1. Consumer Buying Behavior
Definition of Buying Behavior:
Buying Behavior is the decision processes and acts of people involved in buying and using products.
Need to understand:
Why consumers make the pruchases that they make?
What factors influence consumer purchases?
The changing factors in our society.

2. Learning Objectives
Understand the major factors influencing consumer behavior
Know and recognize the types of buying decision behavior
Understand the stages in the buying decision process

3. Consumer Market
Consists of all the individuals and households who buy or acquire goods and services for personal consumption.
Consumers make many buying decisions everyday.
The consumer market is all the individuals and households who buy or acquire goods and services for personal consumption.
The American consumer market consists on about 287 million people.
These people consume trillion of dollars of goods and services each year.
The world consumer market consists of more than 6.2 billion people.
Consumers vary tremendously in age, income, education level, and tastes.

4. Consumer Buying Decision Process
Problem
Recognition
Information
Search
Evaluation of
Alternatives
Purchase
Decision
The stages to Consumer Buying Decision Process:
Not all decision processes lead to a purchase. All consumer decisions do not always include all stages, determined by the degree of complexity.
Problem Recognition: (Awareness of Need)-Consumer recognizes a problem or need. The need can be triggered by internal stimuli when one of the person’s normal needs rises to a level high enough to become a drive. Hunger-Food. A need can also be triggered by external stimuli (such as advertisement) I.E. see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes.
Information Search- a stage in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search. This is usually done on higher ticket purchases such as cars, pianos, computers, etc.
Evaluation of Alternatives – The consumer uses information to evaluate alternative brand choices. Different process for every consumer, involves weighing product attributes and their ability to deliver benefits.
Purchase Decision – Choose buying alternatives, includes product, package, store, method of purchase, etc.
Post-Purchase Evaluation – Outcome; Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This is the buyer’s doubts shortly after a purchase about whether it was the right decision. This can be reduced by warranties, after sales communication, etc.
Post-Purchase
Evaluation

5. Types of Buying Behavior
Routine Response
Limited Decision
Extension Decision
Impulse Buying
Level of involvement is an individual’s intensity of interest in a product and the importance he or she places on a product. Consumers go through a problem-solving process. The 4 types of Problem-Solving are:
Routine Response – buying that requires very little search and decision effort; it is used for products that are low priced and bought frequently. Examples include soft drinks, snack foods, milk, etc.
Limited Decision – Buyers use when they purchase products occasionally or need information about unfamiliar brands in a familiar product category; it requires a moderate amount of time for information gathering and deliberation. Examples include Clothes—know product class but not the brand.
Extensive Decision – employed when unfamiliar, expensive, or infrequently bought products (such as homes, automobiles and furniture) are purchased; buyers used many criteria to evaluate brands and spend more time searching for information and deciding on the purchase.
Impulse Buying – unplanned buying behavior involving powerful urge to buying something immediately. A lot of impulse decisions are made at the checkout area and can be on items such as candy, sodas, batteries, film, etc.

6. Factors Influencing Consumer Behavior
Personal
Psychological
Social
Cultural

7. Personal Factors
Age
Life-Cycle Stage

8. Stages in Family Life-Cycle
Single
Newly Married Couples
Full Nest I
Full Nest II
Full Nest III
Empty Nest I
Empty Nest II
Solitary Survivor
Solitary Survivor, Retired
Single – Bachelor Stage
Newly Married – young, no children
Full Nest I – youngest child under 6
Full Nest II – youngest child 6 or over
Full Nest III – older married couple with dependant children
Empty Nest I – older married couple with no children living with them, head in labor force
Empty Nest II – older married couples, no children living at home, head retired
Solitary Survivor – in labor force
Solitary Survivor – retired
New category- Modernized life cycle includes divorced and not children.
Many baby boomers are reaching the empty nest stage of the family life where their children have grown up and left home. These are the households where the children have grown and have left home.

9. Personal Factors Age Life-Cycle Stage Occupation
Economic Circumstances
Life Style
Lifestyle refers to the way people live, how they spend their time and money, what activities they pursue, and what their attitudes and opinions are about the world they live in.

10. Psychological Factors
“Wants”
Based on a want or desire to have something. Not a necessity.

11. Psychological Factors
Motivation:
Freud Id
Ego
Super Ego
Maslow
Hierarchy of Needs

12. Psychological Factors
Motivation
Perception
The process by which an individual selects, organizes, and interprets inputs to create a meaningful picture of the world.
Selective Exposure
Selective Distortion
Selective Retention
Selective Exposure-selects inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies a current need, intensity of input changes (sharp price drop).
Selective Distortion – Changing/twisting current received information,m inconsistent with beliefs. Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example…MCI and AT&T…do you ever get confused?
Selective Retention—remember inputs that support beliefs, forgets those that don’t. Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes—60% of purchases are unplanned. Exposed to 1500 advertisements per day. Can’t be expected to be aware of all these inputs, and certainly will not retain many.

13. Psychological Factors
Motivation
Perception
Learning
Changes in an individual’s behavior arising form experience

14. Psychological Factors
Motivation
Perception
Learning
Beliefs
Descriptive thoughts that a person holds about something

15. Psychological Factors
Motivation
Perception
Learning
Beliefs
Attitudes
Enduring favorable or unfavorable cognitive evaluations emotional feelings and action tendencies
Individuals learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm’s marketing strategy.

16. Functional Factors “Needs”
Need over wants. Delivers to a real “need” to have something.

17. Social Class
Relatively homogenous, enduring divisions in a society, hierarchically ordered with members sharing similar values, interests, and behaviors.

18. American Social Classes
Upper Upper 1%
Lower Upper 2%
Upper Middle %
Middle %
Working %
Upper Lower %
Lower Lower %
Social class influences many aspects of our lives. Social class determines to some extent, the types, quality, quantity of products that a person buys or uses.
Upper Upper—inherited wealth, aristocratic names
Lower Upper—newer social elite, from current professionals and corporate elite.
Upper Middle—college graduates, mangers and professionals
Middle—average pay white collar workers and blue collar friends
Working—average blue collar workers
Upper Lower—working,not on welfare
Lower Lower—on welfare
Important point to bring up is that income distribution of the United States is becoming polarized. This means that more people are leaving the middle-income groups and spreading to the upper and lower income groups.

19. Group Influences Brand Choice Product Choice Strong Weak
Public Luxuries
Golf Clubs
Snow Skis
Sail Boat
Private Luxuries
TV Video Games
Ice Makers
Trash Compactors
Public Necessities
Wrist Watch
Automobiles
Dress Clothes
Private Necessities
Mattresses
Floor Lamps
Refrigerators
Strong
Weak

20. Family Influence on Buying Behavior
Husband-Dominant
Wife-Dominant
Equal
Women make the majority of the purchasing decisions (Wife-Dominant).

21. Culture & Subcultures Cultures Subcultures
The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment
Subcultures
Groups of individuals who have similar value and behavior patterns within the group but differ from those in other groups.
Culture: includes
Tangible items such as food, clothing furniture, buildings, and tools
Intangible concepts such as education, welfare, and laws
The values and a broad range of behaviors accepted by a specific society.
Subcultures: Subcultures can be things like ethnic groups, generational groups, religious groups, military groups, etc.

22. Adoption Process Awareness Interest Evaluation Trial Decision
Confirmation

23. Examples of Buying Motives: Psychological or Functional?
A senior wants to impress his date at the prom .
His primary motive is …?
Psychological

24. Examples of Buying Motives: Psychological or Functional?
A girl wants to remember her grandmother on her birthday.
Her primary motive is…?
Psychological

25. Examples of Buying Motives: Psychological or Functional?
A homemaker needs a new washing machine and has had good experiences with Sears.
Her primary motive is …?
Functional

26. Examples of Buying Motives: Psychological or Functional?
A teacher wants to buy a practical car to be used for family transportation.
Her/His primary motive is …?
Functional

27. Examples of Buying Motives: Psychological or Functional?
A career woman always buys Liz Claiborne clothes.
Her primary motive is…?
Psychological

28. Examples of Buying Motives: Psychological or Functional?
An overweight 40 year old man wants to loose weight so that he can reduce his blood pressure.
His primary motive is…?
Functional

29. Examples of Buying Motives: Psychological or Functional?
A homeowner needs to mow their lawn.
Their primary motive is…?
Functional

30. Consumer Buying Behavior Competency
Functional Motive
Psychological Motive
The price is 40 cents off the regular price.
It never needs ironing.
Diamonds are forever.
Serving you since 1971.
Ninety-day warranty.

31. Consumer Buying Behavior Competency
Functional Motive
Psychological Motive
Running shoe with built-in arch.
It’s all the rage—colored action wear and style.
Wheaties—the breakfast of champions!
Steel-belted radial tires warranted for 40,000 miles
A watch—a gift she will treasure always.

32. Learning Objectives--Reviewed
Understand the major factors influencing consumer behavior
Know and recognize the types of buying decision behavior
Understand the stages in the buying decision process

33. Consumer Buying Behavior
THE END

34. Consumer Buying Decision Process
Problem
Recognition
Information
Search
Evaluation of
Alternatives
Purchase
Decision
The stages to Consumer Buying Decision Process:
Not all decision processes lead to a purchase. All consumer decisions do not always include all stages, determined by the degree of complexity.
Problem Recognition: (Awareness of Need)-Consumer recognizes a problem or need. The need can be triggered by internal stimuli when one of the person’s normal needs rises to a level high enough to become a drive. Hunger-Food. A need can also be triggered by external stimuli (such as advertisement) I.E. see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes.
Information Search- a stage in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search. This is usually done on higher ticket purchases such as cars, pianos, computers, etc.
Evaluation of Alternatives – The consumer uses information to evaluate alternative brand choices. Different process for every consumer, involves weighing product attributes and their ability to deliver benefits.
Purchase Decision – Choose buying alternatives, includes product, package, store, method of purchase, etc.
Post-Purchase Evaluation – Outcome; Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This is the buyer’s doubts shortly after a purchase about whether it was the right decision. This can be reduced by warranties, after sales communication, etc.
Post-Purchase
Evaluation