0. Consumer Behavior
Buying behavior of final consumers 05

1. Definitions
Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption
All of these final consumers combine to make up the consumer market

2. Model of Buyer Behavior

3. Factors Influencing Consumer Behavior

4. Characteristics Affecting Consumer Behavior
Culture
Forms a person’s wants and behavior
Subculture
Groups with shared value systems
Social Class
Society’s divisions who share values, interests and behaviors
Key Factors
Cultural
Social
Personal
Psychological

5. Characteristics Affecting Consumer Behavior
Groups
Membership
Reference
Aspirational
Opinion Leaders
Buzz marketing
Family
Many influencers
Roles and Status
Key Factors
Cultural
Social
Personal
Psychological

6. Characteristics Affecting Consumer Behavior
Age and life cycle
Occupation
Economic situation
Lifestyle
Activities, interests and opinions
Lifestyle segmentation
Personality and self-concept
Key Factors
Cultural
Social
Personal
Psychological

7. Characteristics Affecting Consumer Behavior
Motivation
Needs provide motives
Motivation research
Maslow’s hierarchy of needs
Perception
Selective attention, selective distortion, selective retention
Learning
Drives, stimuli, cues, responses and reinforcement
Beliefs and attitudes
Key Factors
Cultural
Social
Personal
Psychological

8. Attitudes
A predisposition to respond in a consistently favorable or unfavorable way
An individual’s affective reaction to or overall evaluation of an object, person, action, or concept

9. Involvement Involvement Profile:
Personal interest in a product category
Importance of negative consequences
Probability of making a mistake
Pleasure value of the product category
Sign value of the product category
How closely the product is related to the self

10. Types of Buying Decision Behavior
Involvement
High
Low
COMPLEX
VARIETY SEEKING
High brand differences
Consumers undertake complex buying behavior when they are highly involved in a purchase and perceive significant differences among brands. This is typical for expensive or self-expressive goods.
Dissonance-reducing buying behavior occurs when consumers are highly involved but see little difference among brands. Dissonance refers to post-purchase regret.
Habitual buying behavior occurs under low involvement with few significant brand difference. Consumers buy out of habit without much effort.
Variety-seeking buying behavior occurs in situations characterized by low consumer involvement but significant perceived brand differences. In such cases, consumers often do a lot of brand switching.
HABITUAL
Low brand differences
DISSONANCE REDUCING

11. The Buyer Decision Process

12. The Buyer Decision Process
Process Stages
Needs can be triggered by:
Internal stimuli
Normal needs become strong enough to drive behavior
External stimuli
Advertisements
Friends of friends
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

13. The Buyer Decision Process
Process Stages
Consumers exhibit heightened attention or actively search for information.
Sources of information:
Personal
Commercial
Public
Experiential
Word-of-mouth
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

14. The Buyer Decision Process
Process Stages
Evaluation procedure depends on the consumer and the buying situation.
Most buyers evaluate multiple attributes, each of which is weighted differently.
At the end of the evaluation stage, purchase intentions are formed.
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

15. The Buyer Decision Process
Process Stages
Two factors intercede between purchase intentions and the actual decision:
Attitudes of others
Unexpected situational factors
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

16. The Buyer Decision Process
Process Stages
Satisfaction is important:
Delighted consumers engage in positive word-of-mouth.
Unhappy customers tell on average 11 other people.
It costs more to attract a new customer than it does to retain an existing customer.
Cognitive dissonance is common
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

17. Buyer Decision Process for New Products
Good, service or idea that is perceived by customers as new.
Stages in the Adoption Process
Marketers should help consumers move through these stages.

18. Adoption New Product Buying Adoption Trial Evaluation Awareness
Interest
Evaluation
Trial
Adoption is the mental process through which a consumer passes from first learning about an innovation to final adoption. Adoption is the decision by an individual to become a regular user of the product.
Consumers vary in the speed of adopting a new product. The innovators and early adopters are first, followed by the early and late majority, and finally, the laggards.
Adoption
Adoption

19. Adopter Categories Based on Relative Time of Adoption

20. Buyer Decision Process for New Products
Individual Differences in Innovativeness
Consumers can be classified into five adopter categories, each of which behaves differently toward new products.
Product Characteristics and Adoption
Five product characteristics influence the adoption rate.

21. Making an innovation successful
Relative Advantage
Compatibility
Divisibility
Communicability
Five characteristics are important in influencing an innovation’s rate of adoption.
Relative advantage: the degree to which the innovation is superior to existing products
Compatibility: the degree to which the innovation fits the values and experiences of potential consumers
Complexity: the degree to which the innovation is difficult to understand or use
Divisibility: the degree to which the innovation may be tried on a limited basis
Communicability: Observability of the innovation
Complexity