2. Consumer Behavior

3. Process by which consumers and business buyers make purchase decisions. Buyer Behavior

4. Buyer behavior of ultimate consumers. Consumer Behavior

5. Question Think of a situation when you were confronted with some difficulties to decide what you were going to purchase E.g birthday/wedding gift for your best friend. What were these difficulties? What can you conclude about buyers’ behaviour in general?

6. Buyers normally spend variable time and effort before they make a purchase, depending: –Type of product and its importance to the buyer –The amount of actual time available to them to make the decision on what to purchase –The level of involvement of the buyer in making the purchase

7. Types of buying behaviour 1.Routinised response behaviour normally shown when buying low involvement frequently purchased low cost items; needs very little search and decision effort; often purchases are almost automatic. E.g.

8. Limited problem solving used when buyers purchase products occasionally and need to obtain information about an unfamiliar brand in a familiar product category.

9. Extended problem solving used when unfamiliar products, expensive or infrequently bought products are purchased, requiring a great deal of conscious effort. E.g.

10. Impulse Buying an unplanned buying behaviour involving a powerful urge to buy something immediately. E.g.

11. Cultural Influences Personal Influences Social Influences Family Influences FACTORS INFLUENCING CONSUMER BEHAVIOUR Interpersonal Determinants of Consumer Behavior

12. Values, beliefs/preferences, and tastes handed down from one generation to the next. Culture

13. Subgroup of a culture with its own, distinct modes of behavior. Subculture

14. Personal Influences Age Family life cycle stage Occupation Economic situation Personality and self-concept

15. Value, attitude, or behavior that a group deems appropriate for its members. Norm

16. Relative prominence of any individual in a group. Status

17. Categories of Social Class AHigher managerial, administrative or professional BIntermediate managerial, administrative or professional C1Supervisory or clerical, and junior managerial, administrative or professional C2Skilled manual workers DSemi and un-skilled manual workers EState pensioners or widows, casual or lowest grade workers, or long term unemployed

18. Behavior that members of a group expect of an individual who holds a specific position within it. Role

19. Group with which an individual identifies strongly enough that it dictates a standard of behavior. Reference Group

20. Trendsetter likely to purchase new products before others and then share the resulting experiences and opinions via word of mouth. Opinion Leader

21. 1. Autonomic, in which the partners independently make equal numbers of decisions. 2. Husband-dominant, in which the husband makes most of the decisions. 3. Wife-dominant, in which the wife makes most of the decisions. 4. Syncratic, in which both partners jointly make most decisions. Spousal Roles in Family Decision Making

22. Personal Determinants of Consumer Behavior PSYCHOLOGICAL FACTORS Needs and Motives Perceptions Attitudes Learning Self-Concept

23. Lack of something useful; an imbalance between a desired state and an actual state. Need

24. Inner state that directs a person toward the goal of satisfying a felt need. Motive

25. Products Vitamins, herbal supplements, medicines, low-fat foods, exercise equipment, fitness clubs PHYSIOLOGICAL NEEDS Table 8.1aMarketing Strategies Based on Maslow’s Needs Theory

26. Products Car accessories, burglar alarm systems, retirement investments, insurance, smoke and carbon monoxide detectors SAFETY NEEDS Table 8.1bMarketing Strategies Based on Maslow’s Needs Theory

27. ProductsBeauty aids, entertainment, clothing BELONGINGNESS NEEDS Table 8.1cMarketing Strategies Based on Maslow’s Needs Theory

28. Products Clothing, cars, jewelry, hobbies, beauty spa services ESTEEM NEEDS Table 8.1dMarketing Strategies Based on Maslow’s Needs Theory

29. ProductsEducation, cultural events, sports, hobbies SELF-ACTUALIZATION NEEDS Table 8.1eMarketing Strategies Based on Maslow’s Needs Theory

30. PERCEPTION Meaning that an individual created by interpreting a stimulus.

31. 1. Stimulus factors--characteristics of the physical object such as size, color, weight, and shape. 2. Individual factors--unique characteristics of the individual, including not only sensory processes, but also experiences with similar inputs and basic motivations and expectations. Factors Influencing Perception

32. A person’s enduring favorable or unfavorable evaluation, emotional feeling, or action tendency toward a product. Belief &Attitude

33. Immediate or expected change in behavior as a result of experience. Learning

34. Strong stimulus that impels action. Drive

35. An Integrated Model of the Consumer Decision Process Problem Recognition Search Alternative Evaluation Purchase Purchase Evaluation Interpersonal Determinants Cultural Influences Social Influences Family Influences Personal Determinants Needs and Motives Perception Attitudes Learning Self-Concept Feedback

36. Post-purchase anxiety that results from an imbalance among an individual’s knowledge, beliefs, and attitudes. Cognitive Dissonance

37. Consumer Buying Roles Initiator: person who comes up with an idea to buy something Influencer: Someone whose advice can be important, e.g. opinion leader Decider: the person who makes the decision of whether, when, what, how to buy Buyer: Someone who performs the transaction and exchanges money for products or services. User: The person who consumes, operates or experiences the product or service

38. Question Imagine that you need a good or a service. Apply the consumer buying decision process to illustrate how you would go about in your buying decision You may choose any product as example.