Chapter 2

Consumer Buying Behavior

Prepared by:Nor Izzuddin Bin Norrahman

Lecturer of Management, Banking & Islamic FinanceAstin College

Content…

• Consumer Buying Behavior (CBB)

• Characteristics Affecting Consumer Behavior

– Cultural

– Social

– Personal

– Psychological

Definition of CBB…

• Refers to the BUYING BEHAVIOR of finalconsumers or market

• Consumer market consists of all theindividuals and households who buy oracquire goods and services for personalconsumption.

Model of consumer behavior

Marketing & Other Stimuli

Product

Price

Place

Promotion

Buyer’s Black Box

Buyer Characteristics

Buying decision process

Buyer Response

Characteristics Affecting CBB…

• Cultural Factors

– Exert the broadest and deepest influence on consumer behavior.

– Marketer needs to understand the role played by the buyer’s culture, subculture, and social class.

Cultural factors

Culture SubcultureSocial Class

• Culture– The most basic cause of a person’s wants and

behavior.

– Growing up in society, a child learns basic values, perceptions, wants, and behaviors from family and other important institutions.

– Cultural values are widely held beliefs that state what is desirable and have some influence on behavior.

– It also influence our consumption.

• Subculture– Each culture contains smaller subcultures, or

group of people with shared value system based on common life experiences and situations.

– Includes nationalities, religions, racial groups, and geographic regions.

– Many subcultures make up important market segments.

– Marketer usually design their products and services according to the subcultures needs.

• Social Class– Almost all society has some form of social class

structure.

– Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.

– It is not determined by a single factor (Exm: Income)

– It is measured by a combination of occupation, income, education, wealth and other variables.

Characteristics Affecting CBB…

• Social factors

– Consumer’s behavior also influenced by social factors, such as the consumer’s small groups, family, social roles and status.

Social factors

Small groups

FamilyRoles & status

• Groups– Groups have direct influence and to which person

belongs are called membership groups.

– In contrast, reference groups serve as direct (Face-to-face) or indirect points of comparison or reference in forming person’s attitudes.

– People often are influenced by reference groups to which they do not belong.

– Example: Teenager who played soccer hopes to play for the national team.

• Family– Family members can strongly influence buyer

behavior.

– There is roles and influence of the husband, wife, and children on the purchase of different products and services.

– Husband-wife involvement varies widely by product category and by stage in the buying process.

– Buying roles change with evolving consumer lifestyles.

• Roles and status– A person belongs to many groups – family, clubs,

organizations.

– The person’s position in each group can be defined in terms of both roles and status.

– A role consists of the activities people are expected to perform according to the persons around them.

– Each role carries a status reflecting the general esteem given to it by society.

Characteristics Affecting CBB…

• Personal Factors– A buyer’s decisions also are influenced by

personal characteristics such as the buyer’s:• Age

• Occupation

• Economic

• Situation

• Lifestyle

• Personality

• Self-Concept

• Age and life-cycle stage

– People change the goods and services they buy over their lifetimes.

– Buying is also shaped by the stage of the family life cycles, the stages through which families might pass as they mature over time.

– However, today marketers prefer to focus on alternative, non-traditional stages. (Exp: unmarried

couples, single parents, childless parents)

• Occupation– Occupation affects buying behavior. (white vs blue

collar)

• Economic Situation– Recess in economic will resulting consumers tent to

save money rather than spending

• Lifestyle– Involving Activities, Interest and Opinion (AIO)

• Personality and self-concept– Unique psychological characteristics.– Self-confidence, dominance, sociability

Characteristics Affecting CBB…

• Psychological Factors

– A person’s buying choices are further influenced by four major psychological factors.

Psychological Factors

Motivation Perception LearningBeliefs & Attitudes

• Motivation

– Can be viewed as an internal force that directs people to act in a particular way to satisfy a particular need.

– Arising from the need.

– Needs become motive when it is aroused to a sufficient level of intensity.

– Motive will direct person to seek satisfaction.

Maslow's hierarchy of needs:

• Perception

– Is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

– A motivated person is READY to act.

– HOW the person acts is influenced by his/her perception of the situation.

– All people receive info from 5 senses,

– But interpret the info in individual way

TUTORIAL 2

• Types of perception:

– Selective exposure

– Selective distortion

– Selective retention

• Learning– Describes changes in an individual’s behavior

arising from experience.

– Learning occurs interplay of:• Stimulus

– Environment that capable of eliciting a response

• Drive– Is a motivating force that directs behavior

• Response– Reaction to the stimulus and drive

• Reinforcement– Reward or punishment receive as a result of your response

• Beliefs & Attitudes

– Belief : a descriptive thought that a person has about something.

– Example?

– Attitude: person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.

– Example?

het einde