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Consumer Buying Behavior

 Consumer is the cause & purpose of

all production and marketing
activities.
 Understanding consumers buying behavior is
vital for marketing but are never simple.

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 Consumer Buying Behavior
Today consumers are faced with
an array of product selection, and
competition is fierce among
companies. This is why your
understanding of consumer
behavior is vital to the success of
your business.
• Companies that develop a fuller
understanding of consumers will
be better able to develop
marketing strategies to meet
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their needs.
 Consumer Buying Behavior
 Consumer buyer behavior refers to the buying
behavior of final consumers ─ individuals and
households that buy goods and services for
personal consumption. All of these final
consumers combine to make up the consumer
market.
 Consumer behavior : Studies how individual,
groups, and organization select, buy, use, and
dispose a products.

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 Model of Consumer Behavior
stimulus – response model

We can measure the whats, wheres, and whens of consumer

buying behavior. But it’s very difficult to “see” inside the
consumer’s head and figure out the whys of buying behavior
(that’s why we call black box). Marketers spend a lot of time and
dollars trying to figure out what makes customers tick.
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 Continued………..
How they get information?
How they decide what to
buy?
Where you buy?
How you pay for it?
How you take it to their
home?
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 Factors influencing consumer behavior

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 Continued.....
 Culture is the set of basic values, perceptions,
wants, and behaviors learned by a member of
society from family and other important
institutions.
 is the most basic cause of a person’s wants and
behavior.
 Human behavior is largely learned

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 Culture
• Culture influences consumers through
the norms and values established by the
society in which they live.
 Culture is inculcated- It is passed down
from one generation to another through
institutions such as family members and
religion.
• “Culture as the complex whole that
includes knowledge, beliefs, art, law,
morals, customs and any other
capabilities and habits acquired by
humans as a member of a society.”
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 Continued.....
Social classes : are society’s relatively permanent
and ordered divisions whose members share similar
values, interests, and behaviors.

 Can indicate income, occupation, education, and

area of residence.

 They differ in their dress, speech, recreational

preference, and many other characteristics.

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 Social Classes

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Social Class Life-style Orientation Purchasing Tendencies
Upper Class Good taste Quality merchandise
Expensive hobby and recreation
Graceful living equipment
Good Things in life Travel
Individual expression Art
Interest in arts and culture

Middle Class Respectability Items in fashion

Conformity Items related to self-presentation
social esteem Nice clothing, and home items

Working Class Fun oriented Newest appliances

Focus on Possessions Sporting events
Work related life Food items

Lower Class Close family relationships Readily available products

Not interested in world affairs
Neighborhood oriented

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 Social factors
Social Factors A consumer’s behavior also is influenced
by social factors, such as the consumer’s small groups,
family, and social roles and status.

Small
groups

Status Family

Social
roles

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 Social Factors
• As per this model, an individual buyer is a
part of the institution called society, gets
influenced by it and in turn, also influences it
in its path of development.
• The interactions with all the set of society
leave some impressions on him and may play a
role in influencing his buying behavior.
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 Group
• A group is two or more people who interact to
accomplish individual or mutual goals.
• Reference groups serve as direct or indirect points
of comparison or reference in forming a person’s
attitudes or behavior.
• Reference groups expose a person to new
behaviors and lifestyles, influence the person’s
attitudes and self-concept, and create pressures to
conform that may affect the person’s product and
brand choices.
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 Continued.....
• Membership group: groups having direct influence
on a persons decision.
• Include primary groups such as family, friends,
neighbors, and coworkers- have high continuous
interactions . And also secondary groups such as
religious, professional, and trade union groups –
have low continuous interactions
• Aspiration group: those groups a person would like
to join.
• Dissociative group: are those whose value or
behavior a person reject.
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 opinion leaders:
• opinion leaders: people with a reference
group who, because of special skills,
knowledge, personality, or other
characteristics, exert influence over others.

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 Roles and Status

• A role consists of the activities people are expected to

perform according to the people around them.
• Each role carries a status reflecting the general esteem
given to it by society.
• People usually choose products appropriate to their
roles and status.

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 Personal factors
Age and
life-cycle
stage

Personality
and self- Occupation
concept
Persona
l factors

Economic
Lifestyle
situation

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 Occupation
• A person’s occupation affects the goods and
services bought.
• Marketers try to identify the occupational groups
that have an above-average interest in their
products and services.
• A company can even specialize in making products
needed by given occupational group.

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 Lifestyle
• Lifestyle is a person’s pattern of living as expressed in his or her
activities, interests, and opinions.
• It involves measuring consumers’ major AIO dimensions ─
activities, interests, and opinions.
• It can help marketers understand changing consumer values
and how they affect buyer behavior.

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Personality and Self-Concept
 Personality refers to the unique psychological characteristics
that distinguish a person or group.
 Personality is usually described in terms of traits such as self-
confidence, dominance, sociability, autonomy,
defensiveness, adaptability, and aggressiveness.
 Brand personality is the specific mix of human traits that may
be attributed to a particular brand.

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 Personality
• Product Personality includes: manly,
adventurous, sporting, stylish,
mature, etc.

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 Psychological factors
Motivation

Beliefs and Psychologi

Perception
attitudes cal factors

Learning

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Motivation
 A motive (drive) is a need that is sufficiently pressing to
direct the person to seek satisfaction.
 Motivation researchers use a variety of probing
techniques to uncover underlying emotions and attitudes
toward brands and buying situations.
 motivation is the process that account for an individual
intensity, direction, and persistence of effort towards
attaining a goal.

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 Motivation

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 Perception
• All of us by the flow of information through our
five senses: sight, hearing, smell, touch, and
taste.
• Perception is the process by which people
select, organize, and interpret information to
form a meaningful picture of the world.
• People can form different perceptions of the
same stimulus because of three perceptual
processes: selective attention, selective
distortion, and selective retention.
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 • Selective Attention Selective Retention
 Consumers are likely to remember
 The tendency for people to
good points made about a brand
screen out most of the
they favor and forget good points
information to which they are
made about competing brands.
exposed
 Means that marketers must work
especially hard to attract the
consumer’s attention

Selective Distortion
 Describes the tendency of people to interpret information in a way that will
support what they already believe.

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 Learning
• Learning
– Describes relatively permanent change in an
individual’s behavior Occurring from experience.
– Occurs through the interplay of drives, stimuli,
cues, responses, and reinforcement.

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 Learning
• From a marketing perspective,, consumer learning
can be thought of as the process by which individuals
acquire the purchase and consumption knowledge
and experience that they apply to future related
behavior.

• Both newly acquired knowledge and personal

experience serve as feedback to the individual and
provide the basis for future behavior in similar
situations.

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 Learning

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 Types of Buying Decision Behavior
• Complex Buying Behavior Habitual Buying Behavior
• Consumers are highly involved • Occurs under conditions of low-
in a purchase and perceive consumer involvement and little
significant differences among significant brand difference
brands.

Variety-Seeking Buying Dissonance-Reducing Buying

Behavior Behavior
• Occurs in situations • Occurs when consumers are
characterized by low highly involved with an
consumer involvement but expensive, infrequent, or risky
significant perceived brand purchase but see little difference
differences among brands
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 Did I buy the right product

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The Buyer Decision Process

Need
recogniti
on

Postpurc Informat
hase ion
behavior Buyer search
decision
process

Evaluati
Purchas on of
e alternati
decision ves

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Need Recognition
 The buying process starts with need recognition ─ the
buyer recognizes a problem or need.
 The need can be triggered by internal stimuli when one of
the person’s normal needs ─ for example, hunger or thirst
─ rises to a level high enough to become a drive.
 A need can also be triggered by external stimuli.

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Information Search
 Information search is the stage of the buyer decision
process in which the consumer is motivated to search for
more information.
 Traditionally, consumers have received the most
information about a product from commercial sources
that controlled by the marketer.
 The most effective sources tend to be personal.
 Commercial sources normally inform the buyer, but
personal sources legitimize or evaluate products for the
buyer.

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Evaluation of Alternatives
The alternative evaluation is the stage of the
buyer decision process in which the consumer
uses information to evaluate alternative brands in
the choice set.
Marketers should study buyers to find out how
they actually evaluate brand alternatives.

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Purchase Decision
 The purchase decision is the buyer’s decision about
which brand to purchase.
 But two factors can come between the purchase intention
and the purchase decision.
 The first factor is the attitudes of others.
 The second factor is unexpected situational factors.

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Post purchase Behavior
The postpurchase behavior is the stage of the
buyer decision process in which consumers take
further action after purchase, based on their
satisfaction or dissatisfaction.
Almost all major purchases, however, result in
cognitive dissonance, or discomfort caused by
postpurchase conflict.

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 Discussion
• Identify and Discuss a social media platform
which is influenced by certain reference
groups and opinion leaders?
• Further also attempt to analyze how social
networking communities are providing
beneficial- compared to conventional
advertising strategies in creating brand
awareness in the market?

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 Latest Improvements
• Neuro marketing: The neuro marketing concept
was developed by psychologists at Harvard
University in 1990. The technology is based on a
model whereby the major thinking part of human
activity (over 90%), including emotion, takes place
in the subconscious area that is below the levels of
controlled awareness. For this reason, the
perception technologists of the market are very
tempted to learn the techniques of effective
manipulation of the subconscious brain activity.
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 The End

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