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Analysing Consumer Markets and Buying Behaviour
▪Why and why not a consumer buys a product? (Necessity, for releasing
stress, for status, for socialising etc.)
• The marketing concept stresses that a firm should create a Marketing Mix
(7 Ps) that satisfies (gives utility to) customers, therefore there is a need to
analyse the what, where, when and how consumers buy.
Impulse Purchase We plan to buy but don’t We plan to buy specific brands/
Sometime we don’t plan have specific brands/ styles/ styles/ colours/ quantities in
to purchase yet we buy colours/ quantities in mind mind
• When making a decision to buy a product from many
competing products, a consumer unknowingly passes
through a few stages of the decision process.
Organizations can control the stimuli through managing their strategies (STP) and tactics
(7Ps), also there are uncontrollable stimuli related to external business environment and
socio-cultural environment of an individual.
They are always striving to understand the buyers black box (like an aircraft carries all
information) which contains the reasons why consumers buy or don’t buy
Buyers response is an out come of VALUE they receive, satisfaction and dissatisfaction,
usually uncontrollable yet can be managed through ensuring satisfaction or delight
Socio Cultural Environment
INPUT 1. Family
Firm’s Marketing Efforts
2. Informal Sources
1. Product 3. Non Commercial Sources
2. Promotion 4. Social Class, Culture
3. Price
4. Channels of Distribution
P
R
O Need Recognition
C Psychological Field
E Pre Purchase Search Motivation
S Perception
S Learning, Personality
Evaluation of Alternatives
Experiences
Purchase
Trial
OUTPUT Repeat Purchase
Post Purchase Evaluation
Consumer Decision Making Process
The Consumer or Buyer Decision Making Process is a method used by
marketers to identify and track the decision making process of a customer
journey from start to finish.
1.Need Recognition
1. Need
2. Information Search
2. Alternatives
4. Purchase 4. Purchase
A customer makes a pro’s vs. con’s list to help make their decision.
People often don’t want to regret to make a decision so they take extra time in
information search.
the customer has determined what will satisfy their want or need
will begin to seek out the best deal.
may be based on price, quality, or other factors that are important to them.
omers read many reviews and compare prices, ultimately choosing the one that satisfies most of their para
nizations should ensure to understand the parameters on which consumers evaluate their purchase.
Purchase
maller quantity and it would be also termed as Exploratory phase.
samples, offer testers, sell small quantities to induce trials. (There could be many other creat
ly related to brand loyalty, which firms try to encourage because it contributes to greater stab
expectations
Purchase sub-decisions
• Brand Decision Creating right positioning and
brand image
Neighbourhood shop,
•Vendor Decision Exclusive Showroom,
Mall, Multibrand outlet
Location
Cash
• Payment Methods Credit Card
Debit Card
Cheque
DECISION MAKING SET
CHOICE SET
TOTAL SET Best preferred choices
CONSIDERATION SET
All brands and out of consideration set
After evaluation of all
variety available in
alternatives few are matching
the market
the specific needs or expected
value and would be chosen in
case of non-availability of the
one of the chosen brands
DECISION
Post Purchase Behaviour
The purchasing process does not end when a consumer buys a product .
After the purchase consumers tend to evaluate their experience to decide if they
are satisfied or dissatisfied.
The information is used for future reference and for passing on information to
others who seek advice.
Outcomes of
Satisfaction
Example - Authenticity of
How consumers are likely to search for various information sources
information like friends, family, experts
etc.
Example- Colour,
Importance placed on certain attributes of Technology Acceptance,
products /services Size
Reference Group
Family
ds
Aspirational Group
Higher social status
Celebrities
A Professional group
Dissociative Groups - A group to which one never wishes to belong to
Dissociative Group
Lower Social Status
Certain groups within reference group
The marketers should try to identify the roles within the reference group that influences
the behavior of others.
Opinion Leaders - a well-known/ popular individual that has the ability to influence the
opinion of those who are in the reference group.
There could be different opinion leaders within the group for different product categories
like fashion, mobile phones, gadgets, holidays etc.
Son or daughter of the family may become an INFLUENCER by highlighting the need and
collecting information on latest refrigerators available in the market
Mother or Father may decide that it is high time the refrigerator is changed
Mother the DECIDER generally would decide about the capacity and other features of the
refrigerator like convertible selves / water dispenser on the door etc.
ultiple roles like at her organization she may have a responsibility as senior manager but at home
-Law etc.
nsibilities change.
n to person that results in a different set of perceptions, attitudes and behavior towa
Age and life-cycle have potential impact on the consumer buying behavior.
It is obvious that the consumers change the purchase of goods and services
with the passage of time.
C. Economic Situation
Product Choice is greatly affected by economic circumstances of an
individual like:
Personality is not what one wears; rather it is the totality of behavior of a man in
different circumstances.
The Psychological Factors are the factors that talk about the psychology
of an individual that drive his actions to seek satisfaction.
People satisfy their most important needs first. The needs are placed in a
hierarchical order.
Organizations must identify the needs and latent motives behind buying their
products to ensure creating value accordingly - Functional or emotional benefits
B. Perception
Perceptions can vary widely among individuals exposed to same situation.
The skills are developed through practice while the knowledge and
intention are acquired with the experience.
Attitudes tend to be enduring, and because they are based on people’s values
and beliefs, they are hard to change.
A product might be really good but if the consumer feels it is not worth, he
would never buy it.
Types of Buying Behaviours
• Consumers would demonstrate different buying behaviour
based on;
• Non-Prospects
Experts have suggested FOUR types of buying behaviours which depend on
involvement a consumer has with the product and differentiation offered by
the organization.
Low involvement:- when the consumer is not highly involved while buying a
product. It happens in case of low price goods.
Few differences between brands:- it means when there are very little
differences between brands.
Types of Buying Behaviours
Significant Differences
Between Brands Complex Buying Variety Seeking
Behaviour Buying Behaviour
Dissonance
Few Differences Reducing Buying Habitual Buying
Between Brands
Behaviour Behaviour
Complex Buying Behaviour
For eg. Consumer while buying a motor cycle is highly involved in the
purchase and has the knowledge about significant differences between
brands.
Variety Seeking Buying Behaviour
Like every time they may buy different flavours of snacks/ fragrances/
styles/ designs etc. to break monotony.
The consumer buys the product quickly without making information search
or making extra effort to travel to a specific location/ waiting for the
availability. There is no strong attitudes for any brand.
1.They have been using that brand for extended period of time thus being
familiar with the brand