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A
PROJECT REPORT ON
CONSUMER BEHAVIOUR ANALYSIS IN BUYING BEHAVIOVR
FOR THE PARTIAL FULFILLMENT OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO: SUBMITTED BY:
Mrs. SUMAN PATHAK PAWAN JOSHI Sr. LECTURER, MBA ROLL NO-09020500058

Finally. we want to thanks Mrs. who gave us useful information about this project. We are also greatly thankful to Mr. motivated and assisted us in developing this project. Most of all. Lamachaur. VEER PAL GANGWAR.2 MBA 3nd SEM AMRAPALI INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION Shiksha Nagar. we want to pay our compliments. SUMAN PATHAK she guided. Haldwani (Affiliated to Uttarakhand Technical University. to our friends. Dehradun) ACKNOWLEDGEMENT We wish to express our sincere appreciation to those persons who have contributed either directly or indirectly to this project. who encouraged us .

3 in completing this project. TABLE OF ONTENT • ACKNOWLEDGMENT • INTRODUCTION • BUYING BEHAVIOUR • STAGE OF BUYING PROCESS • TYPES OF BUYING BEHAVIOUR • CATEGORIES EFFECT BUYING BEHAVIOUR • FACTORS OF BEHAVIOUR • DECESION MAKING PROCESS • CONCLUSION . All the members of the group worked hard in getting information from the concerned departments.

Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. Stages of the Consumer Buying Process Six Stages to the Consumer Buying Decision Process (For complex decisions). All consumer decisions do not always include all 6 stages. Marketers can better predict how consumers will respond to marketing strategies.. A firm needs to analyze buying behaviour for: • • • Buyers reactions to a firms marketing strategy has a great impact on the firm’s success. Firms need to understand: • • • why consumers make the purchases that they make? what factors influence consumer purchases? the changing factors in our society. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers. Not all decision processes lead to a purchase.discussed next.4 • BIBLIOGRAPHY INTRODUCTION CONSUMER BUYING BEHAVIOUR Definition of Buying Behaviour: Buying Behaviour is the decision processes and acts of people involved in buying and using products. therefore need to analyze the what. where.. Actual purchasing is only one stage of the process. determined by the degree of complexity. . when and how consumers buy.

Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. A successful information search leaves a buyer with possible alternatives.. want to go out and eat. see a commercial for a new pair of shoes. comparison shopping. time lapse between 4 & 5. after sales communication etc. Rank/weight alternatives or resume search. Can you think of another restaurant? Look in the yellow pages etc. product availability. Purchase--May differ from decision. products visible to others. Deficit in assortment of products. Cognitive Dissonance. indian gets highest rank etc. evoked set is chinese food indian food burger king klondike kates etc Evaluation of Alternatives--need to establish criteria for evaluation. Purchase decision--Choose buying alternative. After eating an indian meal. Hunger--Food. have you made the right decision.Hungry. features the buyer wants or does not want. Types of risk: • Personal risk . may think that really you wanted a chinese meal instead. Information search-o Internal search. Types of Consumer Buying Behaviour Types of consumer buying behaviour are determined by: • • Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. High involvement purchases--Honda Motorbike. Marketers try to influence by "framing" alternatives. This can be reduced by warranties. then return to the search phase. package. includes product. store. and the higher the risk the higher the involvement. o External search if you need more information. high priced goods. method of purchase etc. the evoked set. Marketer dominated sources. Can be stimulated by the marketer through product information--did not know you were deficient? I. public sources etc. 6. memory. 5. o o o o 3.5 The 6 stages are: 1. Hunger stimulates your need to eat. May decide that you want to eat something spicy. If not satisfied with your choice. level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. 2.E. stimulates your recognition that you need a new pair of shoes. Buyers. Friends and relatives (word of mouth). Information from different sources may be treated differently. 4. Problem Recognition(awareness of need)--difference between the desired state and the actual condition.

The purchase of the same product does not always elicit the same Buying Behaviour. Valentine’s Day dinner. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all). snack foods. Information from the companies MM. The reason for the dinner. Personal: unique to a particular person. need very little search and decision effort. Requires a moderate amount of time for information gathering. Race. Categories that Effect the Consumer Buying Decision Process A consumer. store personnel etc. unfamiliar. computers. Impulse buying. Psychological 3. perhaps. expensive and/or infrequently bought products. whether it is an anniversary celebration. milk etc. High degree of economic/performance/psychological risk. no conscious planning. or a meal with a couple of friends will also determine the extent of the decision making. Demographic Factors such as Sex. making a purchase decision will be affected by the following three factors: 1. Psychological factors: .6 • • Social risk Economic risk The four type of consumer buying behaviour are: • • • • Routine Response/Programmed Behaviour--buying low involvement frequently purchased low cost items. education. When you need to obtain information about unfamiliar brand in a familiar product category. Personal 2. Limited Decision Making--buying product occasionally. Examples include Clothes--know product class but not the brand. purchased almost automatically. friends and relatives. Social The marketer must be aware of these factors in order to develop an appropriate MM for its target market. Who in the family is responsible for the decision making? Young people purchase things for different reasons than older people. Examples include cars. Examples include soft drinks. Spend a lot of time seeking information and deciding. Extensive Decision Making/Complex high involvement. Go through all six stages of the buying process. Age etc. homes. but limited decision making for someone else. Product can shift from one category to the next.

have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. forgets those that don't. Advertisers that use comparative advertisements (pitching one product against another). IE we chose what info we pay attention to.. Information inputs are the sensations received through sight. Selective Exposure-select inputs to be exposed to our awareness. Exposed to 1.500 advertisement per day. on knowledge that is stored in the memory. smell and touch. More likely if it is linked to an event..do you ever get confused? Selective Retention-Remember inputs that support beliefs. taste. Selective Distortion-Changing/twisting current received information.. organizing and interpreting information inputs to produce meaning.7 Psychological factors include: • Motives-A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal..MCI and AT&T. Interpreting information is based on what is already familiar. satisfies current needs. Can't be expected to be aware of all these inputs. not just one. • Ability and Knowledge-- . Average supermarket shopper is exposed to 17. intensity of input changes (sharp price drop). Actions are effected by a set of motives. • Perception-What do you see?? Perception is the process of selecting. MASLOW hierarchy of needs!! o o o o o Physiological Safety Love and Belonging Esteem Self Actualization Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases. and certainly will not retain many. hearing.000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned. organize it and interpret it. inconsistent with beliefs. A current example. If marketers can identify motives then they can better develop a marketing mix.

because they assume that the greater price indicates greater quality. due to consumers attitudes toward Oldsmobile (as discovered by class exercise) need to disassociate Aurora from the Oldsmobile name. When making buying decisions..Drive perceptions Individual learns attitudes through experience and interaction with other people. Exxon Valdez-nearly 20. Changing market of the 1990s. changes in a person's behaviour caused by information and experience. Knowledge is the familiarity with the product and expertise. Examples include: o o o o Workaholism Compulsiveness Self confidence Friendliness . Consumers screen information that conflicts with their attitudes.free sample etc. • Personality-all the internal traits and behaviours that make a person unique. need to give them new information re: product.000 credit cards were returned or cut-up after the tragic oil spill. dispel the unsavory image of a motorbike rider. living or non..8 Need to understand individual’s capacity to learn.. To change this they have a new slogan "Come ride with us".living. Distort information to make it consistent and selectively retain information that reinforces our attitudes. Hondas market returning to hard core. Attitudes and attitude change are influenced by consumers. IE brand loyalty. There is a difference between attitude and intention to buy (ability to buy). personality and lifestyle. uniqueness arrives from a person's heredity and personal experience. buyers must process information. Therefore to change consumers' behaviour about your product. baby boomers aging. late 1950s. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy. Learning is the process through which a relatively permanent change in behaviour results from the consequences of past behaviour. Oldsmobile vs. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product. Learning. Lexus.. Honda "You meet the nicest people on a Honda".. • Attitudes-Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible.. Non-alcoholic Beer example: consumers chose the most expensive six-pack.

things you should do based on the expectations of you from your position within a group.9 o o o o o o o o Adaptability Ambitiousness Dogmatism Authoritarianism Introversion Extroversion Aggressiveness Competitiveness. Now an assault by the American Academy of Dermatology. Traits affect the way people behave.. are influenced by opinion leaders. Husband. Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products. father. this may be due to unreliable measures. Family is the most basic group a person belongs to. Consumers buy products that are consistent with their self concept. Lifestyles are the consistent patterns people follow in their lives. Sun tan not considered fashionable in US until 1920's.. There is a weak association between personality and Buying Behaviour. • Opinion leaders-Spokes-people etc. McDonalds.) Can be risky...Michael Jackson. Marketers must understand: . Marketers try to match the store image to the perceived image of their customers. • Lifestyles-Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy.. social class and culture. reference groups. EXAMPLE: healthy foods for a healthy lifestyle. People have many roles. employer/ee. Michael Jordon (Nike.Chevy Chase • Roles and Family Influences-Role. In Nike ads for example. motives etc. person's family. Social Factors: Consumer wants... natural lifestyle.OJ Simpson. Gatorade etc. Individuals role are continuing to change therefore marketers must continue to update information.. learning.

and therefore tends to let them influence purchase decisions in order to alleviate some of the guilt.. sororities. Each stage creates different consumer demands: o o o o o o o o o o bachelor stage.also. The Family life cycle: families go through stages. The degree to which a reference group will affect a purchase decision depends on an individual’s susceptibility to reference group influence and the strength of his/her involvement with the group.10 o o o o o that many family decisions are made by the family unit consumer behaviour starts in the family unit family roles and preferences are the model for children's future family (can reject/alter/etc) family buying decisions are a mixture of family interactions and individual decision making family acts an interpreter of social and cultural values for the individual.me full nest I. (Children influence about $130 billion of goods in a year) Children also have more money to spend themselves.. Credit Cards etc. older married couples with no children living with them.. no children. youngest child 6 or over full nest III. family has less time for children.. head retired solitary survivor. in labour force solitary survivor. older married couples with dependent children empty nest I. attitudes or behaviours of the group members. • Reference Groups-Individual identifies with the group to the extent that he takes on many of the values. friends. young. youngest child under 6 full nest II. tries to disassociate from the "biker" group.. . Because 2 income families are becoming more common.!! Aspiration groups (want to belong to) Disassociate groups (do not want to belong to) Honda. head in labour force empty nest II. the decision maker within the family unit is changing. Membership groups (belong to) Affinity marketing is focused on the desires of consumers that belong to reference groups. civic and professional organizations. no children living at home. Families. older married couples. retired Modernized life cycle includes divorced and no children. Any group that has a positive or negative influence on a person’s attitude and behaviour. newly married.. Marketers get the groups to approve the product and communicate that approval to its members.

aristocratic names. average pay white collar workers and blue collar friends Working class. the types. eat. different levels of needs. ethnic groups and possessions.11 • Social Class-an open group of individuals who have similar social rank. . All operate within a larger culture. reference groups and social classes are all social influences on consumer behaviour. Lower-upper class. race. 1. working Lower-lower class. education. quality. quantity of products that a person buys or uses. reside and travel. income. college graduates. Cultural values in the US are good health. individualism and freedom. 9%. and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. 38%. Culture also determines what is acceptable with product advertising. Stores project definite class images. ideas. Social class influences many aspects of our lives. 7%. Social class determines to some extent. . do not engage in much prepurchase information gathering. Culture can be divided into subcultures: o o geographic regions human characteristics such as age and ethnic background. .2%. Culture determines what people wear.5%. o o o o o o o Upper -upper-upper class. Jamaica is not a classless society.3%. 32%. Lower class people tend to stay close to home when shopping. newer social elite. education. inherited wealth. managers and professionals Lower middle class. from current professionals and corporate elite Upper-middle class. different cultural values. IE upper middle class prefer luxury cars Mercedes. Different society. Family. Class criteria: occupation. average pay blue collar workers Upper-lower class. • Culture and Sub-culture-Culture refers to the set of values. wealth. 12.

Understanding Consumer Buying Behaviour offers consumers greater satisfaction (Utility). Turn now to the following reading to begin looking at your text's introduction to buyer behaviour. As far as consumer behaviour goes. It is called the 'black box' model because we still know so little about how the human mind works. • The study of how and why people purchase goods and services is termed consumer buying behaviour . They attempt to understand the proverbial 'blackbox' of what happens within the consumer between his or her exposure to marketing stimuli and the actual decision to purchase. but that the consumer's personal characteristics and decision-making process will interact with the stimulus before a particular behavioural response is generated. to generate particular responses. We cannot see what goes on in the mind and we don't really know much about what goes on in there. so it's like a black box. and the process of. but we don't really know how consumers transform all these data. The term covers the decision-making processes from those that precede the purchase of goods or services to the final experience of using the product or service. Psychological influences . p. We must assume that the company has adopted the Marketing Concept and are consumer oriented. we know enough to be able to identify major internal influences and the major steps in the decision-making process which consumers use.12 Culture affects what people buy. together with the stimuli. how they buy and when they buy. (1992. Figure Black box model of consumer buying behaviour Source: Keegan et al. the model suggests that factors external to the consumer will act as a stimulus for behaviour. 193) The essence of the model is that it suggests consumers will respond in particular ways to different stimuli after they have 'processed' those stimuli in their minds. Models of consumer buying behaviour draw together the various influences on. In more detail. the buying decision.

1 presents the traditional family life-cycle in terms of the opportunities each stage provides for marketing. Table The traditional family life-cycle : . product or brand. If you look back to Figure 4. Activity The three selective processes are very relevant to your study habits as a student (a consumer of this course). (2004) elaborate on several psychological variables influencing consumer buying behaviour: perception motivation learning beliefs and attitudes personality and self concept. However. an example of selective exposure which relates to your study activities. so please keep it in mind when you study the following reading on an international aspect of consumer behaviour. Marketers understand family purchasing behaviour in terms of the family life-cycle as well as the role of individual family members. it is worth mentioning the importance of attitudes. and write down. therefore. Do the same for selective distortion (also known as selective perception) and selective retention. say a particular outlet. (1992) refer to these as being included in the buyer's mind or internal factors. they are difficult to change and they lead people to act fairly consistently towards similar objects. So: 1. Although your text covers the remaining psychological variables well.1 you will note that Keegan et al. As attitudes are learned. Then answer the following question: how can I apply this information to improve my study habits? Cultural and social influences • • • • • • Your text suggest that there are a number of social and cultural influences: culture and sub-culture social class household types reference groups roles and status. 2. An attitude is a learned. relatively enduring feeling of being favourable or unfavourable towards something. it is much more appropriate that we should try to match our products to people's attitudes rather than try to change those attitudes. 3. demographic changes are altering the traditional family life-cycle. Think of.13 • • • • • • • Kotler et al. As marketers. Table 4. This is particularly relevant for international marketing. whether that might be.

home. limited practicality of items. young. clothing. for children. appeal to comfort and established in career. automobile. appeal to comfort at a low price Only one spouse alive. travel. appeal to and future-oriented enjoyment and togetherness Youngest child under 6. expensive durables home.vacations. home. Vacation home. independence. clothing. good entertainment. present. low appeal to status discretionary income Two incomes. recreation. p. male or female Newly married Full nest I Characteristics Opportunities for marketing Full nest II Full nest III Empty nest I Empty nest II Independent. stage of career. recreation. appeal oriented to economy. improvement of parents' thoughts of future durables. little interest in luxuries. stereo. appeal to productive citizen Travel. futuresafety. early Clothing. appeal to comfort and retirement luxury No children at home. replacement and highest income level. durables. restaurants. 146) • Now it is time to review what your text has to say about the social and personal influences which act as stimuli in consumer behaviour whilst the reading illustrates how advertisers are . incomes. presenthome. some feeling of futility. less income Travel. one-and-a. some interest in least one spouse luxuries. present -oriented. living in new and expenses. actively employed. Savings. Goods and services geared to one to one-and-a-half child. less income Source: Evans and Berman (1992. entertainment. thoughts of self self-gratification and retirement Retirement. good income Immersion in job and friends leading to interest in travel. child care Youngest child over 6. health and recreation areas. at products.clothing. appeal to economy and social activity Sole survivor I Sole survivor II Only one spouse alive. pharmaceuticals and oriented health items. independence. security. child-oriented half to two incomes. but independent. appeal to income. pharmaceuticals. family-use items. education. pharmaceuticals. relative Apartment furnishings. travel. durability. long-range enjoyment future-oriented Youngest child living at Education. independent. retired. low travel.14 Stage in cycle Bachelor. family but dependent. earnings. luxuries.

every scores of new product are withdrawn from the market soon after their introduction. Even though in your role you may be dealing largely with organisations.Most of the new products introduce. including failed products. (2004) outline four major types of decision-making behaviour that a consumer uses. provides some excellent examples of what we have been discussing in a maritime context.such as food. The decision-making process Thus far we have discussed the influences that affect what products a consumer decides to purchase. many other products also “fail” when their sales fall short of providing the revenues needed both to cover their development costs and to generate profits clearly.15 using their knowledge of women and the family to promote products. beverages. household. In an effort to pinpoint causes of product failures in these areas. Kotler et al. personal care. baby care and other categories. you will still need to be familiar with consumer buying behaviour. Your next reading defines the above decision-making behaviours and introduces you to the five-step decision-making process consumers go through when accepting or rejecting a new product. For example. which although written over a decade ago. • CONCLUSION The essence of the marketing concept is understanding consumer needs and developing products that meet these needs effectively. However. . and personal care products that were introduced and subsequently withdrawn from the marketplace. The reading is also useful because it discusses the decision process for purchasing new products. And yet. fall within the product categories sold in supermarkets. They are: • • • • • complex buying behaviour dissonance-reducing buying behaviour habitual buying behaviour variety seeking buying behaviour. It is also a good opportunity to read through an article by Dessler (1990). the demand for consumer goods that pass through ports is driven by the social and psychological factors we discussed earlier. understanding consumer needs is a complex issue. an organization named new product works maintains a vast collection of foods. beverages. household maintanance. the consumer is yet to make an actual decision! Let us look now at what is involved in actually making those decisions.

com www.com Leon Schiffman : .google.16 BIBLIOGRAPHY: • • • • • www.com www.casestudy.scribd.mbaguyes.com www.

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