Consumer Markets & Buyer Behavior

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What Influences Consumer Behavior?
 Buying behavior is influenced by:
 Marketing Mix
 Macro Environment
 The above two factors further influence
 Cultural factors
 Social factors
 Personal factors
 Psychological factors

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 Social Factors:
 Types of Reference Group:
 Membership
 Aspirational
 Disclaimant
 Avoidance/Dissociative

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 Personal Factors:
 Age
 Stage in life cycle
 Occupation
 Economic circumstances
 Lifestyle – way of leading life
 Personality – Distinguishing psychological
characteristics that lead to consistent responses to
environment.
 Self-concept

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 Psychological Factors:
 Motivation – Need that is sufficiently pressing to drive
the person to act.
 Perception – Process by which an individual selects,
organizes and interprets information inputs to create
meaningful picture of the world.
 Learning – Involves changing in an individuals’ behavior
arising from experience.
 Beliefs – Descriptive thought that a person holds about
something.
 Attitudes – Set of feelings that make a person react to a
given idea.
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 How buying behavior is understood by the
Marketers?
 Introspective Method
 Retrospective Method
 Prospective Method
 Prescriptive Method

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The Buyer Decision Process
Five Stages:

Need/Problem recognition

Information search

Evaluation of Alternatives

Purchase Decision

Post-Purchase Behavior
 Need/Problem Recognition:

 Needs can be triggered by:

 Internal stimuli
 Normal needs become strong enough to
drive behavior
 External stimuli
 Advertisements
 Friends
 Information Search:
 Sources of information:
 Personal
 Commercial
 Public
 Experiential
Successive Sets Involved in
Consumer Decision Making
Final Decision

Choice Set:

Consideration Set:

Awareness Set:

Total Set:
Evaluation of Alternatives:

 Evaluation procedure depends on the

consumer and the buying situation.
 Most buyers evaluate multiple attributes,
each of which is weighted differently.
 Expectancy Value Model
Purchase Decision:
 Two factors intercede between purchase
intentions and the actual decision:
 Attitudes of others
 Unexpected situational factors
Brand Decision
Vendor Decision
Quantity Decision
Timing Decision
Payment Method Decision
Perceived Risk:
 Functional risk
 Financial risk
 Physical risk
 Social risk
 Psychological risk
 Time Risk
 Post Purchase Behavior:
 Satisfaction is a function of the closeness between
buyer’s expectation and the product’s perceived
performance
 Performance = Expectation, then Customer is
Satisfied.
 Performance > Expectation, then Customer is
Delighted.
 Performance < Expectation, then Customer is
Dissatisfied.
 Exit Vs. Voice option
Some CB Concepts:
 Elaboration Likelihood Model
 Central route Vs. Peripheral route
 Heuristics
 Availability Heuristic
 Representative Heuristic
 Anchoring & Adjustment Heuristic
 Mental Accounting

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