Consumer Markets & Buyer Behaviour

Introduction

Buyer Behaviour It refers to buying behaviour of final consumers individuals or households who buy goods and services for personal consumption. The behaviour is affected by; Culture as also subculture Social factors such as small groups, family and social roles and status

Personal factors such as age & life cycle stage (Young-under 25 yrs, Double Income No Kid-25 to 34, Families 35 to 54, Zoomers 55 yrs and above), occupation, economic situation, lifestyle, personality and self concept (sincerity, competence, sophistication etc.
Psychological Motivation, perception, learning, beliefs and attitudes

Consumer Markets & Buyer Behaviour

Introduction

Types of Buying Decision Behaviour The buying behaviour differ for different products, such as car, house, durables and daily use items High Involvement Significant differences between brands Complex Buying behaviour Low Involvement Variety seeking buying behaviour

Few differences between brands

Dissonance reducing buying behaviour

Habitual buying behaviour

Consumer Markets & Buyer Behaviour

Introduction

Complex Buying Behaviour When the buyer is highly Involved, due to product being expensive, risky, purchased infrequently, and perceive significant difference between the various brands available.

Examples could be a personal computer, a car etc and needs to study a lot or even take a trial, get opinion from friends and colleagues. Sometimes he needs to learn more about the use of the product.
The seller has to therefore provide a detailed literature of the product giving details of the features, specifications and sometimes proof as also recommendations from some eminent users (or brand ambassadors).

Dissonance (meaning lacking harmony) Reducing Buying Behaviour When the buyer is highly Involved, due to product being expensive, risky, purchased infrequently, and perceive little difference between the various brands available. Examples could be many durable products which are expensive but have little difference. The marketer has to therefore assure buyer by suggesting the features and providing after sales service of the product

Consumer Markets & Buyer Behaviour

Habitual Buying Behaviour

Introduction

When the involvement of the buyer and brand difference both are low and the products are bought regularly Examples could be salt, where the customer goes to the store and just buys it without giving much attention to brand, rather buys by habit. The buyers normally decide when they see the ad and remember it at the time of purchase. They do not have any loyalty for the brand but they buy because they have a better recall for the same. It just becomes a habit The marketer may therefore offer different prices, sales promotion schemes, repeated ads (may be small) so that the consumers remember and have a better recall when they see the product in the store

Variety Seeking Buying Behaviour When the buyer involvement is low but significant difference in brand exists. Examples could be cookies, which may be bought by consumers and later change for taste or for some other value (a chocolate or banana drink). The marketer has to try and get a better shelf space, keep heavy stocks at points of sales, give frequent ads in media, special deals, frequent promotions, free samples, free coupons etc.

Consumer Markets & Buyer Behaviour

Introduction

The Buyer Decision Process

Need Recognition

Information Search

Evaluation of alternatives

Post Purchase Behaviour

Purchase decision

Consumer Markets & Buyer Behaviour

Introduction

The Buyer Decision Process for NEW PRODUCTS

a) This is called as the adoption process and the stages of adoption process is as under;

Awareness

Interest

Evaluation

Adoption

Trial

Consumer Markets & Buyer Behaviour

b) Individual differences in Innovativeness Like a bell curve;
13.5%

Introduction

34%

34%

16%

2.5%

The first part is 2.5 % who are classified as innovators, who adopt a new idea, and want to be the first user of the product and take risk. 13.5 % buyers are the early adopters and they buy because they are guided by respect and form the opinion leaders. The early adopters, 34% are those who are not opinion leaders, but adopt new ideas before an average person The late majority are skeptical (always doubt) and adopt only after majority have bought it. The laggards 16% are those who would buy when it has become a tradition.

Consumer Markets & Buyer Behaviour

Introduction

c) Influence of Product Characteristics on rate of Adoption The product characteristics play an important role in adoption by the consumers. Some products get adopted overnight while others may take very long. Following five characteristics are important; 1. The relative advantage over the existing products. The greater the advantage, better is the relative acceptance. 2. Compatibility of the product fitting the values and experiences of potential customers.

3. Complexity of the degree to which innovation is difficult to understand or use.

4. Divisibility the degree to which innovation may be tried on a limited basis 5. Communicability the degree to which the results of using new products can be explained to others for using

d) Consumer behaviour across international border

The understanding of the consumer behaviour by itself is a difficult task, within the country the companies are operating within own country, it is more difficult in other countries. The values, attitudes, behaviour and culture are different. Some of these may be common, but still the marketers must study these before going across the borders or global.