Buyer behaviour & steps

Marketing Management

Unit II: BUYER BEHAVIOUR

I MBA A & B RR MM 2011 Batch1

The most important thing is to forecast where customers are moving, and to be in front of them.


Introduction and DEFINITION The aim of marketing is to meet and satisfy target

customer’s needs and wants Consumer Behaviour studies how individuals, groups, and

organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires whirlpool – anthropologist- he went to people’s home observed

how they used their appliances and talked with all household members found out kids and men were using in women working families

Kodak – Advanta- high- tech which began to loose its appeal and simplicity began to edge out


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 How do consumers respond to various

marketing efforts the company might use?” marketing efforts the company might use?”

Consumer Buying Behavior


Some consumer behavior roles The initiator who determines that some need or

want is not being met and authorizes a purchase to rectify the situation- initiator

A person who by some intentional or unintentional word or action influences the purchase decision, purchase or use of the product or service- influencer

The individual who actually makes the purchase transactions- buyer

The person who is directly involved in the consumption or use of the product- User


Model of Buying BehaviorModel of Buying Behavior

Buyer’s decisions

Product choiceBrand choiceDealer choicePurchase timingPurchase amount

Buyer’s decisionprocess

Problem recognitionInformation searchEvaluationDecisionPostpurchase behavior

Buyer’scharacteristics

CulturalSocialPersonalPsychological

Otherstimuli

EconomicTechnologicalPolitical

Marketingstimuli

ProductPricePlacePromotion


The major factors influencing buying behaviour Cultural factors

Culture Subculture Social class

Social factors Reference groups Family Social roles and statuses

Personal factors Age and stages in life cycle Occupation and economic circumstances Life style Personality Self- concept

Psychological factors Motivation Perception Learning Beliefs and attitudes


Factors Influencing Consumer Behavior

Social

Referencegroups

Family

Rolesand

status

PersonalAge andlife-cycle

OccupationEconomicsituationLifestyle

Personalityand

self-concept

Psycho-logical

MotivationPerceptionLearning

Beliefs andattitudes

Buyer

Culture

Sub-culture

Socialclass

Culture

Sub-culture

Socialclass

Cultural


Culture

Cultural FactorsCultural Factors

Subculture

Social Class

BuyerBuyer


Culture

The fundamental determinant of a person’s wants and behaviors

acquired through socializationprocesses with family

and other key institutions.


Factors Affecting Consumer Behavior: Culture

Subculture• Group of people with

shared value systems based on common life experiences.

• African American Consumers

• Asian American Consumers

• Mature Consumers

Culture is the Most Basic Cause of a Person's Wants and Behavior.

I MBA A & B RR MM 2011 Batch 11

Social Class

3 classes Low class- consumers usually buy on impulse and do not

even care to read ad’s much Middle class- purchase carefully, read and compare Upper class US classes

Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers


Factors Affecting Consumer Behavior: Social Factors Reference groups- all the groups that have a direct or

indirect influence on the person’s attitude or behavior Groups have direct influence on a person are called

membership groupsPrimary groups- family, friends, neighbors and co-

worker (fairly continuously and informally )Secondary groups- religious, professional and

trade union groups ( more formal and less continuous interaction)

Reference groupsAspirational groups- are those the person hopes

to joinDissociate groups- are those whose values or

behaviour an individual rejectsOpinion leader- is a person in informal product

related communications who offers advice or information on a specific brand or product


Factors Affecting Consumer Behavior: Social Factors Family

Family of orientation- parents and siblings Family of procreation- one’s spouse and children

Roles and statuses Role consists of activities that a person is

expected to perform each role consists of a status ex: judge and sales person Marketers are aware of the status symbol

potential of products and brands


Personal InfluencesPersonal Influences

Age and Life Cycle Stage

Age and Life Cycle Stage OccupationOccupation Personality &

Self-ConceptPersonality & Self-Concept

Economic Situation

Economic Situation

ActivitiesActivities InterestsInterests

Lifestyle IdentificationLifestyle Identification

OpinionsOpinions

Factors Affecting Consumer Behavior: Personal


Factors Affecting Consumer Behavior: Psychological

PsychologicalFactors

AffectingBuyers Choices

Motivation

Perception

Learning

Beliefs andAttitudes


Psychological - Motive


A motive is a need that has a sufficient level of intensity. Creating a tension state that drives the person to act.

Satisfying the need reduces the felt tension.

Psychological - Perception

The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.


Psychological - Learning


Changes in an individual’s behavior arising from experience.

Psychological - Attitude


An attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.

Maslow’s Hierarchyof Needs

Psychological needs(food, water, shelter)Psychological needs(food, water, shelter)1

Safety needs(security, protection)

Safety needs(security, protection)

2

Social needs(sense of belonging, love)

Social needs(sense of belonging, love)3

Esteem needs(self-esteem, recognition)

Esteem needs(self-esteem, recognition)

4

Self-actualization

(self-developmentand realization)

Self-actualization

(self-developmentand realization)

5


Consumer Buying Decision Process

Understand

Buying roles Buying behavior Buying decision

process

Initiator Influencer Decider Buyer User



Understand


process

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior



Understand


process

Problem recognition Information search Evaluation of

alternatives Purchase decision Post purchase

behavior


Four Types of Buying Behavior

ComplexBuying

Behavior

Dissonance-Reducing Buying

Behavior

Variety-SeekingBehavior

HabitualBuying

Behavior

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

HighInvolvement

LowInvolvement


Buyer Decision Process

Post PurchaseBehavior

Purchase

Decision

Information

SearchProblem/

Need Recognitio

n

Evaluationof

Alternatives


Buyer Decision Process Problem Recognition

Triggered by internal or external stimuli Information Search

Heightened attention- more receptive Active information search

Sources- personal sources commercial sources public sources- mass media, consumer rating org. Experiential sources- handling, examining, using the product

Evaluation of Alternatives Satisfy their need Certain benefits Bundle of attributes (hotels- location, cleanliness, atmosphere,

price)


Buyer Decision Process ( cond…) Purchase decision

Attitudes of others Unanticipated situational factors

Post Purchase Behaviour Post purchase satisfaction Post purchase actions Post purchase use and Disposal


TotalSet

Decision Making Sets

Aware-nessSet

Consid-eration

Set ChoiceSet Decision


Decision Making Sets


Steps Between Evaluation of Alternatives and a Purchase Decision

EvaluationEvaluationofof

alternativesalternatives

Purchasedecision

Unanticipatedsituational

factors

Attitudeof others

Purchaseintention


How Customers Use orDispose of Products

Product

Get rid of ittemporarily

Get rid of itpermanently

Keep it

Loan it

Rent it

Store it

Convertto new

purpose

Use fororiginalpurpose

Give itaway

Trade it

Sell it

Throw itaway

Direct toconsumer

Tointermediary

Throughmiddleman

To beused

To be(re)sold


Buyer behaviour & steps

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