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Consumer behavior in buying process

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  • 1. CONSUMER DECISION PROCESS IN BUYING BEHAVIOR A report submitted to the Department of Management In partial fulfillment for the Bachelor in Management Submitted by Ujjwal Devkota Faculty of management Modern Nepal College, Bagbazar Kathmandu, Nepal 2014
  • 2. OBJECTIVES OF STUDIES To define about consumer role in different buying condition.  To find out about consumer buying decision process.  To measure about changing consumer behavior according to changing environmental condition. 
  • 3. GENERAL BACKGROUND    Consumers are the decision makers regarding the purchase of goods and services that can provide current and future satisfaction. Consumers purchase several products in different situations. Consumer behavior is the decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services. The consumer buying decision can be classified into routine purchase/low involvement decision, extensive purchase/high involvement decision and limited purchase decision.
  • 4. CONSUMER BEHAVIOR ROLES Initiator  Influencer  Buyer  User 
  • 5. CONSUMER BUYINGDECISION PROCESS PROBLEM RECOGNITION CONSUMER INFORMATION PROCESSING PURCHASE EVALUATION OF ALTERNATIVES POST PURCHASE EVALUATION FOCUS: help people provide solutions to their problems (satisfying needs)
  • 6. 1. Need/Problem Recognition Problem recognition results when a consumer recognizes differences between actual state and desire state. The actual state refers to the ways in which a need is already met. Desire state is the way a person would like to satisfy the need.
  • 7. When collecting the data consumer have selected one of the major situations of problem solving which are shown below as per the view of interviewed consumers: Problem solving situation Number of respondents …..out of 20…….. a. Depleted or inadequate stock of goods 4 a. Discontentme nt with the stock of goods 3 a. Changing environmenta l circumstance 5 a. Changing financial circumstance 6 a. Marketing activities 2 Depleted or inadequate stock of goods Discontentment with the stock of goods Changing environmental circumstance Changing financial circumstance Marketing activities
  • 8. 2.Information Search: After the need has been realized, the person tries to search for the product. The search can be classified in terms of purpose, sources and the extent of search. On the basis of purposes Pre-purchase search Ongoing search Number of respondents ……..out of 20……….. 13 7 On the basis of Extent of search Number of respondent ….out of 20…. Minor purchase Major purchase High search 0 16 Low search 13 0 7 4 Selective search
  • 9. 3. EVALUATION OF ALTERNATING: A consumer evaluates a brand on the basis of a number of choice criteria. The number and type of evaluative criteria may vary by product.  The processes of evaluation of alternating: Brand processing: In brand processing, the buyer assesses one brand at a time. Thus, the consumer may decide to look at a particular brand, examine several attributes of it, and then assess several attributes of a second and third brand. Attribute processing:  In attribute processing, the consumer examines a specific attribute and then compares several other brands on that attribute. Then, a second attribute may be selected for comparison and so on.
  • 10. 4. PURCHASE (DECISION):    This stage involves the selection of best supplier and placing an order after negotiation. It is then received and approved and payment is made. It would be wise to select two or three suppliers to avoid dependency on one supplier. This step of taking decision are: Factor affecting brand choice Factor affecting store choice
  • 11. Factor affecting brand The consumer can choose choice:types of brand according to the different different factor which affect in the selection of brand. The following are the major factor which will affect in brand choice and the number of respondent considering same factor as the major one: Factor influencing brand decisions Number of respondent …….out of 20……. Point of purchase displays 7 Price reduction 4 Store layout 3 Stock out 2 Sales personnel 4 8 7 6 5 4 3 2 1 0
  • 12. Factor affecting store choice: The consumer can choose different store according to the different factor which affect in the selection of store. The following are the major factors which will affect in store choice and the number of respondent considering same factor as the major one: Factor influencing store choice Store location Number of respondent …..out of 20……. 6 Physical design and layout Merchandise 2 Advertising and sales promotion Personnel 5 Customer services 3 0 4 7 6 5 4 3 2 1 0
  • 13. 5. POST PURCHASE EVALUATION  Cognitive dissonance: It occur as a result of a discrepancy between a consumer’s decision and consumer’s prior evaluation. The way of reducing cognitive dissonance are:    Changing the ways of evolution Seek new information Changes attitudes  Satisfaction and Dis-satisfaction:  Complaint behavior:  Product disposal: Satisfaction is a kind of stepping away from an experience and evaluating it …… one could have a pleasurable experience that caused dissatisfaction because even though pleasurable, it wasn’t as pleasurable as it was supposed or expected to be. It is the unfavorable attitude toward the product and sharing unfavorable word of mouth to customer and service provider Disposal of product often occurs in connection with the changing role of consumer and changing status. The ways of product disposal can be:    Keep it Get rid of it permanently Get rid of it temporarily
  • 14. FINDING The research has help to define about consumer role in different buying condition and how they react over there.  It provides an idea about consumer buying decision process and step involve on it.  Research has provided knowledge about changing consumer behavior according to changing environmental condition.  It helps to know consumers decision regarding brand choice and store choice decision.  Help to get idea about problem solving situation in buying condition. 
  • 15. RECOMMENDATIONS: Consumer must have to collect knowledge about the product.  Before choosing any product or service consumer must have to do analysis about attribute and characteristics of the product.  Before choosing the store or brand consumer has to know about price related and service related factor. 