Consumer Buying Behavior

Consumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption.

Study consumer behavior to answer: How do consumers respond to marketing efforts the company might use?

Model of Consumer Behavior

Product Price Place Promotion

Marketing and Other Stimuli

Economic Technological Political Cultural

Buyers Decision Process

Buyers Black Box

Characteristics Affecting Consumer Behavior

Product Choice

Brand Choice
Dealer Choice

Buyers Response

Purchase Timing
Purchase Amount

Cultural Factors
Fundamental determinant of a Persons wants and behavior

Culture
Subculture Social Class

More specific identification and Socialization for their members Social stratification Caste, income, wealth, education

Buyer

 Reference group

Social Factors

Group on which an individuals attitude and behavior is influenced (directly or indirectly) Membership groups direct influence
Primary
Family, friends, neighbors (continuous & informal interaction)

Secondary
Religion and professional membership (formal & less continuous)

Aspirational I want to join this group.. I aspire.

Indirect influence (not belonging to the group but hopes to join)

Dissociative
Whose values or behaviors an individual rejects

Opinion leader
persons offer informal advice on product and brand choice

Personal Factors
Family life cycle
Bachelor
Young, single, not living at home (basic home equipments, furniture, clothing)

Newly married couples

young, no children & buy car, furniture, appliances, vacation

Full nest I
Youngest child under six, home purchasing at peak baby food, cough medicines, vitamins, dolls

Full nest II
youngest child six or over buy larger size packages bicycles, school notebooks, uniforms

Full nest III

older married couple with dependent children, some children get jobs dental services, magazines

Empty nest I
Older married couples, no children living with them, head of the household at job make gifts and contributions

Empty nest II
Older married couples, no children living with them, head of the household retired medical appliances, medical care products

Solitary survivor

 Personality
Set of distinguishing psychological traits
Eg. self confidence, dominance, autonomy

Brand personality
Human traits attributed to a brand
Sincerity (Raymond), excitement (Coke), competence (Philips, sony), sophistication (Mercedes), ruggedness (Levis)

Motivation - Maslows Hierarchy of Needs

5
Selfactualization
(self-development and realization)

4 Esteem needs
(self-esteem, recognition)

Social needs 3 (sense of belonging, love)

Safety needs (security, protection)

Physiological needs (food, water, shelter)

Perception
Selecting, organizing and interpreting information to have meaningful picture of the world Different for person to person Perceptual process
Selective attention
Current need, anticipated (marketeer should work hard to grab more customer attention.

Selective distortion
Tendency to twist information into personal meanings

Selective retention
Retaining information that supports attitudes & beliefs

Four Types of Buying Behavior

High Involvement Significant differences between brands Few differences between brands
Complex Buying Behavior like u buy a furniture like its A major decision

Low Involvement
VarietySeeking Behavior like buying a luggage bag.

DissonanceReducing Buying Behavior like u buy does things which of Popular brand u dont want to be Out cast.

Habitual Buying Behavior

Consumer Buying Process

Problem recognition
Information search

Its a kind of process that the consumer follow. They alwaz think these factors before buying the products. Like if I hv to buy a car then I have to make all these decision to buy the car. Post purchase means after sales response about the product

Evaluation of alternatives Purchase decision Postpurchase behavior

The Buyer Decision Process

Step 1. Need Recognition
Need Recognition
Difference between an actual state and a desired state Like I have a driving license now I want a car

Internal Stimuli Hunger

Thirst

External Stimuli
TV advertising

Magazine ad

A persons normal needs

Radio slogan
Stimuli in the environment

The Buyer Decision Process

Step 2. Information Search
Personal Sources Commercial Sources
Family, friends, neighbors Most influential source of information Advertising, salespeople Receives most information from these sources Mass Media

Public Sources

Experiential Sources

Handling the product Examining the product Using the product

The Buyer Decision Process

Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features

Degree of Importance
Which attributes matter most to me?

Brand Beliefs
What do I believe about each available brand? Based on what Im looking for, how satisfied would I be with each product?

Total Product Satisfaction

Evaluation Procedures
Choosing a product (and brand) based on one or more attributes.

Decision Making Sets

Its a kind of set we are using like we have a whole bunch of brand available to us we know little bit of brand then we see which one better then make a choice then finally our decision.

Total Set

Awareness Set

Consideration Set

Choice Set

Decision

Steps Between Evaluation of Alternatives and a Purchase Decision

Evaluation of alternatives

Its a decision evaluation thing when make a decision regarding a product then the attitude of others also affects our decision making or some situational factors happened before we buy a product. Then finally when we are making our purchase its some thing different.

Attitude of others Purchase intention Unanticipated situational factors Purchase decision

Model of Consumer Behavior

Product Price Place Promotion

Marketing and Other Stimuli

Economic Technological Political Cultural

Buyers Decision Process

Buyers Black Box

Characteristics Affecting Consumer Behavior

Product Choice

Brand Choice
Dealer Choice

Buyers Response

Purchase Timing
Purchase Amount

Consumer Analysis In order to analyze consumers, marketers need answers to the the following questions: 1. Who Buys? What is their demographic, geographic, psychographic or behavioral orientation? 2. What is Bought? Is it a core product, augmented product, service, etc. 3. Why is the Purchase Made? Influences on purchasing family, culture, friends, marketers, age, social status, etc.

Consumer Behavior In order to analyze consumers, marketers need answers to the the following questions: 4. How Often is the Purchase Made? Frequency of purchase, number of purchases, etc. 5. Where is the Purchase Made? Location, convenience, online, offline, etc. 6. When is the Purchase Made? Time, season, occasion, etc. 7. How is the Purchase Made? Decision making process

Rainbow Milk, a brand of Royal Friesland Foods, was one of the first multinational brands introduced to the Arab world in 1955. Rainbow Milk has unveiled its new look coinciding with the 50th anniversary of brand in the Gulf. One of the products under the $5 billion global company Royal Friesland Foods, the Rainbow Milk range includes evaporated milk, milk powder, drinking milk and sweetened condensed milk. "With the new packaging, we have chosen to put greater emphasis on the 27 vitamins and minerals contained in our products, while still reinforcing its great taste and heritage," said Vikas Mittal, marketing director for Friesland Foods. "This rejuvenation is part of our continuous efforts to evolve with the changing consumer needs in the region." The new brand will be introduced into the market via traditional media TV, radio, as well as instore sampling. There will be school visits in Saudi and in Dubai's summer camps. The primary targets for this product are mothers and children. Annually, in UAE alone, over 400 million cups of tea are served with Rainbow Milk. With consumers increasingly focused on nutrition, Rainbow has been first to introduce innovative products like cholesterol-free evaporated milk and cardamom evaporated milk. Although these numbers seem high, Wout Matthijs, managing director of Friesland Foods, is still wary that compared to global consumption, the average consumption of milk in the throughout the Gulf is still low. In line with this, Rainbow Milk will have an awareness campaign for the health benefits of milk and dairy products. Studies in the Arabian Gulf countries showed that only 30-35% of schoolchildren and adolescents drink milk daily. Also, it was found that as the children grow older, consumption of milk decreases and the intake of soft drinks increases. Suggest ways to increase the consumption of milk products in the Arabian Gulf.

California Milk Processor boards Got Milk Campaign

On new up coming popular singer Himesh Reshammiya - June '06

On proposed implementation of quota reservation in institutes of higher education - June '06

Bollywood film Fanaa release help up in Gujarat due to agitation over star's comments on Narmada Dam Project - June '06

On the fracas between Bollywood item girl Rakhi Sawant and Punjabi pop singer Mika Singh on his birthday party - June '06

Buying Situations