Consumer Buying Behavior

By : Prof. Deepa Rohit

Reference : Kotler
Different buying situations

Prof. Deepa Rohit, LLIM 2

 Consumer Buying Behavior

 Consumer behavior is the study of how

individuals, groups, and organizations buy,
use and dispose off goods, services,
ideas or experiences to satisfy their needs
and wants

Prof. Deepa Rohit, LLIM 3

Buying Roles
 Initiator
 Influencer
 Decider
 Buyer
 User

Prof. Deepa Rohit, LLIM 4

 Consumer
as an individual
Marketing
stimuli

Consumer in
a social setting Situational
Factors

Prof. Deepa Rohit, LLIM 5

 Model of Consumer Buying Behaviour

Consumer Psychology

Motivation
Perception
Learning
Memory Purchase
Marketing Buying
Other Stimuli Decision
Stimuli Decision Process
Product Choice
Products & Economic Problem Recognition Brand Choice
services Technological Information search Dealer Choice
Price Political Evaluation of alternatives Purchase Amount
Distribution Cultural Purchase decision Purchase Timing
Communication Post purchase decision Payment methods
Consumer
Characteristics

Cultural
Social
6
Personal Prof. Deepa Rohit, LLIM
 Psychological
Factors

Consumer
Characteristics

Prof. Deepa Rohit, LLIM 7

CONSUMER CHARACTERISTICS
• Cultural
•Social

•Personal

Prof. Deepa Rohit, LLIM 8

 Cultural Factors
 Culture, sub-culture and social class are major influencers
 Based on values, perceptions and preferences
 Indian Culture versus American
 Subculture – nationality, religion, geographic region
 Social stratification
 Caste
 Social Class
 Socio-Economic Class (SEC) – Education and Occupation
 A1, A2, B1, B2, C, D, E1, E2

Prof. Deepa Rohit, LLIM 9

 Social Factors
 Reference groups
 Membership groups,
 Primary groups
 Secondary groups
 Aspirational group
 Dissociative groups
 Opinion Leader
 Family
 Family of orientation
 Family of procreation
 Roles and Status
Prof. Deepa Rohit, LLIM 10
 Personal Factors
 Age and Stage in Life Cycle
 Occupation and Economic Circumstances
 Personality and self-respect
 Lifestyle
 Money constrained or time constraints
 Values

Prof. Deepa Rohit, LLIM 11

KEY PSYCHOLOGICAL PROCESSES

Motivation
Perception
Learning
Memory

Prof. Deepa Rohit, LLIM 12

 Motivation
 Motivation is the driving force
 that activates behaviour

 Provides purpose

 Gives direction to a particular behaviour

 It answers the question of ‘Why” consumers

engage in specific behaviour

Prof. Deepa Rohit, LLIM 13

Basic Motivation Process
DRIVES GOALS
NEEDS
(Motives) (Incentives)
(Desires or Wants )

1. Need is a felt deprivation of physiological or psychological well

being
2. When an individual recognizes a need, he is driven by a desire
to fulfill the need
3. Hence drives are directed at fulfilling the needs
4. Drives are action oriented and provide an energizing thrust
towards reaching a goal.
5. Goals are the instruments used to induce people to follow a
desired course of action.
6. Once goal is attained, the drive is cut off
Prof. Deepa Rohit, LLIM 14
Prof. Deepa Rohit, LLIM 15
Prof. Deepa Rohit, LLIM 16
 Perception
 It is defined as the process by which an
individual selects, organizes and interprets
stimuli into a meaningful and coherent
picture of the world
 “How we see the world around us”

Prof. Deepa Rohit, LLIM 17

 Learning
 It’s a process by which individuals acquire
knowledge and experiences from different
sources which they apply in future for related
events

 Learning is any change in the content or

organization of long-term memory or behaviour
and is the result of information processing

Prof. Deepa Rohit, LLIM 18

 Buying Decision Process
1. Problem Recognition
2. Information search
3. Evaluation of alternatives
1. Satisfaction of need
2. Product solution
3. Bundle of attributes for delivering benefits

4. Purchase decision
5. Post purchase behavior

Prof. Deepa Rohit, LLIM 19

OTHER THEORIES OF
CONSUMER BEHAVIOUR

Prof. Deepa Rohit, LLIM 20

Level of involvement
 High – high price, complex features, large
differences between alternatives, High
perceived risks, reflect self-concept of buyer
 Low – frequent brand switching behaviour,
alternatives within the same product class are
similar

Prof. Deepa Rohit, LLIM 21

Tools to Study Consumer
Behaviour
 Surveys
 Projective Techniques
 Focus group discussions

Prof. Deepa Rohit, LLIM 22

Organisational Buying
Behaviour
 Meaning
 Organizational buying as the decision-making
process by which formal organizations establish the
need for purchased products and services and
identify evaluate and choose among alternative
brands and suppliers

Prof. Deepa Rohit, LLIM 24

 Characteristics
 Fewer, larger buyers
 Close supplier-customer
relationships
 Professional purchasing
 Multiple buying
influences
 Direct purchasing
 Multiple sales calls
 Derived demand
 Inelastic demand
 Fluctuating demand
 Geographically
concentrated buyers

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Buying situations
 Straight Rebuy
 Modified rebuy
 New task

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 Participants in Buying Process
 The buying Center
 Initiators
 Users
 Influencers
 Deciders
 Approvers
 Buyers
 Gatekeepers

Prof. Deepa Rohit, LLIM 27

 Purchasing process
1. Problem recognition
2. General need description and product specification
3. Supplier search
 E-procurement
4. Proposal solicitation
5. Supplier selection
 Price , solution , number of suppliers
6. Order-routine specification
7. Performance review

Prof. Deepa Rohit, LLIM 28