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Topics to be coveredTopics to be covered
After completing the session weAfter completing the session wehave to learn the following:have to learn the following:
Definition of Buyer Behavior/Consu Definition of Buyer Behavior/Consu
Factors that Influence Consumer BeFactors that Influence Consumer Be Buyer Decision ProcessBuyer Decision Process
Stages in the Adoption ProcessStages in the Adoption Process
Adoption of innovationsAdoption of innovations
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Consumer Buying BehaviorConsumer Buying Behavior
Consumer Buying BehaviorConsumer Buying Behavior refers torefers tothe buying behavior of finalthe buying behavior of finalconsumers (individuals & households)consumers (individuals & households)who buy goods and services forwho buy goods and services forpersonal consumption.personal consumption.
It is defined as all psychological,It is defined as all psychological,
social & physical behavior of potentialsocial & physical behavior of potentialcustomers as they become aware of,customers as they become aware of,evaluate, purchase, consume & tellevaluate, purchase, consume & tellothers about product & services.others about product & services.
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Factors Affecting Consumer BehaviorFactors Affecting Consumer Behavior
Buyer
Psychological
Personal
Social
Cultural
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Factors Affecting Consumer Behavior: CulturalFactors Affecting Consumer Behavior: Cultural
3. Social Class
People within a social classtend to exhibit similar buying
behavior.Occupation
Income
Education
Wealth
1. Culture1. Culture Most basic cause of a person's wants andMost basic cause of a person's wants and
behavior:behavior: ValuesValues
PerceptionsPerceptions
2. Subculture
Groups of people with sharedvalue systems based on common
life experiences. nationalities
religion
3 Factors: Culture, Subculture, Social Class3 Factors: Culture, Subculture, Social Class
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Factors Affecting Consumer Behavior:Factors Affecting Consumer Behavior:
SocialSocial
Groups
Membership
Reference
Family
Husband, wife, kids
Influencer, buyer, user
Roles and Status
Social Factors
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Factors Affecting Consumer Behavior:Factors Affecting Consumer Behavior:
PersonalPersonal
Personal Influences
Age and Family Life CycleStage
Occupation
Economic Situation Personality & Self-Concept
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Factors Affecting Consumer Behavior:
Psychological
PsychologicalFactors
Motivation
Perception
Learning
Beliefs andAttitudes
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The Buyer Decision ProcessStep 1. Need Recognition
External Stimuli
TV advertising
Magazine ad
Radio slogan
Stimuli in the
environment
Internal Stimuli
Hunger
Thirst
A persons normalneeds
Need RecognitionDifference between an actualstate and a desiredstate
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The Buyer Decision ProcessThe Buyer Decision ProcessStep 2. Information SearchStep 2. Information Search
Family, friends, neighborsMost influential source of information
Advertising, salespeopleReceives most information
from these sources
Mass MediaConsumer-rating groups
Handling the productExamining the productUsing the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
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The Buyer Decision ProcessStep 3. Evaluation of Alternatives
Product AttributesEvaluation of Quality, Price, & Features
Degree of ImportanceWhich attributes matter most to me?
Brand BeliefsWhat do I believe about each available brand?
Total Product SatisfactionBased on what Im looking for, how satisfied
would I be with each product?
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
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The Buyer Decision ProcessThe Buyer Decision ProcessStep 4. Purchase DecisionStep 4. Purchase Decision
Purchase IntentionDesire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpected
situational
factors
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The Buyer Decision ProcessStep 5. Post purchase Behavior
Consumers Expectations ofProducts Performance
Dissatisfied
Customer
Satisfied
Customer!
Products Perceived
Performance
Bye it again /
Tell other to Buy
Return the product/
Take decision not to bye again/
Take public actions
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Buying Decision ProcessBuying Decision Process
Post purchase BehaviorPost purchase Behavior : The markers job does not: The markers job does notend with the purchase. They must monitor followingend with the purchase. They must monitor following
post purchase behaviorpost purchase behavior Post purchase satisfactionPost purchase satisfaction: Satisfaction is a: Satisfaction is afunction of the closeness between expectations &function of the closeness between expectations &perceived performance. Three situation:perceived performance. Three situation: Disappointed: if performanceexpectation
Post purchase ActionsPost purchase Actions:: If satisfiedIf satisfied
they will buy it againthey will buy it again
They also tell other to buy that brandThey also tell other to buy that brand If dissatisfied:If dissatisfied: Return the productReturn the product Take decision not to buy it againTake decision not to buy it again May take public actions by complaining theMay take public actions by complaining the
company, going to lawyer, or to other groupscompany, going to lawyer, or to other groups
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Stages in the Adoption ProcessStages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
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Buyers' Product Adoption ProcessBuyers' Product Adoption Process
Awareness:Awareness: Buyers become aware of theBuyers become aware of the
productproduct Interest:Interest: Buyers seek information and isBuyers seek information and isreceptive to learning about productreceptive to learning about product
Evaluation:Evaluation: Buyers consider product benefitsBuyers consider product benefitsand determines whether to try itand determines whether to try it
Trial:Trial: Buyers examine, test or try the productBuyers examine, test or try the productto determine usefulness relative to needsto determine usefulness relative to needs
Adoption:Adoption: Buyers purchase the product andBuyers purchase the product andcan be expected to use it when the need forcan be expected to use it when the need for
the general type of product arises.the general type of product arises. #### Rate of adoption depends onRate of adoption depends on
consumer traits as well as the product and theconsumer traits as well as the product and thefirm's marketing efforts.firm's marketing efforts.
Ad i f I i /Diff i PAd ti f I ti /Diff i P
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Adoption of Innovations/Diffusion ProcessAdoption of Innovations/Diffusion Process
Percentage
ofAdopters
Time of AdoptionEarly Late
Innovators
EarlyAdopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
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Diffusion ProcessDiffusion Process
The manner in which different members of theThe manner in which different members of the
target market often accept and purchase atarget market often accept and purchase aproduct (go through the adoption process)product (go through the adoption process) Innovators:Innovators: Techno-savvies first customersTechno-savvies first customers
to buy a product, 2.5 % of consumersto buy a product, 2.5 % of consumers Early Adopters:Early Adopters: Tend to be opinion leaders.Tend to be opinion leaders.
Adopt new products but use discretion, 13.5%Adopt new products but use discretion, 13.5% Early Majority:Early Majority: 34% of consumers, first part34% of consumers, first part
of the mass market to buy the productof the mass market to buy the product Late Majority:Late Majority: Less cosmopolitan andLess cosmopolitan and
responsive to change, 34%responsive to change, 34% Laggards:Laggards: Price conscious, suspicious ofPrice conscious, suspicious of
change, 16%, do not adopt until the productchange, 16%, do not adopt until the producthas reached maturity.has reached maturity.