Understanding

Consumer
Buyer Behaviour

Chapter 04
CONSUMER BEHAVIOR
The study of the buying units and the
exchange process involved in acquiring,
consuming and disposing of goods,
services, experiences, and ideas.
Consumer researchers are interested not
only in how,why,where and when
customers buy but also in how they use
the goods and services after purchase and
how they dispose of goods once they no
longer have a use them.
CONSUMER VALUE

All the benefits derived from a total

product and all the cost of acquiring those
benefits.
The new marketing concept that creates
customer value through the entire
marketing process by combining a
customer orientation with total quality
management.
Delivering Customer Value Through Market- Driven Management
1. Create customer focus throughout the business.
2. Listen to the customer.
3. Define and nurture your distinctive competencies.
4. Define marketing as market intelligence.
5. Target customers precisely.
6. Manage for profitability.
7. Make customer value the guiding star.
8. Let the customer define quality.
9. Measure and manage customer expectations.
10. Build customer relationships and loyalty.
11. Define the business as a service business.
12. Commit to continuous improvement and innovations.
13. Manage culture along with strategy and structure.
14. Growth with partners and alliances.
15. Destroy marketing bureaucracy.
The Buyer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior
 The Buyer Decision Process
Step 1. Need Recognition

Need Recognition
Difference between an actual state and a desired state

Internal Stimuli External Stimuli

• Hunger • TV advertising

• Thirst • Magazine ad
• A person’s normal • Radio slogan
needs
•Stimuli in the
environment
The Buyer Decision Process
Step 2. Information Search

Personal Sources •Family, friends, neighbors

•Most influential source of
information

•Advertising, salespeople
Commercial Sources •Receives most information
from these sources

Public Sources •Mass Media

•Consumer-rating groups

•Handling the product

Experiential Sources •Examining the product
•Using the product
 The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features

Degree of Importance
Which attributes matter most to me?

Brand Beliefs
What do I believe about each available brand?

Total Product Satisfaction

Based on what I’m looking for, how satisfied
would I be with each product?

Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
The Buyer Decision Process
Step 4. Purchase Decision

Purchase Intention
Desire to buy the most preferred brand

Attitudes Unexpected
of others situational
factors

Purchase Decision
The Buyer Decision Process
Step 5. Post purchase Behavior

Consumer’s Expectations of
Product’s Performance

Product’s Perceived
Performance

Satisfied
Dissatisfied Customer
Customer!

Cognitive Dissonance
Buyer Decision Process for New
Products
New Products
◦ Good, service or idea that is perceived by
customers as new.

Stages in the Adoption Process

◦ Marketers should help consumers move through
these stages.
Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption
 Adoption of Innovations

Percentage of Adopters

Early Majority Late Majority

Innovators

Early Laggards
34% 34%
Adopters

2.5% 13.5% 16%

Time of Adoption
Early Late
Influences on the Rate of Adoption
of New Products

Communicability Relative Advantage

Can results be easily Is the innovation
observed or described superior to existing
to others? products?

Product
Divisibility Characteristics Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or use?
Buyer Decision Process for New
Products
Individual Differences in Innovativeness
◦ Consumers can be classified into five adopter
categories, each of which behaves differently toward
new products.
Product Characteristics and Adoption
◦ Five product characteristics influence the adoption
rate.
 Buyer Decision Process for New
Products

Product Characteristics
Relative Advantage Complexity
Compatibility Divisibility

Communicability
Buyer Decision Process for New
Products

International Consumer Behavior

◦ Values, attitudes and behaviors differ greatly in other
countries.
◦ Physical differences exist which require changes in
the marketing mix.
◦ Customs vary from country to country.
◦ Marketers must decide the degree to which they will
adapt their marketing efforts.
 Social and cultural influences on
buying behavior
Consumer socialization is the process that
enables people to acquire the knowledge, skills
and attitudes necessary to perform as
consumers.
Cultural values and norms are transmitted to the
individual through direct or indirect interaction
with other members of the society.
Direct socialization- friends, family , peers
Indirect socialization-media, business effort,
government.
 Factors Affecting Consumer Behavior:
Culture
Most basic cause of a person's wants and
behavior.
Values
Perceptions

Subculture Social Class

• Groups of people with shared value • People within a social class
systems based on common life tend to exhibit similar buying
experiences. behavior.
• Hispanic Consumers • Occupation
• African American Consumers • Income
• Asian American Consumers • Education
• Mature Consumers • Wealth
 Factors Affecting Consumer Behavior:
Social

Groups
• Membership
• Reference

Family
• Husband, wife, kids Social Factors
• Influencer, buyer, user

Roles and Status

 Factors Affecting Consumer Behavior:
Personal
Personal Influences

Age and Family Life Cycle

Occupation
Stage

Economic Situation Personality & Self-Concept

Lifestyle Identification

Activities Opinions

Interests
 Factors Affecting Consumer Behavior:
Psychological

Motivation

Beliefs and Psychological

Factors Perception
Attitudes

Learning
Maslow’s Hierarchy of Needs

Self
Actualization
(Self-development)

Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
Types of Buying Decisions

High Low
Involvement Involvement

Significant Complex Variety-

differences
between Buying Seeking
brands Behavior Behavior

Few
differences
Dissonance- Habitual
between Reducing Buying Buying
brands Behavior Behavior
Consumers and Products
Products that are the object of a purchase decision
have significant influence on the buying process.
The classification of a good or service affects the
amount time and effort expended by a consumer in
reaching a purchasing decision.
If the product is complex, expensive, unfamiliar,
has a high element of risk associated with it the
purchase decision will be more expensive.
Purchase are influenced by the relationship
between consumers’ life roles and the products
they need to fulfill their responsibilities in each
role.
Consumers and Situations
 The purchase situation is another important influence on
the consumer buying process. There are several ways of
categorizing situations include the communication
situation, the purchase situation and the usage situation.
The disposition situation may also be included
 The communication situation determines whether and
how consumers hear or listen to marketing
communication.
 People respond differently to marketing communication
based on their moods, physical states, whether they are
alone or with someone and how much “clutter”
surrounds the message.
 The most frequently used classification of situational
influences on consumer buying behavior are physical
surroundings, social surroundings time and temporal
perspectives, task definitions and antecedent.
Relationship Marketing
Building long-term buyer seller
relationship by understanding and
fulfilling customers needs better than
competitors do.

Developing continuous buyer-seller

relationships consistent with the intent of
the new marketing concept and market-
driven management.
Buyer-seller relationships
Marketing exchanges can occur between a wide
variety of buyer and seller.
Buyers in consumer markets are numerous
posing special problems for the seller who must
determine how to create a lasting basis for a
relationship with each and every one.
Sellers must have a through understanding of
their markets to create value and deliver
satisfaction to customer.
Thank You