Marketing Factors: Consumer Buying Behavior

Simple Purchases Aren't Always so Simple

More: Bill O'brien Hunger Pubs Local Restaurants T.G.I. Friday's tweet Print

FlagPost a comment Purchasing decisions include many factors that most consumers are not even aware of. Five steps are involved in nearly every purchase made: need recognition, information search, evaluation of alternatives, purchase decision, and finally post purchase behavior. Even the simplest purchases can include any or all of these steps. (Brown, 2005) Purchases are further influenced by such things as personal, psychological, and social issues. A good market researcher will study the thought process undergone by consumers, compare it with their demographic data, and use the resulting information to market their products. (Armstrong et al, 2005) Consider the simple decision to purchase a meal. When interviewing two subjects regarding the process involved, it becomes apparent that each individual, although having very similar needs, underwent slightly different thought processes to arrive at a decision. When asked what triggered the need to purchase a meal at a local restaurant, Subject A responded with one of Laslow's basic needs; hunger. (Armstrong et al, 2005) Subject B, although also citing hunger; was more interested in having a night out to reward himself for doing well on his diet. (O'Brien, 2006) The search for information was similar for both subjects. Both had preconceived ideas of where to go, and both were willing to drive by the prospective restaurants or call to see how long the wait would be. The quality of the food or service was not as valuable to either subject as was convenience. (O'Brien, 2006) Both subjects also had similar reasons for choosing a particular restaurant, T.G.I. Friday's. They cited loyalty, quality, atmosphere, and service as reasons for being Friday's "regulars." (O'Brien,

2006) Their purchase decision, however, did not match their purchase intention. The convenience factor led them to choose the 99 Restaurant and Pub, another local restaurant they frequent. Subject B was also influenced by social factors, specifically, his family role. He mentioned familial responsibilities as a deciding factor in choosing a restaurant with a shorter wait time. (O'Brien, 2006) Post purchase behavior was an area where the subjects interviewed were very different. Subject B felt no "buyer's remorse" and felt that he had a good experience overall. Subject A, however, experienced some cognitive dissonance, or "discomfort caused by post purchase conflict." (Armstrong et al, 2005) The subject stated, "I look at the bill and think, God, we could have ate for a week on that if we had cooked at home." (O'Brien, 2006) Although Subject A felt uneasy over the price, she did not believe the results would have been different had she chosen her intended restaurant. Demographics normally play a major role in the buying process, since social, religious, and economic factors all influence a person's thought processes. The two restaurants in this scenario, T.G.I. Friday's and the 99 Restaurant and Pub, market to very similar groups, adults and families seeking a casual and affordable dining experience. Menus from both restaurants offer similar choices such as steak and seafood, and both offer a bar for those over twenty-one. (T.G.I. Friday's Worldwide, 2006) (99 Restaurant & Pub) The subjects in this study fell perfectly into the restaurants' target markets, young adults seeking an affordable and casual dinner. Since both subjects have a limited entertainment budget, more formal restaurants, such as The Olive Garden or Vinnie Testa's were not options. As even this small study has proven, marketers must be constantly aware of the consumer's thought processes and buying behaviors, since even the simplest decisions can involve many factors. Market researchers should carefully study consumers and come up with innovative ways of persuading the consumer, at each of the buying stages, that their product is the best fit. If they are successful, then the true concept of marketing - building profitable relationships, will be met. References: 99 Restaurant & Pub, (n.d.). 99 restaurant & pub. Retrieved Jan. 14, 2006, from 99 Restaurant & Pub Web site: [Link] Brown, A. (2005). Chapter 6. consumer buying behavior notes. Retrieved Jan. 14, 2006, from Alex Brown's Page Web site: [Link] O'Brien, S. (2006). Interview - buyer decision process. Retrieved Jan. 14, 2006, from Sunday O. Web site: [Link] T.G.I. Friday's Worldwide, (2006). T.g.i. friday's worldwide. Retrieved Jan. 14, 2006, from T.G.I. Friday's Worldwide Web site: [Link]
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Factors affecting consumer buying behaviour August 4, 2010 By Hitesh Bhasin Why do we need to learn about consumer buying behavior? The simple answer is that no longer can we take the customers for granted. Consumer buying behavior determines how our consumers decide to buy our product and what are the various factors responsible for this decision? Out of 11000 new products introduced by 77 companies, only 56% are present after 5 years. Only 8% of new product concepts offered by 112 leading companies reached the market. Out of that 83% failed to meet marketing objectives. What we need to understand here is why consumers make the purchases that they make, what factors influence consumer purchases and changing factors in our society The central focus of marketing is the consumer. To devise good marketing plans, it is necessary to examine consumer behavioral attributes and needs, lifestyles, and purchase processes and then make proper marketing-mix decisions. The study of Consumer behavior includes the study of what they buy, why they buy, how they buy, when they buy, from where they buy, and how often they buy. An open-minded consumer-oriented approach is imperative in todays diverse global marketplace so a firm can identify and serve its target market, minimize dissatisfaction, and stay ahead of competitors. Final consumers purchase for personal, family, or household use. Major Factors affecting consumer buying behavior

Cultural factors affecting consumer buying behaviour: Cultural factors have a significant impact on customer [Link] is the most basic cause of a persons wants and behavior. Growing up, children learn basic values, perception and wants from the family and other important groups. Marketers are always trying to spot cultural shifts which might point to new products that might be wanted by customers or to increased demand. Social factors affecting consumer buying behaviour: A customers buying behavior is also influenced by social factors, such as the groups to which the customer belongs and social status. Each culture contains sub-cultures groups of people with share values. Sub-cultures can include nationalities, religions, racial groups, or groups of people sharing the same geographical location. Sometimes a sub-culture will create a substantial and distinctive market segment of its

own. For example, the youth culture or club culture has quite distinct values and buying characteristics from the much older gray generation Similarly, differences in social class can create customer groups. In fact, the official six social classes in the UK are widely used to profile and predict different customer behavior. In the UKs socioeconomic classification scheme, social class is not just determined by income. It is measured as a combination of occupation, income, education, wealth and other variables
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Does Social Media Affect Buying Behavior?

The study of over 1500 consumers by market research firm Chadwick Martin Bailey and iModerate Research Technologies found that 60% of Facebook fans and 79% of Twitter followers are more likely to recommend those brands since becoming a fan or follower. And an impressive 51% of Facebook fans and 67% of Twitter followers are more likely to buy the brands they follow or are a fan of. Considering Facebooks over 400 million users, the opportunity is great for social media marketers. While social media is not the silver bullet that some pundits claim it to be, it is an extremely important and relatively low cost touch point that has a direct impact on sales and positive word of mouth, comments Josh Mendelsohn a vice president at Chadwick Martin Bailey. Companies not actively engaging are missing a huge opportunity and are saying something to consumers intentionally or unintentionally- about how willing they are to engage on consumers terms.

The study also uncovered perceptions among consumers that those brands not engaging in social media are out of touch. When asked the question What does it say about a brand if they are not involved with sites like Facebook or Twitter? they said the following:

Its EXPECTED that a company have some digital face whether its on FB or Twitter I dont know but they need a strong electronic presence or you doubt their relevance in todays marketplace. Female 50-54 Either they are not interested in the demographic that frequents Facebook and Twitter or they are unaware of the opportunity to get more exposure in a more interactive method. Male 35-39 It shows they are not really with it or in tune with the new ways to communicate with customers. Female 18-24. If theyre not on Facebook or Twitter, then they arent in touch with the electronic people. Female 55-59

Recent statistics from Facebook show they have 400 million active users and more than 20 million people become fans each day. Twitter users post over 50 million tweets per daythats an average of 600 tweets per second. Source: Chadwick Martin Bailey
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