Serial No 3
Chapter 7
Analysing Consumer Markets and
Buyer Behaviour
Consumer Buying Behavior
• Consumer Buying Behavior refers to the
buying behavior 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?”
Characteristics Affecting
Consumer Behavior
Culture
Social
Personal
Psychological
Buyer
Buyer
Culture factors
• Culture factors further consists of :
– Culture, Subculture, and social classes
• Culture: culture is the fundamental determinant of a person’s
wants and behaviour. The growing child acquires a set of values,
perceptions, preferences and behaviour through his family and
other key institutions.
– For example a child growing up in USA will have a different culture
than a child growing up in Afghanistan.
• Subculture: that provide more specific identification and
socialization for their members. Subculture include nationalities,
religions, racial groups, and geographic region.
• Social classes: Lower-lower, upper- lower, working class, middle
class.
• Social factors:
– Reference group, Family, role and status
• Reference group: are all the groups that have a direct (face-to-face) or
indirect influence on their attitude and behaviour.
– Groups having direct influence are called Membership group.
– Membership group consists of
• Primary group: such as family, friends, neighbours, and co-workers.
• Secondary group: such as religious, professional, and trade-union groups.
– Groups having indirect influence are called Aspirational groups and
dissociative groups
• Aspirational Groups: are those a person hopes to join
• Dissociative groups: are those whose values or behaviour an
individual rejects.
• Social factors cont....
• Family: joint family system versus individual family system
• Roles and status:
– A role consists of the activities a person is expected to
perform. Each role carries a status.
• Such as a senior vice president of marketing has more status than
a sales manager, and a sales manager has more status than an
office clerk.
• People choose products that reflect and communicate their role
and actual or desired status in society.
• Personal Factor: a buyer’s decisions are also
influenced by personal characteristics. These
include the following:
– Buyer’s age and stage in the life cycle
– Occupation and economic circumstances
– Personality and self concept
– Life style and values
1 Buyer’s age and stage in the life cycle
– People buy different goods and services over a life time. Taste in food,
clothes, furniture, and recreation is often age related.
– Consumption is shaped by the family life cycle.
2 Occupation and economic circumstances:
– Occupation also influences consumption patterns.
• Such as a blue collar will buy work clothes, work shoes, and lunch boxes. A
company president will buy dress suits, air travel.
– Product choice is greatly affected by economic circumstances:
• Such as luxury goods makers, Gucci and blackberry can be vulnerable to
an economic downturn. If economic indicators point to a recession,
marketers can take steps to redesign, reposition, and re-price their
product.
3 Personality : each person has personality characteristics that influence
his or her buying behaviour.
– Personality : a set of distinguishing human psychological traits that
lead to relatively consistent and enduring responses to
environmental stimuli (including buying behaviour)
4 Life style and Values:
– Life style: is a person’s pattern of living in the world as expressed in
activities, interests and opinions.
– Values: . It normally refers to a person's perception of right and
wrong. It defines the things that are most important to a person and
thus shaping what is the norm in every society, define values.
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological
Motivation
Motivation
Beliefs
Beliefs and
and Psychological
Factors PPerception
erception
Attitudes
Attitudes
Learning
Learning
Motivation
• We all have many needs at any given time. Some needs are
• biogenic; they arise from physiological states of tension such
as hunger, thirst, or discomfort. Other needs are
• psychogenic; they arise from psychological states of tension
such as the need for recognition, esteem, or belonging.
• A need becomes a motive when it is aroused to a sufficient
level of intensity to drive us to act.
Perception
• Perception is the process by which we select, organize, and
interpret information inputs to create a meaningful picture of
the world.
• It depends not only on physical stimuli, but also on the
stimuli’s relationship to the surrounding environment and on
conditions within each of us.
• One person might perceive a fast-talking salesperson as
aggressive and insincere; another, as intelligent and helpful.
• Each will respond to the salesperson differently.
Learning
• When we act, we learn.
• Learning induces changes in our behavior arising from
experience.
• Most human behavior is learned, although much
learning is incidental.
• Learning theorists believe learning is produced through
the interplay of drives, stimuli, cues, and
reinforcement.
• For example: One used HP laptop and happy from that
may assume that HP printers are also good.
An attitude is an expression of favor or disfavor toward a person, place,
thing, or event
The Buyer Decision Process
Need
Need Recognition
Recognition
Information
Information Search
Search
Evaluation
Evaluation of
of Alternatives
Alternatives
Purchase
Purchase Decision
Decision
Post
Post purchase
purchase Behavior
Behavior
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition
Need
Need Recognition
Recognition
Difference
Differencebetween
betweenan
an actual
actualstate
stateand
andaadesired
desiredstate
state
Internal
Internal Stimuli
Stimuli External
External Stimuli
Stimuli
•• Hunger
Hunger ••TV
TVadvertising
advertising
••Thirst ••Magazine
Thirst Magazinead
ad
••AAperson’s
person’snormal
normal ••Radio
needs Radioslogan
slogan
needs
••Stimuli
Stimuliin
inthe
the
environment
environment
The Buyer Decision Process
Step 2. Information Search
Personal •Family, friends, neighbors
Personal Sources
Sources •Most influential source of
information
Commercial •Advertising, salespeople
Commercial Sources
Sources •Receives most information
from these sources
Public •Mass Media
Public Sources
Sources •Consumer-rating groups
•Handling the product
Experiential
Experiential Sources
Sources •Examining the product
•Using the product
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
ProductAttributes
Attributes
Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features
Degree
Degreeof
ofImportance
Importance
Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?
Brand
BrandBeliefs
Beliefs
What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?
Total
TotalProduct
ProductSatisfaction
Satisfaction
Based
Basedon
onwhat
whatI’m
I’mlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?
Evaluation
EvaluationProcedures
Procedures
Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.
The Buyer Decision Process
Step 4. Purchase Decision
Purchase
Purchase Intention
Intention
Desire
Desire to
to buy
buy the
the most
most preferred
preferred brand
brand
Purchase
Purchase Decision
Decision
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 5.
5. Post
Post purchase
purchase Behavior
Behavior
Consumer’s
Consumer’s Expectations
Expectations of
of
Product’s
Product’s Performance
Performance
Product’s Perceived
Performance
Satisfied
Satisfied Dissatisfied
Dissatisfied
Customer!
Customer! Customer
Customer