Consumer market & Buyer

behavior.

• There is an old saying in Spain “To be a

bullfighter, you must first learn to be a
bull.”
• A customer is the most important person ever in
this office - - - - in person or by mail.

• A customer is not dependent on us – we are

dependent on him.

• A customer is not interruption of our work – he is

purpose of it.

• We are not doing favor by serving him – he is

doing us a favor by giving us the opportunity to do
so.

• A customer is not someone to argue – nobody ever

won an argument with customer.

• A customer is person who brings us his wants – it

is our job to handle them profitably to him & to
ourselves.
 A Model of Consumer Behavior.

• Who constitutes the market? ( Occupants )

• What does market buy? ( Objects )
• Why does the market buy? ( Objectives )
• Who participates in the buying? ( Organization )
• How does the market buy? ( Operations )
• When does the market buy? ( Occasion )
• Where does the market buy? ( Outlets )
• How do the buyer’s characteristics – cultural,
social, personnel & psychological influence buying
behavior?
• How does the buyer make purchasing decisions?
 Model of buyer behavior.
• Input –

Marketing Other Stimuli

Stimuli
Product Economic
Price Technological
Place Political
Promotion Cultural
• Process -

Buyer Buyer’s decision

characteristics process
Cultural Problem recognition
Social Information search
Personnel Evaluation
Psychological Purchase decision
Post purchase
decision
• Output –

Buyer’s decision
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
 I. Cultural factors.

• Culture.
o Set of values, perception, preferences &
behavior.

• Sub-culture –
o Nationality, religious groups, racial groups,
geographical areas.

• Social class –
o Upper-upper, lower-upper, upper-middle,
middle class, working class, upper-lower,
lower-lower.
 II. Social factors.

• Reference groups –
1. Primary group – Family, friends,
neighbors.
2. Secondary groups – Religious,
professional.
3. Aspiration.
4. Disassociate group.
• Family –
1. Husband dominated.
2. Wife dominated.
3. Equal.
• Roles & status.
 III. Personnel factors.
• Age & life cycle stage.
• Occupation.
• Economic circumstances.
• Lifestyle.
o Pattern of living in the world as expressed
in person’s activities, interests & opinion.
• Personality & self concept.
o Self concept or self image.
Actual, ideal & others self concept.
 IV. Psychological factors.

• Motivation.
• Perception – Selects, organizes & interprets
information.

a. Selective attention.
b. Selective distortion.
c. Selective retention.
• Learning.
• Beliefs & attitudes.
o Belief is a descriptive thought that a person holds
about something.
o Attitude describes person’s enduring favorable or
uncomfortable cognitive evaluation, emotional
feeling & action tendencies toward some object
or idea.
 Buying motives.

1. Fear. 2. Desire for money.

3. Vanity. 4. Pride.
5. Fashion. 6. Possession.
7. Sex & romance. 8. Love & affection for
others.
9. Health & physical well being.
10. Control & convenience.
 Patronage motives in retailing.

• Location of the store.

• Nature & variety of goods stocked.
• Reputation of the stores.
• Attitude adopted by salesman in stores.
• The service offered by stores.
• The appearance of the stores.
Factors influencing consumer
buying behavior.

Product

Buyer Seller

Situation
 Buying decision process.

1. Buying roles –
o Initiator – who first suggest the idea of
buying a particular product or service.
o Influencer – whose view or advice
influence decision.
o Decider – who decides whether to buy,
what to buy, how to buy or where to buy.
o Buyer – who makes actual purchase.
o User – who consumes or uses the
product or service.
2. Types of buying behavior –

High Low
involvement involvement
Significant Complex Variety –
brand buying seeking
difference. behavior buying
behavior
Few Dissonance – Habitual
difference reducing buying
between buying behavior
brands. behavior.
3. Researching the buying decision
process –

o Introspective – Own probable behavior.

o Retrospective – Asking recent purchaser to
recall events.
o Prospective – Prospective buyers buying
behavior.
o Prescriptive – Ideal way to buy the product.
4. Stages in the buying decision process
–
a. Need recognition –
o Internal or external stimuli.
b. Information search –
o Milder search – heightened attention.
o Active information search.
i. Consumer information sources –
o Personnel – Family, friends, neighbors,
acquaintance.
o Commercial – Advertising, salesperson,
dealers, packaging,
distributors.
o Public – Mass media, consumer rating
organization.
o Experimental – Handling, examining,
using product.
ii. Sets involved in buying process.
Total set – Awareness – Consideration –
Choice – Decision.
c. Evaluation of alternatives –
o Product attributes.
o Importance weights.
o Brand beliefs or brand image.
o Utility function.
o Evaluation procedure.
• Marketers strategy –

o Modify the product.

o Alter beliefs about the brand – DHL –
Jumbo pack.
o Alter beliefs about the competitors brands.
o Alter importance weights – Caption cook.
o Call attention to neglected attributes –
Hamam.
o Shift buyers ideals.
d. Purchase decision –
i. Factors intervene between the purchase
intention & purchase decision.
o Attitudes of others.
o Unanticipated situational factors.
o Perceived risk.
ii. Purchase sub decisions –
o Brand decision.
o Vendor decision.
o Quantity decision.
o Timing decision.
o Payment method decision.
e. Post purchase behavior –
i. Post purchase satisfaction –
o Product expectation & perceived
performance.
o Disappointed – Satisfied – Delighted.
ii. Post purchase actions –
o Dissatisfied customer.
o Takes some action – take no action.
o Take some form of public action.
 Seek redress directly from business firm.
 Take legal action to obtain redress.
 Complain to business, private or government
agency.
o Post purchase use & disposal –
Product –
1. Get ride of it temporarily.
a. Rent it.
b. Loan it.
2. Get ride of it permanently –
a. Give it away.
b. Trade it.
c. Sell it.
d. Throw it away.

To be sold. To be used.
o Direct to consumer.
o Through middle man.
o To middle man.
3. Keep it.
a. Use it to serve original purpose.
b. Convert it to serve a new purpose.
c. Store it.