CONCUMER BUYING BEHAVOOUR

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

CONSUMER MARKET
Consists of all the individuals and households

who buy or acquire goods and services for personal consumption

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Consumer Buying Behavior

Consumer buying behavior refers to the buying

behavior of the individuals and households who buy goods and services for personal consumption. Consumer market refers to the combination of all theses individuals and households. These diverse consumers make their choices among various products based on several factors.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Learning Objectives
Understand the major factors influencing consumer

behavior Know and recognize the types of buying decision behavior Understand the stages in the buying decision process

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Model of Consumer Behavior

How do consumers respond to various marketing

efforts that the company might use? The company that understands how consumers will respond to product features, prices, advertising has a great advantage over its competitors.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

CON.
According to the model of buyer behavior,

marketing (4Ps) and other (environmental - economic, technological, political and cultural) stimulus starts the response model. All these enter into the buyers head (black box) and then turn into responses as product choice, brand choice, dealer choice, purchase timing, and purchase amount.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

CON.
The buyer behavior is affected by; (1) the buyers

characteristic - cultural, social, personal, psychological; (2) the buyers decision process. IN OTHER WORDS:Personal Psychological Social Cultural Situational Influences
IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Model of Buyer Behavior

Marketing & Other Stimuli Product Price Place Promotion Economic Technological Political Cultural Buyers Black Box Buyer characteristic Buyers Response Buying decision process Product choice Brand choice Dealer choice Purchase timing Purchase amount

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

The Buyer Decision Process

Problem Recognition /Need Recognition
Information Search Evaluation Search Purchase Decision Post Purchase Decision
IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Need Recognition
The buying process starts when the buyer recognizes

that he has a problem or need. The need can be felt because of internal stimuli (hunger, thirst...) or external stimuli (the buyer may feel hungry when he passes by a bakery, the buyer may need to have a vacation when he watches a commercial about Caribbeans on TV). At this stage, the marketer must identify the factors that most trigger interest in the product and develop marketing programs that involve these factors.
IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

 Types of Needs:-

1.Psychological Need:-Fundamental Need of consumers. Impossilble to live without these needs. 2.Safety & Healthy Needs :-it means need for safety. It motivates the purchase of seat belts, helmets, alarms ,other security services. Health Needs: -Pharma company do this works by advertisement to complete human health needs. 3.Need for love & companionship:-Internet ,social clubs, Dating clubs ,hotels IBSAR INSTITUTE 4.Need for pleasure KARJAT OF MANAGEMENT STUDIES,

con
5.Social Needs :- BPL /Nokia/Samsung Mobile advertise that it will help to touch with ur family across the country 6.Need to Process :-Omega watches advertise that if u use this set then u would be the leader.
Thus Needs Need over wants. Delivers to a real need to have something.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Information Search
When the consumer feels his need, he satisfies his

need with a product near at hand. But, if there is not such a product, he starts to search for information. The consumer can obtain information from several sources;
personal sources: family, friends, neighbors,

acquaintances (more important for the consumer to evaluate)

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Con.
commercial sources: advertising, salespeople, dealers,

packaging, displays (more important for the consumer to get information) public sources: mass media, consumer rating organizations experiential sources: handling, examining, using the product

Here, the marketer is responsible to identify the

consumers sources of information and their importance, then design its marketing efforts in the way that would increase the awareness and knowledge IBSAR INSTITUTE OF MANAGEMENT of the potential consumers. STUDIES, KARJAT

Evaluation of Alternatives
After gathering information, the consumer evaluates

each alternative and makes a brand choice. Consumers pay attention to certain issues when evaluating the alternatives;
product attributes: consumers see products as a bundle

of product attributes (e.g. quality, size, price...) Consumers pay the most attention on the attributes that satisfies their need the most.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Con.
degrees of importance: consumers give different degrees

of importance to different attributes according to their needs and wants. brand beliefs: consumers develop a set of brand beliefs about where each brand stands on each attribute. The set of beliefs that are held about a particular brand is known as the brand image. total product satisfaction: consumers combine the attributes that give them the highest perceived satisfaction and create their ideal product. evaluation procedure: consumers approach different IBSAR INSTITUTE OF MANAGEMENT brands through some type of
STUDIES, KARJAT

Con.
evaluation procedure which depends on the individual and specific buying situation. In some cases, consumers use logical thinking, and at other times, emotional. Sometimes, they may decide on their own, or ask their friends, or salespeople for advice.

Here, the marketer should study the buyers to

understand how they evaluate each alternative - e.g. which attribute receives the highest attention.

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Purchase Decision
The consumer ranks all the brands and intends to

purchase one. However, sometimes the consumer does not buy the one he intended. Two factors can come between the purchase intention and decision;
attitudes of others; e.g. family may claim that the

alternative is better. unexpected situational factors; unexpected events may change the purchase intention e.g. the consumer may loose his job so that he have to purchase a cheaper brand, a friend my report his dissatisfaction about the product, a competitor may drop its prices...
IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Postpurchase Behavior
After purchasing the product, the consumer will be

satisfied or dissatisfied and will engage in postpurchase behavior of interest.

Whether the buyer is satisfied or dissatisfied is

determined by the relationship between the consumers expectations and the products performance.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Con.
The marketers job does not end when the product is

bought. The marketer must do research in order to understand whether the consumer is satisfied about the product or not. Responding to consumer complaints help to reduce the number of dissatisfied consumers. E.g. Toyota contacts the new car owners and congratulates them. In addition, places advertising with the favorable words of the new car owners. I love what you do for me Toyota

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The Buyer Decision Process for New Products

The adoption process is the mental process that an

individual passes through from first learning about a new product to final adoption (making the decision to become a regular user). Consumers go through six stages in the process of adopting a new product;
awareness: the consumer becomes aware of the new

product but does not have information.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

con
interest: the consumer seeks information about the new

product. evaluation: the consumer considers whether trying the new product is a good idea. trial: the consumer tries the new product to understand its value. adoption: the consumer decides to make regular use of the new product. Conformation : the consumer make conformation about the new product.
IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Individual Differences in Innovativeness

People differ in their readiness to try new products. After a

slow start, an increasing number of people adopt the new product. The number of adopters reaches a peak and then drops off as very little adopters remain. There are five adopter categorization on the basis of time of adoption of innovations; Innovators: are the first 2.5 percent of the buyers, they are adventurous, take risk, relatively younger, better educated, have higher income, are more receptive to

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

unfamiliar things, rely more on their own values and judgement, are less brand loyal and more likely to tae advantage of special promotions e.g. discounts. Early adopters: are the next 13.5 percent, are opinion leaders in their communities and adopt new ideas early but carefully. Early majority: are rarely leaders but adopt new ideas before the average person. Late majority: adopt an innovation only after a majority of people have tried it. Laggards: are suspicious of changes and adopt the innovation only when it has become tradition.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Influence of Product Characteristics on Rate of Adoption

The characteristics of the new product affect its rate of adoption.

Some products catch on almost overnight e.g. Frisbees; but some take a long time to be accepted e.g. personal computers. Five characteristics are important in influencing an innovations rate of adoption;
relative advantage: the degree to which the innovation is

seen as superior relative to existing products.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

 compatibility: the degree to which the

innovation fits the values and lifestyles of potential consumers. complexity: the degree to which the innovation is difficult to understand or use. divisibility: the degree to which the innovation may be tried on a limited basis. (price may influence the divisibility) communicability: the degree to which the results of using the innovation can be observed or described.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Examples of Buying Motives: Psychological or Functional?

A senior wants to impress his date at the prom .

His primary motive is ?

Psychological
IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Examples of Buying Motives: Psychological or Functional?

A girl wants to remember her grandmother on her birthday.

Her primary motive is?

Psychological
IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Examples of Buying Motives: Psychological or Functional

A homemaker needs a new washing machine and has had good experiences with Sears.

Her primary motive is ?

Functional

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Examples of Buying Motives: Psychological or Functional?

A teacher wants to buy a practical car to be used for family transportation.

Her/His primary motive is ?

Functional

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Examples of Buying Motives: Psychological or Functional?

A career woman always buys Liz

Claiborne clothes. Her primary motive is?

Psychological
IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Examples of Buying Motives: Psychological or Functional?

An overweight 40 year old man wants to

loose weight so that he can reduce his blood pressure. His primary motive is?

Functional
IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Examples of Buying Motives: Psychological or Functional?

A homeowner needs to mow their lawn.

Their primary motive is?

Functional
IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT

Thank You !!

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT