Buying Behavior- Intorduction

7/30/2019 Buying Behavior- Intorduction

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BUYING BEHAVIOR


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At the end of this presentation you will

be able to:

Understand the fundamentals of buying and

the behavior exhibited

Recall the characteristics affecting buying

behavior

Learn about the consumer decision making

process


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WHO IS A BUYER?

An entity which purchases goods and services

for either consumption or resale


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What is behavior?

The actions or reactions of a person or animal

in response to external or internal stimuli

- freedictionary.com


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What is buying behavior?

The decision processes and acts of people(buyers/resellers and consumers(individualand industrial) involved in buying and using

products and services.


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As mentioned earlier both individuals and

organisations buy goods and services.

The same can be differentiated as follows

INDIVIDUAL BUYING

FMCG

CONSUMER DURABLES

SEMI DURABLES

SERVICES

ORGANISATIONAL BUYING

CAPITAL GOODS

SERVICES FOR MAINTENANCE

CONSUMABLESSPARE PARTS


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FOCUS IS ON CONSUMER BUYING

BEHAVIOR

The decision processes and purchasing

activities of people who purchase products for

personal or household use and not for

business purposes


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The Nature of Consumer

Behavior and Decision Making

Factors important to understanding consumermarkets and consumer behavior: The size of the consumer market.

Changes in consumer shopping habits andpurchase decisions.

Emphasis on consumer-oriented marketing.

The design of effective marketing strategy.


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Characteristics Affecting Buying Behavior

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Cultural Factors

Buyers culture

Buyers subculture

Buyers social class

Social Factors

Reference groups

Family

Roles and status


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Personal Factors

Age and life-cycle stage

Occupation

Economic situation Lifestyle

Personality and self-

concept

Psychological Factors

Motivation

Perception

Learning Beliefs and attitudes


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Culture is the learned values, perceptions,

wants, and behavior from family and otherimportant institutions


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Subculture are groups of people within aculture with shared value systems based oncommon life experiences and situations

Hispanic

African American

Asian

Mature consumers

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Social classesare societys relativelypermanent and ordered divisions whose

members share similar values, interests,and behaviors

Social class is measured by a combination ofoccupation, income, education, wealth, and

other variables


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The major social classes

Upper class

Middle class

Working class

Lower class


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Social Factors

Groups

Membership groups have a direct influence and towhich a person belongs

Aspirational groups are groups to which an individual

wishes to belongReference groups are groups that form a comparison

or reference in forming attitudes or behavior


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Social Factors

Groups

Opinion leaders are people within a reference groupwith special skills, knowledge, personality, or other

characteristics that can exert social influence onothers

Buzz marketing enlists opinion leaders to spread

the word Social networking isa new form of buzz marketing

MySpace.com

Facebook.com


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Social Factors

Family is the most important consumer-buyingorganization in society

Social roles and status are the groups, family,

clubs, and organizations to which a personbelongs that can define role and social status


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Personal Factors

Personal characteristics

Age and life-cycle stage

Occupation

Economic situation Lifestyle

Personality and self-concept


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Personal Factors

Age and life-cycle stage RBC Royal Band stages:

Youthyounger than 18

Getting started18-35

Builders35-50 Accumulators50-60

Preserversover 60


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Personal Factors

Occupation affects the goods and services bought byconsumers

Economic situation includes trends in:

Personal income Savings

Interest rates

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Personal Factors

Lifestyle is a persons pattern of living asexpressed in his or her psychographics

Measures a consumers AIOs (activities, interests,

and opinions) to capture information about a

persons pattern of acting and interacting in the

environment


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Personal Factors

SRI Consultings Values and Lifestyle (VALS)typology

Classifies people according to how they

spend money and time

Primary motivations

Resources


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Personal Factors

Primary motivations Ideals

Achievement

Self-expression


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Personal Factors

Resources High resources

Innovators exhibit all primary motivations

Low resources

Survivors do not exhibit strong primary motivation


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Personal Factors

Personal i ty and Self-Concept

Personality refers to the uniquepsychological characteristics that lead toconsistent and lasting responses to theconsumers environment


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Personal Factors

Personal ity and Self-Concept

Brand personality refers to the specific mix ofhuman traits that may be attributed to aparticular brand

Sincerity

Excitement Competence

Sophistication

Ruggedness

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Personal Factors

Personal ity and Self-Concept

Self-concept refers to peoples possessions

that contribute to and reflect their

identities


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Motivation

Perception

Learning

Beliefs and attitudes


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Motivation

A motive is a need that is sufficiently pressingto direct the person to seek satisfaction

Motivation research refers to qualitative

research designed to probe consumershidden, subconscious motivations


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Abraham Maslows Hierarchy of Needs

People are driven by particular needs at particulartimes

Human needs are arranged in a hierarchy frommost pressing to least pressing

Psychological

Safety Social

Esteem

Self-actualization


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Perception is the process by which people select,organize, and interpret information to form a

meaningful picture of the world from three

perceptual processes

Selective attention Selective distortion

Selective retention


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Selective attention is the tendency for people to

screen out most of the information to which theyare exposed

Selective distortion is the tendency for people tointerpret information in a way that will supportwhat they already believe

Selective retention is the tendency to remembergood points made about a brand they favor and toforget good points about competing brands


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Learning is the changes in an individualsbehavior arising from experience andoccurs through interplay of:

Drives

Stimuli

Cues Responses

Reinforcement


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Beliefs and Atti tudes

Beliefis a descriptive thought that a personhas about something based on:

Knowledge

Opinion Faith


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Attitudesdescribe a persons relativelyconsistent evaluations, feelings, and

tendencies toward an object or idea

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Beliefs and Atti tudes


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Types of Buying Decision Behavior

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Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior Variety-seeking buying behavior


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Complex Buying Behavior

When consumers are highly motivated in a purchase

and perceive significant differences among brands

Purchasers are highly motivated when:

Product is expensive

Product is risky Product is purchased infrequently

Product is highly self-expressive


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Dissonance-reducing buying behavior occurswhen consumers are highly involved with anexpensive, infrequent, or risky purchase, but seelittle difference among brands

Post-purchase dissonanceoccurs when theconsumer notices certain disadvantages of theproduct purchased or hears favorable thingsabout a product not purchased


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Habitual buying behavioroccurs whenconsumers have low involvement and there

is little significant brand difference

Variety-seeking buying behavioroccurs whenconsumers have low involvement and there

are significant brand differences


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Habitual buying behavioroccurs whenconsumers have low involvement and there

is little significant brand difference

Variety-seeking buying behavioroccurs whenconsumers have low involvement and there

are significant brand differences


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Consumer Buying

Decision Process

A five-stage purchase decision process that

includes problem recognition, information

search, evaluation of alternatives, purchase,

and postpurchase evaluation


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INFLUENCERS


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THE FIRST STAGE- PROBLEM

RECOGNITION

I AS THE CONSUMER WANT TO BUY A PEN


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WHY DO I NEED A PEN?


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Yet as the marketer the following questions

can be raised and effort to find answers

through research

Who

What

When

Where

Why


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SO THE PROBLEM IS THAT THERE IS A GAP

BETWEEN MY CURRENT STATE AND DESIRED

STATE


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Step 2- information search

Internal

External


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Step 3- Evaluating alternatives

Will a sms work

Email?

What about using a pencil or any other writing

instrument


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Consideration Set

Evaluative Criteria

Framing Alternatives


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Stage four- purchase

When

How

Where

Who


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Stage five- post purchase behavior

Satisfaction

Cognitive Dissonance

JND


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QUERIES??

Buying Behavior- Intorduction

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