Consumer Buying Behaviour
Process
Dr. Poonam Madan
The Consumer Buying Decision
Process
How do consumers make
purchase decisions?
How do firms use this information
to develop new products and
marketing programs?
Model of
Consumer Behavior
Stimulus Response Model
Marketing and other stimuli enter the buyers black box
and produce certain choice / purchase responses.
Marketers must figure out
what is inside of the buyers
black box and how stimuli
are changed to responses.
Stimulus Respose Model
The starting point for understanding
consumer behavior is the stimulusresponse Model
The marketers task is to understand
what happens in the consumers
consciousness between the arrival of the
outside marketing stimuli and the
ultimate purchase decisions.
Model of
Consumer Behavior
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
6-5
A Model of Consumer
Behavior
Model of Buyer Behavior
Marketing and
Other Stimuli
Buyers Black Box
Marketing
Buyer Characteristics Product Choice
Buyer Decision Process Brand Choice
Product
Price
Place
Promotion
Other
Economic
Technological
Political
Cultural
Buyer Responses
Purchase Timing
Purchase Amount
Model of Consumer Behavior
Model of Consumer Behavior
Product
Price
Marketing
Marketing and
and
Other
Other Stimuli
Stimuli
Economic
Technological
Place
Political
Promotion
Cultural
Buyers
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Buyers
Buyers Black
Black Box
Box
Buyers
Buyers Response
Response
Characteristics
Affecting
Consumer
Behavior
Purchase
Timing
Purchase
Amount
Model of Consumer Behaviour
Activities engaged
in to attract buyers
IN
Kotler et al, 2006 chapter 6
Focus on this
TRANSFORM
OUT
The Consumer Decision Process
The CDP represents a road map of
consumers minds that marketers
and managers can use to help
guide product mix,
communications, and sales
strategies
Variables involved in
understanding consumer
behaviour
Stimulus ads, products, hungerpangs
Response physical/mental reaction to
the stimulus
Intervening variables mood, knowledge,
attitude, values, situations, etc.
Basic Model of Consumer Buying
Decision Process
According to Kotler and Armstrong, the
basic model of consumer decision making
process comprises three major
components, viz., marketing and other
stimuli (these act as influences), the
buyers black box (these are related to the
consumer) and the buyer responses (this
is the response part).
Model of
Consumer Behavior
Stimulus Response Model
Marketing and other stimuli enter the
buyers black box and produce certain
choice/purchase responses.
Marketers must figure out what is inside
of the buyers black box and how stimuli
are changed to responses.
Model of Buyer Behavior
Marketing and other stimuli
A consumer is confronted with a stimulus in the
environment. This stimulus could be of two kinds;
a) One that is presented by the marketer through the
marketing mix or the 4Ps, product, price, place and
promotion;
-product: attributes, features, appearance, packaging etc.
-price: cost, value, esteem (prestige)
-place: location and convenience, accessibility
-promotion: advertising, sales promotion, personal selling,
publicity, direct marketing.
b) The other that is presented by the environment, and
could be economic, technological, political and cultural.
Buyers black box:
The stimuli that is presented to the
consumer by the marketer and the
environment is then dealt with by the
buyers black box.
The buyers black box, comprises two sub
components, viz.,
the buyers characteristics and
the buyer decision process.
The buyers characteristics could be
personal,
psychological,
cultural and
social.
These characteristics affect the buying
decision process, which comprises five
steps:
1. Problem Recognition
2. Information Search
3. Alternative Evaluation
4. Purchase Decision
5. Post-purchase behavior
Buyer Decision Process
Purchas
e
Evaluation Decisio
Postpurchase
n
of
Behavior
Alternatives
Informatio
n
Search
Need
Recognitio
n
The Consumer Decision-Making
Process
Bill realizes that
Problem Recognition
Does this
he is fed up with
his puny b/w TV
Information Search
Bill talks to a
few of his friends
about a new TV
Evaluation of Alternatives
Bill goes shopping
to compare TVs
of different brands
Product Choice
Bill chooses one
model/brand for its
features and price
Post-purchase Evaluation
Bill takes the TV
home and becomes
a couch potato
process look
familiar?
How does it
differ for low
versus high
risk products?
Has anyone
done it
differently?
Which is the
most critical
stage?
Buyer responses:
While in the black box, the buyer also
takes a decision with respect to the
product, brand, dealer, timing and amount.
Our aim
Awareness
Interest
Action
Desire
Consumer Involvement in the Buying Decision
Influencer
Initiator
Decider
Buying Decision
User
Buyer