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CUSTOMER BUYING BEHAVIOUR

ABSTRACT

customers make purchases in order to satisfy needs.The wealth of products and services

produced in a country make our economy strong.All the behaviour of human beings during thepurchase may be termed as "buyer behaviour".. In this article there is a view about birth of

buying ideas, what is buyer behaviour, How consumer buy, why consumer buy, types, Decision

process, Motives,conclusion.

INTRODUCTION

Consumer is the king and it is the consumer determines what a business is, therefore a soundmarketing programme start with a careful analysis of the habits, attitudes, motives and needs of

consumers. In particular a marketer should find answer to the following questions:

What are the products they buy?

Why they buy them?

How they buy them?

When they buy them ?

Where they buy them?

THE BIRTH OF BUYING IDEAS

Mr.A owns scooter. The scooter is causing dissatisfication because of some defects or troubles

in it. He decides to replace it with another scooter. He anticipates the idea of a trouble free and

dependable scooter. He decides not to buy a scooter of the same make, because ofdissatisfication and lack of confidence. Thus a thought seed about a new scooter is born in him,

the moment he thinks,"I must replace the scooter " the buying ideas come up. With the thoughtin his mind, he thinks of the benefits. And this leads to further thinking: what sort of a scooter

will give the benefits, he wants. The benefits make the desire. He may buy any one of many

makes of scooter, which can give the desired benefits. He makes enquiries and observe throughtalking to his friends. He reads advertisement about the new scooters. He chooses one with all


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the possible advantages and which is wholly dependable. Mr.A is a prospective customer to a

dealer.

WHAT IS BUYER BEHAVIOUR?

The wealth of products and services produced in a country make our economy strong. Almostall the products, which are available to buyers, have a number of alternative suppliers: substitute

products are available to consumers, who make decision to buy products. Therefore a seller most

of his time, seeks buyers and tries to please them. In order to be successful, a seller is concernedwith.

Who is the customer? What do consumers buy? When do consumers buy? How do consumers buy? From where do consumers buy?

Why do consumers buy?

A buyer makes a purchase of a particular product or a particular brand and this can be termed "

product buying motives" and the reason behind the purchase from a particular seller is "

patronage motives"

When a person gets his pay packet, and if he is educated ,sits down along with his wife and

prepares a family budget, by appropriating the amount to different needs. It may happen thatafter a trip to the market, they might have purchased some items, which are not in the budget,

and thus there arises a deviation from the budgeted items and expenditure. all the behaviour of

human beings during the purchase may be termed as "buyer behaviour".

HOW CONSUMER BUY

1. Need/Want/Desire is Recognized

In the first step the consumer has determined that for some reason he/she is not satisfied (i.e.,consumer's perceived actual condition) and wants to improve his/her situation (i.e., consumer's

perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell the

consumer that food or drink is needed. External factors can also trigger consumer's needs.Marketers are particularly good at this through advertising, in-store displays and even the

intentional use of scent (e.g., perfume counters).

2. Search for Information

Assuming consumers are motivated to satisfy his or her need, they will next undertake a searchfor information on possible solutions. The sources used to acquire this information may be as

simple as remembering information from past experience (i.e., memory) or the consumer may

expend considerable effort to locate information from outside sources (e.g., Internet search, talkwith others, etc.). How much effort the consumer directs toward searching depends on such


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factors as: the importance of satisfying the need, familiarity with available solutions, and the

amount of time available to search.

3. Evaluate Options

Consumers' search efforts may result in a set of options from which a choice can be made. Itshould be noted that there may be two levels to this stage. At level one the consumer may create

a set of possible solutions to their needs (i.e., product types) while at level two the consumer may

be evaluating particular products (i.e., brands) within each solution. For example, a consumerwho needs to replace a television has multiple solutions to choose from such as plasma, LCD and

CRT television.

4. Purchase

In many cases the solution chosen by the consumer is the same as the product whose evaluationis the highest. However, this may change when it is actually time to make the purchase. The

"intended" purchase may be altered at the time of purchase for many reasons such as: the productis out-of-stock, a competitor offers an incentive at the point-of-purchase (e.g., store salespersonmentions a competitor's offer), the customer lacks the necessary funds (e.g., credit card not

working), or members of the consumer's reference group take a negative view of the purchase

(e.g., friend is critical of purchase).

5. After-Purchase Evaluation

Once the consumer has made the purchase they are faced with an evaluation of the decision. If

the product performs below the consumer's expectation then he/she will re-evaluate satisfactionwith the decision, which at its extreme may result in the consumer returning the product while in

less extreme situations the consumer will retain the purchased item but may take a negative viewof the product. Such evaluations are more likely to occur in cases of expensive or highly

important purchases. To help ease the concerns consumers have with their purchase evaluation,

marketers need to be receptive and even encourage consumer contact. Customer service centersand follow-up market research are useful tools in helping to address purchasers' concerns.

Why Consumers Buy :

customers make purchases in order to satisfy needs. Some of these needs are basic and must be

filled by everyone on the planet (e.g., food, shelter) while others are not required for basicsurvival and vary depending on the person. It probably makes more sense to classify needs that

are not a necessity as wants or desires. In fact, in many countries where the standard of living is

very high, a large portion of the population's income is spent on wants and desires rather than onbasic needs.

For example, in planning for a family vacation the mother may make the hotel reservations butothers in the family may have input on the hotel choice. Similarly, a father may purchase snacks


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at the grocery store but his young child may be the one who selected it from the store shelf. So

understanding consumer purchase behavior involves not only understanding how decisions are

made but also understanding the dynamics that influence purchases.

TYPES OF CONSUMER PURCHASE BEHAVIOR

Consumers are faced with purchase decisions nearly every day. But not all decisions aretreated the same. Some decisions are more complex than others and thus require more effort by

the consumer. Other decisions are fairly routine and require little effort. In general, consumers

face four types of purchase decisions:

Minor New Purchasethese purchases represent something new to a consumer but inthe customer's mind is not a very important purchase in terms of need, money or otherreason (e.g., status within a group).

Minor Re-Purchasethese are the most routine of all purchases and often theconsumer returns to purchase the same product without giving much thought to other

product options (i.e., consumer is brand loyalty).

Major New Purchasethese purchases are the most difficult of all purchases becausethe product being purchased is important to the consumer but the consumer has little or

no previous experience making these decisions. The consumer's lack of confidence in

making this type of decision often (but not always) requires the consumer to engage in anextensive decision-making process..

Major Re-Purchase- these purchase decisions are also important to the consumer butthe consumer feels confident in making these decisions since they have previousexperience purchasing the product.

For marketers it is important to understand how consumers treat the purchase decisions theyface. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major

New Purchase), their marketing strategy may vary greatly from a company targeting customers

who view the purchase decision as routine. In fact, the same company may face both situationsat the same time; for some the product is new, while other customers see the purchase as routine.

The implication of buying behavior for marketers is that different buying situations require

different marketing efforts

Consumer Buying Decision Process

"Nothing is more difficult and therefore, more precious, than to be able to decide is quoted to

be the words of Napoleon. This is amply true in the case of consumer too. It is for this reason

that the marketers are bound to have a full knowledge of the consumerbuying decisionprocess.


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However it should be remembered that the actual act of purchasing is only one stage in the

process and the process is initiated at the several stages prior to the actual purchase. Secondly

even though we find that purchase is one of the final links in the chain of process, not alldecision processes lead to purchase. The individual consumer may terminate the process during

any stage. Finally not all consumer decisions always include all stages. Persons engaged in

extensive decision making usually employ all stages of this decision process. Where as thoseengaged in limited decisions making and routine response behaviour may omit some stages. Theconsumer decision process is composed of two parts, the process itself and the factors affecting

the process.

SURVEY BY THE MARKETING TEAM

A survey conductedby the marketing team of shoppers stop Ltd. Reveals the psychography of

the modern shopper.

Acordingly the survey classifies customers in to the four segments namely

Convenience Shoppers Value Shoppers Image Shoppers Experience Shoppers

Convenience shoppers for instance ,are people who consume relatively less amount of time

while shopping. Also they look out for the width and depth of the range they purchase andconduct their annual shopping at one shot.

Value Shoppers always hunt for value for money ; Prefer quality reassurance and benchmark

offerings among other related attributes.

Image Shoppers are fashion- conscious and look out for the latest trends and labels.

On the other hand , Experience Shoppers are attentive and prefer personalized services look out

for the right ambience, prefer giving personal advice on clothing at the time of purchase , andprefer not to buy at one sold.

MARKETING IMPLICATIONS OF CONSUMER'S DECISION PROCESS

It was during 1960's that a number of theories to explain the consumer s decision process

started appearing. The three leading theorists were Howard-sheth , Engel Kollat-Blackwell andNicosia. Since then a considerable research on the marketing implications of the process has

been developed and tested the applications of many elements of marketing.

Many of the marketing dtrategies and tactics will have to be developed in relation to

consumer attitudes. Marketing strategies ,if effectively used, will go a long way in initiating anddeveloping consumer attitudes in favour of the products.


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ECONOMIC FACTOR AFFECT THE BUYER'S BEHAVIOUR

1.Disposal personal income :

The economists made attempts to establish a relationship between income and spending.

Disposal personal income represents potential purchasing power that a buyer has. The change inincome has a direct relation on buying habits.

2.Size of family income :

The size of family and size of family income affect the spending and saving patterns.Generally large family spend more and short family spend less, in comparison.

3. Income expectations :

The expected income to receive in future has a direct relation with the buying behaviour. The

expectation of higher or lower income has a direct effect on spending plans.

4.Propensity to consume and to save :

This goes to the habit of spending or saving with the disposal income of buyers. If the buyers

give importance to present needs, then they dispose of their income. And buyers spend less ifthey give importance to future needs.

5. Liquidity of Fund :

The present buying plans are influenced greatly by liquidity of assets i.e., cash and assets

readily convertible into cash, eg bonds, bank balances etc.,

6. Consumer Credit :

" Buy now and pay later" plays its role effectively in the rapid growth of markets for car,

scooter, radio, furniture and the like.

Economic model suggests behavioural hypothsis :

Lower the price of the product, higher the sales. Lower the price of substitute products, lower the sales of this product

Higher the real income, higher the sales of the product. Higher the promotional expenses, higher the sales.

Internal influences of buyers

psychographics (lifestyle), personality, motivation, knowledge, attitudes,


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beliefs, and feelings. demographics,

consumer behaviour concern with consumer need consumer actions in the direction of satisfing

needs leads to his behaviour behaviour of every individuals depend on thinking process.

EXTERNAL INFLUENCES OF BUYERS

culture, sub-culture, Locality, royalty, ethnicity, family, social class,

reference groups, lifestyle, and market mix factors.

.CONCLUSION

Competing for the consumer is a never-ending challenge. This is due principally to the

uniqueness and competitiveness of each individual market, for they are all different and allrequire different approaches" . Knowledge of the buying motives of consumers is essential for a

marketer.The changes in the market are brought by the consumers.

REFERENCES

Consumer Behavior In Indian PerspectiveSuja NairHimalaya Publishers

Consumer BehaviourWalker

Modern marketing - - R.S.N Pillai, Bagavathi

References :

1. Consumer Behaviour & Marketing Action, Thomson India Edition, 6thEdition, 2006.2.

Consumer Behaviour & Marketing Research, Suja R Nair, Himalay Publishing House, 1st. Edition,2004.

3. Consumer Behaviour & Marketing Strategy, J Paul Peter, Jerry C Olson, 2nd. Edition, IRWIN, 1990.4. Consumer Behaviour : Basic Findings and Management Implications, G Zaltman and M

Wallendorf, John Wiley & Sons, 1983.

5. Consumer Behaviour in Marketing Strategy, John A Howard, Prentice Hall, 1989.6. Consumer Behaviour, David L Loudon & Albert J Della Bitta, TMGH, 4th. Edition, 2006.7. Consumer Behaviour, ICFAI University, May - 2005.


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8. Consumer Behaviour, James F Engel, Roger D Blackwell, Paul W Miniard, 8th. Edition, The DrydenPress, 1995.

9. Consumer Behaviour, Leon G. Schiffman & Leslie Lazar Kanuk, PHI - EEE, 9th. Edition, 2006.10.Consumer Behaviour, Roger D Blackwell, Paul W Miniard, & James F Engel, Thomson India

Edition, 10th

Edition, 2007.

11.Marketing Management - Planning, Implementation & Control, Global Perspective, IndianContext, V S Ramaswamy & S Namakumari, MacMillan India Ltd., 3rd. Edition, 2003.

12.Marketing Management, 12th. Edition, by Philip Kotler & Kevin Lane Keller.13.Marketing Management, Philip Kotler, PHI - EEE, 11th. Edition, 2003.14.Marketing Research, G C Beri, TMGH, 3rd. Edition, 2000.

Definitions :

Consumer Behaviour (or Buyer Behaviour) is broadly defined by various scholars & researchers

as :

1. It's the behaviour displayed by the consumers during the acquisition, consumption anddisposition of products, services, time and ideas by decision making units.

2. It is the body of knowledge which studies various aspects of purchase and consumption ofproducts and services by individuals with various social and psychological variables at play.

3. The behaviour that the consumers display in searching for, purchasing, using, evaluating anddisposing of products and services that they expect will satisfy their needs.

4.

The process and activities people engage in when searching for, selecting, purchasing, using,evaluating, and disposing of products and services so as to satisfy their needs and desires.

5. The activities directly involved in obtaining, consuming, and disposing of products and services,including the decision processes that precede and follow these actions.

6. The American Marketing Association (AMA) defines consumer behaviour as "The dynamicinteraction of cognition, behaviour & environmental events by which human beings conduct the

exchange aspect of their lives.

Meaning of post purchase behavior;

Post-purchase behavior involves all the consumers'

activities and the experiences that follow the purchase.Usually, after making a purchase, consumers experience


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post-purchase dissonance. In other words, they regrettheir purchase decision. The reasons for high post-

purchase dissonance can be attractiveness and

performance of forgone alternatives, difficult purchasedecision, large number of alternatives, etc.

A high level of post-purchase dissonance is negatively

related to the level of satisfaction the consumer draws outof product usage. While experiencing post-purchase

dissonance, consumers become acutely aware of the

marketers' communication. To reduce post-purchasedissonance, consumers may sometimes even return or

exchange the product.

Marketers, therefore, can use these opportunities to reduce consumers' risk perception by way ofgood return/exchange policies and reduce their post-purchase dissonance by messages targeted at

this segment of their consumers.

Consumers' retail store selection behavior depends on - store image Despite post-purchasedissonance, many consumers proceed with consumption of the product. How consumers use the

products is an important knowledge source for marketers, as they can offer better products and

reach more consumers based on these consumer usage patterns.

In some cases, however, consumers initially use the product but after a period of time fail to do

so. Marketers, therefore, should not consider a product purchased as a product consumed. A non-

used product is also more likely to affect the repurchase pattern of the consumers negatively.Consumers need to dispose off the products or packaging before, during, or after the use. The

issue of disposal is gaining considerable importance for marketers as it directly affects therepurchase pattern of the consumers.

As more and more products are consumed and disposed off, it is likely that repurchase will also

be more. Many a time, consumers cannot repurchase without disposing off the product first, dueto space and financial constraints. Thus, many marketers, especially retailers, are helping

consumers to dispose off their old products. This not only gives consumers a reason to

repurchase but also increases marketers' sales. The disposal options the consumers have are -keep the product, temporarily dispose off, or permanently dispose off.

Product use/consumption is followed by its evaluation, which may then lead to satisfaction

(perceived performance > minimum desired expectations); non-satisfaction (perceivedperformance = minimum desired expectations); or dissatisfaction (perceived performance

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