BUYER BEHAVIOR

Chapter 4.
Consumer Buying Behaviour
Discussion Questions
 How do consumer characteristics influence buying
behavior?
 How do consumers make purchasing decisions?
 How do marketers analyze consumer decision
making?

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Consumer Markets and Consumer Buying
Behavior
 It refers to the buying behavior of final
consumers- individuals and households that
buy goods and services for personal
consumption.
 The term consumer behavior is defined as the
behavior that consumers display in searching
for, purchasing, using, evaluating, and
disposing of products and services that they
expect will satisfy their needs.

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Consumer Markets and Consumer Buying
Behavior
 Marketers spend more money than ever to
study consumers, trying to learn more about
consumer behavior. Who buys? How do they
buy? When do they buy? Where do they
buy? Why do they buy?
 Marketers must fully understand both the theory and
reality of consumer behavior.
 The central question for marketers is; how do
consumers respond to various marketing stimuli
that the company might use?
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Model of Consumer Behavior

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Characteristics Affecting Consumer Behavior

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I. Cultural Factors
 Cultural factors exert the broadest and deepest
influence on consumer behavior.
 The marketer needs to understand the role played by
the buyer's culture, subculture and social class
 Culture, subculture, and social class are
particularly important influences on consumer
buying behavior.

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II. Social Factors
A consumer’s behavior is influenced by
such social factors as reference groups,
family, and social roles and status.
A. Reference Groups
 Reference groups consist of all of the groups
that have a direct (face-to-face) or indirect
influence on a person’s attitudes or behavior.
 Groups that have a direct influence on a
person are called membership groups.
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III. Personal Factors
The third factor is personal
characteristics, including the buyer’s
age, stage in the life cycle,
occupation, economic circumstances,
lifestyle, personality, and self-
concept.
 Because many of these have a direct impact on
consumer behavior, it is important for marketers to
follow them closely
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IV. Psychological Factors
A person's buying choices are further
influenced by four important
psychological factors:
 motivation, perception, learning, and
beliefs and attitudes.

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The Buying Decision Process

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The Buying Decision Process
 Smart companies try to fully understand
customers buying decision process-the
experiences in learning, choosing, using, and
even disposing of a product
 Consumers don’t always pass through all five
stages, they may skip or reverse some.
 When you buy your regular brand of toothpaste,

you go directly from the need to the purchase

decision, skipping information search and
evaluation.
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The Buying Decision Process
 Information Search (Personal, Commercial, Public,
Experiential)

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 The Buying Decision Process
 Evaluation of Alternatives

 Some basic concepts will help us

understand consumer evaluation
processes:
 First, the consumer is trying to satisfy a need.
 Second, the consumer is looking for certain
benefits from the product solution.
 Third, the consumer sees each product as a
bundle of attributes with varying abilities to
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The Buying Decision Process

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 The Buying Decision Process
 Post purchase Behavior
 After the purchase, the consumer might
experience dissonance from noticing certain
disquieting features or hearing favorable things
about other brands and will be alert to
information that supports his or her decision.

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The Buying Decision Process
 Post purchase Behavior: Post Purchase Uses & Disposal

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Types of Buying Decision Behavior
Assael distinguished four types of
consumer buying behavior, based on the
degree of buyer involvement and the
degree of differences among brands:
1. Complex buying behavior
2. Dissonance reducing buying behavior
3. Habitual buying behavior
4. Variety seeking buying behavior

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Four types of Buying Behavior
High involvement
Complex buying behavior—
applies when product is expensive,
bought infrequently, risky, and self
expressive; buyer first develops
beliefs about the product, then
develops attitudes about it, and
finally makes a thoughtful choice.
Low involvement
Variety-seeking buying behavior
—applies when buyer switches brands
for the sake of variety rather than
dissatisfaction; buyer has some beliefs
about the product, chooses a brand with
little evaluation, and evaluates the
product during consumption.

Dissonance-reducing behavior — Habitual buying behavior—

applies when the product is
applies when the product is low-cost
expensive, bought infrequently, and
risky; buyer shops around and buys
and frequently purchased; buyers do
fairly quickly, then later experiences not pass through normal sequence of
dissonance but stays alert to belief, attitude, and behavior but
information supporting the purchase instead make decisions based on
decision. brand familiarity.
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Organizational Buying
 Organizational buying is the decision-making
process by which formal organizations establish
the need for purchased products and services and
identify, evaluate, and choose among alternative
brands and suppliers.
 The business market consists of all the
organizations that acquire goods and services
used in the production of other products or
services that are sold, rented, or supplied to
others.
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 r
Characteristics of Business Markets

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A Model of Business Buyer Behavior

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 Major Influences on
Business Buying Behavior

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 Stages in the
Business Buying Behavior

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Individual assignment (20%)
Take a Case of Ethiopian
(Government) Organizations
Buying Behaviour process
Study And report
ON FINAL EXAM DATE

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FORMAT GUIDE FOR IND ASSIGNMENT pp7-10

SELECT A COMPANY
 INTRODUCTION
 Write a short organization background
 Objectives of the assignment and its significance
 WRITE LITERATURES RELATED TO
ORGANIZATIONAL BUYING BEHAVIOUR
 Theoretical and Ethiopian experience
 Collect data/information how the selected organization
implements the buying process, write your finding
 CONCLUSION
 RECOMMENDATION

REFERENCES
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STP 12/22/21