Download - Buyer behaviour & steps
Marketing Management
Unit II: BUYER BEHAVIOUR
I MBA A & B RR MM 2011 Batch1
The most important thing is to forecast where customers are moving, and to be in front of them.
I MBA A & B RR MM 2011 Batch2
Introduction and DEFINITION The aim of marketing is to meet and satisfy target
customer’s needs and wants Consumer Behaviour studies how individuals, groups, and
organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires whirlpool – anthropologist- he went to people’s home observed
how they used their appliances and talked with all household members found out kids and men were using in women working families
Kodak – Advanta- high- tech which began to loose its appeal and simplicity began to edge out
I MBA A & B RR MM 2011 Batch3
Consumer Buying Behavior Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption.
The central question for marketers is: ““How do consumers respond to various How do consumers respond to various
marketing efforts the company might use?” marketing efforts the company might use?”
Consumer Buying Behavior
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Some consumer behavior roles The initiator who determines that some need or
want is not being met and authorizes a purchase to rectify the situation- initiator
A person who by some intentional or unintentional word or action influences the purchase decision, purchase or use of the product or service- influencer
The individual who actually makes the purchase transactions- buyer
The person who is directly involved in the consumption or use of the product- User
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Model of Buying BehaviorModel of Buying Behavior
Buyer’s decisions
Product choiceBrand choiceDealer choicePurchase timingPurchase amount
Buyer’s decisionprocess
Problem recognitionInformation searchEvaluationDecisionPostpurchase behavior
Buyer’scharacteristics
CulturalSocialPersonalPsychological
Otherstimuli
EconomicTechnologicalPolitical
Marketingstimuli
ProductPricePlacePromotion
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The major factors influencing buying behaviour Cultural factors
Culture Subculture Social class
Social factors Reference groups Family Social roles and statuses
Personal factors Age and stages in life cycle Occupation and economic circumstances Life style Personality Self- concept
Psychological factors Motivation Perception Learning Beliefs and attitudes
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Factors Influencing Consumer Behavior
Social
Referencegroups
Family
Rolesand
status
PersonalAge andlife-cycle
OccupationEconomicsituationLifestyle
Personalityand
self-concept
Psycho-logical
MotivationPerceptionLearning
Beliefs andattitudes
Buyer
Culture
Sub-culture
Socialclass
Culture
Sub-culture
Socialclass
Cultural
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Culture
Cultural FactorsCultural Factors
Subculture
Social Class
BuyerBuyer
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Culture
The fundamental determinant of a person’s wants and behaviors
acquired through socializationprocesses with family
and other key institutions.
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Factors Affecting Consumer Behavior: Culture
Subculture• Group of people with
shared value systems based on common life experiences.
• African American Consumers
• Asian American Consumers
• Mature Consumers
Culture is the Most Basic Cause of a Person's Wants and Behavior.
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Social Class
3 classes Low class- consumers usually buy on impulse and do not
even care to read ad’s much Middle class- purchase carefully, read and compare Upper class US classes
Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers
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Factors Affecting Consumer Behavior: Social Factors Reference groups- all the groups that have a direct or
indirect influence on the person’s attitude or behavior Groups have direct influence on a person are called
membership groupsPrimary groups- family, friends, neighbors and co-
worker (fairly continuously and informally )Secondary groups- religious, professional and
trade union groups ( more formal and less continuous interaction)
Reference groupsAspirational groups- are those the person hopes
to joinDissociate groups- are those whose values or
behaviour an individual rejectsOpinion leader- is a person in informal product
related communications who offers advice or information on a specific brand or product
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Factors Affecting Consumer Behavior: Social Factors Family
Family of orientation- parents and siblings Family of procreation- one’s spouse and children
Roles and statuses Role consists of activities that a person is
expected to perform each role consists of a status ex: judge and sales person Marketers are aware of the status symbol
potential of products and brands
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Personal InfluencesPersonal Influences
Age and Life Cycle Stage
Age and Life Cycle Stage OccupationOccupation Personality &
Self-ConceptPersonality & Self-Concept
Economic Situation
Economic Situation
ActivitiesActivities InterestsInterests
Lifestyle IdentificationLifestyle Identification
OpinionsOpinions
Factors Affecting Consumer Behavior: Personal
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Factors Affecting Consumer Behavior: Psychological
PsychologicalFactors
AffectingBuyers Choices
Motivation
Perception
Learning
Beliefs andAttitudes
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Psychological - Motive
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A motive is a need that has a sufficient level of intensity. Creating a tension state that drives the person to act.
Satisfying the need reduces the felt tension.
Psychological - Perception
The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.
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Psychological - Learning
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Changes in an individual’s behavior arising from experience.
Psychological - Attitude
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An attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.
Maslow’s Hierarchyof Needs
Psychological needs(food, water, shelter)Psychological needs(food, water, shelter)1
Safety needs(security, protection)
Safety needs(security, protection)
2
Social needs(sense of belonging, love)
Social needs(sense of belonging, love)3
Esteem needs(self-esteem, recognition)
Esteem needs(self-esteem, recognition)
4
Self-actualization
(self-developmentand realization)
Self-actualization
(self-developmentand realization)
5
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Consumer Buying Decision Process
Understand
Buying roles Buying behavior Buying decision
process
Initiator Influencer Decider Buyer User
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Consumer Buying Decision Process
Understand
Buying roles Buying behavior Buying decision
process
Complex buying behavior
Dissonance-reducing buying behavior
Habitual buying behavior
Variety-seeking buying behavior
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Consumer Buying Decision Process
Understand
Buying roles Buying behavior Buying decision
process
Problem recognition Information search Evaluation of
alternatives Purchase decision Post purchase
behavior
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Four Types of Buying Behavior
ComplexBuying
Behavior
Dissonance-Reducing Buying
Behavior
Variety-SeekingBehavior
HabitualBuying
Behavior
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
HighInvolvement
LowInvolvement
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Buyer Decision Process
Post PurchaseBehavior
Purchase
Decision
Information
SearchProblem/
Need Recognitio
n
Evaluationof
Alternatives
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Buyer Decision Process Problem Recognition
Triggered by internal or external stimuli Information Search
Heightened attention- more receptive Active information search
Sources- personal sources commercial sources public sources- mass media, consumer rating org. Experiential sources- handling, examining, using the product
Evaluation of Alternatives Satisfy their need Certain benefits Bundle of attributes (hotels- location, cleanliness, atmosphere,
price)
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Buyer Decision Process ( cond…) Purchase decision
Attitudes of others Unanticipated situational factors
Post Purchase Behaviour Post purchase satisfaction Post purchase actions Post purchase use and Disposal
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TotalSet
Decision Making Sets
Aware-nessSet
Consid-eration
Set ChoiceSet Decision
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Decision Making Sets
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Steps Between Evaluation of Alternatives and a Purchase Decision
EvaluationEvaluationofof
alternativesalternatives
Purchasedecision
Unanticipatedsituational
factors
Attitudeof others
Purchaseintention
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How Customers Use orDispose of Products
Product
Get rid of ittemporarily
Get rid of itpermanently
Keep it
Loan it
Rent it
Store it
Convertto new
purpose
Use fororiginalpurpose
Give itaway
Trade it
Sell it
Throw itaway
Direct toconsumer
Tointermediary
Throughmiddleman
To beused
To be(re)sold
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