l Consumer Buying Process

Gahlot Institute of Gahlot Institute of Management Studies & Management Studies & ResearchResearch

MARKETING MANAGEMENT PROJECT

CONSUMER BUYING BEHAVIOUR

PRESENTED TO:PROF. DEEPTI ARORA

Team membersTeam membersAmit BhavsarMandar MuleShraddha RautKrishanaveni AmbatiRohan ThombareChetan KirtaneJanhavi JoshiBanti Raja RajakPradeep DeokarNadeem Tamboli

CONSUMER BUYING CONSUMER BUYING PROCESSPROCESS

contentscontents Introduction to consumer buying processBuyer-an enigmaTypes of buyersThe indian consumerWhat does a customer buy?Buyer motivationRoles in consumer buyingActual consumer buying processBuying situations Influence on consumer buyingTools to study buyer behaviourconclusion

INTRODUCTIONINTRODUCTION

What is Consumer Buying Process?

Why we need Consumer Buying Process?

BuyerBuyer - - An EnigmaAn Enigma

Buyer’s mind –a Black box Influence of Media especially

electronic media

ssss

stimulus

Company controlledProduct

PriceAdvertising

Displaydistribution

social

Word of mouthReference group

cConsumer

Mind(Black box)

Response

NN

Buy

No buy

Types of BuyersTypes of Buyers

2.Timid/Reserved/shy buyer

3.Silent buyer4. Price or quality conscious buyer.5. Suspicious buyer6. Clever/intelligent buyer7. Bargain buyer8. over-cautious buyer.9. Timid/reserved/ buyer10. Undecided buyer11. Argumentative buyer12. Rude/ ill-mannered buyer.13. Impatient buyer14. Slow-thinking buyer

1.Friendly buyer

Indian Consumers:-Indian Consumers:-Indian consumer come from different

social, cultural, religious and geographical background.

Impact of Internet on Indian Consumers.

Who uses Internet and for what ?Change in Consumer’s lifestyle and its

impact.

What Does the customer What Does the customer Buy?Buy?

After examining the different products/services, bought by a customer, we Categorize it into two groups viz:-

High involvement products

Low involvement products.

High involvement products have the following characteristics

High price Complex Features Large difference between alternatives High perceived Risk Reflect self-concept of buyers

Low involvement products:- Does not reflect buyers self-concept Alternative within the same product class are similar Frequent brand switching behaviour

Buyers MotivationsBuyers Motivations ECONOMIC FACTORS

PSYCHOLOGICAL FACTORS

SELFACTUALIZATION

ESTEEM

AFFILIATION

SECURITY NEEDS

BASIC NEEDS

• MASLOW’S HIERARCHY OF NEEDS THEORY

i. HERZBERG’S TWO FACTOR THEORY

ii. McCLELLAND’S THEORY OF ACHIEVEMENT MOTIVATION

a. MOTIVATION

b. LEARNING THEORYLearning: involves changes in an individual’s behaviour arising from experience.

E.g: Suppose you buy an IBM computer

c. PERCEPTIONSIs the process by which an individual selects, organizes, and interprets information inputs to create a meaning picture of the world.

Perceptual processes:

SELECTIVE ATTENTION SELECTIVE DISTORTION SELECTIVE RETENTION

SELECTIVE ATTENTION:It means that marketers have to work hard to

attract consumer’s notice.

Some real challenge for marketers: People are more likely to notice stimuli

that relate to a current need. E.g: hairfall problem.

People are more likely to notice stimuli that they anticipate. E.g: Marriage

People are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli. E.g: Discount offers

SELECTIVE DISTORTION:It’s the tendency to twist information into personal

meanings and interpret information in a way that will fit our preconceptions.

E.g: Advertisements – making a cutomer guess the objects or messages to come ( IDEA)

SELECTIVE RETENTION:Selective Retention explains why marketers use drama and repetition in sending messages to their target market.

E.g: Advertisements – making a customer guess the objects or messages to come ( IDEA).

d. Beliefs and AttitudesA belief is a descriptive thought that a person holds about something.These beliefs make up product and brand images, and people act on their images.One of the real challenge for the marketers to change such beliefs.E.g: Anne French – Kareena Kapoor

An attitude is a person’s enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea.E.g: National Fluid Milk Processor Education Program – “Where’s your mustache?”

ROLES IN CONSUMER ROLES IN CONSUMER DECISION - MAKINGDECISION - MAKING

1. INITIATOR

2. INFLUENCER

3. DECIDER

4. BUYER

5. USER

CONSUMER BUYING CONSUMER BUYING PROCESSPROCESS

→HIGH INVOLVEMENT PRODUCT

NEED RECOGNITION OR PROBLEM IDENTIFICATION

DEVELOPMENT OF DECISION CRITERIA

SEARCH FOR ALTERNATIVES

EVALUATION OF ALTERNATIVES

DECISION

VIDEO 1

→LOW INVOLVEMENT PRODUCT

PROBLEM / NEED RECOGNITION

EVALUATION OF ALTERNATIVES

DECISION

Video 2

THEORY OF COGNITIVE DISSONANCE

Leon festinger proposed this theoryPost purchase consumer behaviourDissonance gets heighted when: plenty of choices each alternative equally attractive buying situation is highpriced-high

risk situation the product reflects his/her self

concept

Buying Situations:-

Various factors that come into account while buying product are as follows:-

(a) Awareness about competing brand in a product group.

(b) Customer has a decision criteria.

(c) Customer is able to evaluate and decide on his choice.

Situations:- Routinized Response Behavior or Straight

Rebuy. Limited Problem Solving or Modified Rebuy Extensive Problem Solving or New Task

Influences on Buyer Influences on Buyer BehaviorBehavior

Buyer decisions are strongly influenced by certain variables such as

Cultural Influences Social influences Opinion Leadership Demographic influences Self concept Psychographic variables Lifestyle Personality

TOOLS TO STUDY BUYER TOOLS TO STUDY BUYER BEHAVIOUR BEHAVIOUR

It is important for the marketer to regularly study buyer behaviour. The different tools available to him or her are:-

Survey Projective techniques Focus group discussions

Why do we need to study consumer buying process???The very existence of

organizations/business companies is due to the existance of customers/consumers

Basic objective of the studying consumer behavior is that the firm needs to know who buys their product. How they buy? When and where they buy? Why they buy? How they respond to marketing stimuli

Thank you