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Consumer behaviour (CB)

Presentation overview
What is CB?

Why CB is important?
Factors affecting CB Buying Motives Stages of the Buying Decision process Perceived risk

What is CB?
CB studies how individuals groups and organizations select, buy use and dispose of goods, services ideas or experiences to satisfy their needs and desires. Understanding consumers behaviour and knowing customers are not simple. They may say some thing and do another. Organizations must understand how and why their customers are buying.

Why CB is important?
Studying customers will provide clues for -developing new products -product features -prices -channels -messages and other marketing mix elements

Factors affecting CB
Factors affecting CB

Factors that are part of the buyer as an individual

Buyers socio cultural Environment ( group influence)

Information from various sources

I. Factors that are part of the buyer as an individual

Cultural factors culture, religion, language Personal factors- Age, education, occupation, economic position, concern about status, personality, stages in a family lifecycle. Psychological factors- motivation, perception, beliefs and attitude

Stages in Family life cycle

1.Bachelor Stage- young single , not living at home. Few financial burden. Buy basic home equipments, furniture, cars etc 2.Newly married couples-Young no children. Highest purchase rate. Cars, appliances, furniture, vaccations. 3.Full nest I- youngest child under 6. Buys washing machines, TV, baby food, vitamins etc. 4.Full nest II- youngest child above 6. financial position better. Buys large size packages, bicycles, cleaning materials etc.
5.Full nest III- Older married couples with dependent children. Financial position still better. Some children get jobs. High average purchase of

Stages in Family life cycle contd.

6. Empty nest I- old married couples, no children living with them. Head of house hold is employed.
7.Empty nest II- older married, no children living at home, head of household retired, drastic cut in income Buy medical appliances, medical care products 8.Solitary survivor- In labour force, Income still high, likely to sell home 9.solitary survivor- Retired, same medical products required, drastic cut in income,. Special need for attention ,affection and security.

Beliefs and attitude

A belief is a descriptive thought that a person holds about some thing. An attitude is a persons enduring favorable or unfavorable evaluations emotional feelings and actions tendencies towards some object or objective. A company is advised to fit its products into existing attitudes rather than to change their attitudes.

II.Group influence
Group influence

Influence of intimate groups

Influence of broad Social class

Influence of intimate groups

Family Friends Colleagues Peer groups

Influence of broad social class

Social class is a larger group than intimate groups and is decided by several factors such as -income -occupation -place of residence A social class develops its behavior and living standard. In the purchasing behavior, the class members are guided by their class norms.

III. Information from various sources

The information source include Advertisement Samples and trials Display in shops Salesmans suggestions

Buying motives

Buying motives can be defined as all the impulses, desires, and considerations which induce a buyer to purchase a given product.

Buying motives

Buying motives

Product Motive

Consumer Patronage Motive

Product motive

Unsatisfied need creates a product Those impulses ,desires and considerations that make people buy given product are called product motives.

Consumer patronage motive

The influence that explains why the consumers buy from a particular firm/shop are called as patronage motives.

A motive is a need that is sufficiently pressing to drive a person to act.
Different theories of motivation 1. Freuds theory 2.Abraham Maslows theory 3.Herzberg theory

Maslows need Hierarchy theory


A motivated person is ready to act. How he acts is influenced by his perception. Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world.

Figure Ground (The perception principle that

describes the minds tendency to seek figure and ground distinctions)

Stages of the Buying Decision Process

Problem recognition

Recognize a problem or need The need can be triggered by a stimuli The need rises to a threshold level and becomes the drive. Marketers should identify the circumstances that triggers a particular need. Eg. Mumbais Dabbawallahs (tiffin carriers)

Information search
Personal sources - Family, friends,


Commercial sources- Advertising, sales

persons, dealers, packaging, displays Public sources- mass media consumer rating organisations Experimental sources- handling, experimenting, using the product

Successive Sets Involved in Customer Decision Making

Evaluation of alternatives

A consumer is trying to satisfy a need Expecting certain benefits Consumer sees each product as a bundle of attributes.

Purchase decision
The consumer may make up to 5 purchase sub decisions 1.Brand decision 2.Dealer decision 3.Quality decision 4.Timing decision (When to purchase) 5.Payment method decision

Post purchase behaviour

The buyers satisfaction is a function of the closeness between the expectations and the products perceived performance. If performance falls short of expectationdisappointed If performance meets expectation-satisfied If performance exceeds expectations- delighted. These feelings make a difference in whether the customer buys the product again and again and talks favourably or unfavourably to others.
Best advertisement is satisfied customer

Perceived risk
Definition: A functional or psychosocial risk

a consumer feels he/she is taking when purchase a product

Consequences of making a wrong purchase decision A high priced durable good has high perceived risk than nondurable commodity. The higher the perceived risk, the more likely that the consumer will seek information about the product, recommendations and experiences of peers.

Perceived risk (contd.)

In a situation of high perceived risk, consumers are more likely to purchase the same brand repeatedly, or to purchase a leading brand and the one with performance guarantee/ warrantee. They may avoid new products.

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