Consumer Buying Behavior3

Consumer Buying Behavior

Prof. Ahimpreet JurryMarketing Management

PGP/SS/2010-12//SEM1

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 hotelLadies are requested not to have children in the bar.”- Norway bar

Consumer Buying Decision Process

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-PurchaseEvaluation

Types of Buying Behavior

Routine ResponseLimited Decision Extension DecisionImpulse Buying

Factors Influencing Consumer Behavior

PersonalPsychologicalSocialCultural

Personal Factors

AgeLife-Cycle Stage

Stages in Family Life-Cycle

1. Single2. Newly Married Couples3. Full Nest I4. Full Nest II5. Full Nest III6. Empty Nest I7. Empty Nest II8. Solitary Survivor9. Solitary Survivor, Retired

Personal Factors

AgeLife-Cycle StageOccupationEconomic CircumstancesLife Style

Psychological Factors

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

Psychological Factors

Motivation:FreudMaslow

Hierarchy of Needs

Psychological Factors

MotivationPerceptionPerception

The process by which an individual selects, organizes, and interprets inputs to create a meaningful picture of the world.

Selective ExposureSelective DistortionSelective Retention

Psychological Factors

MotivationPerception

LearningLearningChanges in an individual’s behavior arising form experience

Psychological Factors

MotivationPerception Learning

BeliefsBeliefsDescriptive thoughts that a person holds about something

Psychological Factors

MotivationPerceptionLearningBeliefsAttitudesAttitudes

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-DominantWife-DominantEqual

Culture & Subcultures

CulturesThe accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment

SubculturesGroups 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 Motive

Psychological 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 Motive

Psychological 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