2. Consumer Buying Behavior
Consumer Buying Behavior refers to the buying
behavior of final consumers -individuals & households
who buy goods and services for personal consumption.
All these consumers make up the consumer market.
The central question for marketers is:
“How do consumers respond to various marketing efforts
the company might use?”
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3. EIGHT O’s OF MARKETING
Occupants: Who constitutes the Market
Objects: What does the market buy?
Objectives: Why does the market buy?
Organization: Who participates in buying?
Operations: How does the market buy?
Occasions: When does the market buy?
Outlets: Where does the market buy?
Opponents: Whose objects does the market buy?
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4. Model of Buyer Behavior
Marketing and Buyer’s Black Box Buyer Responses
Other Stimuli
Marketing Buyer Characteristics Product Choice
Product Buyer Decision Process Brand Choice
Price Dealer Choice
Place
Promotion
Other Purchase Timing
Economic Purchase Amount
Technological
Political
Cultural
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5. Factors Influencing
Consumer Behavior
Cultural
Social Personal
Age and Psycho-
Culture Reference life-cycle logical
groups
Occupation Motivation
Economic Perception Buyer
Sub-
culture Family situation Learning
Lifestyle Beliefs and
Roles Personality attitudes
Social and and
class status self-concept
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6. Factors Affecting Consumer
Behavior: Culture
Culture is the Most Basic Cause of a Person's
Wants and Behavior.
Subculture
• Group of people with shared
value systems based on
common life experiences.
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7. Factors Affecting Consumer
Behavior: Culture
Culture is the Set of Values, Perceptions, Wants &
Behavior Learned by a Member of Society from
Family.
Social Class
• Society’s relatively permanent
& ordered divisions whose
members share similar values,
interests, and behaviors.
• Measured by: Occupation,
Income, Education, Wealth and
Other Variables.
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8. Factors Affecting Consumer
Behavior: Social
Groups
•Membership
•Reference
Family (most important)
•Husband, wife, kids Social Factors
•Influencer, buyer, user
Roles and Status
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9. Factors Affecting Consumer Behavior: Personal
Personal Influences
Personal Influences
Age and Life
Age and Life Economic
Economic Personality &
Personality &
Cycle Stage Occupation
Occupation Situation Self-Concept
Cycle Stage Situation Self-Concept
Lifestyle Identification
Lifestyle Identification
Activities
Activities Interests
Interests Opinions
Opinions
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10. SRI Values and Lifestyles (VALS)
Actualizers High Innovation
High Resources
Fulfillers Achievers Experiencers
Believers Strivers Makers
Strugglers
Low Resources Low Innovation
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12. Maslow’s Hierarchy of Needs
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
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13. Types of Buying Decision Behavior
High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between Behavior Behavior
brands
Few Dissonance- Habitual
differences Reducing Buying Buying
between Behavior Behavior
brands
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14. Buyer Decision Process
Purchase
Decision
Evaluation Post purchase
of Alternatives Behavior
Information
Search
Need
Recognition 14
15. Buyer Decision Process
Step 1. Need Recognition
Buyer
Recognizes Needs Arising
State Where the From:
Buyer’s Needs a
are Fulfilled and Problem Internal Stimuli –
the Buyer is or a
Need. Hunger
Satisfied.
External Stimuli-
Friends
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16. The Buyer Decision Process
Step 2. Information Search
Personal Sources •Family, friends, neighbors
•Most effective source of
information
Commercial Sources •Advertising, salespeople
•Receives most information from
these sources
Public Sources •Mass Media
•Consumer-rating groups
•Handling the product
Experiential Sources •Examining the product
•Using the product
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17. The Buyer Decision Process
Step 3. Evaluation of Alternatives
Consumer May Use Careful
Calculations & Logical Thinking
Consumers May Buy on Impulse and
Rely on Intuition
Consumers May Make Buying Decisions
on Their Own.
Consumers May Make Buying Decisions
Only After Consulting Others.
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
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18. The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes Unexpected
of Others Situational
Factors
Purchase Decision
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19. The Buyer Decision Process
Step 5. Post purchase Behavior
Satisfied Customer!
Cognitive Dissonance
Consumer’s
Expectations of Product’s Performance.
Product’s Perceived
Performance.
Dissatisfied Customer
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20. Stages in the Adoption Process
Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks
Information about new product.
Evaluation: Consumer considers
trying new product.
Trial: Consumer tries new
product on a small scale.
Adoption: Consumer decides
to make regular use of product.
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21. Adopter Categories
Percentage of Adopters
Early Majority Late Majority
Innovators
Early
34% 34% Laggards
Adopters
13.5% 16%
2.5% Time of Adoption
Early Late
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22. Influence of Product Characteristics
on Rate of Adoption
Communicability Relative Advantage
Can results be easily
Is the innovation
observed or described
to others? superior to existing
products?
Divisibility Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or use?
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23. Business Buying Behavior
Business market : organizations that buy goods and
services for use in the production of other products
and services that are sold rented, or supplied to others
Business buying process: the decision making
process by which business buyers establish the need
for purchased products and services and identify,
evaluate and choose among alternative brands and
suppliers
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24. Characteristics of business
markets
Characters Characteristics of business markets
Marketing •Business markets contain fewer but larger buyers
structure and •Business customers are more geographically concentrated
demand •Business buyer demand is derived from final consumer
demand
•Demand is more inelastic
Nature of the •Business purchases involve more buyers
buying unit •Business buying involves a more professional effort
Types of decisions •Business buyers usually face more complex buying
and decision decision
process •The business buying process is more formalized
•Buyers and sellers work more closely together and work
on long run relationships
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25. Model of business
buyer behavior
The The buying Buyer
Environment organization Response
The Buying Product
Marketing Other Center /service choice
stimuli stimuli
Supplier
PET Buying
Decision Order
Cultural
Competitive Process quantities
Product Delivery times
Price
Place Service terms
Promotion
Organizational influences Payment
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26. Major types of buying situations
Types Explanation
Straight rebuy Buyer routinely reorders something without modifications
Modified rebuy Buyer wants to modify product specifications (price, terms)
New task Buyer purchases a product or service for the first time
Systems buying Buying a packaged solution to a problem from a single seller
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27. Participants in the Business buying
process
Participants
Buying center The decision making unit of a buying organization
Users Members of org who will use the product/services
Influencers Technical personnel are important influencers , define
specifications
Deciders Have formal/informal power to select or approve the final
supplier
Gatekeepers Control the flow of information to others , technical persons,
secretary, purchasing agents
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28. Major influences on business
buyers
Environmental Organizational
Economic Interpersonal
Developments Objectives Individual
Supply Policies Authority Age
conditions Education
Procedures Status Job
Technological responsibility
Buyers
change Organizational Empathy Personality
structure Risk Attitudes
Competitive Persuasiveness
developments Systems
Culture
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29. The business buying process
Problem Recognition Someone in the company finds a problem that can be met
by acquiring a good/service
General need Stage in which company describes general characteristics
description and quantity of a needed item
Product Stage of BP, buying org decides or specifies best technical
specifications product characteristics for a needed item
Supplier search Buyer tries to find the best vendor
Proposal Buyers invite qualified suppliers to submit proposal
solicitations
Supplier selection Buyer review proposal and select a supplier or suppliers
Order routine Final order , listing the technical specifications (quantity,
specifications delivery, expected time, return policies, and warranties
Performance review Buyer rates its satisfaction with suppliers (continue,
modify and drop)
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