Marketing Management, VTU, Module 2 revised

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Marketing Management, VTU, Module 2 revised

  1. 1. By Prof. Raghavendran VenugopalUnderstandingConsumer Buyer Behavior
  2. 2. Consumer Buying BehaviorBy Prof. Raghavendran Venugopal2 Consumer Buying Behavior refers tothe buying behavior of final consumers(individuals & households) who buygoods and services for personalconsumption. Study consumer behavior to answer:“How do consumers respond tomarketing efforts the company mightuse?”
  3. 3. Model of Consumer BehaviorBy Prof. Raghavendran Venugopal3Marketing andOther StimuliBuyer’s Black BoxBuyer’s ResponseProductPricePlacePromotionEconomicTechnologicalPoliticalCulturalCharacteristicsAffectingConsumerBehaviorBuyer’sDecisionProcessProduct ChoiceBrand ChoiceDealer ChoicePurchaseTimingPurchaseAmount
  4. 4. Characteristics Affecting ConsumerBehaviorBy Prof. Raghavendran Venugopal4BuyerPsychologicalPersonalSocialCulture
  5. 5. Factors Affecting Consumer Behavior:Culture Most basic cause of a persons wants andbehavior. Values PerceptionsSocial Class• People within a social classtend to exhibit similar buyingbehavior.• Occupation• Income• Education• WealthSubculture• Groups of people with sharedvalue systems based oncommon life experiences.• Hispanic Consumers• African American Consumers• Asian American Consumers• Mature Consumers
  6. 6. Factors Affecting Consumer Behavior: SocialBy Prof. Raghavendran Venugopal6Groups•Membership•ReferenceFamily•Husband, wife, kids•Influencer, buyer, userRoles and StatusSocial Factors
  7. 7. Factors Affecting Consumer Behavior:PersonalBy Prof. Raghavendran Venugopal7Personal InfluencesAge and Family Life CycleStageOccupationEconomic SituationLifestyle IdentificationActivities OpinionsInterestsPersonality & Self-Concept
  8. 8. Principle Oriented Status Oriented Action OrientedAchieversActualizersStrugglersStriversFulfilledsBelieversExperiencersMakersAbundant ResourcesMinimal Resources8
  9. 9. PsychologicalFactorsMotivationPerceptionLearningBeliefs andAttitudesBy Prof. Raghavendran Venugopal9Factors Affecting Consumer Behavior: Psychological
  10. 10. Maslow’s Hierarchy of NeedsBy Prof. Raghavendran Venugopal10Esteem Needs(self-esteem, status)Social Needs(sense of belonging, love)Safety Needs(security, protection)Physiological Needs(hunger, thirst)SelfActualization(Self-development)
  11. 11. Types of Buying BehaviorDecisionsBy Prof. Raghavendran Venugopal11ComplexBuyingBehaviorDissonance-Reducing BuyingBehaviorVariety-SeekingBehaviorHabitualBuyingBehaviorHighInvolvementSignificantdifferencesbetweenbrandsFewdifferencesbetweenbrandsLowInvolvement
  12. 12. Stages in The Buyer DecisionProcessBy Prof. Raghavendran Venugopal12Need RecognitionInformation SearchEvaluation of AlternativesPurchase DecisionPostpurchase Behavior
  13. 13. The Buyer Decision ProcessStep 1. Need RecognitionExternal Stimuli• TV advertising• Magazine ad• Radio slogan•Stimuli in theenvironmentInternal Stimuli• Hunger• Thirst• A person’s normalneedsNeed RecognitionDifference between an actual state and a desired stateBy Prof. Raghavendran Venugopal13
  14. 14. Step 2. Information SearchBy Prof. Raghavendran Venugopal14•Family, friends, neighbors•Most influential source ofinformation•Advertising, salespeople•Receives most informationfrom these sources•Mass Media•Consumer-rating groups•Handling the product•Examining the product•Using the productPersonal SourcesCommercial SourcesPublic SourcesExperiential Sources
  15. 15. Step 3. Evaluation of AlternativesProduct AttributesEvaluation of Quality, Price, & FeaturesDegree of ImportanceWhich attributes matter most to me?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?Evaluation ProceduresChoosing a product (and brand) based on oneor more attributes.By Prof. Raghavendran Venugopal15
  16. 16. Step 4. Purchase DecisionBy Prof. Raghavendran Venugopal16Purchase IntentionDesire to buy the most preferred brandPurchase DecisionAttitudesof othersUnexpectedsituationalfactors
  17. 17. Step 5. Post purchase BehaviorConsumer’s Expectations ofProduct’s PerformanceDissatisfiedCustomerSatisfiedCustomer!Product’s PerceivedPerformanceCognitive DissonanceBy Prof. Raghavendran Venugopal17
  18. 18. Stages in the AdoptionProcessBy Prof. Raghavendran Venugopal18AwarenessInterestEvaluationTrialAdoption
  19. 19. Adoption of InnovationsBy Prof. Raghavendran Venugopal19PercentageofAdoptersTime of AdoptionEarly LateInnovatorsEarlyAdoptersEarly Majority2.5%13.5%34% 34%16%LaggardsLate Majority
  20. 20. Business Markets & BuyingBehaviorBy Prof. Raghavendran Venugopal20 Characteristics of Business Buyers Fewer buyers Larger buyers Geographically concentrated buyers Derived Demand Inelastic demand Fluctuating demand Professional Purchase
  21. 21. Buying Decisions of BusinessBuyersBy Prof. Raghavendran Venugopal21 Straight Rebuy Modified Rebuy New Task
  22. 22. Business Markets BuyingprocessBy Prof. Raghavendran Venugopal22ProblemRecognitionNeedGeneralexplanationProductSpecificationSupplierSearchProductSolicitationSupplierSelectionOrderRoutineSpecificationPerformanceAppraisal
  23. 23. Seminar time: 7th MayBy Prof. Raghavendran Venugopal23 TEAM 5 should give seminar on ConsumerProtection and its act, with INDIAN Context
  24. 24. Assignment time 8th MayBy Prof. Raghavendran Venugopal24 Define Consumer Buying Behavior. Explain the Simple Model of CBB. Explain the Different Buying Behavior Decisions Enumerate with neat sketch of Stages of BuyingDecisions process. What is adoption process, explain the stagesinvolved in it. Differentiate between Consumer andOrganizational Buying behavior.

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