Consumer behavior

Marketer's success in influencing purchase behavior depends in large part on how well they understand consumer behavior

Consumer Behavior
The process by which a person decides what, when, where, how, how much and how often to buy products and services.

Consumer Behavior-Key topics BehaviorStimulus-Response model of Buyer Behavior Factors influencing Consumer Buying Process Choice criteria Buying centre-5 Roles Buyer Decision Making Process Stages of Adopting to a New product

Stimulus-Response model of Buyer Behavior

FACTORS INFLUENCING CONSUMER BUYING PROCESS

CULTURE
Culture
Subculture
x Social Class
 Elite /Rich  Upper Class  Upper Middle  Middle Class  Lower Middle  Lower Class

SOCIAL
Reference group
Opinion leaders

Roles and status Family Decision Making( Buying centre-5 Roles )

The initiator The influencer The decider The buyer The user

PERSONAL
PERSONAL INFLUENCES
Age & Lifecycle stage Occupation Economic Situation Personality & Self-concept

LIFESTYLE IDENTIFICATION
Activities Interests Opinion

PSYCHOLOGICAL
Motivation Beliefs & Attitude Perception

Learning

Choice Criteria
Various attributes and benefits a consumer uses when evaluating products and services Technical-eg. Reliability Economic-eg. Price Social-eg. Status Personal-eg. Self-image

Buyer Decision making Process

Five Steps

PROBLEM RECOGNITION

Motivation

INFORMATION SEARCH

Perception

ALTERNATIVE EVALUATION

Attitude Formation

PURCHASE DECISION

Integration

POST PURCHASE EVALUATION

Learning

PROBLEM RECOGNITION
Out of stock Dissatisfaction New needs/ wants Related products/ purchases Market induced problem recognition New products

INFORMATION SEARCH
Personal sources Marketer-controlled sources Public sources Personal experience

ALTERNATIVE EVALUATION
Evaluation criterion:  Functional consequences  Psychological consequences

PURCHASE DECISION
Purchase intention What to buy When to buy Where to buy How much money to spend Actual Purchase

POSTPURCHASE EVALUATION
Is important because the feedback acquired

from actual use of the product will influence the likelihood of future purchases

Stages of Adopting to a New product

Awareness Interest Evaluation Trial Adoption

Conclusion
Understanding Consumer-behavior is a prerequisite of successful marketing. It influences the choice of target market and the nature of marketing mix developed to serve it.