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Consumer Markets and Consumer Buying Behavior

Mahoob Ul Haq Part Two

Peshgam Institute for Higher Education

Mahboob Ul Haq

Consumer Markets and Consumer Buying Behavior
Consumer Buying Behavior The buying behavior of the final consumers–individuals and households who buy goods and services for personal consumption. Consumer Markets All the individuals and households who buy or acquire goods or services for personal consumption.

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Model of Consumer Behavior
Stimuli Marketing Stimuli Product Price Place Promotion Other Stimuli Economic Technological Political Cultural Buying’s Black Box Buying Characteristics Buying Responses Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount

Buying Decision Process

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Model of Consumer Behavior
Stimulus Response Model  Marketing and other stimuli enter the Buying’s “black box” and produce certain choice/purchase responses.  Marketers must figure out what is inside of the Buying’s “black box” and how stimuli are changed to responses.

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Characteristics Affecting Consumer Behavior
Cultural Culture Social Personal Age and life cycle stage

Psychological Motivation Perception Learning Belief and attitude Buying

Reference groups

Occupation
Subculture Economic situation

Family

Lifestyle
Roles and status Personality and self-concept

Social Class

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Characteristics Affecting Consumer Behavior
Cultural Factor Culture is the set of basic values, perceptions, wants and behaviors learned by a member of society from family and other important institutions.
 Subcultures (nationalities, religions, regions)  Social Class (homogeneous divisions, similar

values, interest, benefits etc)

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Characteristics Affecting Consumer Behavior
Social Factors  Groups  Reference  Aspirational Groups  Opinion Leaders  Family  Children can Influence  Roles and Status

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Characteristics Affecting Consumer Behavior
Social Factors  Role: A role consist of activities people are expected to perform according to the persons around them.  Status: Status reflects the general esteem given to an individual by society.

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Characteristics Affecting Consumer Behavior
Personal Factors  Age and Life-Cycle Stage  Occupation  Economic situation  Lifestyle

Activities, interests, and opinions

 Personality and Self-Concept

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Characteristics Affecting Consumer Behavior
Personal Factor Personality is a person’s distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her own environment. i.e self-confidence, dominance, autonomy (understanding), deference (respect), sociability (friendliness), defensiveness, and adaptability (flexibility).

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Characteristics Affecting Consumer Behavior
Psychological  Motivation  Motive (drive) is a need that is sufficiently pressing to direct the person to seek satisfaction of the need.  Maslow’s hierarchy of needs

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Characteristics Affecting Consumer Behavior
Psychological Maslow’s Hierarchy of Needs

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

Characteristics Affecting Consumer Behavior
Psychological  Perception  Process by which people select, organize, and interpret information to form a meaningful picture.  Learning  Changes in the individual’s behavior arising from experience.  Beliefs and Attitudes  Belief: A descriptive thought that a person holds about something.  Attitude: A person’s consistently favorable or unfavorable evaluations, feelings and tendencies toward object or idea.
Consumer Markets and Consumer Buying Behavior 13

Peshgam Institute for Higher Education

Mahboob Ul Haq

The Buying Decision Process

Stage 1 Need Recognition

Stage 2 Information Search

Stage 3 Evaluation of Alternatives

Stage 4 Purchase Decision

Stage 5
Postpurchase Behavior

Buying Decision Process

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

The Buying Decision Process
Need Recognition The first stage of the Buying decision process, in which the consumer recognizes a problem or need. Needs can be triggered by:  Internal stimuli  Normal needs become strong enough to drive behavior  External stimuli
 

Advertisements Friends of friends

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

The Buying Decision Process
Information Search The stage of the Buying decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or actively search for information.  Sources of information:  Personal  Commercial  Experiential  Word-of-mouth
Consumer Markets and Consumer Buying Behavior 16

Peshgam Institute for Higher Education

Mahboob Ul Haq

The Buying Decision Process
Evaluation of Alternatives The stage of the Buying decision process in which the consumer uses information to evaluate alternative brands in the choice set.  Evaluation procedure depends on the consumer and the buying situation.  Most Buying evaluate multiple attributes, each of which is weighted differently.  At the end of the evaluation stage, purchase intentions are formed.

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

The Buying Decision Process
Purchase Decision The Buying’s decision about which brand to purchase.  Two factors intercede between purchase intentions and the actual decision:  Attitudes of others  Unexpected situational factors

Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

The Buying Decision Process
Post purchase Behavior The stage of the Buying decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction.  Satisfaction is important:  Delighted consumers engage in positive word-ofmouth.  It costs more to attract a new customer than it does to retain an existing customer.  Cognitive Dissonance: Buying discomfort caused by post purchase conflict.
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Peshgam Institute for Higher Education

Mahboob Ul Haq

The Buying 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 passes from first hearing about an innovation to final adoption.

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Peshgam Institute for Higher Education

Mahboob Ul Haq

The Buying Decision Process for New Products
Stages in the Adoption Process
Awareness: Consumer is aware of product, but lacks information. Interest: Consumer seeks Information about new product. Evaluation: Consumer considers trying new product. Trial: Consumer tries new product on a small scale. Adoption: Consumer decides to make regular use of product
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Peshgam Institute for Higher Education

Mahboob Ul Haq

The Buying Decision Process for New Products
Individual Differences in Innovativeness Consumers can be classified into five adopter categories, each of which behaves differently toward new products. Innovators Early Adopters Early Majority Late Majority Laggards


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Consumer Markets and Consumer Buying Behavior

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Peshgam Institute for Higher Education

Mahboob Ul Haq

The End

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