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Consumer Markets and ConsumerBuying Behavior

Mahoob Ul Haq Part Two

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Consumer Markets and Consumer Buying Behavior

Consumer Buying Behavior The buying behaviorof the final consumers individuals and households

who buy goods and services for personal

consumption.Consumer Markets All the individuals andhouseholds who buy or acquire goods or services forpersonal consumption.

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Model of Consumer Behavior

Buying

Characteristics

Buying Decision

Process

Product Choice

Brand ChoiceDealer Choice

Purchase Timing Purchase Amount

Marketing Stimuli Product

PricePlacePromotionOther Stimuli Economic

TechnologicalPoliticalCultural

Stimuli Buyings Black Box Buying Responses

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Stimulus Response ModelMarketing and other stimuli enter the Buyingsblack box and produce certain choice/purchaseresponses.Marketers must figure out what is inside of theBuyings black box and how stimuli are changedto responses.

Model of Consumer Behavior

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Characteristics Affecting Consumer Behavior

Culture

Subculture

Social Class

Cultural

Reference

groups

Family

Roles andstatus

Social

Age and life

cycle stage

Occupation

Economicsituation

Lifestyle

Personality andself-concept

Personal

Motivation

Perception

Learning

Belief andattitude

Psychological

Buying

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Characteristics Affecting Consumer Behavior

Cultural FactorCulture is the set of basic values, perceptions,

wants and behaviors learned by a member of

society from family and other importantinstitutions.

Subcultures (nationalities, religions, regions)

Social Class (homogeneous divisions, similar values, interest, benefits etc)

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Characteristics Affecting Consumer Behavior

Social FactorsGroups

ReferenceAspirational Groups

Opinion LeadersFamily

Children can InfluenceRoles and Status

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Characteristics Affecting Consumer Behavior

Social Factors Role: A role consist of activities people areexpected to perform according to the personsaround them.Status: Status reflects the general esteem given to anindividual by society.

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Characteristics Affecting Consumer Behavior

Personal Factors Age and Life-Cycle Stage

OccupationEconomic situationLifestyle

Activities, interests, and opinions

Personality and Self-Concept

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Personal FactorPersonality is a persons distinguishing psychological characteristics that lead to relatively

consistent and lasting responses to his or her ownenvironment. i.e self-confidence, dominance,autonomy (understanding), deference (respect),sociability (friendliness), defensiveness, andadaptability (flexibility).

Characteristics Affecting Consumer Behavior

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Characteristics Affecting Consumer Behavior

PsychologicalMotivation

Motive (drive) is a need that is sufficiently pressing todirect the person to seek satisfaction of the need.Maslows hierarchy of needs

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Characteristics Affecting Consumer BehaviorPsychologicalMaslows Hierarchy of Needs

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Characteristics Affecting Consumer Behavior

PsychologicalPerception

Process by which people select, organize, and interpretinformation to form a meaningful picture.

LearningChanges in the individuals behavior arising fromexperience.

Beliefs and AttitudesBelief: A descriptive thought that a person holds aboutsomething.

Attitude: A persons consistently favorable orunfavorable evaluations, feelings and tendencies toward

object or idea.

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The Buying Decision Process

NeedRecognition

InformationSearch

Evaluation

of Alternatives

PurchaseDecision

PostpurchaseBehavior

Buying Decision Process

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

f

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The Buying Decision Process

Need Recognition The first stage of the Buying decision process, in which theconsumer recognizes a problem or need.

Needs can be triggered by:Internal stimuli

Normal needs become strong enough to drive behaviorExternal stimuli

AdvertisementsFriends of friends

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The Buying Decision Process

Information Search The stage of the Buying decision process in which theconsumer is aroused to search for more information; the

consumer may simply have heightened attention or actively search for information.Sources of information:

Personal

CommercialExperiential

Word-of-mouth

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The Buying Decision Process

Evaluation of Alternatives The stage of the Buying decision process in which theconsumer uses information to evaluate alternative brands inthe choice set. Evaluation procedure depends on the consumer and thebuying situation.Most Buying evaluate multiple attributes, each of which is

weighted differently.

At the end of the evaluation stage, purchase intentions areformed.

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The Buying Decision Process

Purchase Decision The Buyings decision about which brand to purchase. Two factors intercede between purchase intentions and the

actual decision: Attitudes of othersUnexpected situational factors

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The Buying Decision Process

Post purchase Behavior The stage of the Buying decision process in whichconsumers take further action after purchase, based ontheir satisfaction or dissatisfaction. Satisfaction is important:

Delighted consumers engage in positive word-of-mouth.

It costs more to attract a new customer than it doesto retain an existing customer.Cognitive Dissonance: Buying discomfort caused by post purchase conflict.

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The Buying Decision Process for New Products

New Products A good, service or idea that is perceived by some potentialcustomers as new.

Adoption Process The mental process through which an individual passes

from first hearing about an innovation to final adoption.

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The Buying Decision Process for New Products

Stages in the Adoption Process

Awareness: Consumer is aware of product, but lacks information.

Interest: Consumer seeksInformation about new product.

Evaluation: Consumer considerstrying new product.

Trial: Consumer tries new product on a small scale.

Adoption: Consumer decidesto make regular use of product

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The Buying Decision Process for New Products

Individual Differences in InnovativenessConsumers can be classified into five adopter categories,each of which behaves differently toward new products.

InnovatorsEarly AdoptersEarly Majority Late Majority

Laggards

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The End

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