03. Buying behaviour[1]

8/7/2019 03. Buying behaviour[1]

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MARKETINGMANAGEMENT

Buying behaviour


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Consumer markets & consumer

buyer behaviorModel of Consumer Behavior

Characteristics Affecting Consumer BehaviorTypes of Buying Decision Behaviors

The Buyer Decision ProcessThe Buyer Decision Process for New Products


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Model of consumer behavior

Consumer buyer behavior

Buying behavior of final consumersIndividuals & households who buy goods & services forpersonal consumption

Consumer marketAll of the personal consumption of final consumers


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Model of consumer behavior


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Characteristics affecting consumerbehavior


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Characteristics affecting CB:

SubculturesGroups of people within a culture with shared value

systems based on common life experiences andsituationsBengalis

GujaratisPunjabisMallusTams


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Characteristics affecting CB: Social

classSociety's relatively permanent and ordered

divisions whose members share similar values,interests, and behaviors

Measured by a combination of occupation,income, education, wealth, and othervariables


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SEC [Urban]

Source : Market Research Society of India, indiastat.com

EIGHT Classes labeled as A1, A2, B1, B2, C, D, E1 and E2; A1 the upper-most, & E2 the lowest

Illiterate

Schoolupto 4

years /literatebut noformal

schooling

School 5-9years

SSC /HSC

SomeCollegebut not

Graduate

Graduate/ Post-

Graduate(General)

Graduate

/ Post-Graduate(Profession

al)

E1E1 D

C B2 B1None D C B2 B1 A19 - 10 C B1 A210+

B2 B1 A2 A1C

B1Junior B2 B1 A2

Middle /Senior

A2

B2A2

B2C

DC

B1

D

B2B1 A2

A1

CB1

A1A1

A2

DD

E2

A2

Self-employedClerical / SalesmanSupervisory Level

Officers /Executives:

Skilled WorkersPetty TradersShop OwnersBussinessmen /Industrialists withemployees (nos.):

Occupation

Education

Unskilled Workers E2 D


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SEC [Rural]

Pucca Semi KuchhaIlliterateLiterate but no formal school R3

Upto 4th standard5th to 9th standardS.S.C./H.S.C. R2 R3 R3

Some College but not GraduateGraduate/Post Graduate (General)Graduate/Post Graduate (Professional)

R4

R3R2R1

Education Type of House

R4R4

R3

Source : Market Research Society of India, indiastat.com

FOUR Classes labeled as R1, R2, R3, and R4; R1 the upper-most, & R4 the lowest


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Characteristics affecting CB:Groups & social networks


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WOM influence and buzz marketing

Opinion leaders are people within a referencegroup who exert social influence on othersAlso called influentials or leading adoptersMarketers identify them to use as brandambassadors



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Online Social Networks are online communities

where people socialize or exchange informationand opinionsInclude blogs, social networking sites (facebook),virtual worlds (second life)



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Characteristics affecting CB: SocialFactors

Family most important consumer-buying

organization in societyThe groups, family, clubs, and organizationsthat a person belongs to define his/her socialrole and status


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Characteristics affecting CB:Personal factors

Age and life-cycle stage

RBCs Royal Band stagesYouth: younger than 18

Getting started: 1835Builders: 3550Accumulators: 5060Preservers: over 60


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Occupation affects the goods and services

bought by consumersEconomic situation includes trends in:


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Lifestyle is a person's pattern of living as

expressed in his or her psychographicsMeasures consumer's AIOs (activities, interests,opinions) to capture information about aperson's pattern of acting and interacting in theenvironment



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Personality and self-concept

Personality refers to the unique psychologicalcharacteristics that lead to consistent and lastingresponses to the consumers environment



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Characteristics affecting CB

h ff


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Characteristics affecting CB:Psychological factors

Ch i i ff i CB


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Characteristics affecting CB:Psychological factors [Motivation]

A motive is a need that is sufficiently pressing

to direct the person to seek satisfactionMotivation research refers to qualitative

research designed to probe consumers'hidden, subconscious motivations


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Characteristics affecting CB

Ch i i ff i CB


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Characteristics affecting CB:Psychological factors [Perception]

Process by which people select,

organize, and interpret information toform a meaningful picture of the world

from three perceptual processesSelective attention

Selective distortionSelective retention


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Ch t i ti ff ti g CB


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Change in individual's behavior arising from

experience & occurs through interplay of:

Characteristics affecting CB:Psychological factors [Learning]



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Belief is a descriptive thought that a person

has about something based on:Knowledge

OpinionFaith

Characteristics affecting CB:Psychological factors [Beliefs]



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Attitudes describe a person's relatively

consistent evaluations, feelings, andtendencies toward an object or idea

Characteristics affecting CB:Psychological factors [Attitudes]


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Types of buying decision behavior


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Types of buying decision behavior


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The buyer DM process


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The DM process: Need recognition

Occurs when the buyer recognizes a problem or

need triggered by:Internal stimuliExternal stimuli

f


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Personal sources

Family and friendsCommercial sourcesAdvertising, Internet

Public sourcesMass media, consumer organizations

Experiential sourcesHandling, examining, using the product

The DM process: Info search


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Th DM P h d i i


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The act by the consumer to buy the most

preferred brandThe purchase decision can be affected by:

Attitudes of othersUnexpected situational factors

The DM process: Purchase decision


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Th b DM f NP


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The buyer DM process for NPs

Adoption process is the mental process an individual

goes through from first learning about an innovationto final regular use.Stages in the process include:

Influence of product characteristics


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p

on rate of adoption

Ad C i i


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Adopter Categorization

2 1/2%Innovators

131

/2%Earlyadopters

34%Early

majority

34%Late

majority

16%Laggards

Time of adoption innovations

03. Buying behaviour[1]

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