ANALYZING CONSUMER

BUYING BEHAVIOR
By Saqib Ghias
Cultural Factors
 Culture
 Everyone acquires some set of values, perceptions,
preferences & behaviors through his family and other
institutions
 Pakistan has seen a shift in its culture in following areas:
 Media (previously only PTV)
 Education (More emphasis on educating children
specially females)
 Fashion (New brands and trends in this area)
 Internet (More trend towards shopping online)
Kenwood Ad based on Consumer
Behavior
Subculture
 Subculture
 Groups of people in any country who share common
geographic, ethnic, racial or religious backgrounds
 Pakistan has four provinces and all four have there
own distinct culture. The city of Karachi has many
subcultures as people from all provinces are
dwelling in Karachi.
 E.g. Sindh Handicrafts, Multan Sohan Halwa, Sajji
Balochistan, Chapli Kabab KPK
Social Class

 Social class is not determined by a single factor,

such as income but it is measured as a combination
of various factors, such as income, occupation,
education, authority, power, property, ownership,
life styles, consumption, pattern etc.
 Broadly speaking there are three social classes
 Upper class
 Middle class
 Lower class
Distribution of Social class in Pakistan
Middle Class booming in Pakistan
 According to report Pakistan middle class defined as
having daily per capita expenditures of $ 2 – 10 grew
from 32% to 55% b/w 2002 – 2011.
 According to reports approximately 84 million people
belong to middle and upper middle class in Pakistan
 Rising consumer demand is being witnessed by increase
in consumer financing, increase in sale of consumer
durables and sharp growth in fuel consumption.
 IBA-SBP consumer confidence index recorded highest
ever level of 174.9 points in January 2017, showing
increase of 17 points from 2016.
Consumer Confidence Index 2017
Social Factors
 Reference Groups
 It consists of all the groups that have a direct (face
to face) or indirect influence on the person’s
attitudes or behaviors. Opinion leaders, Aspirational
Groups, Dissociative Groups
Influence of reference groups on automobile
buying decisions of young executives

 Ha(1):Reference groups have a significant influence

on the young executives with respect to cars they
purchase.
 Ha(2):Work colleagues have the stronger influence
on the decision making than informal reference
groups (friends).
 Ha(3):Value expressive influence is significantly
most important influence model.
 Ha(4):There is a strong relationship between salary
and the type of car intended to purchase
Influence of reference groups on automobile
buying decisions of young executives

Research Step How it was addressed?

Data Collection
Participant Characteristics
Sampling Technique
Sample Size
Instrument Used
Analysis Tools
Primary Data Used
Male and Female; Age 22-35
years; Working in
local/multinational companies;
Minimum Education: Graduate
Convenience Sampling
125
Questionnaire
SPSS and Microsoft Excel
Influence of reference groups on automobile
buying decisions of young executives-Results

 Reference group have a deep influence on

purchase decision of young executives. Hypothesis 1
accepted
 Influence of work groups is more stronger on young
executives than informal groups. Hypothesis 2
accepted
 Informational and value expressive influence has a
significant positive impact on young executive
decisions however utilitarian influence is not
significant
Influence of reference groups on automobile
buying decisions of young executives-Results

 There exists no significant relationship between

monthly salary and type of automobile young
executives tend to purchase. Hypothesis 4 rejected
Influence of reference groups on automobile buying
decisions of young executives Conclusion

 Research study shows that reference groups have a

very deep influence on buying decision of automobiles
by young executives. Hypothesis 1 accepted
 Research also reveals that young executives want to
impress others by choosing brands that reflect more
positively on their personalities
 Marketers can thus use this consumer insight and
influence such unconscious behavior of young executives
through formal reference groups, and also by including
value expressive elements to attract this group of
people towards their brands
Impact of Advertisement on consumer behavior: A
study of cosmetic industry of Karachi

 Total Respondents 200

 Hypothesis
 There is no relationship between advertisement and
consumer awareness
 There is a relationship between advertisement and
consumer perception
 Consumer awareness and consumer perception have
no impact on buying behavior
Impact of Advertisement on consumer behavior: A
study of cosmetic industry of Karachi

 Conclusion
 People get awareness through advertisement regarding
cosmetics.
 There is no relationship between advertisement and
consumer perception about cosmetic products
 Perception is mainly driven from use of product mainly
and other options include recommendation of the peers,
friends, colleagues etc.
 Cosmetics are sensitive products and people do not
want to do experiments with their skin, so it is difficult to
change people’s perception from advertisements.
Impact of Advertisement on consumer behavior: A
study of cosmetic industry of Karachi

 Consumer awareness and consumer perception have

a direct influence on buying behavior. Although the
impact of both these factors is low but still they
shape consumer behavior
 Conclusion
 Cosmetic companies should use attractive and
informative content to create awareness among
consumers and should not rely only on
advertisement for changing consumer perceptions
Family

 Marketers are interested in understanding the

influence of family members in purchasing of
products and services
 Recent research in Pakistan indicates that children
now influence purchase decisions of parents due to
a number of reasons mentioned below:
 Families are living independently instead of joint
living where elders would influence decision
Family
 Due to availability of internet children are aware
of latest advertisements
 More families are now following dual careers due
to which parents feel guilty about not spending
much time with children so they tend to fulfill
children wishes
 Media influence on children cannot be overlooked
as we observe that with the beginning of FIFA world
cup children play more football
Roles and Status

 Every role carries a status. Marketers position

products according to roles and status of people
 For e.g. A CEO will always wear branded suits and
move around in Luxury cars as his role demands all
these amenities
Personal Factors
 Age (Food, Clothing, Recreation)
 Stage of Life (Marriage, Childbirth, Relocation, Illness,
Career change)
 Occupation (Spendable income, Assets and savings,
borrowing power, attitudes towards spending and
saving)
 Personality (Self confidence, Dominance, Autonomy,
Deference, Sociability)
 Self concept (Self image & Self monitors)
 Lifestyles and values (Activities, Interests and Opinions)
Psychological Factors
Research: Factors influencing the acceptance
of online shopping in Pakistan (Psychology)

 The most important factor in choosing online

shopping is convenience
 Second important factor is more available variety
 Online shoppers in Pakistan do not have the option
of customization as against international websites
 Perceived risk measured by four variables
performance risk, online payment risk, delivery risk
and privacy risk. Online shopping offers cash on
delivery option which reduces this risk component.
Research: Pakistani consumers behavior
towards international Luxury brands (Fashion
Brands)
 Luxury Brands Purchased abroad
Impulsive decision making
 Same brands Purchased locally All 5 stages
followed
 Need for uniqueness, Need for Affiliation are two
major motives behind luxury brand purchase
 Most consumers rely on Market dominated resources
rather than family and friends while purchasing
brands
Research: Pakistani consumers behavior
towards international Luxury brands (Fashion
Brands)
 Although more affluent buyers purchase luxury brands
but they still keep in mind religious consideration when
choosing clothing
 Pakistani consumers are not very experimental when it
comes to choosing clothing and play more on safe side
 The consumers of such brands are not price sensitive
 Rarity of luxury product is perceived as luxurious
 Online purchase of luxury products is not recommended
by consumers. They want in store experience so luxury
brands should consider opening stores
Theory of Sigmund Freud
Maslow’s Theory
Herzberg’s Theory
Perceptions
 Perception is the process by which an individual selects, organizes
and interprets information inputs to create a meaningful picture of
the world

 Selective Attention: is simply the act of focusing on a particular

object for a period of time while simultaneously ignoring irrelevant
information that is also occurring.

 Selective Distortion: is an individual changing or twisting of

information when it is inconsistent with feelings and beliefs

 Selective Retention: is remembering information that supports

personal feelings and beliefs and forgetting inputs that do not.
Learning
 Learning involves changes in human behavior
arising from experience
 Human behavior is learned. It is produced through
the combination of drive, stimuli, cues, responses
and reinforcements
 Learning theory teaches marketers that they can
build strong demand for a product by associating it
with strong drive, using motivating cues and
providing positive reinforcements
Beliefs and Attitudes
 A belief is a descriptive thought that a person holds
about something
 Manufacturers are interested to know what beliefs
people carry about there products.
 An attitude is a person’s enduring favorable or
unfavorable evaluations, emotional feelings, and
action tendencies toward some object or idea.
 Companies are well advised to fit products in
existing attitudes rather trying to change people’s
attitudes.
Examples of Buying Decision Behavior

 Complex Buying Behavior: e.g Purchasing a

Computer. Differentiate brands features, use media
to highlight brand’s benefit and motivate store sales
personnel to influence brand choice
 Dissonance reducing Buying Behavior: e.g.
Purchasing of carpet. Marketing communication
should reinforce buyers belief that he has made the
right brand choice
Examples of Buying Decision Behavior

 Habitual Buying Behavior: e.g. Ball pen or

Fountain pen. Marketers link such things to some
important issue, or some important personal
situation, advertising triggers some personal values
or ego, or add an important feature.
 Variety seeking buying behavior: e.g Cookies.
Different strategy for Market leader and
Challenger
Stages of the buying process
References
 Akram, A., Haq, N. U., Riaz, S., Ahmed, N., &
Hamid, R. (2015). Satisfaction with life of general
population of pakistan. A nation wide survey. Value
in Health, 18(7). doi:10.1016/j.jval.2015.09.2862
 Pakistan's middle class continues to grow at rapid
pace. (2017, May 03). Retrieved from
https://tribune.com.pk/story/1398602/pakistans-
middle-class-continues-grow-rapid-pace/
References
 IJCSI International Journal of Computer Science
Issues, Vol. 9, Issue 3, No 1, May 2012 ISSN
(Online): 1694-0814 www.IJCSI.org [“How Online
Shopping Is Affecting Consumers Buying Behavior in
Pakistan?” Sajjad Nazir 1, Arsalan Tayyab 2, Aziz
Sajid 3, Haroon ur Rashid 4, Irum Javed 5]. (2012,
May 1).
References
 Business Recorder Research [Wither consumer
confidence?]. (2018, June 22).
 Asghar, S. A., & Valeecha2, S. (2013, November
4). World Review of Business Research Vol. 3. No. 4.
November 2013 Issue [Influence of Social Reference
Groups on Automobile Buying Decision – Research
on Young Executives].
References
 ISHAQUE, I., & TUFAIL, M. (2014, March). International
Review of Management and Business Research [Influence
of Children on Family Purchase Decision: Empirical
Evidence from Pakistan].
 Fatima, S., & Lodhi, S. (2015, October). International
Journal of Management Sciences and Business
Research [Impact of Advertisement on Buying Behaviours
of the consumers: Study of Cosmetic Industry in Karachi
City.].