Problems
Please leave your values at the desk - Paris hotel
Drop your trousers here for best results Bangkok laundry
The manager has personally passed all water
served here - Acapulco restaurant
Because of the impropriety of entertaining guests
of the opposite sex in the bedroom, it is suggested
that the lobby be used for the purpose. - Zurich
hotel
Ladies are requested not to have children in the
bar.- Norway bar

Consumer Buying Decision Process

Problem
Recognition

Purchase
Decision

Information
Search

Evaluation of
Alternatives

Post-Purchase
Evaluation

Types of Buying Behavior

Routine Response
Limited Decision
Extension Decision
Impulse Buying

Factors Influencing
Consumer Behavior
Personal
Psychological
Social
Cultural

Personal Factors
Age
Life-Cycle Stage

Stages in Family Life-Cycle

1.
2.
3.
4.
5.
6.
7.
8.
9.

Single
Newly Married Couples
Full Nest I
Full Nest II
Full Nest III
Empty Nest I
Empty Nest II
Solitary Survivor
Solitary Survivor, Retired

Personal Factors
Age
Life-Cycle Stage
Occupation
Economic Circumstances
Life Style

Psychological Factors
Wants

Based on a want or desire to

have something. Not a
necessity.

Psychological Factors
Motivation:
Freud
Maslow
Hierarchy of Needs

Psychological Factors
Motivation
Perception

The process by which an individual

selects, organizes, and interprets inputs
to create a meaningful picture of the
world.
Selective Exposure
Selective Distortion
Selective Retention

Psychological Factors
Motivation
Perception
Learning

Changes in an individuals behavior

arising form experience

Psychological Factors
Motivation
Perception
Learning
Beliefs

Descriptive thoughts that a person holds

about something

Psychological Factors
Motivation
Perception
Learning
Beliefs
Attitudes

Enduring favorable or unfavorable

cognitive evaluations emotional feelings
and action tendencies

Functional Factors
Needs
Need over wants. Delivers to a
real need to have something.

Social Class
Relatively homogenous, enduring
divisions in a society,
hierarchically ordered with
members sharing similar values,
interests, and behaviors.

Family Influence on Buying

Behavior
Husband-Dominant
Wife-Dominant
Equal

Culture & Subcultures

Cultures
The accumulation of values, knowledge, beliefs,
customs, objects, and concepts that a society
uses to cope with its environment

Subcultures
Groups of individuals who have similar value and
behavior patterns within the group but differ
from those in other groups.

Examples of Buying Motives:

Psychological or Functional?
A senior wants to impress his
date at the prom .
His primary motive is ?

Psychological

Examples of Buying Motives:

Psychological or Functional?
A girl wants to remember her
grandmother on her birthday.
Her primary motive is?

Psychological

Examples of Buying Motives:

Psychological or Functional?
A homemaker needs a new washing
machine and has had good
experiences with Sears.
Her primary motive is ?

Functional

Examples of Buying Motives:

Psychological or Functional?
A teacher wants to buy a practical
car to be used for family
transportation.
Her/His primary motive is ?

Functional

Examples of Buying Motives:

Psychological or Functional?
A career woman always buys Liz
Claiborne clothes.
Her primary motive is?

Psychological

Examples of Buying Motives:

Psychological or Functional?
An overweight 40 year old man wants
to loose weight so that he can reduce
his blood pressure.
His primary motive is?

Functional

Examples of Buying Motives:

Psychological or Functional?
A homeowner needs to mow their
lawn.
Their primary motive is?

Functional

Consumer Buying Behavior Competency

Functional
Motive
The price is 40
cents off the
regular price.
It never needs
ironing.
Diamonds are
forever.
Serving you since
1971.
Ninety-day
warranty.

Psychological
Motive

Consumer Buying Behavior Competency

Running shoe with

built-in arch.
Its all the rage
colored action wear
and style.
Wheatiesthe
breakfast of
champions!
Steel-belted radial
tires warranted for
40,000 miles
A watcha gift she
will treasure
always.

Functional
Motive

Psychological
Motive

Consumer Behavior Model

(Stages of Buying Process)
Passive Information Gathering Receiving and processing of
information regarding existence,
quality, services, stores,
convenience, pricing, advertising
that consumer might consider in
making a purchase

Consumer Behavior Model

(Stages of Buying Process)
Need Recognition - Consumer
recognizes a need or desire for
the product or service. When
the need is high relative to
barriers to resolving need there
is a shop trigger event

Consumer Behavior Model

(Stages of Buying Process)
Active Information
Gathering Comparison of
different products,
brands, colors,
capabilities, etc.

Consumer Behavior Model

(Stages of Buying Process)
Purchase Decision Two decisions. First is
buy or no-buy. If
decision is to buy then
timing of purchase is
second decision.

Consumer Behavior Model

(Stages of Buying Process)
Transaction - Final
negotiation as to
Price, Store, Credit or
Cash, etc. An
opportunity for
retailers to market
extras.

Consumer Behavior Model

(Stages of Buying Process)
Post Purchase
Evaluation - Did the
product and retail
experience meet the
consumers
expectations

Consumer Buying
Behavior