Consumer Buying Behaviour

The most important thing is to forecast

where customers are moving, and be in
front of them.
Consumer Behavior

Processes a consumer uses to make purchase decisions, as

well as to use and dispose of purchased goods or services;
also includes factors that influence purchase decisions and
the product use

3
Types of buyer
🞂 Individual buyer
🞂 Business buyer
Influence of Social science on buyer
behaviour studies
• Economics: Human is a rational buyer who wants to
take maximum utility out of fixed/minimum price.
• Psychology: Acc. To psychology any human activity is
directed towards meeting certain needs. ( Maslow's
Need Hierarchy)
• Sociology & anthropology: Effect of reference group,
society, role in society, etc.
Factors Influencing Consumer Behavior

Cultural Social Personal Psychological

Culture Reference Age & Life- Motivation
Groups Cycle Stage Perception
Family Occupation Learning
Roles & Economic
Status Situation
Lifestyle
Personality &
Self-Concept
 Psychological needs 1
(food, water, shelter)
Safety needs 2
(security, protection)
Social needs 3
(sense of belonging, love)
n)
Esteem needs
realizatio 4
(self-esteem, recognition)
and
ent
developm
(self-
tion
actualiza5
Self-
of Needs
Maslow’s Hierarchy
Characteristics Affecting Consumer
Behavior
Psychological Factors

Perception is the process by which

people select, organize, and interpret
information to form a meaningful picture
of the world from three perceptual
processes
◦ Selective attention
◦ Selective distortion
◦ Selective retention
Characteristics Affecting Consumer Behavior
Psychological Factors

Attitudes describe a person’s relatively consistent

evaluations, feelings, and tendencies toward an
object or idea
Buying motives
🞂 Product motives (emotional & rational)
🞂 Patronage motives
Buying habits
🞂 Buying habits vary according to the type of goods-----
🞂 Convenience goods
🞂 Shopping goods
🞂 Specialty goods
Buying process
• Problem recognition
• Awareness
• Comprehension
• Attitude
• Legitimization
• Trial ( depend on the product category)
• Adoption
• Post purchase behavior
Five stage Consumer Decision-Making 2
Process
Need Recognition

Cultural, Social, Information Search

Individual and Evaluation

Psychological of Alternatives
Factors
affect Purchase
all steps
Postpurchase
Behavior
Chapter 4 Version 3e 14
Classification of Business buyers
🞂 Buyers in agriculture sector
🞂 Buyers in industrial sector
🞂 Buyers in service sector
🞂 Resellers
🞂 Buyers in govt. sector
🞂 Buyers in non profit business
The Buyer Decision Process for New Products
Adoption process is the mental process an individual
goes through from first learning about an innovation to
final regular use.
🞂 Stages in the process include:
Classification of consumer according to
their readiness to try new products
🞂 Innovators
🞂 Early adopters
🞂 Early majority
🞂 Late majority
🞂 Laggards
Business Buyer: buying patterns
🞂 Goes through long negotiation
🞂 Frequency of purchase
🞂 Size of order
🞂 Several participants in buying decision
🞂 Distribution channel
Speciality due to characteristics of
Market/product
🞂 Buying clout
🞂 Concentration of Buyer
🞂 Direct, one to one Relation with buyer
🞂 Technical support to buyer
🞂 New product diffusion is slower
🞂 Buyer may buy through intermediaries
🞂 Closer monitoring of supply sources/ prices of products
🞂 Derived demand
🞂 More of rational buyer
🞂 Business buying is partnering
The Indian consumer
🞂 Demographics
🞂 Size of population
🞂 Literacy rate
🞂 A vast educated manpower
🞂 Diversity, the hallmark--- religious, linguistic, dress &
food habits
🞂 Geographic Spread
Changes in life style and buying habits
🞂 Ready to eat food are popular now
🞂 Vacuum cleaner and cooking ranges have entered into
households
🞂 Shift in woman`s attitude towards cooking
🞂 Yesterday`s luxuries are becoming necessities
Classification of Indian consumers based
on economic status
🞂 The affluent group
🞂 The middle class
🞂 The relatively poorer section
🞂 The BPL section