MM_ Buyer’s Behaviour
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Transcript of MM_ Buyer’s Behaviour
Buyer’s BehaviorDefinition
“All psychological, social, and physical behavior of the potential customers as
they become aware of evaluate, purchase, consume and tell others about products
and services”
“It is the study of processes involved when individuals or groups select,purchase,use
or dispose of products,services,ideas, concepts or experiences to satisfy
consumer needs and desires”
Why customer buy the product
45%
46%
48%
53%
55%
0 10 20 30 40 50 60
fillers,newspapeers coupons
free sample in the mail
store display
TV commercial
recommendation of family orfriend
3-D Bar 1
The Concept………..• Study of consumer behavior assumes that
consumers are the actors in the market place.• Consumer play different buying roles in the market:• Initiator• Influencer• Gatekeeper ( Parents)• Decider• Buyer• User• Preparer• Maintainer• Disposer
Factors influencing buyer’s behavior
• Cultural influence• culture refers to values, ideas, attitudes
and other meaningful symbols created by people to shape human behaviors .
• Values, beliefs, preferences, tastes handed down generation to generation.
• Cultural is different from country to country, area to area.
Factors influencing buyer’s behavior
• Social Influence• Group often influence individual
purchase• Reference groups- people or
institutions whose opinion are valued, to whom a person looks for guidance. ( family, friends and celebrities)
• Social classes - upper-upper class,lower-uper class,upper-midle class, lower-middle class, working class, lower class.
Factors influencing buyer’s behavior
• Opinion Leaders-• The process of influencing others• Opinion via word of mouth• Information from media to opinion
leaders to other members• Celebrities,experts,salesman,delear
can be opinion leaders
Factors influencing buyer’s behavior
• Family influence• Structure of the family is changed• Autonomic role- individual decision• Husband dominant role• Wife-dominant role• Syncratic role• Children role in purchasing
Factors influencing buyer’s behavior• Personal determinants• Needs and motives • Maslow’s Hierarchy of needs :• Physiological needs( Basic needs)- food, water,
shelter, clothing• Safety needs-( security, protection) insurance,
medicines, retirement investments• Social/Belongingness needs-( Desire to accepted
by people) beauty aids, good clothing, cars • Esteem needs-(sense of achievement,
accomplishment) quality clothing, jewelries, hobbies
Self- Actualization needs-( to show unique talents and capabilities) education, cultural events, sports, travel, luxury goods
Factors influencing buyer’s behavior
• Perceptions- • Perceptions through sight, hearing,
touch, taste, and smell.• Perceptions regarding size, color,
weight, shape.• Attitudes-• Consumers decision to purchase the product is
strongly based on his attitudes about the product.( Brand preference)
Factors influencing buyer’s behavior
• Learning• Customer learns from his experience.• The marketer should develop the habit of
purchasing.
• Self concept theory( self image)• Persons multifaceted picture of himself
plays imp. role in buying behavior.• Family, social and cultural influences
affect self concept.
Buyer’s decision process• Step-1• Problem Identification/Need
Recognition• No problem arise, no purchasing decision• Marketer has to create need for their product• Difference between actual state and desired state• Need arise through TV ad, magazines etc.• ( MRF, Tata Sky plus, close up ,bike)
Buyer’s decision process• Step-2• Development of decision criteria• Consultation with friend, relatives about products• Opinion leader• Step-3• Search for alternatives• Searching for alternatives through media,
magzines,newspapers,etc• Personal sources, public sources. commercial
sources
Buyer’s decision process•Step-4•Evaluation of alternatives• Weightage given on the parameters ( taste
drive)• Resale value• After sales services•Step-5•Decision• Decision of buying can be changed because of
various reasons.
Buyer’s decision process•Step-6• Post purchase evaluation• Satisfied or unsatisfied customer• Customer anxieties called Cognitive
Dissonance.( Imbalance between knowlodge,attidtdes and beliefs)
• Rejected alternatives provides desirable features that chosen alternatives do not provide.
Industrial buying behavior Vs Domestic buying behavior
• Buying motives• Domestic buyers purchase product for own
consumption.• Industrial buyer purchase product for adding value
to the product which is then sold to another customer.
• Organization purchase the product to improve their own efficiency and work environment. ( Office machines)
• Orgasitional motives are more rational than psychological.
• Domestic buyers motives more psychological than rational.
Industrial buying behavior Vs Domestic buying behavior
• Size of buyer• Orgasitional buyers are few but the quantity they
purchase in bulk.• Domestic buyers are large in numbers but the
quantity is very less.• Okrgasitional buyer budget of purchase is in lakh
of rupees.• Domestic buyers budget never exceed a few
thousand Rs.
Industrial buying behavior Vs Domestic buying behavior
• Risk in purchases• Risk in orgasitional purchases are higher than
domestic purchase.• Previous experience with supplier, vender, supplier
standing in the industry are some factors that help organization to reduce the risk.
• Purchase decisions• The cost and risk of industrial purchase is high so
these decisions are taken jointly by involving many individuals.
• Individuals can take decision in domestic purchase.
Industrial buying behavior Vs Domestic buying behavior
• Concentration of buyers• Orgasitional buyers are concentrated in same
geographical area.• Domestic buyers are spread everywhere.
• Adherence to specification• Orgasitional buyers they are stick to their product
specification because it affect their efficency,priduct quality, after sales service, market share and ROI.
• Domestic buyers do not so rigid to their specification.
Customer values and satisfaction
“Customer’s perceived value is the bundle of economic, functional and psychological benefits that customer expects from a given market offering.”
The idea of value of maximation Total customer benefits1. Emotional/self expressive benefit2. Service benefits3. Performance benefit4. Brand/company benefits5. Product benefit
Classification of customer values
• Functional values- ( Physical performance)• Social values- ( gifts, entertainment
products, washing soap)• Emotional values- ( Health care products)• Conditional values• Products are used in particular conditions( coffee,
sunscreen lotions, warm clothes in cold area)• Universal values ( satisfying the needs of
customer)• Personal values ( satisfying wants of customer)
Customer satisfaction• Customer purchase the product with some
expectations.• Compare the performance of the product with
satisfaction.• Performance match with expectation- satisfied• Performance exceeds with expectation- delighted• Performance fall below with expectation-
dissatisfied• Satisfied customer- brand loyal, rentation of
customer
Customer delight• Every customer has some expectations
from the product.• When the product satisfied beyond his
expectation he delighted.• He became brand ambassador of that
product.