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Four Types of Buying Behavior


High Involvement Significant Differences between Brands Complex buying behavior Low Involvement VarietyVariety-seeking buying behavior

Few Differences between Brands

DissonanceDissonance-reducing buying behavior

Habitual buying behavior

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INFLUENCING BUYER BEHAVIOR

 Cultural Factors
Culture Culture is the most fundamental determinant of a persons wants and behavior. The growing child acquires a set of values, perceptions, preferences and behaviors through his or her family and other key institution. Subculture Each culture consists of smaller subcultures that provide more specific identification and socializing for their members. Subculture includes nationalities, religions, racial groups and geographic regions. Social classes Virtually all-human societies exhibit social stratification. Social classes do not reflect income alone, but also other indicators such as occupation, education and area of residence. Social classes differ in dress, speech patterns, recreational preferences and many other characteristics. Social classes show distinct product and brand preferences in many areas, including clothing, home furnishing, leisure activates and automobiles.

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SOCIO-ECONOMIC CLASSIFICATION (SEC)

 Marketing professionals use socio-economic socioclassification (SEC) of urban consumers as an indicator of the propensity of a consumer to purchase different items.  SEC A&B : Hi; SEC C: Mid; SEC D&E : Lo Hi; Mid;  Basis : Education + Occupation of CWE
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Socioeconomic Classification (SEC) MatrixIndia (Urban)

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SEC MatrixIndia (Rural)

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Socioeconomic Class-wise Distribution of Households (%)

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Indian Households by Income Groups

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Age Distribution of PopulationIndia

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INFLUENCING BUYER BEHAVIOR

 Social Factors
 Reference Groups  Membership groups  Primary groups  Secondary groups  Aspirational groups  Dissociative groups  Opinion leader Reference Groups A persons reference group consists of all the groups that have direct or indirect influence on the persons attitudes or behavior. People are significantly influenced by their reference groups in at least three ways. Reference groups expose an individual to new behavior and lifestyles. They influence attitudes and self-concept. And they create pressures for conformity that may affect actual product and brand choices 13-15

Opinion leader People -within a reference group who, because of special skills, knowledge, personality or other characteristics, exert influence on others.
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INFLUENCING BUYER BEHAVIOR


Family The family is the important consumer buying organization in society. We can distinguish between two families in buyers life. The family of orientation consists of ones parents and siblings. More direct influence on everyday buying behavior is one family of procreation- namely, ones spouse and children. Marketers are interested in the roles and relative influence of the husband, wife and children in the purchase of a large variety of products and services. These roles vary widely in different countries and social classes Roles and Statuses A person participates in many groups- family, clubs, and organization. The persons position in each group can be defined in term of role and status. A role consists of the activities that a person is expected to perform. Each role carries a status. Marketers are aware of the status symbol potential of products and brands.
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INFLUENCING BUYER BEHAVIOR

 Personal Factors
 Age and Stage in the Life Cycle
 Family life cycle

 Occupation and Economic Circumstances

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Stages in the Family Life Cycle


1. Bachelor stage: Few financial burdens. Fashion opinion Young, single, not living leaders. Recreation oriented. Buy: basic home equipment, furniture, cars, equipment for the at home mating game; vacations. 2. Newly married couples: Young, no children 3. Full nest I: Youngest child under six Highest purchase rate and highest average purchase of durables: cars, appliances, furniture, vacations. Home purchasing at peak. Liquid assets low. Interested in new products, advertised products. Buy: washers, dryers, TV, baby food, chest rubs and cough medicines, vitamins, dolls, wagons, sleds, skates. Financial position better. Less influenced by advertising. Buy larger-size packages, largermultiplemultiple-unit deals. Buy: many foods, cleaning materials, bicycles, music lessons, pianos.

4. Full nest II: Youngest child six or over

See text for complete table

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DISCUSSION QUESTION
With the graying of the populace, marketers have begun to shift images and cultural references in advertising from things that are relevant to the twenty-somethings to images of twentyactive seniors, and soundtracks from the sixties and seventies. Can you identify any particular seventies. ad campaigns that fit this pattern?

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INFLUENCING BUYER BEHAVIOR  Personality and Self-Concept Self Personality  Brand personality
     Sincerity Excitement Competence Sophistication Ruggedness

 Self-concept Self Persons actual self-concept self Ideal self-concept self Others self-concept self13-21

The VALS segmentation system: An 8-part typology




Groups with High Resources


1. Actualizers 2. Fulfilleds 3. Achievers 4. Experiencers

Groups with Lower Resources


1. 2. 3. 4. Believers Strivers Makers Strugglers
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INFLUENCING BUYER BEHAVIOR

 Psychological Factors
 Motivation
 Motive

 Freuds Theory
 Laddering  Projective techniques

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INFLUENCING BUYER BEHAVIOR

 Ernest Dichters research found: found:


 Consumers resist prunes because prunes are wrinkled looking and remind people of old age. age.  Men smoke cigars as an adult version of thumb sucking. sucking.  Women prefer vegetable shortening to animal fats because the latter arouse a sense of guilt over killing animals. animals.
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INFLUENCING BUYER BEHAVIOR  Maslows Theory

Maslows Hierarchy of Needs

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INFLUENCING BUYER BEHAVIOR  Herzbergs Theory


 Dissatisfiers  Satisfiers

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INFLUENCING BUYER BEHAVIOR

 Perception
 Selective attention
 People are more likely to notice stimuli than relate to a current need  People are more likely to notice stimuli than they anticipate  People are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli

 Selective distortion  Selective retention


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INFLUENCING BUYER BEHAVIOR  Learning


 Drive  Cues  Discrimination

 Beliefs and Attitudes


 Belief
 Spreading activation

 Attitude

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INFLUENCING BUYER BEHAVIOR


 Learning When people act they learn. Learning involves changes in an individuals behavior arising from experience. Most human behavior is learned. Learning theorists believe that learning is produced through the interplay of drives, stimuli, cues, responses and reinforcement.
 A drive is a strong internal stimulus impelling action.  Cues are minor stimuli determine when, where and how a person respond.

 Beliefs and Attitudes Through doing and learning, people acquire beliefs and attitudes. These it turn influence buying behavior. A belief is a descriptive thought that a person holds about something. Beliefs may be based on knowledge, opinion, or faith. They may or may not carry an emotional charge. Of course, manufacturers are very interested in the beliefs people carry in their heads about their products and services. These beliefs make up product and brand images, and people act on their images. An Attitude is a persons enduring favorable or unfavorable evaluations, emotional feeling and action tendencies toward some object or idea.
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THANK YOU

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