Consumer behavior

Consumer behavior: Meaning Customer behavior V/S consumer behavior Consumer behavior models Factors influencing consumer behavior Buying motives Consumer buying roles Types of buyer behavior Stages in the buying decision process Business markets and buying behavior Characteristics of business markets Factors influencing organi ational behavior Buying decision of organi ational buyers

Consumer behavior
Consumer Buying Behavior that consumer display in searching for! purchasing! using! evaluating! and disposing of products and services that they e"pect #ill satisfy their needs Consumer Buying Behavior refers to the buying behavior of final consumers $individuals % households& #ho buy goods and services for personal consumption' Consumer behavior is study of ho# individuals make decisions to spend their available resources$time!money!effort& on consumption related activities'

Customer behavior v/s Consumer behavior

Customer behavior: a broad term that covers both individual consumers #ho buy goods and services for their o#n use and organi ational buyers #ho purchase business products Consumer behavior: the process through #hich the ultimate buyer makes purchase decisions
WHY (NEED) CONSUMER BEH !"OR S#UDY$

There are so many reasons to study C'B' i' Consumer preferences are changing % become highly diversified' ii' Customers dislike using identical products % prefer differentiated products' iii' Meeting of special needs of customer(s re)uirement market segmentation' iv' *apid introduction of ne# products #ith technological advancement' v' Consumer behavior can be used to sell products that might not sell easily'

Mo%e& o' Bu(er Behavior Consumer behavior is a comple" sub+ect because the needs! #ants and demand of human are innumerable' So the marketing e"perts propound certain consumer behavior models for e"plaining buyer behavior they are: #he E)onomi) Mo%e&: The economic model of consumer behavior vie#s the buyer as a rational man and his buying decision #ill only be concerned #ith utility' #he *earnin+ Mo%e&: The learning model of consumer behavior vie#s the buyer has a learning process and through that they get e"perience' #he ,s()ho-ana&(ti)a& Mo%e&: The individual consumer has a set of deep seated motives that drive him to#ards certain buying decisions' #he so)io&o+i)a& Mo%e&: The individual buyer is influenced by the society he is influenced by intimate groups and social classes' #he Ho.ar%- Sheth Mo%e&: this model introduced by ,ohn -o#ard and ,agdish Sheth in ./0/ in their publication titled 1The theory of Buyer Behavior2 the buyer is analy ed here as a system #ith stimuli as the input into the system and behavior as the output of the system'

Stimuli3 *esponse model

Mar1etin+ other stimu&i Mar1etin+ Others 8roduct 9conomic 8rice Technological 8lace 8olitical 8romotion Cultural

Bu(er0s b&a)1 bo2 Buyer characteristics Buyer decision process

Bu(er res3onses 8roduct choice Brand choice :ealer choice 8urchase timing 8urchase amount

/a)tors in'&uen)in+ Consumer Behavior Cu&tura&

Culture Subculture Social Class

So)ia&
*eference 4roups Family *oles % Status

,ersona&
5ge % 6ife3 Cycle Stage 7ccupation 9conomic Situation 8ersonality % Self3Concept 6ifestyle

,s()ho&o+i)a&
Motivation 8erception 6earning Beliefs % 5ttitudes

Cu&tura& Chara)teristi)s

Cu&ture: the set of basic values! perceptions! #ants! and behaviors learned by a member of society from family and other important institutions' Sub)u&ture: a group of people #ith shared value systems based on common life e"periences and situations' So)ia& )&asses: relatively permanent and ordered divisions in a society #hose members share similar values interests! and behavior So)ia& 4rou3s: Membership *eference $opinion leaders& 5pparitional /ami&(: Most important consumer buying organi ation Ro&es an% Res3onsibi&ities: *ole ;9"pected activities Status ;9steem given to role by society ,ersona& +e 5 *i'e-C()&e Sta+e: the stages through #hich families might pass as they mature overtime' O))u3ation E)onomi) Situation *i'est(&e: a person(s pattern of living as e"pressed in his or her activities! interests! and opinion' ,ersona&it(: 8ersonality refers the sum of #ays in #hich an individual reacts and interacts #ith others Se&'-Con)e3t: Self3concept suggests that people(s possessions contribute to and reflect their identities6 ,s()ho&o+i)a& Motivation: a need that is sufficiently pressing to direct the person to seek satisfaction of the need' Note: 5braham Maslo# theory recommended ,er)e3tion: the process by #hich people select! organi e and interpret information to form a meaningful picture of the #orld'

*earnin+: 5 change in and individual(s behavior arising from e"perience' Be&ie's: a descriptive thought that a person holds about something' ttitu%es: a person(s consistently favorable or unfavorable evaluations! and feelings and tendencies to#ards an ob+ect or idea'

#(3es o' bu(in+ Motives

,ro%u)t motives: these are desire and consideration #hich make people buy specific product ,atrona+e motives: the buyer may buy from a specific shop #ithout any reason #(3es o' 3ro%u)t an% 3atrona+e motives: 9motional motives! rational motives! 8sychological motives Consumer behavior ro&es: There are five roles people might play in the buying decision' They are .' <nitiator =' <nfluencer >' :ecider ?' Buyer @' Aser

#(3es o' bu(er behavior -igh involvement 6o# involvement

Ma+or diff

Com3&e2 bu(in+ behavior

!ariet( see1in+ bu(in+ behavior

Dissonan)e re%u)in+ bu(in+ behavior B/# Brands Fe# diff B/# Brands

Habitua& bu(in+ behavior

Com3&e2 bu(in+ behavior The consumer highly involved in a purchasing #hen it is e"pensive! bought in fre)uently! risky and highly self e"pensive' Typically! the consumer does not kno# much category and has much to learn $e"ample B computer& Dissonan)e re%u)in+ bu(in+ behavior The consumer is highly involved in a purchase but sees little differences in the brand $9"ample 3 Carpet& !ariet( see1in+ bu(in+ behavior Some buying situations are characteri ed by lo# consumer involvement but significant brand preferences here consumers are often observed to do a lot of brand s#itching'

Habitua& bu(in+ behavior many products are bought under conditions of lo# consumer involvement and the absence of significant brand preferences

Sta+es in the bu(in+ %e)ision 3ro)ess The consumer as pass through five stages they are:

.' Ceed recognition

=' <nformation search >' 9valuation of alternatives

?' 8urchase decision @' 8ost purchase behavior

Business Mar1ets
The business or organi ational market consists of all the individual and organi ations that ac)uire goods and services that enter into the production of other products or services that are sold

The types of industries making the business market are agriculture! forestry! mining! transportation! banking! insurance and services

Chara)teristi)s o' Business mar1et

Fe#er buyers 6arger buyer :erived demand Fluctuating demand 8rofessional purchasing <n elastic demand

/a)tors in'&uen)in+ or+ani7ationa& bu(ers

86 Environmenta& 'a)tors $Technological! competition! political! etc'''& 96 Or+ani7ationa& 'a)tors $7rgani ational ob+ectives! goals! policies! system! structure& :6 "nter3ersona& 'a)tors $Status! authority! empathy& ;6 "n%ivi%ua& 'a)tors $5ge! income! education! style! attitude&

Or+ani7ationa& bu(in+ 3ro)ess: business buyers move a

purchasing process consisting of eight different stages called buying phases

.' 8roblem recognition E' 7rder routine =' Supplier D' >' ?' @' 0' 4eneral specification 8erformance 8roduct 8roposal need search selection solicitation *evie# description Specification