Topic 4: Consumer Behaviour

Week 2Week 2

Topic 2: Consumer Behaviour

Consumer Buying BehaviourBuying behaviour of individual, and household person who buys for household consumptionConsumer behaviour

Marketing OtherProduct EconomicPrice TechnologicalPlace PoliticalPromotion Cultural

Marketing OtherProduct EconomicPrice TechnologicalPlace PoliticalPromotion Cultural

Marketing and other Stimuli

Buyer’s characteristics Buyer decision process

Buyer’s characteristics Buyer decision process

Buyer’s Black box

Product choiceBrand choiceDealer ChoicePurchase timingPurchase amount

Product choiceBrand choiceDealer ChoicePurchase timingPurchase amount

Buyer Responses

Model of Buyer behaviour

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

Characteristics affecting consumer behaviour Culture

Marketer should spot cultural shift in order to discover new products that might be wanted.

 Subculture Many subcultures make up important market segments.

 Social class Marketers are interested in social class because people within a

given social class tend to exhibit similar buying behaviour.

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

Characteristics affecting consumer behaviour (cont.)

Reference group Membership group, reference group, aspirational group, opinion

leader Marketers trying to identify reference group and opinion leader.

Family Marketers are interested in the roles and the influence of the husband,

wife and children on the purchase of different product and services. Roles and status Age and life cycle stage

Markers often define their target market in terms of life cycle stage and develop appropriate product and marketing plan for each stage.

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

Characteristics affecting consumer behaviour (cont.)

Occupation Marketers try to find the occupational groups that have an above

average interest in their product and services.Economic situation

Marketers of income sensitive goods watch trends in personal income, savings and interest rates.

Lifestyle Pattern of living

Personality and self-conceptMotivation

Need (Biological and Psychological) Maslow’s hierarchy of needs

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

Maslow’s hierarchy of needs

Maslow’s hierarchy of needs

Characteristics affecting consumer behaviour (cont.)

Perception Selective attention, selective distortion, selective retention.

Learning Drives, stimuli, cues, responses, and reinforcement Need produce motivation, which leads to goal directed behaviour

resulting in need satisfaction. Marketers can build up demand for a product by associating it

with strong drives, using motivating cues, and providing positive reinforcement.

Beliefs and attitude

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Types of buying decision behaviour

Four types of buying behaviour

High involvement Low involvement

Significant differences between

brands

Complex buying behaviour

Variety-seeking buying behaviour

Few differences between brands

Dissonance-reducing buying behaviour

Habitual buying behaviour

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

Types of buying decision behaviour (cont.)

Complex buying Expensive, risky, purchased infrequently, highly self-expressive

 Dissonance Reducing buying behaviour Post-purchase dissonance After sales communication

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

Types of buying decision behaviour (cont.) Habitual buying behaviour

Low cost, frequently purchased Buying process involves brand beliefs formed by passive learning,

followed by purchase behaviour, which may or may not be followed by evaluation.

 Variety seeking buying behaviour Leader will encourage habitual buying behaviour Challenger should offer low price, coupon, free sample etc.

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

The buyer decision process

1. Need recognition Triggered by internal or external stimuli.

2. Information Search Heightened attention or active information search Personal source, commercial source, experiential source Commercial sources normally inform the buyer but personal sources

legitimize or evaluate products for the buyer. WOM source

3. Evaluation of alternatives

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

The buyer decision process (cont.) 4.Purchase decision

Two factors come between purchase intention and decision Attitude of others Unexpected situational factors

 5. Post-purchase behaviour Customer expectation vs. perceived performance Cognitive dissonance Satisfaction is important as sales come from two basic groups: new

customers and retained customers.

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

The buying decision process for new products

Adoption process The mental process through which an individual passes from

first hearing about an innovation to final adoption.

 Stages:

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

Adopter categorizationInnovatorsEarly adoptersEarly majorityLate majorityLaggards

Influence of product characteristics on the rate of adoption

Relative advantageCompatibilityComplexityDivisibilityCommunicability

Topic 2: Topic 2: Consumer BehaviourConsumer Behaviour

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