Consumer Buying

Behavior
Why do we need to study
Consumer Behaviour?

Because no longer can we take

the customer/consumer for
granted.
Failure rates of new products
introduced
Out of 11000 new products
introduced by 77 companies, only 56%
are present 5 years later.
Only 8% of new product concepts
offered by 112 leading companies
reached the market. Out of that 83%
failed to meet marketing objectives.
 All managers must become
astute analysts of consumer
motivation and behaviour
 Can Marketing be
standardised?

No.
Because cross - cultural styles,
habits, tastes, prevents such
standardisation.
Language Problems

“Please leave your values at the desk” - Paris hotel

“Drop your trousers here for best results” -
Bangkok laundry
“The manager has personally passed all water served
here” - Acapulco restaurant
“Because of the impropriety of entertaining guests
of the opposite sex in the bedroom, it is suggested
that the lobby be used for the purpose.” - Zurich
hotel
Ladies are requested not to have children in the
bar.”- Norway bar
Consumer Buying Decision Process

Problem Information Evaluation of

Recognition Search Alternatives

Purchase Post-Purchase
Decision Evaluation
Types of Buying Behavior

Routine Response
Limited Decision
Extension Decision
Impulse Buying
Factors Influencing
Consumer Behavior
Personal
Psychological
Social
Cultural
Personal Factors

Age
Life-Cycle Stage
Stages in Family Life-Cycle

1. Single
2. Newly Married Couples
3. Full Nest I
4. Full Nest II
5. Full Nest III
6. Empty Nest I
7. Empty Nest II
8. Solitary Survivor
9. Solitary Survivor, Retired
Personal Factors

Age
Life-Cycle Stage
Occupation
Economic Circumstances
Life Style
Psychological Factors

“Wants”
Based on a want or desire to
have something. Not a
necessity.
Psychological Factors

Motivation:
Freud
Maslow
Hierarchy of Needs
Psychological Factors
Motivation
Perception
The process by which an individual
selects, organizes, and interprets inputs
to create a meaningful picture of the
world.
Selective Exposure
Selective Distortion
Selective Retention
Psychological Factors

Motivation
Perception
Learning
Changes in an individual’s behavior
arising form experience
Psychological Factors

Motivation
Perception
Learning
Beliefs
Descriptive thoughts that a person holds
about something
Psychological Factors
Motivation
Perception
Learning
Beliefs
Attitudes
Enduring favorable or unfavorable
cognitive evaluations emotional feelings
and action tendencies
Functional Factors

“Needs”
Need over wants. Delivers to a
real “need” to have something.
Social Class

Relatively homogenous, enduring

divisions in a society,
hierarchically ordered with
members sharing similar values,
interests, and behaviors.
Family Influence on Buying
Behavior

Husband-Dominant
Wife-Dominant
Equal
Culture & Subcultures

Cultures
The accumulation of values, knowledge, beliefs,
customs, objects, and concepts that a society
uses to cope with its environment
Subcultures
Groups of individuals who have similar value and
behavior patterns within the group but differ
from those in other groups.
Examples of Buying Motives:
Psychological or Functional?
A senior wants to impress his
date at the prom .
His primary motive is …?

Psychological
Examples of Buying Motives:
Psychological or Functional?
A girl wants to remember her
grandmother on her birthday.
Her primary motive is…?

Psychological
Examples of Buying Motives:
Psychological or Functional?
A homemaker needs a new washing
machine and has had good
experiences with Sears.
Her primary motive is …?

Functional
Examples of Buying Motives:
Psychological or Functional?
A teacher wants to buy a practical
car to be used for family
transportation.
Her/His primary motive is …?

Functional
Examples of Buying Motives:
Psychological or Functional?
A career woman always buys Liz
Claiborne clothes.
Her primary motive is…?

Psychological
Examples of Buying Motives:
Psychological or Functional?
An overweight 40 year old man wants
to loose weight so that he can reduce
his blood pressure.
His primary motive is…?

Functional
Examples of Buying Motives:
Psychological or Functional?
A homeowner needs to mow their
lawn.
Their primary motive is…?

Functional
Consumer Buying Behavior Competency
Functional Psychological
Motive Motive
The price is 40
cents off the
regular price.
It never needs
ironing.

Diamonds are
forever.
Serving you since
1971.

Ninety-day
warranty.
Consumer Buying Behavior Competency
Functional Psychological
Motive Motive
Running shoe with
built-in arch.
It’s all the rage—
colored action wear
and style.
Wheaties—the
breakfast of
champions!
Steel-belted radial
tires warranted for
40,000 miles
A watch—a gift she
will treasure
always.
 Consumer Behavior Model
(Stages of Buying Process)

 Passive Information Gathering -

Receiving and processing of
information regarding existence,
quality, services, stores,
convenience, pricing, advertising
that consumer might consider in
making a purchase
 Consumer Behavior Model
(Stages of Buying Process)
 Need Recognition - Consumer
recognizes a need or desire for
the product or service. When
the need is high relative to
barriers to resolving need there
is a shop trigger event
Consumer Behavior Model
(Stages of Buying Process)
 Active Information
Gathering -
Comparison of
different products,
brands, colors,
capabilities, etc.
Consumer Behavior Model
(Stages of Buying Process)
 Purchase Decision -
Two decisions. First is
buy or no-buy. If
decision is to buy then
timing of purchase is
second decision.
Consumer Behavior Model
(Stages of Buying Process)
 Transaction - Final
negotiation as to
Price, Store, Credit or
Cash, etc. An
opportunity for
retailers to market
“extras”.
Consumer Behavior Model
(Stages of Buying Process)
 Post Purchase
Evaluation - Did the
product and retail
experience meet the
consumer’s
expectations
Consumer Buying
Behavior