TOPIC 6

ANALYZING CONSUMER MARKET

CONSUMER BUYER BEHAVIOR & CONSUMER MARKET

- Refers to the buying behavior of final consumer, individuals and households who buy

goods and services for personal consumption. It is all of these final consumers that make

up the consumer market.

4 TYPES OF BUYING BEHAVIOR

1. Extended Decision-Making - making occurs when consumer are buying a rather expensive

product.

2. Limited Decision-Making - Consumers are faced with limited decision making. This

essentially means that there is a limiting variety or availability of this product on the

market.

3. Habitual Buying Behavior - Plays a big role in our daily routine. We do not put a lot of

thought or research into buying a product that is incredibly cheap and available in masses,

at the same time.

4. Variety-Seeking Buying Behavior - You display this type of purchase behavior when there

are visible differences between a product within the existing brands. You, as a consumer,

might want to try out a similar product of various brands out of curiosity.

CONSUMER MARKET

- Refers to the market where people purchase products/services for consumption and are not

meant for the further sale. This market is dominated by the products which consumers use
 in their daily life. Each time a consumer purchases a commodity for his own usage he/she

is participating in a consumer market.

4 TYPES OF CONSUMER MARKETS

1. Food and Beverages

2. Retail

3. Consumer products

4. Transportation

MODEL OF CONSUMER BEHAVIOR

- Buyer responses influence choice of the product, brand, vendor, as well as the timing and

amount of purchase.
What do we need to study to understand the black box?

▹ Characteristic affecting buyer behavior

▹ Types of buying behavior

▹ Buyer decision process

CHARACTERISTICS AFFECTING CONSUMER BEHAVIOR AND TYPES

OF BUYING BEHAVIOR

FACTORS INFLUENCING CONSUMER BEHAVIOR

TYPES OF BUYING DECISION BEHAVIOR

1. Complex buying behavior - Complex buying behavior is when the consumer is highly

involved in the purchase and the knowledge about significant differences between brands.

2. Dissonance – Reducing Buying Behavior - happens when consumers are highly involved

with an expensive, infrequent, or risky purchase but perceives little difference among

brands.
3. Habitual Buying Behavior - In habitual buying behavior consumer involvement is low as

well as there is no significance among brands names.

4. Variety-seeking Buying Behavior - Consumers undertake variety-seeking buying behavior

in situations characterized by low consumer involvement, but significant perceived brand

differences.
CONSUMER BUYING PROCESS AND BUYER DECISION PROCESS FOR

NEW PRODUCTS

CONSUMER BUYING PROCESS

BUYER DECISION PROCESS FOR NEW PRODUCTS

New products: a good, service, or idea that is perceived by some potential customers as

new.

Adoption process: The mental process through which an individual pass from first hearing

about an innovation to final adoption.

STAGES OF ADOPTION PROCESS

 • Awareness

• Interest

• Evaluation

• Trial

• Adoption

ANALYZING CONSUMER MARKET

CONSUMER BEHAVIOR

• Cultural

• Social

• Personal

• Psychological
CONSUMER BUYING PROCESS

• Problem Recognition

• Information Search

• Evaluation

• Purchase Decision

• Post Purchase Behavior