MARKETING MANAGEMENT Buyer Behaviour

Consumer markets & consumer buyer behavior

Model of CB Characteristics affecting CB Types of buying decision behaviors Buyer decision process Buyer decision process for NPs

Model of consumer behavior

Consumer buyer behavior
Buying behavior of final consumers
individuals & households who buy goods & services for personal consumption

Consumer market
Refers to all of the personal consumption of final consumers

Model of consumer behavior

Characteristics affecting CB Influencing factors

Characteristics affecting CB [Culture]

Culture
Learned values Perceptions Wants Behavior from family and other important institutions

Characteristics affecting CB [Subculture]

Subcultures
Groups of people within a culture
With shared value systems Based on common life experiences & situations

Bengalis Gujaratis Punjabis Mallus Tams

Characteristics affecting CB [Social class]

Social classes
Societys relatively permanent & ordered divisions whose members share similar values, interests, and behaviors Measured by a combination of occupation, income, education, wealth, and other variables

Characteristics affecting CB [Groups & social networks]

Membership Groups Groups with direct influence and to which a person belongs Aspirational Groups Groups an individual wishes to belong to Reference Groups Groups that form a comparison or reference in forming attitudes or behavior

Characteristics affecting CB [Groups & social networks - WOM]

WOM influence & buzz marketing
Opinion leaders
People within a reference group who exert social influence on others Also called influentials or leading adopters Marketers identify them to use as brand ambassadors

Characteristics affecting CB [Groups & social networks - Online]

Online Social Networks
Online communities where people socialize or exchange information and opinions Include blogs, social networking sites (facebook), virtual worlds (second life)

Characteristics affecting CB [Groups & social networks Social factors]

Family
Most important consumer-buying organization in society

The groups, family, clubs, and organizations that a person belongs to define his/her social role and status

Characteristics affecting CB [Groups & social networks Personal factors]

Age & life-cycle stage RBC Royal Band stages
Youth: younger than 18 Getting started: 1835 Builders: 3550 Accumulators: 5060 Preservers: over 60

Characteristics affecting CB [Groups & social networks Personal factors]

Occupation
Affects the goods and services bought by consumers

Economic situation includes trends in:

Personal income

Savings

Interest rates

Characteristics affecting CB [Groups & social networks Personal factors] Lifestyle

Persons pattern of living as expressed in his or her psychographics

Measures a consumers AIOs (activities, interests, opinions)

To capture information about a persons pattern of acting and interacting in the environment

Characteristics affecting CB [Groups & social networks Personal factors] Personality and self-concept
Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumers environment

Characteristics affecting CB

Personal Factors

Dominance

Autonomy

Defensiveness

Adaptability

Aggressiveness

Characteristics affecting CB [Groups & social networks Psychological factors]

Motivation Perception Learning Beliefs and attitudes

Characteristics affecting CB [Groups & social networks Psychological factors - Motivation]

A motive
Need that is sufficiently pressing to direct the person to seek satisfaction

Motivation research
Refers to qualitative research designed to probe consumers hidden, subconscious motivations

Characteristics affecting CB [Maslows Hierarchy of Needs]

Characteristics affecting CB [Groups & social networks Psychological factors - Perception]

Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes
Selective attention Selective distortion Selective retention

Characteristics affecting CB [Groups & social networks Psychological factors - Perception]

Selective attention
Tendency for people to screen out most of the information to which they are exposed

Selective distortion
Tendency for people to interpret information in a way that will support what they already believe

Selective retention
Tendency to remember good points made about a brand they favor and forget good points about competing brands

Characteristics affecting CB [Groups & social networks Psychological factors - Learning]

Learning
Change in an individuals behavior arising from experience and occurs through interplay of:
Drives Responses Stimuli Cues

Reinforcement

Characteristics affecting CB [Groups & social networks Psychological factors Beliefs]

Belief is a descriptive thought that a person has about something based on:
Knowledge Opinion Faith

Characteristics affecting CB [Groups & social networks Psychological factors - Attitudes]

Attitudes
Describe a persons relatively consistent
Evaluations Feelings & Tendencies Toward an object or idea

Types of buying decision behavior

Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior

Types of buying decision behavior

Decision making sets

Total Set

Awareness Set

Consideration Set

Choice Set

Decision

Consumer buying roles

Initiator User Influencer

Buying Decision
Buyer Decider

CDM process

CDM process [Need recognition]

Occurs when the buyer recognizes a problem or need triggered by:
Internal stimuli External stimuli

CDM process [Info search]

Personal sources
Family and friends

Commercial sources
Advertising, Internet

Public sources
Mass media, consumer organizations

Experiential sources
Handling, examining, using the product

CDM process [Evaluation of alternatives]

How the consumer processes information to arrive at brand choices

CDM process [Purchase decision]

The act by the consumer to buy the most preferred brand The purchase decision can be affected by:
Attitudes of others Unexpected situational factors

CDM process [Post-purchase decision]

(Dis)satisfaction consumer feels about purchase Relationship between
Expectations & Perception Larger the gap
Greater consumers (dis)satisfaction

Cognitive dissonance
Discomfort caused by post-purchase conflict

CDM process [Post-purchase decision - CS]

Customer satisfaction
Key to building profitable relationships with consumers
Keep & grow consumers Reap CLtV

Buyer decision process for NPs

Adoption process
Mental process an individual goes through
From first learning about an innovation to final regular use

Stages in the process include

Awareness

Interest

Evaluation

Trial

Adoption

Buyer decision process for NPs [ACCORD]

Advantage

Compatibility

Complexity

Observability

Risk

Divisibility

Adopter categories
Innovators Early Majority Early Adopters 34 2.5% 13.5 Time of Adoption Early Late 34 16 Late Majority

%age of Adopters

Laggards