Principles of Marketing Lecture-15

Summary of Lecture-14

Consumer Buying Behavior (cont..)

Marketing and Other Stimuli Marketing and Other Stimuli Buyer’s Black Box ”what” & “how” Buyer’s Black Box ”what” & “how” Buyer’s Response Product Price Place Promotion Economic Technological Political Cultural Buyer characteristics affecting consumer behavior Buyer’s decision process Product choice Brand choice Dealer choice Purchase timing Purchase quantity

Characteristics Affecting Consumer Behavior

1. Cultural 2. Social 3. Personal 4. Psychological

Today’s Topics

Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes Buyer Culture Sub- culture Social class Culture Sub- culture Social class Cultural

3. Personal

a. Age and life cycle stage b. Occupation c. Economic situation d. Lifestyle e. Personality and self- concept

a. Age and life cycle stage

b. Occupation

c. Economic situation

d. Lifestyle

e. Personality

4. Psychological

a. Motivation b. Perception c. Learning d. Beliefs and attitudes

a. Motivation

Maslow’s Hierarchy of Needs Physiological Safety Social Esteem Self- Actualization

Physiological Needs

Safety Needs Physiological Needs

Social Needs Safety Needs Physiological Needs

Safety Needs Social Needs Physiological Needs Personal Needs

b. Perception

Perception Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.

c. Learning

A process that creates changes in behavior, immediate or expected, through experience and practice.

d. Beliefs and attitudes

Value Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.

An organized pattern of knowledge that an individual holds as true about his or her world. Belief Attitude A learned tendency to respond consistently toward a given object.

Types of Buying decision behavior

Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety seeking buying behavior

Complex Buying Behavior Dissonance- Reducing Buying Behavior Variety- Seeking Behavior Habitual Buying Behavior High Involvement Significant differences between brands Few differences between brands Low Involvement

Buyer Decision Process

Problemrecognition Informationsearch Evaluation of alternatives Purchasedecision Postpurchasebehavior

Postpurchase Behavior Postpurchase Behavior Purchase Evaluation of Alternatives Evaluation of Alternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps Cultural, Social, Individual and Psychological Factors affect all steps

Need Recognition Result of an imbalance between actual and desired states.

Information Search

Internal Information Search  Recall information in memory External Information search  Seek information in outside environment  Non-marketing controlled  Marketing controlled

Evaluation of Alternatives

Steps Between Evaluation of Alternatives and a Purchase Decision

Evaluationofalternatives Purchase intention Unantici- pated situational factors Attitude of others Purchase decision

Purchase Decision

Determines which attributes are most important in influencing a consumer’s choice To buy or not to buy...

Five Factors influencing Decisions 1.Level of consumer involvement 2.Length of time to make decision 3. Cost of good or service 4. Degree of information search 5. Number of alternatives considered

Post-purchase Behavior

Buyer Decision Process for New Products

 Awareness  Interest  Evaluation  Trial  Adoption

Enough for today...

Summary

Consumer Buying Behavior

Model of Buyer Behavior Marketing & other stimuli Marketing Product Price Place Promotion Other Economic Technological Political Cultural Buyer’s Black Box Buyer Characteristics Buyer Decision Process Buyer Responses Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount

Characteristics Affecting Consumer Behavior

Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes Buyer Culture Sub- culture Social class Culture Sub- culture Social class Cultural

Buyer Decision Process

Postpurchase Behavior Postpurchase Behavior Purchase Evaluation of Alternatives Evaluation of Alternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps Cultural, Social, Individual and Psychological Factors affect all steps

Buyer Decision Process for New Products

 Awareness  Interest  Evaluation  Trial  Adoption

Next….

Business Markets and Buying Behavior

Principles of Marketing Lecture-15