Consumer Buying Behaviour

Marketing Management - 1

Dr Omkumar Krishnan IMT Ghaziabad

Understanding the Consumer Market

Consumer market: all of the individuals and households who
buy or acquire goods and services for personal consumption.

Product Price Place Promotion Marketing and other stimuli

Buyer Decision Process

Buyers Responses

Economic Technological Political Cultural

Product choice Brand choice Dealer choice Purchase timing Purchase amount

Dr Omkumar Krishnan IMT Ghaziabad

Source: Hawkins, CB

Consumer Buying Roles

Initiator Influencer Decider Buyer User Disposer
Dr Omkumar Krishnan IMT Ghaziabad

Theoretical Foundation
Sigmund Freud Unconscious Id, Ego, Super Ego Abraham Maslow Hierarchy of Needs Basic-Security-Social-Esteem- Self Actualisation McGuire Psychological Motives Cognitive / Affective & Preservation / Growth Carl Jung Collective Consciousness Archetypes

Dr Omkumar Krishnan IMT Ghaziabad

Decision Making
Complex Decision Making Brand Loyalty Need Arousal
Past Experience Characteristics Motives Environmental Influences Marketing Stimuli
Dr Omkumar Krishnan IMT Ghaziabad

Types of Buying Behaviour

High Involvement Vs Low Involvement Extensive Problem Solving
Belief Attitudes Planned Decision

Variety Seeking Behaviour Habitual Decision making (Routine) Impulse Buying

Dr Omkumar Krishnan IMT Ghaziabad

Information and purchase decisions

Two sources: Commercial information environment.
Includes manufacturers, retailers, advertisers and sales people.

Social information environment.

Family, friends and acquaintances.

Dr Omkumar Krishnan IMT Ghaziabad

Psychological influences
Buying motives:
Buyer recognises motives for purchase. Buyer aware of reason for purchase but does not admit to themself. Buyer does not know the real factor for motivation.

Dr Omkumar Krishnan IMT Ghaziabad

Social influences
Families and Households (Lifecycle)
Core values, attitudes and beliefs. Family as a buying unit (Information Sharing)

Culture. Changing gender roles. Social class. Reference groups.

Dr Omkumar Krishnan IMT Ghaziabad

Stages in Consumer Buying Decision Process

Dr Omkumar Krishnan IMT Ghaziabad

CONSUMERS GO THROUGH A FIVESTAGE BUYING -DECISION PROCESS

Need recognition Identification of alternatives Evaluation of alternatives Decision Post-purchase behaviour

Dr Omkumar Krishnan IMT Ghaziabad

STAGE 1NEED RECOGNITION, WHEN AN UNSATISFIED NEED (MOTIVE) CREATES TENSION OR DISCOMFORT IN THE CONSUMER

A biogenic need (hunger) Arousal by external stimulus (advertising) Dissatisfaction with current product (tension)
Dr Omkumar Krishnan IMT Ghaziabad

STAGE 2IDENTIFICATION OF ALTERNATIVES, INCLUDING BOTH PRODUCTS AND BRANDS

INFLUENCED BY:
The costs of collecting more information. The ability to recall past experiences. The consumers confidence in recalled information. The time and level of perceived risk.
Dr Omkumar Krishnan IMT Ghaziabad

STAGE 3 - EVALUATION OF
ALTERNATIVES, INCLUDING ESTABLISHING CRITERIA WITH WHICH TO MAKE THE EVALUATION
Evaluation involves: The criteria used: Price, convenience, prestige and taste. The various sources used to make the decision: Past experience, attitude towards brand, opinions by others. Sets Total AwarenessConsiderationChoice--Product
Dr Omkumar Krishnan IMT Ghaziabad

STAGE 4PURCHASE DECISION, WHICH IS ACTUALLY A SERIES OF DECISIONS INCLUDING

Patronage buying motives (friendly staff, convenience). Decisions regarding brand, price, store. Product features and benefits. Where and when to make the purchase. Method of payment.
Dr Omkumar Krishnan IMT Ghaziabad

STAGE 5POST-PURCHASE BEHAVIOR,

OR COGNITITVE DISSONANCE

Consumers strive for internal harmony and consistency among their cognitions (knowledge, attitudes, beliefs, values) any inconsistency in these cognitions will result in anxietycognitive dissonance. Consumers will experience post-purchase, cognitive dissonance when alternatives have both advantages and limitations.
Dr Omkumar Krishnan IMT Ghaziabad