Cosumer Behavior

8/8/2019 Cosumer Behavior

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Buying Behaviors of ConsumerRefers to the buying behavior of people who buy

goods and services for personal use.

These people make up the consumer market .

The central question for marketers is:

³How do consumers respond to various

marketing efforts the company might use?´



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Consumer play different roles

in the buying process

Initiator

Influencer Payer

Decider

Buyer User

One person may assume

multiple roles in the decisionmaking process.

Roles differ according to the

product being sought.



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Model of Consumer Behavior



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Factors Influencing Consumer Behavior

Cultural

Culture

Subculture

Social Class

Cultural

Culture

Subculture

Social Class

Social

Reference

Groups

Family

Roles &

Status

Social

Reference

Groups

Family

Roles &

Status

Personal

Age & Life-

Cycle Stage

Occupation

Economic

Situation

Lifestyle

Personality &

Self-Concept

Personal

Age & Life-

Cycle Stage

Occupation

Economic

Situation

Lifestyle

Personality &

Self-Concept

Psychologic

al

Motivation

Perception

Learning

Beliefs &Attitudes

Psychologic

al

Motivation

Perception

Learning

Beliefs &Attitudes



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Cultural Factors

Culture is the Most Basic Cause of a Person's Wants

and Behavior.

Culture is learned from family, church, school, peers,

colleagues.

Culture includes basic values, perceptions, wants, and

behaviors.

Cultural factors:

Sub Culture

Socio Economic Class (SEC) (refer table from Kotler )



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Social Factors

Reference Groups

Membership groups

1. Primary groups

2. Secondary

groups

Aspirational groupsDissociative groups

Opinion leader

Family

Family of orientation

Family of procreation

Roles and Statuses

Role

Status



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Personal Factors

Ag e and Sta g e in the Life Cycle

1. Bachelor stage: young, single not living at home

Few financial burdens

Fashion opinion leadersRecreation oriented.

Buy basic home equipment, furniture, cars,vacations

2.Newly married Couple: Young no childrenHighest purchase rate & highest average purchase

of durables

Cars, appliances, furniture, vacations



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3.Full nest I: youngest child under 6

Home purchasing at peak.

Liquid assets low

Interested in new products, advertised products

Buy: washers, dryers, TV, baby food, vitamins,dolls

4. Full Nest II: youngest child 6 or over

Financial position better

Less influenced by advertisements

Buy larger sized packages, multiple unit deals

Buy: cleaning material, bicycles, piano



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5. Full Nest III: older married couple with dependent

children Financial position still better

Less influenced by advertising

High average purchase of durables

Auto, boats, dental services, magazines

6. Empty Nest I: older married couple, no childrenliving with them, head of house in labor force

Home ownership at peak Interested in travel, recreation, self education

Not interested in new products

Buy: vacations, luxuries, home improvements



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7. Empty Nest II: older married couple, no children

living with them, head of house retired Drastic cut in income

Keep home

Buy: medical appliances, medical care products

8. Solitary survivor: in labor force

Income still good but likely to sell home

9. Solitary survivor: retired

Same medical and product needs as other retiredgroup

Drastic cut in income

Special need for attention, affection, security



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Occupation and Economic CircumstancesPersonality and Self-Concept

Personality

Brand personality

SincerityExcitement

Competence

Sophistication

Ruggedness



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Lifestyle and values

Traditional

Pleasure seeker

Social Chameleon

Intrinsic Progressive

Self-concept

Person¶s actual self-concept

Ideal self-conceptOthers¶ self-concept



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Psychological Factors

Motivation

Freud¶s Theory -Projective techniques

Laddering

Herzberg¶s Theory - Dissatisfiers

Satisfiers

Maslow¶s Theory - Maslow¶s Hierarchy of

needs



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Maslow¶s Theory



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Perception

Selective attentionI) People are more likely to notice stimuli that

relate to a current need

II) People are more likely to notice stimuli that

they anticipateIII) People are more likely to notice stimuli

whose deviations are large in relation to thenormal size of the stimuli

Selective distortion

Selective retention

Subliminal Perception



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Learning

DriveCues

Discrimination

Memory

Short term and long term memory

Memory Processes: Encoding and Retrieval

Beliefs and Attitudes

Belief Spreading activation

Attitude



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Four Types of Buying Behavior

High Involvement Low

Involvement

Significant

Differences betweenBrands

Complex buying

behavior

Variety-seeking

buying behavior

Few Differences

between Brands

Dissonance-

reducing buying behavior

Habitual buying

behavior



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Problem recognition

Information search

Personal sources

Commercial sources

Public sources

Experiential sources

Stages of the Buying Decision Process



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Successive Sets Involved in Customer Decision

Making



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Evaluation of Alternatives

Potential Attributes of interest

Cameras

Hotels

Mouthwash

Tires

Brand beliefs

Brand image

The Buying Decision Process (contd.)



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A Consumer¶s Brand Beliefs about Computers

Computer Attribute

Memory

Capacity

Graphics

Capability

Size and

Weight Price

A 10 8 6 4

B 8 9 8 3

C 6 8 10 5

D 4 3 7 8



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Strategies designed to stimulate interest in acomputer

Redesign the computer ± real repositioning

Alter beliefs about the brand ± psychological

repositioning

Alter beliefs about competitors¶ brands-

competitive depositioning

Alter the importance weightsCall attention to neglected attributes

Shift the buyer¶s ideas



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Steps Between Evaluation of

Alternatives and a purchase decision



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Informediaries

Consumer Reports

Unanticipated situational factors

Perceived risk Brand decision

Vendor decision

Quantity decision

Timing decision

Payment-method decision

Purchase Decision



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Purchase Decisions

In executing a purchase intention, the consumer may make up to 5 sub decisions: brand, dealer, quantity, timing & payment method.

Purchases of everyday products involve fewer decisions & lessdeliberation.

In some cases, consumers may decide not to formally evaluate

each and every brand; in other cases, intervening factors mayaffect the final decision.

A consumer¶s decision to modify, postpone, or avoid a purchasedecision is heavily influenced by perceived risk. There are manydifferent types of risks that consumers may perceive in buyingand consuming a product:

1. Functional Risk 2. Physical Risk

3. Financial Risk 4. Social Risk

5. Psychological Risk 6. Time Risk



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Postpurchase Behavior

Postpurchase Satisfaction

DisappointedSatisfied

Delighted

Postpurchase Actions

Postpurchase Use and Disposal

The Buying Decision Process



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How Customers Dispose of Products



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Consumerism

Consumerism is a movement that is defined as

seeking to increase the rights and powers of

buyers in relation to sellers.

A combination of consumer concern over rising prices and over the problems of product

performance and quality are viewed as chief

reasons of consumerism.

Consumerism can be a positive competitive

marketing tool.

Documents

Cosumer Behavior