What makes people consumers?

“There is only one boss – the customer. And he can fire

everyone from the Chairman down”
Sam Walton, Founder, WalMart Stores
marketer should find answer

What are the products they buy?

Why they buy them?
How they buy them?
When they buy them?
Where they buy them?
How often they buy them?

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

The central question for marketers is:

“How do consumers respond to various marketing
efforts the company might use?”

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 Target
Marketing
Black Box Audience
Stimuli
Response
Marketing and Buyer’s Black Box Buyer Responses
Other Stimuli

Marketing Factors influencing c.b Product Choice

Product Buyer Decision Process Brand Choice
Price
Place
Promotion
Other Purchase Timing
Economic Purchase Amount
Technological
Political
Cultural

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Cultural
Social
Personal
Psycho-
Culture Reference Age and logical
Culture groups life-cycle
Occupation
Motivation
Perception Buyer
Sub-
Sub- Family Economic
culture situation Learning
culture
Lifestyle Beliefs and
Roles Personality attitudes
Social
Social and and
class status self-concept
class

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 Purchase
Decision
Evaluation Postpurchase
of Alternatives Behavior
Information
Search
Need
Recognition
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Buying Process
Need Recognition
Realizes want or need
Information Search
Looks for information
Passively – heightened awareness
Actively – internet, in store, word-of-mouth,
experiential
Buying Process
Evaluate Alternatives
Now informed, considers different brands
Purchase
Intention – decides on brand
Choice – actual purchase of item
 Many factors can change the intention
Post purchase
Satisfied customer tells 3 -4 people
Dissatisfied tells at least 10
Buying Decisions
Habitual Buying
Low cost, little difference in brands
Salt, water, matchbox,comb
Variety Seeking
Low cost, high perceived difference
Cookies, candy, ice creams
Buying Decisions
Complex Buying
Product is expensive, risky, purchased infrequently,
great difference in brands
Computers, Cars
Dissonance Reducing
Expensive, infrequent, little difference between brands
Carpeting
New Product Adoption
Awareness – knows of product
Interest – seeks information
Evaluation – considers purchase
Trial – experiences on small scale
Adoption – accepts or rejects new product
Types of buyers
The well-informed shopper
Many modern shoppers will likely fall into this
category. Consumers these days do a ton of research
before making purchase decisions. They read product
descriptions, compare prices, and check reviews

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Showroomer
Showroomers are those who try on or check out
products in person, but decide to purchase them
online if they find a better price.

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The wanderer
These are shoppers who just wander into your store
without any real intention. They typically walk in
because something caught their eye or they’re simply
killing time.

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 customer on a mission
These are customers who already know what they want
and intend to just get in and out of your store. They
want to get their hands on their purchases ASAP so
they can leave and get back to doing other things.

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The confused or indecisive shopper
These are customers who aren’t sure if they want to
purchase or they’re unable to decide what exactly to
buy. Often, customers who are having trouble
deciding either don’t have enough information, or
have too much that they’re overwhelmed.

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The bargain-hunter
The main thing that the purchase decision of bargain
shoppers is pricing. They’re after the lowest price, and
they’re willing to shop around until they find it. Brand
loyalty doesn’t really come into play here.

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The chatty customer
These are customers who love to talk and tell stories,
and while you like their enthusiasm, they can
sometimes keep you from doing your job or taking
care of other shoppers.

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 regular customer
Regular customers are the best types of shoppers to
have in your store. They already love you (otherwise
they won’t be coming back) so you don’t have to go for
the hard sell.

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Adoption Curve
Adoption Curve
Innovators Late Majority
tries at great cost skeptics
Early Adopters Laggards
opinion leaders only adopt when it
Early Majority become a tradition
pick up on hot
trend
Consumer Behaviour Theories
ECONOMIC THEORIES-
Marginal Utility Theory
Income and savings Theory
PSYCHOLOGICAL THEORIES-
Stimulus Response Theory
Cognitive Theory
Gestalt and field theory
PSYCHO-ANALYTIC THEORY-Id,Ego,Super ego
Socio-Cultural Theories
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