Understanding and Analyzing Retail Consumer

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Understanding and Analyzing Retail Consumer

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Consumer Buying Behavior

Consumer Buying Behaviorrefers to the buyingbehavior of final consumers (individuals & households)who buy goods and services for personal consumption.

Study consumer behavior to answer:

How do consumers respond to marketing efforts the

company might use?

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Types of Buying Decisions

Complex

BuyingBehavior

Dissonance-

Reducing Buying

Behavior

Variety-

SeekingBehavior

Habitual

Buying

Behavior

HighInvolvement

Significant

differencesbetweenbrands

Fewdifferences

between

brands

LowInvolvement

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The Buyer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior

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The Buyer Decis ion Process

Step 1. Need Recogn it ion

External Stimuli

TV advertising

Magazine ad

Radio slogan

Stimuli in the

environment

Internal Stimuli

Hunger

Thirst

A persons normalneeds

Need RecognitionDifference between an actual state and a desired state

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The Buyer Decision Process

Step 2. Information Search

Family, friends, neighborsMost influential source of

information

Advertising, salespeopleReceives most information

from these sources

Mass MediaConsumer-rating groups

Handling the productExamining the productUsing the product

Personal Sources

Commercial Sources

Public Sources

Experiential Sources

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Figure : Successive Sets Involved in Customer Decision

Making

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The Buyer Decis ion Process

Step 3. Evaluat ion of A lternat ives

Product A tt r ibutesEvaluation of Quality, Price, & Features

Degree of Impo rtanceWhich attributes matter most to me?

Brand BeliefsWhat do I believe about each available brand?

Total Product Satisfact ionBased on what Im looking for, how satisfied

would I be with each product?

Evaluat ion Procedu resChoosing a product (and brand) based on one

or more attributes.

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The Buyer Decision Process

Step 4. Purchase Decision

Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

Attitudes

of others

Unexpectedsituational

factors

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The Buyer Decis ion Process

Step 5. Post pu rchase Behavior

Consumers Expectations of

Products Performance

Dissatisfied

CustomerSatisfied

Customer!

Products Perceived

Performance

Cognitive Dissonance

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Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption

Gillette Mach3

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How would you expect the buying decisions

process to differ when shopping on the Internetcompared with shopping in the store ?