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?

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?

Simplified Model
Marketing Stimuli Target Audience Response

Black Box

Model of Buyer Behavior

Marketing and Other Stimuli
Marketing
Product Price Place Promotion

Buyers Black Box

Factors influencing c.b Buyer Decision Process

Buyer Responses
Product Choice Brand Choice

Other

Economic Technological Political Cultural

Purchase Timing Purchase Amount

Factors Influencing Consumer Behavior

Cultural Social
Culture Subculture Social class Reference groups Family

Personal
Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept

Psychological
Motivation Perception Learning Beliefs and attitudes

Buyer

Roles and status

Buyer Decision Process

Purchase Decision Evaluation of Alternatives Information Search Need Recognition
8

Postpurchase Behavior

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
Complex Buying Product is expensive, risky, purchased infrequently, great difference in brands Computers, Cars Dissonance Reducing Expensive, infrequent, little difference between brands Carpeting

Buying Decisions
Habitual Buying Low cost, little difference in brands Salt, butter, toothpaste Variety Seeking Low cost, high perceived difference Cookies, candy, cereal

New Product Adoption

Awareness knows of product
Interest seeks information Evaluation considers purchase Trial experiences on small scale Adoption accepts or rejects new product

Adoption Curve

Adoption Curve
Innovators
tries at great cost

Late Majority
skeptics

Early Adopters
opinion leaders

Laggards
only adopt when it

Early Majority
pick up on hot

become a tradition

trend