1. Consumer Market & Buying Behaviour
School of Business Management
Shoolini University
Rojhe
School of Business Management

2. Customers do not take decision in isolation
Do you go alone for shopping
Do you discuss your wish list with others
How do you take buying decision for insurance
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3. Not always equal to Purchase
Wants
Need
Desire
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4. Consumer Buying Behavior
Consumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption.
Study consumer behavior to answer:
“How do consumers respond to marketing efforts the company might use?”
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5. Consumer Behaviour Model
Product
Price
Place
Promotion
Marketing & Other Stimuli
Buyer Black Box
Buyer Response
Economic
Technological
Political
Cultural
Characteristics Affecting Consumer Behavior
Buyer’s Decision Process
Purchase Timing
Purchase Amount
Product Choice
Brand Choice
Dealer Choice
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6. What affects Buying behaviour
Consumer
Cultural
Social
Psychological
Personal
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7. Culture Most basic cause of a person's wants and behavior. Values
Perceptions
Subculture
Groups of people with shared value systems based on common life experiences.
Hispanic Consumers
African American Consumers
Asian American Consumers
Mature Consumers
Social Class
People within a social class tend to exhibit similar buying behavior.
Occupation I Income I Education I Wealth

8. Social Social Factors Groups Membership Reference Aspirational
This CTR relates to the material on pp
Social
Groups
Membership
Reference
Aspirational
Disassociative Groups
Family
Husband, wife, kids
Influencer, buyer, user
Roles and Status
Social
Factors
Group Influence on Brand Choice
Groups vary in their influence on product and brand purchases as illustrated on the CTR. Consumers belong to several different membership groups.
Primary Groups. Primary groups are those with which we have regular but informal interaction. These include family, friends, neighbors, and co-workers.
Secondary Groups. Secondary groups are those with which we have more formal and less regular interaction such as religious groups, professional associations, and trade unions.
Reference Groups. These groups serve as direct (face-to-face) or indirect points of comparison and evaluation in a person’s formation of attitudes or behavior.
Aspirational Groups. This type of group is one to which the individual wishes to belong and emulates in adopting behaviors appropriate to that group.
Opinion Leaders. These are people within a reference group who exert influence over others due to special knowledge, skill, personality, or other characteristic.
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9. Personal Personal Influences Age and Family Life Cycle Stage
Occupation
Economic Situations
Personality & Self Concept
Lifestyle Identification
Activities
Opinions
Interests
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10. Psychological Motivation Perceptions Learning Belief & Attitudes
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11. Maslow’s Hierarchy of Needs
This CTR relates to the material on p and corresponds to Figure 5-4.
Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs
Maslow suggests that lower level needs must be satisfied before individuals become motivated to satisfy higher level needs. Thus consumers will respond to lower level products and promotions until those needs are met. Only then can other marketing offers be of interest. Needs include:
Physiological. Physical needs such as hunger, thirst, and bodily functions are the lowest level need and require satisfaction before other needs become important to the individual. Sometimes this helps students understand the difference between needs and wants. A thirsty person may still want an expensive car but if thirsty enough will take a drink of water.
Safety. Safety needs for security and protection are the next level needs in the hierarchy. So long as physiological needs are met, safety needs will take precedence over other needs. Fear appeals for consumer products are often linked to safety needs.
Social. Human beings are social, gregarious animals. We group together in part to fulfill physiological and safety needs but also because we enjoy and need the company of others. Going to malls to "hang out" fulfills social needs.
Esteem. To be recognized as an individual fulfills esteem needs. Self-esteem is the value a person places on himself or herself. As lower level needs become more stable, esteem needs become more important to the individual.
Self-actualization. Beyond esteem needs very successful people may still be driven to improve themselves and "accomplish something." These people are driven to self-actualize their potential.
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12. The Buying Decision Process
Buying Roles
An influencer is the person
whose view or advice influences the decision.
A decider actually decides whether to buy, what to buy, how to buy, or where to buy.
A buyer makes the actual purchase, while a user consumes or uses the product or service.
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13. Types of Buying Decisions
This CTR corresponds to Figure 5-5 on p. 151 and relates to the material on pp
Types of Buying Decisions
High
Involvement
Low
Significant
differences
between
brands
Complex
Buying
Behavior
Variety-
Seeking
Few
Dissonance-
Reducing Buying
Habitual
Types of Buying Decision Behavior
Complex Buying Behavior. Consumers undertake this type of behavior when they are highly involved in a purchase and perceive differences among brands. Involvement increases with the product is expensive, infrequently purchased, risky, and highly self-expressive.
Dissonance-Reducing Buying Behavior. Consumers engage in this behavior when they are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. Without objective differentiation to confirm the purchase, buyers often seek support to reduce postpurchase dissonance -- the feeling they may have made the wrong decision.
Habitual Buying Behavior. This behavior occurs under conditions of low consumer involvement and little significant brand differences. Consumers do not search extensively for information about brands. Brand familiarity aids in promoting products under essentially passive learning conditions.
Variety-Seeking Buying Behavior. Consumers may seek variety when involvement is low and there are significant perceived differences among brands. Differences may be product features -- new taste, improvements, extra ingredients -- or promotional benefits such as coupons, rebates, and price reductions.
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14. Buyer Decision Process
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15. Stages in the Adoption Process
This CTR relates to the material on p. 157.
Stages in the Adoption Process
Stages in the Adoption Process
The new product adoption process parallels the buyer decision process but focuses more on the interaction of consumer needs with product adoption. The new product adoption process may work best to explain how regularly used products requiring re-purchase are considered for inclusion in the consumer's consumptive behavior patterns but may also apply to some durables as well.
Awareness. In this stage the consumer is aware of the new product but lacks further information about it.
Interest. The consumer is motivated to seek information about the new product.
Evaluation. The consumer determines whether or not to try the new product.
Trial. The consumer tries the new product on a small scale to test its efficacy in meeting his or her needs. Trial can be imagined use of the product in some cases.
Adoption. The consumer decides to make use of the product on a regular basis.
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16. Adoption of Innovations
This CTR corresponds to Figure 5-7 on p. 157 and relates to the material on pp
Adoption of Innovations
Early Majority
Late Majority
Individual Differences in Innovativeness
Innovators. Innovators include the first 2.5% of buyers who adopt a new product idea. Innovators help get the product exposure but are not often perceived by the majority of potential buyers as typical consumers. Innovators like risk taking and enjoy buying new products. Innovators may purchase at skimming prices.
Discussion Note: You might discuss the ethical implications of skimming. Is it fair? Also, are there cost considerations associated with new product development that make skimming to recover high start up costs more ethical than it may seem?
Early Adopters. Early Adopters comprise about 13.5% of the buyers who adopt new products. This group serves as opinion leaders to the rest of the market and their product usage outcomes serve as motivation to later buyers to get the product.
Early Majority. Early Majority are some 34% of buyers adopting the product. They are deliberate consumers who adopt new ideas before the average person but seldom lead the market.
Late Majority. Late Majority comprise another 34% of buyers adopting the product. This group is skeptical of new products and only buys after the majority of the market has tried it.
Laggards. Laggards are the final 16% of adopters and are tradition-bound. They are suspicious of change and only adopt innovation that have already become something of a tradition.
Percentage of Adopters
Early
Adopters
Innovators
Laggards
34%
34%
13.5%
16%
2.5%
Time of Adoption
Early
Late
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17. Consumer Market & Buying Behaviour
Doubts?
Clarifications?
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