1. Principles of Marketing Lecture-15

2. Summary of Lecture-14

3. Consumer Buying Behavior (cont..)

4. 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

5. Characteristics Affecting Consumer Behavior

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

7. Today’s Topics

8. 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

9. 3. Personal

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

11. a. Age and life cycle stage

12. b. Occupation

13. c. Economic situation

14. d. Lifestyle

15. e. Personality

16. 4. Psychological

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

18. a. Motivation

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

20. Physiological Needs

21. Safety Needs Physiological Needs

22. Social Needs Safety Needs Physiological Needs

23. Safety Needs Social Needs Physiological Needs Personal Needs

24. b. Perception

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

26. c. Learning

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

28. d. Beliefs and attitudes

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

30. 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.

31. Types of Buying decision behavior

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

33. 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

34. Buyer Decision Process

35. Problemrecognition Informationsearch Evaluation of alternatives Purchasedecision Postpurchasebehavior

36. 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

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

38. Information Search

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

40. Evaluation of Alternatives

41. Steps Between Evaluation of Alternatives and a Purchase Decision

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

43. Purchase Decision

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

45. 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

46. Post-purchase Behavior

47. Buyer Decision Process for New Products

48.  Awareness  Interest  Evaluation  Trial  Adoption

49. Enough for today...

50. Summary

51. Consumer Buying Behavior

52. 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

53. Characteristics Affecting Consumer Behavior

54. 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

55. Buyer Decision Process

56. 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

57. Buyer Decision Process for New Products

58.  Awareness  Interest  Evaluation  Trial  Adoption

59. Next….

60. Business Markets and Buying Behavior

61. Principles of Marketing Lecture-15