2 Consumer Behavior

8/3/2019 2 Consumer Behavior

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Consumer BuyingConsumer Buying

BehaviorBehavior

Prof. Jayahree VisputeProf. Jayahree Vispute

05/05/12 1Prof Jayashree Vispute


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Learning ObjectivesLearning ObjectivesUnderstand the major factors

influencing consumer behavior

Know and recognize the types of

buying decision behaviorUnderstand the stages in the

buying decision process



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you are

what you buy

The field of Consumer Behavior:

studies how individuals, groups, and

organizations select, buy, use, anddispose of goods, services, ideas, or

experiences to satisfy their needs and

desires.05/05/12 3Prof Jayashree Vispute


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Why study consumerWhy study consumer

behavior?behavior?Consumer decisions are affected

by the behavior.

Foundation of Marketing

Management - Product policies,price policies, distributionpolicies, promotion policies

MARKETING STARTS WITH NEEDSOF THE CUSTOMER & ENDS WITHNEED SATISFACTION.



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What is a Market?What is a Market?

The set of actualand potentialbuyers of a

product.

These peopleshare a need orwant that can besatisfied throughexchange

relationships. 05/05/12 6Prof Jayashree Vispute


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Two Types of Markets:Two Types of Markets:

ConsumerBusiness



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Consumer MarketConsumer Market

Consists of all theindividuals and households

who buy or acquire goodsand services for personalconsumption.



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Factors InfluencingFactors Influencing

Consumer BehaviorConsumer BehaviorPersonalPsychological

SocialCultural



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Personal FactorsPersonal FactorsAgeLife-Cycle Stage



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Stages in Family Life-Stages in Family Life-

CycleCycleExample of life cycle stages:1. Single

2. Newly Married Couples

3. Solitary Survivor4. Solitary Survivor, Retired



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Personal FactorsPersonal Factors

AgeLife-Cycle Stage

OccupationEconomic CircumstancesLife Style



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Psychographic analysisPsychographic analysis

is . . .is . . .

. . . the

attempt tomeasure thelife-styles of

consumers.



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Lifestyle refers to the way peoplelive, how they spend their timeand money, what activities they

pursue, and what their attitudesand opinions are about the worldthey live in.



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Psychological FactorsPsychological Factors

Wants Based on a want or desire to

have something. Not anecessity.



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Psychological FactorsPsychological Factors

Motivation:

FreudId

Ego

Super Ego

Maslow

Hierarchy of Needs



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Freuds PsychoanalyticFreuds Psychoanalytic

TheoryTheoryPersonality resultsfrom the clash of 3forces - the id, the ego,

and the superego

The id representsphysiologicaldrives

The ego acts tocurb the appetitesof the id

The superego isthe conscience orvoice within



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Maslows Hierarchy ofMaslows Hierarchy of

NeedsNeeds

Different types of needsdrive behaviour to satisfythose needs in an order ofprecedence

Most basic needs

fulfilled firstPhysiological

Self-Actualization

Esteem

Social

Safety



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Psychological FactorsPsychological FactorsMotivationPerceptionPerception

The process by which an individual

selects, organizes, and interpretsinputs to create a meaningful pictureof the world.Selective Exposure

Selective DistortionSelective Retention



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Selective Exposure-selects inputsto be exposed to our awareness.(sharp price drop).

Selective Distortion Changing/twisting currentreceived comparative ads

Selective Retentionrememberinputs that support beliefs,forgets those that dont.

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Psychological FactorsPsychological FactorsMotivationPerception

LearningLearning Changes in an individuals behaviorarising form experience



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Learning

BeliefsBeliefs

Descriptive thoughts that a personholds about something



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Learning

Beliefs

AttitudesAttitudes

Enduring favorable or unfavorable cognitiveevaluations emotional feelings and actiontendencies

Individuals learns attitudes throughexperience and interaction with other people.Consumer attitudes toward a firm and itsproducts greatly influence the success or

failure of the firms marketing strategy.05/05/12 24Prof Jayashree Vispute


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Functional FactorsFunctional Factors

Needs Need over wants. Delivers to

a real need to havesomething.



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Social ClassSocial Class

Relatively homogenous, enduringdivisions in a society,

hierarchically ordered withmembers sharing similar values,

interests, and behaviors.



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Family Influence on BuyingFamily Influence on Buying

BehaviorBehavior

Husband-Dominant

Wife-DominantEqual



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Culture & SubculturesCulture & Subcultures

Cultures The accumulation of values, knowledge, beliefs,

customs, objects, and concepts that a societyuses to cope with its environment

Subcultures Groups of individuals who have similar value

and behavior patterns within the group butdiffer from those in other groups.



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Examples of Buying Motives:Examples of Buying Motives:

Psychological or Functional?Psychological or Functional?



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Psychological or Functional?Psychological or Functional?A senior wants to impress hisjunior at the Welcome party .

His primary motive is ?

Psychological



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Psychological or Functional?Psychological or Functional?A girl wants to remember her

grandmother on her birthday.

Her primary motive is?

Psychological



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Psychological or Functional?Psychological or Functional?A homemaker needs a new

washing machine and has hadgood experiences with Sears.

Her primary motive is ?

Functional



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Psychological or Functional?Psychological or Functional?A teacher wants to buy a

practical car to be used for familytransportation.

Her/His primary motive is ?

Functional



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Psychological or Functional?Psychological or Functional?An overweight 40 year old man

wants to loose weight so that hecan reduce his blood pressure.

His primary motive is?

Functional



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Psychological or Functional?Psychological or Functional?A homeowner needs to mow their

lawn.

Their primary motive is?

Functional


Consumer Buying BehaviorConsumer Buying Behavior


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CompetencyCompetencyFunctional Motive Psychological Motive

The price is 40 cents offthe regular price.

It never needs ironing.

Diamonds are forever.

Serving you since 1971.

Ninety-day warranty.


C B i B h iConsumer Buying Behavior


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CompetencyCompetencyFunctional Motive Psychological

MotiveRunning shoe with built-in arch.

Its all the ragecoloredaction wear and style.

Wheatiesthe breakfastof champions!

Steel-belted radial tireswarranted for 40,000

miles

A watcha gift she willtreasure always.



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Consumer Buying DecisionConsumer Buying Decision

ProcessProcess

Problem

Recognition

Information

Search

Evaluation of

Alternatives

PurchaseDecision

Post-PurchaseEvaluation



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Consumer Decision-Making ProcessConsumer Decision-Making Process

Problem

Recognition

InformationSearch

Evaluation

of

AlternativesPurchase

Decision

Postpurchase

Evaluation



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Consumer Decision-Making

Process

PostpurchaseBehavior

PostpurchaseBehavior

PurchasePurchase

Evaluationof Alternatives

Evaluationof Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social,Cultural, Social,Individual andIndividual andPsychologicalPsychological

FactorsFactorsaffectaffect

all stepsall steps

Cultural, Social,Cultural, Social,Individual andIndividual andPsychologicalPsychological

FactorsFactorsaffectaffect

all stepsall steps



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Types of Buying BehaviorTypes of Buying BehaviorLevel of involvement is an

individuals intensity of interest ina product and the importance heor she places on a product.Consumers go through aproblem-solving process. The 4types of Problem-Solving are:

Routine ResponseLimited DecisionExtension Decision

Impulse Buying05/05/12 42Prof Jayashree Vispute


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Routine ResponseRoutine Response

1.Routine Response buying thatrequires very little search and

decision effort; it is used forproducts that are low priced andbought frequently. Examples

include soft drinks, snack foods,milk, etc.



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Limited DecisionLimited Decision

Buyers use when they purchaseproducts occasionally or needinformation about unfamiliar

brands in a familiar productcategory; it requires a moderateamount of time for information

gathering and deliberation.Examples include Clothesknowproduct class but not the brand.



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Extensive DecisionExtensive Decision

Extensive Decision employedwhen unfamiliar, expensive, orinfrequently bought products

(such as homes, automobiles andfurniture) are purchased; buyersused many criteria to evaluate

brands and spend more timesearching for information anddeciding on the purchase.



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Impulse BuyingImpulse Buying

Impulse Buying unplannedbuying behavior involvingpowerful urge to buying

something immediately. A lot ofimpulse decisions are made atthe checkout area and can be on

items such as candy, sodas,batteries, film, etc.



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Types of consumer involvement

and decision making

Routine Limited Extensive

Involvement Short Low to moderate High

Time Low Short tomoderate

Long

Cost Short Low to moderate High

InformationSearch

Internal only Mostly internal Internal &external

Number ofalternatives

one few many



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Need Recognition

Preferred State

Marketing helps

consumers recognize

(or create) an imbalance

between present statusand preferred state

When a current product isnt

performing properly

When the consumer is runningout of an product

When another product seems

superior to the one currently used



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Information SearchInformation Search

Two ways of gathering information:

1. Internally

2. Externally

Types of info sources: Commercial

Public

Personal

Experiential



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The information search stage

An internal search involves thescanning of one's memory to recall previous

experiences or knowledge concerning

solutions to the problem-- often sufficient for

frequently purchased products.

An external search may be necessarywhen past experience or knowledge is

insufficient, the risk of making a wrong

purchase decision is high, and/or the cost of

gathering information is low.

Personal sources

(friends and family)

Public sources (rating

services like Consumer

Reports)

Marketer-dominated

sources (advertisingor sales people)

The evoked set: a group ofbrands from which the buyer can

choose05/05/12 50Prof Jayashree Vispute


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The Purchase DecisionThe Purchase Decision

Decision to purchase a particularproduct may be based on severalfactors:

Attitudes of OthersUnexpected Situational Factors

What other factors influence thePurchase Decision?



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Postpurchase Behavior

Can minimize through:Effective Communication

Follow-upGuaranteesWarranties

Underpromise &overdeliver

Cognitive DissonanceCognitive Dissonance

??Did I make a good decision?Did I make a good decision?Did I buy the right product?Did I buy the right product?

Did I get a good value?Did I get a good value?



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Sour Grapes

a story ofcognitive

dissonance

after being unable to reach the grapes the fox said, these

grapes are probably sour, and if I had them I would not eat

them.--Aesop



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Cognitive Dissonance

psychological discomfort caused by inconsistencies

among a persons beliefs, attitudes, and actions

varies in intensity based on importance of issue and

degree of inconsistency

induces a drive state to avoid or reduce dissonance

by changing beliefs, attitudes, or behaviors and

thereby restore consistency



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ConsumerConsumer

Buying BehaviorBuying Behavior

2 Consumer Behavior

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