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Consumer Markets and Consumer Buyer Behavior

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. Study consumer behavior to answer: How do consumers respond to marketing efforts the company might use?

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SIMPLE MODEL FOR CONSUMER BEHAVIOUR

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ul C

re u
Motives

So c ia l
Attitudes

Needs

Business

Consumer Purchase Decision Learning

Family

Perception Personality

Economic

Model of Consumer Behavior Model of Consumer Behavior

Product Price Place Promotion

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Marketing and Marketing and Other Stimuli Other Stimuli

Economic Technological Political Cultural

Buyers Decision Process

Buyers Black Box Buyers Black Box

Characteristics Affecting Consumer Behavior

Product Choice Brand Choice Dealer Choice

Buyers Response Buyers Response

Purchase Timing Purchase Amount

Characteristics Affecting Characteristics Affecting Consumer Behavior Consumer Behavior

Culture Social Personal Psychological

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Buyer Buyer

Factors Affecting Consumer Behavior: Factors Affecting Consumer Behavior: Culture Culture
Most basic cause of a person's wants and Most basic cause of a person's wants and behavior. behavior. Values Values Perceptions Perceptions
Subculture Subculture Social Class Social Class
Groups of people with shared People within a social class Groups of people with shared People within a social class value systems based on common tend to exhibit similar buying value systems based on common tend to exhibit similar buying life experiences. behavior. life experiences. behavior. Occupation North Indian Consumers North Indian Consumers Occupation African American Consumers Income African American Consumers Income Asian American Consumers Asian American Consumers Mature Consumers Mature Consumers Education Education Wealth Wealth

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Factors Affecting Consumer Behavior: Factors Affecting Consumer Behavior: Social Social
Groups Groups Membership Membership Reference Reference Family Family Husband, wife, kids Husband, wife, kids Influencer, buyer, user Influencer, buyer, user

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Social Factors Social Factors

Roles and Status Roles and Status

Factors Affecting Consumer Behavior: Factors Affecting Consumer Behavior: Personal Personal
Personal Influences Personal Influences
Age and Family Life Cycle Age and Family Life Cycle Stage Stage Economic Situation Economic Situation Occupation Occupation

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Personality & Self-Concept Personality & Self-Concept

Lifestyle Identification Lifestyle Identification

Activities Activities Interests Interests Opinions Opinions

VALS 2 VALS 2

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Actualizers Abundant Resources Actualizers Abundant Resources Action Oriented

Principle Oriented Status Oriented

Fulfilleds Fulfilleds

Achievers Achievers

Experiencers Experiencers

Believers Believers

Strivers Strivers

Makers Makers

Strugglers Strugglers Minimal Resources Minimal Resources

Factors Affecting Consumer Behavior: Factors Affecting Consumer Behavior: Psychological Psychological
Motivation Motivation

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Beliefs and Beliefs and Attitudes Attitudes

Psychological Factors

Perception Perception

Learning Learning

Maslows Hierarchy of Needs Maslows Hierarchy of Needs

Self Actualization
(Self-development)

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Esteem Needs (self-esteem, status) Social Needs

(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)

Types of Buying Decisions Types of Buying Decisions

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High Involvement Significant differences between brands Few differences between brands

Low Involvement

Complex Buying Behavior DissonanceReducing Buying Behavior

VarietySeeking Behavior Habitual Buying Behavior

The Buyer Decision Process The Buyer Decision Process

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Need Recognition Need Recognition Information Search Information Search Evaluation of Alternatives Evaluation of Alternatives Purchase Decision Purchase Decision Postpurchase Behavior Postpurchase Behavior

DECISION MAKING PROCESSES

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EXTERNAL INFLUENCES Culture Subculture Demographics Social Status Reference Groups Family Marketing Activities

Experiences and Acquisitions

SITUATIONS Problem Recognition Information Search

INTERNAL INFLUENCES Perception Learning Memory Motives Personality Emotions Attitudes

SELF-CONCEPT and LIFESTYLE

Desires Needs

Alternative Evaluation and Selection Outlet Selection and Purchases Post-purchase Processes

Experiences and Acquisitions

SITUATIONS

The Buyer Decision Process The Buyer Decision Process

Step 1. Need Recognition Step 1. Need Recognition

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Difference between an actual state and a desired state Difference between an actual state and a desired state

Need Recognition Need Recognition

Internal Stimuli Internal Stimuli Hunger Hunger

Thirst Thirst A persons normal A persons normal needs needs

External Stimuli External Stimuli

TV advertising TV advertising

Magazine ad Magazine ad Radio slogan Radio slogan Stimuli in the Stimuli in the environment environment

The Buyer Decision Process The Buyer Decision Process

Step 2. Information Search Step 2. Information Search
Personal Sources Personal Sources Commercial Sources Commercial Sources Public Sources Public Sources Experiential Sources Experiential Sources

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Family, friends, neighbors Most influential source of information Advertising, salespeople Receives most information from these sources Mass Media Consumer-rating groups Handling the product Examining the product Using the product

The Buyer Decision Process The Buyer Decision Process

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

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Step 3. Evaluation of Alternatives Step 3. Evaluation of Alternatives

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

The Buyer Decision Process The Buyer Decision Process

Step 4. Purchase Decision Step 4. Purchase Decision
Purchase Intention Purchase Intention Desire to buy the most preferred brand Desire to buy the most preferred brand Unexpected situational factors

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Attitudes of others

Purchase Decision Purchase Decision

The Buyer Decision Process The Buyer Decision Process

Consumers Expectations of Consumers Expectations of Products Performance Products Performance Products Perceived Performance

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Step 5. Postpurchase Behavior Step 5. Postpurchase Behavior

Satisfied Satisfied Customer! Customer!

Dissatisfied Dissatisfied Customer Customer

Cognitive Dissonance

Stages in the Adoption Process Stages in the Adoption Process

Awareness Awareness Interest Interest Evaluation Evaluation Trial Trial Adoption Adoption

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Adoption of Innovations Adoption of Innovations

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Percentage of Adopters

Early Majority

Late Majority

Innovators

Early Adopters
13.5%

34%

34%

Laggards

16%

2.5%

Time of Adoption Late

Early

Influences on the Rate of Adoption Influences on the Rate of Adoption of New Products of New Products
Can results be easily observed or described to others?

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Communicability

Relative Advantage
Is the innovation superior to existing products?

Can the innovation be used on a trial basis? Is the innovation difficult to understand or use?

Divisibility

Product Characteristics

Complexity

Does the innovation fit the values and experience of the target market?

Compatibility