Consumer buyer behavior

Buying Decision Process

Need Recognition Information Search Evaluation of alternatives Post Purchase behavior Purchase Decision

Need Recognition
Need State of Deprivation of a fundamental satisfaction Need is triggered by

Internal Stimuli External Stimuli

Information Search

Heighten Attention - Receptive to information Active Search - Search for Information Sources of Information
Personal
Commercial Public

Experimental

Evaluation of alternatives

Total Set Awareness Set Consideration Set Choice Set Decision

Purchase Decision Attitude of Others

Purchase Decision

Unanticipated situational factors

Purchase

Purchase Intention

Post Purchase behavior

Satisfaction Product Expectation = Product Performance Delight Product Expectation > Product Performance Dissatisfaction Product Expectation < Product Performance Product get rid of it temporarily, get rid of it permanently, Keep it.

Types of Buying Decision Behaviour

1. Complex Buying Process: a) High Consumer Involvement b) Seeking differences in Brand 2. Dissonance Reducing Buying Behaviour: a)High Involvement b) Few Differences among brand 3. Habitual Buying Behaviour : a) Low consumer involvement b)little significant difference No extensive search (d) Advertisement makes it simple 4. Variety Seeking Buying Behaviour: a) Low involvement and significant differences

High Involvement

Low Involvement

Complex Buying Behaviour

Variety Seeking buying behaviour

Dissonance reducing Buying Behaviour

Habitual Buying Behaviour

Factors affecting CB

Culture Social personal

It is the fundamental determinant of the persons wants & behavior Values ,preferences, Perceptions & behavior is based on culture SUSCULTURE Smaller cultural groups within the culture Provides more specific identification & socialization for their members Eg Religion,geographic region

Culture

Social class Homogenous group whose members share similar values, interests & behavior Characteristics Tend to behave alike Persons status is based on this Indicated by cluster of variables Individuals move up& down the social class

Social Factors

Reference group All the groups having direct or indirect influence on the consumers behavior Primary Secondary (Direct influence) (Indirect) Aspirational group:Those whom we like to associate Dissociative group Whose behavior we reject

Family Family of Orientation : Parents & siblings Family of Procreation : Spouse & children

Role status Activities a person is expected to perform Status The power that arises out of the role

Personal Factors

Age & stage in lifecycle Occupation & economic circumstance Personality Inner characteristics which determine the way the individuals react to their environment

Self - Concept
Actual self concept Ideal Self Concept Life styles And Values Individuals pattern of Living

Model of Consumer Behaviour

Freuds Theory Psychological forces shaping peoples behaviour are largely unconscious and that person cannot fully understand his/her own motivation

MaslowsTheory
Self Actualization needs Esteem needs Social needs Safety needs Physiological needs

Herzbergs Theory
Factors causing satisfaction (Satisfiers) Factors causing dissatisfaction (Dissatisfiers)
The Absence of Dissatisfiers is alone not enough but the marketer should provide more satisfiers

Perception
How individual selects, organizes and interprets information Three Perceptual Process 1. Selective Attention Person cannot possibly attend to all of these stimuli most of it will be screened Selective Distortion Tendency to interpret information in a way that will fit our perception Selective Retention Retaining information that supports their attitudes and beliefs

Learning - Changes in the individual behavior arising from an experience Memory Short term Memory Temporary repositioning of Information Long term Memory Permanent repositioning of Information

Belief It is a descriptive thought that a person holds about some theme Attitude Persons enduring favorable or unfavorable evaluation, emotional feeling and action tendencies towards something

Factors to be decided on Purchase

Time Payment Place No. of Items

Business Market

Characteristics Fewer and larger Buyer Close buyer and Suppliers relations Professional Purchasing Several buying influence Derived Demand Inelastic demand Fluctuating Demand Geographically concentrated buyers

Buying Situations

Straight Rebuy Modified Rebuy New Task Buying

Problem Recognition General need Description and Pdt specification Supplier Search Proposal Solicitation Supplier Selection Order routine Specification Performance Review

Buying Centers
Initiator Who requests for purchase User Influencer Who influence buying decisions Decider who decides on the product specification Approver Authorize to buy or buyers

Institutional Markets

Consists of schools, hospitals,nursing homes etc. that must provide goods and services to people in their care These organizations are characterized by low budgets and captive clients

Government Markets

In most countries govt. organizations are the major buyer of goods/ services Required to submit bids and normally they award contracts to the lowest bidder Involves lot of paper work, bureaucracy, regulation, decision making delay, and frequent change of Policies