Customer Market and Buying Behaviour

7/28/2019 Customer Market and Buying Behaviour

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All individuals and households whobuy products for personal consumptioncombine to make up the consumermarket.


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Consumer Buying Behavior- The concept

It refers to the mental and emotional processesand the physical activities of people who purchaseand use goods and services to satisfy particularneeds and wants. - BEARDEN

The behavior that consumers display in searchingfor, purchasing, using, evaluating and disposing ofproducts and services that they expect will satisfytheir needs.

- LEON G SCHIFFMAN


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To understand the seen and more importantlyunseen elements of the consumers BLACK BOX

To understand the HIDDEN MOTIVES that may

become the needs of consumers later. To get a deep INSIGHT into the consumers

psychology


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To get an idea of the PURCHASE DECISIONHABITSof consumers. i.e. trying to understand:

>What do they buy?

>Why do they buy?>When do they buy?

>How much do they buy?

>From where do they buy?

>Frequency of purchase?>how much do they spend?


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To understand the direct (stated) and implied

(unstated) needs of the customers.

Once the customers psychology is understood,their needs & wants can be fulfilled moreeffectively and efficiently.

Understanding the cons. Behavior will help theseller/marketer in framing more EFFECTIVEMKTG STRATEGIES- 4Ps to achieve higher levels

of CUSTOMER SATISFACTION.


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The conceptBuying motives are defined as all the impulses, desires andconsiderations which persuade or motivate a buyer topurchase a specific product.

The study of buying motives helps marketers toreach the consumers effectively and develop

marketing strategies.


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Stimulus Response Model

Marketing & other stimuli enter the buyers blackbox and produce certain choice/ purchase responses.

Marketers must figure out what is inside of the buyersblack box and how stimuli are changed to responses.


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Marketing & Other Stimuli

Marketing Other

Product EconomicPrice Technological

Place Political

Promotion Cultural

Buyers Black Box

Buyer Characteristics

Buyer Decision Process

Buyer Responses

Product Choice

Brand Choice

Dealer Choice

Purchase Timing

Purchase Amount

The consumers black box has two parts -

1. The buyers characteristics influence how he perceives and reacts to the

stimuli

2. The buyers decision process itself affects the buyers behavior.


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Different factors affect customers in different ways and at different times.


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NeedRecognition

InformationSearch

Evaluationof

Alternatives

PurchaseDecision

PostPurchaseBehavior

Can be

triggeredby internal

stimuli or

external

stimuli that

rises high

enough to

become a

drive

Amount of

search

depends

upon many

factors.

Sources of

informationmay be

personal,

commercial,

public,

experiential

Depends

onconsumer

and

buying

situation.

At theend of

this stage

purchase

intentions

are

formed.

2 factors

intercedebetween

purchase

intention

and actual

decision.

Attitude of

others.

Unexpected

situational

factors.

Satisfaction

isimportant.

Cognitive

dissonance

is common.


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Occurs when the buyer recognizes aproblem or need triggered by:

Internal stimuli

External stimuli


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Personal sourcesfamily and friends

Commercial sourcesadvertising, Internet

Public sourcesmass media, consumerorganizations

Experiential sourceshandling, examining, usingthe product


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How the consumer processes information to arrive atbrand choices


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The act by the consumer to buy the most preferredbrand

The purchase decision can be affected by: Attitudes of others

Unexpected situational factors


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The satisfaction or dissatisfaction that theconsumer feels about the purchase

Relationship between: Consumers expectations Products perceived performance

The larger the gap between expectation andperformance, the greater the consumersdissatisfaction

Cognitive dissonance is the discomfort causedby a post-purchase conflict


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Customer satisfaction is a key to building profitablerelationships with consumersto keeping andgrowing consumers and reaping their customerlifetime value


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Adoption process is the mental process an individualgoes through from first learning about an innovationto final regular use.

Stages in the process include:

Awareness Interest Evaluation Trial Adoption

Customer Market and Buying Behaviour

Documents

Transcript of Customer Market and Buying Behaviour