20131125 buyer behavior iba mba48 d

Buyer Behavior

Session 4: Psychological and Social Factors

Zeeshan Kingshuk Huq

Guest Faculty

zeeshan.huq@gmail.com

2 11/25/13/ZKH

Questions that we shall look answers for

§  Why consumers make the purchases they make

§  What factors influence consumer purchase? What are their choice criteria?

§  Why people behave as they do

§  What are the mental processes involved

§  Who buys

§  When do they buy

§  Where do they buy from

§  How does a buyer react to a marketing strategy / campaign

3 11/25/13/ZKH

PSYCHOLOGICAL ASPECTS

4 11/25/13/ZKH

5 11/25/13/ZKH

Four Key Psychological Influencers

§  Motivation

§  Perception

§  Learning, attitudes and beliefs

§  Buying situation

6 11/25/13/ZKH

Motivation

§  We are human, and motives are complex  Your daughter and you will have two different motives in

going to Bashundhora shopping mall §  Underlying motive vis-à-vis stated motives à often

different  Why do people buy Cartier watch?

-  Accurate Time? -  Status? -  Investment?

§  How can we explain the ‘need’s behind our motivations  Maslow’s Hierarchy of Needs theory

7 11/25/13/ZKH

Maslow’s Hierarchy of Needs

§  Applies to all – purchaser, non purchaser, any human

§  Humans are motivated to satisfy our needs

§  There is an arranged hierarchy by which we seek to satisfy our needs

§  Once one level of satisfied, we move to the next level

§  Human beings will usually never end of any ‘need’  Explains affluent markets having consumer / retail growth

8 11/25/13/ZKH

Maslow’s Hierarchy of Needs

Self actualization

Esteem

Social

Security

Physiological

9 11/25/13/ZKH

Perception

§  The way an individual perceives an external stimuli will influence his/her reaction

§  Causes for difference in perception  Selective Attention à only filter a few from the thousands

of stimuli we encounter with  Selective Distortion à we adjust perception to match

current mind set  Selective Retention à we do not remember everything,

and we remember things confirming to our beliefs and/or attitude (and also things which starkly contradicts!)

§  Marketers need to know the way people receive and perceive stimuli

10 11/25/13/ZKH

Learning, attitudes and beliefs

§  Learning causes changes in long term and changes in how information is processed

§  3 types of Learning:  Conditional Learning à reinforcement is necessary for

individuals to develop attitudes and beliefs  Social Learning à learning from behavior of others  Cognitive Learning à use of power of reasoning to

develop attitudes and/or beliefs (important for high involvement purchase)

§  We need to understand how buyer will ‘learn’ à helps us design marketing strategy accordingly

11 11/25/13/ZKH

Addressing various psychological needs of buyers

§  Case: PVH

12 11/25/13/ZKH

SOCIAL FACTORS

13 11/25/13/ZKH

Social Factors that influence Buyer Behavior

§  Culture

§  Social class  Not necessarily

relevant to income  Can vary from country

to country §  Reference groups

 Formal as well as informal

 Own as well as non-relevant

§  Family  Nuclear  Extended  Alternative

§  Personal influence  Age  Occupation  Family Life Cycle  Lifestyle

14 11/25/13/ZKH

15 11/25/13/ZKH

16 11/25/13/ZKH

17 11/25/13/ZKH

18 11/25/13/ZKH

19 11/25/13/ZKH

GROUP ASSIGNMENT

Retail / Consumer local brand

-  Choose a brand that is currently at a lower level of ‘need’

-  Choose a marketing / positioning based on higher-need