Unit VI

Consumer Markets and

Consumer Buyer
Behaviour

Dr. Ashutosh Kumar 5-1

 Model of Buyer Behaviour
Marketing and
other stimuli
Product Economic
Price Technological
Place Political Buyer’s responses
Promotion Cultural

Product choice
Brand choice
Buyer’s black box Dealer choice
Purchase timing
Buyer Buyer Purchase amount
characteristics decision
process
Dr. Ashutosh Kumar, Asst. Prof. 5-2
APIM
Consumer Behaviour Influences

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

Dr. Ashutosh Kumar, Asst. Prof. 5-3

APIM
 Culture

The fundamental determinant of

a person’s wants and behaviors
acquired through socialization
processes with family
and other key institutions

Dr. Ashutosh Kumar, Asst. Prof. 5-4

APIM
 Consumer Behaviour Influences:
Cultural Factors
• Culture
– Set of basic values,
perceptions, wants, and
behaviours
– learned by a member of
society
– from family and other
important institutions

Dr. Ashutosh Kumar, Asst. Prof. 5-5

APIM
 Subcultures

Nationalities
Nationalities

Religions
Religions

Racial
Racial groups
groups

Geographic
Geographic regions
regions

Special
Special interests
interests
Dr. Ashutosh Kumar, Asst. Prof. 5-6
APIM
 Fast Facts About American Culture

• The average American:

– chews 300 sticks of gum a year
– goes to the movies 9 times a year
– takes 4 trips per year
– attends a sporting event 7 times each year

Dr. Ashutosh Kumar, Asst. Prof. 5-7

APIM
Consumer Behaviour Influences:
Social Class
• Relatively permanent
• Ordered divisions in a society
• Whose members share similar:
– Values
– Interests
– Behaviours
• NOTE: it is NOT based strictly on
income!
Dr. Ashutosh Kumar, Asst. Prof. 5-8
APIM
 Characteristics of Social Classes

• Within a class, people tend to behave alike

• Social class conveys perceptions of inferior
or superior position
• Class may be indicated by a cluster of
variables (occupation, income, wealth)
• Class designation is mobile over time

Dr. Ashutosh Kumar, Asst. Prof. 5-9

APIM
Consumer Behaviour Influences:
Social Factors
• Groups
– Membership - primary and secondary
– Reference and aspirational
– Opinion leaders
• Family
– Most important consumer influence
– changing family roles and evolving lifestyles
– children may influence strongly
Dr. Ashutosh Kumar, Asst. Prof. 5-10
APIM
Consumer Behaviour Influences:
Social Factors
• Roles
– Activities people expected
to perform by others
• Status
– Each role carries a status
reflecting the general
esteem society gives it

Dr. Ashutosh Kumar, Asst. Prof. 5-11

APIM
 Question for Discussion…

• Is increasing Divorce rate and Extra-Marital

affairs in India is a result of Cultural Shock..
Or a shift in Indian Value System???

Dr. Ashutosh Kumar, Asst. Prof. 5-12

APIM
Consumer Behaviour Influences:
Personal Factors
• Age
• Life-cycle stage
• Occupation
• Economic situation
• Lifestyle
• Personality
• Self-concept

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APIM
 Behavior changes
according to life
cycle stage

Dr. Ashutosh Kumar, Asst. Prof. 5-14

APIM
Consumer Behaviour Influences:
Personal Factors
• Occupation
– May determine goods or services purchased
– Identify occupations with product need

• Economic situation
– Affects product choice
– Indicator for income sensitive products

Dr. Ashutosh Kumar, Asst. Prof. 5-15

APIM
Consumer Behaviour Influences:
Personal Factors
• Lifestyle
– A person’s pattern of living as expressed by
psychographics
• Measuring AIO dimensions
– Activities
– Interests
– Opinions
– Profiles a person’s whole pattern of acting and
interacting with the world

Dr. Ashutosh Kumar, Asst. Prof. 5-16

APIM
Consumer Behaviour Influences:
Personal Factors
• Personality
– Unique psychological characteristics
leading to relatively consistent and
lasting responses to one’s own
environment
– Traits
– Product and brand choices
• Self-concept
– Self-image
– Possessions reflect identity
Dr. Ashutosh Kumar, Asst. Prof. 5-17
APIM
Consumer Behaviour Influences:
Psychological Factors
• Motivation
• Perception
• Learning
• Beliefs
• Attitudes

Dr. Ashutosh Kumar, Asst. Prof. 5-18

APIM
Maslow’s Hierarchy of Needs

Dr. Ashutosh Kumar, Asst. Prof. 5-19

APIM
Dr. Ashutosh Kumar, Asst. Prof. 5-20
APIM
Consumer Behaviour Influences:
Psychological Factors
• Perception
– Process by which people:
• Select, organize and interpret information
• To form a meaningful picture of the world
– Selective attention
– Selective distortion
– Selective retention

Dr. Ashutosh Kumar, Asst. Prof. 5-21

APIM
Consumer Behaviour Influences:
Psychological Factors
• Learning
– Changes in individual behaviour
– Arising from experience
– Most human behaviour is learned
• Drives
• Cues
• Responses
• Reinforcement

Dr. Ashutosh Kumar, Asst. Prof. 5-22

APIM
Consumer Behaviour Influences:
Psychological Factors
• Beliefs
– A descriptive thought that a person holds about
something
• Attitudes
– A person’s consistently favourable or
unfavourable evaluations, feelings, and
tendencies toward an object or idea

Dr. Ashutosh Kumar, Asst. Prof. 5-23

APIM
Consumer Buying Roles and Process

Dr. Ashutosh Kumar, Asst. Prof. 6-24

5-24
APIM
 Consumer Buying Roles
• Initiator
• Influencer
• Decider
• Buyer
• User

Dr. Ashutosh Kumar, Asst. Prof. 6-25

5-25
APIM
The Buyer Decision Process
Postpurchase
Postpurchase
behaviour
behaviour
Purchase
Purchase
decision
decision
Evaluation
Evaluationof of
alternatives
alternatives
Information
search
Need
recognition
Dr. Ashutosh Kumar, Asst. Prof. 6-26
5-26
APIM
 Need Recognition/Problem Identification

• Buying process starts with buyer recognizing

need/problem
• Need/Problem = Difference between his/her actual
state and desired state.
• May be triggered by:-
– External stimuli: looking at items in shop, neighbour’s
purchase
– Internal stimuli: hunger, thirst etc.
• Marketer needs to identify circumstances that trigger
a particular need or most frequent stimuli that spark
an interest in product category

Dr. Ashutosh Kumar, Asst. Prof. 5-27

APIM
 Information Search

• An aroused consumer may go for information search

• Information services could be:-
– Personal : Family/Friends/Neighbours

– Commercial : Advertisements/Sales staff/Dealers/Packaging/

Displays

– Public : Mass media, consumer-rating organisations

– Experiential: Handling/Examining/Using product

Dr. Ashutosh Kumar, Asst. Prof. 5-28

APIM
 Evaluation of Alternatives

• Based on consumers information search, consumers

learn about competing brands and their features

– Total Set : all brands available to consumer

– Awareness Set : brands consumes know about

– Consideration Set: some brands will meet initial buying criteria

– Choice Set :few brands remain strong contender. The

consumer makes a final choice from this set

Dr. Ashutosh Kumar, Asst. Prof. 5-29

APIM
 Evaluation of Alternatives

TOTAL SET AWARENESS CONSIDERAT CHOICE SET DECISION

SET ION SET
Hero Honda CD-Dawn
Bajaj auto
Hero Honda Hero Honda
Boxer
?
Bajaj auto Bajaj
TVS Star City
TVS TVS
Yamaha
Yamaha
Kinetic
Enfield
LML
Enfield

Dr. Ashutosh Kumar, Asst. Prof. 5-30

APIM
Purchase Decision
•In the evaluation stage, the consumer forms preferences
among the brands in the choice set.
•Consumer may also form a purchase intention to buy the
most preferred brand.
•In executing a purchase intention, the consumer may make
up to 5-sub-decisions:-
•Brand (brand-A)
•Dealers (dealer 2)
•Quantity (one bike)
•Timing (weekend)
•Payment method (credit card)
Dr. Ashutosh Kumar, Asst. Prof. 5-31
APIM
Cont…
•However two factors can intervene between the purchase
intention and the purchase decision fig:

Attitude of
others

Evaluation of Purchase Purchase

Alternative Intention Decision

Unanticipated
situational
factors
Dr. Ashutosh Kumar, Asst. Prof. 5-32
APIM
Post Purchase Decision
In case of a multiplex theatre a consumer is expected to
examine the experience on account of sound effect, air
conditioning efficiency, seating arrangement, other
consumer behaviour, etc.
(a)Post purchase satisfaction:-
if the product falls short of the buyer’s expectation, the
buyer will be disappointed and dissatisfied. If it meets
expectations, the buyer is satisfied. If it exceeds
expectations, the buyer will be delighted.
(b) Post purchase actions:-
if consumer is satisfied, S/he will exhibit a higher probability
of purchasing the product again. A satisfied buyer may tell
three people about a good product experience. But a
Dr. Ashutosh Kumar, Asst. Prof. 5-33
dissatisfied customer may tell APIM 11 people.
Discussions

Dr. Ashutosh Kumar, Asst. Prof. 5-34

APIM