1. Major Factors Influencing Buying Behavior
Culture
Culture
Subculture
Social class
Social
reference grp
family
role and status
2. Major Factors Influencing Buying Behavior
Personal
Age and life cycle
Occupation
Economic circumstances
Life style
Personality and Self concepts
Psychological
motivation
perception
Learning
beliefs & attitude
4. • One person may assume multiple roles in the
decision making process
• Roles differ according to the product type being
bought
• As roles change within households, so do
purchasing activities
• High involvement products usually involve more
people in the decision making process
• Expert influence and emotional influences are
used by members to sway other members
5. Buying Behavior
1. Complex Buying Behavior: when they are
highly involved in purchase, aware of
differences among brands. E.g. cars product
inculdes risk and is of self expressive nature.
2. Dissonance Reducing Behavior: Highly
involved in purchase, but sees little difference
in brands. Purchase is expensive, infrequent,
risky but still buys quickly. E.g. gold.
6. Buying Behavior
3. Habitual Buying: Low consumer involvement
and absence of significant brand difference.
E.g. salt
4. Variety seeking: Low consumer involvement
but significant brand difference. E.g. choclates,
cold drinks.
7. THE BUYING PROCESS
• Problem recognition
Magnitude of discrepancy between desired and
present situation
Relative importance of the problem
Need inhibitors have to be overcome
8. The Buying Process (Contd.)
• Information search
Consumer first conducts an internal search
If internal search is insufficient, the
consumer goes in for external search
Third party reports provide unbiased
information
Personal experience with the product
unsubstitutable
Objective of information search to build up
awareness set
Advertising stimulates information search
9. The Buying Process (Contd.)
• Evaluation of alternatives and purchase
Formation of evolved set or the consideration
set
Consumers use various types of rules to arrive
at consideration set
Involvement: Degree of perceived relevance
and personal importance for particular
purchase decision
Differences in low and high involvement
decision making
10. The Buying Process (Contd.)
• Purchase and Post purchase evaluation of
decision
Place and mode of purchase
Payment terms and conditions
Delivery of the product
Installment
Training for usage of the product
14. CUSTOMER LOYALTY AND PROFITABILITY
• Loyal customers not necessarily cheaper to
serve
• Long-term customers consistently pay less
than the newer customers do
• Customers who feel and talk positively about
a company more likely to sell others on the
company
• Scrutinize customer transaction data carefully
in terms of profits they generate
15. Customer Loyalty And Profitability (Contd.)
• Categorize customers and treat them
differently
• Finding ways to engender positive feelings
about the company among loyal, satisfied
customers
• Very difficult to convert profitable but
transient customers into loyal ones by
spending on them
• Customers whose size and volume of
transactions are low can be of various types
17. EMOTIONAL ENGAGEMENT WITH
CUSTOMERS
• Important to show that the company cares
about loyal customers
• Treat customers with dignity especially when
they are faltering on some of their
commitments
• Subtle way to earn loyalty is to show that the
company trusts its customers
18. CUSTOMER RELATIONSHIP
MANAGEMENT
• Create a customer strategy before
implementing CRM
• Before CRM technology is installed, a customerfocused organization has to be created
• Objectives of CRM can be fulfilled without
installing a high-tech solution
• Wrong to try to build relationships with all the
existing and potential customers
20. Organizational Buying
It is the decision making process by which formal
organization establishes a need for the product
or service, then identify, evaluated and select
among alternative brand or supplier.
21. Characteristics of Business Market
1. Fewer Buyer
2. Large Quantity Buyer
3. Close supplier and customer relationship
4. Geographically close buyers
5. Derived Demand
6. Inelastic demand
7. Professional purchasing
8. Direct purchasing
9. Reciprocity
10.Leasing
