Consumer Behaviour Process

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CONCUMER BUYING

BEHAVOOUR

IBSAR INSTITUTE OF MANAGEMENTSTUDIES, KARJAT


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CONSUMER MARKETy Consists of all the individuals and households

who buy or acquire goods and services for

personal consumption



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Consumer Buying Behaviory Consumer buying behaviorrefers to the buying

behavior of the individuals and households who buy

goods and services for personal consumption.y Consumer market refers to the combination of all

theses individuals and households.

y These diverse consumers make their choices among

various products based on several factors.

IBSAR INSTITUTE OF MANAGEMENT STUDIES, KARJAT


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Model of Consumer Behaviory How do consumers respond to various marketing

efforts that the company might use? The company

that understands how consumers will respond toproduct features, prices, advertising has a greatadvantage over its competitors.



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CON.y According to the model of buyer behavior,

marketing (4Ps) and other

(environmental - economic, technological, politicaland cultural) stimulus starts the response model. Allthese enter into the buyers head (black box) and thenturn into responses as product choice, brand choice,

dealer choice, purchase timing, and purchase amount.



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

characteristic - cultural, social, personal,psychological;

y (2) the buyers decision process.

y IN OTHERWORDS:-

y Personal

y

Psychologicaly Social

y Cultural

y Situational Influences



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Model of Buyer Behavior

Marketing &Other Stimuli Buyers Black Box Buyers Response

Product Economic Buyer

Price Technological characteristicPlace Political BuyingPromotion Cultural decision

process

Product choiceBrand choiceDealer choice

Purchase timingPurchase amount



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The Buyer Decision Processy ProblemRecognition /Need Recognition

y Information Search

y Evaluation Search

y Purchase Decision

y Post Purchase Decision



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Need Recognitiony The buying process starts when the buyer recognizes

that he has a problem or need.

yThe need can be felt because of internal stimuli(hunger, thirst...) or external stimuli (the buyer mayfeel hungry when he passes by a bakery, the buyer mayneed to have a vacation when he watches a commercial

about Caribbeans on TV).y At this stage, the marketer must identify the factors

that most trigger interest in the product and developmarketing programs that involve these factors.



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y 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 byadvertisement to complete human health needs.

3.Need for love & companionship:-Internet ,social clubs,Dating clubs ,hotels

4.Need for pleasureIBSAR INSTITUTE OF MANAGEMENTSTUDIES, KARJAT


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con5.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 usethis set then u would be the leader.Thus Needs

Need over wants. Delivers to a real need to have something.



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Information SearchyWhen 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.y The consumer can obtain information from several

sources;

y personal sources: family, friends, neighbors,

acquaintances (more important for the consumer toevaluate)



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Con.y commercial sources: advertising, salespeople, dealers,

packaging, displays (more important for the consumerto get information)

y public sources: mass media, consumer ratingorganizations

y experiential sources: handling, examining, using theproduct

y Here, the marketer is responsible to identify theconsumers sources of information and theirimportance, then design its marketing efforts in the

way that would increase the awareness and knowledge

of the potential consumers.IBSAR INSTITUTE OF MANAGEMENTSTUDIES, KARJAT


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Evaluation of Alternativesy After gathering information, the consumer evaluates

each alternative and makes a brand choice.

yConsumers pay attention to certain issues whenevaluating the alternatives;

y product attributes: consumers see products as a bundleof product attributes (e.g. quality, size, price...)

Consumers pay the most attention on the attributesthat satisfies their need the most.



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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.

y Here, the marketer should study the buyers tounderstand how they evaluate each alternative - e.g.

which attribute receives the highest attention.



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Purchase Decisiony The consumer ranks all the brands and intends to

purchase one. However, sometimes the consumer

does not buy the one he intended. Two factors cancome between the purchase intention and decision;

y attitudes of others; e.g. family may claim that thealternative is better.

y unexpected situational factors; unexpected events maychange the purchase intention e.g. the consumer mayloose his job so that he have to purchase a cheaperbrand, a friend my report his dissatisfaction about theproduct, a competitor may drop its prices...



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Postpurchase Behaviory After purchasing the product, the consumer will be

satisfied or dissatisfied and will engage in

postpurchase behavior of interest.

yWhether the buyer is satisfied or dissatisfied isdetermined by the relationship between the

consumers expectations and the productsperformance.



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The Buyer Decision Process for

New Productsy 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 tobecome a regular user).

y Consumers go through six stages in the process ofadopting a new product;

y

awareness:the consumer becomes aware of the newproduct but does not have information.



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cony interest: the consumer seeks information about the new

product.

y

evaluation:

the consumer considers whether trying thenew product is a good idea.

y trial: the consumer tries the new product to understandits value.

y adoption: the consumer decides to make regular use ofthe new product.

y Conformation : the consumer make conformationabout the new product.



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Individual Differences in

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

slow start, an increasing number of people adopt the newproduct. The number of adopters reaches a peak and thendrops off as very little adopters remain.

y There are five adopter categorization on the basis of time ofadoption of innovations;

y Innovators: are the first 2.5 percent of the buyers, they

are adventurous, take risk, relatively younger, bettereducated, have higher income, are more receptive to



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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.

y Early adopters: are the next 13.5 percent, are opinionleaders in their communities and adopt new ideasearly but carefully.

y Early majority: are rarely leaders but adopt new ideasbefore the average person.

y Late majority: adopt an innovation only after amajority of people have tried it.

y Laggards: are suspicious of changes and adopt theinnovation only when it has become tradition.



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n uence o ro uc

Characteristics on Rate of

Adoptiony The characteristics of the new product affect its rate of adoption.Some products catch on almost overnight e.g. Frisbees; but sometake a long time to be accepted e.g. personal computers. Five

characteristics are important in influencing an innovations rateof adoption;

y relative advantage: the degree to which the innovation isseen as superior relative to existing products.



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y compatibility: the degree to which theinnovation fits the values and lifestyles of

potential consumers.

y complexity: the degree to which theinnovation is difficult to understand or use.

y

divisibility: the degree to which theinnovation may be tried on a limited basis.(price may influence the divisibility)

y communicability: the degree to which the

results of using the innovation can beobserved or described.



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Examples of Buying Motives:

Psychological or Functional?yA senior wants to impress his date at the

prom .

His primary motive is ?

PsychologicalPsychological



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Psychological or Functional?y A girl wants to remember her grandmother on

her birthday.

Her primary motive is?




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Psychological or Functionaly A homemaker needs a new washing machine

and has had good experiences with Sears.

Her primary motive is ?

Functional



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Psychological or Functional?y A teacher wants to buy a practical car to be

used for family transportation.

Her/His primary motive is ?

Functional



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Psychological or Functional?yA career woman always buys Liz

Claiborne clothes.

Her primary motive is?




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Psychological or Functional?yAn overweight 40 year old man wants to

loose weight so that he can reduce his

blood pressure.His primary motive is?

Functional



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Psychological or Functional?yA homeowner needs to mow their lawn.

Their primary motive is?

Functional



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Thank You !!


Consumer Behaviour Process

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