Consumer Buying

Behaviour

The most
important thing is
to forecast where
customers are
moving, and be in
front of them.

Consumer Behavior

Processes a consumer uses

to make purchase
decisions, as well as to use
and dispose of purchased
goods or services; also
includes factors that
influence purchase
decisions and the product
use
Chapter 4 Version 3e

Types of buyer
Individual buyer
Business buyer

Influence of Social science on

buyer behaviour studies
Economics: Human is a rational buyer who
wants to take maximum utility out of
fixed/minimum price.
Psychology: Acc. To psychology any human
activity is directed towards meeting certain
needs. ( maslow`s Need Hierarchy)
Sociology & anthropology: Effect of
reference group, society, role in society,
etc.

Buying Behaviour Model

The Economic Model: A man divide his
fixed income in a certain rational way.
Learning model: Behaviour can be
manipulated by the drives, stimuli etc.
Psychoanalytical model: Consumer has
the set of deep rooted motives that
drives him to purchase or not to
purchase
Sociological Model

 Nicosia Model: This Model establish the

link between consumer and the firm.
--- Advertising message of the firm
influence the predisposition of the
consumer
The consumer develops the attitude for
the product
Search for the information
If all these activities have positive
impact, purchase the product.

 All the activities are divide into four

basic fields:
Field oneit has two subfields: Firm
& consumer
Advertising message by the firm
Depending upon the situation
consumer develops the attitude.

Field two: Search & evaluation

Field three: Act of purchase
Field four: use of purchase item
Feedback of field is used to know the
sales result

The Howard-Sheth Model

Inputs in the form of stimuli
Output beginning with the attention
given to stimulus & ending with
purchase

Factors Influencing Consumer

Behavior
Cultural

Social

Personal

Psychological

Culture

Reference
Groups

Age & LifeCycle Stage

Motivation

Family

Occupation

Roles &
Status

Economic
Situation
Lifestyle
Personality &
Self-Concept

Perception
Learning

Maslows Hierarchy
of
Needs
5

SelfSelfactualization
actualization

(self-development
(self-development
andrealization)
realization)
and

Esteem needs
needs
4 Esteem

(self-esteem,recognition)
recognition)
(self-esteem,

Social needs
needs
Social
3 (sense
(senseof
of belonging,
belonging,love)
love)

2
1

Safetyneeds
needs
Safety
(security,protection)
protection)
(security,
Psychological needs
needs
Psychological
(food, water,
water,shelter)
shelter)
(food,

Characteristics Affecting
Consumer Behavior
Psychological Factors

Perception is the process by

which people select, organize,
and interpret information to form
a meaningful picture of the world
from three perceptual processes
Selective attention
Selective distortion
Selective retention

Characteristics Affecting
Consumer Behavior
Psychological Factors

Attitudes describe a persons

relatively consistent evaluations,
feelings, and tendencies toward an
object or idea

Buying motives
Product motives (emotional &
rational)
Patronage motives

Buying habits
Buying habits vary according to the
type of goods---- Convenience goods
Shopping goods
Specialty goods

Buying process

Problem recognition
Awareness
Comprehension
Attitude
Legitimization
Trial ( depend on the product category)
Adoption
Post purchase behaviour

Five stage Consumer

Decision-Making Process
Need
Need Recognition
Recognition

Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological
Psychological
Factors
Factors
affect
affect
all
all steps
steps

Information
Information Search
Search
Evaluation
Evaluation
of
of Alternatives
Alternatives
Purchase
Purchase
Postpurchase
Postpurchase
Behavior
Behavior

Chapter 4 Version 3e

19

High involvement & low

involvement situations

Classification of Business
buyers

Buyers in
Buyers in
Buyers in
Resellers
Buyers in
Buyers in

agriculture sector
industrial sector
service sector
govt. sector
non profit business

The Buyer Decision Process

for New Products
Adoption process is the mental
process an individual goes through
from first learning about an
innovation to final regular use.
Stages in the process include:

Classification of consumer
according to their readiness
to try new products

Innovators
Early adopters
Early majority
Late majority
Laggards

Business Buyer: buying

patterns

Goes through long negotiation

Frequency of purchase
Size of order
Several participants in buying
decision
Distribution channel

Speciality due to
characteristics of
Market/product
Buying clout

Concentration of Buyer
Direct, one to one Relation with buyer
Technical support to buyer
New product diffusion is slower
Buyer may buy through intermediaries
Closer monitoring of supply sources/ prices of
products
Derived demand
More of rational buyer
Business buying is partnering

The Indian consumer

Demographics
Size of population
Literacy rate
A vast educated manpower
Diversity, the hallmark--- religious,
linguistic, dress & food habits
Geographic Spread

Favourable shift in
consumption in past
liberalization years

According to Centre for monitoring

Indian Economy :
Food and beverage account for large
part of consumption expenditure. But
share of food has declined from
50.37(1998-99)% to 45.68( 1993-94)
Share of transport and communication:
11.26---14.51
Medical and health care3.38-4.25

 Consumption of furniture and

household appliances- 3.05-3.25
50 percent increase in education
expenditure

Changes in life style and

buying habits
Ready to eat food are popular now
Vacuum cleaner and cooking ranges
have entered into households
Shift in woman`s attitude towards
cooking
Yesterday`s luxuries are becoming
necessities

Classification of Indian
consumers based on
economic status

The
The
The
The

affluent group
middle class
relatively poorer section
BPL section

The middle class explosion

Size--300 million
As The consumption community
Not confined to big cities
Constructive discontentment
The phenomenon of second
Voting for credit purchase

The main segment in middle

class
The middle class male
The middle class woman
The middle class teenager

The middle class male

A security seeking class
A blend of traditional and nontraditional
Middle class male prefer ready-made
Travel on increase
Prestige conscious
Strong family ties
He is not the sole decision maker

The middle class woman

Cautious, but not averse to change
Quality conscious as well as cost
conscious
Leisure seeking
Aware of new technology
Good sense of grooming
New self concept