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Dr Omkumar KrishnanIMT Ghaziabad
Consumer Buying Behaviour
Marketing Management - 1
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Dr Omkumar KrishnanIMT Ghaziabad
Consumer market : all of the individuals and households whobuy or acquire goods and services for personal consumption.
ProductPricePlace
Promotion
EconomicTechnological
PoliticalCultural
BuyersResponses
Product choiceBrand choiceDealer choice
Purchase timingPurchase amount
Marketing andother stimuli
Understanding the Consumer Market
BuyerDecision
Process
Source: Hawkins, CB
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Dr Omkumar KrishnanIMT Ghaziabad
Consumer Buying Roles
Initiator Influencer
Decider Buyer
User Disposer
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Dr Omkumar KrishnanIMT Ghaziabad
Theoretical Foundation Sigmund Freud UnconsciousId, Ego, Super Ego
Abraham Maslow Hierarchy of Needs
Basic-Security-Social-Esteem- Self Actualisation McGuire Psychological MotivesCognitive / Affective & Preservation / Growth
Carl Jung Collective ConsciousnessArchetypes
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Dr Omkumar KrishnanIMT Ghaziabad
Decision Making Complex Decision Making
Brand Loyalty Need Arousal
Past ExperienceCharacteristicsMotivesEnvironmental InfluencesMarketing Stimuli
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Types of Buying Behaviour
High Involvement Vs Low Involvement Extensive Problem Solving
Belief Attitudes Planned Decision
Variety Seeking Behaviour Habitual Decision making (Routine) Impulse Buying
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Information and purchase decisions
Two sources: Commercial information environment.
Includes manufacturers, retailers, advertisersand sales people.
Social information environment. Family, friends and acquaintances.
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Psychological influences
Buying motives:
Buyer recognises motives for purchase. Buyer aware of reason for purchase but does
not admit to themself.
Buyer does not know the real factor formotivation.
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Dr Omkumar KrishnanIMT Ghaziabad
Social influences
Families and Households (Lifecycle) Core values, attitudes and beliefs. Family as a buying unit (Information Sharing)
Culture. Changing gender roles. Social class. Reference groups.
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Two Factor Theory Frederick Herzberg
Dissatisfiers (factors that cause dissatisfaction)Satisfiers (factors that cause satisfaction).The absence of dissatisfiers is not enough; satisfiers must be
present to motivate a purchase. Herzbergs theory has two implications:
Sellers should do their best to avoid dissatisfiers.
Sellers should identify the major satisfiers ormotivators of purchase in the market and supplythem. These satisfiers will make the major differenceas to which brand the customer buys.
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Dr Omkumar KrishnanIMT Ghaziabad
Perception Perception
physical stimuli + stimulis relation to the surrounding field and on conditionswithin the individual.
In marketing, perceptions are more important than the reality
Selective AttentionSelective DistortionSelective RetentionSubliminal Perception
The topic of subliminal perception, the argument that marketers embed covert, subliminal messages in ads or packages and consumers are not consciously aware of these messages, but yet they affect their behavior
No evidence supports this notion that marketers can systematically control consumers at theunconscious level.
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Dr Omkumar KrishnanIMT Ghaziabad
Learning
Learning involves changes in an individuals behavior arising from experience. A drive is a strong internal stimulus impelling action
Cues are minor stimuli that determine when, where,and how a person responds
Discrimination means that the person has learned to
recognize differences in sets of similar stimuli and canadjust responses accordingly
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Dr Omkumar KrishnanIMT Ghaziabad
Memory Memory All information and experiences individuals
encounter as they go through life can end up in theirlong-term memory.
short-term memory (STM) a temporary repository of information. Long-term memory (LTM) a more permanent repository. Marketers can be seen as making sure that consumers have the
right types of product and service experiences such that the right
brand knowledge structures are created and maintained in memory. Memory Processes: Encoding Memory Processes: Retrieval
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Dr Omkumar KrishnanIMT Ghaziabad
Stages in ConsumerBuying Decision Process
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Dr Omkumar KrishnanIMT Ghaziabad
CONSUMERS GO THROUGH A FIVE-
STAGE BUYING -DECISION PROCESS
Need recognition Identification of alternatives Evaluation of alternatives Decision Post-purchase behaviour
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Dr Omkumar KrishnanIMT Ghaziabad
STAGE 1 NEED RECOGNITION , WHEN ANUNSATISFIED NEED (MOTIVE) CREATES
TENSION OR DISCOMFORT IN THECONSUMER
A biogenic need (hunger)
Arousal by external stimulus(advertising)
Dissatisfaction with current product(tension)
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STAGE 2 IDENTIFICATION OFALTERNATIVES, INCLUDING BOTH
PRODUCTS AND BRANDS
INFLUENCED BY:
The costs of collectingmore information.
The ability to recall past experiences.
The consumers confidence in recalledinformation.
The time and level of perceived risk.
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STAGE 3 - E VALUATION OFALTERNATIVES, INCLUDING
ESTABLISHING CRITERIA WITH WHICHTO MAKE THE EVALUATION
Evaluation involves: The criteria used:
Price, convenience, prestige and taste. The various sources used to make the decision:
Past experience , attitude towards brand, opinions by
others. SetsTotal AwarenessConsiderationChoice-- Product
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STAGE 4 PURCHASE DECISION, WHICH IS
ACTUALLY A SERIES OF DECISIONSINCLUDING
Patronage buying motives (friendly staff,convenience). Decisions regarding brand, price, store. Product features and benefits . Where and when to make the purchase. Method of payment.
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Dr Omkumar KrishnanIMT Ghaziabad
STAGE 5P OST-PURCHASE BEHAVIOR,OR COGNITITVE DISSONANCE
Consumers strive for internal harmony andconsistency among their cognitions (knowledge,attitudes, beliefs, values) any inconsistency in
these cognitions will result in anxiety cognitivedissonance. Consumers will experience post-purchase,
cognitive dissonance when alternatives have bothadvantages and limitations.
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