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 What makes people consumers?

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“There is only one boss – the customer. And he can fireeveryone from the Chairman down” 

Sam Walton, Founder, WalMart Stores

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marketer should find answer

 What are the products they buy?

 Why they buy them?

How they buy them?

 When they buy them?

 Where they buy them?

How often they buy them?

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Consumer Buying Behavior refers to the buyingbehavior of final consumers -individuals &households who buy goods and services for personalconsumption.

The central question for marketers is:

“How do consumers respond to various marketingefforts the company might use?” 

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Consumer Buying Behavior

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Simplified Model

MarketingStimuli

TargetAudienceResponse

Black Box

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Model of Buyer Behavior

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Marketing andOther Stimuli

Marketing ProductPricePlacePromotion

Other EconomicTechnologicalPoliticalCultural

Buyer’s Black Box 

Factors influencing c.bBuyer Decision Process

Buyer Responses

Product ChoiceBrand Choice

Purchase TimingPurchase Amount

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Factors Influencing

Consumer Behavior

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Social 

Referencegroups

Family

Rolesand

status

Personal Age andlife-cycle

Occupation

Economicsituation

LifestylePersonality

andself-concept

Psycho-logical 

MotivationPerceptionLearning

Beliefs andattitudes

Buyer

Culture

Sub-culture

Socialclass

Cultural

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 Buyer Decision Process 

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PostpurchaseBehavior

PurchaseDecision

Information

SearchNeed

Recognition

Evaluationof Alternatives

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Buying Process

Need Recognition

Realizes want or need

Information Search

Looks for information

Passively – heightened awareness

 Actively – internet, in store, word-of-mouth,

experiential

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Buying Process Evaluate Alternatives

Now informed, considers different brands

Purchase

Intention – decides on brand

Choice – actual purchase of item Many factors can change the intention

Post purchase

Satisfied customer tells 3 -4 people

Dissatisfied tells at least 10

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Buying Decisions Complex Buying

Product is expensive, risky, purchased infrequently,great difference in brands

Computers, Cars

Dissonance Reducing

Expensive, infrequent, little difference between brands

Carpeting

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Buying Decisions Habitual Buying

Low cost, little difference in brands

Salt, butter, toothpaste Variety Seeking

Low cost, high perceived difference

Cookies, candy, cereal

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New Product Adoption Awareness – knows of product

Interest – seeks information

Evaluation – considers purchase Trial – experiences on small scale

 Adoption – accepts or rejects new product

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Adoption Curve

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Adoption Curve Innovators

tries at great cost

Early Adopters opinion leaders

Early Majority 

pick up on hot

trend

Late Majority  

skeptics

Laggards only adopt when it

become a tradition