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The consumer buying decision process
 

The consumer buying decision process

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The Consumer Buying Decision Process and factors that Influence it.

The Consumer Buying Decision Process and factors that Influence it.

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  • A satisfied consumer <br />
  • An unpleased and dissatisfied customer due to product performance or quality of service received. <br />
  • Religious or cultural festivals, Family Occasions, Celebrations, Annual Mega Sale events, at the change of season or weather <br />
  • Exhibit 5-3 lists some important needs that might motivate a person to some action. <br />

The consumer buying decision process The consumer buying decision process Presentation Transcript

  • The Consumer Buying Decision Process & factors that Influence it Dr. Ahmad Faraz MBBS, MBA (USA), PGD Marketing (KL, Malaysia). Department of Marketing College of Business Administration (CBA) University of Dammam
  • The Consumer Buying Decision Process & factors that Influence it Dr. Ahmad Faraz MBA (USA), PGD Marketing (KL, Malaysia). Lecturer, Department of Marketing College of Business Administration University of Dammam
  • The Consumer Buying Decision Process & factors that Influence it. . Consumer 1. A person or a group that buy a product for personal use Buying 1. To acquire the possession of, or the right to, by paying or promising to pay an equivalent, especially in money. 2. To hire or obtain the services. Decision 1. The act of process of deciding; determination of making a judgment. 2. The act of making up one's mind. 3. Something that is decided, a resolution, a judgment. Influence 1. The capacity or power of persons or things to be a compelling on or produce effects on the actions, behavior, opinions, etc., of others. 2. The action or process of producing effects on the actions, behavior, opinions, etc., of another or others. 3. A person or thing that exerts influence. Ref. www.Dictionary.com
  • The purpose of this presentation is to: Refresh idea of consumerism Identify human buying behavior Understand model of consumer buying behavior Recognize influences Realize digitalization of buying Analyze our buying process Mischiefs at the end.
  • The Consumer Buying Decision Process & factors that Influence it. @ How many of you bought something today? @ How many have seen or heard an ad today? @ How many of you consumed something today? @ How many of you engaged in word of mouth about a product/service today?
  • Attention Stimulus = Smell, Taste, Touch & Senses = Sight, Hearing.
  • Attention Stimulus = Smell, Taste, Touch & Senses = Sight, Hearing.
  • Consumer Behaviour Study of individuals, groups, organizations. processes they use to select, secure, and dispose of products, services, experiences, or ideas satisfy needs and the impacts that these processes have on consumer and society.
  • Consumer Buying Behavior Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and .services for personal consumption : The central question for marketers is How do consumers respond to various “ ?´marketing efforts the company might use
  • Basis of Consumer behaviour study helps us to understand ? Consumer buying decisions also roles and try to answer questions - What consumers buy? - Where they buy? - How they buy? & how much they buy? - When they buy? - Why they buy.
  • Basis of Consumer behaviour study helps us to understand ? Consumer buying decisions also roles and try to answer questions - What consumers buy? - Where they buy? - How they buy? & how much they buy? - When they buy? - Why they buy.
  • actors influencing consumer behavi Marketing mixes All other stimuli Person making decision Economic Needs Psychological Variables Social Influence Consumer decision process Ref: Carolyn Brown http://www.writingcapital.com Global Research Papers and Term Papers Writing Purchase Situation
  • actors influencing consumer behavi Marketing mixes All other stimuli Person making decision Economic needs • Economy of purchase • Convenience • Efficiency in use • Dependability • Income Psychological variables • Motivation • Perception • Learning • Attitude • Trust • Lifestyle Social influence • Family • Social class •Reference groups • Culture • Ethnic groups Purchase situation • Purchase reason • Time • Surroundings Consumer decision process (Person does or does not purchase (response
  • Maslow Hierarchy of Needs Source: Maslow's hierarchy of needs proposed by Abraham Maslow in his 1943 paper "A man Motivation". Motivation & Personality 1954
  • Consumer Behavior is difficult to predic However, in reality many decisions are not made in awareness of a determined problem by the consumer. Ref: Sandhusen, Richard L.: Marketing (2000). Cf. S. 218
  • Possible Needs motivating a person to some action Ref: Final Consumers and their buying behavior © 2012 by The McGraw-Hill Companies, Inc
  • Lifestyle Dimensions (and some related demographics) Ref: Final Consumers and their buying behavior © 2012 by The McGraw-Hill Companies, Inc
  • Psychological Influences within an Individual Needs Wants Drives Consumers seek benefits to match !needs and wants
  • Other Social Influences Reference Groups Opinion Leaders Culture
  • Family is big social Influence on Buying Behavior Husband dominant Wife dominant Children dominant Mutually
  • Attitudes Relate to Buying Belief: An Opinion Attitude: A Point of View Building Consumer Trust Green”“ attitudes and beliefs Key Issues Key Issues Meeting Expectations Is Important Changing Negative Attitudes Ethical Issues May Arise
  • Consumer Decision Making Process Need Recogniti on Perceiving a need Informatio n Search Alternative Evaluation Purchase Decision Seeking value Assessing value Buying value Post purchase Behavior Value in Usage and consumption
  • Consumer Decision Making Process Need Recogniti on Perceiving a need Informatio n Search Alternative Evaluation Purchase Decision Seeking value Assessing value Buying value Post purchase Behavior Value in Usage and consumption
  • The model of buyer behavior The Environment Marketing Stimuli Other Product Economic Price Technological Place Social Promotion Cultural Buyer’s Black Box Buyer’s characteristics Buyer’s decision process It’s very difficult to “see” inside the consumer’s head & figure out the whys of buying behavior (that’s why it’s called the black box). Buyer Response Buying attitudes and preferences Purchase behavior: what the buyer buys, when, where and how much Brand & company relationship marketing
  • Rethinking the Consumer Buying Process How the web has changed everything
  • everyday. It’s the way people buy now Do you?
  • Social Media Influence 40% of consumers used Facebook to learn about new products. In 2010 it was 17% Source: Facebook - Googlepictures
  • Social Media Influence The most influenti al new product ?source Source: Facebook - Google
  • Google calls this the ZERO MOMENT OF TRUTH Consumer make buying decision ONLINE BEFORE calling or entering the store. Source: www.zeromomentofruth.com
  • Simple Buying Process Source: www.zeromomentofruth.com
  • Digitalized Buying Process Source: www.zeromomentoftruth.com
  • Online Buying Decisions - 503 Chinese consumers. - Chinese are shopping more online than 2 years ago - Use Internet to look for new products and brands, information - Comparing products and brands and making purchases - Reason, convenience, time saving and competitive price - Income and marital status - Age, education and internet usage have impact - Gender China's Internet penetration rate was 31.8% in June 2010, exceeding the world's average of 28.7% (CNNIC, 2010; Gao, 2010; Internetworldstats.com, 2010). Although significantly lower than the U.S. (71.2%) (eMarketer.com, 2010) and other developed countries (Internetworldstates.com, 2010), China's sheer size translates to 420 million Internet users (CNNIC, 2010), the world's highest. Ref. Gong Wen, Maddox Lynda Journal of American academy of Business, Cambridge 17.1 (Sep 2011): 43-50.
  • Digitalized Buying Process A recent survey found the Internet has surpassed TV as the medium perceived as most essential in people’s lives. Choice = What you can remove from your life Internet or TV? 49% chose to drop television, 48% chose the Internet. In 2001, 26% choose TV & 72% for eliminating Internet. Re f: Nielsen Online. Reports Topline U.S. Web Data for February 2010,” Nielsen Online, March 15, 2009,
  • Presence in dot com “If you’re not visible online when people are doing their homework, believe me, they’ll find others who are” Jim Lecinski Managing Director .Google
  • Rundown @ All buying decision are not always rational. @ Our awareness will enable us to make better consumer decisions. @ Consumer choose to pay attention to things they NEED to pay attention but stimulus characteristics like NOVALTY capture consumer attention. @ Today we (consumers ) are being influenced by 10+ sources. @ Differentiation of Quality and Value. @ Perception of Worth and Utility. @ Refrain from making Impulsive buying decisions. @ Web buying id efficient but from trusted sources and brands. @ Culture & family are strong influences on our buying decisions.
  • References & Acknowledgement The Principles of Marketing – Kotler & Armstrong – 14 th Edition, 2012. W IKIPEDIA c – The Free Encyclopedia. Dr. Marwan N. Al-Qur’an , Ph.D (Department of Marketing, CBA, University of Dammam.)