PPT on Buying Behaviour MBA Class Practice

1. RAJESH KUMAR .N.R
II.sem , MBA.
LMCST

2. Two Categories Of Buyer’s:-
•Individual Consumers
•Business Buyers

3. INDIVIDUAL BUYERS :-
These buyers buys things for his
own personal and family consumption.
BUSINESS BUYERS:-
These are the commercial buyers they
buys things for manufacturing other products
or for reselling or use in the running of his
enterprises.

4. BUYER BEHAVIOUR MODELS
1) MASLOW’S HIERARCHY OF NEEDS :
Self-actualization
Needs
Esteem Needs
Social Needs
Safety Needs
Physiological Needs

5. 2) The Economic Models:
Buyer is a rational man and his buying
decisions are totally governed by the concept of utility.
3) The Learning Model :
The buyer behavior can be influenced by
manipulating the drives ,stimuli and responses of the buyer.
4) The Psychoanalytical Model :
The individual consumer has a complex
set of deep-seated motives that drive him towards certain buying
decisions.

6. 5) The Sociological Model :
In this model the individual buyer is
influenced by society .His buying decisions are not totally governed by
utility ,he has a desire to emulate ,follow ,and fit in with his immediate
environment.
6) The Nicosia Model:
It tries to establish a link between the firm and the consumer. And
in this model human being is analyzed as a system with “stimuli” as a
the input of the System and “behavior” as the output of the system.
This model is put forward by “FRANCESCO NICOSIA.” In 1966.
7) The Howard- Sheth Model:
This model was put forward by John Howard and
Jagadish Sheth in 1969.According to this model ,there are inputs in the
form of stimuli. There are output beginning with attention to a given
stimulus and ending with purchase.

7. FACTORS INFLUENCING BUYERS
BEHAVIOUR:-
The factors influencing buyer’s behavior grouped into 3
broad categories;
1) Factors that are part of the buyers as an individual.
2) Buyer’s social environment (group influence)
3) Information from a variety of sources .

8. 1 .Factors That Are Part Of The Buyer As
An Individual:
(i) Personal factors
(ii)Cultural factors
(iii)Psychological factors

9. (I) Personal factors-(Age, Education, Economic
Position, Status, Self-concept)
An individual’s age, level of education,
his occupation, overall economic position and lifestyle, all influences his
role as a buyer. They decide what products will buy and consume. A
person’s self- concept and his concern about status also influence his
buying decisions.
(ii) Cultural factors: (Religion, language, etc…)
Within any religion, there may be
several sects and sub-sects; there may be orthodox groups and
cosmopolitan groups. In dress ,Food habits or marriage-in almost all
matters of individual life-religion and culture exercise an great
influence .

10. (iii)Psychological factors-(beliefs,attitudes,motivation,
and perception):-
Individuals coming under the same economic and social
groups can be vastly different when it comes to certain personal
believes, faith and attitudes. One may be traditional in the overall view
of life, while another may be modern. One may be least innovative,
while another may welcome anything new.

11. 2. Buyer’s Social Environment (Group Influence)
The buyer, he is not an ascetic, he is living
in a society, is influenced by it. He is a member of several organizations
and groups, both formal and informal. There is constant interaction
between the individual and the groups to which he belongs. Which
influence him in his day-to-day life and consequently, his buying
behavior.
Since there are two broad groups of which an individual is apart,
we shall discuss group influence in two parts.
(i) Influence of intimate group.
(ii) Influence of the broad social class

12. (i) Influence Of Intimate Group ;
The intimate groups are like, family, friends, close
colleagues and closely knit organizations. These groups exercise a strong
influence on the lifestyles and the buying patterns of its members.
Among these groups, the most influential and primary groups are the
family and peer groups. The peer group has the greatest influence on the
individual member as a stabilizer of styles and behavior patterns .
(ii) Influence Of The Broad Social Class;
The social class is a larger group than
the intimate groups. The constitution of a social class is decided by the
income, occupation, place of residence, etc., of the individual members.
They share a common lifestyle and behavior pattern. And they normally
select a product or a brand that caters to their class norms..

13. (iii) Information from Various Sources;
The buyer today is
exposed to a veritable flood of information, unleashed on him
from different sources. These sources inform him about new
products and services. The information sources includes,
advertising, samples, and trials, display in shops and sales
men’s suggestions.etc…

14. Buying motives
It may be defined as ‘all the impulses, desires
and considerations’, which induce a buyer to purchase a given
product.
Buying Motives Generally Of Two Types;
•Product motives
•Patronage motives
It is often said that “dissatisfaction of
human beings creates new products and new markets”. A product is
bundle of satisfaction. At least it is expected to be so .

15. •Product motives:-
There are two categories
•Emotional product motives
•Rational product motives
Emotional product motives are those impulses
that appeal to the buyer’s pride or ego, his urge to imitate others, or his
desire to be distinctive. It may persuade him to buy product without
evaluating the plus and minus points of such action. Rational product
motives, involves a logical analysis of the intended purchase- the
purpose expected to be served by the product.

16. 2. Patronage motives:-
Just like product motive patronage
motive also can be grouped into emotional and rational categories,
Emotional patronage are those that a buyer to buy from specific shops,
without much logical reason behind that action. However, if he selects
a shop because he knows that it offers a wide selection, or the latest
models, or good after-sales services, then he in influenced by the
Rational Patronage Motives. There is a combination of both emotional
and rational motives .

17. The buying process;
There are eight stages of
buying process,
 Problem recognition (need recognition)
 Awareness
 Comprehension (evaluation)
 Attitude
 Legitimization
 Trial
 Adoption
 Post-purchase behavior

18. Business buyers
Definition:-
A business buyer is one who buys goods and
services for any or all of the following purposes;
•For making other goods and services
•For reselling
•For use as consumables in the organisation

19. Classification of business buyers:-
•Buyers in the agriculture sector
•Buyers in the industrial sector
•Buyers in the service sector
• Resellers
• Buyers in the government sector
•Buyers in non-profit businesses

20. BUYING HABITS AND PATTERNS
•Goes through long negotiations.
•Frequency of purchase.
•Size of order.
•Several participants in the buying decisions.
•Distribution channels.