Consumer Beh Final

8/13/2019 Consumer Beh Final

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Consumer Behavior By Prof. Dr. Majed Rashid



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Building Success

Offers good bikes,

upgraded showroomsand sales tactics.

Research has helped to

understand customers’

emotions and motivation. Consumer emotions,

motivations, and lifestyle

have been translated into

effective advertising.

Harley-Davidson –

Devoted Consumers

Case Study

Measuring Success

Currently has 23% of all

U.S. bike sales and 50% ofheavyweight segment.

Demand above supply with

waiting lists up to 2 years.

Sales doubled in the pastsix years while earnings

have tripled.

2008: 19th straight year of

record sales and income.



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Consumer Buy ing Behav ior

Refers to the buying behavior of peoplewho buy goods and services for

personal use. These people make up the consumer

market.

The central question for marketers is:

– “How do consumers respond to variousmarketing effor ts the company m ight

use?”



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How We Will View Consumer Behavior



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Model of Buy ing Behavior

Marketing factors and other stimuli are

inputs into the “buyer’s black box.”

Here, stimuli are evaluated in light ofthe buyer decision process and the

buyer’s characteristics.

Buyer responses influence choice ofthe product, brand, vendor, as well as

the timing and amount of purchase.



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Consumer Buying Behav ior

Factors influencing consumer behavior: – Cultural factors :

• Culture, subculture, social class

– Social factors :• Reference groups, family, roles and status

– Personal factors :

• Age/life-cycle, occupation, economic situation,lifestyle, personality and self-concept

– Psycholog ical factors :

• Motivation, perception, learning, beliefs, andattitudes



Culture

Culture is the most basic cause of a

person's wants and behavior.

– Cultu re is learned from family , masque,

school, peers, col leagues.

– Culture ref lects basic values, percept ion s,

wants, and behaviors.

– Cultural sh i f ts create oppo rtun i t ies fo r newproducts o r may otherwise inf luence

consum er behavior .



Culture

Subculture

– Groups o f peop le w ith shared value

systems based on common l ifeexperiences.

Major Groups

– Muslim Consumers

– Punjabi Consumers

– Afghani Consumers

– Mature Consumers



Soc ial Class

Society’s relatively permanent and

ordered divisions whose members

share similar values, interests, andbehaviors.

Measured by a combination of:

occupation, income, education, wealth,and other variables.



Social Facto rs

Groups:

– Membership , Reference (Opinion Leaders),

Aspirat ional Family:

– Most impor tant consumer buy ing

organizat ion

Roles and Status: – Role = Expected act iv i t ies

– Status = Esteem given to role by soc iety



Personal Facto rs

Age and Life-Cycle Stage

– Peop le change the goods they buy over

their l i fet imes.

Occupation

– Occupat ion inf luences the pu rchase of

c loth ing and o ther goods.

Economic Situation – Some goods and serv ices are especial ly

income-sensit ive.



Personal Facto rs

Lifestyle:

– Pattern of l iv ing as exp ressed in

psychographics• Activities

• Interests

• Opinions



Personal i ty & Self-Concept

Personality refers to the uniquepsychological characteristics that lead

to relatively consistent and lastingresponses to one’s own environment.

Generally defined in terms oftraits/charactor.

Self-concept suggests that people’spossessions contribute to and reflecttheir identities.



Motives and Needs

Maslow’s hierarchyof needs impliesthat lower level

needs must besatisfied prior tohigher level needs. – Physio log ical needs

– Safety needs

– Social needs

– Esteem needs

– Self-Actual ization

A motive (or drive)

is a need that is

sufficiently pressing

to direct the person

to seek satisfaction.

Maslow’s hierarchy

of needs explainswhy people are

driven by needs at

particular times.



Percept ion

Process by which people select,

organize, and interpret information to

form a meaningful picture of the world. – Select ive attent io n

– Select ive d istort ion

– Select ive retent ion



Selective

Exposure

Selective

Perception

Selective

Exposure

Selective

Perception

Perception Determines What

Consumers See and Feel

Selective

Retention

Consumers seek out andnotice only the information

that interests them.

People screen out or

modify ideas,messages, and

information that

conflict with previously

learned attitudes and

beliefs

Consumers remember only

what they really want to

remember



Learning

A relatively permanent change in behavior

due to experience.

Interplay of drives, stimuli, cues, responses,and reinforcement.

Strongly influenced by the consequences of

an individual’s behavior

– Behaviors w ith satisfy ing resul ts tend to be

repeated.

– Behaviors with unsat isfy ing resul ts tend not to be

repeated.



Bel iefs & A tt i tudes

A belief is a descriptive thought that a

person holds about something.

An att i tude is a person’s consistentlyfavorable or unfavorable evaluations,

feelings, and tendencies toward an

object or idea.



Buy ing Decis ion Process

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase behavior



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Factors that influence purchase

decision:

– Att i tudes o f others

– Unexpected si tuat ional factors



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(A buyer’s doubts shortly after a purchase about whether it was the right decision.)



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Consumer satisfaction is a function of

consumer expectations and perceived

product performance. – Performance < Expectat ions ----- Disappo intm ent

– Perfo rmance = Expectation s ----- Satis factio n

– Perfo rmance > Expectation s ----- Deligh t



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Stages in the Adopt ion

Process

1. Awareness : Consumer becomes aware of thenew product, but lacks information about it.

2. In teres t : Consumer seeks information about new

product.

3. Evaluation : Consumer considers whether tryingthe new product makes sense.

4. Tr ial : Consumer tries new product on a small

scale to improve his or her estimate of its value.5. Adoption : Consumer decides to make full and

regular use of the new product.



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Produc t Character ist ics That

In f luence the Rate o f Adopt ion

Relative Advantage: Is the innovationsuperior to existing products?

Compat ibi l i ty : Does the innovation fit thevalues and experience of the target market?

Complex i ty : Is the innovation difficult tounderstand or use?

Divis ibi l i ty : Can the innovation be used on alimited basis?

Communicabi l i ty : Can results be easilyobserved or described to others?



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Bus iness Markets &

Bus iness Buyer Behavior

The business market is vast andinvolves far more rupees and itemsthan do consumer markets.

Bus iness buyer behavior refers to thebuying behavior of the organizationsthat buy goods and services for use in

the production of other products andservices that are sold, rented, orsupplied to others.



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Bus iness Markets

Market Structure

and Demand:

– Contains far fewer

bu t larger buyers.

– Buyers are more

geographical ly

concentrated.

– Bus iness demand

is der ived from

consumer demand.

Nature of the BuyingUnit: – Bus iness purchases

invo lve moredecis ion

part ic ipants.

– Business buy ing

invo lves a more

professional

pu rchasing effor t .



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Types o f Decis ions and the

Decis ion Process

Business buyers usually face more

complex buying decisions.

Business buying process tends to bemore form al ized .

Buyers and sellers are much more

dependent on each other.



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Types o f Buying Si tuations

Straight rebuy:

– Fair ly rou t ine purc hase decis ion.

Modified rebuy: – Requ ires some research and m od if ied

product speci fications, pr ices, terms, or

suppl iers.

New task: – Requ ires extens ive research and

evaluat ion of p roduc ts, supp l iers, etc.



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The Bus iness Buy ing Process

1. Problem

recognition

2. General needdescription

3. Product

specification

4. Supplier search

5. Proposal

solicitation

6. Supplier selection7. Order-routine

specification

8. Performance

review



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e-Procurement

Advantages for buyers:

– Access to new suppl iers

– Lowers purchas ing costs

– Hastens order process ing and del ivery

Advantages for vendors:

– Share informat ion wi th customers

– Sel l products and serv ices – Provide custom er suppo rt serv ices

– Maintain ongoing cus tomer relat ionships



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e-Procurement

Key benefits:

– Reduces costs to buyers and sel lers, and

makes for more ef f ic ient pu rchasing .

– Reduces the t ime between order and

delivery.

– Frees purchasing staf f to focus on more

strategic issues.

Consumer Beh Final

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