Chapter – II

BUYING BEHAVIOUR

2.1 MEANING OF BUYING BEHAVIOUR

A marketing firm must ascertain the nature of customers’ buying behaviour if it is to

market its product properly. In order to entice and persuade a consumer to buy a products,

marketers try to determine the behavioural process of how a given products is purchased.

Buying behaviour is usually split into two prime strands, whether selling to the consumer,

known as business-to-consumer, or to another business, known as business-to-business.

DEFINITION

Buyer behaviour is defined as “all psychological, social and physical behaviour of

potential customers as they become aware of evaluate purchase, consume, and tell others

about products and service”. Each element of this definition is important:

1. Buyer behaviour involves both individual processes and group processes.

2. Buyer behaviour is reflected from awareness right through post purchases, evaluation

indicating satisfaction or non satisfaction, from purchases.

3. Buyer behaviour includes communication, purchasing and consumption behaviour.

4. Consumer behaviour is basically social in nature behaviour, and environment plays an

important role in shaping buyer behaviour, and

5. Buyer behaviour includes both consumer and business buyer behaviour.

6.

2.2 APPROACHES TO BUYING BEHAVIOUR

 Coke the brand name with which millions are familiar with and the one that has been

evaluated as the brand with the highest brand equity by the interbrand-business week for

several years is a low involvement brand.

A category and a brand with which consumer do not process extensive information or

spend several weeks in their purchase efforts. Fast-moving durable goods have a daily

association with consumers, poor or rich, promoted predominantly by glamour, a number of

multinational corporations have been involved in marketing them for years and they also

account for a significant market-share among the rural market in the country.

Marketers must understand the psyche of consumers to sustain their interest in their

respective brands. On the other hand, consumers spend significant time in retail outlets to

decide about their well thought-out durable categories. Both these situations of decision-

making call for different approaches from the marketing viewpoint.

2.3 THE BUYING DECISION PROCESS

For marketing management the most important behavior on the part of a prospective buyer or

consumer is the process of deciding whether to buy or not to buy. Let us now describe the

decision-making process leading to purchase decisions. Buying process represents a problem-

solving approach and includes the following five steps:

Perceived want i.e., recognition of an unsatisfied need,

1. Search for relevant information,

2. Evaluation of alternatives,

3. Purchase decision,

4. Post-purchase experience and behavior, i.e., products use and evaluation.

 If a buyer has expected level of satisfaction, seller can get repeat orders and brand

loyalty.

1. Perceived want or desire

Buying process begins when a person begins to feel that a certain need or desire has

arisen and its has to be satisfied. Needs may be ignited by internal stimulus or some external

stimulus called a sign or cue. The intensity of want will indicate the speed with which a

person will move to fulfil the unsatisfied want. Other less pressing wants may have to be

postponed as the buyer cannot have unlimited purchasing power. Marketing management

should offer appropriate cues in the communication which can promote the sale of products.

Communication-mix not only triggers true needs and desires of customers but also offers

attractive cues or selling points in the buying process.

2.Information search

Aroused needs can be satisfied promptly when the desired product is not only know

but also easily available e.g., water to satisfy our thirst. But when it is not clear what type or

brand of the product can offer best satisfaction and where and how it can be secured, the

person will have to search for relevant information about the brand, location and the manner

of obtaining the product. Consumer can tap many sources of information, e.g., family, friends,

neighbours, opinion leaders, and acquaintances. Marketers also provide relevant information

through salesmen, advertising, dealers, packaging, sales promotion, and window display. We

have also mass-media like newspapers, radio, and television. Package label can provide

information. Consumer organizations also can offer necessary information and guidance.

Marketers are expected to provide reliable, up-to-date and adequate information regarding

their products or services. This is the pressing demand of consumerism. Average consumers
are always in need of reliable guidance and information. Seller is expected to provide these

services.

2. Evaluation of alternatives

Available information can be employed to evaluate the alternatives (products or

brands). This is the critical stage in the process of buying, particularly costly durable goods.

There are several important elements in the process of evaluation: 1. A product is viewed as a

bundle of attributes. These attributes or features are used for evaluating alternative brands, 2.

Information cuses or hints about a set of characteristics of the products or brand such as

quality, price, distinctiveness, availability, etc., are provided by marketers. These can be

compared and evaluated in the buying process, 3. Brand images and brand concepts can help

in the evaluation of alternative, 4. In order to reduce the number of alternatives, some

consumers may consider only more critical attributes and mention the level for these

attributes, 5. Occasionally, consumers may use an evaluation process permitting trade off

among different alternatives. Marketers should grasp thoroughly the process and utility

functions for designing and promoting a products that will be readily acceptable in the market.

3. Purchase decision

While the consumer is evaluating the alternatives, she/he will develop some likes and

dislikes about the alternative brands. This attitude towards brands influences her/his intention

to buy. Other factors which may influence the intention to purchase are:1. Social factors, e.g.,

attitude of reference group members on whom she/he relies for final selection. She/he may

have to heed their advice, 2. Situational factors like availability, dealer terms, falling prices

due to recession, loss of job or employment, etc, and 3. Perceived risk may influence the

decision to purchase. Higher priced products involve higher degree of risk. Sophisticated

products involve performance risk. Consumers may not have confidence in foreign products
involving higher cost and they would prefer national brands to reduce risks and problems of

service after sale.

4. Post-purchase experience and behavior

The brand purchase and the product use provides feedback of information regarding

attitudes. If the level of satisfaction derived is as per expectations, it will create brand

preference influencing future purchase. But if the purchased brand does not yield desired

satisfaction, negative feeling will occur and this will create anxiety and doubts. This

phenomenon is called cognitive dissonance. There will be lack of harmony between the

buyer’s beliefs and his/her purchase decision (behaviour). The consumer will wonder whether

he/she would have been better off by buying a Godrej refrigerator. The greater the importance

of your purchase decision and more the attractiveness of your rejected alternative, the higher

will be the degree of dissatisfaction or dissonance. A dejected buyer may try to reduce his

dissonance by returning Godrej refrigerator, if possible, and buy kelvinator. He may reduce

the dissonance cognitions by changing his beliefs and develop liking for Godrej marketer may

try to create dissonance by attracting users of other brands to his brand. Advertising and sales

promotion can help marketer in this job of brand switching.

2.4 CONSUMER PSYCHE AND FAST-MOVING CONSUMER GOODS

Consumers associated with the decision-making on consumer goods may choose to

have limited information either because of the variety-seeking or because of enhanced

offerings. Though consumers may be loyal in these categories, it is highly probable consumers

are loyal to more than one brand.  They may try out variety and buy one brand to which there

is dominant loyalty.

There are also situations when the consumer buys impulsively after being exposed to

limited information-search in those categories like ice-creams, soft drinks, chocolates,

perfumes and does. Low involvement product categories have what can be called as a variety

seeking and ‘repertoire of loyalty’. One may perhaps extending this to soaps too try different

soaps and settle down to a loyalty that has a base of more than one brand.  This in fact is the

changing contemporary aspect of loyalty that is being researched today. If does are considered

they are low involvement products that may interest consumer who may go through limited

decision-making process. There is some information search through the mass media and at the

point of purchase situation.

A consumer who is using or perhaps even the prospective first time user may take a

look at an advertisement or the brand itself in a point of purchase situation retail environment

and go through the information provided. Consumers require variety in these situations and

may require variants of brands. Talcum powders, deodorants, soaps, biscuits, chocolates,

cereals, soups, toothpastes and cooking flavours have brands that have variety. There is a need

for brands to launch variety and also keep the excitement high by advertising communication.

For example in tune with the fitness and dieting trends, Kellogg’s has launched a ‘K’ variant

for the segment that is conscious of weight-related issues.

In some categories like masala/spices, there is also an ethnic/cultural taste slant and

this is one of the reasons organized brands like Mother’s Recipe and Everest do not have a

commanding national share. Price, of course, is one aspect in which local labels different from

private in the bookish sense drive to be in the shelf. But surprisingly I have found local brands

being priced higher in similar categories.

Noodles made by three manufacturers have three prices and the difference is

significant. The approach that is necessary for branding view in such categories is to develop

a strong brand not just by advertising by blending quality and taste according to regional

preferences, advertise it with a cultural overtone and introduce more varieties. This means a

brand must have different approach in each region some tea brands adopt this strategy.
2.5 FACTORS INFLUENCING BUYING BEHAVIOUR

I. Marketing factors:

Each element of the market mix products, pricing, promotion and place has the

potential to affect the buying process at various stages.

Product:

The uniqueness of the products the physical appearance and packaging can influence

buying decision of a consumer.

Pricing:

Pricing strategy does affect buying behaviour of consumers. Marketing must consider

the price sensitivity of the target customers while fixing prices.

Promotion:

The various elements of promotion such as advertising, publicity, public relations,

personal selling, and sales promotion affect buying behaviour of consumers. Marketers select

the promotion mix after considering the nature of customers.

Place:

The channels of distribution and the place of distribution affect buying behaviour of

consumers. Marketers make an attempt to select the right channel and distribute the products

at the right place.

II. Personal Factors:

The personal factors of a consumer may affect the buying decisions. The personal

factors include:

Age Factor:

The age factor greatly influences the buying behaviour. For instance, teenagers may

prefer trendy clothes, whereas, office- executives may prefer sober and formal clothing.

Gender:

The consumer behaviour varies across gender. For instance, girls may prefer certain

feminine colors such as pink, purple, peach, whereas, boys may go for blue, black, brown, and

so on.

Education:

Highly educated persons may spend on books, personal care products, and so on. But a

person with low or no education may spend less on personal grooming products, general

reading books, and so on.

Income Level:

Normally, higher the income level, higher is the level of spending and vice-versa. But

this may not be always the case in developing countries, especially in the rural areas.

Status’ in the Society:

Persons enjoying higher status in the society do spend a good amount of money on

luxury items such as luxury cars, luxury watches, premium brands of clothing, jewellery,

perfumes, etc.
Other Personal Factors:

The other personal factors such as personality, lifestyle, family size, etc., influence

consumer behaviour.

III. Psychological Factors:

A person’s buying behaviour is influenced by psychological factors such as follows:

Learning:

It refers to changes in individual behaviour that are caused by information and

experience. For example, when a customer buys a new brand of perfume, and is satisfied by

its use, then he/she is more likely to buy the same brand the next time. Through learning,

people acquire beliefs and attitudes, which in turn influence the buying behaviour.

Attitude:

It is a tendency to respond in a given manner to a particular situation or object or idea.

Consumers may develop a positive, or negative or neutral attitude towards certain product or

brands, which in turn would affect his/her buying behaviour.

Motives:

A motive is the inner drive that motivates a person to act or behave in a certain

manner. The marketer must identify the buying motives of the target customers and influence

them to act positively towards the marketed products. Some of the buying motives include:

 Pride and possession

 Love and affection

  Comfort and convenience

 Sex and romance, etc.

Perception:

It is the impression, which one forms about a certain situation or object. A motivated

person is ready to act. But the way or the manner in which he acts is influenced by his/her

perception of the situation. For instance, a student may perceive examinations as an important

event, and therefore, he/she would make every possible effort including purchase of new

stationery like pens, whereas, another student may be casual about the examinations, and

therefore, would not make extra efforts

Beliefs:

A belief is a descriptive thought, which a person holds about certain things. It may be

based on knowledge, opinion, faith, trust and confidence. People may hold certain beliefs of

certain brands/products. Beliefs develop brand images, which in turn can affect buying

behaviour.

IV. Situational Influences:

Major situational influences include the physical surroundings, social surroundings,

time, the nature of the task, and monetary moods and condition.

Physical Surroundings:

The physical surroundings at the place of purchase affects buying behaviour. For

instance, when a customer is shopping in a store, the features that affects buying behaviour

would include the location of the store, the decor, the layout of the store, the noise level, the
way merchandise is displayed, and so on.

Social Surroundings:

The social surroundings of a situation involve the other people with the customer that

can influence buying decision at the point of purchase. For instance, a bargain hunter

shopping with an impatient friend may do quick purchases, and may not haggle over the price,

so as to please the impatient friend.

Time Factor:

Customers may make different decisions based on when they purchase – the hour of

the day, the day of the week, or the season of the year. For instance, a consumer who has

received a pay cheque on a particular day may shop more items, than at the end of the month

when he is short of funds.

Task:

A customer may make a different buying decision depending upon the task to be

performed by the product. For instance, if the product is meant as a gift rather than for

personal use, then the customer may buy a different brand/product depending upon to whom

the gift is purchased.

Momentary Conditions:

The moods and condition of the customer at the time of purchase may also affect the

buying decision. A customer who is very happy would make a different buying decision, as

compared to when he is not in a happy mood.

V. Social Factors:

The social factors such as reference groups, family, and social and status affect the

buying behaviour.

Reference Groups:

A reference group is a small group of people such as colleagues at work place, club

members, friends circle, neighbours, family members, and so on. Reference groups influence

its members as follows:

 They influence members’ values and attitudes.

 They expose members to new behaviours and lifestyles.

 They create pressure to choose certain products or brands.

Family:

The family is the main reference group that may influence the consumer behaviour.

Nowadays, children are well informed about goods and services through media or friend

circles, and other sources. Therefore, they influence considerably in buying decisions both

FMCG products and durables.

Role and Status:

A person performs certain roles in a particular group such as family, club,

organization, and so on. For instance, a person may perform the role of senior executive in a

firm and another person may perform the role of a junior executive. The senior executive may

enjoy higher status in the organization, as compared to junior executive. People may purchase
the products that conform to their roles and status, especially in the case of branded clothes,

luxury watches, luxury cars, and so on.

VI. Cultural Factors:

Culture includes race and religion, tradition, caste, moral values, etc. Culture also

include sub-cultures such sub-caste, religious Sects, language, etc.

Culture:

It influences consumer behaviour to a great extent. Cultural values and elements are

passed from one generation to another through family, educational institutions, religious

bodies, social environment, etc. Cultural diversity influences food habits, clothing, customs

and traditions, etc. For instance, consuming alcohol and meat in certain religious communities

is not restricted, but in certain communities, consumption of alcohol and meat is prohibited.

Sub-Culture:

Each culture consists of smaller sub-cultures that provide specific identity to its

members. Subcultures include sub-caste, religious sects (Roman Catholics, Syrian Catholics,

Protestant Christians, etc), geographic regions (South Indians, North Indians), language

(Marathi, Malyali, Gujarathi) etc. The behaviour of people belong to various sub-cultures is

different. Therefore, marketers may adopt multicultural marketing approach, i.e., designing

and marketing goods and services that cater to the tastes and preferences of consumers

belonging to different sub-cultures.

2.6 INDIAN CONSUMER PREFERENCES OF READY TO EAT FOOD PRODUCTS

 Marketing research on Indian consumer’s preferences and purchase intentions for

Ready to Eat packaged food products India is the world’s second largest producer of food next

to China, and has the potential of being the biggest in the world. The total food production in

India is likely to double in the next ten years and there is an opportunity for large investments

in food processing technologies, skills and equipment, especially in areas of Canning, Dairy

and Ready- to-Eat packaged food. With changing lifestyle and demographics, there is a strong

potential market demand for Ready- to-Eat packaged food.

The Indian packaged processed foods industry is estimated at US$ 10.87 billion – US$

13.05 billion, and is growing at a healthy 14-15 per cent over the past two-three years. Our

research intends to gain insights into the critical factors which guide consumer buying

behavior towards ready to eat packaged food products available in the market. Our aim is to

analyze the relationship of social, demographics, psychographic, lifestyle and other influences

with regards to purchase decision of consumer of ready to eat packaged food. This will help

existing firms in the business, as well as, the firms which are planning to enter the business,

position their ready-to-eat packaged food products in a better way.

2.7 CONCEPT OF READY TO EAT PACKAGED FOOD:

Ready to Eat packaged food products are generally sold through small retail outlets or

large organized retailers in especially made sealed pouches. The sterilization process ensures

the stability of the food in pouches, on the shelf and at room temperature. The application of

sterilization technology completely destroys all potentially harmful micro-organisms, thereby

making sure that the food product has a very long shelf life of over 12 months and need no

refrigeration.

When customer needs to eat, the food item pouch is either put in microwave oven to

warm it or keep in heated water for a few minutes and then serve to eat. Such ready to eat
meals have been especially given to soldiers in army of many countries who require carrying

their rations while on war front or while located far away from their main unit.

2.8 SIGNIFICANCE OF READY-TO-EAT FOOD PRODUCTS

There are many companies coming up for the manufacturing of ready-to-eat foods due

to various advantages and its usage by the people is also more because of its following

significance.

No extra labours required in the production of ready-to-eat foods as complete processing is

carried out through machinery and even its usage in kitchen is very easy