Buying Behavior

DEFINITION
 Consumer behaviour or
buyer behaviour is
defined as the behaviour
that consumers display in
searching for, purchasing,
using, evaluating and
disposing of products and
services that they expect
will satisfy their needs.
 BUYING CHARACTERISTICS INFLUENCING
CONSUMER BEHAVIOR
1. Cultural 2. Social 3. Personal 4. Psychological
Culture Reference Age and life Motivation
groups cycle stage
Subculture Family Occupation Perception
Social class Roles and Economic situation Learning beliefs
status Lifestyleand attitudes
Personality and
self-concept
BUYING ROLES
 Initiator : a person who first suggests the idea of buying
the product or service.
 Influencer : a person whose view or advice influences
the decision
 Decider : a person who decides on any component of
buying decision: whether to buy, what to buy, how to
buy, or where to buy.
 Buyer : the person who makes the actual purchase

 User : a person who consumes or uses the product or

service.
BUYING BEHAVIOR
 Complex buying behavior: it involves mainly 3 steps
1. The buyer develops beliefs about the product.
2. He/she develops attitude about the product.
3. he/she makes a thoughtful choice.

 Dissonance – reducing buyer behavior: sometimes the

consumer is highly involved in a purchase but sees
little difference in brands. The high involvement is
based on the fact that the purchase is expensive,
infrequent, and risky
 Habitual buying behavior: many products are bought
under conditions of low involvement and the absence of
significant brand differences.
 Variety seeking buying behavior: some buying situations
are characterized by low involvement but significant
brand differences. Here consumes often do a lot of brand
switching.
TYPES OF BUYER BEHAVIOR
STAGES IN THE BUYING DECISION PROCESS
 BUYER BEHAVIOR MODELS
1.The Economic Model
2.The Learning Model
3.The Psycho-Analytical Model
4.The Sociological Model
5.The Howard-Sheth Model
THE ECONOMIC MODEL

 Economic model of consumer behavior is

unidimensional. This means that buying decisions of a
person are governed by the concept of utility. Being a
rational man he will make his purchase decisions with
the intention of maximizing the benefits.
Economic model is based on certain prediction of buying
behavior.
1. Price effect- lesser the price of the product, more will
be the quantity purchased.
2. Substitution effect- Lesser the price of the substitute
product, lesser will be quantity of the original product
bought.
 Income effect- More the purchasing power, more will be
the quantity purchased.
THE LEARNING MODEL
 A drive (Internal stimulus) which when directed towards
a drive reducing object becomes a motive. The various
products or services will act as stimuli to satisfy drives.
According to learning theorists, this response of
satisfaction(feeling) reinforces the relationship between
drive and the drive reducing stimulus object as well as
the related cues. Further, when consumers learn to
associate connection between stimulus and response, it
becomes a habit.
 There are certain cognitive theorists, who have
advocated that human beings not only learn to link
stimulus with response (S-R) but also results in the
formation of other cognitive processes such as attitude,
values, beliefs, motivation etc.
In simple words this learning model will help
marketers to promote associations products with strong
drives and cues and positive re-inforcements.
THE PSYCHOANALYTIC MODEL
 This model is based on the work of psychologists who
were concerned with personality. They were of the view
that human needs and motives operated at the conscious
as well as sub-conscious levels. This theory was
developed by Sigmund Frued.
 According to him human behavior (Personality) is the
outcome of
a. “Id”- the source of all psychic energy which drives us as
action
b. “Super Ego”- the internal representation of what is
approved by the society.
c. “Ego”- the conscious directing ‘Id’ impulses to find
gratification in a socially accepted manner.
THE SOCIOLOGICAL MODEL
 According to this model the individual buyer is a part of
the institution called society. Human being will be
playing different roles in society, such interaction leave
some impressions on him/her and may play a role in
influencing his/her buying behavior.
1. Intimate groups like- family, friend and close
colleagues exercise a strong influence on the life style
and the buying behavior of an individual member.
2. Similarly, depending on the income, occupation, place
of residence etc. each individual member is recognized
as belonging to a certain social class.
HOWARD SHETH MODEL

 The decision process is influenced by four major sets

of variables.
1. Inputs
2. Perceptual and learning constructs
3. Outputs
4. External variables
 Model of Buyer Behavior
HOWARD-SHETH MODEL: SIMPLIFIED ADAPTATION
CHARACTERISTICS OF BUSINESS MARKETS

1. Fewer buyers
2. Larger buyers
3. Geographically concentrated buyers
4. Derived demand
5. Inelastic demand
6. Fluctuating demand
7. Professional purchasing
ORGANIZATIONAL BUYING
PROCESS
 MAJOR CONCEPTS IN DEMAND MEASUREMENT

 Market Demand
 Market Forecast
 Market Potential
 Company Demand
 Company Sales Forecast
 Company Sales Potential
 METHODS OF SALES
FORECASTING
1. Opinion of Executives
2. Sales Force Composite Method
3. Customer’s Expectations (or survey of buyer’s intentions)
4. Statistical Sampling
5. Time Series Analysis
 LIMITATIONS
 The executive opinion method gives results based on
opinions and not facts. These forecasts are not
readily amenable to breakdown into product-wise,
month-wise or territory-wise forecasts.
 In sales force composite method, salesmen do
not use sophisticated techniques of forecasting. They
are also not experts in forecasting. They can be over-
optimistic or too pessimistic about future sales.
 In the customer’s expectations method, customers
themselves may not be aware or clear of their
consumption pattern or buying intentions. They may
also be unwilling to discuss about their intentions.