TM 303 : Industrial Management

Lecture 8

Consumer Buyer Behavior

 Consumer Buying Behavior

• Consumer Buying Behavior refers to

the buying behavior of final consumers
(individuals & households) who buy
goods and services for personal
consumption.

• Study consumer behavior to answer:

“How do consumers respond to
marketing efforts the company might
use?”
 Consumer Markets and Buying Behavior

The environment Buyer’s black box Buyer responses

Marketing Buying attitudes and preferences
stimuli Other Buyer’s characteristics Purchase behavior: what the buyer buys,
Product Economic Buyer’s decision process when, where, and how much
Price Brand and company relationship behavior
Place Technological
Promotion Social
Cultural
 Model of Consumer Behavior
Product Economic
Price Stimuli
OtherStimuli Technological
Other
Place and
Marketingand
Marketing Political
Promotion Cultural

Buyer’s Characteristics
Decision Box
Black Box
Buyer’s Black
Buyer’s Affecting
Process Consumer
Behavior

Product Choice Purchase

Response
Buyer’s Response Timing
Brand Choice Buyer’s
Purchase
Dealer Choice Amount
Characteristics Affecting Consumer Behavior

Culture
Social
Personal
Psychological
Buyer
Buyer
 Factors Affecting Consumer Behavior:
Culture

•• Most
Most basic
basic cause
cause of
of aa person's
person's wants
wants and
and
behavior.
behavior.
•• Values
Values
•• Perceptions
Perceptions
Subculture
Subculture Social
SocialClass
Class
••Groups
Groupsofofpeople
peoplewith
withshared
shared ••People
Peoplewithin
withinaasocial
socialclass
class
value
valuesystems
systemsbased
basedon
on tend
tendto
toexhibit
exhibitsimilar
similarbuying
buying
common
commonlife
lifeexperiences.
experiences. behavior.
behavior.
••Hispanic
HispanicConsumers
Consumers ••Occupation
Occupation
••African
AfricanAmerican
AmericanConsumers
Consumers ••Income
Income
••Asian
AsianAmerican
AmericanConsumers
Consumers ••Education
Education
••Mature
MatureConsumers
Consumers ••Wealth
Wealth
 Roles
Rolesand
andStatus
Status
Family
Family
Social
Social Factors
Factors ••Husband,
Husband,wife,
wife,kids
kids
••Influencer,
Influencer,buyer,
buyer,user
user
Groups
Groups
••Membership
Membership
••Reference
Reference
Social
Factors Affecting Consumer Behavior:
 Interests
Interests
Opinions
Opinions Activities
Activities
Lifestyle
Lifestyle Identification
Identification
Personality
Personality&&Self-Concept
Self-Concept Economic
EconomicSituation
Situation
Age
Ageand
andFamily
FamilyLife
LifeCycle
Cycle
Occupation
Occupation Stage
Stage
Personal
Personal Influences
Influences
Personal
Factors Affecting Consumer Behavior:
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological

Motivation
Motivation

Beliefs
Beliefs and
and Psychological
Factors PPerception
erception
Attitudes
Attitudes

Learning
Learning
 Types of Buying Decisions

High Low
Involvement Involvement
Behavior Behavior
Significant
differences
Buying Seeking
between
Complex Variety-
brands
Few
Behavior Behavior
differences Reducing Buying Buying
between Dissonance- Habitual
brands
Postpurchase
Postpurchase Behavior
Behavior
Purchase
Purchase Decision
Decision
Evaluation
Evaluation of
of Alternatives
Alternatives
Information
Information Search
Search
Need
Need Recognition
Recognition
The Buyer Decision Process
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition

Need
Need Recognition
Recognition
Difference
Differencebetween
betweenan
an actual
actualstate
stateand
andaadesired
desiredstate
state

Internal
Internal Stimuli
Stimuli External
External Stimuli
Stimuli
•• Hunger
Hunger ••TV advertising
TV advertising
••Thirst
Thirst ••Magazine
Magazinead
ad
••AAperson’s
person’snormal
normal ••Radio
Radioslogan
slogan
needs
needs
••Stimuli
Stimuliin
inthe
the
environment
environment
The Buyer Decision Process
Step 2. Information Search

Personal Sources
Personal Sources
Commercial Sources
Commercial Sources
•Family, friends, neighbors
•Most influential source of
information
•Advertising, salespeople
•Receives most information
from these sources

Public Sources
Public Sources •Mass Media
•Consumer-rating groups

Sources
Experiential Sources
Experiential •Handling the product
•Examining the product
•Using the product
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
ProductAttributes
Attributes
Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features

Degree
Degreeof
ofImportance
Importance
Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?

Brand
BrandBeliefs
Beliefs
What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?

Total
TotalProduct
ProductSatisfaction
Satisfaction
Based
Basedon
onwhat
whatI’m
I’mlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?
Evaluation
EvaluationProcedures
Procedures
Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.
The Buyer Decision Process
Step 4. Purchase Decision

Purchase
Purchase Intention
Intention
Desire
Desire to
to buy
buy the
the most
most preferred
preferred brand
brand

Attitudes Unexpected
of others situational
factors

Purchase
Purchase Decision
Decision
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 5.
5. Postpurchase
Postpurchase Behavior
Behavior
Consumer’s
Consumer’s Expectations
Expectations of
of
Product’s
Product’s Performance
Performance
Product’s Perceived
Performance

Satisfied
Satisfied Dissatisfied
Dissatisfied
Customer!
Customer! Customer
Customer
Cognitive Dissonance
 Adoption
Adoption
Trial
Trial
Evaluation
Evaluation
Interest
Interest
Awareness
Awareness
Stages in the Adoption Process
 Influences on the Rate of Adoption
of New Products

Communicability Relative Advantage

Can results be easily Is the innovation
observed or described superior to existing
to others? products?

Product
Divisibility Characteristics Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or use?
Thanks For your attention