Consumer Buying Behavior refers to the buying behavior of final consumer – individuals & house holds who buy goods & services for personal consumption. All of these final consumers combine to make up the consumer market.
They vary tremendously in age, income, education level, & tastes.
They also buy an incredible variety of goods & services.
How these diverse consumers connect with other & with other elements of the world around them impacts their choices among various products, services, & companies.
Marketing stimuli consist of the 4 P’s. Other stimuli includes major forces & events in the buyer’s Environment: Economic, Technological, Political, & Cultural.
Marketers wants to understand how the stimuli are changed into responses.
Model of Consumer Behavior Marketing & other Stimuli Marketing Other Product Economic Price Technological Place Political Promotion Cultural Buyer’s Black Box Buyer Buyer character- decision istics process Buyer Responses Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount
Consumer purchases are influenced strongly by: Culture, Social, Personal, and Psychological Characteristics
Psychological Motivation Perception Learning Beliefs & Attitudes Personal Age & life- cycle stage Occupation Economic Situation Lifestyle Personality & Self-concept Social Reference groups Family Roles & Status Buyer Culture Culture Subculture Social Class
Need recognition: The consumer is moved to action by a need or desire
Identification of alternatives: The consumer identifies alternative products & brands & collects information about them
Evaluation of alternatives: The consumer weighs the pros & cons of the alternatives identified
Decisions: The consumer decides to buy or not to buy & makes other decisions related to the purchase
Post purchase behavior: The consumer seeks reassurance that the choice made was the correct one
The consumer Buying-Decision Process Need Recognition Evaluation of Alternatives Information Search Purchase Decision Post-purchase Behavior
The consumer Buying-Decision Process SOCIAL & GROUP FORCES Culture Subculture Social Class Reference Group Family & Households PSYCHOLOGICAL FORCES Motivation Perception Learning Personality Attitude SITUATIONAL FACTORS When Where Why Conditions Under which Consumers buy INFORMATION Commercial Sources Social Sources CONSUMER BUYING-DECOSION PROCESS Need Recognition Identification of Alternatives Evaluation of Alternatives Purchase & Related Decisions Post-purchase Behavior
Need Recognition: The first stage of the buyer decision process, in which the consumer recognizes a problem
Information Search: The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search
Alternative Evaluation: The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set
Companies are making less & buying more: Toyota annually buys $15 billion worth of parts, materials & services from US suppliers for use in its production both in US & overseas. When outside suppliers become this significant, buying becomes a prime strategic issue
Firms are under intense quality & time pressures: To reduce reworking costs & improve efficiency, firms cannot tolerate defective parts and supplies
Firms are concentrating their purchases: To get what they need, companies are dealing with fewer suppliers but are developing long-term “partnering” relationships with them.