• Understanding Consumer Buying Behavior

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What they buy? Why they buy?When they buy?Where they buy? How often they buy and use a product or service?

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Why Study Consumer Behavior?

Consumer Behavior Determines the Economic Health of a Nation

Consumer Behavior Determines the Success of Marketing Programs

Consumer Behavior Determines the Economic Health of Everyone

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Consumer Behavior• The behavior that consumers display in searching for,

purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.

Chapter One Slide

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Two Consumer Entities

Chapter One Slide

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Consumer Buying Decision Process

Who Makes the Buying DecisionWho Makes the Buying Decision

Types of Buying DecisionsTypes of Buying Decisions

Stages in the Buying ProcessStages in the Buying Process

Marketers Must Identify and Understand:

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Consumer Buying Decision Process

Understand

• Buying roles• Buying behavior• Buying decision process

• Initiator• Influencer• Decider• Buyer• User I

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Consumer Buying Decision Process

Understand

• Buying roles• Buying behavior• Buying decision process

• Complex buying behavior• Dissonance-reducing buying

behavior• Habitual buying behavior• Variety-seeking buying

behavior

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Consumer Buying Decision Process

Understand

• Buying roles• Buying behavior• Buying decision process

• Five stages in the consumer buying process

• The amount of time spent in each stage varies according to several factors

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Consumer Buying Decision Process

Five-Stage Model of the Consumer Buying Process

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Need Recognition

• Need/Problem Recognition• Can be triggered by internal or external stimuli • Needs become wants, which lead to behavior

• Marketing stimuli can stimulate a desire for information I

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Information Search (1 of 2)

• Sources of information:• Internal Sources• Personal Sources• External Sources

• Time, effort and expense dedicated to information search depends on:• Degree of risk involved in the purchase• Amount of expertise with the product category• Actual cost of the search

• Evoked set:• A narrowed down set of alternatives that the customer is

considering

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Consumer Buying Decision Process

Successive Sets Involved in Consumer Decision Making

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Evaluation of Alternatives

• Customers evaluate products as bundles of attributes• Brand attributes• Product features• Aesthetic attributes• Price

• Customers place different levels of importance on attributes

• Important considerations in the evaluation stage:• Products must be in the evoked set• Consumers’ choice criteria must be understood• Marketing programs must be designed to influence consumers’

opinions about product or brand image

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Purchase Decision

• Purchase intention and the act of buying are distinct concepts

• Potential intervening factors between intention and buying (car example):• Unforeseen circumstances• Angered by the salesperson or sales manager• Unable to obtain financing• Customer changes mind

• Key issues in the purchase decision stage:• Product availability• Possession utility

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Postpurchase Evaluation

• Four possible outcomes in the postpurchase stage:• (1) Delight• (2) Satisfaction• (3) Dissatisfaction• (4) Cognitive Dissonance

• Firm’s ability to manage dissatisfaction and cognitive dissonance is:• A key to creating customer satisfaction• A major influence on word-of-mouth communication

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Factors Influencing Consumer Buying Behavior

• Cultural Factors• Culture: A set of rules, values, beliefs, behavior and concepts that is

common to and binds members of society.• Subculture: Every culture has its own set of sun cultures• Social Class

• Upper Class• Upper Middle Class• Middle Class• Lower Class• , Religion• Geographic area

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Personal Factors

• Age and Lifecycle Stage• Occupation and Financial Status• Life Style

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Psychological Factors

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Social Factors

Reference Groups Primary Reference Group

Membership Reference Group Aspiration Reference Group Disclaimant Reference Group Avoidance Reference Group

Secondary Reference GroupFamily

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Perception

Perception is a process by which an individual selects, organizes, and interprets stimuli into meaningful thoughts and pictures. Customer Perceives their environment through the sense of touch,

smell, risk etc. Customer buying behavior are also influenced by the risk factors

involved. Understanding the customer's perception helps the marketers

position their product better than that of the competitors.

Beliefs and Attitude

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Promotion and the AIDA Model

Exhibit 14-4

Promotion Objectives Adoption Process AIDA Model

Informing

Persuading

Reminding

AttentionInterest

Desire

Action

AwarenessInterestEvaluationTrialDecisionConfirmation

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14-9

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