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7/30/2019 Buying Behavior- Intorduction
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BUYING BEHAVIOR
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At the end of this presentation you will
be able to:
Understand the fundamentals of buying and
the behavior exhibited
Recall the characteristics affecting buying
behavior
Learn about the consumer decision making
process
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WHO IS A BUYER?
An entity which purchases goods and services
for either consumption or resale
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What is behavior?
The actions or reactions of a person or animal
in response to external or internal stimuli
- freedictionary.com
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What is buying behavior?
The decision processes and acts of people(buyers/resellers and consumers(individualand industrial) involved in buying and using
products and services.
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As mentioned earlier both individuals and
organisations buy goods and services.
The same can be differentiated as follows
INDIVIDUAL BUYING
FMCG
CONSUMER DURABLES
SEMI DURABLES
SERVICES
ORGANISATIONAL BUYING
CAPITAL GOODS
SERVICES FOR MAINTENANCE
CONSUMABLESSPARE PARTS
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FOCUS IS ON CONSUMER BUYING
BEHAVIOR
The decision processes and purchasing
activities of people who purchase products for
personal or household use and not for
business purposes
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The Nature of Consumer
Behavior and Decision Making
Factors important to understanding consumermarkets and consumer behavior: The size of the consumer market.
Changes in consumer shopping habits andpurchase decisions.
Emphasis on consumer-oriented marketing.
The design of effective marketing strategy.
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Characteristics Affecting Buying Behavior
5-6
Cultural Factors
Buyers culture
Buyers subculture
Buyers social class
Social Factors
Reference groups
Family
Roles and status
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Characteristics Affecting Buying Behavior
5-7
Personal Factors
Age and life-cycle stage
Occupation
Economic situation Lifestyle
Personality and self-
concept
Psychological Factors
Motivation
Perception
Learning Beliefs and attitudes
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Characteristics Affecting Buying Behavior
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Culture is the learned values, perceptions,
wants, and behavior from family and otherimportant institutions
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Characteristics Affecting Buying Behavior
Subculture are groups of people within aculture with shared value systems based oncommon life experiences and situations
Hispanic
African American
Asian
Mature consumers
5-9
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Characteristics Affecting Buying Behavior
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Social classesare societys relativelypermanent and ordered divisions whose
members share similar values, interests,and behaviors
Social class is measured by a combination ofoccupation, income, education, wealth, and
other variables
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Characteristics Affecting Buying Behavior
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The major social classes
Upper class
Middle class
Working class
Lower class
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Characteristics Affecting Buying Behavior
5-12
Social Factors
Groups
Membership groups have a direct influence and towhich a person belongs
Aspirational groups are groups to which an individual
wishes to belongReference groups are groups that form a comparison
or reference in forming attitudes or behavior
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Characteristics Affecting Buying Behavior
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Social Factors
Groups
Opinion leaders are people within a reference groupwith special skills, knowledge, personality, or other
characteristics that can exert social influence onothers
Buzz marketing enlists opinion leaders to spread
the word Social networking isa new form of buzz marketing
MySpace.com
Facebook.com
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Characteristics Affecting Buying Behavior
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Social Factors
Family is the most important consumer-buyingorganization in society
Social roles and status are the groups, family,
clubs, and organizations to which a personbelongs that can define role and social status
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Characteristics Affecting Buying Behavior
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Personal Factors
Personal characteristics
Age and life-cycle stage
Occupation
Economic situation Lifestyle
Personality and self-concept
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Characteristics Affecting Buying Behavior
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Personal Factors
Age and life-cycle stage RBC Royal Band stages:
Youthyounger than 18
Getting started18-35
Builders35-50 Accumulators50-60
Preserversover 60
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Characteristics Affecting Buying Behavior
Personal Factors
Occupation affects the goods and services bought byconsumers
Economic situation includes trends in:
Personal income Savings
Interest rates
5-17
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Characteristics Affecting Buying Behavior
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Personal Factors
Lifestyle is a persons pattern of living asexpressed in his or her psychographics
Measures a consumers AIOs (activities, interests,
and opinions) to capture information about a
persons pattern of acting and interacting in the
environment
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Characteristics Affecting Buying Behavior
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Personal Factors
SRI Consultings Values and Lifestyle (VALS)typology
Classifies people according to how they
spend money and time
Primary motivations
Resources
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Characteristics Affecting Buying Behavior
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Personal Factors
Primary motivations Ideals
Achievement
Self-expression
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Characteristics Affecting Buying Behavior
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Personal Factors
Resources High resources
Innovators exhibit all primary motivations
Low resources
Survivors do not exhibit strong primary motivation
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Characteristics Affecting Buying Behavior
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Personal Factors
Personal i ty and Self-Concept
Personality refers to the uniquepsychological characteristics that lead toconsistent and lasting responses to theconsumers environment
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Characteristics Affecting Buying Behavior
Personal Factors
Personal ity and Self-Concept
Brand personality refers to the specific mix ofhuman traits that may be attributed to aparticular brand
Sincerity
Excitement Competence
Sophistication
Ruggedness
5-23
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Characteristics Affecting Buying Behavior
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Personal Factors
Personal ity and Self-Concept
Self-concept refers to peoples possessions
that contribute to and reflect their
identities
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Characteristics Affecting Buying Behavior
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Psychological Factors
Motivation
Perception
Learning
Beliefs and attitudes
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Characteristics Affecting Buying Behavior
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Psychological Factors
Motivation
A motive is a need that is sufficiently pressingto direct the person to seek satisfaction
Motivation research refers to qualitative
research designed to probe consumershidden, subconscious motivations
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Characteristics Affecting Buying Behavior
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Psychological Factors
Abraham Maslows Hierarchy of Needs
People are driven by particular needs at particulartimes
Human needs are arranged in a hierarchy frommost pressing to least pressing
Psychological
Safety Social
Esteem
Self-actualization
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Characteristics Affecting Buying Behavior
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Psychological Factors
Perception is the process by which people select,organize, and interpret information to form a
meaningful picture of the world from three
perceptual processes
Selective attention Selective distortion
Selective retention
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Characteristics Affecting Buying Behavior
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Psychological Factors
Selective attention is the tendency for people to
screen out most of the information to which theyare exposed
Selective distortion is the tendency for people tointerpret information in a way that will supportwhat they already believe
Selective retention is the tendency to remembergood points made about a brand they favor and toforget good points about competing brands
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Characteristics Affecting Buying Behavior
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Psychological Factors
Learning is the changes in an individualsbehavior arising from experience andoccurs through interplay of:
Drives
Stimuli
Cues Responses
Reinforcement
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Characteristics Affecting Buying Behavior
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Psychological Factors
Beliefs and Atti tudes
Beliefis a descriptive thought that a personhas about something based on:
Knowledge
Opinion Faith
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Characteristics Affecting Buying Behavior
Attitudesdescribe a persons relativelyconsistent evaluations, feelings, and
tendencies toward an object or idea
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Psychological Factors
Beliefs and Atti tudes
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Types of Buying Decision Behavior
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Complex buying behavior
Dissonance-reducing buying behavior
Habitual buying behavior Variety-seeking buying behavior
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Types of Buying Decision Behavior
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Complex Buying Behavior
When consumers are highly motivated in a purchase
and perceive significant differences among brands
Purchasers are highly motivated when:
Product is expensive
Product is risky Product is purchased infrequently
Product is highly self-expressive
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Types of Buying Decision Behavior
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Dissonance-reducing buying behavior occurswhen consumers are highly involved with anexpensive, infrequent, or risky purchase, but seelittle difference among brands
Post-purchase dissonanceoccurs when theconsumer notices certain disadvantages of theproduct purchased or hears favorable thingsabout a product not purchased
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Types of Buying Decision Behavior
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Habitual buying behavioroccurs whenconsumers have low involvement and there
is little significant brand difference
Variety-seeking buying behavioroccurs whenconsumers have low involvement and there
are significant brand differences
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Types of Buying Decision Behavior
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Habitual buying behavioroccurs whenconsumers have low involvement and there
is little significant brand difference
Variety-seeking buying behavioroccurs whenconsumers have low involvement and there
are significant brand differences
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Consumer Buying
Decision Process
A five-stage purchase decision process that
includes problem recognition, information
search, evaluation of alternatives, purchase,
and postpurchase evaluation
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INFLUENCERS
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THE FIRST STAGE- PROBLEM
RECOGNITION
I AS THE CONSUMER WANT TO BUY A PEN
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WHY DO I NEED A PEN?
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Yet as the marketer the following questions
can be raised and effort to find answers
through research
Who
What
When
Where
Why
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SO THE PROBLEM IS THAT THERE IS A GAP
BETWEEN MY CURRENT STATE AND DESIRED
STATE
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Step 2- information search
Internal
External
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Step 3- Evaluating alternatives
Will a sms work
Email?
What about using a pencil or any other writing
instrument
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Consideration Set
Evaluative Criteria
Framing Alternatives
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Stage four- purchase
When
How
Where
Who
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Stage five- post purchase behavior
Satisfaction
Cognitive Dissonance
JND
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QUERIES??
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