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Transcript of CB- 1st Lecture
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 1/38
Consumer Buying Behavior
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 2/38
• Consumer Buying Behavior Consumer Buying Behavior refers to the buyingbehavior of final consumers -individuals &households who buy goods and services for personal consumption.
• The term CB is defined as the behaviour thatconsumers display in searching for, purchasing,
using, evaluating, and disposing of products andservices that they expect will satisfy their needs.
Consumer Buying Behavior
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 3/38
Need for understanding Consumer
Behaviour • Shorter Product life cycles• Evolving consumer preferences• Environmental concerns• Faster technology adoption
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 4/38
Model of Consumer Behavior
Model of Consumer Behavior
Marketing andOther Stimuli
Marketing andOther Stimuli
Buyer’s Black BoxBuyer’s Black Box
Buyer’s Response
Buyer’s Response
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
CharacteristicsAffectingConsumer Behavior
Buyer’sDecisionProcess
Product Choice
Brand Choice
Dealer Choice
PurchaseTiming
PurchaseAmount
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 5/38
Factors Influencing
Consumer Behavior
Social
Referencegroups
Family
Rolesand
status
PersonalAge andlife-cycle
OccupationEconomicsituation
LifestylePersonality
andself-concept
Psycho-logical
MotivationPerception
Learning
Beliefs andattitudes
Buyer
Culture
Sub-culture
Socialclass
Culture
Sub-culture
Socialclass
Cultural
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 6/38
Factors Affecting Consumer
Behavior: Culture
• Group of people withshared value systemsbased on common lifeexperiences
• Festivals and customs indifferent parts of thecountry
Culture is the Most Basic Cause of aPerson's Wants and Behavior.
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 7/38
Factors Affecting Consumer Behavior: Culture
Culture is the Set of Values, Perceptions,Wants & Behavior Learned by a Member of
Society from Family.• Society’s relatively
permanent & ordereddivisions whose membersshare similar values,interests, and behaviors.
• Measured by: Occupation,
Income, Education, Wealthand Other Variables.
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 8/38
Groups• Membership• Reference
Groups• Membership• Reference
Family (mostimportant)• Husband, wife, kids
• Influencer, buyer,user
Family (mostimportant)• Husband, wife, kids
• Influencer, buyer,user
Roles and StatusRoles and Status
Social FactorsSocial Factors
Factors Affecting Consumer
Behavior: Social
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 9/38
Personal InfluencesPersonal Influences
Age and LifeCycle StageAge and LifeCycle Stage OccupationOccupation Personality &Self-Concept
Personality &Self-ConceptEconomicSituation
EconomicSituation
ActivitiesActivities InterestsInterests
Lifestyle IdentificationLifestyle Identification
OpinionsOpinions
Factors Affecting Consumer Behavior: Personal
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 10/38
Factors Affecting Consumer Behavior: Psychological
PsychologicalFactors
AffectingBuyersChoices
Motivation
Perception
Learning
Beliefs andAttitudes
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 11/38
Psychological - Motive
•A motive is a need that has a sufficient level
of intensity. Creating a tension state thatdrives the person to act.•Satisfying the need reduces the felt tension.
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 12/38
• Buying motives thus are defined as ‘thoseinfluences or considerations which providethe impulse to buy, induce action or determine choice in the purchase of goodsor service
Consumer Motives
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 13/38
Consumer Motives
• Product Motives• Emotional Product Motives
• Rational Product Motives• Patronage Motives
• Emotional Patronage Motives
• Rational Patronage Motives
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 14/38
Nature of Motive Purchase Decision• Desire for money : Purchasing when price falls down• Fear : Purchasing Insurance policy•
Pride : Purchasing premium products• Fashion : Rural people imitate urban• Possession : purchasing antiques• Health : Purchasing health foods .membership in health
clubs• Comfort : Purchasing micro-oven, washing machine,mixer
• Love and affection : Purchasing gift items
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 15/38
The process by which an individual selects,organizes, and interprets information inputs tocreate a meaningful picture of the world.
Psychological - Perception
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 16/38
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
• Perception
Selective
Exposure
Selective
Exposure
SelectiveComprehension
SelectiveComprehension
SelectiveRetentionSelectiveRetention
Consumer pays attention to certain
stimuli and ignores others
Consumer pays attention to certain
stimuli and ignores others
Consumer interprets info so that it isconsistent with his beliefs
Consumer interprets info so that it isconsistent with his beliefs
Average consumer only remembers30% of information heard
Average consumer only remembers30% of information heard
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 17/38
Psychological - Learning
Changes in an individual’s behavior arising from experience.
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 18/38
Psychological - Attitude
An attitude describes a person’s relatively
consistent evaluations, feelings, andtendencies toward an object or idea.
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 19/38
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
Motivation – what stimulates behavior to satisfy a need
Maslow’s Hierarchyof Needs
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 20/38
• How do you know when to shop? What are the
triggers that initiate an awareness & search?
• What are the internal & external sources of thesetriggers?
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 21/38
Buyer Decision Process
Post purchaseBehavior
Purchase
Decisio
n
Information
SearchNeed
Recognitio
n
Evaluationof
Alternatives
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 22/38
Need Recognition
Preferred State
Marketing helpsconsumers recognize
(or create) an imbalance
between present statusand preferred state
• When a current product isn’tperforming properly
• When the consumer is runningout of an product
• When another product seemssuperior to the one currently used
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 23/38
The information search stage
An internal search involves thescanning of one's memory to recall previousexperiences or knowledge concerningsolutions to the problem-- often sufficient for frequently purchased products.
An external search may be necessarywhen past experience or knowledge isinsufficient, the risk of making a wrongpurchase decision is high, and/or the cost of
gathering information is low.
Personal sources(friends and family)
Public sources (ratingservices like Consumer
Reports)
Marketer-dominated
sources (advertisingor sales people)
The evoked set: a group of brands from which the buyer can
choose
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 24/38
Determinants of External Search
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 25/38
The Buyer Decision ProcessEvaluation of Alternatives
The Buyer Decision ProcessEvaluation of Alternatives
Product AttributesEvaluation of Quality, Price, & Features
Product AttributesEvaluation of Quality, Price, & Features
Degree of ImportanceWhich attributes matter most to me?
Degree of ImportanceWhich attributes matter most to me?
Brand BeliefsWhat do I believe about each available brand?
Brand BeliefsWhat do I believe about each available brand?
Total Product SatisfactionBased on what I’m looking for, how satisfiedwould I be with each product?
Total Product SatisfactionBased on what I’m looking for, how satisfied
would I be with each product?
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 26/38
Buyer Behavior
• Initiator : the person who first suggests or thinks of the idea of buying aparticular product or service.
• Influencer : a person whose views or advice carry weight in making thefinal buying decision
• Decider : the person who ultimately makes the final buying decision or anypart of it
• Buyer : the person who makes the actual purchase
• User : the person who consumes the product or service
Other people often influence a consumers purchase decision.The marketer needs to know which people are involved in thebuying decision and what role each person plays, so thatmarketing strategies can also be aimed at these people.(Kotler et al, 1994).
Note: teens are increasingly assuming more of these roles
Think about your past purchase– who was in which role?
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 27/38
WifeDominant
HusbandDominant
Joint
100 50 075 25
Women’sclothing
Pots & pans
Child clothing
groceries
vacations
TV sets
Family car Sport equipment
Lawn mower
Paint wallpaper
lamps
Men’s leisure clothing
Men’s business clothing
cameraFinancial planning
furniture
refrigerator
luggage
carpet
NonRx
Toys/games
stereo
hardware
Extent of role specialization
Relative influence of husbands & wives
Informationsearch
Finaldecision
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 28/38
The Buyer DecisionProcess
Purchase Decision
The Buyer DecisionProcess
Purchase DecisionPurchase IntentionDesire to buy the most preferred brand
Purchase IntentionDesire to buy the most preferred brand
Purchase DecisionPurchase Decision
Attitudesof others
Unexpectedsituationalfactors
Th B D i i P
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 29/38
The Buyer Decision ProcessPost purchase Behavior
The Buyer Decision ProcessPost purchase Behavior
Consumer’s Expectations of Product’s Performance
Consumer’s Expectations of Product’s Performance
DissatisfiedCustomer
DissatisfiedCustomer
SatisfiedCustomer!Satisfied
Customer!
Product’s Perceived
Performance
Product’s Perceived
Performance
Cognitive Dissonance
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 30/38
Postpurchase Behavior
Can minimize through:Effective Communication
Follow-upGuaranteesWarranties
Underpromise &overdeliver
Cognitive DissonanceCognitive Dissonance
??Did I make a good decision?Did I make a good decision?
Did I buy the right product?Did I buy the right product?
Did I get a good value?Did I get a good value?
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 31/38
Cognitive Dissonance
• psychological discomfort caused by inconsistenciesamong a person’s beliefs, attitudes, and actions
• varies in intensity based on importance of issue anddegree of inconsistency
• induces a “drive state” to avoid or reduce dissonance
by changing beliefs, attitudes, or behaviors andthereby restore consistency
Tendency to avoid information can be countered by eliciting interest,norm of fairness, or perceive usefulness of information
Post-decision “buyer’s remorse” may be increased by importance or difficultyor irreversibility of decision
Counter-attitudinal action, freely chosen with little incentive or justification, leads to attitude change (e.g., new product at special lowprice)
Applications:
8/6/2019 CB- 1st Lecture
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TYPES OF CONSUMER BUYING
BEHAVIOR :There are four types of consumer buying
behavior, they are :
• Routine Response/Programmed Behavior • Limited Decision Making• Extensive Decision Making• Impulse buying
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 33/38
1. ROUTINERESPONSE/PROGRAMMED
BEHAVIOR
Buying low involvement, frequently purchased, low cost items.
Examples :
Soft drinks, snack foods, milk etc.
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 34/38
8/6/2019 CB- 1st Lecture
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3.EXTENSIVE DECISION
MAKING :Complex high involvement,
unfamiliar, expensive and infrequently bought products.
Spend a lot of time seekinginformation and deciding. High degree of risk.
Example:Cars, homes, computers, education.
8/6/2019 CB- 1st Lecture
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4. IMPULSE BUYING :
No conscious planning.The purchase of the same product does not
always elicit the same Buying Behavior. Productcan shift from one category to the next.For example:Going out for dinner for one person may beextensive decision making (for someone that doesnot go out often at all), but limited decisionmaking for someone else. The reason for thedinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determinethe extent of the decision making.
8/6/2019 CB- 1st Lecture
http://slidepdf.com/reader/full/cb-1st-lecture 37/38
8/6/2019 CB- 1st Lecture
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Thank You!!!